Model of Productive Islamic Social Fund Management for Poor Empowerment

Abstract

Purpose: It aims to increase its benefits to realize community welfare and poverty reduction. This research develops a productive Islamic social fund management model for the empowerment of the poor. Theoretical framework: According to Sartika (2008), poverty is a great danger for humanity, and few people fall for their civilization only because of it. Islam, as Ad-In, offers several doctrines for humans that apply universally with two-dimensional characteristics, including happiness and prosperity in the world and hereafter. Design/methodology/approach: This study uses an exploratory and qualitative constructive approach. It is to develop models of interaction, integration, and innovation in the management of productive zakat, infaq, and shadaqah funds. Data collection methods include interviews, documentation, and observation. The data was analyzed using the Miles & Huberman (1994) approach, which consists of the collection, reduction, display, and conclusion drawing/verification. Findings: BAZNAS Lumajang Regency, Indonesia, approximately implements the three-circle model of empowering amil zakat institutions. The first circle, which is an increasingly significant fundraising activity, is carried out successfully by BAZNAS Lumajang Regency in Indonesia. This is indicated by the increasing number of Islamic social funds yearly. The second circle, which is an Islamic social fund distribution activity enlarges due to the excellent interaction between BAZNAS management and mustahik / Islamic social fund recipients by direct or indirect means . Research, Practical & Social implications: Studies have focused on productive economic activities to develop a productive Islamic social fund management model. This model explains how BAZNAS or other amil Zakat institutions distribute Islamic social funds from Zakat and infaq to empower the poor and alleviate poverty. All BAZNAS and LAZ Indonesia should use the three-circle model combined with a productive Islamic social fund management model to successfully empowered the poor. Further researchers need to do testing and developing a model of Islamic social fund management model. Originality/value: The studies construct a model of Islamic social fund management consist of integration, interaction and innovation approaches.