Tahfiz education plays an important role in preserving Islamic knowledge and values within Malaysia’s broader educational landscape. However, many tahfiz institutions face growing challenges in achieving financial sustainability due to their dependence on irregular funding sources such as donations, zakat, and community contributions. This study examines the financial sustainability of tahfiz education providers in Malaysia, focusing on the relationship between governance practices, funding strategies, and institutional performance. A quantitative research design was adopted, involving questionnaire distributed to the founders and management from selected tahfiz schools across several Malaysian states. The findings reveal that financial sustainability among tahfiz institutions is closely linked to the quality of governance, diversification of income sources, and the presence of structured financial management systems. Schools with clear accountability frameworks and professional management practices demonstrated stronger financial resilience compared to those relying solely on ad hoc donations. The study highlights the urgent need for capacity building in financial planning, transparent reporting mechanisms, and collaborative support from government and religious authorities. By addressing these structural issues, tahfiz institutions can enhance their financial independence, ensure operational continuity, and strengthen their contribution to Malaysia’s Islamic education sector.
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