This paper observes the social and economic roles played by an Islamic organization , with special reference to the Muhammadiyah , the Indonesian second largest Muslim association. A closer attention is paid to the development of welfare ideology and social responsibility , suc as orphanage , house of the poor at the Muhammadiyah's council of alms,which represent its social and economic vision , have been highlighted . This paper points put that since the Muhammdiyah has recently been more bureaucratized and dealing with various profit and cost centers; it likely faces organizational and cultural predicaments in presenting the ideology of welfae-ism. In order to get a more elaborative assessment, the writer takes modern philanthropic definition into discussion as well as analyzes organizational policies and problems that the Muhammadiyah might have faced . The study reveals that to achieve a more actual meaning of social responsibility , with which the Muhammadiyah has been concerned, reinterpretation of religious doctrines is needed.