Karim, Zaidi & Wahid (2004) studied the performance of zakat distribution in Perak, Kedah, Negeri Sembilan and Selangor. The objective of the study is to compare the trend in zakat distribution in the selected states. They used the financial report of 1990 to 2001 from the respective State Islamic Religious Councils to analyze the trend in zakat distribution. They found that, on average the respective SIRCS only distributed 69% to 80% of the amount of zakat collected every year. In fact, RM133.12 million of zakat was collected in Selangor in 2005 but only RM101.5 million or 76.2% was distributed to the beneficiaries. According to them, State Islamic Religious Council/zakat administrator has complete data on the collection and distribution of zakat for the past few years. If they can forecast the amount that they are going to get and plan the amount that they are going to distribute next year, it would improve the distribution of zakat by at least to 90%.
The insignificant increase of zakat collection after corporatisation process showed the leakage of zakat collection where zakat payers tend to pay zakat directly to the recipients even after the corporatisation. In order to study the possibilities, Ahmad et al. (2005) examined the effect of the individual satisfaction on zakat management and the compliance behaviour of paying zakat through formal institution. They developed questionnaires and sent them to 753 individuals in 6 states in Malaysia (Selangor, Pahang, Wilayah Persekutuan Kuala Lumpur, Negeri Sembilan, Pulau Pinang and Melaka). All these states have corporatised the zakat collection and distribution. They analyzed the obtained data using logistic regression analysis. This study found that the feeling of satisfaction towards the zakat administrator has a positive relationship with the compliance behaviour of paying zakat through formal institution. This study only focused on the states that