Muslim Americans Have Shifted Their Charitable Giving to More Strategic Philanthropy
By Lisa Kahler
May/Jun 25
Over $1.8 billion in zakat was given in 2022 by Muslim Americans according to the Muslim American Zakat Report 2023, published by the Indiana University Lilly Family School of Philanthropy in Indianapolis.
For Muslims, zakat is more than just obligatory alms. It is one of Islam’s 5 pillars and includes a wide range of charitable behaviors that go beyond the “Five T’s” of philanthropy (time, talent, treasure, testimony, and ties). Zakat also includes simple acts such as smiling, picking up a piece of trash, and lending a helping hand.
Philanthropy is an integral part of the Muslim American community and is rooted in the Islamic principles of zakat (obligatory charity) and sadaqa (voluntary giving).
Evolving Philanthropy in the Muslim American Community
There are an estimated 3.45 million Muslims in the United States today (“Muslim Zakat Report 2023 & the US Muslim Women’s Philanthropy Report”). Many have shifted their charitable giving from primarily international causes to more strategic, local, and institutionalized philanthropy. As Muslims have become more integrated into American society, their philanthropy has gained recognition from mainstream institutions like the Association of Fundraising Professionals (AFP) and the aforementioned Indiana University Lilly Family School of Philanthropy.
Within their community, Muslims have worked to develop centralized philanthropic structures such as the American Muslim Community Foundation (AMCF) to develop their own public narrative with programs such as the “Inspired Generosity” traveling exhibit. Muslim women are leading the landscape of charitable giving, leveraging not only financial resources but also time, expertise, networks and advocacy to create a lasting impact.
Muslim Americans & National Philanthropy Day
Shazeen Mufti, a strategic nonprofit consultant actively involved in nonprofit and philanthropic sectors, has observed a significant transformation in American Muslim giving over the past 25 years. When she first started in philanthropy, she noticed that the majority of Muslims sent more money back to their home countries than to local projects. Today, she feels that Muslim donors have become more strategic, aligning their giving with personal interests and local needs. The Muslim Zakat Report 2022 identifies this shift as well, noting that 25.3% of zakat was allocated to international NGOs, 21.7% to national governments, and 18.3% to domestic nonprofits.
Mufti has been instrumental in increasing Muslim representation within the Association of Fundraising Professionals (AFP) and was chair of AFP Orange County’s National Philanthropy Day (NPD) in 2024. Under her leadership, the event became more accessible to Muslims, culminating in Mohannad and Rana Malas, well-known Muslim donors in Southern California, each receiving the Outstanding Philanthropist of the Year award. In his acceptance speech at AFP Orange County’s NPD Nominee Dinner, Malas highlighted the impact of his Palestinian heritage, the Nakbah, and Islamic principles on his family’s practice of giving. As influential donors and advocates, the Malas family’s contributions serve as an inspiration, reinforcing the growing presence of American Muslim philanthropists in mainstream giving circles.
“Bring the community to the table with you wherever you are. Understand your community’s needs and advocate for them,” Mufti told Islamic Horizons.
Inspired Generosity: Honoring Impactful Giving
The Inspired Generosity (IG) traveling exhibit, organized by the Waraich Family Fund (WF Fund), celebrates the stories of Muslim American philanthropy. The multimedia story-telling exhibit debuted in Atlanta in 2024 featuring over 50 submissions chosen from 200 videos, photos, poems, and digital and audio stories submitted from across the country. According to their website, IG provides a “national stage for powerful stories of generosity from the Muslim American community – spotlighting tales of spirituality driven good works.” This initiative recognizes and celebrates contributions to social justice, education, and humanitarian causes by everyday Muslims from across America.
Dilnaz Waraich, the WF Fund president, hopes this initiative will drive an “ecosystem change” in philanthropy leading to inclusion of Muslim-led nonprofits. She said funders have stereotypes of Muslims that have to be overcome before Muslim Americans can even be “in the room” with other major philanthropic organizations.
Research on Muslim Philanthropy
A lack of research on Muslim American giving has hindered the inclusion of Muslim philanthropy in institutional dialogue. Much of the giving occurs outside traditional reporting structures and thus remains invisible in national philanthropic narratives. Addressing this gap, the Muslim Philanthropy Initiative was founded in 2017 at the Indiana University Lilly Family School of Philanthropy to convene, train, and empower a new generation of Muslim philanthropic leaders.
Research fellow and doctoral candidate Nausheena Hussain, researches the role of women in Muslim philanthropy. In her recent book, Prosperity with Purpose: A Muslim Women’s Guide to Abundance & Generosity (Rabata’s Daybreak Press, 2025) she stated, “We give generously of our time, talents, and networks, yet these contributions are often overlooked.”
Hussain was the lead author of the U.S. Muslim Women’s Philanthropy Report 2023 which identifies key motivations for giving by Muslim women: compassion, belief in making a difference, and faith. The report highlights volunteerism as part of giving, with 68.8% of Muslim women volunteering 20 hours or more for faith-based causes, and 57.8% for non-faith-based causes. Muslim women were also found to integrate Islamic values with modern giving strategies, blending faith-based giving with contemporary philanthropic models. The report noted, “Muslim women who are registered to vote are more likely to donate, volunteer, and participate in the community.”
Building Institutional Philanthropy
The American Muslim Community Foundation (AMCF) was founded in 2016 to address the lack of centralized philanthropic infrastructure for American Muslims. Co-founder Muhi Khwaja states that AMCF was created to increase representation and visibility of Muslim charitable giving. When AMCF was founded, there was no centralized platform for strategic Muslim giving through Donor Advised Funds (DAFs). Muslims were incredibly charitable, yet their contributions were underrepresented by mainstream philanthropy. Since its inception, AMCF has facilitated $21 million in donations to 900 nonprofits, established 226 DAFs and 26 endowments, and launched the American Muslim Women’s Giving Circle which has distributed $40,000 to women-focused nonprofits.
AMCF has been working to change the Muslim giving mindset from reactive giving to strategic giving by educating the Muslim community on effective giving models like Donor Advised Funds, Collaborative Funds, Giving Circles and Endowments. Khwaja describes the efforts to highlight Muslim generosity and dispel misconceptions in mainstream philanthropy through participation in conferences with AFP, panels with the Harvard Islamic Finance Conference, media campaigns, and by highlighting the work of other institutions at AMCF’s Annual Muslim Philanthropy Awards.
“While progress has been made, the work continues. We at AMCF remain committed to growing the infrastructure for Muslim philanthropy and ensuring our community is recognized as a key contributor to positive social change,” Khwaja said.
The Role of Collective Giving
The Dorothy A. Johnson Center for Philanthropy’s Patterns in the Tapestry: A Typology of Collective Giving Groups (2024) report highlights collective giving as a rising trend in various communities. Giving Circles – where individuals pool resources and decide collectively how to allocate funds – are emerging as powerful tools for Muslim donors.
AMCF has successfully implemented the American Muslim Women’s Giving Circle which exemplifies this approach and allows members to support organizations that provide for and are led by Muslim American women. This model provides a sustainable way to address immediate needs, allows donors with limited means to participate, and builds long-term philanthropic engagement.
Platforms like Feeling Blessed, LaunchGood, and GiveMasjid further amplify Muslim philanthropy by showcasing the generosity Islam requires of its adherents. The Muslim Zakat Report (2023) indicates that 70.5% of respondents believe “the poor and needy have a right to a portion of my wealth and/or income.” This demonstrates that Muslims give not only out of a religious sense of duty, but because they fervently believe that those with more should help those with less.
The Future of Muslim American Philanthropy
As Muslim philanthropy evolves, it faces challenges and opportunities. Key priorities highlighted by Muhi Khwaja are:
- Promoting Long-Term Giving Models: Encouraging sustained philanthropy through endowments and unrestricted funding.
- Financial Literacy & Philanthropic Education: Aligning giving strategies with Islamic principles.
- Strengthening Collaboration & Representation: Partnering with mainstream philanthropic institutions.
- Documenting & Showcasing Impact: Ensuring Muslim generosity is recognized in national philanthropic narratives.
- Engaging the Next Generation: Empowering youth through mentorship and giving circles.
Khwaja’s goal is simple. “AMCF can help build a world where Muslim giving is so pronounced that any ill-mannered Islamophobic rhetoric cannot overcome the charitable giving our community does,” she said.
Hussain underscores the “data gap” as a barrier to understanding our impact and limits advocacy. Mufti sees the biggest challenge ahead will be fostering unity across the diverse Muslim American community and emphasizing collaboration over division.
Muslim Americans have demonstrated a steadfast commitment to philanthropy with women playing a crucial role. While focusing on our Islamic values and principles, philanthropy allows American Muslims to have a positive impact, fostering positive change, challenging stereotypes, and ensuring that our good deeds redefine mainstream perceptions of Islam and Muslims.
Lisa Kahler is the AMCF Giving Circle Manager.
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