Zakat administration in Malaysia is a State matter in particular relating to the passing of regulations and statutes. The respective Heads of States (the rulers) are heads of Islam as enshrined in the Federal Constitution. This paper gives a chronicle of the transformation and phases of development of zakat institution in Malaysia.
Ref- Ab Rahman, A., Alias, M.H. and Omar, S.M.N.S., 2012. Zakat institution in Malaysia: Problems and issues. Global Journal Al-Thaqafah

The objective of this article is to analysis the related literatures on zakat between 2003 until 2013. The methodology of this article is through descriptive research based on document analysis on previous articles and literatures on zakat between 2003 until 2013. Data from each articles related in this field were collected and statistically analyzed using the Statistical Product & Service Solution (SPSS) software. This study looked at several variables which include authorship patterns, number of articles published, research approach, subject and gender of the author.
Ref- Johari, F., Ab Aziz, M.R. and Ali, A.F.M., 2014. A review on literatures of zakat between 2003-2013. Library Philosophy and Practice, p.0_1

Tawheedis the basis of Islamic faith. Mirza and Baydoun (1999, p. 2) define tawheed as “unity or oneness to God”. It is related to the belief that this universe and its contents are created by God, and human beings as khalifah(vice-regent) are responsible to manage the world’s resources and the ummah(community of believers) properly (Abdul-Rahman& Goddard, 1998; Sulaiman, 2003).Based on this concept, it is obvious that one needs to adhere to the Islamic requirements in every aspect of his or her life including religious, political, social, and economic activities in order to maintain a good relationship with God. This main concept constitutes the unique characteristics of the Islamic economic system as opposed to the conventional economy. One of the uniqueness of the Islamic economic system is the requirement to pay zakat.
Ref- Nadzri, F.A.A., AbdRahman, R. and Omar, N., 2012. Zakat and poverty alleviation: Roles of zakat institutions in Malaysia. International Journal of Arts and Commerce, 1(7), pp.61-72.

The purpose of this paper is to review the accounting treatments for corporate zakat, as advocated by accounting standards and guidelines, as well as those been practised by relevant corporations. The aim is to determine their appropriateness and adherence to both the Islamic as well as the accounting theoretical perspectives.
Ref- Adnan, M.A. and Bakar, N.B.A., 2009. Accounting treatment for corporate zakat: a critical review. International Journal of Islamic and Middle Eastern Finance and Management.

This study describes the characteristics of zakat institutions, which can be classified as institutions with good governance. This study summarizes the characteristics of good governance in zakat institutions that have been analyzed in previous research from various countries. Several studies were collected from Scopus-indexed journals with a Q1-Q4 range. This study used the “Charting the Field” method to sort the articles based on the topic, discussion, year, and source. We concluded that in order for a zakat institution to be considered a good-governance institution, it must meet several criteria, such as distribution criteria, efficiency, and financial reporting. Following these characteristics, this study also provides the positive impacts in zakat institutions if the institutions can perform good governance. The positive impacts obtained from previous research are poverty alleviation, the impact toward the users of zakat institutions, and the life guarantee for muallaf.
Ref- Zainal Alim Adiwijaya, E.S., 2020. Good governance of zakat institutions: A literature review. Journal of Southwest Jiaotong University, 55(2).

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.he 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.
Ref- Wahab, N.A. and Rahman, A.R.A., 2011. A framework to analyse the efficiency and governance of zakat institutions. Journal of Islamic Accounting and Business Research.

The Government of Indonesia has granted zakat fund as one of financial sources for the country in addition to tax fund. The collection and distribution of zakat fund should be improved continuously. For indonesia case, the number of research related to zakat potential is still limited. This study aims to estimate the potential of zakat in Indonesia and explore the relationship between demographic characteristics and zakat payment. The primary data were obtained through survey in two cities and two districts comprising 345 households, whereas the secondary data were obtained from many sources. The empirical analysis are done through descriptive and multivariate analysis. The results that total of all zakat potential in Indonesia from various sources is approximately 217 trillion rupiah. This number is equal to 3.4% of Indonesia’s 2010 GDP. The study s that education, occupation and income are important factors which influence respondent’s frequency and choice of place when paying zakat and alms.
Ref- Firdaus, M., Beik, I.S., Irawan, T. and Juanda, B., 2012. Economic estimation and determinations of Zakat potential in Indonesia. Jeddah: Islamic Research and Training Institute, pp.1-75.

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.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.
Ref- Owoyemi, M.Y., 2020. Zakat management: The crisis of confidence in zakat agencies and the legality of giving zakat directly to the poor. Journal of Islamic Accounting and Business Research.

Despite the increase in the amount of zakat being distributed to the recipients, there are complaints received from nafs with regard to the quality of services rendered to them. Hence, the objectives of this study are to identify the medium of information utilised by the recipients to obtain information on zakat distribution and to assess the satisfaction level of zakat recipients towards zakat management. Surprisingly, despite the advancement in technology, the findings reveal that the main medium utilized to obtain zakat information was by words of mouth. The findings of this study could be beneficial to the zakat institution to evaluate the efficiency of zakat management in meeting the needs of the zakat recipients.
Ref- Ahmad, R.A.R., Othman, A.M.A. and Salleh, M.S., 2015. Assessing the satisfaction level of zakat recipients towards zakat management. Procedia Economics and Finance, 31, pp.140-151.

Poverty in Malaysia is a controversial economic issue. The definition of poverty and the level of poverty among Malaysians have been disputed, and government policies to address poverty through the New Economic Policy are challenged by a variety of political protests. Malaysia falls under the classification of an upper middle income economy.The discussion throughout this paper will provide insights into the question concerning whether zakat can help to improve the quality of life of the asnaf, specifically the poor and the needy.
Ref- Embong, M.R., Taha, R. and Nor, M.N.M., 2013. Role of zakat to eradicate poverty in Malaysia. Jurnal pengurusan, 39.

In this paper, we present a model that integrates two traditional Islamic tools for poverty alleviation: Zakat and Awqaf, with the evolving concepts of Islamic microfinance. We also analyze the often-made criticisms of conventional micro-finance and attempt to develop the concept of an Islamic micro-financing institution that may overcome such short-comings. We elaborate on the overall framework of the proposed model, its sources of funds, investment modes and its management aspects.
Ref- Hassan, M.K. and Ashraf, A., 2010, January. An integrated poverty alleviation model combining zakat, awqaf and micro-finance. In Seventh International Conference–The Tawhidic Epistemology: Zakat and Waqf Economy, Bangi, Malaysia (pp. 261-281).

Zakat is intended to stimulate economic development, education, social, human resources empowerment, religion health, and insurance programs. The seven programs above are implemented by the Malaysian government to improve economic growth. The aim of the study is to examine the impact zakat on human development program in Malaysia using the Autoregressive Distributed Lag (ARDL) bound testing approach. The analysis was carried out for the period from 1980–2009. The finding of the research reveals that zakat has a positive and significant influence on human development in five state in the short and long run. Zakat in Malaysia can be used as tool of fiscal policy that is decided in the states of Malaysia to stimulate human development and economic growth in the long run.
Ref- Suprayitno, E., Aslam, M. and Harun, A., 2017. Zakat and SDGs: Impact zakat on human development in the five states of Malaysia. International Journal of Zakat, 2(1), pp.61-69.

Zakat is one of the five pillars in Islam where it can be assume as the obligation for those who admitted they are the believer and hold a faith only to Allah S.W.T. Zakat is the way of giving away a specific amount of wealth somehow with a certain settings and requirements to those who recognized as al-mustahiqqin (beneficiaries) and then the masjid (purpose) of paying the zakat is to guarantee the achievement of socioeconomic s impartiality and justice.A Quran verse explained [2:215] "They ask you about giving: say, "The charity you give shall go to the parents, the relatives, the orphans, the poor and the traveling alien." Any good you do, God is fully aware there of."Zakat is the most suitable ways of Islamic taught to encounter with the issues of poverty in Muslim society by allocation of one wealth to a significant beneficiaries. In order to collect and to distribute the zakat, Malaysia is doing well when they establishing an institution by regional to manage the zakat.
Ref- Ahmad Razimi, M.S., Romle, A.R. and Muhamad Erdris, M.F., 2016. Zakat management in Malaysia: A review. American-Eurasian Journal of Scientific Research, 11(6), pp.453-457.

This conceptual paper primarily draws on observations of other scholars in exchange theories based on zakat collectible and financial technology from the Islamic perspective. Those observations used analyzing a comprehensive view of the paper’s issue in using financial technology for collecting zakat in Indonesia. The literature indicates that there is always opportunity for amil zakat institution to use financial technology for collecting zakat because the strength of information technology in 4.0 era. Nevertheless there is always threat and weakness for using financial technology. It is hoped that to overcome these threat and weakness amil zakat institution can improve the skills of amil zakat to take advantage of the opportunities that exist.
Ref- Friantoro, D. and Zaki, K., 2018. Do we need financial technology for collecting zakat?. In International Conference of Zakat.

The aim of this paper is to identify factors that may influence the Muslims behaviour towards zakat on income. Academicians from three faculties in the International Islamic University Malaysia (IIUM) were used as sample in this study. They were sent self-developed questionnaires requiring them to indicate their level of agreement on certain factors which might influence them in paying zakat on income. Based on the mean ranking of those who pay zakat, the findings suggest that social, religious and economic factors prevail over the other relatively ‘self-centered’ factors. This study concludes by suggesting that there is a need for proper education on zakat which may eventually help the Ummah to benefit from the noble system of zakat.
Ref- Bakar, N.B.A. and Rashid, H.M.A., 2010. Motivations of paying zakat on income: Evidence from Malaysia. International Journal of Economics and Finance, 2(3), pp.76-84.

The initiatives include distribution of zakat funds productively and unproductive. Unproductive method that has been used before is a direct distribution of fund to asnaf. Recently, zakat institution has transformed the unproductive method to productive method. One of productive method is giving zakat fund to potential asnaf in the form of business capital, business tools, business financing and working salary. Each state in Malaysia has its own strategies in the productive zakat distribution to eligible recipients. Therefore, this study describes the productive zakat distribution by zakat institutions in Malaysia. The data obtained from the website of each zakat institution, zakat report, the annual report and previous studies were analyzed using content analysis method to describe management of zakat productive in Malaysia.
Ref- binti Ismail, I.A. and bin Hussain, M.N., 2017. Productive Zakat Distribution by Zakat Institutions in Malaysia. International Journal of Academic Research in Business and Social Sciences, 7(3), pp.554-565. .

The integrated zakat management system has been developed and needs innovations to be developed; several amil zakat institutions have utilized fintech as a more optimal services device in zakat management. This means that the fintech-based management of zakat will continue to grow and grow well, on both the market and consumer sides (especially for the aspect of demand), so it needs regulation, standardization and effort to guarantee the management of zakat using fintech media. This paper will offer concepts for the innovation, reinforcement, strategy, and legality regarding a technology-based management system for zakat, funded by the government or a relevant authority.
Ref- Rachman, M.A. and Salam, A.N., 2018. The reinforcement of zakat management through financial technology systems. International Journal of Zakat, 3(1), pp.57-69.

Islam provides a beautiful way of life in maintaining proper socio-economy of the ummah through the implementation of zakat. In this paper, the zakat distribution by way of zakat for Asnafs’ Business is looked at from the efforts made by Lembaga Zakat Selangor (LZS). Various entrepreneurship programmes have been carried out by LZS and these activities are strengthened by the corroboration with the expert parties. Zakat distribution is able to help the Asnafs (beneficiaries) in surviving life so as to alleviate poverty from the Muslim society. This Islamic socio-economic justice will beautifully reach its circle when the successful Asnafs who received the Zakat for Asnafs’ Business are no longer in need of the zakat, and in turn contribute to the zakat for the other Asnafs who are still surviving.Keywords: zakat distribution, Asnafs, Baitul Maal, Lembaga Zakat Selangor, Malaysia.
Ref- Harun, N.H., Hassan, H., Jasni, N.S. and Rahman, R.A., 2010. Zakat for asnafs' business by Lembaga Zakat Selangor. Management & Accounting Review (MAR), 9(2), pp.123-138.

Zakat regulation in Indonesia ruled that zakat could be utilized for productive purpose in order to handling the poor and improving the quality of the people. This study aims to review utilizing and accounting of zakat for productive purpose as well as practiced by zakat institutions. Zakat for productive purpose is usually associated with a loan or revolving funds. It caused the controversy among scholars. The different concept of zakat led to controversy about property rights and the treatment of zakat. This paper offers an alternative of utilization of zakat or infaq/sadaqat from fiqh consideration and accounting perspective.
Ref- Alim, M.N., 2015. Utilization and accounting of Zakat for productive purposes in Indonesia: A review. Procedia-Social and Behavioral Sciences, 211, pp.232-236.

The system of Zakat ensures proper distribution of wealth and has wide impact on the entire set up of the society. If Zakat is established as an institution, it will create a collective social security scheme for mutual help/sympathy and the resources can be further utilized for social development. This research paper is focused: to explicate the significance of Zakat as an institution, to elaborate impact of Zakat on social life of Muslim society as it is the basic theme of the study, to cultivate necessary awareness about basic theme among all sections of society particularly intellectual, elites and opinion leaders and to promote further research about the impact of Zakat on social life of Muslim society so that Zakat an institution is established in Muslim countries.
Ref- Abdullah, M. and Suhaib, A.Q., 2011. The impact of zakat on social life of Muslim society. pakistan Journal of islamic research, 8(1), pp.85-91.

The purpose of this paper is to investigate and explain the factors underlying the inclination of zakat payers to trust a particular zakat institution.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.
Ref- Mustafa, M.O.A., Mohamad, M.H.S. and Adnan, M.A., 2013. Antecedents of zakat payers' trust in an emerging zakat sector: an exploratory study. Journal of Islamic Accounting and Business Research.

This study aims to investigate the effects of zakat and business assistance on the growth and well-being of mustahiqs (zakat recipients). This study also investigates the impact of macroeconomic variables on the welfare of mutahiqs.Zakat empowerment programmes and business assistantships positively impact the growth of mustahiqs’ businesses, beneficial to their well-being. Nevertheless, their well-being is unaffected by the proxy of the macroeconomy.
Ref- Mawardi, I., Widiastuti, T., Al Mustofa, M.U. and Hakimi, F., 2022. Analyzing the impact of productive zakat on the welfare of zakat recipients. Journal of Islamic Accounting and Business Research, (ahead-of-print).

This study attempts to investigate the perceptions of zakat recipients (the end user) and the amil (the implementer) on whether localization of zakat distribution would be a possible solution to address the problem of zakat management in Malaysia. The study is motivated by the findings of previous studies that the Muslim society is still not satisfied with zakat management especially in zakat distribution. Data is collected using a survey questionnaire on a sample of amil and zakat recipients in Peninsular Malaysia and is analyzed using Structural Equation Modeling (SEM). Two questions we address here are: (a) how would amil and zakat recipients perceive the quality of current zakat management especially in the aspect of zakat distribution? and (b) What is the relationship between their perceptions towards zakat management and their views on the implementation of the localization concept? A negative relationship would imply that localization would be a viable solution to overcome the problem of zakat distribution in Malaysia.
Ref- Wahid, H. and Kader, R.A., 2010. Localization of Malaysian zakat distribution: Perceptions of amil and zakat recipients. In Proceedings of Seventh International Conference. The Tawhidi Epistemology: Zakat and Waqf Economy (pp. 461-484).

The purpose of this study is to explore and examine how much impact the zakat literacy among Indonesian Muslims has on the intention to pay zakat. This study also analyzes the intention to pay zakat when viewed from the level of factors in the theory of planned behavior. This research involves structural equation modeling (SEM) approach, which is done through AMOS software, with a sample of 280 muzakki. The results of this study stated the hypothesis that was tested as a whole was accepted, so that it can be concluded the higher level of attitude, subjective norms, and literacy about zakat owned by muzakki it will have implications for the higher intention of muzakki in his compliance zakat paying.
Ref- Yusfiyanto, R., Setiawan, A. and Nugraha, S.S., 2020. Literacy and intention to pay zakat. International Journal of Zakat, 5(1), pp.15-27.

Indonesia as a one of the most significant Muslim population in the world has developed zakat rapidly; it is n by the development of the zakat regulation and establishes of Badan Amil Zakat Nasional (BAZNAS). Zakat has many benefit for economic both of macro and micro aspect, such as foster inclusive economic growth. The result ed that zakat in Indonesia does not influence economic growth and welfare society. Besides that, welfare society Indonesia as a developing country has a negative value to HDI and GINI index but has a positive value to Percentage of Poor People.
Ref- Khasandy, E.A. and Badrudin, R., 2019. The influence of zakat on economic growth and welfare society in Indonesia.

The aim of this study is to investigate the factors affecting individual decisions in zakat contribution hence, provide an understanding of their motivation. In this exploratory study, factor analysis has been used to provide insights into the underlying structure of motivating factors of individuals participating in zakat. Data was collected using a survey questionnaire that was designed based on past studies from both the conventional as well as Islamic literature. The main dimensions were characterized by religious, utilitarian, self satisfaction and organization factors. In the analysis, the factor extraction method used was the principal component method with the Varimax rotation.
Ref- Muda, M., Marzuki, A. and Shaharuddin, A., 2006. Factors influencing individual participation in zakat contribution: Exploratory investigation.

This paper attempts to study the potential direct and indirect effects of zakat implementation on the Government's budget within the context of contemporary society. In developing the arguments, seven assumptions are made in the article, and the case of Pakistan is taken as an example. The author argues that there is a potential direct substitution effect of zakat in replacing certain items of the Government budget that corresponds to the seven recipients of zakat. Hence, the amount of zakat proceeds spent on them must reduce an equivalent amount in the budget, thus making it possible to release budgetary revenues for other social needs. In addition, the author argues that there are also potential indirect effects of zakat implementation on productivity and the ability to be taxed, on aggregate consumption and investment, on employment, and on the amenability of zakat to be a tool of government economic policy.
Ref- Kahf, M., 1997. Potential effects of zakat on the government budget. IIUM Journal of Economics and Management, 5(1), pp.67-85.

This study evaluates the efficiency of Indonesian Zakat Institutions (IZI), including technical, pure technical and scale efficiencies using a production approach. This study also examines the sources of inefficiency. By employing the Data Envelopment Analysis (DEA) technique, this study proposes a solution to improving the efficiency of IZI. The input variables of this study are the number of amil, the number of volunteers, the number of offices, socialization costs, personnel costs, and operational costs.
Ref- Al-Ayubi, S. and Possumah, B.T., 2018. Examining the efficiency of zakat management: Indonesian zakat institutions experiences. International Journal of Zakat, 3(1), pp.37-55.

This study aims to find out how the benefits of productive zakat applied in LAZISMu are then also the model applied in the empowerment of mustahik so that it is known whether the income mustahik after getting productive zakat funds from LAZISMu there is an increase or change in terms of income, business ethics and the ability to pay ZIS . LAZISMu in making productive zakat through economic programs that aim to create entrepreneurs and provide new jobs for people who do not have jobs.
Ref- Amsari, S. and Nasution, S., 2020, January. Benefits Of Productive Zakat In Increasing Mustahik Revenue In Lazismu Center. In Proceeding International Seminar Of Islamic Studies (Vol. 1, No. 1, pp. 141-150).

Zakah and its problems are as old as the Islamic civilization. This Islamic financial instrument is mandatory for Muslims who are capable and expected to reduce the poverty of the people. The potential of zakah in Indonesia reaching 217 trillion rupiah Indonesia’s GDP should be able to be explored and distributed to Indonesian Muslims as effectively as possible.The concept of localization/ decentralization can be considered as the best way in zakah disbursement. The concept of localization/zoning or decentralization in the distribution of zakah funds closely matches the concept of Sharma in the tax disbursement issue that states that the transfer of power, resources and responsibilities from the center to the regions is more effective in alleviating poverty in Indonesia.
Ref- Masyita, D., 2018. Lessons Learned of Zakat Management from Different Era and Countries. Al-Iqtishad Journal of Islamic Economics, 10(2), pp.441-456.

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.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.
Ref- Kasri, R.A. and Yuniar, A.M., 2021. Determinants of digital zakat payments: lessons from Indonesian experience. Journal of Islamic Accounting and Business Research, 12(3), pp.362-379.

This paper examines the practice and implementation of Zakat as a social institution in Malaysia, and its governance in achieving the Muslim socio-economic welfare and well-being. For this analysis, the Selangor Zakat Authority (LZS-MAIS) is selected to present an example of governing zakat as a social institution in Malaysia.
Ref- Kaslam, S., 2009. Governing zakat as a social institution: The Malaysian perspective. Social and Management Research Journal (SMRJ), 6(1), pp.15-32.

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.
Ref- Bin-Nashwan, S.A., Abdul-Jabbar, H. and Aziz, S.A., 2021. Does trust in zakat institution enhance entrepreneurs’ zakat compliance?. Journal of Islamic Accounting and Business Research.

The purpose of this paper is to analyse the efficiency of zakat institutions in Malaysia. This study uses the Malmquist Productivity Index to estimate productivity and efficiency of zakat institutions in Malaysia and the Tobit model to determine the factors affecting efficiency of zakat institutions in Malaysia. The data consists of a panel of fourteen zakat institutions in Malaysia during the period of 2003 to 2007. Our results suggest that Total Factor Productivity (TFP) of zakat institutions in Malaysia increased at an average rate of 2.4 per cent during the study period and is mainly attributed to technical progress rather than efficiency components.
Ref: Wahab, N.A. and Rahman, A.R.A., 2013. Determinants of efficiency of zakat institutions in Malaysia: A non-parametric approach. Asian Journal of Business and Accounting, 6(2).

The purpose of this paper is to determine the need of Zakat as a financial system in order to evaluate the growth of economic. Reviewing the conceptual framework of Islamic economic to propose an alternative model in order to contribute significantly to the Ummah and serving the nations. This paper concludes to be regarded Zakat as one of the proper method to measure the economic growth, which means, when people pay Zakat the level of economic growth will be higher and vise versa. In other words, the commitments of Muslims to pay Zakat to the eight categories to achieve sustainable development in terms of redistribution of wealth between Muslims as well as bridging the gap between the rich and the poor in the society. This paper also contributes to consider Zakat as a proper index to measure economic growth through a number of methods to evaluate the economic growth.
Ref: Islam, M.S. and Amosa, I.L., 2012. Zakat as a benchmark to evaluate economic growth: An alternative approach. International Journal of Business and Social Science, 3(18).

During the study period, our results suggest that pure technical efficiency rather than scale inefficiency has resulted in the zakat institutions inefficiency. This could be due to the inability of the institutions in using the technology available to collect more zakat collections and distribute it to the recipients. Examination of the return to scale revealed that more than half of the zakat institutions in Malaysia were scale-inefficient (operating at DRS or IRS). The empirical findings suggest that the zakat payment system, computerized zakat system, board size, audit committee, and decentralization significantly affect the efficiency of zakat institutions in Malaysia.
Ref: Wahab, N.A. and Rahman, A.R.A., 2015. Efficiency of zakat institutions and its determinants. Access to Finance and Human Development—Essays on Zakah, Awqaf and Microfinance, 33.

Zakat and tax are the material obligations of a citizen of his country and are a source of state income used to finance state expenses and needs. the position of zakat cannot be replaced by taxation. the problem in Indonesia where the majority of the population is Muslim, in addition to being obligatory zakat they are also burdened with various taxes, so that a middle way can be taken,namely reducing the amount of tax by the amount of zakat that has been paid. Thus a taxpayer can still pay obligations as citizens and continue to fulfill their religious obligations
Ref: Marpaung, A., 2020. Zakat Regulation as a Reduction of Income Tax in Indonesia. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol, 3(3), pp.2109-2116.

Zakat accounting includes the accounting principles that relate not only to measurement and valuation but also recording, interpreting, presentation and disclosure of accounting information. Thus, the main objective of this paper is to elaborate the importance of Islamic accounting valuation adopted in zakat regard to accounting models. The application and mechanics of zakat and valuation model discussed related to the implementation of the current practices of accounting and valuation models that adopted in Islamic firms.
Ref: Ahmed, E.R., Aiffin, K.H.B., Alabdullah, T.T.Y. and Zuqebah, A., 2016. Zakat and accounting valuation model. Journal of Reviews on Global Economics, 5, pp.16-24.

This paper attempts to elaborate the importance of standardization of zakat system at global level. It is extremely important in order to optimize global zakat potential that reaches 1.8% to 4.34% from GDP of the OIC member countries according to Kahf. Four basic issues of standardization have been deeply discussed in the paper. Document of zakat core principles has also been elaborated in order to provide better comprehension on the aspects that need to be standardized. Finally, this paper identifies four important stages as the way forward.
Ref: Beik, I.S., 2015. Towards international standardization of zakat system. In Fiqh Zakat International Conference (pp. 3-17).

This research paper aims to examine the impact of zakat distribution on growth in the Federal Territory Malaysia. Specifically, an econometric study is carried out to examine the ability of zakat expenditure to affect real economic growth in the Federal Territory Malaysia by employing various econometric procedures such as the unit root tests, the cointegration tests, the vector error-correction model (VECM), and the Granger causality tests. The findings of the study suggest that zakat expenditure has a positive relationship with real GDP in the long-run. The Granger causality test indicates that zakat spending causes real economic growth with no feedback. In other words, zakat expenditure could boost GDP in the Federal Territory Malaysia both in the short-run and long-run.
Ref: Yusoff, M.B., 2012. Zakat distribution and growth in the federal territory of Malaysia. Journal of Economics and Behavioral Studies, 4(8), pp.449-456.

This study aims to analyze the role of digitalization in zakat management during the Covid-19 pandemic. Furthermore, it also aims to analyze the strengths, weaknesses, opportunities, and threats of zakat digitization in Indonesia. The method used in this research is a qualitative method with a literature study and a SWOT analysis approach. Literature shows that using digital platforms to collect, manage, and distribute zakat is very useful, especially during the Covid-19 pandemic, because it provides much convenience for its users. However, digital platforms have weaknesses and threats both for zakat institutions and for muzaki and mustahik. To overcome these threats and weaknesses, zakat institutions can make various strategies by utilizing existing strengths and opportunities. This strategy is made so that the collection and distribution of zakat funds can be appropriately optimized and have a tremendous impact on the community's welfare, especially for the poor who are affected by Covid-19.
Ref: Ninglasari, S.Y. and Muhammad, M., 2021. Zakat digitalization: effectiveness of zakat management in the COVID-19 pandemic era. Journal of Islamic Economic Laws, 4(1).

This paper aims to construct a conceptual framework which explains the relationship between governance of zakat institutions and zakat payment compliance by using the organizational legitimacy theory.The paper has developed a model, adapted from Abioye et al. (2013), concerning the influence of governance mechanisms on zakat payers’ compliance using trust as a moderator. The model comprises four governance mechanisms which influence zakat payment compliance.
Ref - Sawmar, A.A. and Mohammed, M.O., 2021. Enhancing zakat compliance through good governance: a conceptual framework. ISRA International Journal of Islamic Finance.

Zakat is an important form of religiously-mandated charity under Islam. This paper examines its impact on income inequality in Pakistan. Data from 1987–88 are used to construct two income distributions-one that would have obtained if zakat had not been given, and one that did obtain when such giving took place. Atkinson-Kolm-Sen relative indices of income inequality are computed which show that zakat does reduce measured income inequality in Pakistan. Both intra-province and inter-province components of over-all inequality decline, though the amount of change is smal
Ref - Jehle, G.A., 1994. Zakat and inequality: Some evidence from Pakistan. Review of Income and Wealth, 40(2), pp.205-216.

This study aims to examine the factors influencing the intention to comply with business zakat in a developing country.Results indicate attitudes toward zakat evasion, attitudes toward moral reasoning, peer influence, zakat knowledge, zakat distribution and perceived zakat board capital positively and significantly influence intention to pay zakat. Interestingly, the enforcement of zakat law was found to significantly influence intention but in a negative direction.
Ref - Saad, R.A.J., Farouk, A.U. and Kadir, D.A., 2020. Business zakat compliance behavioral intention in a developing country. Journal of Islamic Accounting and Business Research.

The findings show that the digitalization variable of zakat payment or zakat payment (X) influences the potential for zakat receipt (Y) of 55.9%, and the remaining 40.1% is influenced by other factors not considered. Based on the results of deepening between the theory and practice of digital zakat revealed that the challenges in efforts to increase the potential for digital zakat acceptance in Indonesia are internet access which is still weak and uneven in Indonesian territory, building an ‘attachment’ relationship between mustahiq, muzzaki and BAZNAS, and the application of principles of sharia in the management of zakat. Therefore, the research explains the strategies that can be done to answer the challenges of digital zakat.
Ref - Utami, P., Suryanto, T., Nasor, M. and Ghofur, R.A., 2020. The effect digitalization zakat payment against potential of zakat acceptance in national Amil zakat agency. Iqtishadia, 13(2), p.216

This paper will propose the attainment of food security through the mechanism of Zakat. Zakat is an Islamic Financial Instrument. Simply put, it is a charity on accumulated wealth that is mandatory in the religion of Islam. It is a unique tool for mobilization of resources from haves to have-nots. The paper will examine the utilization of zakat funds for building food reserves. It will discuss profit-and-loss partnerships among small-scale agro producers and zakat institutions which facilitates sourcing, training and creating market access. The paper will draw on proven historical examples as well as on recent empirical data on the utilization of zakat as an effective tool for combating social and economic challenges.
Ref - Laila, T., 2009. Zakat Based Solutions to Food Security. In 4th Garnet Annual Conference, Rome.

In states that are diverse, issues of national identity formation and who belongs and how they belong can, and often do, change over time. This article analyses how education was used as a tool to artificially create antagonistic national identities based on religious and ethnic definitions of who was Indian or Pakistani. It focuses in particular on how in India the BJP led government (1998–2004) and in Pakistan the government under General Zia‐ul‐Haq (1977–1988) rewrote the curricula and changed textbook content in order to create the ‘other’ in order to suit their ideology and the politics of the day. Drawing on the original textbooks, extensive fieldwork interviews in both countries and a study of recent literature the paper argues that fundamentalization in general and the fundamentalization of textbooks in particular are state controlled mechanisms through which to control society. They can also have serious international consequences, as two antagonistic national identities oppose each other's definition of history and self.
Ref - Lall, M., 2008. Educate to hate: The use of education in the creation of antagonistic national identities in India and Pakistan. Compare, 38(1), pp.103-119.

The case study sheds light on how the use and management of zakat are evolving in Egypt and points the way to the development of modernized models that build on traditional zakat institutions to meet Egypt’s development needs. Reform of zakat along the lines pioneered in Southeast Asia, particularly a shift from traditional charity to incorporate greater support to sustainable poverty alleviation, would potentially mobilize greater zakat donation, raise transparency and accountability, expand the scope for collaboration with community-based civil society groups and corporations, and increase the impact of this central Islamic institution. This article analyses how education was used as a tool to artificially create antagonistic national identities based on religious and ethnic definitions of who was Indian or Pakistani. It focuses in particular on how in India the BJP led government (1998–2004) and in Pakistan the government under General Zia‐ul‐Haq (1977–1988) rewrote the curricula and changed textbook content in order to create the ‘other’ in order to suit their ideology and the politics of the day. Drawing on the original textbooks, extensive fieldwork interviews in both countries and a study of recent literature the paper argues that fundamentalization in general and the fundamentalization of textbooks in particular are state controlled mechanisms through which to control society. They can also have serious international consequences, as two antagonistic national identities oppose each other's definition of history and self.
Ref - Bremer, J., 2013, June. Zakat and economic justice: Emerging international models and their relevance for Egypt. In Third Annual Conference on Arab Philantrophy and Civic Engagement (Vol. 51, p. 74).

The coronavirus pandemic brought misfortune to low-income households throughout India. This narrative describes the proactive responses of community group to the challenges posed by the COVID-19 pandemic and its consequent nation-wide lockdown that resulted into high influx of migrant laborers back home. The adversities of the lockdown led to a community group serving the less privileged in the community.
Ref - Alam, I., 2022. “No one can budge me away from this noble objective”-a community group responds to the COVID-19 pandemic in India. Social Work with Groups, 45(1), pp.81-87.

Zakat is third pillar of the religion Islam. Every Muslim who is capable of paying zakat shall do so without an excuse. In Islam, there are two types of zakat; which is zakat al-fitr and zakat al-maal. Irrespective of the country in which a person resides and the legal system adopted by the country, every Muslim is obliged to pay Zakat as long as the person fulfils the religious requirements to give it. In simple term, zakat can be defined as almsgiving. Zakat literally means to purify or increase or grow. This literal meaning of zakat indicates that via zakat a person’s wealth can be purified and this lead one’s wealth to grow and be increased not only physically, but spiritually as paying zakat leads to increase of barakah (blessing) of Allah (SW) in one’s wealth. In the Holy book of Muslim, Al Quran, more than 30 different verses Allah (SW) has mentioned zakat. In al-Quran Zakat has been described as a way in which the redistribution of wealth is practised in an economy considering the rights of the poor that must be fulfilled by those who are financially capable in the society. After Indonesia, India is the largest country in terms of Muslim population. It is estimated that there are 17.18 crore Muslims in India accounting for 14.2 per cent of India’s population and there is no exact estimate on how much Zakat is collected in India, with estimates fluctuating between Rs 7,500 crore and Rs 40,000 crore annually (Shaikh, 2019). As such, administration of zakat in India is important and there is a need to effectively manage zakat. The objective of this paper is to suggest the ways in which technology could enhance the administration of zakat in 88 International Journal of Zakat Vol. 4(2) 2019 India. This paper is divided into four parts. Followed by this introduction, part two discusses the existing akat administration practices in Indian while part three explains the technological innovations made in different parts of the world to administer zakat which India could adopt. The final part of the paper deals with conclusion.
Ref - Muneeza, Aishath & Nadwi, Shahbaz. (2019). The Potential of Application of Technology-Based Innovations for Zakat Administration in India. International Journal of Zakat. 4. 87-100. 10.37706/ijaz.v4i2.191

The Zakat system bridges the gap between the rich and the impoverished and protects the dignity of the poor,” Mansoor said.
In countries like Malaysia, Indonesia and Brunei the state directly collects and distributes Zakat. In non-Muslim countries like the US, UK and India many organizations do the job in an organized manner.
Mansoor said the Zakat system is akin to provident fund. “Zakat is a kind of cooperative society for Muslims. It’s an insurance company akin to provident fund. It supports the unemployed, the destitute, the sick, widows and orphans and frees Muslims from tomorrow’s worries and anxieties,” he said quoting Maulana Abul Aala Moudoodi, a prominent Islamic scholar and winner of King Faisal Prize for Service to Islam.
“The best way to make this insurance company successful is to pay the premium of 2.5% from our wealth,” the vice chancellor said in his keynote speech while emphasizing the need to institutionalize Zakat to make the system more effective and beneficial.
“If we implement Islamic principles and teachings honestly and effectively it can solve all our problems. During the time of Caliph Omar Bin Abdul Aziz it was difficult to find a recipient of Zakat because of progress and prosperity enjoyed by people as a result of his rule,” he explained.
P. Mujeebrahman, chairman of People’s Foundation, the chief organizer of the event, said Muslims in India can mobilize huge amounts of money in Zakat annually if effective measures have been taken to collect it.
Speaking to Saudi Gazette, he said, Zakat can be used to carry out many social welfare projects in the country including construction of homes for the needy and providing medical assistance to poor patients.
India is home to the second largest Muslim population in the world. Analysts believe that the yearly Zakat output of India ought to be to the tune of 200 billion rupees. Affluent Kerala Muslims can contribute between 20 billion to 30 billion rupees to the Zakat fund annually.
M.I. Abdul Aziz, president of Jamaat-e-Islami in Kerala, presided over the opening session. M.I. Shanavas, a Parliament member, Kochouseph Chittilappilly, chairman and CEO of V-Guard Industries, Abdul Qadir Buhari, chairman BSA Crescent Institute of Science and Technology and C.P. John, former planning board member, Kerala were other speakers.
Chittilappilly said all religions have given importance to charitable activities. “Muslims should be ready to give alms not only in Ramadan but throughout the year to uplift the downtrodden,” he added.
Buhari said his company has developed an advanced electronic platform (Ketto.org) to collect Zakat. “Within a short span it was able to collect 1.8 billion rupees,” he said, adding that e-zakat system can be effectively implemented in India.
John said the Zakat system would contribute to reducing economic disparity in the community. “It also plays a big role in protecting self-respect of the poor. Zakat must be distributed at homes of the poor,” he pointed out.
He equaled the impact of Zakat in Kerala to the state government’s financial support to Panchayats. “In Malappuram district of Kerala, Zakat is given to the needy, irrespective of their cast and creed,” he added.
nternational speakers who presented papers in the conference included Dr. Ali Al-Quradaghi who gave a presentation on the modern economic domains in light of Zakat, and Dr. Ajeel Al-Nashmi presented a paper on Zakat policies, social services and developmental approaches.
Dr. Mohammed Ayub Mian spoke on Zakat management in Bangladesh, Muneer Rafeeq of International Islamic University, Malaysia, explained Zakat collection and distribution in his country.
Ref - Muneeza, Aishath & Nadwi, Shahbaz. (2019). The Potential of Application of Technology-Based Innovations for Zakat Administration in India. International Journal of Zakat. 4. 87-100. 10.37706/ijaz.v4i2.191

Zakah is not a tax in the real sense. There is no authority to enforce it, apart from the conscience of the human being. Islam states that if a person possesses a minimum level of wealth for a complete Islamic year, he or she is required to pay Zakah 2.5% on this wealth. This is minimum level is termed as ‘Nisab’. Wealth for Zakah includes Gold, Silver, Live stock and Trade goods. The calculation of Zakah, based on gold and silver, can be used to explain the concept with ease: Zakat fund-concept and perspective 199 The possession of three ounces of gold or 21 ounces of silver or its equivalent in cash for a year, entitles one for a payment of Zakat. If both these metals separately do not reach the Nisab level then they should be clubbed together to calculate the value of wealth. To illustrate, One ounce = 28 gms Three ounces = 28 × 3 = 84 gms 21 ounces = 21 × 28 = 588 gms. The prevailing market rates of these two bullions in September, 2006 in India were: One gram of gold was worth Rs. 880 and one gram of silver was worth Rs. 17. Therefore, 84 gms of gold was worth 84 880 = Rs. 73,920 and 588 gms of silver was worth 588 17 = Rs. 9996. × × This means if a person had Rs. 9996 of silver or cash for a year, he or she was entitled to pay Zakah 2.5% of the above amount of Rs. 9996. If we include the calculations of live stock and trade goods, then the minimum required level of all the four should be taken as the Nisab level. If any of these four does not individually does not fulfil the minimum criteria, then all parts should be combined to calculate the wealth and the lowest of all limits should be taken as the Nisab level.
Ref - Zaid, O.A. (2004) ‘Accounting systems and recording procedures in the early Islamic state’, Accounting Historians Journal, Vol. 31, No. 2, pp.149–170.

The payment of Zakah has a healthy impact on the giver, the recipient and the society at large. It purifies the assets of the giver, restrains his or her lust for material goods and creates in him the virtue of sharing the wealth with others. It uplifts the giver from a life with a purpose of materialistic pursuits to a life endowed with moral purpose. Zakat satisfies the recipient’s needs and alleviates his suffering. Islam, instead of abandoning the poor, makes a compulsory payment to them from the rich to reduce the rich-poor divide, which is increasing, especially in the modern capitalist economies.
Ref - Fuad, M. (2004) ‘Islam, Modernity and Muhammaadiyah’s educational programme’, Inter-Asia Cultural Studies, Vol. 5, No. 3, pp.400–414. Hassan, M.K. and Khan, J.M. (2007) ‘Zakat, external deb

According to IRTI Islamic Social Finance Report (2017), there is no reliable data available from official sources of India regarding zakat collection or distribution, because the process is largely controlled by the ulama, religious seminaries and informal organisations that often operate in a regulatory vacuum and lack transparency in financial reporting regarding zakat collection. Individuals may also pay a small percentage of zakat directly to their friends, neighbours, and relatives in need without any formal method of reporting. There is no recent study to calculate the money that is collected as zakat across the country. Dr Rahmatullah of All India Council of Muslim Economic Upliftment (AICMEU) tried to estimate the amount several years ago using government and independent statistics on per capita income and charity. He estimated a total of INR 100,000 million
Ref - Alam, S. and Ahmed, M.U., 2020. A CRITIQUE OF ZAKAT PRACTICES IN INDIA. Journal website: journal. zakatkedah. com. my, 2(2).

The behavior of individual Islamic donors who make a specific type of religious contribution called zakat is explored in this study. It aims to provide a fundamental understanding of the factors that govern the behavior of these donors, including triggers, motivators, traits, attributes, and preferences. Hierarchical cluster analysis is employed to develop psychographic profiles of individual Islamic donors or groups among them. Interestingly, two of the three clusters closely resemble subsets of the overall sample when disaggregated by the donor’s country of origin. This suggests that Islamic donors from different countries may exhibit distinct behavioral patterns. The study emphasizes the importance of recognizing the diversity among zakat donors and suggests that a donor’s national identity, associated with unique social, economic, legal, and political environments, can significantly influence how they engage with matters related to faith. The evidence underscores the need to consider this diversity when developing core principles, regulatory standards, institutional infrastructure, and governance models for the growth of the global Islamic social finance sector.
Ref - Obaidullah, M. and Manap, T.A.A., 2017. Behavioral dimensions of Islamic Philanthropy: the case of Zakat. In Financial Inclusion and Poverty Alleviation (pp. 219-243). Palgrave Macmillan, Cham.

The obligatory “alms-tax” of zakat constitutes an enduring site for exploring the intersection of Islam and society. This ethnographic case study of a contemporary zakat foundation in India traces how zakat occasions the experimental formation of Islamic social ethics, including a critique of gender. Donors of zakat attempt to move beyond merely helping the poor through the redistribution of resources. They reconfigure the giving of zakat to affect the structural conditions of poverty by generating a counter-cultural critique of the practice of giving dowry. Such efforts disclose how zakat can function as a practical theodicy, a way to counter the normalized evil of assigned disposability. By encouraging reflexivity and responsiveness, the obligation to distribute zakat becomes framed as a way to disrupt precarity.
Ref- Abraham, D.W., 2018. Zakat as practical theodicy: precarity and the critique of gender in Muslim India. Journal of Muslim Philanthropy & Civil Society, 2(1), pp.21-21.

Muslims are the largest minority in India, yet the federal government has, in place, just a single Muslim-specific poverty alleviation scheme, which is utterly insufficient to meet their financial needs. Hence, in the face of governmental apathy and indifferent attitude, Muslims are left to fend for themselves. In this scenario, Zakāt turns out to be a more-than-handy tool to alleviate poverty among Muslims in India. Zakāt, over the years, has manifested itself as a successful means to meet the financial needs of developmental activities across various levels, including in non-Muslim countries. Zakāt possesses a robust potential to play a critical role in implementing the Sustainable Development Goals (SDGs) to alleviate the poverty of Muslims in a Hindu-majority country like India.
Ref - Intezar, M.T. and Zia, S.B., 2021. Zakat, SDGs, and Poverty Alleviation of Muslims in India. In Impact of Zakat on Sustainable Economic Development (pp. 1-20). IGI Global.

Islamic almsgiving is on the rise among Muslims in India, as charitable donations by individuals come to supplant landed endowments as the lifeblood of many Islamic associations. Techniques of mass fundraising in India by Islamic revivalist movements such as Deoband facilitated their expansion across the subcontinent. Such fundraising depended on documentary practices such as verification letters, lists of donors, and receipts for donations. This article illustrates how charity receipts and other documents that change hands in ritual Islamic almsgiving are also a key part of new Indian Muslim collective identities. Moral ties as well as money circulate in this Islamic charity economy. Financial documents are Islamic philanthropy's answer to ‘print capitalism’, serving as material rituals of symbolic community across vast distances. Moreover, the use of documents in traditional Islamic almsgiving is also inflecting pious Muslims’ spiritualities. Islamic charity receipts in particular are contributing to the individualization of religiosity among Lucknow Muslims. New modes of accounting (originally intended to ensure financial compliance) also allow Muslim almsgivers to ‘account’ for accrued piety in a perceived spiritual merit economy.
Ref - Taylor, C.B., 2018. Receipts and other forms of Islamic charity: Accounting for piety in modern North India. Modern Asian Studies, 52(1), pp.266-296.

TRA is a basic general model for understanding an individual’s behavior (Ajzen, 1985). TRA clarifies that the most important determinant for a particular behavior is intention; a form of motivation that influences the behavior of a person. Intention is also the most powerful driver for a person to do something. This is because a person will do something based on his/her intention to do it. The stronger the person’s intention to perform the behavior, the higher is the probability that such behavior will be executed. A similar relationship is also expected to exist in the context of business zakah behavior.
Ref - Saad, R.A.J. and Haniffa, R. (2014) Determinants of zakah (Islamic tax) compliance behavior, Journal of Islamic Accounting and Business Research. Emerald Group Publishing Limited. Available at: https://www.emerald.com/insight/content/doi/10.1108/JIABR-10-2012-0068/full/html

India does not have a regulatory organization or infrastructure for zakat management. Payment of zakat is voluntary as it is widely seen as an act of worship. The government does not intervene in zakat management in any way. Most personal zakat collections go to religious schools and institutions. Poverty is rampant in all developing countries, but the plight of the Muslims in India is among the worst. The collection and distribution of zakat funds in the majority of Muslim countries are the responsibility of religious authorities, and in India, a huge portion of zakat is appropriated by madrasas scattered all over the country. Especially in the month of Ramadan, they send their employees all over India to collect zakat and voluntary donations.
Ref- Alam, S. and Ahmed, M.U., 2020. A CRITIQUE OF ZAKAT PRACTICES IN INDIA. Journal website: journal. zakatkedah. com. my, 2(2).

The entire economic scheme developed under the guiding principles of Shari’ah (Islamic Law) envisages an internally balanced system of economy that neither accepts capitalism nor communism in totality. According to the laws, the realization of justice (a’dl) and wellbeing (falah), i.e., the means to seek blessings of God (fadhl al-Allah), determines its principal objectives (maqasid). Nevertheless, the economic structures adopted by the contemporary Muslim societies, in general, are incoherent with the economic philosophy of Islam. They are practically disconnected from the mechanics and efficiency of Islam’s equity instruments and philanthropic institutions. Consequently, as per Marx’s class conflict theory, economic inequality has spread its roots and traumatized the dynamics of participatory economics, distributive justice, and social equality. The entire economic scheme developed under the guiding principles of Shari’ah (Islamic Law) envisages an internally balanced system of economy that neither accepts capitalism nor communism in totality. According to the laws, the realization of justice and wellbeing (falah), i.e., the means to seek blessings of God (fadhl al-Allah), determines its principal objectives (maqasid). Nevertheless, the economic structures adopted by the contemporary Muslim societies, in general, are incoherent with the economic philosophy of Islam. They are practically disconnected from the mechanics and efficiency of Islam’s equity instruments and philanthropic institutions. Consequently, as per Marx’s class conflict theory, economic inequality has spread its roots and traumatized the dynamics of participatory economics, distributive justice, and social equality.
Ref - Malik, B.A., 2016. Philanthropy in practice: role of zakat in the realization of justice and economic growth. International Journal of Zakat, 1(1), pp.64-77.

The Internet of Things (IoT) is described as the network of physical objects - 'things' or objects - that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the Internet. Today, using IoT, it is possible to measure the stress level and the poverty level of a household. As such, there is no reason why zakat distribution to the poor can be enhanced via linking it with IoT. The advantage of this could be that the poor who register with zakat administration authorities will have to register a single time, and via the data received from the household, the zakat administrator can determine whether the household is eligible to receive zakat. The zakat can then be delivered via a QR code through the smart gadget with a sensor connected to the internet that collects the data from the household, or by physical delivery of zakat to them by locating their geographical location through GPS tracking-enabled features embedded in the smart gadget.
Ref - Muneeza, A., 2021. Enhancing zakat distribution with IoT: eliminating multiple registration by poor to receive zakat.

According to (Qardawi, 1999), Zakat in language is an infinitive of the verb Zakat. Zakat means to grow and to increase. When it is said about a person, it means to improve, to become better. A Zakat recipient is meant to grow, improve, and become better so as to keep the cycle and become a Zakat payer later and extend a giving hand to the next person. However, Zakat is often misunderstood by the people who often regard it as only a means of charity given out by the rich to the poor and the needy (Billah, 2016). To avoid the distribution of Zakat according to our whims or personal preferences (Qardawi, Fiqh Al Zakat Volume 2), Allah distributed Zakat Himself in the Quran, chapter 90: “Indeed, Zakat expenditures are only for the poor and for the needy and for those employed to collect (Zakat) and for bringing hearts together (for Islam) and for freeing captives and for those in debt for the cause of Allah and for the stranded traveler. An obligation imposed by Allah. And Allah is knowing and Wise.”
Ref - Hamzah, N., Zakat: Poverty Alleviation Tool or Charity Instrument. A paper presented at the International Zakat Conference Kerala, India, April 27-29, 2018.

Planning, organising, executing, and controlling are all part of management, which aims to accomplish a specified goal. Organizational goals will be difficult to fulfil in the absence of sound management. Planning, organising, and coordinating zakat management at the Zakat Institution is an important part of zakat management's role. Zakat management's objective is to ensure that zakat is delivered appropriately and professionally in order to improve the recipient's quality of life. Zakat management gives the Zakir the financial freedom and social mobility he needs to achieve his full potential. Programs for empowerment are overseen by Zakat management to ensure their beneficiaries' well-being. There are two types of Zakat distribution: consumptive and productive. Zakat can be delivered successfully through zakat empowerment programs, which may include micro-enterprises and micro businesses. Indians still use Zakat to fulfil their basic needs. Though Zakat distribution is expected to be turned into an economic form in the future. The quality of a company's workforce is also a factor in its success. According to Samad (2013), the effectiveness of a company's operations is heavily influenced by the level of creativity and expertise of its employees. Human resources can be improved by giving them more power. According to Munjuri and K'Obonyo (2015), empowering human resources has a significant impact on productivity, income, and operational efficiencies.
Ref - Khan, M.A., 2022. Role of Zakat in Business Growth and Empowerment Program: An Empirical Study. International Journal of Accounting, 10(1), pp.1-11.

This study aimed to explain the conceptual role of Zakat on sustainable economic development by Rumah Zakat. Rumah Zakat is a philanthropic institution that manages zakat and other social funds through community empowerment programs. In running the program, including economic empowerment and socio-health services, are designed for these recipients. Rumah Zakat's connection with the establishment of SDGs (Sustainable Development Goals) is to help impoverished recipients economically and socially. The primary goal of Zakat on sustainable economic development is not only limited to economic variables, but based on Islamic principles, it has comprehensive characteristics. These characteristics include moral, material, spiritual, and social aspects. In other words, sustainable economic development is closely related to improving people's living standards. The purpose of this study was to identify the role of Zakat on sustainable economic development, which was applied by Rumah Zakat.
Ref - Muliadi, Selamat. (2020). The Role of Zakat on Sustainable Economic Development by Rumah Zakat. International Conference of Zakat. 355-370. 10.37706/iconz.2020.208.

The importance of the Zakat system in maintaining the economic balance of human society is immense. According to Islamic law, Zakat is a way to free society from the destructive effects of capitalism by controlling the unbridled accumulation of wealth. On the other hand, through this Zakat, a society with a just and balanced economy is formed by eliminating the inequality between the rich and the poor. The main purpose of Islam is not to accumulate and store wealth according to the provisions of economics, but to maintain the balance of wealth in society through its distribution. And to fulfill this purpose, the Islamic provision is ‘Zakat’. This is why in Islam, Zakat has been made an ‘obligatory’ duty for the wealthy. It has been stated in several texts on Zakat, “According to the rules of Islam, Zakat applies to the specific and obligatory part of one's wealth”. M. A. Hamid said that in the conventional sense, “any kind of movable property is paid Zakat on it when it reaches a certain amount”.
In the case of economics, Zakat is “a kind of specific tax imposed on the rich”. According to the rules of Islam, if every wealthy Muslim owns a wealth of 87.48 grams (7.5 tolas) of gold or 612.35 grams (52.5 tolas) of silver or equal value of money, then he should give ¼ of his wealth or 2.5% as Zakat. Zakat has also been imposed on agricultural products. Agricultural Zakat is divided into two categories. The first is that it is mandatory to give 1% to 10% of the crop produced when the source of water is rainwater, spring water, and river or canal water. The second is that it is mandatory to give 1% to 20% of the crop produced when the source of water is irrigation and water purchased by modern methods.
Ref - Zakat as an alternative method of economic growth: The Muslim community of West Bengal (2021) Journal of University of Shanghai for Science and Technology. Available at: https://jusst.org/zakat-as-an-alternative-method-of-economic-growth-the-muslim-community-of-west-bengal.

The tradition of giving finds itself in every religious text across the world. There seem to be few other principles which are so globally accepted. Whether it is the Zakat, the Islamic practice of giving and consequent self-purification, or the Dāna, the practice of giving in both Hinduism and Buddhism, the concept of gratuitous transfer of wealth to the less privileged strikes a common chord between the three most popular religions in Asia. This paper seeks to first identify the traditions relating to charity within religious texts such as the Hadith, the Manusmriti, and the Tipataka. In the absence of institutions, including the concept of the corporation, during the time when such religious texts were envisaged, the directions mandating charity are by default, applicable to individuals. This paper goes on to examine the creation of the modern-day corporation through the lens of independent corporate personality as well as a nexus of contracts. Arguing further that -- in the absence of a large number of shareholders, Asian corporations tend to be family and individual driven -- such families and individuals may have a propensity to inculcate their individual traditions into inanimate and juristic bodies such as the corporations they run and control. As a result, this paper finally considers whether the tradition of giving, as mandated by religion, may be a significant factor to boost Corporate Social Responsibility. While most Asian countries have some form of voluntary guidelines on corporate social responsibility, mandatory laws relating to CSR have been passed in Indonesia and India. A recent report even suggests that Asian consumers would be willing to spend more on products manufactured by socially responsible companies. This paper posits that a tradition of giving, spurred by religious mandate, does make CSR far more relevant in Asia.
Ref - Majumdar, A.B. (2014) Zakat, Dana and Corporate Social Responsibility, SSRN. Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2421001#references-widget

Zakat is the most cardinal and vital system in an Islamic order. Its nature, structure, and function can be better envisaged in the total perspective of an Islamic system of life. Hence it becomes imperative to elucidate the basic tenets of Islam and to highlight Zakat as a basic institution of social order. The teachings of Quran wisdom and Sunnah evolve and develop a social order on such grounds which are the strongest and stable including the system of Zakat and other Sadaqaat. Different religions, whether heavenly or man-made, and all social systems came forward to teach humanity how to live with peace, harmony, and respect with others. Islam, among all of them, gives a complete code of life. It deals with all aspects of an individual’s personal and social life, such as spiritual, moral, economic, social, etc. The Islamic system of worship is not confined to a mere set of rituals; rather, it embodies complete obedience to Almighty Allah and peaceful relations with human beings. This fact runs like a motif in all Islamic teachings. As we will concentrate on Zakat in this paper, we see that Zakat, on one hand, purifies the giver’s soul and takes him closer to Allah, while on the other, produces in him feelings of love, brotherhood, and generosity towards humanity. These humble, loving, and caring fellows then collaborate to make a better human society.
Ref - Minhaj Welfare Foundation (2021) Impact of zakat, Minhaj Welfare Foundation. Available at: https://minhajwelfare.org/impact-of-zakat

Zakat is the main teaching in Islam, zakat serves as a pillar for poverty alleviation, even arranged in the Qur'an about the groups that are entitled to zakat. This article specifically explains the role of Baitul Mal in the utilization of ZISWAF for the benefit of children who are still toddlers, especially children born from poor families, whose nutritional needs, proteins, and vitamins that support the growth of the child, from the mother's womb to the child born and raised. This study uses qualitative research type supported by primary data (interview and observation) and secondary data (literature and annual report data). The findings in this study are six forms conducted by Baitul Mal Institute in carrying out its mission (work program) among others: Child poverty, Maternal and child health, Early childhood education, Sanitation and environmental conditions for growing children, Playground for children, and Violence in children. These six work programs will be an innovation of good practice in addressing the problems faced by children from poor families in Aceh, as well as a replication both for other regions in Indonesia and in regional Asia and the global Muslim majority.
Ref - The practice management of zakat based on responsive to children of ... (no date). Available at: https://www.iccuk.org/2022/iq/Art_65_4_6.pdf.

Zakat is a mandatory charity that is paid by every Muslim as part of their duty to the creator. This study examines the compliance behaviour on zakat donation. The study further defined compliance in terms of religious obligation among the Fakulti Ekonomi dan Pengurusan academicians at Universiti Kebangsaan Malaysia (UKM) using a qualitative approach. This study used interview methods with a saturated sample size. The findings of this research revealed there is a diversity of commitments and obligations for compliance behaviour on zakat donation. Amongst the universal themes of zakat paying motivations are; religious duties, knowledge about zakat donation into the poor, confidence in the fair disbursement of zakat collection to Asnaf, blessings from Allah, assisting Muslim society, the inspiration of zakat administrators, tax repayment incentive, cleansing one's revenue and wealth, and control of spiritual teachers. The research suggested that more empirical studies should be done within the area of compliance on zakat donation using a qualitative method since the majority of prior studies on zakat compliance only focused on quantitative methods. This study also recommends that future studies might concentrate on internal or psychological obligation and donation on zakat.
Ref - Farah1, J.M.S., Shafiai1, M.H.B.M. and Ismail2, A.G.B. (2019) IOPscience, IOP Conference Series: Materials Science and Engineering. IOP Publishing. Available at:https://iopscience.iop.org/article/10.1088/1757-899X/572/1/012040

New Islamic charities and madrasas in Lucknow, India are promoting Islam as a means of development, through revival and reinterpretation of Islamic almsgiving (zakat) and ethical teachings on money and community. Since the partition of India in 1947, Muslims have struggled as a beleaguered minority, the largest in India’s diverse democracy. The relative socioeconomic status of Muslims in India is in decline, nearly on par with dalits (historically oppressed castes). Critics claim that “Muslim backwardness” originates in outmoded commitments to madrasas and illiberal Islamic law (sharī’a). The public views Muslim underdevelopment with alarm, as holding India back from being a leader in the global economy. This dissertation examines the rise and transformation of zakat in contemporary India. As historical institutions of Muslim welfare and endowments (waqf) decline, a new zakat economy is supplanting them. Yet zakat is a distinctly different social form of welfare. The contemporary practice of zakat reveals contradictions that invite reconsideration of our ideas about philanthropy, civic engagement, and Islam. Voluntary donations of zakat are a ritual obligation for all Muslims, and people in Lucknow often speak of the spiritual merit that accrues to almsgivers. I explore the paradox of zakat as “obligated voluntarism” that is at once selfless and self-interested and analyze the cultural implications of such ethics. While the Qur'an encourages giving in modest secrecy, new forms of zakat are not secret but publicly institutionalized and visible. These shifts even alter the practice of piety by incorporating a more individually accountable, calculative dimension to Muslims’ faith.
Ref - Taylor, C.B., 2015. Islamic charity in India: Ethical entrepreneurism & the ritual, revival, and reform of zakat among a Muslim minority (Doctoral dissertation, Boston University).

Changes in poverty measures can be applied into growth of Islamic philanthropy distribution via zakat, and we use the methodology to zakat community development (ZCD) program in Bantul during the 2016. The purpose of the present paper is to prove zakat is able to be a solution part for the community empowerment. The result is the number of productive zakat program beneficiaries whose income is below the poverty line (poor category) before the program are 244 people (H = 0.171) and after the program change to 168 (H = 0.118), which means the program has succeeded in reducing the number of poor people by 76 people (5.34 percent). The poverty gap (P1) of beneficiaries of productive zakat program in Bantul also decrease. The gap between poverty line and average income of beneficiaries is Rp 63,763 before the program, while the gap after the program is Rp 56,992. The income gap (I) is also decline from 0.197 to 0.169. Poverty severity of beneficiaries of productive zakat program in Bantul seen by Sen Index (P2) decrease from 0.093 to 0.062, while using Foster-Greer-Thorbecke Index (P3), the poverty severity decrease from 0.010 to 0.004. The analysis revealed the zakat community empowerment was significant economically in suppressing the poverty rate, and possible for reducing inequality and ending poverty.
Ref - Zaenal, M.H., Astuti, A.D. and Sadariyah, A.S., 2018. Increasing urban community empowerment through changing of poverty rate index on the productive zakat impact. In IOP Conference Series: Earth and Environmental Science (Vol. 106, No. 1, p. 012104). IOP Publishing.

Poverty becomes major problem in Indonesia. Based on geographical condition, the poverty rate in Indonesia is dominated by the rural community. Zakat is an instrument which has function to reduce the poverty rate. Zakat can reduce poverty if managed properly. BAZNAS is an institution that has the authority to manage zakat in Indonesia. Serang regency is a regency in Indonesia which consists of 326 villages. Reducing the poverty rate in the village is very important because there are many villages in Serang Regency. To reduce poverty rate in the village, BAZNAS Regency Serang has been implementing the village development program. This research aims to analyze the Impact of zakat empowerment program on the village development program by BAZNAS Serang Regency. The program in 2016 and 2017 conducted in Sindangsari and Tamiang village. Therefore, the research is conducted in both villages. The zakat impact index is used to analyze the impact of zakat on the village. The result indicates that the impact of zakat empowerment program in Tamiang and Sindangsari Village is enough. Based on this research can be concluded that the zakat empowerment program is enough to impact the mustahik’s zakat on Tamiang and Sindangsari Village.
Ref - Nashir, S.A. and Nurzaman, M.S. (2019) The impact of Zakat Empowerment Program on village, The Impact Of Zakat Empowerment Program On Village | Atlantis Press. Atlantis Press. Available at: https://www.atlantis-press.com/proceedings/icebess-18/55917133

Zakat is an important form of religiously mandated charity under Islam. It is the third pillar of Islam. The giving of Zakat is important for Muslims, as this leads to purification of their wealth from all sins. This paper examines the role of Zakat as an instrument of social justice and poverty eradication in society. Each Muslim calculates his or her own Zakat individually. Generally, this involves the payment each year of two and a half percent of one's capital, after the needs of the family have been met. One can donate additional amount as an act of voluntary charity but Zakat is fundamental to every Muslim. Zakat is the Islamic contribution to social justice: those who have to give charity share the benefit of their prosperity to those who have fallen short. This is the Islamic approach to remove greed and envy and to purify one's soul based on good intentions. This is the institution of Zakat in Islam. The institution of Zakat serves to eradicate poverty in the community and uphold the light of Islam. Allah says “whatever is paid as Zakat for the sake of Allah shall be rewarded in manifolds”.
Ref - Dhar, P., 2013. Zakat as a measure of social justice in Islamic finance: an accountant’s overview. Journal of Emerging Economies and Islamic Research, 1(1), pp.1-11.

Zakat satisfies the four famous principles of a fair taxation system as set up by Adam Smith: fairness, certainty, simplicity, and convenience. Smith considered these four pillars as the backbone of a just system of redistribution of wealth. In his attempt to sustain his argument that Zakat is an Islamic system of redistribution which parallels with the Western idea of taxation, Siddiqi provides that in regards to fairness, Zakat is levied on the individual’s savings for the period of twelve months, therefore, people with bigger savings will contribute more. As an effect, the poorer people of the community will not be prejudiced, as people with no savings are not obliged to pay Zakat. Taxes, on the other hand, are levied on the income of individuals and increase proportionally as there is an increase in income, leading relatively to more sacrifice being made by the poor than the rich, as no account is taken of the amount of wealth accumulated by the individual. Furthermore, it is the poor who benefit more from the revenues of Zakat, which helps to serve one of its main objectives: to provide social justice. Siddiqi adds that Zakat provides certainty for the payer, with its fixed rate of 2.5% of an individual’s wealth. He supports this argument by referring to the fact that the rate, objective, and beneficiaries of Zakat are immutable, unalterable, and based on its divine sanction. He adds that in regards to time, amount of payment, and forms of expenditure, both for the contributors and the governments, no man-made tax can offer more certainty than Zakat does. In terms of convenience, Siddiqi argues that Zakat is also convenient because it is paid annually and by those who are able to pay it, i.e., those with wealth exceeding Nisab. Also, Zakat offers the convenience of paying it according to its manner of production (i.e., land produce, cattle, articles of trade, or in cash). Finally, when it comes to simplicity of calculation, Zakat is a fixed and understandable rate, therefore making its collection costs lower than other tax systems.
Ref - AlMatar, F., 2015. Zakat vs taxation: the issue of social justice and redistribution of wealth. European Journal of Business, Economics and Accountancy, 3(3), pp.119-129.

The development of the digital era has created opportunities and threats for the institution of amil zakat in Indonesia. The lifestyle of society is closely connected to technology, which requires amil zakat institutions to transform and adjust zakat services to be easily accessible to the muzakki through information technology. The emergence of financial technology to facilitate business activities offers both strengths and weaknesses for promotion, collection, and reporting of zakat. This research aims to analyze the strengths, weaknesses, opportunities, and threats of using financial technology for collecting zakat in Indonesia. This conceptual paper primarily draws on observations from other scholars in exchange theories based on zakat collection and financial technology from the Islamic perspective. The literature indicates that there is always an opportunity for amil zakat institutions to use financial technology for collecting zakat due to the strength of information technology in the 4.0 era. However, there are also threats and weaknesses in using financial technology. To overcome these threats and weaknesses, it is hoped that amil zakat institutions can improve the skills of their staff to take advantage of the existing opportunities.
Ref - Friantoro, D. and Zaki, K., 2018. Do we need financial technology for collecting zakat?. In International Conference of Zakat.

This study analyzes the effect of zakat funds, human development index, Gross Domestic Product, and poverty on income inequality in 21 districts/cities in Aceh Province. The study uses panel data from 21 districts/cities in Aceh Province for the period 2010-2019. The results indicate that zakat funds have a positive relationship with income inequality, with a significance level of 0.08. This means that a 1% increase in zakat funds will increase income inequality by 0.011 points. The human development index variable has a negative effect on income inequality with a significance level of 0.000, indicating that a 1% increase in the human development index will reduce income inequality by 0.12 points. The poverty variable, which is expected to describe the role of income inequality, had no effect on income inequality in the 21 districts/cities of Aceh Province during the study period. Finally, the Gross Domestic Product (GDP) variable has a negative relationship with income inequality, with a significance level of 0.0049. The regression coefficient of 0.011% indicates that a 1% increase in GDP will reduce income inequality by 0.011 points.
Ref - Fadliansah, O., Suriani, S. and Gunawan, E., 2021. The Effect of zakat on income disparity in Aceh Province. International Journal of Business, Economics, and Social Development, 2(2), pp.57-64.

According to Martí Parreño et al. (2016), bibliometric analysis is a study that uses quantitative and statistical methods to generate patterns of article distribution in certain problems and time periods. Bibliometric studies are used to present trends and patterns of one particular research topic (Sweileh et al., 2017). The bibliometrics analysis method is now popular as a research method to present the trends and impacts of a study (Sweileh et al., 2017). The indicators commonly used in bibliometric studies are publication classification, citation, authorship, publication impact, and country (Ahmi & Mohamad, 2019). Durieux and Gevenois (2010) divide the indicators of bibliometric studies into three, namely, quantity, quality, and structural indicators. Quantity indicator refers to the productivity of researchers. Quality indicators refer to the performance of the researcher’s output as seen from the number of citations or citations per year, the total h-index or g-index, the citation score. Research quality indicators can also be seen from the impact of publications (IPP) and the impact factors (IF) (Ahmi & Mohd Nasir, 2019). As for, structural indicators, they refer to the relationship between publications, authors, and research 42 This journal is a member of and subscribes to the principles of the Committee on Publication Ethics (COPE) GJAT I JULY 2022 I VOL 12 ISSUE 1 I ISSN : 2232-0474 I E-ISSN : 2232.0482 www.gjat.my fields. This indicator can also be measured by analyzing co-authorship, co-citation, and bibliographic coupling (Van Eck & Waltman, 2021).
Ref - Wahyudi, M., Ahmi, A. and Herianingrum, S., 2022. Examining Trends, Themes and Social Structure of Zakat Literature: A Bibliometric Analysis. Global Journal Al-Thaqafah, 12(1), pp.40-67.

State controlled zakat collection is the most effective way of collecting zakat.14 However, this system is not without difficulties that inhibit the size of zakat revenue to be realized. Accordingly, the topic concerning the collection of zakat is wide since there are a number of problems that can be identified which affect the collection of zakat. However, despite the foregoingthis thesis is confined in its study to examine two main difficulties that states face in the collection of zakat. These are problems in the administrative law of a state as well as in itslegal philosophy on zakat. These two problems are interrelated and hence this thesis chose to cover them both. A number of publicists15have written several books and articles on the collection of zakat by a state. However none of them have considered the fact that this system faces difficulties when it comes to the collection of zakat. This thesis, therefore, has attempted to add to the existing literature by identifying what these difficulties are that affect the collection of zakat by a state. As an example, one of the difficulties faced by a Muslim state in the collection of zakat is the lack of an efficient and effective administrative law on zakat collection. Also the number of scholars differing on zakat coverage and assessment contribute to a Muslim State leaving out of the zakat base wealth that would have attracted zakat on grounds that in their legal philosophy on zakat these states are guided by different scholars under different schools of thought who disagree among themselves on the law on zakat and as a result there is no uniformity in the methods that different states apply in their collection of zakat.
Ref - Abdullatif, L., 2012. The problems faced by a state in the collection of Zakat (tax) (Doctoral dissertation, University of Nairobi).

This paper focuses on increasing financial inclusion in India, specifically through Islamic banking. Financial inclusion is seen as a key factor in reducing poverty, enhancing savings, fostering entrepreneurship, and improving women's empowerment. Despite the availability of financial services, many people, particularly in India, remain excluded due to various barriers, including high costs, legal hurdles, and sometimes religious concerns. With over 50% of India's unbanked population being Muslim, the paper explores how Islamic banking, aligned with the principles of justice and equity in Islam, can provide an inclusive alternative that meets the needs of financially excluded populations. The aim is to identify ways to reduce barriers to financial access and increase participation in the financial system through Islamic banking.
Ref - Beg, S.A.N.A. and Mullick, N.H., 2016. Increasing financial inclusion through Islamic banking in India. International Journal of Business Management and Research (IJBMR), 6(1), pp.27-34.

This research explores the development of an integrated e-zakat al-fitrah model (EZAFM) for zakat institution payers, particularly in response to the challenges posed by the COVID-19 pandemic. Traditionally, zakat al-fitrah payments are made face-to-face through amil appointed by zakat institutions, but the pandemic caused a decline in conventional collections, making online payments an essential alternative. The study addresses the factors affecting zakat payers' reluctance to use online zakat payment methods, such as a lack of knowledge, security concerns, and trust issues with online systems. The mixed-method research, involving questionnaires and semi-structured interviews, aims to create a comprehensive model for e-zakat payments. This model includes operational procedures and guidelines, providing added features for apps to encourage the adoption of online zakat payments.
Ref - Rahman, N.L.A. and Idrus, N.I., 2022. DEVELOPING INTEGRATED E-ZAKAT AL-FITRAH MODEL (EZAFM) FOR ZAKAT INSTITUTION PAYERS. International Journal of Accounting, 7(43), pp.526-534.

Axes and Zakat are two sources of receipt of very significant sources of state income in Indonesia, both of which have the same element of coercion and management elements, while the difference is in the name, object, nature of obligations, legal basis, magnitude and utilization. This research aims to provide an overview of the similarities and differences between the concept of taxes and zakat, the arguments of scholars about taxes and zakat and also provide an overview of the effectiveness of effective management and zakat based on the implementation of the management of tax practices that have been running in the country. The findings in this paper show several different management between the concept of tax and zakat. The effectiveness of existing tax management has increased while zakat is the opposite. Implementation of tax management practices that can be applied as a solution to increase the effectiveness of zakat is the application of sanctions on negligent managers and muzakki, the management of HR management, the implementation of effective and efficient zakat administration (in terms of function, the existence of good systems, programs and institutions), the existence of good information systems and the existence of independent institutions as special auditors.
Ref - Pujiati, P. and Warsito, C., 2022. Implementation of Tax Practices on Zakat as a Solution to Increase Zakat Effectiveness. Ijtimāiyya: Journal of Muslim Society Research, 7(1), pp.1-15.

Zakah is part of the Indonesian economy, which requires the development and structuring . The funds of zakah must be well managed by organizational zakah system which should be improved its performance. Therefore, there is a need of new approach concerning the zakah management based on muzakki’s behavior as an important resource in zakah institution. This paper explores the role of Customer Relationship Management (CRM) in zakah institution linked the important of muzakki’s contribution who use services of its. Then it aims to expand the understanding about how CRM as one of strategic approach for organization such zakah institution to improve its performance which employes three main aspect of CRM, which are form of personnel (behavior of personnel), business process, and using technology.
Ref - Widarwati, E., Afif, N.C. and Zazim, M., 2017. Strategic Approach for Optimizing of Zakah Institution Performance: Customer Relationship Management. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 9(1), pp.81-94

Indonesian Zakat Institutions (IZI), including technical, pure technical and scale efficiencies using a production approach. This study also examines the sources of inefficiency. By employing the Data Envelopment Analysis (DEA) technique, this study proposes a solution to improving the efficiency of IZI. The input variables of this study are the number of amil, the number of volunteers, the number of offices, socialization costs, personnel costs, and operational costs. The output variables of this study include the amount of zakat collected, the distribution of consumptive zakat, the distribution of productive zakat, the number of muzakki and the number of mustahiq. The results indicate that between 2010-2013 IZI Mass technical efficiency were higher than IZI Non-Mass on average. In 2014, IZI Non-Mass exceeded IZI Mass technical efficiency. IZI Mass pure technical efficiency had an upward trend during 2011-2013, but then declined during 2014-2016. However, IZI Non-Mass pure technical efficiency experienced an upward trend during 2011-2012, then slightly decreased in 2013. Although the efficiency increased in 2014-2015, there was a subsequent decrease in 2016. After a period of fluctuation during 2011-2013, the scale efficiency of IZI Mass decreased in 2014 and stabilized in 2015-2016
Ref - Al-Ayubi, S. and Possumah, B.T., 2018. Examining the efficiency of zakat management: Indonesian zakat institutions experiences. International Journal of Zakat, 3(1), pp.37-55.

Zakat, or charity, is one of the five pillars of Islam. The amount is calculated as 2.5% of a family’s annual savings and the donation can be made in cash or kind any time of the year, but most contributions are made during the Ramzan— a period of fasting and prayers — because it is believed that the rewards of good deeds in this month are greater.
“People plan their annual calendar around Ramzan and it is convenient to donate during this month,” said Aamir Edresy of the Association of Muslim Professionals (AMP), which channels donations to causes like education and employment.
In 2013, AMP collected about Rs2 lakh from 40-odd donors; in 2015 donations grew more than 10-fold to Rs21 lakh from 250 donors. In the first 10 days of this Ramzan, the number of donors has already crossed 50, said Edresy. Nationally, too, Zakat collections have been growing and AMP estimates that Rs7,500 crores are collected every year in the country. Edresy thinks that donations could even be Rs40,000 crores.
There has been no recent study to calculate the money that is collected as Zakat across the country. Dr Rahmatullah of All-India Council of Muslim Economic Upliftment, tried to find an estimate eight years ago using government and independent statistics on per capita income and charity. He arrived at the figure of Rs10,000 crores. “But keeping in view the increase in per capita income since then the contributions must have tripled. It is an estimate, but the amount could be Rs30,000-Rs 40,000 crores,” said Rahmatullah. For a comparison, the annual budget of the Brihanmumbai Municipal Corporation, the country’s richest, is about Rs 37,000 crores.
Ref - What is India's annual Zakat Collection? depends on who you ask (2016) Hindustan Times. Available at: https://www.hindustantimes.com/mumbai/what-is-india-s-annual-zakat-collection-depends-on-who-you-ask/story-RDeEedvtOlwaAuBxo6mgaL.html.

The Zakat organizational activities must comply with the Shariah regulations (under the watchful eye of a Shariat advisory body) as well as the country’s constitutional and legal requirements; it should cooperate with the authorities concerned. Latest accounting standards and integrated tools of information technology must be deployed to collect, process, disburse, monitor and analyze the receipts and expenses. These may include Zakat, Infaq, Sadaqah and other similar religious charitable funds. The amounts pertaining to the Corporate Social Responsibility (CSR) fund may be classified as Infaq and may also be collected and managed by the same organization that should have a comprehensive internal control system. The Zakat organization should ensure standard book-keeping and preparation of financial statements in accordance with the accounting practices that are widely accepted at the national and international levels.
Ref - Need to streamline zakat & Sadaqah administration in the world (no date). Available at: https://twocircles.net/2015jun21/1434889893.html..

Ramzan is considered holiest month of the Islamic calendar. Ramzan transforms even non-practicing to perform all the religious rituals, pray for guidance, refrain from everyday evils, self restraint and seek forgiveness for past sins. Ramzan is also a time when we focus on self-reformation, spiritual cleansing and enlightenment. People enthusiasm toward religious activity is unmatched during Ramzan. But same zeal is not visible while paying Zakat, which is one of the five pillars of Islam.We do not miss any chance to hit out at the government for poor condition of Muslims in India. But when it comes to playing our part we fail miserably. As per Arjun Sengupta Committee 2008 report, 77% of Indian population is surviving on Rs 600 per month. Same report also mentions that 84.7% of Muslim population is in poor and vulnerable group.
Ref - Zakat: A tool for community upliftment – twocircles.net (no date). Available at:https://twocircles.net/2010aug25/zakat_tool_community_upliftment.html.

In the current scenario, it becomes incumbent on our religious scholars and leaders to ponder this question. It would be prudent on their part to sit together and constitute a central Zakat Fund for the whole of India, with branches in every state capital and sub-branches in every big city and town. Every Indian Muslim who has to pay Zakat should be directed to deposit his contributions in specified bank accounts managed by the Zakat Fund, which in turn should be managed by a committee of religious, community and social leaders and professional accountants and financial experts.
In addition those who are not using the banking or digital financial tools, should deposit their Zakat in a box, which should be placed in every Masjid of the country, along with a box for contribution to the Masjid. These boxes should be opened quarterly and money deposited in the accounts of the Zakat Fund. The Imam and Mueizzins of the Masjids should be made responsible to manage these boxes and their contents. The Zakat Fund should pay the salaries of the Imams and Muezzins of the mosques, instead of them being disbursed by the respective state Waqf.
Ref - Making our zakat more constructive (2021) Times of India Blog. Available at: https://timesofindia.indiatimes.com/readersblog/marginalia/making-our-zakat-more-constructive-32471/.

Zakat institution have been essential entity in the collection and distribution process of zakat management effectively and efficiently. Although, it is clear that there are some difficulties, which require great attention such as transparency, accessibility, fairness and compatibility due to cultural, geographical and political context. The purpose of this paper is to analyse the common approaches used in various countries through comparison in the best practice of managing zakat fund. It is expected to provide more understanding on the business process and visualization for the purpose of improvement. The contribution of this paper is twofold, firstly, the zakat institution, regardless the limitation or boundary should identify the primary requirement in zakat management system with focusing on the alignment between the model used and the proper application system. Secondly, the findings may provide insight on how the zakat institutions can further improve their use of technology and handle their human capital to deliver more effective and efficient process.
Ref - Comparison of the approach in the Zakat Management System (no date). Available at: https://iopscience.iop.org/article/10.1088/1742-6596/1235/1/012048.

This paper aims at adding to reliable solutions of the menace of poverty in the Muslim majority states of Nigeria by providing facts that buttress the payment of Zakah on employment and professional income as a powerful source of funds for dealing with the harsh effect of poverty among Muslim communities. The paper is purely a literature review research that explores the jurisprudential debate and ruling on Zakah on employment income and traces how some Muslim majority jurisdictions benefitted immensely towards eradicating poverty using proceeds from Zakah on employment and professional income. In view of this, the paper recommends to those in authority to take a juristic stance on the matter and generate Zakah funds from employment and professional income as well as ensure proper disbursement of the funds to the target group in order to curb the poverty situations of the Muslim majority states in Nigeria and beyond.
Ref - Zakat on employment income in Muslims majority states of Nigeria (no date) ScienceDirect.com. Available at: https://www.sciencedirect.com/science/article/pii/S1877042814059011/pdf?md5=749ebfd5016f9a897481c5b496bc1147&pid=1-s2.0-S1877042814059011-main.pdf.

This passage is important in jurisprudence as it identifies eight proper beneficiaries of zakat, even though it uses the word sadaqa for offerings and alms. The first group of recipients is the poor, those who are in material need. The second group of recipients, the needy , are similar. Although some scholars have treated these two groups as synonymous, a more traditional view of the list in this passage is that it describes an order of priority, so that the poor take priority over the needy. Some jurists came to a different conclusion and found that the needy have priority over the poor. The third category of recipients is "those who collect them." This has been interpreted as an allocation to cover the cost of collecting and distributing alms. Historically, when zakat was collected by Muslim states as a tax, this category was used to justify state administrative costs. The fourth category of recipients is "those whose hearts are to be reconciled." It is not clear whether the hearts of this group are fully reconciled or in the process of reconciliation. Thus, one interpretation would include only members of the Muslim community (possibly recent converts). Another would include those who are sympathetic to Islam, but are not yet believers. This second interpretation has been used to justify financial support for missionary activities and for potential converts. The fifth and sixth rightful recipients are captives and debtors. The freeing of captives likely refers to ransoming prisoners captured in war or the purchasing of a slave's freedom.49 Although debtors may include those who are enslaved, it may include others who are burdened by debt. The seventh category of zakat recipients is "for the cause of Allah." Historically, this was used to support those who served as warriors for the defense of Islam." However, in the absence of a limiting hermeneutic in the fiqh (jurisprudence) literature, it could be used for a wide range of activities that support this broad purpose. The final category of recipients is the "wayfarers." This seems to justify expenditure of zakat monies to support travelers. It may even apply to wealthy travelers if they do not have access to their wealth.
Ref - Zakat: Drawing Insights for Legal Theory and Economic Policy from Islamic Jurisprudence by Russell Powell (no date). Available at: https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=1089&context=faculty.

An overwhelmingly positive development that the society has witnessed from last few years is the rising awareness about the obligation of Zakat. According to a report carried out by The Guardian, Muslims donate around three and half trillion dollars of Zakat per year. Majority of them calculate the amount on their own and donate it at individual level. However, even after a donation of such huge amount, there is no considerable decline in the number of poverty stricken people, as would have been a genuine expectation. The reason is pretty evident; absence of proper system for collecting Zakat, and disbursing it on a community level. This defeats the very purpose of Zakat, as propounded by Islam.Zakat, in Islam, is a collective endeavour. Imam Razi opines that it falls within the jurisdiction of the leader of Muslims to collect Zakat from his Muslim population. During the golden epoch of Prophet Mohammad (PBUH), special attention was paid to this department of the state wherein all the important officials would be appointed by the Prophet (PBUH) himself. And these undoubtedly were the most able from the lot.
Ref - Bashir, S., Zakat: An Obligation at Community Scale, Greater Kashmir. Available at: https://www.greaterkashmir.com/todays-paper/op-ed/zakat-an-obligation-at-community-scale.

This thesis examines the problems of implementation of the Islamic “zakat” as a system of taxation. In doing so, it seeks to establish coherent and consistent principles for zakat assessment, collection and disbursement, and to measure the Saudi zakat system against these principles. The Kingdom of Saudi Arabia is regarded as the cradle of Islam and it would therefore have been expected that Saudi Arabia would implement zakat correctly. However, this thesis argues that the current implementation of zakat in the Saudi legal system is fundamentally flawed, because it does not comply with a significant proportion of the fundamental principles of zakat. This thesis highlights the problems inherent in Saudi Arabia’s arguably excessive reliance on fatwas for the implementation of zakat. It is argued that these fatwas have rendered contemporary practice of zakat distant from the fundamental principles of zakat. This issue is examined with reference to original sources on zakat (Quranic verses and related statements by the Prophet Muhammad), and Islamic jurisprudence generally. The contention herein will be that the Zakat Regulation in Saudi Arabia requires reform in accordance with the principles identified in this thesis. This thesis begins by examining the concept and principles of zakat, and then establishes the principles of zakat collection, zakat application and zakat disbursement, the zakat practice in Saudi Arabia and its problems, and finally offers recommendations that would render Saudi law conformant with zakat principles.
Ref-PRINCIPLIZING ISLAMIC ZAKAT AS A SYSTEM OF TAXATION (no date). Available at: https://core.ac.uk/download/pdf/42131317.pdf.

The use of zakat for income generation is a mechanism where zakat wealth is distributed in a way that helps eligible recipients to generate their income, so that they could be permanently independent after a specific period of time. The idea of such a mechanism, although considerably discussed by many contemporary scholars, is not totally new as it has also been briefly mentioned by some classical jurists. This article thus discusses the concept and proposed mechanism of income generation through zakat underlined by a number of modern scholars together with its related issues of fiqh. This is due to the fact that the zakat as a religious obligation must accordingly adhere to the principles underlined by Shari`ah beside any other economic objective which it strives to achieve.
Ref- A THEORETICAL DISCUSSION OF ZAKAT FOR INCOME GENERATION AND ITS FIQH ISSUES (no date) EJOURNAL. Available at: https://ejournal.um.edu.my/.

The second most important pillar of Islam after prayers is Zakat. In the Qur'an, the command of obligatory prayers and zakat has been mentioned together in (82) places. Zakat is the backbone of the Islamic economic system. The philosophy behind the ruling on the payment of Zakat is that the Islamic government should provide the whole society with such an economic system, way of life and social structure in which the needs of the needy people of the society can be met. Islam has made it the duty of every rich Muslim to withdraw one and a half per cent of his accumulated wealth on an annual basis and deposit it collectively in the government treasury. Government has to spend the money of Zakat on meeting the needs of the poor, needy and impoverished people of the society. This is only the right of those deserving whose details have been explicitly stated in the books of Qur'an, Hadith and Fiqh. Zakat is the right of human beings, on the one hand, and on the other hand, it is also the right of Allah. Due to its non-payment, on the one hand, the right of human beings is denied and on the other hand, the right of Allah Almighty is denied. Therefore, it is very important to deliver the amount of Zakat to its rightful owners. The Qur'an mentions eight uses of zakat. It is an important issue in the present times to bring Zakat to its actual recipients. This article examines the recipients of Zakat and the current situation and how these recipients can be made appropriate in a proper manner.
Ref- Analysis of the Recipients of Zakat and the Current Situation (no date) Indonesian conference of Zakat - Proceedings. Available at: https://www.iconzbaznas.com/submission/index.php/proceedings/

Zakat is said to purify yearly earnings that are over and above what is required to provide for the essential needs of a person or family. zakat is based on income and the value of possessions. The common minimum amount for those who qualify is 2.5% or 1/40 of a Muslim's total savings and wealth. If personal wealth is below the nisab during one lunar year, no zakat is owed for that period.One of the most profound aspects of Islam is that it takes human dignity very seriously. Distributing zakat is not handing out charity to the poor. Instead, it is essentially a due for the poor from the rich. In this way, zakat is a powerful tool to help re-circulate wealth to those most vulnerable, many of whom are experiencing poverty at no fault of their own, but due to their unfortunate circumstances, such as lack of access to resources because of poverty, war and other adverse circumstances. Accordingly, zakat may be regarded as a social security system in Islam. Further, zakat means purification and growth as it washes away the greed and the acquisitive orientation of the rich. According to the Quran. Indeed, [prescribed] charitable offerings are only [to be given] to the poor and the indigent, and to those who work on [administering] it, and to those whose hearts are to be reconciled, and to [free] those in bondage, and to the debt-ridden, and for the cause of God, and to the wayfarer. [This is] an obligation from God. And God is all-knowing, all-wise. - Al-Tawbah, 9:60.
Ref- April, D.M.A.M. and Mazid, D.M.A. (2022) The economics of Zakat, The Business Standard. Available at: https://www.tbsnews.net/thoughts/economics-zakat-411114

In order to understand the current practices of Zakat collection, distribution and its impact or the lack of it on the Muslim Community, AMP decided to carry out a ‘National Zakat Survey’. The following steps were followed and post completion of survey, data was analyzed and findings were presented in a Press Conference held at the Press Club in Mumbai on 2nd May, 2019. Detailed survey questionnaire was designed basis discussion with research experts which was also vetted by community scholars. Post finalization of survey questionnaire, online survey link was developed. Online survey methodology was used to conduct this survey and invites were sent to various community people through Press & Social Media to participate in this survey. A total of 4589 respondents participated from 175 Indian cities and 13 countries around the world including Saudi Arabia, UAE, Kuwait, Oman, Qatar, UK, USA, Malaysia, Singapore, Germany, Canada, Japan & Rawanda from Africa. Mr. Aamir Edresy, president AMP, present at the press conference, said “Zakat is an economic tool that has the potential to transform the Muslim Community from its current social and economic backwardness to the forefront of the National development. AMP has been leading the Community professionals to achieve their potential and this initiative will help us in improving the impact of Zakat in Community Building and thus in Nation Building.
Ref- collective zakat can help 5 crore Indian Muslims overcome poverty, The Bridge Chronicle. Available at https://www.thebridgechronicle.com/news/maharashtra/collective-zakat-%C2%A0can-help-5-crore-indian-muslims-overcome-poverty-34686

In India, the distribution of Zakat is popular among Muslim community. Those who have the ability to pay Zakat should give Zakat to the poor and needy people. Zakat is one of the five pillars of Islam. There are eight categories of people who qualify to receive Zakat funds. The distribution of Zakat is done through various means such as District Zakat cell, Zakat committees under the aegis of Mosques, direct transfer by individuals etc. Since Zakat is paid to the poor and needy people, it will make some positive impact in the income distribution. The payment of Zakat is one of the ways to curb the problem of mounting inequality in India. Zakat is a term used in Islamic finance to refer the obligation that an individual has to donate a certain proportion of wealth each year to charitable causes. The act of Zakat means purifying the wealth to gain Allah’s blessings. The basic objective of Zakat is to create a balance in the society by circulating wealth from rich to poor. Payment of Zakat is able to reduce the poverty and increases the standard of living of the lower sections. It also ensures stability in the economic condition of the society. The beneficiaries of Zakat are able to use the amount received for various activities such as meeting the basic needs, starting business and loan repayment.
Ref- Impact of zakah on income distribution of its recipients - IJCRT Available at https://www.ijcrt.org/papers/IJCRT2104678.pdf

It aims to examine the effects of the Islamic social finance (zakat), the Islamic Human Development Index (IHDI), and the quality of governance on poverty alleviation in 39 Organization of Islamic Cooperation (OIC) member countries from 2007 to 2020. This study uses a fixed effect model to analyze the relationship between variables. The findings show that the Islamic human development index, as a proxy for the quality of human resources, supports the reduction of poverty in OIC countries. Furthermore, the zakat, voice and accountability, and trade openness have a negative and significant relationship with poverty. The quality of governance, population, inflation, and exchange rate, on the other hand, has no significant effect on the poverty rate. These findings can be used as the foundation for state government as the policymaker to solve poverty. The uniqueness of this study is the application of the modified human development index based on the five Islamic objectives and empirically investigates its impact on poverty.
Ref-Widiastuti, T. et al. (2022) The nexus between Islamic Social Finance, quality of human resource, governance, and poverty, Heliyon. U.S. National Library of Medicine. Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9720026/

Zakat is one of the five pillars of Islam and forms the foundation of Islamic economic system. The practice of zakat combines both the elements of ritual and revenue-raising. From zakat payers’ perspectives, paying zakat is a ritual act intended to purify their wealth. From a system of revenue-raising perspective, the main objective of zakat is to alleviate the hardships of zakat recipients, particularly the poor. We discuss the purposes of zakat and the historical development of zakat administration and management in Malaysia. We examine the current challenges and criticisms of zakat distribution and propose an integration between zakat and development impact bond as an approach to maximizing impact from zakat investment.
Ref- Integrating Zakat with Development Impact Bond (no date) Site. Available at https://repository.upenn.edu/.

The contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data.
Ref- Role of zakat as social finance catalyst to Islamic banking and Economic growth (no date). Available at: https://baitalzakat.com/files/english-files/baitalzakat.com-E100090.pdf

Perception of zakat payers toward the governmental model of zakat institutions can be explained as how zakat payers perceive the government of zakat institutions’ ability and importance in managing the institution entirely (Mustafa et al., 2013). A relationship involving an agent (zakat institution) is often associated with agency problems due to information asymmetry. Government intervention is one of the means to reduce the problems related to information asymmetry. Hansmann (1981) insisted that to enjoy the benefits provided by the government (e.g., tax exemption), the government can require the registration of charity bodies. By registering with government bodies, the charitable status is subject to nondistribution constraint, a signal that can easily be observed by a donor. This signal declares that the organization is subject to certain laws and regulations that protect the donor’s interests. The government will not only constrain the behavior of charities but also provide a signal that is free for the donor to observe but costly for the charity to obtain (Handy, 2000). Muslim individuals eligible to pay zakat on income are chosen as the sample. Zakat on income is charged on the fixed income earners regardless whether they are working in the public or private sector. For the purpose of this study, only fixed income earners located in Klang Valley, Malaysia are chosen as the sample. Five hundred and sixty seven questionnaires were distributed to possible zakat payers through personally administered questionnaires and online questionnaires. Out of the 567 questionnaires, 193 usable responses were received with an overall response rate of 32%. Sekaran and Bougie (2013) claimed that the general rule to identify the sample size is more than 30 and less than 500 for any area of research. In this study, the selected sample size is 184, which is considered appropriate.
Ref- Effect of board management and governmental model on zakat payers. Available at: http://www.gjat.my/gjat2018si/SI2018-05.pdf

The system of zakat provides a permanent and wonderful mechanism within the economy, and continuously transfer and circulating income from the rich to the poor or vulnerable within society. The causes of poverty and vulnerable individuals are always taking care of by the welfare of the poor (Zakah). The allocation of Zakah and disbursement between the needy, poor, and other recipients, on the one hand, and between capital goods and consumption goods. Furthermore, what is given to the poor essentially and determined with the aim of enriching them and removing them completely from the poverty level such a factory level in which they produce sufficient income to take charge of all their needs. There is a consensus of Islamic scholars that the higher priority in Zakah disbursement is for the eradication of poverty
Ref- https://innovareacademics.in/journals/index.php/ijss/article/download/42614/25408

As a Muslim, we must perform our obligations by paying zakat just as we are obliged to perform the prayers so we will become a perfect Islam in the eyes of Allah and the universal society. Zakat has a very high position in Islam and his words always be combined with a prayer in the Quran. Zakat is also worship that has a high social value. The role of zakat is to reduce the poverty of local communities. Zakat must be removed for certain types of property that has been set after the qualifying period. Obligations of zakat have a variety of positive socio-economic objectives not only to the recipient of zakat but also to zakat payers and to the whole society. Generally, charity to further strengthen the social security system and it is also the first step that should be addressed properly and smoothly towards the Islamic economic system toward a more perfect.
Ref- https://hrmars.com/papers_submitted/6586/The_Awareness_of_Zakat_in_the_Universal_Society.pdf

Zakat is a moral obligation that wealthy Muslims have to the poor and needy, and failure to pay it is considered unethical behaviour. Governments of Islamic countries, or countries with large Muslim populations, regulate the Zakat system through authoritative bodies and ensure that lump sums are paid through the appropriate means. As such, Zakat is binding even if there is no legitimate government. Zakat improves the economic system and provides a means of sustaining governance. Al-Suhaibani (1990) analyses the impact of Zakat on consumption, investment, employment, economic growth, inflation, and economic stability. The study also discusses the impact of Zakat on resource’s allocation and distribution of wealth and income. Two new topics; Zakat incidence and Zakat buoyancy were introduced. It is believed that these topics were not addressed prior to this study by any Islamic economics researchers. The study finds that Zakat usually increase consumption and investment, especially if the economy is suffering from unemployment and thus raises the level of utilization of all economic resources available in the economy
Ref- https://www.sciedu.ca/journal/index.php/ijfr/article/view/18662/11991

The role of religion in development has not received much attention in development studies until recently. The field is attached to the modernisation thesis which predicted that over time nonWestern societies would become secular and that religion would become less prominent in the public sphere (De Cordier, 2009). However, faith-based organisations contribute15-16% of aid given to non-governmental organisations and it is estimated that in 2013 faith-based organisations collected between US$ 420-435 million of international humanitarian assistance which was channelled to non-governmental organisations (Stirk, 2015). The literature on Zakat and development can be divided into two broad streams. The larger stream which is produced mainly by scholars from/ living in Muslim majority countries examines the potential of utilising Zakat to enhance development in such countries. The second stream considers the role of Zakat and Muslim humanitarian organisations in international development
Ref- https://opendocs.ids.ac.uk/opendocs/bitstream/handle/20.500.12413/13647/Using_Zakat_for_International_Development.pdf

Zakat is an institution focusing on the nonprofit sector in which funds are collected and then redistributed to recipients [3]. In practice, zakat institutions have an obligation to properly manage zakat funds. Therefore, good governance is necessary for zakat institutions in order to achieve a fair distribution of zakat funds to those entitled to receive them. As stated by Rahman [4], a good and reliable zakat institution is one with good financial management, which includes applying the appropriate accounting standards and audits and making improvements to the distribution of funds using a performance management system. Good management is a determining aspect of the efficiency of zakat institutions and is essential for systematic operations that would optimize the distribution of funds under the zakat system [5]. In general, zakat management is understood to be involved in two activities: the collection and distribution of zakat funds [6]. One of the main objectives of zakat management is to generate the best results possible, which would be evidenced by the timely collection and distribution of zakat as ordained in Islamic Sharia
Ref- https://www.jsju.org/index.php/journal/article/view/561/556