The Impact of Zakat Distribution

Abstract

AbstractThe literature on zakat management has continuously been discussed. However, there are not many review articles that have been conducted on zakat distribution, including its impact. The objective of this essay is to describe the related literatures on zakat distribution and its impact. A literature review was conducted using research articles, and sources from several databases such as Scopus, Google Scholar, Emerald, Proquest, SSRN, and Science Direct. In order to find related articles, search terms (namely, zakat distribution, impact of zakat, zakat management, zakat issues, and poverty alleviation) were used. Zakat distribution aims to alleviate poverty as zakat funds help to increase income to fulfill the basic needs of the recipients. Accordingly, zakat funds will help recipients’ financial situation and they are expected to live on a stable income and be able to pay zakat in the future. Thus, the main finding of this article shows that zakat distribution does give a positive effect towards improving the income of its recipients. Plus, zakat funds increased recipients’ savings as well, one of the effective tools in reducing poverty. Furthermore, the findings show that zakat funds can be considered a strategy in economic development. Hence, this article will provide ideas and suggestions for future research on zakat distribution.KeywordsZakatImpact of zakat distributionPoverty alleviation