Zakat Management Institutions Research Articles

Social media, trust and intention to pay zakat through institution: lessons from Indonesian experience

Purpose This study aims to elaborate on the antecedents of muzakki (zakat payers) paying zakat (Islamic philanthropy) through institutions with social media arrangements, while the drivers of social media engagement are used in the conceptual model with trust and intention. Design/methodology/approach Overall, the final sample of 230 respondents was obtained through the database of official zakat management institutions. Regarding analytical tools, this study combines the partial least square structural equation modelling and necessary condition analysis approaches to explore research findings. Findings The findings show that firm-generated information and trust play an important role directly and indirectly. At the same time, other constructions, such as social factors and user-based factors, provide variations in necessary conditions to increase the muzakki’s intention to channel their zakat through institutions. Practical implications Zakat institutions must focus on improving social media-based services by integrating important information, such as credibility and transparency, with muzakki’s preferences. Additionally, zakat information on social media must be attractively packaged and contain facilities that muzakki can use in communicating, such as; their opinions, suggestions and input. The findings, in general, underscore the attachment between muzakki and zakat institutions through social media, which can significantly impact the positive environment of zakat institutions. Originality/value To the author’s knowledge, this study is pioneering in conceptualizing and testing a theoretical model linking drivers of social media engagement, trust and intention to pay zakat through the institution, particularly in the levels of necessity.

Strategi Pengelolaan Zakat Pada Badan Amil Zakat Nasional (Baznas) Kota Pontianak

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.

The Standard for Allocating Zakat Social Funds as An Operational Expense of Nonprofit Organizations in Indonesia, Sudan and Algeria

Zakat in the socio-economic structure of society needs to be managed productively and professionally so that it leads the welfare of society. This study aims to reveal standards for the allocation of zakat social funds as an operational expense for nonprofit organizations. This research uses a descriptive qualitative type. We analyse secondary data retrieved in nonprofit organizations in three different countries (Indonesia, Sudan and Algeria). The result of the study revealed that Indonesia has two types of zakat management institutions, the National Amil Zakat Agency (BAZNAS) and Amil Zakat Institute (LAZ). Furthermore, Sudan possesses the Sudanese Zakah Chamber (SZC) or the Zakat Council and Algeria has Kotak Zakat. The pattern of zakat collection in Indonesia applies payments with a voluntary principle, however the zakat has been integrated with taxes so that they can submit claims for zakat payments. In Sudan, payments are made on the principle of mandatory for its citizens accompanied by sanctions for those who ignore it and nonmuslims are obliged to pay a social solidarity tax. Meanwhile, in Algeria, payments are made on a mandatory basis for private companies and voluntary for individuals. In addition, in the pattern of zakat distribution, the three countries distribute according to the guidance of the Qur'an (8 Asnaf) but have slight differences in the priority scale in which Indonesia prioritizes distribution to the poor, Sudan prioritizes the needs of each Mustahik and Muzakki is allowed to distribute to relatives as much as 20% of the obligatory zakat, meanwhile Algeria which prioritizes the poor, people in need and Fisabilillah. Then, the standard for the allocation of zakat social funds that may be taken as operational costs for nonprofit organizations handling zakat in the three countries is 12.5%.

Efficiency and Productivity Performance of Dompet Dhuafa based on the Type of Fund for 2010-2019

The Islamic social finance industry in Indonesia is one of the industries that is growing very rapidly every year. This can be seen from the growth in the number of zakat management institutions that continue to increase, both those formed by the government and those formed by the community. The rapid development of the number of zakat management institutions raises the level of competition between zakat institutions getting stronger. To be able to compete in this industry, Dompet Dhuafa as one of the zakat management institutions must be able to compete with other zakat management institutions by improving performance optimally. The purpose of this study is to analyze the level of performance efficiency and productivity of Dompet Dhuafa for the 2010-2019 period based on the type of funds it manages. The methods used in this research are Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI) methods. The estimation results show that Dompet Dhuafa has not achieved an optimal level of performance efficiency and relatively low productivity. This can be seen from the average efficiency score from 2010-2019 which only reached 0.66 and the average productivity level of Dompet Dhuafa reached 0.958.

Muzakki Preference Analysis to Pay Zakat Through Traditional Zakat Institutions in the 5.0 Era

Based on BAZNAS data, the collection of zakat funds in 2019 reached Rp. 10,227,943,806,555. This amount is still not comparable to Indonesia’s zakat potential in 2019 which reached Rp. 233.8 trillion. The wide disparity between collection and the potential for zakat funds is a “homework” for the BAZNAS function. In addition, it also demands the need to improve the performance of BAZNAS in carrying out its institutional functional responsibilities. The method used in this research is qualitative. The research used in this includes field research. The study suggests that traditional zakat institutions could be a viable option for the community to distribute zakat. However, these institutions need to obtain a decision letter from the authorities as legal proof for collecting and distributing zakat to muzakki. So, if the community chooses to distribute their zakat to mosques, it is recommended that the mosque has been registered as UPZ as an extension of BAZNAS in the community so that in paying zakat the community does not violate existing regulations. Regulating the people is one of the maslahah dharuri that must be fulfilled. The government is realized to fulfill the world’s maslahah for its people, so the afterlife mashlahah will not be realized if the world’s maslahah is not fulfilled, with the promulgation of Law No. 23 of 2011 concerning zakat management, which in the law is regulated by BAZNAS as a traditional zakat management institution. So, the obligation of every Muslim to pay zakat should be channelled through BAZNAS as the national zakat institution.
 Keywords: zakat, BAZNAS, regulations

Innovative Approaches to Managing Zakat within the Context of Sustainable Development and Societal Well-Being in Indonesia

The objective of this research is to investigate and assess innovative approaches to managing Zakat within the context of sustainable development and societal well-being in Indonesia. Given the multifaceted challenges confronting Indonesian society, Zakat holds tremendous potential as a tool for fostering sustainable development and enhancing social welfare. This research employs a literature review to examine pioneering practices in Zakat management within Indonesia. Information gathered from diverse sources, including research papers, scholarly publications, and case studies, will be utilized to analyze various successful models of Zakat management implemented in the country. The findings of this study aim to shed light on effective innovations in Zakat management that contribute to achieving sustainable development and augmenting social welfare in Indonesia. Moreover, the research will identify critical factors that facilitate the successful implementation of innovative Zakat management strategies, while also evaluating the resulting social and economic ramifications. It is anticipated that the outcomes of this study will furnish pertinent policy recommendations for the government, Zakat management institutions, and the general populace, aimed at enhancing the efficacy of Zakat management for sustainable development and the advancement of social welfare in Indonesia. Furthermore, this research endeavor seeks to foster a deeper comprehension of Zakat’s potential as a substantial funding source to fortify key sectors in propelling inclusive economic growth and fostering social equity within Indonesia.

Improving Indonesian Named Entity Recognition for Domain Zakat Using Conditional Random Fields

In Indonesia, where the majority of the population is Muslim, one of the obligations of a Muslim is zakat. To reduce illiteracy about zakat among Muslims, they need to have access to basic information about it. In order to facilitate the acquisition of this information, this study utilized named entity recognition (NER) and defined 12 named entity classes for the zakat domain, including the pillars of Islam, various types of zakat, and zakat management institutions. The Conditional Random Fields method was used for testing Indonesian-NER in three scenarios. In the specific context of the Zakat domain, NER can extract information about organizations, individuals, and locations involved in collecting and distributing Zakat funds. This information can improve the Zakat system’s efficiency and transparency and support research and analysis on Zakat-related topics. The average performance evaluation of the Indonesian-NER model showed a precision of 0.902, recall of 0.834, and an F1-score of 0.867.

Sharia governance and organizational performance in zakat management organization: evidence from Indonesia

Purpose This paper aims to investigate the impact of sharia governance on organizational performance in zakat management institutions in Indonesia over the period 2017–2021. Design/methodology/approach This study examined 33 zakat management organizations in Indonesia from 2017 through 2021 for 151 observations. Gross allocation ratio and growth of ZIS collection are used as organizational performance measures. The independent variables in this study are board of director size, educational background of the board of directors, sharia supervisory board size, sharia supervisory expertise, supervisory size and management size. Also, the study uses size, age and audit opinion as control variables to help measure the relationship between sharia governance and organizational performance. Findings This study shows that the board of directors and supervisory size positively and significantly affect organizational performance. Then, the educational background of board of directors has a negative and significant effect on organizational performance. In Model 1, sharia supervisory board size has a positive and significant effect on organizational performance, but in Model 2, sharia supervisory board size does not. Meanwhile, sharia supervisory expertise and management board size do not affect organizational performance. Practical implications The findings in this study illustrate the importance of transparency in the zakat management organization. Transparency helps minimize conflicts of interest and information asymmetry in the zakat management organization. In addition, sharia governance mechanism helps regulators and top management to make effective policies to improve and enhance organizational performance. Social implications Sharia governance is essential for zakat management organizations to increase accountability, credibility and public trust and support the practice of zakat management organizations. Originality/value This study discusses sharia governance and organizational performance in socioreligious organizations, especially zakat management organizations, which are still rarely carried out. Thus, this study broadens the insights of sharia governance and highlights the importance of performance appraisal in zakat management organizations.

Counseling of Zakat Management in Daarul Ilmi Islamic Boarding School Cipeundeuy

The zakat management system according to Law (UU) Number 23 of 2011 is categorized into two, the first is an institution created by the Government, namely the National Amil Zakat Agency (BAZNAS) and the second is an institution built on the initiative of the community or association, namely the Amil Zakat Institution (Lembaga Amil Zakat) LAZ. The zakat law stipulates that LAZ which is formed at the initiative of the community by assisting the collection of zakat, its distribution, utilization, and formation must obtain permission from the minister or an official appointed by the minister. Article 38 of the Zakat Law emphasizes that the management of zakat by the community must go through a mechanism that has been regulated, so it is not permissible to establish an Amil Zakat body without the permission of the authorized party (government). The Daarul Ilmi Integrated Islamic Boarding School as one of the foundations located in Cipeundeuy, West Bandung Regency has a zakat empowerment program that has been implemented for 5 consecutive years. This service aims to see whether this institution is in accordance with the Sharia and zakat laws in its management or not. In principle, the management of zakat is in accordance with Sharia rules, but there are still shortcomings in the licensing aspect, namely, this institution has not registered as a LAZ. Extension activities and assistance to human resources (HR) in Islamic boarding schools are very necessary to achieve the desired goal, namely, the legality of the Zakat Management Institution. It is hoped that after obtaining legality, the management of zakat, infaq, and alms can be developed and gain the trust of the wider community, so that the benefits of zakat can be felt by people in need, especially for students and the community around Islamic boarding schools.
 Keywords: legality, zakat management, Islamic boarding school

How do muzakki pay professional zakat? (the qualitative inquiries using the Bloom model)

PurposePrevious studies described the professional zakat had been limited. Generally, the past authors conducted a quantitative method with general results and did not focus on the behaviour of people who pay the professional zakat. As a result, the purpose of this study is to provide a comprehensive understanding of how the general public can pay their zakat using Bloom’s theory.Design/methodology/approachThis research uses primary data with in-depth interviews from five informants, including civil servants (PNS) and private employees. Spiral analysis was used to analyse the data, arrange it, read it frequently, take brief notes, find categories, interpret and summarise it.FindingsThe results show Bloom’s theory can accommodate muzakki’s behaviour by paying professional zakat. It can be seen from the following conclusions: firstly, in the cognitive domain, muzakki’s behaviour of paying the professional zakat was motivated by their memories (experiences), the ability to interpret, the ability to understand the principles of zakat, the ability to understand the relations and the ability to understand the role of zakat from its norms. Secondly, in the affective domain, muzakki’s behaviour in paying the professional zakat was motivated by their ability to receive, give positive value, call others and dare to take risks. Thirdly, in the psychomotor domain, guided practice, mechanised practice and adoption drive muzakki’s behaviour of paying zakat.Research limitations/implicationsThis study has limitations regarding the number of samples (informants). In addition, the results of the research are designed to be very subjective so that they cannot be generalised to phenomena that exist in other places and countries that also require zakat in the profession. In the future, the results of this study can be used as a variable development with quantitative methods so that it can involve more samples to get maximum and a broader result.Practical implicationsThis research has a valuable managerial impact on the zakat management institutions, particularly in Langsa, Aceh, Indonesia and all zakat institutions worldwide. Therefore, the central government can evaluate the zakat gap through various socialisation activities by promoting the cognitive, affective and psychomotor domains. Socialisation should improve people’s behaviour to pay zakat so that the amount of zakat collected will be higher and will reduce the gap between the potency of zakat and the zakat in reality which has been unequal so far.Originality/valueThis research will contribute to the significant development of zakat in terms of studying the behaviour of muzakki paying the professional zakat. Although the theory of planned behaviour was dominated by previous research, this research reveals other aspects of muzakki behaviour using Bloom’s model by elaborating on cognitive, affective and psychomotor domains.

Analisis Dampak Penyaluran Dana Zakat Produktif Terhadap UMKM Mustahik

Empowering UMKM is one of the elements to improve the community's economy. The empowerment of UMKM can be done through productive zakat fund distribution activities by zakat management institutions. This research aims to analyze the impact of channeling productive zakat funds to UMKM Mustahik in LAZISMU DIY Region. This research uses quantitative research with a sampling technique with a purposive sampling technique. The analysis method used uses Simple Regression analysis with classical assumption testing. Based on the value of the coefficient of determination (R Square), namely R2 = 0.474 ×100% = 47.4%. This value shows that productive zakat funds affect mustahik MSMEs by 47.4%, while the remaining 52.6% is influenced by other factors. The results of this research show that productive zakat funds influence the development of UMKM mustahik.

LAZ DASI'S Education and Literacy Program in Increasing the Awareness of The People of Central lombok to Pay Zakat through LAZ DASI

This research is motivated by the data source of BPS Central Lombok Regency, the number of Muslim residents who are said to be economically capable and have income shows that the number of Central Lombok Muslim residents who are able to pay zakat with the number of residents or people who pay zakat through LAZ DASI and BAZNAS Central Lombok is said to be insignificant. This may occur because public awareness of zakat can be influenced by a person's knowledge or understanding of zakat itself. So based on this data, people who still lack awareness of paying zakat need educational and literacy activities among the community carried out by institutions or zakat management bodies such as LAZ DASI to provide understanding and knowledge about the program for awareness in paying zakat through official zakat management institutions. This type of research is descriptive qualitative research. The data collection methods used are observation, interview and documentation methods. While the data sources used are primary data sources and secondary data. The results of the research conducted by researchers show that education and literacy carried out by LAZ DASI Central Lombok have significantly increased public awareness to pay zakat at LAZ DASI Central Lombok. Educational activities carried out are through partner meetings, socialization, volunteer communities, and zakat awareness safaris. While literacy activities are carried out through the reading bale ceria lombok and LAZ DASI magazine.

The Effectiveness of The Amil Zakat Certification in Increasing Amil Competence at BAZNAS Cilacap Regency

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.

Sistem Informasi Online Pengelolaan Dana Sosial Pada Rumah Yatim Sumatera Utara

Rumah Yatim, a National Zakat Management Institution under BAZNAS, manages various forms of donations across Indonesia through 20 branch offices. However, data management using Microsoft Excel has drawbacks, which led to the creation of an Online Social Fund Management Information System in North Sumatra using MySQL, PHP, HTML, and the Waterfall method. The system ensures transparent and systematic data management, making it easier for donors to donate online and providing real-time information on donation management. The new system has allowed Rumah Yatim to receive donations more efficiently and track them more systematically and transparently, resulting in better decision-making processes and more effective distribution of funds to those in need. The system has also helped streamline administrative tasks and reduce the time and resources required for manual data entry and report creation, leading to overall improved effectiveness and efficiency in operations.

KONTEKSTUALISASI MAKNA IBNU SABIL DALAM AL-QUR’AN DI ERA MODERN-KONTEMPORER

The premodern context places classical commentators on a single interpretation of the term ibn sabil in the Qur'an. They only interpret ibn sabil as a traveler (musafir) who has run out of supplies. This limited meaning can no longer be maintained, because the social, economic, and political context in the modern-contemporary era has changed. This research seeks to contextualize the verses of ibnu sabil in the Qur'an in the modern-contemporary era. This research is a qualitative type by utilizing library data collected through the maudhu'i method, with a focus on verses that offend ibn sabil. Meanwhile, Abdullah Saeed's contextual approach is used as an analytical tool. This research compiles eight verses about ibnu sabil in the Qur'an which are spread over seven surahs, consisting of two makkiyah surahs and six madaniyyah. The finding is that the verses of ibn sabil are included in the second hierarchy of values, namely fundamental values. Contextualization of ibn sabil's verses in the modern-contemporary era places ibn sabil in a broader meaning than just travelers, as in premodern interpretations. Ibnu sabil currently includes “anak jalanan” and those who do not have a permanent residence (homeless). Therefore, zakat management institutions, both from the private sector and the government, should be able to expand the scope of zakat recipients (mustahik) from the ibnu sabil cluster, as found in this study.

Penerapan Akuntansi Zakat (PSAK No. 109) pada Wakaf Infaq Sadaqah (Studi pada Wakaf Infaq dan Sedekah (WIZ) Kabupaten Bone

Currently, an Islamic-based economy has become a necessity for the people. The economic empowerment of the ummah is increasingly being carried out by several Islamic financial institutions. They are trying so that the Islamic economy is not only an alternative for Muslims, but indeed it must be the only option for them. This is to prevent the ummah from all kinds of ribāwi financial practices carried out by conventional banks. In addition, the utilization of zakat, donations/alms originating from Muslims must be managed as early as possible by professional zakat management institutions so that they can be distributed effectively and on target as part of an effort to empower the people's economy. This research belongs to the scope of financial accounting research, because it discusses accounting treatment, measurement, recognition, reporting systems, and company policies. Based on the characteristics of the problem, this research is classified as descriptive research. The research approach used is a qualitative approach, namely a study that intends to understand the phenomenon of what is experienced by research subjects such as behavior, perceptions, motivations, actions and others in a holistic manner and by means of descriptions in the form of words and language, in a special natural context and by making use of various natural methods. Zakat funds were obtained from muzakki who came directly to the amil zakat agency (WIZ) in Bone district and received a receipt as proof of receipt of zakat where the first sheet of the note was given to the muzakki and the second sheet was kept by the amil zakat agency. And the distribution of zakat funds is directly given directly to 8 asnaf who are entitled to receive and record the distribution of zakat funds. In the recording of the amil zakat agency (WIZ) in Bone district where it uses a double entry system when zakat funds are distributed it will reduce zakat funds. Zakat accounting treatment according to PSAK 109 has been implemented but not optimal. One of the reasons is that zakat amil bodies in general are from departments that are less basic regarding zakat accounting. The form or model for calculating zakat accounting at WIZ Bone district presents a report on financial position, a cash flow statement, and a report on changes in funds. Keywords: Accounting, Reports, WIZ, Zakat.

Analysis of Maqashid Syariah Principles in the Governance of Fundraising Activities of Zakat Management Institutions

The ability of zakat institutions to collect zakat funds is still far from the existing potential. The collection of national zakat funds reaches Rp. 11.5 trillion to Rp. 233 trillion from the existing potential, or the funds that have been obtained are 5% of the existing potential. This percentage is still very small, so the development of fundraising needs to be continuously developed and solutions need to be found for existing problems. There is no doubt that the zakat institution is the main driving force behind the collection and distribution of zakat funds, the management development of zakat institutions is important. The problems faced by the management of zakat institutions need to be broken down and solutions sought. This study aims to explore solutions to these problems. This study uses field studies by collecting data through interviews and field observations. The results of the study show that management has a vital role in collecting and distributing zakat funds. The application of maqashid sharia principles in management has a significant impact on the development of the Institution. Which is indicated by several benefits obtained by stakeholders, namely muzaki, mustahik and the environment

Strategy Of Professional Zakat Fundraising In Zakat Management Institutions

This study aims to analyze the strategy of professional zakat fundraising to increase Muzakki's trust. The research was conducted at zakat management institutions, namely at LAZ Al-Abidin, LAZISMU UMS, and LAZISMU in Solo. The method used in this research is a qualitative approach. Data collection techniques include in-depth interviews with related parties, documentation and literature. The results of this study indicate that professional zakat at LAZ Al-Abidin, LAZISMU UMS, and LAZISMU Solo has increased yearly. However, there is a problem at LAZ Al-Abidin and LAZISMU, namely the low level of public understanding of professional zakat, while for LAZISMU UMS, it is about regional coverage. The fundraising strategy carried out by LAZ Al-Abidin and LAZISMU UMS in increasing Muzakki's trust by carrying out data transparency, and increasing teamwork abilities, while LAZISMU Solo expanded marketing and created attractive reports. The strategy carried out by each zakat management institution can gain the trust of the Muzakki so that it can increase the receipt of professional zakat. This research has implications for developing the theory of professional zakat regarding fundraising strategy.

Analisis Peran Dan Strategi Lazismu Kota Medan Terhadap Pemberdayaan UMKM Di Kota Medan

LAZISMU is an Amil Zakat Institution, Infaq, Shadaqah Muhammadiyah Which has a national scale in community empowerment through productive utilization of zakat funds, infaq, waqf, and other philantropic funds from individuals, companies and other agencies. The establisment of LAZISMU aim as a zakat management institution with efficient finance that can be part of the communitys social problem solver. Limited capital, lack of knowledge of technology, and difficulty in marketing products are the problems faced by Micro, Small and Medium Enterprises (MSME) today. The purpose of this study was to determine the role and strategy of LAZISMU in Medan City towards the Empowerment of MSME in Medan City. This research process uses descriptive qualitative research. Information in this study is based on primary sources. Data collection techniques in this study are through library research and field research. The results of research aimed at LAZISMU Medan City show the results of empowering zakat, infaq, shadaqah funds distributed through two classifications, namely productive and comsumptive.

PENGELOLAAN DAN PENGEMBANGAN ZAKAT DI INDONESIA

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.