Managing Zakat Through Institutions: Case of Malaysia

Year 2019, , 28 - 44, 30.11.2019

Abdalrahman Mıgdad

https://doi.org/10.25272/ijisef.519228

Cited By: 7

Abstract

Uniquely, zakat is
featured as the major tool of Islamic wealth redistribution that routinely
collects designated amounts of public money from zakat payers and channels same
to identified beneficiaries in accordance with the principles of the shari’ah.
It is, therefore, essential to organize and develop institutions to manage this
wealth. This paper analyzes the Malaysian zakat system, assesses its
performance by studying the collection and disbursement mechanisms. The paper
is qualitative descriptive-analytical in nature, it analyzes annual reports and
interviews with the higher management of ZCC and religious councils. The paper
focuses on data between the year 1991 to 2014/15. This paper finds that the
Malaysian experience with managing zakat advanced technically in both
distribution and collection. However, the practice of ‘distribution’ ought to
be more sustainable, less consumption-based. Furthermore, the paper strongly
identifies the need for establishing a database on needy people with the
national welfare system and other relief NGO’s to reduce double spending.

Keywords

Zakat Systems, Sustainable Spending, Public Money

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