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Paid influencer fundraising? Why it’s crucial for Muslim influencers and charities to disclose.
In the digital age, social media has become an indispensable tool for raising awareness and funds for charitable causes. Roughly 30% of nonprofits use Instagram to raise money and awareness. X, (formerly known as “Twitter”), is also significant, with 55% of people engaging with nonprofits on Twitter taking some sort of action (Nonprofits Source) (360MatchPro). Influencers, with their vast reach and loyal followings, have emerged as powerful allies for charities looking to amplify their message. However, as with all powerful tools, there comes a responsibility to use them ethically and transparently. For Muslim charities, it’s both legally and morally crucial to disclose when influencers are paid to help fundraise.
Legal obligations and compliance with regulations ⚖️
Safe to say all major countries including Canada, the USA and UK mandate that social media influencers disclose any financial, employment, personal, or family relationships with brands they endorse, including fundraising for charities. This applies universally to all endorsements. Additionally, influencers must disclose any paid relationships with charities, ensuring transparency and upholding ethical standards in endorsements (Competition Bureau Canada, 2020), (CMA & ASA, 2020), (FTC, 2019).
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In 2016, Warner Bros. settled with the Federal Trade Commission (FTC) after it was revealed that the company had paid influencers, including the prominent YouTuber PewDiePie, to promote the video game Middle-earth: Shadow of Mordor without proper disclosure. The influencers were instructed to give positive reviews of the game, but many did not clearly disclose that they were being compensated for their endorsements. As a result, Warner Bros. agreed to a settlement with the FTC, which required the company to ensure that future influencer campaigns would include clear and conspicuous disclosures, emphasizing transparency in advertising.
Moral imperatives 😇
Islamic alignment with paying Influencers
Many Muslim organizations recognize that ethical and traditional Islamic principles support fair compensation for individuals contributing to meaningful causes. The Quranic reference to al aamileena alayha—those employed in the collection and distribution of Zakat—establishes a precedent for remunerating individuals engaged in beneficial initiatives. Beyond this, Islamic tradition upholds the principle of compensating those who perform good deeds, such as paying imams and muadhins for their service to the community, providing salaries for Islamic lecturers and preachers who dedicate their time to teaching, and compensating writers and content creators for Islamic publications that spread knowledge. In this light, compensating influencers who assist in fundraising efforts aligns with these principles, as their work helps amplify charitable causes and inspire generosity. Ensuring fair remuneration for their efforts not only reflects Islamic values of just compensation but also maintains donor trust and integrity in outreach efforts.
Upholding Islamic principles of honesty with modern day ethics
Islam places a high value on honesty and transparency. Allah commands justice and excellence (ihsan), guiding us to uphold integrity in all that we do. Historically, Zakat collectors were entitled to a portion of the funds as compensation, yet there was no requirement to disclose the exact percentage of their administration fee. Sharia has always respected the ‘urf (customs) of a time and place, and in today’s world, best practices emphasize disclosure as a means of maintaining trust, by openly disclosing paid endorsements where suitable.
Why disclosing that influencers are paid is best for the long run 🤝
Many charities are committed to transparency in their spending but recognize that donors may misunderstand influencer payments, fearing that their contributions are directly allocated to influencers rather than the intended cause. However, transparency ultimately fosters trust. In reality, these payments are not deducted from individual donations but are covered by the charity’s broader marketing or administrative budget—just like any other promotional expense. Moreover, rather than relying on large corporations, many charities choose to work with trusted figures within the Muslim community—such as scholars, Imams, and content creators—ensuring that resources remain within the Ummah and contribute to long-term communal benefits.
Why are we posting this? 🧐
As a platform, LaunchGood has both the capacity and obligation to lead the Muslim charity sector in adopting best practices. If an individual charity were to implement these policies on its own, it would have limited impact, affecting only its own potential. Numerous charities have requested that we set a standard for everyone to follow, and this is our earnest attempt to create a fair and balanced approach. The conversation has started amongst leaders in Muslim charities and will keep you all posted via our blogs.
Questions left to be answered? 🤔
We've emphasized the importance of disclosure, but what qualifies as sufficient transparency? While legal requirements typically mandate only a general disclosure that a promotion is paid, best practices suggest going further. Many major charities already include marketing expenses—including influencer fees—in their annual reports or financial statements, ensuring accountability. Rather than leaving it entirely up to each organization, charities should consider adopting clear, accessible reporting on their marketing expenditures, reinforcing donor trust. This approach not only dispels misconceptions—such as the belief that influencer fees come directly from individual donations—but also aligns with broader ethical standards in charitable fundraising.
Conclusion
For Muslim charities, disclosing when influencers are paid to help fundraise is both a legal necessity and a moral imperative. It aligns with Islamic values of honesty and transparency, fosters trust and credibility, enhances donor relations, and promotes ethical and effective fundraising practices. By embracing transparency, Muslim influencers and charities can uphold their moral and legal responsibilities, ensuring their efforts to support those in need are conducted with integrity and trustworthiness.
We are all navigating this new space together. If you have any questions, comments or concerns, we would be more than happy to hear your feedback!
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