Digitalization of Mustahiq Economic Empowerment Model based on Productive Zakah Fund

Abstract

Poverty is a social problem that requires effective and sustainable management. Many parties have made various efforts to overcome poverty. However, the poverty reduction model that was built tended to only use a charitable approach. So that’s only creates a sense of dependence on aid. Poverty reduction requires the involvement of all elements of society, which in a systematic, sustainable, holistic and integrated manner. In line with that, the Islamic economic system offers an alternative in overcoming various socio-economic problems in society, through the instrument of zakah. Although many studies have found that the potential for zakah is very large, the collection and distribution of zakah funds has not been carried out optimally, so that it has not had a significant impact on poverty. Therefore, facing the current development, it is necessary to digitize the proper mustahiq economic empowerment model. The research type used is in the form of field research with a qualitative methods by conducting a deep review of various literatures. The research concludes that the proper digitalization of the mustahiq economic empowerment model can be carried out in a creative productive manner, by distributing a zakah that cannot directly used or spent by the mustahiq. So that the utilization of zakah itself, will have an economic impact on the mustahiq. In order to make this creative productive distribution model runs successfully, it requires coaching and mentoring activities. Coaching and assistance carried out for mustahiq must be adjusted with the era development, through the use of digital technology.

ICT-based collaborative framework for improving the performance of zakat management organisations in Indonesia

“…The digitisation of zakat distribution was proposed by Zein et al (2020) where the proper digitisation of the mustahiq economic empowerment model can be performed creatively and productively, so that it has an impact on the economic welfare of the mustahiq. Financial technology (fintech) was also proposed as a financial innovation that can be used in the collection and distribution of zakat in Indonesia.…”

Community Empowerment Through Amil School For The Enhancement Of Productive Zakat Management

“…The provision of revolving funds that may be utilized by mustahik in the form of a qard hasan contract as a loan without services is one form of productive zakat empowerment.Indeed, the management of productive zakat is hindered by several obstacles, such that it is not optimal during the Covid-19 pandemic because the capital provided by zakat institutions is not optimally utilized by mustahik. The digitalization of empowerment through productive zakat necessitates extensive support, including the use of diverse digital media (Zein et al, 2020).The empowerment of zakat can improve people's welfare, which is characterized by decreased inequality and the eradication of destitution. (Zaenal et al, 2018), this is achieved through a variety of business support programs (Mawardi et al, 2023) taking into consideration the order of importance and the potential of the mustahik (Mawardi et al, 2023), Thus, religiosity, demographics, and sociocultural factors have a significant impact on the efficacy of zakat-based community empowerment (Ridlwan et al, 2022).One form of zakat-based community empowerment program is ZChicken, a certified franchise system in the culinary industry with its own brand.…”

“…The significance of managing zakat and its effect on people's lives, including the digitalization of the empowerment model that must be carried out in a creative, productive, and non-charitable manner so that it has an economic impact on mustahik with training and coaching efforts adapted to digital-based technological developments (Zein et al, 2020).One of them is the zakat empowerment program for productive businesses, which demonstrates the aspect of channeling additional business capital for mustahik with an indicator of the level of effectiveness indicated by the accuracy of the business's predetermined goals and objectives (Arisnawati, 2021).Training designed for beginner amil, namely service office delegations and recipients of college scholarship programs for tertiary institutions in the Purwokerto region, is used to solve problems encountered by community service partners. During the process of implementing this activity, the strategy employed is to provide comprehensive comprehension and insight regarding the optimization of productive zakat management in community empowerment.The implementation team's efforts to provide this comprehension and insight were accomplished by dividing the activity material into two sessions.…”

Escalation of Online Zakat in New Normal

“…The existence of technology in the collection, distribution, control, and reporting of zakat will increase the quantity and quality of zakat funds. Conceptually, the role of technology in collecting zakat funds will expand access to amil zakat in accessing muzakki (Zein et al, 2020).…”