Introduction

The United Nations Report on Financing for Sustainable Development has outlined several specific actions. The report recognizes that governments, social economies, and private entities all play a role in financial economic development. Each entity uses different methods of financing economic development. Providing financing either through grants or financing benefits the recipients because the end results would affect economic development. It shows that the set of economic development financing tools and techniques focuses on the current times of economic development. The traditional public finance techniques, the role of financial institutions, and traditional social economic entities are given full attention. The chapter emphasizes the role of Islamic philanthropy that brings together different techniques and sources to create a workable financial development package. The new idea is to suggest a complementary technique that stresses the financing method from people to people. The idea moves away from current views that focus on giving from governments to people or from financial institutions to selected people or from private individuals to people. In addition, the new idea of Islamic philanthropy is also similar to what has been suggested by the United Nation and Organisation for Economic Co-operation and Development (OECD).