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Article

Norazlina Abd. Wahab, Zairy Zainol and Mahyuddin Abu Bakar

This paper aims to present a conceptual model on service quality of zakat institutions that are responsible for collecting, managing and distributing zakat in Malaysia…

Abstract

Purpose

This paper aims to present a conceptual model on service quality of zakat institutions that are responsible for collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well-to-do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur’an. The main aim of zakat is to protect the socio-economic welfare of the poor and the needy.

Design/methodology/approach

The paper reviews and synthesizes the relevant literature on service quality. The paper then proposed a conceptual model to study the service quality of zakat institutions.

Findings

The paper identifies the appropriate methods to examine the extent of service quality of zakat institutions. Such evaluations are crucial for organizations like zakat institutions to function effectively to achieve the noble objectives of socio-economic justice through proper distribution of wealth.

Originality/value

This paper presents a conceptual model of service quality of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

Details

Journal of Islamic Accounting and Business Research, vol. 8 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

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Article

Norazlina Abd. Wahab and Abdul Rahim Abdul Rahman

The purpose of this paper is to analyze the changes in productivity of zakat institutions in Malaysia from 2003 to 2007. The data consist of a panel of 14 State Islamic…

Abstract

Purpose

The purpose of this paper is to analyze the changes in productivity of zakat institutions in Malaysia from 2003 to 2007. The data consist of a panel of 14 State Islamic Religious Councils (SIRCs) in Malaysia. Efficiency is measured by the Malmquist Index, using a data envelopment analysis (DEA) technique.

Design/methodology/approach

This paper uses Malmquist Productivity Index, using a DEA technique. The Malmquist productivity measures are decomposed into two components: efficiency change and technical change index.

Findings

The results showed that total factor productivity (TFP) has increased slightly for the whole industry, which is mainly due to the technical change rather than the efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggest that the pure efficiency is found to be a more important source of efficiency change than scale efficiency component.

Originality/value

This paper investigates the productivity and efficiency of zakat institutions in Malaysia. It will be of value to provide evidence to the policy makers to improve the efficiency of the institutions.

Details

Studies in Economics and Finance, vol. 29 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

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Article

Norazlina Abd. Wahab and Abdul Rahim Abdul Rahman

This paper aims to present a conceptual model on the efficiency and governance of zakat institutions that are responsible in collecting, managing and distributing zakat in…

Abstract

Purpose

This paper aims to present a conceptual model on the efficiency and governance of zakat institutions that are responsible in collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well‐to‐do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur'an. The main aim of zakat is to protect the socio‐economic welfare of the poor and the needy.

Design/methodology/approach

The paper reviews and synthesises the relevant literature on efficiency, governance and zakat. The paper then developed and proposed a conceptual model to study the efficiency and governance of zakat institutions.

Findings

The paper identifies the appropriate methods to evaluate efficiency and governance of zakat institutions. Such evaluations are crucial for the Islamic financial system to function effectively in order to achieve the noble objectives of socio‐economic justice through proper distribution of wealth.

Originality/value

This paper presents a conceptual model of efficiency and governance of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

Details

Journal of Islamic Accounting and Business Research, vol. 2 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

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Article

Musa Yusuf Owoyemi

The purpose of this study is to look at Zakat management and the crisis of confidence in the ability of the state and zakat agencies to dispense zakat to the rightful…

Abstract

Purpose

The purpose of this study is to look at Zakat management and the crisis of confidence in the ability of the state and zakat agencies to dispense zakat to the rightful beneficiaries as mentioned in the Quran. Confidence is a very important element between the payers and collectors of zakat and when this is lost, it affects the willingness of the payers to give zakat to the zakat collectors (state or zakat agency). This crisis of confidence led to the need to look at the legality of the payer giving zakat directly to the beneficiaries and whether this is a sin as argued in certain quarters.

Design/methodology/approach

Using the qualitative method by using historical, analytical and critical tools, the research examines the concept of proximity in the distribution of zakat and based on this argues that giving zakat directly to the beneficiaries is a viable option when there is a crisis of confidence between the payer and the state or zakat agency.

Findings

Through the analysis of the opinions of scholars, the research affirms that scholars are divided on whether to pay zakat to the state or give it directly to the beneficiaries. Based on this, the research concludes that although the ideal is to give zakat to the state or zakat agency, but there is no sin in giving zakat directly to the beneficiaries especially where there is a problem of confidence in the state and/or zakat agency.

Research limitations/implications

The research discussed the legality of giving zakat to the recipients of zakat directly using the historical, analytical and critical tools. This shows that the research is qualitative in nature and is library based therefore limited in scope. Basically, this research is concerned with refuting the claim that it is a sin for zakat payers to give zakat directly to the recipients especially when there is a problem of trust in zakat agencies and a crisis of confidence in the ability of these agencies to do what is right with the zakat funds. This leaves room for further research on the issue.

Practical implications

It is important to create confidence in zakat agencies' collection and distribution of zakat so that it will encourage more Muslims to pay their zakat and allow it to reach as many people as possible. Encouraging the creation of a vetting organization by Muslim professional accountants and others that can help in making zakat agencies transparent and trustworthy.

Social implications

It emphasizes the importance of trust and confidence that institutions must project for the people to do business with them.

Originality/value

The research contributes to the body of knowledge on zakat collection and distribution. It shows the importance of trust and confidence in zakat management and recommended ways in which trust and confidence could be built in the effective collection and distribution of zakat.

Details

Journal of Islamic Accounting and Business Research, vol. 11 no. 2
Type: Research Article
ISSN: 1759-0817

Keywords

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