Zakah Management Research Articles

The Criteria for Zakah Manager (Āmil Zakah), Qualification and Organizational Culture: A Review of Some Traditional Literature

Zakah is one of the pillars of Islam, which aims to be an instrument of equal distribution of income between the rich and the poor. In order to arrange, collect and distribute zakah property, it so called zakah manager (‘āmil) who works exclusively to take care of zakah. The command of a person who takes care of zakah is directly stated in the Qur'an (Surat At-Taubah [9]: 60). The role of zakah manager is one of the factors of success in the distribution of opinion in society. This paper aims to discuss in-depth analysis the criteria of zakah manager, it qualification and organizational culture in Islamic tradition. This paper is qualitative using documentation method in data collection. The review focuses specifically on the articles written in the areas of zakah management. It follows that the articles would be classified into four categories namely; the criteria for zakah manager, the appointement for zakah manager and its obligation, the qualification for zakah manager and its organizational culture.

Scenario of Zakah Management in Bangladesh: A Critical Analysis

The aim of the study is to describe and analyze the real scenario of zakah management in Bangladesh. Zakah is an important tool to eradicate poverty in the country and it can play a vital role in alleviating unemployment too. About 91.04% of the total population of the country is Muslim (Population and Housing Census, 2022, p. 8). A good number of Muslims are capable of paying zakah annually. However, the zakah management system in urban or rural areas is poor. And the capable people on whom zakah is compulsory are not so positive about distributing zakah among (mustahaqqun1) the beneficiary group. Almost, all of the zakah payers are not aware enough to pay zakah in the defined Sariah way. Only a few people legally pay their zakah portion among the eligible class. For this, the actual method of zakah distribution management in Bangladesh is not exercised and executed properly. This is why, the real beneficiary group is not facilitated in a systematic way. This study also tries to focus on the challenges of zakah distribution management in Bangladesh and tries to highlight the effective recommendations for resolving these problems.

Why do Zakah Institutions in Sri Lanka Underperform?

Zakah as a compulsory worship obligation of Muslims has been practiced for several decades in an institutionalized form in Sri Lanka. Although the institutionalized mechanism contributes to some improvements in socioeconomic conditions, recent research highlighted that the impact of such a model is yet below the expected level. The institutional zakah practice in Sri Lanka has remained essentially informal lacking any state recognition or zakah specific regulation. This paper examined the contemporary challenges and root causes of the zakah institutions’ underperformance in Sri Lanka. This paper took a qualitative methodology and collected primary and secondary data through official documents, interviews, and published literature. The empirical findings of the paper reveal a threefold challenge that contributes to the inefficient institutional zakah performance, namely low collection, ineffective disbursement, and external hurdles. The paper suggests that the prolonged dominant informal and individualist zakah culture of Sri Lankan Muslims fails to actualize the designated goals of zakah and this in turn has contributed to the contemporary challenges. The paper highlights the need for developing an alternative jurisprudential methodology that has the potential to offer sensible remedies to the contemporary identified challenges. The paper suggests that zakah institutions must thoroughly re-evaluate existing zakah applications to improve the effectiveness and efficiency of their zakah management systems. It is also suggested that it would be helpful to establish a National Zakah Consultative Body that can advise the government on adopting effective regulations or guidance relevant to zakah management for the Sri Lankan Muslim minority.

Applying the Sustainable Development Goals (SDGs) in Zakah Management at Kelantan

The Sustainable Development Goals (SDGs) as successor to Millennium Development Goals (MDGs) represent a broader intergovernmental agreement to foster action on broad-based development encompassing economic development, human development, and environmental sustainability. The Sustainable Development Goals (SDGs) is a program based on human rights that includes three dimensions, namely social, environmental and economic. All available resources need to be fully utilized to achieve the SDGs in 2030. In general, this goal asserts that "no one left behind" is in line with the 11th Malaysia Plan. The objective of this study is to identify the extent to which the Council of Islamic Religion and Malay Customs of Kelantan (MAIK) can adapt zakah management based on the goals of the SDGs. This paper uses the conceptual study method as a guide to applying the SDGs in zakah management at MAIK. This study chose a qualitative method by interviewing several people from the top management in this organization. The results of the study found that as many as seven goals can be adopted in zakah management, namely no poverty, zero hunger, health and well-being for all, quality education, career development, and economic development, making cities and asnaf settlements safe and resilient in addition to strengthening implementation methods by building a network with external agencies. The SDGs are aligned with MAIK's direction to become a leading world-class zakah management agency. This paper does not only touch on the issue of development to produce asnaf, but also refines the holistic issue resulting from the application of the SDGs. The contribution and implications of the study are discussed at the end of this paper

THE NEED FOR REVITALIZING ZAKAH REGULATION TOWARD PRODUCTIVE ZAKAH

Zakah management needs to be revitalized as the results achieved are far from the goals set. The efficient collection of zakah will contribute to people's welfare. This study analyzes Yusuf Qaradawi's productive zakah perspective in Fiqh al-Zakah to examine the regulation of management zakah in Indonesia. Adopting Qaradawi's thought, the government should develop the zakahs' rules, management, and implementation. The government also needs to re-regulate zakah from Muslim communities, such as zakah of professions, agriculture, plantations, gold, silver, and the like. Likewise, if the zakah provisions have been reached (nisab and haul), the government must take zakah out from savings or deposits owned by Muslim communities in banks.

THE PROGRESS OF SHARI’AH IMPLEMENTATION IN ZAKAH MANAGEMENT & THE ACTUAL PROCEEDS: MALAYSIA AS A CASE STUDY WITH CORRELATION ANALYSIS

This paper analyzes the Malaysian Zakah/Zakat Management, which is related to law and its actual proceeds.Despite numerous efforts being made in many OIC Muslim countries and technological breakthroughs, Zakah is still unable to tackle poverty eradication. This study shows the progress of Zakah by one of the OIC Muslim countries, Malaysia. Malaysia's Zakah actual proceeds are a far cry from a total Muslim population; in fact, approximately 60% of Malaysians are Muslim. Although enjoying tremendous economic growth, Zakah’s potential contribution to Malaysia indicates a gap within the country’s GDP. These failures may relate to Zakah institutions in each state that do not fully adhere to general Islamic law or not follow the fatwa of the Shafi' sect that Zakah is obligatory. The explanation is that, since the country is home to many races and religions, Zakah is exempted from contribution. A prove that the fatwa affects the Zakah's collection, the data would be computed to estimate the proceeds by statistical tools, namely; descriptive, correlation, regression, and the ARDL approach to co-integration testing. This study examines a collection of data between 1991 to 2019 related to economic growth in Malaysia, for instance, Zakah's collection, GDP, interest, inflation, taxes, and unemployment in the country. This paper encourages policymakers to review the decision taken by National Council Fatwa Committee to adhere to the proper fatwa by Shafi's sect and to create effective infrastructure policies.

Mapping the evolution of ZAKAH theme publications years 1964-2021: a bibliometric analysis

PurposeThe increasing number of papers on zakah shows that it has become an important research topic. However, few studies attempt to analyze the evolution of zakah studies which might be helpful as guidance for policymakers in creating zakah management systems and policies, for zakah management organizations administering zakah funds, for future research on related subjects and for academic actors to construct a zakah study curriculum. This study aims to conduct a bibliometric analysis of the evolution of zakah theme publications from 1964 to 2021.Design/methodology/approachThis study uses bibliometric analysis to analyze the evolution of zakah research. This study compared all Scopus-indexed journal papers to Zakah publications regarding research flow, themes, abstracts and titles. The relationships between researchers, the titles of the papers and keywords associated with “zakah” are analyzed in these publications published between 1964 and 2021. A total of 632 scientific contributions were discovered using RStudio and VOSviewer to analyze the bibliometric metadata.FindingsBased on the results, the theme of zakah has evolved from 1964 to 2021. The author emphasizes the zakah publication theme. Each affiliation and country have its conditions, management method, data sources and characteristics. The theme “zakah institutions and zakah collecting” grew in popularity between 2010 and 2021 and is projected to grow in the following years. Malaysia, Indonesia and Pakistan can be used as zakah development research models. In spans of zakah publications, the author with the most global citations is Wahab N.A., and the author with the most productive is Saad Raj.Research limitations/implicationsZakah publications are analyzed using the Scopus database. This study applied only Scopus index data, excluding non-Scopus, and most studies conducted in non-English languages. This conclusion indicates the issue’s importance among academic researchers and practitioners, notably on the subject of zakah. Thus, a comprehensive picture of zakah theme publications assists researchers and zakah fund institutions in making assessments, focusing on the unstudied fraction of the zakah theme.Practical implicationsThis research is planned to serve as a reference for future research, particularly examining the theme’s novelty. It is intended to have implications for policymakers, particularly zakah institutions, regarding funding the several zakah research issues and concentrations.Social implicationsThis research can guide future researchers and is expected to include parameters such as author, year and data source while analyzing zakah publications to generate new findings.Originality/valueThis is probably one of few comprehensive studies that examined the evolution of the zakah theme using the Scopus-indexed database. The relevance of this paper is to provide suggestions and projections for future zakah research. Scholars should examine zakah publications by author, year and data source to gain fresh insights. Search for data sources with high-impact factors and objective metrics, then clear out irrelevant documents to improve the analysis’ quality and findings.

The Decision to Zakah: The Interacting Roles of Transparency, Service Quality, and Trust

This study aims to examine the effect of transparency and service quality on the decision of muzakki to use the services of a Zakah Management Organization (OPZ) mediated by trust. This research was conducted for six months on 180 Zakah payers at OPZ in Makassar. The survey data were analyzed by structural equation modeling using AMOS. The results showed that muzakki's trust in Zakah management organizations could mediate the relationship between transparency and service quality on muzakki's decisions to use OPZ services in Makassar. This study contributes to the literature on transparency and service quality in increasing the trust and decision of muzakki in using OPZ services in Zakah distribution.

Islamic Economic Perspective and Potential of Zakah Imposement on Cryptocurrency

Indonesia is the home country for many Muslim, management and effectiveness of zakah is essential to the society. In the era of digital technology government imperative to use technology to improve the classical zakat administration ensure the transpiration and principle of easiness payment of zakah. This paper giving study of perspective of the economic islam and potential application zakah on cryptocurrency. This is a qualitative approach where the primary resource from Indonesia zakah administration laws and the secondary source as journal, article and published report. The finding of this paper suggest that government and NGO should give facility and accepting payment zakah in crypto, the capability of transfer is more transparent and cross the border of the country using blockchains technology. Give society more secure and trust in zakah organization in Indonesia. This research will assist the zakah administration in Indonesai to adopt technology in this regard.

Hamka and Quraish Shihab’s View on Zakah Manager

This study aims to analyze the view of Hajj Abdul Malik Karim Amrullah (Hamka) and Quraish Shihab on Zakah Manager study on QS. al-Taubah [9]: 60. This paper is qualitative using the documentation method in data collection. The research used qualitative based on document analysis of all instruments related to works of Hamka and Quraish Shihab on Zakah Manager. At the end of the research, the authors conclude that there are differences and similarities between Hamka's and Shihab's views on the zakah manager. They both have the same opinion regarding the meaning of zakah manager in the QS. al-Taubah [9]: 60. However, they have different opinions on the appointment of zakah manager, where Shihab proposes zakah manager to be appointed by the state in contrast, Hamka stated that zakah manager does not have to be appointed by the state, adjusting to the situation and conditions of the country. Likewise, they have different opinions in the event of misconduct of the zakah manager or if zakat funds are lost. They also differ in the right of the zakah manager in zakat funds. The results of this study contribute to enriching the discourse of zakah management, especially on the legal thought of Zakah Manager.

The role of blockchain technology in enhancing Islamic social finance: the case of Zakah management in Malaysia

PurposeThis study aims to explore the perceptions of zakah institutions and the intention of society towards the application of blockchain technology in zakah management.Design/methodology/approachThe nature of this study is qualitative, attempting to indulge into the contribution of Fintech in Islamic social finance. This study uses a mixed-method to gauge the perception of stakeholders. For the quantitative approach, a survey was carried out focussing on zakah receiver and zakah payer. The data then was analysed based on the technology acceptance model. While interview survey with multiple stakeholders (zakah institutions, JAWHAR and university) was conducted to gauge the perception of zakah institutions in using blockchain technology.FindingsThe findings of this study provide a positive view for zakah institutions to embrace the usage of blockchain in its management, however, there are several concern that needs to be addressed.Practical implicationsThis study provides new insights to the body of knowledge especially in the zakah management system and Fintech. Besides, from a managerial aspect, this study contributes to the new practices that could be implemented in zakah institutions.Social implicationsMany people lose jobs and income due to the economic turmoil and COVID-19 pandemic, which makes zakah an important Islamic social finance tool to assist in socio-economic development. It is high time for zakah institutions to implement blockchain especially during this pandemic crisis that requires a more contactless approach to ensure health and safety.Originality/valueThis study is important to encourage Islamic social finance institutions to embrace blockchain technology in providing an efficient service to the development of social and economic.

The Impact of Inflation on Zakah

AbstractPurpose - This paper aims to reveal how the impact of inflation on zakah can reduce the actual value of zakah collected, study the fiqh about zakah distribution, and apply zakah fund reserves funds not distributed entirely.Methodology - The method used is qualitative with the form of library research (library research). This paper concludes that inflation impacts zakah acceptance; that is, the amount of zakah collected is reduced. The management of zakah by the state in some of the scholars’ reviews turns out to have a more significant positive impact than if zakah is distributed individually by muzaki.Findings - The rule regarding zakah funds reserves, in distributing zakah during the time of the Prophet ﷺ is never to delay the distribution of zakah, the zakah received is then distributed to the asnaf, so that the nature of zakah distribution during the time of the Prophet ﷺ is immediately and distributed without remainder.Keywords: Inflation, Zakah, Zakah Funds Reserves.

Analysis Of Human Development With The Islamic Human Development Index (IHDI) In West Java Province In 2014-2018

This paper aims to reveal how the impact of inflation on zakah can reduce the actual value of zakah collected, study the fiqh about zakah distribution, and apply zakah fund reserves funds not distributed entirely. The method used is qualitative with the form of library research (library research). This paper concludes that inflation impacts zakah acceptance; the amount of zakah collected is reduced. The management of zakah by the state in some scholars’ reviews turns out to have a more significant positive impact than if zakah is distributed individually by muzaki. The rule regarding zakah funds reserves, in distributing zakah during the time of the Prophet ﷺ is never to delay the distribution of zakah, the zakah received is then distributed to the asnaf, so that the nature of zakah distribution during the time of the Prophet ﷺ is immediately and distributed without remainder.

Zakah and its Utilization as Working Capital for Micro, Small and Medium Enterprises

Zakah is an obligation that is directly mandated by Allah in the holy Quran. Zakah is assumed as a solution to overcome the poverty in Indonesia if it is well organized and well utilized. The focus of this study is how to empower zakah productively by distributing zakah fund in the form of working capital to mustahik. This study uses descriptive method that is decribing the condition or facts finding with proper interpretation. The result of the study shows that they are many zakah management agencies practice productive zakah model by distributing the working capital to mustahik so that they are able to change their social status to be muzakki. It can be concluded from this study that productive zakah by giving working capital for the micro, small and medium enterprises is an alternative way and effective effort which get them out of the poverty chain to be independent in economic matters.

Factors Influencing Proper Zakah Payment in Dighalia Upazila of Khulna District, Bangladesh

The research identifies factors influencing proper zakah paying behavior in Dighalia upazila of Khulna district of Bangladesh. Summary statistics shows that most zakah amounts are paid in cash and are paid in the month of Ramadan. None paid zakah through any institution rather paid personally to both relatives and non-relatives. A logistic regression was used to identify factors affecting proper zakah payment. Result shows that performers of hajj and chilla have 80 percent and 73 percent more likelihood respectively to be exact zakah payers than those who have not performed those. Regular readers of religious book have 54 percent higher probability to be exact zakah payers than other category. The study suggests taking step to increase awareness of zakah payers in order to reduce poverty and inequality. As many zakah payers are unorganized and pay in piecemeal meal to many people and in uncoordinated way, collective and coordinated approach zakah management can bring greater effect.

The Effect of Management And Utilization of Productive Zakat Towards Mustahiq Empowerment

This research aims to discover the influence of management of productive zakah on the mustahiq as the BAZNAS in south sumatra province as well as influence of utilization of productive zakah on the mustahiq empowerment. Data collection method used in this research utilized questionnaire in likert scale.Wherein all of 30 residents (population) are being used as sample (census technique). The F test, t test and the coefficient determinan (R 2 ) the show that management of productive zakah had a positive and significant impact on mustahiq empowerment in (BAZNAS) south sumatra province and utilization of productive zakah had a positive and significant impact on mustahiq empowerment as well.

Website and Social Media Usage for Internet Reporting (Case Study at Zakah Managament Organization)

Zakah Management Organization (ZMO) is demanded to improve its transparency and accountability including presenting financial and non-financial information by internet. This study aims to describe and compare the usage of website and social media to report many kinds of information by ZMO at state university in Indonesia. This is descriptive qualitative study. The research object is website and social media of Rumah Amal Salman, Rumah Amal Lazis UNNES and LAZIS UNS. Moreover, the data is collected by observation and documentation method. In addition, the data then analyzed by content analysis. Results show that those ZMO have utilized well both website and social media for internet reporting, especially non-financial information. Website is used to deliver organization profile, product information and other important information that can be useful for donor or muzakki. However, there are two ZMO that have not used website and social media to report their financial state. It is Rumah Amal Lazis UNNES which conducts internet financial reporting but limited to Fund Statement. Furthermore, Facebook and Instagram are considered as social media that mostly used by ZMO. Twitter has not been actively used. In addition, YouTube application has not been maximized. In summary, interaction to muzakki through social media needs to be improved by the ZMO.
 Keywords: internet reporting, website, social media, facebook, instagram, twitter, ZMO

Internationalization of Zakah Management for Poverty Alleviation among Muslims in the 21st Century

Zakah has been a national affair among Muslim countries such that each country manages its own collection and distribution. However, there has been an effort to internationalize zakah management since 2009 when the idea of the World Zakat Fund was suggested by the Malaysian government. This is an important innovation as the Prophet (PBUH) emphasized that Muslims all over the world are one and brothers to one another. Since the idea started in 2009, the subject of internationalization of zakah management is yet to receive adequate scholarly research attention. The present study fills this gap by discussing internationalization of zakah management and its advantages in poverty alleviation among Muslims. The study also gave other suggestions for improving zakah management in view of the complexity and extensive nature of poverty among Muslims in the 21st century.

Quantitative Economic Evaluation of Zakah-Poverty Nexus in Kano State, Nigeria

Nigeria is the largest economy in Africa and yet, a poverty-ridden oil-producing country. Thus, poverty remains a persistent macroeconomic challenge in Nigeria with devastating consequences, especially in the Muslim populated states like Kano. Surprisingly, Kano state, which is the most populated state in Nigeria with more than 15 million people, is one of the 14 most poverty-ridden states in Nigeria, despite the practice of Zakah institution (ZI). Therefore, this study empirically evaluates the revenue base and impacts of ZI on poverty alleviation in Kano state. Hence, 1,230 copies of questionnaires were administered and seven high profile Zakah payers were interviewed. Meanwhile, the data analysis was accomplished using descriptive statistics, correlation, and regression techniques, among others. The major findings indicate that the enormous revenue base of ZI for poverty alleviation exists, because of the significant Zakah payment by high ability Zakah payers. Similarly, ZI positively impacts on poverty alleviation. All in all, the findings lend credence to the Zakah-effectiveness hypothesis. Hence, this study recommends that Kano state government should exemplify more accountability and transparency in Zakah management. Moreover, a Ministry of Zakah and Hubusi Affairs should be established with the mandates of poverty alleviation and economic empowerment in the state.

The Potential of Application of Technology-Based Innovations for Zakat Administration in India

India is the home country for many Muslims and effective management of zakah is essential to the country. In this era of technology, it is imperative to use technology with zakat to ensure that the classical zakat administration approaches are upgraded to the uruf or customary practices of the society. The objective of this paper is to find out the potential of using technology in upgrading zakat administration in India. This is a qualitative approach where the primary sources such as zakat administration laws in India and secondary sources such as journal articles and published reports on the subject are analysed to derive conclusions. The findings of this paper suggest that the innovations such as rice ATMs, mobile applications, applications made with blockchain technology, artificial intelligence and big data can also play a vital role in the effective management of zakat in India. It is anticipated that the outcome of this research will assist the zakat administrators in India to adopt technology in this regard.
 
 Keywords: Artificial intelligence, big Data, fintech, rice ATM, zakat