MADRASAHS OF THE PROPHET'S ERA AND THEIR CAPITAL MANAGEMENT

Abstract

The Madrasahs of the Prophet Muhammad’s (ﷺ) era served as foundational institutions for religious, moral, and intellectual education, playing a pivotal role in shaping Islamic society. These early centers of learning, such as Suffah at Masjid al-Nabawi, not only provided spiritual guidance but also reflected an organized system of resource and capital management. Despite the absence of formal financial structures, the Prophet (ﷺ) and his companions ensured the sustenance of these institutions through voluntary contributions (Sadaqah, Zakat, Waqf), labor sharing, and communal support. The capital was managed with simplicity, transparency, and a focus on collective welfare, ensuring equitable access to education regardless of socioeconomic status. This research explores the mechanisms used to manage educational capital during the Prophet’s time and highlights how these principles can inform sustainable, ethical models for funding and administering madrasahs today. The study offers insights into aligning spiritual integrity with practical economic frameworks in religious education.