Organizing Skills For Zakat Utilisation Dynamics In Faith-Based Organization

Abstract

This article discusses the implementation of the microfinance program in one of the zakat institutions in Indonesia, Pos Keadilan Peduli Umat (PKPU) as Faith-Based Organization (FBO). Utilization of zakat through microfinance requires the community workers to be able to be adaptive to the dynamics of the existing system within himself, organization, community and the organization environment. The dynamic of the social system in the process of microfinance will provide its challenges, both for change agents and service recipients. Based on a qualitative approach, this study describes the organizing skills that Community workers needed to have in implementing microfinance program. The data were collected through in-depth interviews, participant observation, and literature study. This study illustrates organizing skills --that could help community workers to be more adaptive to organizational and environmental dynamics in the process of microfinance-- are organizational restructuring based on environmental needs and changes, flexible direction to develop a supportive organizational climate, and the development of organizing skills down to the grassroots.

Digital zakat management, transparency in zakat reporting, and the zakat payroll system toward zakat management accountability and its implications on zakat growth acceleration

“…By implementing the Zakat Payroll System, Zakat institutions streamline the collection and ensure regular contributions, leading to a stable source of funds (Bin-Nashwan et al, 2021). It enhances Zakat Management Accountability as transparent guidelines and proper record-keeping inspire trust among muzakki (Machdum, 2018). As accountability strengthens, muzakki participation and contributions increase, driving Zakat Growth Acceleration and enabling Zakat institutions to have a more significant societal impact by providing essential support to the less fortunate (Iskandar et al, 2021).…”

Giving and Receiving: Faith and the Sustainability of Institutions Providing Microfinance Services for Development

“…Some authors have argued that the payment of an 'administration fee' or 'service charge' for credit transactions is not against Islamic principles [52], and this could also provide a source of income. Indeed, Islamic microfinance which is fully compliant with Shariah laws is a new trend and is said to be flourishing [57,107] and having a positive impact [16,17,108,109]. It has been claimed that there are 164 Islamic-based microfinance institutions offering interest-free credit in the East Asia and Pacific regions, 72 in the Middle East and North Africa, 12 in South Africa, 4 in the rest of Sub-Saharan Africa and 3 institutions in Europe and Central Asia [110].…”