Abstract
This study aims to examine determinants of zakat payers’ (muzakki) interest to pay zakat through Zakat Management Organization (ZMO). The respondents were randomly selected from muzakki who paid their zakat on profession/income through ZMOs in Indonesia resulting in 100 respondents. Using Structural Equation Modelling (SEM) method, this study found that transparency of zakat management, ZMO promotions using public figures, and supporting regulation which imposes zakat as a tax deductible expense have significant impact on muzakki's interest to pay zakat through ZMO. Meanwhile improvement of digital services and socialization of zakat through social media do not have significant effect on muzakki's interest. However, using sub-sample who are active users of social media, this study discovered a negative effect of social media usage on muzakki’s interest. This finding reinforces the suitability of Theory of Planned Behavior (TPB) in the context of muzakki's behavior to pay zakat which is influenced by the quality of ZMO services.
Highlights
IntroductionZakat is one of the Islamic pillars obligated by prayer
Introduction obligations inIslam like the five times dailyZakat is one of the Islamic pillars obligated by prayer
Using the structural equation modelling (SEM) method, this study found that transparency of zakat management, Zakat Management Organization (ZMO) promotions through public figure involvement, and the supporting regulation which imposes zakat as a tax deduction have a significant impact on muzakki's interest to pay zakat through ZMO
Summary
Zakat is one of the Islamic pillars obligated by prayer. The obligation of zakat is mentioned in the Almighty Allah SWT to any Muslim who many verses of the Quran for example, in the meets the criteria. According to the Quran, zakat chapter of Al Baqarah verse 3, 43, 83, 110 and has a similar position with other fundamental 177. According to Islamic teaching, zakat is collected by amil, a person or institution which is appointed to collect zakat from the rich Muslim. The amil is one of the zakat beneficiaries as mentioned in At-Taubah verse 60 which refers to an individual or organization in charge of the zakat fund and asset management (Sabiq, 1997)
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