ISSN: 2222-6990
Open access
This paper explores the pivotal role of efficiency and accountability in Zakat institutions, focusing on their efforts to alleviate poverty and promote sustainable development. The study highlights the increasing trend in zakat collection and distribution across Malaysia, particularly in regions such as Wilayah Persekutuan and Selangor. Despite the rise in zakat distribution, the Ministry of Economy's report reveals a simultaneous increase in the incidence of absolute poverty in Malaysia, emphasising the need for a comprehensive approach to poverty alleviation. The paper discusses the efficacy of Zakat institutions, utilizing Data Envelopment Analysis to measure efficiency. It also addresses the limitations of traditional efficiency measurement and advocates for the incorporation of accountability measures into evaluations to provide a more comprehensive assessment of Zakat institutions' overall performance.The absence of standardised measures of accountability is identified as a significant challenge, hindering the comparison of performance across different Zakat management institutions and impeding efforts to promote transparency and trust in the management of Zakat funds. The paper concludes by highlighting the importance of a holistic approach to evaluating Zakat institutions, considering both operational and financial dimensions and the need for standardised measures of accountability to enhance the quality of Zakat management practices and promote transparency in fund management.
Abd Majid, M. Z. (2016). Menelusuri isu-isu kontemporari zakat. Menelusuri Isu-Isu Kontemporari Zakat, June 2021, 1–23.
Ahmad, I. H. J., & Ma’in, M. (2014). The efficiency of zakat collection and distribution: Evidence from two stage analysis. Journal of Economic Cooperation and Development, 35(3), 133–170.
Anuar, F. S., Mohd Alwi, N., & Mohd Ariffin, N. (2019). Financial Management Practices and Performance of Zakat Institutions in Malaysia. IPN Journal of Research and Practice in Public Sector Accounting and Management, 9(01), 1–26. https://doi.org/10.58458/ipnj.v09.01.01.0056
Arshad, R., & Mohd Zain, N. (2017). Performance Measurement and Accountability of WAQF Institutions in Malaysia . SHS Web of Conferences, 36, 00005. https://doi.org/10.1051/shsconf/20173600005
Asmild, M., Paradi, J. C., Reese, D. N., & Tam, F. (2007). Measuring overall efficiency and effectiveness using DEA. European Journal of Operational Research, 178(1), 305–321. https://doi.org/10.1016/j.ejor.2006.01.014
Atiya, N., Widiastuti, T., Cahyono, E. F., Zulaikha, S., & Mawardi, I. (2020). A Techno-Efficiency Analysis of Zakat Institutions in Indonesia. International Journal of Zakat, 5(3), 30–43. https://doi.org/10.37706/ijaz.v5i3.249
Aznam, N. H. Z., Zakaria, S. F., Bosli, F., & ... (2022). The Efficiency of Zakat Outreach in Time of Covid-19 Pandemic. IJZIP?: International Journal of Zakat and Islamic Philanthropy, 4(2), 66–75.
Baek, C., & Lee, J. dong. (2009). The relevance of DEA benchmarking information and the Least-Distance Measure. Mathematical and Computer Modelling, 49(1–2), 265–275. https://doi.org/10.1016/j.mcm.2008.08.007
Banta, T. W., & Borden, V. M. H. (1994). Performance indicators for accountability and improvement. New Directions for Institutional Research, 1994(82), 95–106. https://doi.org/10.1002/ir.37019948209
Djaghballou, C. E., Djaghballou, M., Larbani, M., & Mohamad, A. (2018). Efficiency and productivity performance of zakat funds in Algeria. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 474–494. https://doi.org/10.1108/IMEFM-07-2017-0185
Ikhwandha, M., & Hudayati, A. (2019). The influence of accountability, transparency, and affective and cognitive trusts on interest in paying zakat. Jurnal Akuntansi Dan Auditing Indonesia, 23(1). https://doi.org/10.20885/jaai.vol23
Ibrahim, M., Kunci, K., Zakat, K., Kedah, L., Perlis, M., & Pinang, Z. (2020). Perbandingan kaedah kutipan zakat harta oleh institusi zakat di negeri-negeri utara malaysia comparison of zakah property collection methods through zakat institutions in northern states malaysia. International Journal of Zakat and Islamic Philanthropy (March 2020), 2(1), 2672–7471.
Golany, B., & Roll, Y. (1989). An application procedure for DEA. Omega, 17(3), 237–250. https://doi.org/10.1016/0305-0483(89)90029-7
Hamzah, A. A., & Krishnan, A. R. (2016). Measuring the efficiency of zakat collection process using data envelopment analysis. AIP Conference Proceedings, 1782(October 2016). https://doi.org/10.1063/1.4966074
Lateff, E. E. A., Palil, M. R., & Hassan, M. S. (2014). Prestasi kecekapan agihan kewangan dan bukan kewangan di kalangan institusi zakat di Malaysia. Jurnal Ekonomi Malaysia, 48(2), 51-60.
Masruki, R., Hussainey, K., & Aly, D. (2018). Developing an accountability disclosure index for Malaysian state Islamic religious councils (SIRCS): Quantity and quality. Management and Accounting Review, 17(1), 1–18. https://doi.org/10.24191/mar.v17i1.757
Jaapar, A., & Kamarulzaman, N. H. (2020). The Efficiency of Zakat Collection and Zakat Distribution of Islamic Religious Council Perak (MAIPk), Malaysia. International Conference of Zakat, 2005, 107–118. https://doi.org/10.37706/iconz.2020.236
Notolegowo, H. K., Alamsyah, I. F., Saraswati, N., Jalil, B. A., & Bt Isahak Merican, F. M. (2023). Relationship between Islamic Social Finance and Sustainable Development Goals: A Conceptual Framework. KnE Social Sciences, 2023, 197. https://doi.org/10.18502/kss.v8i18.14245
Rusydiana, A. S., & Al Farisi, S. (2016). The Efficiency of Zakah Institutions Using Data Envelopment Analysis. Al-Iqtishad: Journal of Islamic Economics, 8(2), 213–226. https://doi.org/10.15408/aiq.v8i2.2876
Sapingi, R. (2020). Development Of Malaysian Zakat Administration And Financial Reporting Of Zakat Institutions. 93–105. https://doi.org/10.15405/epsbs.2020.12.05.11
Sustainable, T., & Goals, D. (2020). The Sustainable Development Goals Report.
Usman, A. S., & Tasmin, R. (2016). The Relevance of Islamic Micro-finance in achieving the Sustainable Development Goals. International Journal of Latest Trends in Finance and Economic Sciences, 6(2), 1115–1125.
Wahab, N. A. (2013). EFFICIENCY AND GOVERNANCE OF ZAKAT INSTITUTIONS IN MALAYSIA BY NORAZLINA ABD WAHAB A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy of Islamic Banking and Finance Institute of Islamic Banking and Finance Internat. May.
Wahab, N. A., & Rahman, A. (2011). A framework to analyse the efficiency and governance of zakat institutions. Journal of Islamic Accounting and Business Research, 2(1), 43–62. https://doi.org/10.1108/17590811111129508
Wahab, N. A., & Rahman, A. R. A. (2012). Productivity growth of zakat institutions in Malaysia: An application of data envelopment analysis. Studies in Economics and Finance, 29(3), 197–210. https://doi.org/10.1108/10867371211246876
Yaakob, H., & Mahyideen, J. M. (2024). Efficiency and Accountability in Zakat Institutions: A Conceptual Paper on Addressing Poverty and Fostering Sustainable Development. International Journal of Academic Research in Business and Social Sciences, 14(10), 725–733.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode