Zakat Collection Research Articles

Mustahik Economic Empowerment through Optimizing Zakat Maal and Professional Zakat in South Tapanuli Regency

The purpose of this study is to obtain data on the economic empowerment of mustahik after they get zakat from the South Tapanuli Regency Baznas institution so that in the next stage they can be independent and have changed their status from mustahik to muzakki. The method used in this study is Participatory Action Research (PAR). The steps taken by researchers are; mapping of mustahik, grouping based on the needs and tendencies to do business, providing business capital and assistance so that Mustahik can run his business to succeed. The results found in this study are that the South Tapanuli district Baznas is conducting muzakki and mustahik data collection which is assisted by the Zakat Collection Unit (UPZ) which has been formed in fifteen sub-districts and in every village and or mosque in the region. South Tapanuli Regency Baznas has empowered several mustahik in several sub-districts and has collaborated with several agencies for the economic empowerment of the people even though it has not been maximized.
 Keywords: economic empowerment; mustahic economic; Zakat

Using E-Wallet in Collecting and Distributing Zakat in Malaysia

Fintech, or financial technology, seeks to supplement conventional financial techniques in the provision of financial services and improve financial operations through the use of technology. The development of fintech has had a significant positive impact on social activities in addition to financial services. The administration of zakat has advanced to a new level of innovation in zakat collecting and distribution through the use of e-Wallets as one of the fintech channels. This dynamism has helped to partially resolve a long-standing issue with the zakat administration related to openness, accountability, and efficiency in zakat collection and distribution. E-Wallets are thought to have the ability to address these problems. The purpose of the study was to examine the available choices and the most common kind of e-Wallet related to zakat activities that are currently accessible on the market. Therefore, it is necessary to provide answers to queries such as the selections of e-Wallet that are accessible in the present market. It is interesting to examine which e-Wallet is preferable and whether these prominent e-wallet providers provide zakat payment services. The current study applied the qualitative methodology through content and descriptive analyses of articles, official documents, business papers from the commercial sector, and social media inputs. It is believed that this study would shed some new light on the role that e-Wallet providers play in collecting and distributing zakat and will add a new level of information to the public, particularly regarding e-Wallet collaboration with the Zakat institutions.

Zakat: changing the framework of giving

PurposeThis paper aims to show that zakat solves the collective action problem by changing the framework of giving. An additional purpose of this paper is an attempt to fill a critical gap in the Islamic economics literature. This gap concerns the nature and role of zakat in effectively delivering aid to those in need while mitigating the potential for free riding. There is also a general gap in the current literature on Islamic economics that the issues of zakat and charity have not received the same attention as the focus remained mostly on money, banking and the issues of interest and usury. The paper is also an attempt to provide a refocus.Design/methodology/approachThis paper attempts to build an argument to show how zakat can function as a unique solution to the free-rider problem in voluntary charity. The author’s argument is based on a precise theoretical framework, namely the “free-rider problem,” and how zakat can function as a unique solution to this problem. The author also uses game theory to show how reputation can lead to cooperation in a repeated game. The author uses an example from Pakistan to show how reputation can be a disciplinarian of zakat collection organizations.FindingsZakat solves both the free-rider problem in ordinary charity and the coordination problem between members in a large group. The free-rider problem is solved by changing the very framework of giving and the coordination problem between Muslims around the globe disappears because the rates and details of levying zakat are centrally created based on divine revelation.Originality/valueThis paper presents an important topic as it addresses one of the most popular giving practices in Muslim societies, called zakat. It also provides a framework in examining the meaning and function of zakat in Muslim societies.

Zakat Management in Countries that Require Zakat and Countries That Do Not Require Zakat

Zakat is an obligation for every individual who is Muslim, zakat is imposed when it has reached the nisab and haul, in this paper the author conveys that there are several countries in the world that impose mandatory zakat in these countries and countries that do not require zakat for their citizens who are Muslim but leave it to the Muslims themselves. The author uses a descriptive research method in the form of library research (library research). The results of the study show that in the management of zakat there are countries that intervene directly in the collection and distribution of zakat in these countries, including Saudi Arabia, Jordan, Pakistan, Sudan, Malaysia and Brunei, there are also countries that do not intervene but these countries provide space for their citizens to conducting zakat collection activities, these countries include Egypt, Kuwait, Turkey, and Indonesia. In line with this, the zakat management model carried out by each country depends on the conditions and political situation of the country so that various patterns of zakat collection are born. in real terms, if the management of zakat is properly accommodated, it will become a new economic power in a country and this will of course help the country in improving the standard of living of its people because life is mutually supportive and mutual cooperation in the zakat management system

Peran Lembaga Amil Zakat Griya Yatim dan Dhuafa dalam Meningkatkan Muzakki di Jebres

Lembaga Amil Zakat (LAZ) is an institution established by the government and the private sector to manage zakat, starting from collecting zakat to distributing it to people who are entitled to receive zakat or mustahiq. The existence of this institution in fact provides convenience for muzakki in distributing their zakat worship. In the economic and social context, the activities carried out by LAZ are considered capable of assisting the government in overcoming the problem of poverty that occurs. This research was conducted at one of the zakat institutions in Surakarta, namely LAZ Griya Yatim and Dhuafa (GYD) which is active in helping the collection and distribution of zakat in the city. LAZ GYD also has various ways to collect zakat which makes it easier for muzakki to pay zakat. Not only that, LAZ GYD also has various programs for zakat distribution so that it is targeted and effective with priorities on education, economy and social. It is interesting to study the efforts made by LAZ GYD in more depth to see the institution's efforts to increase the number of muzakki, especially in Jebres District, Surakarta. The results show that LAZ GYD conducts outreach activities in collecting zakat personally or using communication media. In addition to providing information, outreach also plays a role in raising awareness and providing education to the wider community. In addition, socialization plays an important role in inviting and raising the awareness of prospective muzakki to tithe through the LAZ GYD programs. Then to increase muzakki's trust, LAZ GYD implements accountable and transparent management. This is also used as an effort to attract prospective muzakki to tithe through the Griya Yatim and Dhuafa Amil Zakat Institution (LAZ GYD).

Peran Lembaga Amil Zakat Griya Yatim dan Dhuafa dalam Meningkatkan Muzakki di Jebres

Lembaga Amil Zakat (LAZ) is an institution established by the government and the private sector to manage zakat, starting from collecting zakat to distributing it to people who are entitled to receive zakat or mustahiq. The existence of this institution in fact provides convenience for muzakki in distributing their zakat worship. In the economic and social context, the activities carried out by LAZ are considered capable of assisting the government in overcoming the problem of poverty that occurs. This research was conducted at one of the zakat institutions in Surakarta, namely LAZ Griya Yatim and Dhuafa (GYD) which is active in helping the collection and distribution of zakat in the city. LAZ GYD also has various ways to collect zakat which makes it easier for muzakki to pay zakat. Not only that, LAZ GYD also has various programs for zakat distribution so that it is targeted and effective with priorities on education, economy and social. It is interesting to study the efforts made by LAZ GYD in more depth to see the institution's efforts to increase the number of muzakki, especially in Jebres District, Surakarta. The results show that LAZ GYD conducts outreach activities in collecting zakat personally or using communication media. In addition to providing information, outreach also plays a role in raising awareness and providing education to the wider community. In addition, socialization plays an important role in inviting and raising the awareness of prospective muzakki to tithe through the LAZ GYD programs. Then to increase muzakki's trust, LAZ GYD implements accountable and transparent management. This is also used as an effort to attract prospective muzakki to tithe through the Griya Yatim and Dhuafa Amil Zakat Institution (LAZ GYD).

The Impact of Zakat Funds' Raising, Distribution, And Use On Mustahiq Welfare (Case Study BAZNAS Lumajang Regency)

Islam is a true religion in which all facets of daily life are governed by it. Islam rules its people in many ways, and sharia is one of its main tenets. Islam therefore pays attention to economic issues because they can either make people more rich or more wretched. In order to attain the necessary sustainability, Islamic economics also needs respect for each person's rights as well as the rights of society at large. Zakat management, which is governed in Indonesia by Law Number 23 of 2011 concerning the management of zakat, is one of the methods currently used in Islamic economics to achieve the desired sustainability. According to this law, zakat management is the planning, implementation, and coordination of the collection, distribution, and use of zakat. The Amil Zakat Agency (BAZ) and the Amil Zakat Institution are the two different types of zakat administration entities in Indonesia, according to Law No. 23 of 2011. (LAZ). By examining meaningful or unmeaningful statics, this quantitative study seeks to determine if the theory that has been in force up to this point is true or untrue. Explanatory research, also known as research that explains relationships between variables in a study and tests hypotheses developed in light of theoretical studies. From the results of the analysis it was found thatvariableX_1there is a significant effect of collecting zakat funds on mustahiq welfare, namely with a significant value of 0.00 <0.05,variable X_2 there is a significant influence between the distribution of zakat funds on the welfare of mustahiq with a value of 0.03 <0.05,variableX_3 there is a significant influence between the utilization of zakat funds on the welfare of mustahiq with a significant value of 0.00 <0.05. Mean while simultaneously variable collection (fundraising), distribution, and utilization of zakat funds have a simultaneous effect on the welfare of mustahiq with a significant value of 0.00<0.05 And〖 F〗_(hitung )(18.8480)> F_tabel(2.69) so〖 H〗_aaccepted.

Sistem Pengelolaan Zakat Yayasan Yatim Mandiri Cirebon

Every Muslim recognizes that zakat is one of the pillars of the establishment of Islam that must be fulfilled, the point of zakat is the third pillar of Islam. The management of zakat is carried out by the zakat amil body formed by the government which is organized in the form of an agency or institution. The collection of zakat is carried out by the amil zakat body by receiving or taking from muzakki on the basis of notification from muzakki. The 1999 Zakat Management Law was deemed unable to accommodate the dynamics of society and the state in managing Zakat, hence the 2011 Zakat Management Law was born. This law created controversy among zakat managers, because this law was seen as turning off the role of the community in managing zakat, and trying to centralize the management of zakat. Zakat in the hands of the National Zakat Amil Agency (BAZNAS). This paper aims to examine the management of zakat carried out by the Cirebon Yatim Mandiri Foundation, and how it is collected and distributed by the Cirebon Yatim Mandiri Foundation. The research method used in this paper is field research with a qualitative descriptive approach. The primary data of the study were collected through field observations and interviews with the Cirebon Yatim Mandiri .

Evaluation of Fundraising Mechanisms in the Zakat Collection Unit (UPZ) of the Ministry of Religious Affairs Office in Demak Regency)

Zakat Collection Unit (UPZ) of the Ministry of Religious Affairs in Demak Regency is among the zakat management institutions certified by BAZNAS in Demak Regency, established in 2013. This study was conducted at the UPZ of the Ministry of Religious Affairsin Demak, focusing on the role of the zakat collector as the trustee responsible for managing funds. If the zakat collector fulfills their role effectively, it can lead to increased welfare for the other seven categories of zakat recipients. UPZ Ministry of Religious Affairs in Demak Regency relies solely on funds from muzakki as it lacks permanent donors. Fundraising activities aim to sustain social institutions or organizations by supporting their operational programs. Various fundraising methods are employed by institutions, each with its own strengths and weaknesses. The objectives of this research are twofold: (1) to analyze fundraising methods in the Zakat Collection Unit of the Ministry of Religion in Demak Regency, and (2) to evaluate the effectiveness of fundraising mechanisms in the same unit. The qualitative method was employed for this research, with data collected through triangulation techniques including interviews, observation, and documentation to ensure data validity. Data analysis followed the Miles and Huberman approach, involving data reduction, display, and drawing conclusions. Zakat Collection Unit (UPZ) of the Ministry of Religious Affairs in Demak Regency predominantly employs the indirect fundraising method for collecting zakat funds, avoiding direct contact with muzakki. However, with the advancement of digital technology, there is increasing potential for digital fundraising. UPZ Ministry of Religious Affairs Demak Regency conducts evaluations every semester during internal meetings, followed by the preparation of accountability reports for each program. These reports are then evaluated by advisors appointed by UPZ Ministry of Religious Affairs Demak, identifying program deficiencies and areas for improvement. Despite being conducted biannually, UPZ's evaluation approach encompasses input, process, and output, ensuring effective assessment of its activities and objectives

Legal Burden of Obligation to Pay Tax on Business Results in the Zakat Concept

This research is the understanding of the people who are aware of the law in paying zakat from the business. The focus of this research is how the understanding of the law-conscious community in paying zakat from business results. Furthermore, this type of research is field research (direct research on objects or subjects in the field to obtain data). The results of this study are to examine people's understanding of paying zakat from the business. Zakat is worship in the field of property, which relates to people who give zakat ( muzakki ), recipients ( mustahik ), assets issued by zakat, and society as a whole. Islam has a concept of zakat which is a concern for the weak. Zakat is paid by a muzakki given to the mustahik. In this study, it appears that the understanding of people of Lengayang District only understands the zakat fitrah that they pay during the fasting month. For the measure of payment, they only estimate it. In the efforts that must be made so that people's understanding of the obligation of zakat can be achieved through coaching muzakki and mustahiq, of course, there is good cooperation between all parties involved, namely the community itself, the Zakat Collection Unit, village officials, religious scholars, and religious extension workers are no exception.

Strategi Pengumpulan Zakat Profesi Pasca Pandemi: Tinjauan Manajemen Syariah

This study aims to analyze the post-covid-19 professional zakat collection strategy from the perspective of sharia management. The research method used a descriptive qualitative approach to obtain overall information, with data collection methods used are observation, interviews, and documentation. The triangulation technique was used to ensure the validity of the research, obtained from informants and concluded by member check. The results of the study show that (1) BAZNAS Kediri City carried out various strategies in collecting professional zakat during the post-pandemic period, namely collaboration with other zakat institutions to deal with the Covid-19 outbreak, csllaboration with the Indonesian Mosque Council to disseminate zakat obligations, distribute brochures and banners and the use of social media as a means of socialization. (2) BAZNAS of Kediri City in implementing the professional zakat collection strategy is in accordance with the principles of sharia management in the functions of planning, implementing and controlling, while the organizing is not fully appropriate because the organizational structure has not been implemented optimally.

Pemahaman Masyarakat Sadar Hukum Membayar Zakat Hasil Usaha

which is a concern for the weak. Zakat is paid by a muzakki given to the mustahik. In this study, it appears that the understanding of people of Lengayang District only understands the zakat fitrah that they pay during the fasting month. For the measure of payment, they only estimate it. In the efforts that must be made so that people's understanding of the obligation of zakat can be achieved through coaching muzakki and mustahiq, of course, there is good cooperation between all parties involved, namely the community itself, the Zakat Collection Unit, village officials, religious scholars, and religious extension workers are no exception. Islam. The implementation of zakat in Lengayang District is marked by the presence of supporting and inhibiting factors as well as efforts to build public awareness of paying zakat. This is inseparable from the role of the Lengayang District Office of Religious Affairs under the auspices of the Ministry of Religion as Amil Zakat Trustees who have carried out program development by establishing a zakat consulting institution in order to increase awareness of zakat for the community.
 Keywords: Understanding, Legal Awareness, Zakat Results of Business.

Zakat administration reformation towards an effective and efficient zakat revenue generation

PurposeThis study aims to identify the inputs from zakat administrators and experts needed for more efficient and effective zakat revenue generation.Design/methodology/approachFace-to-face interviews with zakat executives, administrators and experts are conducted to collect data.FindingsThe findings show three components of input required in the zakat transformation: environment, resources and history. The environmental component comprises five sub-components: companies, banks, zakat recipients, individual zakat payers and the legislative, while the resource sub-components comprise tangible and intangible resources. For history, two components, namely, achievements and challenges, need to be taken into account by the zakat administration.Research limitations/implicationsThis study’s main implication is that the components proposed in this study can serve as the basis for developing new strategies for improving zakat collection and distribution management to achieve a more efficient and effective level.Practical implicationsThis study will be helpful for policymakers, especially zakat authorities, on how to enhance their administration.Originality/valueThe model developed in this study will help the zakat administration to reform and enhance zakat compliance and zakat revenue generation.

The Use Of Zakat Logo In Optimizing The Collection Of Corporate Zakat In The State Of Kedah

All approaches to increase corporate zakat collection must be intensified by zakat institutions and supported by corporate company owners so that the annual corporate zakat collection target is achieved despite the challenges that zakat institutions have to go through. Various initiatives have been implemented by zakat institutions such as LZNK by introducing innovative corporate zakat collection promotion methods through the use of zakat logos for corporate companies in the state of Kedah. This effort not only demands the duty of the amil to collect corporate zakat from corporate companies, but it is also a human need for the property to guarantee the blessing of corporate companies in their business when paying Zakat. Thus, this article aims to discuss the concept of using the zakat logo in Kedah. This article will also examine the procedures for obtaining the zakat logo by corporate companies in Kedah. This qualitative study uses documentation, observation, and interview methods in the data collection process. The results of the study found that the use of the zakat logo on corporate companies can increase corporate zakat collection in addition to achieving the objective of zakat shari'a through property care in the aspect of maqasid shari’a. The study also found that only corporate companies that meet the specified conditions are eligible to get a zakat logo from the LZNK such as Muslims, zakat payers at LZNK according to the actual count, and others. It is hoped that this study can provide guidance and references to zakat institutions or certain organizations in managing affairs related to corporate zakat collection in facing the challenges of corporate zakat collection in Malaysia. Further research needs to be done to encourage the use of the zakat logo so that it can be applied by all states in Malaysia so that the corporate zakat collection rate can be optimized from time to time.

Analisis Efisiensi pada Lembaga Amil Zakat Nasional dengan Pertumbuhan Penghimpunan Zakat Terbaik

Purpose: This study analyzes the efficiency of one of the National Amil Zakat Institutions in Indonesia which is the zakat institution with the best zakat collection growth, namely Laznas PPPA Darul Qur'an Foundation. The purpose of this research is to assess the performance of a zakat institution in carrying out its role as a zakat manager. Method: The type of research used is quantitative with a non-parametric approach. The research method in this study is the Data Envelopment Analysis (DEA) method. Results: Based on the results of data processing in 2017-2020 Laznas PPPA Daarul Qur'an financial reports, these findings indicate that Laznas PPPA Daarul Qur'an experienced inefficiency in 2017 and 2018 with an inefficiency level of 95,63% in 2017 and there was an efficiency improvement with a score of 98.95% in 2018. Until finally in 2019 and 2020 Laznas PPPA Daarul Qur'an is at the optimal efficiency value of 100%. Implication: The existence of this research is expected to provide an overview to the community, as well as a reference for other zakat management organizations in assessing the performance of a zakat institution.Novelty: The previously inefficient conditions continue to be addressed by making various efforts through programs to maximize the management of zakat.

Studi Kualitatif Penggunaan QRIS (Quick Respond Indonesian Standard) dalam Pemungutan ZIS (Zakat, Infaq, dan Shadaqah)

Research has been carried out on the use of the Indonesian Quick Response Code system as a means to facilitate the collection of zakat, infaq, and alms activities at several mosques in the city of Padang. This study uses a qualitative research method with a descriptive approach. The object of this research is the Indonesian Quick Response Code payment system, while the research subject is the welfare board or mosque general treasurer who plays an important role in implementing the Indonesian Quick Response Code payment system. The methods used in data collection are the interview method and the documentation method. Based on research data, the effectiveness of the basis for using the Indonesian Quick Response Code in collecting zakat, infaq, and alms is assessed based on the application of stakeholder theory and management theory. On the other hand, the obstacles found in this study are that some mosque worshipers do not understand and are accustomed to following technological developments so that pilgrims are more comfortable using the infaq box compared to the Indonesian Quick Response Code system. The limitations of this study are that the research sample is only 5 mosques in the city of Padang, so that further research is expected to be able to take a larger sample.

Fundraising Strategy In Increasing Zis Fund Acceptance At Amil Institutions (Lazwashal)

Basically related to the explanation that the concept of fundraising is very important to efforts to improve the management of the fund ZIS (Zakat,Infaq, and Sodaqoh) as well As the management of the fund waqof. Not only itusaja the process of Fundraising can also be defined as the process of collecting funds or fund raising. Which in this case can be used to finance the program operations of an institution that ultimately aims to achieve the mission and vision of the institution. In this case it is necessary needed a strategy or direction of an approach in the process of raising funds in order to obtain the maximum results possible. Fundraising is related to the ability of individuals, organizations, and institutions of law where for invites and used effects other people, which can cause awareness of the sera sense of concern that exist in each. Can also be used to manage the fund waqof on the concept of fundraising this. There are several strategies fundraising that need to be considered, among others : analyzing opportunities, strategize fundraising, plan a program of collecting, organizing, implementing, controlling the efforts of the collection of zakat. Things like this berpengruh great on the course of zakat in every Institution including LAZWASHAL

Strategy for Zakat Collection and Distribution in the Sembako Distribution Program at The Covid-19 Pandemic Time at the National Amil Zakat Agency (BAZNAS) South Sumatra Province

This thesis discusses the strategy for the collection and distribution of zakat programs in distributing The Basic Food during the Covid-19 pandemic at the National Amil Zakat Agency (BAZNAS) of South Sumatra Province. This study aims to determine the strategy program for the collection and distribution of zakat programs in distributing The Basic Food during the Covid-19 pandemic at the National Amil Zakat Agency (BAZNAS) of South Sumatra Province. This research used a descriptive qualitative method. Data collection techniques used the method of observation, interviews, and documentation. Meanwhile, the data analysis technique used data reduction, data presentation, and conclusion drawing. The results of the research conducted indicated that (1) the collection strategies carried out by BAZNAS of South Sumatra Province were: socialization, collecting UPZ (Zakat Collection Unit), digital fundraising, and collaborating with banks. (2) The distribution of zakat in the food distribution program during the covid-19 pandemic at the National Zakat Amil Agency (BAZNAS) of South Sumatra Province, through the Smart Sumsel, Care Sumsel, Healthy Sumsel, Taqwa Sumsel, Prosperous Sumsel programs. (3) The food distribution program during the covid-19 pandemic at the National Zakat Amil Agency (BAZNAS) of South Sumatra Province followed the covid-19 handling protocol. Therefore, the distribution of The Basic Food was carried out without violating the covid-19 pandemic handling protocol. ***Penelitian ini membahas strategi penghimpunan dan penyaluran zakat dalam Program Sebar Sembako Pada Masa Pandemi Covid-19 di Badan Amil Zakat Nasional (BAZNAS) Provinsi Sumatera Selatan. Penelitian bertujuan untuk mengetahui Strategi Penghimpunan dan Penyaluran Zakat Dalam Program Sebar Sembako Pada Masa Pandemi Covid-19 di Badan Amil Zakat Nasional (BAZNAS) Provinsi Sumatera Selatan. Metode penelitian ini dengan menggunakan metode kualitatif deskriptif. Teknik pengumpulan data menggunakan metode observasi, wawancara dan dokumentasi. Sedangkan teknik analisis data menggunakan reduksi data, penyajian data, penarikan kesimpulan. Hasil penelitian yang dilakukan menunjukkan bahwa (1) Strategi penghimpunan yang di lakukan BAZNAS Provinsi Sumatera Selatan yaitu: sosialisasi, mengumpulkan UPZ (Unit Pengumpulan Zakat), fundraising digital, dan bekerja sama dengan bank. (2) Penyaluran zakat dalam program sebar sembako pada masa pandemi covid-19 di Badan Amil Zakat Nasional (BAZNAS) Provinsi Sumatera Selatan yaitu melalui program sumsel cerdas, sumsel peduli, sumsel sehat, sumsel taqwa, sumsel makmur. (3) Program sebar sembako pada masa pandemi covid-19 di Badan Amil Zakat Nasional (BAZNAS) Provinsi Sumatera Selatan yaitu mengikuti protokol penanganan covid-19, oleh karena itu pembagian paket sembako dilakukan dengan tidak melanggar protokol penanganan pandemi covid-19.Keywords: Collection Strategy, Distribution Strategy, Food Distribution Program.

The development and application of the zakat collection blockchain system

Zakat in Islam has historically been a vital institution in fulfilling religious needs and social welfare. Its effectiveness in medieval and modern Islam is evident. However, this institution is seemingly not without inefficiencies. Ineffectiveness distribution process and lack of transparency in the zakat management are commonly cited as key impediments (bin Khatiman et al., 2021). Blockchain is expected to solve these issues due to its ability to record and trace every transaction, allowing administrators to discharge their accountability to zakat stakeholders. Thus, this study intended to develop a zakat collection blockchain system with the aim to provide economical and integrated continuous real-time zakat transactions, transparency and traceability by developing smart contracts in zakat management. The study employed four stages of process based on waterfall model starting from the interview session and analyse of the standard operating procedure (SOP) on zakat collection in the Zakat Collection Centre or Pusat Pungutan Zakat-Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP). Then, design requirement specification (DRS) is employed after being reviewed and approved by PPZ-MAIWP. The results show that the development of blockchain in the zakat collection system could be eradicating extreme poverty and boost shared prosperity among the community in the country. The study contributes through a transparent and reliable environment for exchanging data and carrying out transactions through a decentralized digital ledger technology to record anything of value and as a result able to ensure transparency, reliability, trust ability and traceability of the zakat transactions.

Efficiency of zakat institutions: Evidence from an emerging economy

Efficiency is essential for an institution because it can measure how well resources are used to achieve its specific goals (Wahab & Rahman, 2011). Zakat institutions must be managed efficiently, so they are maximized in promoting socio-economic goals, especially poverty alleviation (Wahab & Rahman, 2013). This study aims to analyze the efficiency level of Baitul Mal districts/cities of Aceh Province in Indonesia. Efficiency measurement uses a nonparametric data envelopment analysis (DEA) approach during 2018–2020. DEA analyzes the interaction between input variables consisting of socialization costs, number of amil, and operational costs, with output variables comprising the total collection and distribution of zakat, infaq, and sadaqah (ZIS). The results show that 11 Baitul Mal out of 69 decision-making unit (DMU) (15.94%) are efficient overall, technical, and scale. As for technical efficiency, there are 16 Baitul Mal (23.19%) that are efficient, the remaining 26 Baitul Mal (40.58%) have a score below 60, and 27 Baitul Mal (36.23%) have a score above 60. Regency Baitul Mal Aceh Besar became the only Baitul Mal that achieved efficiency throughout the research period. The source of Baitul Mal’s inefficiency comes from all variables. Baitul Mal must optimize socialization costs by 60.68%, operational costs by 33.60%, and the role of amil by 3.20%. Furthermore, Baitul Mal must increase the amount of ZIS collection by 46.29% and the distribution of ZIS by 52.84% to achieve efficiency.