The Evolution of Islamic Philanthropy in Indonesia’s Digital Age (2016–2023)

Zakat given to mustahik will play a role as a supporter of their economic improvement if it is consumed for productive activities. The development of zakat is productive by using zakat funds as business capital, to empower the recipient's economy, and so that the poor can run or finance their lives consistently. With these zakat funds, the poor will get a steady income, increase their business, develop their business and they can set aside their income for saving. The purpose of this study is to determine the management and development of zakat in Indonesia. This research method uses library research with a qualitative descriptive analysis approach. The management of zakat by zakat amil has been exemplified since the time of the Prophet Muhammad, the management and distribution of zakat is carried out in an institutionalized and well structured manner. In the Indonesian context, this is reflected in the Law of the Republic of Indonesia Number 23 of 2011 concerning Management of Zakat, in which the Law regulates in sufficient detail the functions, roles and responsibilities of the Amil Zakat Agency (BAZ) and the Amil Zakat Institution. (LAZ). Furthermore, in order to maximize the role and function of zakat management institutions, of course, they must be managed as well as possible. It is not enough to end there, zakat management institutions must also be accountable, namely the trust given to the trust given by the muzakki and also the mandate in distributing it to mustahiq, in the sense of being right on target and effective.

Pontianak City Baznas has a potential zakat revenue of approximately 250 billion. However, the realization of zakat received was only 5.9 billion or only 2.4%. Meanwhile, the number of Muslims in Pontianak City is 511,431 people, but only 91,419 Muslims paid zakat in 2020 or only 17.9%. And in 2020 there was a decrease in zakat receipts of around 1.1 billion and a decrease in the number of muzakki by around 34,000 people. This research aims to find out what factors hinder and support the zakat management strategy in the Pontianak City Baznas and how to optimize the zakat management strategy in the Pontianak City Baznas. This type of research uses a descriptive quantitative approach. The types of data used are primary and secondary data. The data collection techniques used were observation, interviews, questionnaires and documentation. The analysis method used is SWOT analysis (Strengths, Weaknesses, Opportunities and Threats). The results of the analysis show that the main inhibiting factor in zakat management in Pontianak City Baznas is that Baznas has not been able to reach all muzakki in Pontianak City and many new zakat management institutions have been established that have the same role. Meanwhile, the main supporting factor for zakat management at Baznas Pontianak City is the existence of Baznas which is supported by law and the majority of the people of Pontianak City are Muslims. Pontianak City Baznas is in quadrant I (Aggressive Strategy), namely Pontianak City Baznas is in a strong condition and has opportunities, so it is very possible to continue to expand, increase potential and receive maximum zakat. The strategy for managing zakat at the Pontianak City Baznas to be optimal is by increasing the socialization of zakat to all levels of society, increasing the formation of UPZs in mosques, surau-surau and agencies in Pontianak City, collaborating with zakat management institutions and zakat institutions. newly established in Pontianak City, carrying out new innovations in the zakat program, optimizing the database, and developing a zakat payment system using current trending technological media.

Introduction to The Problem: Zakat, a core Islamic practice, mandates Muslims to give to needy people. Indonesia's sizable Muslim population and Islamic financial institutions create substantial zakat potential. However, effective collection and distribution face hurdles, including a lack of understanding, trust, and optimal management. Legislation and education efforts aim to improve zakat management, with transparency and good governance crucial. Enhancing public awareness and accountability can unlock the full potential of zakat funds for social welfare.Purpose/Objective Study: This study aims to analyze the effect of Sharia compliance, Good Corporate Governance, and Amil Zakat competence on zakat management in North Sumatra Province.Design/Methodology/Approach: The population of this study is all Amil Zakat in North Sumatra Province, while the sample is all managers of the Institution of Zakat in North Sumatra Province which are under the auspices of the National Board of Zakat Republic of Indonesia (BAZNAS) of North Sumatra Province. Data were collected through a questionnaire instrument and analyzed using descriptive statistical analysis techniques and Structural Equation Model (SEM) analysis.Findings: The results of the study show that Sharia compliance has a positive and significant influence on the management of zakat. The implementation of Good Corporate Governance (GCG) in zakat management institutions also has a positive impact on zakat fund collection, good reputation, and transparency and accountability in the distribution of zakat funds. As well as amil competence also has a positive and significant influence on the management of zakat. The results of the study also emphasize the importance of Sharia compliance, the implementation of Good Corporate Governance, and increasing the competence of amil in zakat management. To improve zakat management, zakat institutions, government and society need to work together to ensure fair, transparent and competitive zakat management.

This study aims to identify the factors that influence the application of these regional regulations. This study uses a qualitative approach by conducting in-depth interviews with several related parties, such as the Gorontalo Municipal Zakat Agency (BAZ), zakat management institutions, and the community. The results of the research show that there are several factors that influence the application of Regional Regulation Number 3 of 2021 concerning Zakat Management in the City of Gorontalo. First, regulatory factors, namely the clarity and consistency of regulations, as well as a deep understanding of the contents of these regulations. Second, institutional factors, such as the capacity and competence of zakat management institutions, support from local governments, and the active involvement of the community in zakat management. Third, social and cultural factors, including people's perceptions of zakat, trust in zakat management institutions, and a culture of mutual assistance in society. This study also found several obstacles in the implementation of these regulations. These obstacles include the lack of public understanding of these regulations, low community participation in zakat management, lack of local government support in implementing regulations, and limited capacity and competence of zakat management institutions. Based on these findings, this study recommends several steps to improve the implementation of Regional Regulation Number 3 of 2021 concerning Zakat Management in the City of Gorontalo. These steps include increasing socialization of regulations to the public, increasing community participation in zakat management, increasing the capacity and competence of zakat management institutions, and strengthening support from local governments.

Indonesia had potential zakat as much as 217 Trillion Rupiah in 2017, but can only be collected 6 trillion or 0.2%, one of the factors is Muzakki’s (Zakat Giver) lack of trust in zakat management institutions so that they prefer to distribute their zakat without going through zakat management institutions directly. To encourage improving management of zakat management institutions requires planning, designing, and building systems that can assist in managing zakat. This study aims to design an architectural enterprise for zakat management institutions in achieving the collection, management, utilization, and distribution of zakat and alms. The methodology used in this study uses the TOGAF ADM approach by collecting data through observation and interviews with one of the private zakat management institutions. The results of this study are in the form of a system architecture design that can be used as a reference for zakat management institutions with a prototype of the zakat reporting system.

This study aims to analyze the strategy of productive zakat management in the digital era as implemented by the Zakat Management Institution Musa'adatul Ummah. A qualitative approach using a case study method was employed to gain in-depth understanding of the institution’s strategic efforts in empowering zakat recipients (mustahik). The findings reveal that the strategy focuses on the selection of potential mustahik, the provision of business capital in the form of non-repayable grants, and intensive mentoring in entrepreneurship. The institution has also begun utilizing digital technology to enhance efficiency and effectiveness, particularly in fundraising through digital platforms, program promotion via social media, and zakat distribution reporting in the form of digital infographics. However, the digitization process still faces several challenges, such as limited technological infrastructure, insufficient digital competence among human resources, and low digital literacy among mustahik. These findings highlight the need for institutional capacity building, the development of an integrated digital zakat system, and strategic collaboration with various stakeholders to support sustainable digital transformation in zakat management. This study contributes theoretically to the development of a digital-based zakat management model and practically offers insights for local zakat institutions to navigate the challenges of the digital era.

Introduction:This study aims to analyze zakat management at the National Zakat Agency (BAZNAS) in the digital era, focusing on the role of information technology in improving the effectiveness, efficiency, transparency, and accountability of zakat management. As one of the pillars of Islam, zakat plays a crucial role in promoting social welfare and reducing economic inequality. Therefore, optimal zakat management is essential, especially in today’s digital environment. Methods:This research employs a qualitative approach with a case study design. Data were collected through in-depth interviews and document analysis conducted at several zakat management institutions. The study focuses on identifying how digital systems are implemented and the challenges faced in integrating information technology into zakat management. Results:The findings reveal that the integration of digital technology—such as online platforms, mobile applications, and integrated information systems—significantly contributes to the efficiency of zakat collection and distribution processes. Digital tools also facilitate the identification of mustahik (zakat recipients), accelerate the distribution of aid, and enhance public trust in zakat institutions through transparent financial reporting. Conclusion and Suggestion: The study concludes that digital transformation plays a pivotal role in improving the performance and accountability of zakat management. However, challenges remain, including limited digital infrastructure and the need to enhance technological literacy among zakat managers. Therefore, developing robust information systems, strengthening human resource capacity, and fostering collaboration among stakeholders are key strategies for realizing effective and impactful zakat management in the digital era.

Zakat holds a very strategic position regarding religious, social, economic, and social welfare aspects. In terms of community welfare, three pillars must be optimized, one of which is the empowerment of zakat potential. To optimize zakat management, the government must perform a practical regulatory and supervisory function, which BAZNAS does at all levels. The potential of ZIS funds contributes to the expansion of MSMEs as a driver of economic growth. MSMEs require not only capital but also business advice. In Indonesia, zakat management institutions have funds that can be used for business capital or productive Zakat. However, numerous cases in Indonesia involve the mismanagement of productive zakat funds, one of which is the philanthropic organization Aksi Cepat Tanggap (ACT), which has recently come under scrutiny for cases of misappropriation of people's funds. The purpose of this research is to determine how the monitoring system for the UMKM empowerment program at the Infaq Management Institute (LMI) in Bangkalan Regency complies with Law No. 23 of 2011 on Zakat Management. As a result, it is necessary to investigate how the monitoring system for the MSME empowerment program is implemented at the LMI Bangkalan Branch. This study used a qualitative data collection approach, employing interviews, observation, and documentation studies. According to the findings of this study, the supervision of LMI Bangkalan takes the form of an annual report on the performance of LAZNAS LMI activities in the form of a Financial Audit. Supervision is carried out internally at the Bangkalan Branch LMI by holding weekly and monthly evaluation meetings in each field and external supervision from the East Java Central LMI and the Central BAZNAS.

Islamic social finance, such as the zakat management Institution must guaranteee the accountability of the zakat management funds received from muzakki. The zakat management institution must understand the concept of accountability for islamic social finance institutions, in order to carry out the accountability process correctly. To guarantee the fulfilment of this accountability, The zakat management insitution needs to implement a good governance framework, zakat core prinsiple. This study aims to discuss the islamic accountability of islamic social finance in Indonesia, wether it is depend on the zakat core prinsiple or their own concept of accountability. This article is theoritical and conceptuaal study, with several method of collecting data from journal and direct observation. The result show that islamic social finance tend to providing financial and non financial information periodically to their stakeholders and public using nformation Technology (IT) including social media (facebook, instans messaging, and the ohers) in a unique and simple way. They begin to change this fulfilment of accountability from traditionally to modern using the internet. However, there are still difficulties in implementing some aspect of zakat core principle because of the limited human resource. Therefore, it still necessary to developed ilsamic social finance system strategy with support and assistance on the implementation of accountability in islamic social finance in Indonesia. Keywords: accountability, islamic social finance, zakat core principle

Issues related to zakat management are getting more and more attention from various parties, especially zakat management institutions and scholars in various related disciplines. Among the aspects of zakat management that are still lacking focus is the importance and effectiveness of the assistant amil's role in the process of zakat collection and distribution. The existence of a knowledge gap regarding the importance and effectiveness of the role of amil has caused the public to be less aware and understand the scope of duties and responsibilities of amil assistants. This situation to some extent has caused confusion and misunderstanding which can affect the perception of the community, especially potential zakat payers towards zakat management institutions, and special amil assistants. This study, which uses a qualitative approach, aims to identify the issues and problems faced by amil assistants and their impact on community perception. The results of this study will be used as a basis for formulating a strategic communication plan to shape the public's perception of the importance of the role of amil assistant. Based on the SWOT analysis, it was found that the importance and effectiveness of the assistant's role was influenced by seven issues that became the main problem. The results of the study also show that there is a need to formulate strategic communication initiatives to form a positive perception among the community towards the role of amil assistants. The implications of the study are also discussed in this study.

Many zakat amils who work in zakat management institutions have different educational backgrounds, experiences, and knowledge as well as understandings regarding good and correct zakat management schemes. Therefore, to create standardization of the same zakat management capabilities in each zakat management institution, the amil zakat certification is one of the right ways to go towards this. Amil zakat certification is formulated to create amil to have superior and tested work competence, to create effectiveness and efficiency in managing zakat. At BAZNAS Cilacap Regency itself, there are at least two amil who have participated in the amil zakat certification and are declared competent. For this reason, the purpose of this study was to determine the effectiveness of the amil zakat certification in increasing amil competence at BAZNAS Cilacap Regency.
 This research uses a type of qualitative research with a field survey approach, where in this study the researcher intends to describe and describe what events or problems are following what is obtained in the field, namely BAZNAS Cilacap Regency, whether the data is in the form of written or oral words from the informants as well as other supporting data. In data collection techniques, the authors use observation, interviews, and documentation. Meanwhile, in data analysis techniques, the authors use data reduction, data presentation, and drawing conclusions or data verification. As well as data validity techniques, the authors use triangulation and member checks.
 The results of the study show that the effectiveness of the amil zakat certification in increasing amil competence at BAZNAS Cilacap Regency, in general can be said to be quite effective. This is due to positive progress in improving the quality of the work competence of amil after they have been certified. In addition, supporting material as well as concrete evidence of increasing competence can be found by looking at the data on the number of muzaki and mustahik, the number of zakat, infaq, and alms beneficiaries, as well as the acquisition and distribution of zakat, infaq, and alms, which in general also continued to increase when two amil at BAZNAS Cilacap Regency had carried out certification and were declared competent.

The potential for collecting zakat in Indonesia is very high because the majority of the people are Muslims. However, the realization of zakat collection in Indonesia that has been collected by zakat management institutions, both BAZ and LAZ, is still far from the assumed amount. Zakat management institutions have an important role to collect, manage and distribute zakat. Therefore efficiency is needed by zakat management institutions in order to maximize zakat management. This study aims to analyze the level of performance efficiency of Zakat Management Institutions, especially LAZ Harfa Banten using data envelopment analysis (DEA) in the 2017-2020 period. Results of data analysis using software MaxDEA Basic 8 shows that in 2017 and 2020 LAZ Harfa Banten experienced perfect efficiency with a score of 100% or had an efficiency score of 1. Meanwhile in 2018 and 2019 LAZ Harfa Banten experienced inefficiency, namely in 2018 with an efficiency score of 94.94% and in 2019 the efficiency value was 83.56%. Inefficiency occurs because the input variable whose actual value is not in accordance with the DEA calculation target, namely total assets. Meanwhile, the output variables, namely the amount of zakat receipts and the amount of zakat distribution, both experience inefficiency because the actual value and target value are not appropriate or balanced.

The management of zakat is dynamic dealing with the socio-political context in a country, including Indonesia. Zakat regulation change from UU/38/1999 to UU/23/2011 pratically require adaptation from the role of zakat institutions in Indonesia. Zakat management institution in the community such as NU-Care LAZISNU and LAZISMU as zakat management institutions with civil society-based in programs and activities certainly cannot be separated from these regulatory changes. The regulation change was responded by changing its role as a zakat management institution. This article aims to describe the activities of NU-Care LAZISNU and LAZISMU and their position in responding zakat law. This research uses a case study approach and is designed in the form of a descriptive analysis to reveal field findings. The results of this research reveal that changes in national zakat management bring opportunities as well as challenges for zakat management institutions, both government zakat institutions and non-government zakat institutions. NU-care LAZISNU and LAZISMU build some adjustments by modernizing their institutions. These two civil society-based zakat institutions carry out various strategies in collecting, distributing and empowering zakat, infaq, and sedekah.

BAZNAS of Palangka Raya is a zakat management institution that is tasked with collecting, distributing and utilizing zakat. This study aims to analyze the optimization of productive zakat utilization in economic empowerment of mustahik, analysis of the benefits of productive zakat in improving the standard of life of mustahik, and analysis of the constraints that BAZNAS feels in optimizing productive zakat.This research is a qualitative type of research using a descriptive qualitative approach. The research subjects were four productive zakat managers and ten informants from mustahik who received revolving fund loan assistance. This research resulted in conclusions, namely, first, the optimization of zakat utilization in the framework of empowering the mustahik in BAZNAS of Palangka Raya through the Palangka Raya Sejahtera program has not been carried out optimally, due to the absence of supervision, assistance and guidance from BAZNAS so that there mustahik who misuse these funds. Second, the benefits of this program are very helpful in the economic empowerment of mustahik with an increase in business results, a network, an increase in family income, and independence. Third, the obstacles that are often felt by BAZNAS in optimizing them are the lack of human resources in management and in the field, the provision of business capital that is misused by mustahik, the lack of trust of muzaki in institutions, and the large number of ZIS collecting organizations besides BAZNAS.

This research is motivated by an incident involving the ZIS management institution which is responsible for managing financial reports in the context of zakat management, which has not been able to ensure that its financial reporting is in accordance with PSAK 109 regulations. The lack of trust of muzaki (people who pay zakat) in zakat management institutions can hinder the proper zakat management process. distributed to mustahik (zakat recipients) effectively. The aim of this research is to analyze the application of PSAK 109 ZIS in zakat management at BAZNAS Cilacap Regency. This research uses a qualitative approach with a descriptive type. Data collection techniques in this research used several methods of observation, interviews and documentation. The research results show that the preparation of financial reports for zakat, infaq/alms funds at BAZNAS Cilacap Regency has been presented in the form of a fund management report in accordance with PSAK 109 guidelines