Search results

Zakat is an important Islamic economic instrument that plays significant role in Sustainable Development Goals. Accordingly, Zakat Institutions must manage zakat in a proper and efficient manner. This study aims to examine the efficiency of Zakat Institutions based on their clusters which are government, business and social organizations.

This study uses three quantitative methods: data envelopment analysis (DEA), free disposal hull and super-efficiency DEA. The analytical method is based on production approach, variable return to scale assumption and output orientation. The sample consists of 14 Zakat Institutions from three clusters: Zakat Institutions managed by government, Zakat Institutions managed by corporation and Zakat Institution managed by social organizations.

The results revealed that all of three techniques culminate the same ranking order of efficiency. Zakat Institution managed by the government is the most efficient Zakat Institution, with the average value of 0.87 by using three approaches combined. Meanwhile, Zakat Institutions owned by company and social institutions cluster are in second and third position, with the average value of 0.65 and 0.4, respectively, based on the results of the three approaches. This study contends that the level of efficiency of Zakat Institutions may be supported by clusters (affiliations) in their management.

This study’s limitation is the inadequacy of the required data. Nonetheless, this study provides insights to improve the efficiency of Zakat Institutions based on their clusters. Zakat Institutions in each cluster can improve their efficiency by optimizing inputs to produce multiple outputs.

This study enhances research on the efficiency of Zakat Institutions using three methods to assess the consistency and strength of Zakat Institutions’ efficiency values. In addition, this study examines the efficiency level of Zakat Institutions based on their clusters.

This paper aims to explore the factors of social media adoption by zakat institutions.

This study uses qualitative data as the main source of evidence. Data were collected using semi-structured face-to-face interviews. Ten respondents from eight zakat institutions across Malaysia were interviewed. Judgement sampling and snowballing techniques were used to select respondents. Data analysis was done in three phases, namely, data reduction, data display and conclusion confirmation.

The findings of this study found perceived benefits, ease of use, accessibility, formalization, training, management push and indirect public push to be the determinant factors that contribute to the adoption of a social media application in zakat institutions. They are discussed and organized into a few groups under four categories, namely, technological, organizational and environmental contexts based on the TOE framework.

This study contributes to the existing body of knowledge in technology adoption understanding with the engagement of a range of Technology Organization Environment (TOE) framework. However, for future research, quantitative data involving the zakat payers should be anticipated to further understand the issue.

Output from this study may be useful to the adoption champions within zakat institutions, such as decision-makers and marketing officers. These people can help to provide guidelines and steer managers to focus on the identified factors in this study when adopting social media.

The finding from this study may help to increase the efficiency of two-way communication between zakat institutions and the community. It was found that the adoption of social media improved communication activities with the public and better handling of negative perceptions towards zakat institutions. The findings proved that using social media applications in zakat institutions can help create a better organizational image for the public by publishing instant and continuous news feeds on activities that specifically cater to the need of the asnaf. This can alleviate negative perceptions that zakat institutions are only good in collecting money, but not effective in helping the poor.

Previous zakat literature has focussed on different issues such as the determinants of zakat compliance behaviors, zakat fund management, distribution of funds, zakat information system and digital marketing; however, little is known about how and why zakat institutions adopt social media applications as a communication tool with the public. Thus, this research makes a difference by focussing on a new aspect of study in the zakat environment, which aims to explore the factors of social media adoption by zakat institutions. This study also proposes the new appropriate TOE framework to understand the adoption behaviour by the zakat institution towards social media application.

This study aims to identify the inputs from zakat administrators and experts needed for more efficient and effective zakat revenue generation.

Face-to-face interviews with zakat executives, administrators and experts are conducted to collect data.

The 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.

This 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.

This study will be helpful for policymakers, especially zakat authorities, on how to enhance their administration.

The model developed in this study will help the zakat administration to reform and enhance zakat compliance and zakat revenue generation.

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.

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.

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).

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.

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.

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

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

The purposive sampling technique used to determine the research samples limits the generalization of the study.

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.

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.

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.

This study aims to explore the current Shariah audit practices in zakat and waqf institutions in Malaysia.

A focus group discussion (FGD) with 38 zakat and waqf officers from 17 different zakat and waqf institutions in Malaysia was conducted. For reporting purposes, this study used a single-case study approach. The FGD was conducted and completed at the end of June 2021 via an online approach through Microsoft Teams.

The finding highlights the existing Shariah governance practices especially in terms of Shariah supervision roles, Shariah audit implementation in terms of Shariah audit scopes and common findings, Shariah audit competency, Shariah audit effectiveness especially the need for external Shariah audit function and Shariah audit issues and challenges faced in the implementation of Shariah audit practices.

The study findings and recommendations are useful for zakat and waqf institutions as well as the State Islamic Religious Councils to enhance Shariah audit practices in Malaysia.

This study is among the pioneer studies that explore Shariah audit practices in zakat and waqf institutions in Malaysia.

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

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.

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.

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.

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.

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.

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.

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.

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.