Distributing Zakatu Kasbil 'Amal as an Alternative to Student Funding, Evidence in Indonesia’s Universities

Abstract

Background The purpose of this paper is to clarify the use of zakat as an alternative funding for students to pay their tuition fees. Apart from that, this paper also explains how zakat collected from muzakki fixed income known as zakatu kasbil 'amal, which is known as income zakat and is still controversial in Indonesia. Method The study uses a systematic literature review with an inductive approach to find out the theoretical basis of the research questions. The analysis uses a qualitative method that explores significant findings from various literature sources. The findings will combine with the exploration results of several universities in Indonesia that use social funds as a tool for helping students. Result The income zakat controversy mediates using the precautionary principle, which ensures that the projected income indeed exceeds the nisab (1 year) of the income. Some Islamic universities in Indonesia carry out this zakat withdrawal and even use an auto debit system. On the other hand, the distribution of zakat to students is also controversial because zakat is part of worship whose distribution is regulated into nine asnaf. Nevertheless, students may be equated with one of the asnaf so that it becomes permissible to be the subject of zakat distribution. Observation findings at Indonesian Islamic universities even show that the results of zakat distribution strongly influence the success of students’ studies, even if only in aid of tuition fees.