The rise of Islamic donation-based crowdfunding (IDCF) platforms marks a modern evolution of traditional Islamic social finance practices. These platforms offer innovative channels to connect donors and beneficiaries across borders but also present unique regulatory challenges—particularly in Malaysia. Unlike equity- or lending-based crowdfunding, donation-based platforms currently fall outside the direct oversight of existing regulators, exposing them to risks such as misuse, fraud, and potential money laundering. This paper investigates the regulatory gaps affecting IDCF in Malaysia, focusing on the lived experiences of project managers who utilize these platforms for community-driven initiatives. Drawing on qualitative insights, the study reveals challenges related to trust-building, transparency, and authenticity. The findings underscore the urgent need for a tailored regulatory framework that aligns with both Islamic ethical principles and modern financial governance. The study also highlights the importance of government support, platform standardization, operational costs, and perceived control for project managers navigating this evolving landscape. These findings provide valuable insights for both platform developers and policymakers, aiming to enhance the effectiveness and sustainability of IDCF in Malaysia. Additionally, the study offers a deeper understanding of how project managers assess platform options to ensure alignment with project goals and ethical considerations.
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