ENHANCING EFFICIENCY IN ZAKAT INSTITUTIONS
DOI:
https://doi.org/10.33102/8pjnzj13Keywords:
Efficiency, Zakat Collection, Zakat Distribution, Zakat InstitutionsAbstract
The system of zakat is the most influential system of wealth-sharing and as a symbol of Islamic economic justice that assurance of an equal and trustworthy distribution of wealth. Proper and efficient management of the zakat system is important in assessing the ability to achieve the organization’s goals and objectives. The potential role of zakat institutions as an agent for empowering ummah is evidenced by the institutions' ability to cater to Asnaf's needs. Efficient zakat management activities include a competent zakat institution to collect zakat and effective zakat distribution. The objective of this study is to identify and compare the efficiency level of zakat institutions in Malaysia. To achieve this objective, a quantitative approach is adopted using zakat disbursement efficiency measurement (ratio analysis). The findings shows that the De score of zakat institution in Selangor is found to be the highest while the De score of zakat institution in Sarawak is the lowest. It is essential for each zakat institution to timely measure and understand their efficiency in the collection of zakat for the sake of long-term sustenance.
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