Zakat Distribution

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  • Topic: International Islamic University Malaysia, Zakat, Islam
  • Pages : 21 (5997 words )
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  • Published : February 14, 2013
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IIUM Students’ perception towards the efficiency of zakat management: Distribution in Malaysia

Haron bin Rashid
International Islamic University Malaysia

1

Abstract
This paper about the study of IIUM Students’ perception towards the efficiency of zakat management: distribution in Malaysia. All subjects were selected from International Islamic University Malaysia (IIUM) and the data were collected using the sampling technique used for the selection of these students that were chosen randomly from each 3 different faculties of IIUM. Besides, the perceptions from the students are based on their basic knowledge and what they learned in their faculty through 3 parts of questionnaires. The findings suggest that the efficiency of zakat management can be improved according to research situation.

Table of content
Page
1. Introduction4
2. Literature Review8
3. Methodology10
4. Discussion15
5. Conclusion17
References17
Appendix 118
Appendix 219

CHAPTER 1
1.0Introduction
“Zakat as a vital instrument to fulfill the basic needs in an Islamic economy as well as an instrument of fiscal policy.” (Ziauddin Ahmad, 1991; Siddiqi, 1996; and Chapra, 2000). Zakat is the third fundamental pillar of Islam, with the objective of distributing wealth to the less fortunate Muslim community and would therefore be able to less poverty among members of the ummah. Zakat is a Quranic term that signifies the specific obligation of giving a portion of an individual's wealth and possessions for primarily charitable purposes. Furthermore, it also carries other connotations of increase and virtue, as well as giving. It is also mentioned in the Quran together with other terms such as sadaqah that also carry the connotation of giving and of charity. Besides, Zakat is also the pivot and hub of Islamic public finance and covers the moral, social and economic spheres. In the moral sphere, zakat washes away the feeling of greed and materialism of the rich. On the other hand, in the social sphere, zakat acts as a unique measurement by Islam to abolish poverty from the society by making it a social obligation on the rich. Studies on zakat have successfully caught the attention of scholars to discuss various areas especially in collection and disbursement system of zakat funds in the IIUM students’ perception. The state government has the right to take charge of zakat collection and distribution and once the government decrees that payment of zakat must be made to Baitulmal. Indeed the majority of fuqaha’ emphasize that individuals must pay their zakat through government.

The effectiveness of zakat collection and distribution mainly depends on the excellent governance of zakat institution. However, distribution of zakat is very significant to the Muslim country and community especially to eliminate poverty, improve economic growth and also the quality of life. If the zakat institution cannot be addressed properly, it could raise negative impact on the future development of the zakat institution. 1.1Statement of problem

Actually, there is no reference that regards voluntary organizations as collectors and distributors of zakat. This seems normal since there were no authorized or legal voluntary associations in the era when these classical books were written. It is only among contemporary writers that such references may be found. For instance, according to Qardawi (1999), he considers voluntary organizations a good alternative if the government does not carry out its zakat responsibilities. In practice, Baitulmal is responsible to manage religious matters that are outlined under the jurisdiction of the state government including marriage, waqaf, and zakat as well as inherited properties. The effectiveness of zakat collection and distribution mainly depends on the good governance of zakat institution. However many studies in Malaysia...
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