Quality-Based Financing in Islamic Education: A Strategic Approach to Institutional Effectiveness

Abstract

Educational financing is a strategic aspect in determining the direction and quality of Islamic educational institutions. This article examines how financial management can be systematically directed to support institutional quality improvement. Using a literature study approach and thematic analysis, the paper explores the concept of quality-based financing through three main focuses: general financial management, integration of quality principles in budget practices, and managerial applications in Islamic education institutions. The findings indicate that structured and result-oriented financing positively impacts institutional efficiency, educational service quality, and program sustainability. Therefore, visionary leadership, strengthened accountability systems, and financing innovation are needed to transform Islamic educational institutions into excellent and competitive entities.