We are allowed to commemorate the event of the Prophet’s birthday by offering charities and performing optional good works that are always permitted in Islam.
However, it would be even better to seize the opportunity to educate ourselves and others about the great benefactor, the Messenger of mercy and to express love for him by following in his footsteps.
Saying salawat (prayers) and nasheeds in praise of the Prophet (peace and blessings be upon him) are noble deeds.
Sending salawat on the Prophet (peace be upon him) has been enjoined in the Qur’an. Praising the Prophet (peace be upon him) is also an established tradition that we inherited from the time of the Prophet (peace be upon him), thus, no one can consider it to be bid`ah (an innovation) in religion.
Having said this, however, I must also make it clear that we must never exceed the limits by equating the Prophet (peace be upon him) with Allah.
This would be the case if we were to attribute divine powers to him or to take him as an intermediary in worship.
Our love of the Prophet (peace be upon him) must be expressed without any taint of shirk (disbelief).
In fact, celebrating the great life of the Prophet (peace be upon him) will go a long way in uniting Muslims together on the event that all of them will be proud of.
So, there is indeed a great benefit in these times, especially because Muslims are in need of a unifying event.
There is nothing more important for humanity than the coming of the mercy of the worlds. May Allah fill our hearts with the love for His Messenger (peace be upon him).