From faded receipts to digital records: Why Bangladesh must digitise charity

Illustration: TBS

An elderly man walks through a Dhaka bus asking for donations, clutching faded receipts for an orphanage that may or may not exist. Most passengers give without question. In that moment—repeated millions of times across Bangladesh—billions of taka enter a system with no accountability, no verification, and no guarantee the money reaches those who need it most.

In a country where nearly 90% of the population is Muslim, giving is woven into daily life. Charity is not an event; it is a reflex. I never had a problem with the giving itself. What bothered me was the opacity. Even from a religious perspective, giving is not just generosity—it is accountability. Charity is worship, but worship is never divorced from responsibility. You must know where your donation goes, who benefits, how it is used, and whether it fulfills the social purpose Islam demands.

For example, Islamic economics is built not on currency, but on value. Early Islamic trade prioritized products over coins—meat for cloth, services for grain—creating systems where trust, transparency, and fairness determined wealth flow. The Prophet Muhammad (S) established clear, documented systems for Zakat collection and distribution. Caliph Umar ibn al-Khattab personally investigated charity allocation to ensure proper use. This wasn't bureaucracy; it was integrity. Islamic history shows that questioning how charity is distributed isn't un-Islamic—it follows the example of righteous predecessors.

Whenever I see unverified donation collectors on buses, I think about how far we've drifted from that ethic. Not because individuals are necessarily dishonest, but because the system itself is blind. When you hand over cash, you have no idea where it ends up or whether it's used as claimed.

We've seen what happens when transparency fails. The Destiny Group scandal defrauded thousands while claiming religious justification. When the scheme collapsed, ordinary people lost life savings—a betrayal that exploited their faith. It happened because there was no transparent system, no regulatory oversight, no digital trail. Even today, stories circulate about collectors who pocket contributions meant for orphanages. Genuine organizations suffer because donors grow skeptical, unsure whom to trust.

Charity is worship, but worship without accountability is wasted generosity.

Bangladesh today has more than 250 million active mobile financial service users. The digital infrastructure already exists. When bKash launched, skeptics said Bangladeshis wouldn't trust digital money. Today, we're one of the world's most successful mobile money markets. The same transformation can happen with charitable giving.

The recent launch of Digital Daanbox by Islamic Bank and Al-Arafah represents more than a product—it's a philosophical shift toward preserving the beauty of giving while eliminating the shadows where generosity gets lost. A digital donation system ensures every contribution leaves an audit trail, every beneficiary has verified identity, and every transaction withstands scrutiny.

International precedents prove this works. Malaysia's Pusat Pungutan Zakat collects over RM1 billion annually with full digital tracking. Indonesia's BAZNAS manages nationwide zakat with real-time reporting. Kenya's M-Pesa enables mobile charitable giving with complete transparency. Organizations like Ashaania Mission and Sunna Foundation in Bangladesh already demonstrate this approach—detailed reports, transparent accounting, measurable impact. This should be the standard everywhere, not the exception.

When we know exactly how much orphanages receive, we ensure children have nutritious food, healthcare, education, and clean living conditions. If we know mosque collections, we ensure funds support community development and social welfare rather than disappearing into informal channels. Transparency doesn't restrict giving—it amplifies impact.

The path forward requires coordinated action. Bangladesh Bank and the Islamic Foundation should establish standards for Shariah-compliant digital donation platforms within 90 days. BFIU and the Anti-Corruption Bureau should monitor anomalies without harming legitimate institutions. MFS providers like bKash and Nagad must integrate verified charity features directly into apps. Mosques, orphanages, and madrasas should voluntarily adopt digital systems. Religious authorities must embrace these technologies and educate communities. Citizens must demand transparency—ask questions, verify organizations, and use digital platforms.

Imagine donors receiving annual tax certificates, incentivizing formal giving over cash transactions. Imagine every charitable institution digitally onboarded with proper eKYC and reporting dashboards. Malaysia and Indonesia have already digitized large parts of their zakat ecosystems—Bangladesh can lead, not follow.

I love donating. I always will. But I want my sadaqah to lift people up, not fill someone's personal coffers. I want to give with a clean heart and clear conscience. Millions of Bangladeshis feel the same way.

Digital transparency is not optional anymore. It is necessary—economically, morally, and spiritually. If we can build a system where every taka has a purpose, every donation has a destination, and every giver has clarity, Bangladesh will not just be a country of donors. It will be a country of custodians building a more transparent, equitable future.

That is the real spirit of Islamic economics. It is also the future of Bangladesh.

Md Mahmudul Hasan is a digital banking and fintech strategist focused on financial inclusion, platform innovation, and emerging markets.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.