Governance and Trust in Zakat Institution

Erika Takidah, Ajeng Pratiwi

2017

Abstract

As one of the five basic pillars in Islam, zakat is an obligatory upon every adult, mentally stable,and financially-able moslem. As a result, millions of moslems donate their zakat through zakat institusions. In the management of zakat funds, it is very to obtain the trust from the zakat payers (muzakki). This paper seeks to explore the zakat payers perception of governance and and its effect to the trust in a zakat institution. Perception of accountability, transparency and sharia compliance represents the governance of Badan Amil Zakat Nasional (Baznas), as a zakat management institution. The survey method was applied in this research and with quantitative approach. The paper examines relation among accountability, transparency, sharia compliance and 100 zakat payers’ trust in Baznas. The result of this research showed that the accountability, transparency and sharia compliance influenced a muzakki’s trust in Baznas. Sharia compliance performs the strongest influence on trust among the studied variables. The paper relies heavily depend on a muzakki perception of Governance and Trust. Selection of limited indicators for this research may affect the results of the study. This paper highlights the need of an increasing trust through relevant disclosure of accountability, transparency and shariah compliance information to build a muzakki perception based on the annual report of zakat institution.

Paper Citation

in Harvard Style

Takidah E. and Pratiwi A. (2017). Governance and Trust in Zakat Institution.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 870-875. DOI: 10.5220/0007091508700875

in Bibtex Style

@conference{iciebp17,
author={Erika Takidah and Ajeng Pratiwi},
title={Governance and Trust in Zakat Institution},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={870-875},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007091508700875},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Governance and Trust in Zakat Institution
SN - 978-989-758-315-5
AU - Takidah E.
AU - Pratiwi A.
PY - 2017
SP - 870
EP - 875
DO - 10.5220/0007091508700875