Dhaka, Bangladesh – A man boards a crowded bus in Dhaka, requesting donations for an orphanage. Passengers routinely contribute, trusting in a culture of giving deeply ingrained in Bangladeshi society. But a growing concern is emerging: a lack of transparency in charitable giving, leaving both donors and beneficiaries vulnerable to fraud and mismanagement.
In Bangladesh, where approximately 90% of the population identifies as Muslim, charitable giving – known as *sadaqah* and *zakat* – is a daily practice. However, the ease with which individuals can solicit donations, often without verifiable documentation, raises questions about accountability. “I never had a problem with the giving itself. What bothered me was the opacity,” says Md Mahmudul Hasan, a digital banking and fintech strategist focused on financial inclusion. “Even from a religious perspective, giving is not just generosity—it is accountability.”
Historically, Islamic economics emphasized value exchange over currency, fostering trust and fairness. Early Islamic practices, such as those established by Caliph Umar ibn al-Khattab, involved rigorous investigation of charitable allocations to ensure proper use. This contrasts sharply with the current situation, where unverified collectors operate with little oversight.
The lack of transparency has led to significant scandals. The Destiny Group, a multi-level marketing scheme, defrauded thousands of people while invoking religious justifications. When the scheme collapsed, investors lost substantial savings, highlighting the dangers of unregulated charitable activities. Similar concerns persist regarding individual collectors who may misappropriate funds intended for legitimate causes. This erodes public trust and hinders the work of genuine organizations.
Bangladesh currently has over 250 million active mobile financial service users, presenting an opportunity to modernize charitable giving. The success of bKash, a mobile financial service, demonstrates the country’s capacity to embrace digital financial solutions. A recent initiative, Digital Daanbox, launched by Islamic Bank and Al-Arafah, aims to leverage this infrastructure to create a more transparent system.
International examples demonstrate the viability of digital charity platforms. Malaysia’s Pusat Pungutan Zakat collects over RM1 billion annually with full digital tracking, while Indonesia’s BAZNAS manages nationwide *zakat* with real-time reporting. Kenya’s M-Pesa likewise facilitates mobile charitable giving with complete transparency. Within Bangladesh, organizations like Ashaania Mission and Sunna Foundation are already implementing transparent accounting and impact reporting.
To further enhance transparency, coordinated action is needed. Hasan suggests that Bangladesh Bank and the Islamic Foundation should establish standards for Shariah-compliant digital donation platforms within 90 days. He also recommends that the Bangladesh Financial Intelligence Unit (BFIU) and the Anti-Corruption Bureau monitor transactions for anomalies, while mobile financial service providers like bKash and Nagad integrate verified charity features into their apps. Mosques, orphanages, and *madrasas* should be encouraged to voluntarily adopt digital systems, and religious authorities should promote these technologies to their communities.
The potential benefits of a digital system are significant. Verified tracking of donations would ensure that funds reach their intended beneficiaries, enabling organizations to provide adequate nutrition, healthcare, education, and living conditions. Transparency would also incentivize formal giving and potentially qualify donors for tax certificates.
As of February 23, 2026, no official standards for digital charitable giving have been established by Bangladesh Bank or the Islamic Foundation. The BFIU and Anti-Corruption Bureau have not issued statements regarding monitoring of charitable donations. The integration of verified charity features into mobile financial service apps remains ongoing.
