Glossary
Tabarru'
A donation or voluntary contribution, given without expecting anything back.
تبرعtabarru'
Tabarru' is a gratuitous contribution. It is the legal engine of takaful, where participants donate into a mutual pool rather than buying cover, and it is the classification that makes guarantees free: AAOIFI's Shariah Standard No. 5 explains in its Appendix that a guarantee is 'one of the contracts of charity since it involves a readiness to give away the amount of a loan for no consideration', which is precisely why AAOIFI holds that a bank may not charge you for guaranteeing your card purchases.
Related terms
KafalahA guarantee: one person promising to cover another person's debt if they do not pay.TakafulIslamic insurance, where members contribute to a shared pool that pays out to whoever suffers a loss.HibahA gift given freely, with nothing promised in return.SadaqahVoluntary charity, given whenever you choose and in any amount.
Sources
- AAOIFI Shariah Standard No. (5) Appendix B; DSN-MUI Fatwa No. 53/DSN-MUI/III/2006 on the tabarru' contract in Islamic insurance