Toward a Hybrid Islamic Governance Model for Non-Profit Organizations: Integrating Sharia Principles and Contemporary Institutional Practice

Abstract

In recent years, Islamic non-profit organizations (INPOs) have gained traction in addressing socio-economic imbalances across Muslim-majority and minority countries. However, challenges persist in aligning Sharia principles with modern governance frameworks, often leading to operational inconsistencies and legitimacy crises. Amid increasing accountability demands, there is an urgent need for an integrated governance paradigm. This study aims to formulate a hybrid Islamic governance model that synthesizes classical shariah doctrines with contemporary institutional governance practices. It investigates the normative foundation of Islamic ethics, institutional accountability, and leadership mechanisms in the context of non-profit management. The analysis incorporates classical Islamic jurisprudence (fiqh al-muʿāmalāt), Arabic and Indonesian scholarly works, and comparative contemporary governance literature. Using qualitative methodology with a textual analysis approach, this research draws from primary classical texts and secondary sources such as journal articles, Indonesian policy references, and prior empirical studies. The results identify three critical pillars—ethical leadership (al-qiyādah al-akhlāqiyyah), trust-based accountability (amānah), and stakeholder inclusivity—which collectively constitute the hybrid model. The study contributes to the body of Islamic economics and governance by offering a contextualized, actionable governance framework for INPOs that preserves religious integrity while enhancing institutional transparency. It serves as a reference for scholars, practitioners, and policymakers striving to institutionalize Sharia-compliant accountability.