The Effectiveness of Zakat and Islamic Social Finance Management in Enhancing the Economic Well-being of the Prepare City Community

Abstract

ZIS, or zakat infaq and shadaqah, is one tool used to combat poverty and advance social welfare. Planning, organizing, executing, and monitoring zakat, infaq, and shadaqah are all parts of good financial management (ZIS). Funds (ZIS) are managed in BAZNAS Parepare City with the goal of boosting the local economy via the use of and distribution of business capital to the underprivileged. The community is greatly impacted by the distribution of money (ZIS) at BAZNAS thanks to good administration and efficient use. The purpose of this study is to ascertain the efficiency of fund management (ZIS) in enhancing the local economy of Parepare City. This study employs phenomenological qualitative research techniques while gathering data using field research techniques. Primary data from Parepare City BAZNAS personnel and secondary data, namely mustahik data from recipients of funds (ZIS) on the efficiency of fund management (ZIS) in boosting the local economy, were the sources of information used in this study. Interviews and documentation are the two data gathering techniques employed in this study. The findings demonstrated that: 1. The use of funds (ZIS) at BAZNAS is carried out using a business capital empowerment program to create enterprises from the community in Parepare City. 2. The business capital initiative at BAZNAS Parepare City has produced highly good distribution results for (ZIS) money to boost the local economy. Keywords: Effectiveness, Fund Management (ZIS), Economy, Society.