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1 – 10 of 57Fahmi Ali Hudaefi and Irfan Syauqi Beik
Despite the COVID-19 recession, the collection of zakat (almsgiving) managed by the National Board of Zakat Republic of Indonesia (BAZNAS RI) has increased, especially during…
Abstract
Purpose
Despite the COVID-19 recession, the collection of zakat (almsgiving) managed by the National Board of Zakat Republic of Indonesia (BAZNAS RI) has increased, especially during Ramaḍān 1441 Hijra. Previous works show a positive relationship between digital zakat campaign and zakat collection. This paper aims to study the means of digital zakat campaign during COVID-19 outbreak. This topic is theoretically and practically important in the emerging debate of Islamic marketing, notably in Islamic social finance field.
Design/methodology/approach
This paper uses a qualitative research approach. A case study is engaged in the selection of BAZNAS RI for a detailed discussion of a zakat organisation. Meanwhile, a netnographic approach is used to analyse the number of 549 posts from BAZNAS RI’s social media, which are Facebook, Instagram, Twitter and YouTube. Furthermore, a qualitative software analysis of NVivo 12 Plus is used in performing the analytical procedures.
Findings
This work explains the means of digital zakat campaign during COVID-19 outbreak with a case of BAZNAS RI. It is identified the number of 6 parent nodes and 64 child nodes from the analysis using NVivo 12 Plus. The authors’ parent nodes are “donation”, “infaq” (Islamic spending for charities), “Ramaḍān matters”, “ṣadaqah” (voluntary charity), “virtual events” and “zakat”. These nodes detail digital campaign of BAZNAS RI posted in its social media during COVID-19 period in Ramaḍān. A theoretical implication of inclusive marketing is derived from the analysis. It explains that the inclusiveness of digital contents is practically significant in campaigning zakat as a religious obligation that contributes to social and financial benefits.
Research limitations/implications
This paper does not claim a positivist perspective on the relationship between digital zakat campaign and zakat collection. Instead, this paper explores in-depth the practice of digital zakat campaign, which the previous study confirms its association with a muzakki’s (Muslims who are obliged to pay zakat) decision to pay zakat.
Practical implications
This paper establishes the Islamic marketing theory that is derived from industrial practices. The inclusiveness of digital contents in zakat campaign is critical in activating zakat as a religious obligation that authentically shapes the social and economic processes of a Muslim community. This theory is practically important for 'amils (employees) of zakat institution who work in the marketing division, chiefly to create such contents to post in social media.
Social implications
The authors’ node of zakat distribution for COVID-19 relief indicates the importance of a formalised zakat institution to actualise zakat’s role in handling socioeconomic problems. Thus, paying zakat formally in an authorised organisation may contribute to a greater social contribution and maṣlaḥah (public interest) than paying it informally without any effective measurement.
Originality/value
This study contributes to the novelty in the Islamic marketing debate within two folds. First, this paper is among the pioneers in studying digital zakat campaign during COVID-19 outbreak by using a netnographic approach. Therefore, a theoretical implication derived from industrial practices is contributed. Second, this paper details the steps in using NVivo 12 Plus to analyse the unstructured data sampled from the internet. The future studies may thus refer to this work to understand the application of netnography and the procedures in analysing data from social media using this software.
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Sri Herianingrum, Indri Supriani, Raditya Sukmana, Effendie Effendie, Tika Widiastuti, Qudsi Fauzi and Atina Shofawati
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Abstract
Purpose
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Design/methodology/approach
This study used a qualitative method based on library research sourced from books, financial reports and another previous research.
Findings
The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.
Research limitations/implications
This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.
Originality/value
Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.
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Fahmi Ali Hudaefi, Rezzy Eko Caraka and Hairunnizam Wahid
Zakat during the COVID-19 outbreak has played a vital role and has been significantly discussed in the virtual environment. Such information about zakat in the virtual world…
Abstract
Purpose
Zakat during the COVID-19 outbreak has played a vital role and has been significantly discussed in the virtual environment. Such information about zakat in the virtual world creates unstructured data, which contains important information and knowledge. This paper aims to discover knowledge related to zakat administration during the pandemic from the information in a virtual environment. Furthermore, the discussion is contextualised to the socio-economic debates.
Design/methodology/approach
This is a qualitative study operated via text mining to discover knowledge of zakat administration during the COVID-19 pandemic. The National Board of Zakat Republic of Indonesia (BAZNAS RI) is selected for a single case study. This paper samples BAZNAS RI’s situation report on COVID-19 from its virtual website. The data consists of 40 digital pages containing 19,812 characters, 3,004 words and 3,003 white spaces. The text mining analytical steps are performed via RStudio. The following R packages, networkD3, igraph, ggraph and ggplot2 are used to run the Latent Dirichlet Allocation (LDA) for topic modelling.
Findings
The machine learning analysis via RStudio results in the 16 topics associated with the 3 primary topics (i.e. Education, Sadaqah and Health Services). The topic modelling discovers knowledge about BAZNAS RI’s assistance for COVID-19 relief, which may help the readers understand zakat administration in times of the pandemic from BAZNAS RI’s virtual website. This finding may draw the theory of socio-economic zakat, which explains that zakat as a religious obligation plays a critical role in shaping a Muslim community's social and economic processes, notably during the unprecedented times of COVID-19.
Research limitations/implications
This study uses data from a single zakat institution. Thus, the generalisation of the finding is limited to the sampled institution.
Practical implications
This research is both theoretically and practically important for academics and industry professionals. This paper contributes to the novelty in performing text mining via R in gaining knowledge about the recent zakat administration from a virtual website. The finding of this study (i.e. the topic modelling) is practically essential for zakat stakeholders to understand the contribution of zakat in managing the COVID-19 impacts.
Social implications
This work derives a theory of “socio-economic zakat” that explains the importance of a zakat institution in activating zakat for managing socio-economic issues during the pandemic. Thus, paying zakat to an authorised institution may actualise more maslahah (public interest) compared to paying it directly to the asnaf (zakat beneficiaries) without any measurement
Originality/value
This study is among the pioneers in gaining knowledge from Indonesia’s zakat management during the COVID-19 outbreak via text mining. The authors’ way of analysing data from the virtual website using RStudio can advance Islamic economics literature.
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Irfan Syauqi Beik, Laily Dwi Arsyianti and Novita Permatasari
Digital technology has been widely applied in zakat collection. Millennials, who are now dominating the productive phase and at their peak carrier path, are the potential target…
Abstract
Purpose
Digital technology has been widely applied in zakat collection. Millennials, who are now dominating the productive phase and at their peak carrier path, are the potential target for zakat collection as their number reached 31.3% of the Indonesian population. On the other hand, public and private zakat institutions have attempted to optimize the country’s zakat potential, reaching 233.6tn rupiahs, through development of a digital platform for zakat collection. However, the gap between the actual collection of zakat with its potential is still large. This study aims to analyse the factors affecting millennials in paying zakat through direct payment or through digital platform of private or public zakat institutions.
Design/methodology/approach
Multinomial logistic regression method, which signifies the contribution of this study, is used to analyse factors influencing millennials in their zakat payment. In addition, cross-tabulation is used to classify the characteristics of respondents. Respondents are selected conveniently through a digital questionnaire distributed in February–March 2021. Respondents are also selected purposively based on their experience in paying zakat through direct, private or public zakat institutions, which are consisted of 50 respondents per each category; thus, the total becomes 150 respondents.
Findings
Based on the results, three variables, namely, education, accessibility and age, are found to have a significant influence on zakat payment through online platforms provided by private zakat institutions. Meanwhile, variables that influence zakat payment through online platforms provided by public zakat institutions are education, accessibility and income. This study also finds that millennials have the highest probability to select online platforms provided by private zakat institutions as a channel of their zakat payment. However, the overall result shows that millennials tend to pay directly to the mustahik (zakat recipients) rather than via online platforms, presumably because of their limited zakat literacy.
Research limitations/implications
The purposive sampling technique used to determine the research samples limits the generalization of the study.
Practical implications
This paper establishes a new approach in analysing millennials preference in their zakat payment with digital inclusiveness. The use of a multinomial logistic approach, which has not been widely applied in such research, strengthens the analysis that is relevant to the need of both private and public zakat institutions to analyse determinants of millennials in paying their zakat through online platform. This study can be used as a reference to formulate a more effective marketing strategy for zakat collection. This paper also serves as an estimate of the preference with some selected typical characteristics of millennials by using a multinomial logistic approach.
Social implications
Formal payment through the zakat institution theoretically is more preferable than direct payment to mustahik (zakat recipients) in the zakat campaign. However, based on this research, despite digital marketing and platforms having been well-used by both private and public zakat institutions, the millennials still prefer direct zakat payment than through online platforms. The findings of this research suggest the importance of strengthening zakat literacy through a more effective digital marketing strategy of zakat institutions which target the millennials.
Originality/value
This study fills the gap in the literature on how millennials choose their zakat payment method, whether through digital platforms developed by private and public zakat institutions or directly to the targeted zakat recipients. The use of multinomial logistic regression approach adds the novelty of this research.
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Rahman Saleh Rahmat and Mohamad Soleh Nurzaman
This study aims to assess the feasibility of zakat distribution conducted by zakat community development program, one of the BAZNAS programs in Bringinsari village, Sukorejo…
Abstract
Purpose
This study aims to assess the feasibility of zakat distribution conducted by zakat community development program, one of the BAZNAS programs in Bringinsari village, Sukorejo subdistrict, Kendal Regency, Central Java using the zakat village index (IDZ).
Design/methodology/approach
IDZ has five components in measuring the effectiveness of charity for the welfare of the community is the economic dimension, the dimension of education, dimension of health, social dimension of humanity and dimensions of da’wah. The economic dimension consists of four variables, namely, the presence of productive economic activities, trade centers and access to transportation and logistics services and the presence of access to financial institutions.
Findings
Based on IDZ measurement in Bringinsari village, it is found that IDZ of this village is 0.47. It showed that the condition of the village is good enough. As the result of this calculation, Bringinsari village is under consideration to receive zakat funding.
Research limitations/implications
This research will be done in Bringinsari village Sukorejo district, Kendal regency from April 1, 2018 until July 2, 2018.
Practical implications
Based on the result of IDZ result done in Bringinsari Sukorejo district, Kendal regency, it is gained index calculation result for about 0.47. Therefore, the conclusion is drawn that the village deserves to get zakat funding. Economic dimension is still low, 0.32. Therefore, in this case, a motivation to help villagers is needed. The exact program in improving the people in Bringinsari based on priority is economic, health, education program in accordance with IDZ calculation.
Social implications
The welfare measurement of zakat receiver or mustahiq adopts welfare index (CIBEST). CIBEST model combines material and spiritual fulfillment of human needs quadrants. This index is split into four categories, namely, welfare, material poverty, spiritual poverty and absolute poverty (Puskas BAZNAS, 2016).
Originality/value
Based on measurement result that has been obtained, the authors can recommend some program activities to help improving their welfare. There are three dimensions, which IDZ prioritized or considered to be assisted, such as economic dimension, activity program for housewives. If Bringinsari has got an indicator as a good village and the impact is good as well, therefore, it can try to move zakat fund distribution to other villages.
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Sri Herianingrum, Tika Widiastuti, Meri Indri Hapsari, Ririn Tri Ratnasari, Firmansyah Firmansyah, Shahir Akram Hassan, Annisa Rahma Febriyanti, Rachmi Cahya Amalia and Luthfi Akmal Muzakki
This study aims to examine how muzakki (zakat donator) and mustahik (zakat recipients) collaborated to strengthen the fundraising capability in Islamic social finance institutions…
Abstract
Purpose
This study aims to examine how muzakki (zakat donator) and mustahik (zakat recipients) collaborated to strengthen the fundraising capability in Islamic social finance institutions (ISFIs) during the COVID-19.
Design/methodology/approach
This study uses a descriptive qualitative method in conjunction with interview techniques. Interviews with muzakki of various professions were conducted, as well as data from field documentation, to develop a collaborative model of muzakki and mustahik in strengthening the fundraising capacity of ISFIs.
Findings
The findings indicate that muzakki employed as civil servants, BUMN (state-owned enterprises) employees and entrepreneurs continue to pay zakat through ISFIs and support mustahik, whereas muzakki affected by the COVID-19 pandemic reduce their zakat spending. Consequently, with the collaboration of mustahik and muzakki, a framework can be developed to strengthen the strategy for raising funds for ISFIs. By empowering mustahik with businesses, ISFIs can increase the collection of zakat funds.
Research limitations/implications
The collaboration model would strengthen ISFI's ability to raise Islamic philanthropic funds and optimize their management. The basis for the regulation is contained in Law No. 23 of 2011 which allows collaboration between institutions and other stakeholders. In addition, the role of ISFIs does not end with the collection and distribution of funds, they also maintain the muzakki and mustahik's cooperation, so a significant role is required in involving muzakki and mustahik for them to collaborate and synergize, as well as improving the quality of human resource from Amil (zakat collector) to implement the strategy.
Originality/value
Few studies have been conducted in collaboration with Muzakki and Mustahik to develop models or frameworks for strengthening fundraising capabilities in ISFIs. Most of these studies are illustrative. Through collaboration between Muzakki and Mustahik, this research establishes a new model for enhancing the strategy of Islamic social finance fund raising to establish a sustainable system for ISFIs.
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Tika Widiastuti, Eko Fajar Cahyono, Siti Zulaikha, Imron Mawardi and Muhammad Ubaidillah Al Mustofa
This study aims to formulate a strategy for optimizing zakat governance in zakat institutions in East Java Province by identifying priority problems, creating solutions and…
Abstract
Purpose
This study aims to formulate a strategy for optimizing zakat governance in zakat institutions in East Java Province by identifying priority problems, creating solutions and developing strategies.
Design/methodology/approach
This qualitative research uses the analytical network process method. Ten respondents representing practitioners, academics, associations and regulators were selected for their expertise in zakat governance. The data were processed using Super Decision software program and Excel.
Findings
Priority issues in optimizing zakat governance found in this study are lack of information on Mustahik’s needs and development to Muzakki and the low motivation and ability of Mustahik to develop. Improving the quality and capacity of Amil’s, especially in the technological aspect, is a priority solution. The priority strategy considers intensification (by developing Amil’s ability to use technology) and extensification (by increasing Amil’s numbers who master technology).
Practical implications
The results highlight the urgency of increasing Amil’s capacity and capability in technology-based zakat management. Zakat institutions need to prepare for management’s transformation toward zakat technology as one of the priorities in optimizing zakat governance.
Originality/value
Problems, solutions and strategies for optimizing zakat governance are collected by connecting it to the Zakat Core Principles, namely, the ninth principle of collection management and the tenth principle of distribution management. Further, for identifying problems, solutions and strategies, four aspects must be considered of Amil, Muzakki, Mustahiq and other supporting elements to present better policies to optimize zakat governance.
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Qurroh Ayuniyyah, Ataul Huq Pramanik, Norma Md Saad and Muhammad Irwan Ariffin
This study aims to analyse the role of zakat in poverty alleviation and income inequality reduction based on the gender of zakat recipients.
Abstract
Purpose
This study aims to analyse the role of zakat in poverty alleviation and income inequality reduction based on the gender of zakat recipients.
Design/methodology/approach
This study used the Centre of Islamic Economic and Business Studies (CIBEST) model as a poverty measure and the Gini coefficient and Atkinson index as income inequality measures to analyse 1,300 zakat recipients in five different areas of West Java, Indonesia.
Findings
Based on the CIBEST model, zakat distribution programmes have better salutary effects on male-headed households in terms of material (0.215) and absolute (0.037) poverty indices, whereas female-headed households have better performance on the falah (0.438) and spiritual (0.022) poverty indices, with greater changes in these indices in female-headed households. According to the Gini coefficient and Atkinson index, female-headed households have better income distribution one-year after zakat distribution programmes, whereas the male-headed households have better performance in regards to welfare loss.
Research limitations/implications
The present study only used the poverty line standard published by the Central Board of Statistics from the Republic of Indonesia to identify respondents who live under the poverty line.
Practical implications
This paper can serve as a reference for zakat institutions in the implementation of zakat distribution programmes when the gender of zakat recipients is taken into consideration.
Originality/value
Not many studies have analysed the impact of gender in zakat distribution programmes despite gender being one of the most important determinants of poverty and income inequality. This study attempts to determine the economic impact of zakat from the perspective of gender.
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Rahmatina Awaliah Kasri and Adela Miranti Yuniar
This study aims to determine the factors that influence the intention to use online platforms in paying zakat in Indonesia.
Abstract
Purpose
This study aims to determine the factors that influence the intention to use online platforms in paying zakat in Indonesia.
Design/methodology/approach
This study used the extended unified theory of acceptance and use of technology as the theoretical framework, where zakat literacy is added to the model’s main components (i.e. performance expectancy, effort expectancy, facilitating condition and social influence). Primary data was collected through an online survey involving 223 Indonesian Muslims who have used various online channels to pay zakat and analyzed by using structural equation modeling as the empirical approach.
Findings
The findings indicate that performance expectancy, effort expectancy, facilitating condition and zakat literacy significantly affect the intention to use an online platform to pay zakat in Indonesia. However, social influence is found to be insignificant in this study.
Research limitations/implications
The study used a relatively small sample size compared to the Indonesian population’s size. Thus, the results must be interpreted with the sample observed.
Practical implications
Zakat organizations should make sure that their system is easy for people to make an online zakat payment, as easy access is the most important factor influencing the intention to pay zakat online. They must also increase efficiency and effectiveness of the payment system, enhance quality of the organizational and technical infrastructures and contribute to improving zakat literacy together with other zakat stakeholders.
Originality/value
This study offers new insights related to the quantitative study on digital zakat and behavior of zakat payers, particularly in Indonesia.
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Lu'liyatul Mutmainah, Izra Berakon and Rizaldi Yusfiarto
Zakat has succeeded in becoming one of the safety nets for welfare during the crisis. As a result, continuous improvement is a necessity, especially through strengthening…
Abstract
Purpose
Zakat has succeeded in becoming one of the safety nets for welfare during the crisis. As a result, continuous improvement is a necessity, especially through strengthening technology adaptation. This study aims to explore the factors determining Muslim behavior on their intention to pay zakat by taking into consideration the adoption of digital technology using the modified Unified Theory of Acceptance and Use of Technology (UTAUT).
Design/methodology/approach
The data collected were 265 respondents who live in urban and suburban areas. They were processed using the partial least square structural equation modeling (PLS-SEM) design. Furthermore, the multigroup analysis (MGA) was conducted to capture the difference results between urban and suburban.
Findings
The findings show that performance expectancy, social influence, facilitating conditions, perceived security and privacy and zakat literacy significantly increase the intention of Muzakki to adopt financial technology. Perceived security and privacy has succeeded in being an important predictor of digital payment adoption for Muzakki. This paper provides a specific description of the adoption of Muzakki living in urban and suburban areas by using MGA. The research findings illustrate that there is a different urgency between the related variables. Suburban communities have more significant results regarding the research model used.
Research limitations/implications
This research provides new component variables that can drive individuals’ intentions to use digital services to pay zakat online by using the redesigned UTAUT model. Further research can explore more variables related to zakat digitalization, such as social media interaction, by conducting in-depth interviews with stakeholders to improve zakat performance in this digital era.
Practical implications
The result of this research recommends that zakat institutions enhance their zakat literacy and education among the Muslim population to improve zakat performance. The government should pay attention to the digital ecosystem to attract the community to use a digital platform.
Originality/value
This research modified the UTAUT model by integrating several other important constructs to produce more comprehensive findings in investigating the factors that can influence an individual's intention to pay zakat through an online digital platform. This study also examined the indirect effect to obtain significant results by positioning perceived security and privacy as an intervening variable. The implementation of the MGA was conducted to divide research respondents into two categories (urban and suburban) and compare the test results.
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