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Article
Publication date: 26 February 2021

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…

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.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 3
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 12 April 2013

Murtala Oladimeji Abioye Mustafa, Muslim Har Sani Mohamad and Muhammad Akhyar Adnan

The purpose of this paper is to investigate and explain the factors underlying the inclination of zakat payers to trust a particular zakat institution.

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Abstract

Purpose

The purpose of this paper is to investigate and explain the factors underlying the inclination of zakat payers to trust a particular zakat institution.

Design/methodology/approach

Based on the literature review and experience survey, a context specific questionnaire was developed as the main method of quantitative data collection. The instrument was administered to a sample of Muslim professionals who observe religious seclusion in the last ten days of the Islamic fasting month (itqaf) in 12 purposely selected mosques across four states and the federal capital territory.

Findings

Drawn from the resource dependence and legitimacy theories, the study finds that board capital, disclosure practices, governmental model of zakat institution, and stakeholder management were identified through the use of structural equation modeling as being the antecedents of zakat payers' trust.

Originality/value

This paper is the first to report an empirically based model of zakat payers' trust.

Details

Journal of Islamic Accounting and Business Research, vol. 4 no. 1
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 6 August 2019

Widiyanto bin Mislan Cokrohadisumarto, Zaenudin Zaenudin, Bejo Santoso and Siti Sumiati

The purpose of this study is to develop a model of the Muslim community’s behaviour in paying zakat to contribute ideas on how to increase zakat recipients nationally, so…

Abstract

Purpose

The purpose of this study is to develop a model of the Muslim community’s behaviour in paying zakat to contribute ideas on how to increase zakat recipients nationally, so as to improve the welfare of the wider community.

Design/methodology/approach

This study uses a quantitative (i.e. multiple regression analysis that involves moderating variables) and descriptive approach. Multiple regression analysis with the stepwise method is implemented to get the best regression model of community’s behaviour in paying zakat. This study takes a sample of Muslim communities in several regions (northern coast) of Central Java, Indonesia.

Findings

In the situation of the absence of government regulations relating to the obligation to pay zakat for Muslim communities, the community’s behaviour in paying zakat can be formed through two things, which are: increasing the zakat understanding and strengthening the credibility of zakat management institutions. Providing complete information to the community regarding the existence and what has been done and what will be done by the zakat management institution is very necessary.

Research limitations/implications

This study has not specifically discussed the various types of zakat paid, such as commercial zakat, agricultural zakat and professional zakat. Therefore, future research can be done more specifically to determine the behaviour of paying zakat based on the type of zakat as stated.

Practical implications

Increasing the target of collecting zakat funds from the community nationally needs: (i) educating the community about zakat more broadly and sustainably; (ii) strengthening the credibility of the zakat management institution; and (iii) strengthening the flow of information from the zakat management institution to the community.

Originality/value

Research on community’s behaviour in paying zakat has never been done before. This study analyses the behaviour of paying zakat comprehensively, namely, in terms of adherence to God and the government, awareness without coercion and the behaviour of choosing a place to pay zakat.

Details

Journal of Islamic Marketing, vol. 11 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Book part
Publication date: 19 December 2016

Khadijah Binti Mohd Khambali @ Hambali, Zalfa Laili Hamzah, Mohd Zaidi Daud and Fuadah Johari

Despite the establishment of the Zakat, its role has been argued by the new Muslim (Muallaf) community. This research attempts to examine the role played by the Zakat

Abstract

Purpose

Despite the establishment of the Zakat, its role has been argued by the new Muslim (Muallaf) community. This research attempts to examine the role played by the Zakat institution in Selangor in distributing funds and supporting Muallaf.

Methodology/approach

A qualitative approach through a series of interview sessions with management of the Zakat institution was carried out.

Findings

The results show that the department has supported Muallaf, particularly in terms of education, finance and monitoring the Muallaf through various programmes starting from the first day they convert to Islam.

Research limitations/implications

This chapter has its limitations in terms of the data collection from the Islamic religious centre. Future research should collect information from all rightful recipients, particularly the Muallaf community in order to measure the efficiency of the institution of Zakat. Future studies are important to understand how efficient the Islamic institution plays its role in managing and ensuring social economic justice among the other Muslim community.

Practical implications

This chapter indicates that the management of the Zakat institution should provide more systematic guidelines in managing Zakat fund for the efficient promotion, collection and distribution. Managing the institution of Zakat efficiently and effectively will help to enhance the image of religion, particularly Islam.

Social implications

This chapter confirms that the Islamic Religious Department of Selangor has managed to successfully administer the Zakat fund. On top of that, the department has organized several programmes for Muallaf in order to support them to be a new Muslim in a majority Muslim country.

Original/value

This chapter also clarifies the issues raised by the Muallaf community concerning the unfair treatment in distributing the Zakat fund and supporting them. This chapter contributes towards an understanding of the Zakat institution with regards to its concepts, role, issues and challenges.

Details

Advances in Islamic Finance, Marketing, and Management
Type: Book
ISBN: 978-1-78635-899-8

Keywords

Content available
Article
Publication date: 8 February 2021

Ika Sari Wahyuni-TD, Hasnah Haron and Yudi Fernando

This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.

2286

Abstract

Purpose

This study aims to investigate the direct and indirect effects of good governance and fraud prevention on the performance of Zakat institutions.

Design/methodology/approach

A theoretical model was developed based on stakeholder theory, and data were collected from Indonesian Zakat institutions through convenience sampling design. In total, 142 data sets were analysed using partial least squares-structural equation modelling statistical software.

Findings

The results showed that good governance and fraud prevention significantly impact the performance of Zakat institutions. Yet, there was no significant influence of the fairness principle of good governance on Zakat performance in either direct or indirect relationships with fraud prevention.

Practical implications

The results indicated that Zakat institutions as trusted agencies should pay more attention to fairness implementations to avoid fraud. Furthermore, fairness is an early signal that accountants can use to detect either fraudulent or mismanaged Zakat distribution.

Originality/value

This paper provides the empirical justification for a theoretical model of Zakat performance that was conceptualized using good governance principles and Sharīʿah forensic accounting principles.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 14 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 12 June 2017

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.

2006

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

Article
Publication date: 19 April 2011

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…

9358

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

Article
Publication date: 27 July 2012

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…

3804

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

Article
Publication date: 27 July 2021

Saeed Awadh Bin-Nashwan, Hijattulah Abdul-Jabbar and Saliza Abdul Aziz

Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and…

Abstract

Purpose

Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and agencies in most Muslim countries still suffer from the perplexing issue of low zakat collections, ascribing this to the level of compliance among zakat payers. To provide more insight into this lacuna, this study aims to examine the role of trust in zakat institution through the relationship between socio-economic determinants (i.e. religiosity, moral reasoning, peer influence and system fairness) and zakat compliance decisions.

Design/methodology/approach

From a typical Islamic country, Yemen, a random sample of 274 entrepreneurs was drawn for a self-administered survey. To estimate and analyze the compliance model, SmartPLS structural equation modeling was used.

Findings

The results show that all hypothesized direct relationships are supported. Importantly, the trust-moderated interactions of religiosity, moral reasoning and peer influence on zakat compliance are significant, although its interaction with zakat system fairness is not.

Practical implications

The results should be helpful for policymakers and responsible institutions in Muslim communities to understand how different levels of trust can play an important role in Zakat payers’ compliance to boost or erode zakat funds. This research also contributes important inferences for managers about the necessity of inculcating religious and moral values among zakat payers, formulating a fair system and embarking on sensitization programs in society.

Originality/value

The research enriches the scanty literature by validating a viable compliance model drawing on the socio-economic theory of regulatory compliance. Moreover, the model integrates the moderating role of trust in socio-economic perspectives of zakat compliance.

Details

Journal of Islamic Accounting and Business Research, vol. 12 no. 5
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 29 November 2022

Sharifah Norzehan Syed Yusuf, Nur Hanida Sanawi, Erlane K. Ghani, Rifqi Muhammad, Dalila Daud and Eley Suzana Kasim

This study aims to examine the factors influencing the effectiveness of zakat distribution to university students. Specifically, it examines technology improvement…

Abstract

Purpose

This study aims to examine the factors influencing the effectiveness of zakat distribution to university students. Specifically, it examines technology improvement, procedural application and governance on Sarawak university students’ zakat distribution effectiveness.

Design/methodology/approach

This study used the questionnaire as a research instrument and divided it into five parts. Part A gathers demographic information of respondents. Part B measures the respondent’s opinion on current technology improvement. Part C measures university students’ opinion on zakat application procedures. Part D measures the governance concept of the zakat institution. Part E measures the effectiveness of zakat distribution.

Findings

This study found technology improvement and governance significantly influence the effectiveness of zakat distribution to university students. This study provides no significant influence of the procedural application on zakat distribution’s efficacy to university students.

Research limitations/implications

This study suggested that technology plays an essential role in zakat distribution effectiveness by providing faster data processing, easier retrieval of information and time reduction to complete a task. The enforcement of good governance by zakat institutions allows them to be competitive, meets the stakeholders’ demand and serves them better.

Practical implications

This study provides understanding to the zakat institutions in developing appropriate zakat distribution strategies and strengthening their management and governance system.

Originality/value

This paper integrates technology improvement, procedural application and governance in zakat distribution.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

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