The Importance of Regulation in The Implementation of Islamic Philanthropy

Indonesia has been awarded 5 times in a row as the most generous country in the world according to the 2022 World Giving Index research released by the Charities Aid Foundation. This generosity is reliable through the results of the Indonesia Philanthropy Outlook 2022 Survey which states that there are seven areas of progress in Indonesia's philanthropy. Philanthropy itself can be interpreted as the practice of generosity which is a tradition and religious teachings of the Islamic community with its actualization through zakat, infaq, endowments and alms. The progress in this area raises hopes for philanthropy to be able to maintain public trust. Therefore, the Indonesian Philanthropy Association (PFI) has contributed by issuing the Indonesian Philanthropy Code of Ethics (KEFI) in 2021 to maintain donor trust through the realization of an accountability system. But in fact there are still deviations in philanthropy. For this reason, Chairman of the KEFI Task Force and President of the Human Initiative Tomy Hendrajati mentioned the need for a regulation and law that regulates philanthropic activities. This is the basis for the author in setting research objectives, namely to find out the importance of a regulation for philanthropic activity. This study uses the previous research literature study method and a normative juridical approach to obtain secondary data. Furthermore, the data is processed and analyzed using a qualitative descriptive analysis method to become a research that is useful for researchers and readers. The results of this study are that philanthropic regulations have an important role in strengthening a system of accountability for actors to maintain public and donor trust in philanthropic institutions. In addition, the regulation also acts as a supervisor so that violations and philanthropic deviations can be alleviated.