EDUCATION ZAKAT COORDINATION ISSUES: STUDENTS’ BIRTH STATE, PARENTS ADDRESS AND POTENTIAL ECONOMIC LOSS

Abstract

The research examines on the challenges faced by students when applying for zakat with a special focus on the status of their birth state and parent’s residential address. Through a mixed-methods approach, the research conducts a comparative analysis of eligibility criteria and collects testimonies from 21 students through interviews to gain qualitative insights, where the mismatch between birth state and residential address of students and parents causes 47% failure in obtaining zakat application approval. The study estimates the economic loss resulting from operational and structural coordination failures by assessing the number of poor migrants household who may underserved by zakat institutions due to mismatch between birth state and residential address or incomplete residential period requirement, which is estimated at RM 4.2 billion and RM 9.96 billion for Selangor and Malaysia, respectively. A focus group discussion among students of zakat class is conducted to validate the identified problems and gather consensus on zakat application processes and challenges, where majority of them got a wrong understanding about the process. The research emphasizes the importance of a streamlined and coordinated approach to enhance the effectiveness of zakat institutions and mitigate economic losses due to coordination failures.