The objective of this paper is to present a thorough examination of reward-based crowdfunding within the framework of Islamic finance. It will examine how the fundamental ideas of Islamic finance relate to---or don't relate to---the workings and procedures of rewardbased crowdfunding. It will also look at the possible effects of reward-based crowdfunding in Islamic finance, including the social and economic as well as legal ramifications.
This analysis will aid in the creation of an Islamic framework for crowdfunding by looking at the moral and legal issues that arise in reward-based crowdfunding. It will clarify possible obstacles and advantages for investors and business owners who want to use rewardbased crowdfunding in accordance with Islamic law. Moreover, it will assist industry participants in Islamic finance in comprehending and navigating the intricacies of this cuttingedge financing model.
To sum up, the objective of this analysis is to establish a connection between the concepts of Islamic finance and the quickly changing realm of crowdfunding. It aims to support the expansion and development of reward-based crowdfunding within the context of Islamic finance by highlighting the main areas of convergence and divergence and offering viable solutions.
METHODOLOGY
The methodology in this research is a method of gathering information from various points of view in order to promote the quality of the research and achieve objective and comprehensive conclusions. The data collection approaches used in the research include library research, field research, and documentation studies. The sources of information used in this study approach are regulations governing the merging of Islamic State-owned banks, books, literature, previous research, and other related books. Only those that are specifically linked to the topic are chosen for this data source. The authors used the qualitative research method in this study, which is a research approach that examines and generates descriptive data results in the form of written words. This research approach uses the written word method rather than the statistical method to generate data (Nurdin & Hartati, 2019).Â
ANALYSIS AND DISCUSSION RBCF Business Model
Rewards-based, or seed, crowdfunding is a type of small-business financing in which entrepreneurs solicit financial donations from individuals in return for a product or service.
There are about 19 times as many rewards campaigns as there are for its closely related counterpart, equity-based crowdfunding.
Business owners describe their project or business idea and fundraising goal on a crowdfunding platform. In return for donations, businesses provide rewards. For example, a jewelry designer might reward everyone who contributes $100 with an original handmade bracelet, or an inventor of solar-powered lawn mowers might give a mower to contributors at the $1,000 level.
This type of financing is geared toward startups, particularly in creative fields, that don't qualify for traditional small-business loans but have compelling projects or want to test a market. Small businesses with a complex product or service might want to explore traditional funding options; it might be hard to explain the value of your company in layman's terms to a crowdfunding audience. Anyone --- family, friends, customers, business partners --- can contribute to a rewards crowdfunding campaign. Individual donations are often small, so business owners need to persuade as many people as possible to pitch in. Often, the campaign is shared on social media with the hope that the business owner's followers will, in turn, share the campaign with their networks. Platforms typically charge a percentage that can be as low as 5% to as high as 13% of funds raised, and may charge an additional processing fee.
 Reward-based crowdfunding can be considered as the most publicly familiar crowdfunding model, where backers contribute to projects without any monetary returns (Mollick 2014). Instead, they expect to receive material compensations (e.g. real products) as well as immaterial compensations (e.g. thank-you letters) in return of their contributions (Gerber et al. 2012).
