<![CDATA[The development of shariah industry increasingly visible with the presence of various institutions based on shariah bases. Shariah economics not only has a profit oriented industry, there are also social institutions that collecting and channeling funds to the public for goodness. Islamic philantrophy consists of Zakah, Infaq, Shadaqah, waqf and other social fund. All have been managed by an institution that already has a strong legal law. One of the institutions that manage funds from Islamic Philanthropy is LAZISMU, belonging to the Muhammadiyah community organization. LAZISMU already spread in several cities in Indonesia, including in the town of Parepare South Sulawesi. LAZISMU Parepare make a breakthrough philanthropy fund distribution in productive sector in the real economic activity of Smes. This paper is qualitative descriptive describing the source and channeling and Islamic philanthropy in Lazismu Parepare the period of 2017. And allocation of Islamic Philanthropy funding for Smes economic activity. From the results obtained from this paper shows that the distribution of Islamic Philanthropy funds conducted by LAZISMU Parepare for the real economic activity of SMEs is still minimal and has not become dominant. The totaly disbursement of funds carried LAZISMU Parepare amounted to 369.770.000 rupiah, only 7,04 percent channeled to the real sector of SMEs or only 26,020,000 rupiah.]]>
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