8.1 ZAKAT
MANAGEMENT
YUSHARNIDA YUSSOF (820385)
Date Presented: 08.10.2016
WHAT IS ZAKAT?
Comes from
Arabic word
Refer to
purification of a
Muslim’s wealth
and soul.
Important duty for
Muslim as
mention in the AlQuran “Keep up
prayer and pay
zakat”
Based on
accumulated
wealth
Is 3rd pillar of
Islam
Assessed
once a year
IMPORTANCE OF ZAKAT
1. Help to build balance
society
2. Purifies your personal
possession and trade
3. Leads to circulation
of money
4. Promote the
message of sacrifice
03 04
02
01
WHAT MUST BE GIVEN?
Zakat on agriculture
Zakat is levied on
specific assets only,
identified by Islamic
Law as assets having
potential for growth.
Example:
Zakat on business
Zakat on saving
Zakat on livestock
Zakat on gold
Zakat on mining
Zakat Fitrah
METHODS OF COLLECTION
DEFINITION
Amil: The collectors whose duty
it to collect the Zakat dues and
deposit them to in the authorized
Zakat
Asnaf: Eligible beneficiary for
Zakat
ZAKAT MANAGEMENT BY STATE
Collection and
Distribution
manage by Zakat
Institution
01
02
Pahang, N. Sembilan
& Wilayah Persekutuan
& Putrajaya
Selangor, Sabah &
P. Pinang
Collection and
Distribution
manage by State
Islamic
Religious Council
03
Sarawak, Terengganu,
Kelantan, Perlis,
Kedah, Perak,
Melaka & Johor
Collection Zakat
manage by
Zakat Institution,
and
Distribution manage
by State Islamic
Religious Council
PEOPLE ENTITLED FOR ZAKAT
The poor (al-fuqarâ’):
low income or indigent
Those in bondage:
(slaves and captives)
The needy (al-masâkîn):
someone who is in difficulty
The debt ridden:
help people pay their
debts
Zakat administrators:
any trustworthy organization
that helps you calculate your
zakat and accepts the
payment for it.
Those whose hearts are to be
reconciled:
new Muslims and friends of the
Muslim community
In the cause of God:
Individuals,
organizations or
activities striving in the
way of Allah
The wayfarer:
those who are stranded
or traveling with few
resources
ZAKAT DISTRIBUTION IN MALAYSIA
04
02
Principles
of Had AlKifayah:
sufficient to
asnaf
01
Priciples
of Istiab:
distribute
to al asnaf
03
Principles of
Khususiah:
special to
specific asnaf
05
Priciples
of Iqtisad:
smart
distribution
Principles of
Istiqlal: zakat
property should
be seperated
from other
06
property
Principles of
Musuliyat AlAmil: amil
responsibles
upon his
collection
07
Priciples of
Al-Riabah:
good
safekeeping
CRITERIA FOR ZAKAT DISTRIBUTION
Accommodation:
affordable place to stay
Good: Rice, wheat flour,
cooking oil, sugar and etc.
1
Education : advance
payment for fees
2
3
Clothes: School uniform,
shoes or clothes
Health: operation cost, cannot
afford to pay medical bills
4
5
Transportation: Tricycle
motorcycle for business for disable
people
6
PROBLEMS WITH ZAKAT SYSTEM
Lack of commitment and management expertise:
Not academically or professionally qualified
Lack of database:
No comprehensive database on zakat payer.
Legal aspects:
Weak law on zakat.
Zakat payment through unofficial channel and unpaid
zakat
Weak enforcement
PROPOSED REFORMS
1. Education system
2. Role of Ulama
3. To improve zakat laws and
enforcement
4. To improve efficiency of zakat
administration and distribution
5. Establishment of advisory services
network
6. To improve the corporate
governance of zakat administration