Promoting Social Justice through Management of Zakat

M. Taufiq Rahman

, Iding Rosyidin

and Moh. Dulkiah

SGD State Islamic University Bandung, Indonesia,

Universitas Islam Negeri Syarif Hidayatullah Jakarta, Indonesia

Keywords: Zakat, Management, Social Justice

Abstract: This study focuses on analyzing the transformation of zakat (alms) management from the viewpoint of the

capital and its institutional relation to empower the society. An in-depth study regarding this topic has its

relevance to enrich theoretical discussions in economic sociology on the types and function of the capital in

an institution with its institutional relation. This study displays a discussion on zakat management in West

Java in order to finalize social analytics more comprehensively in its relation to enact social justice. This

study emphasizes more on the LAZ capitals in transforming the management of zakat in West Java,

Indonesia. Studying the reality of zakat in West Java has its attraction, mainly because there are prolific

growing private zakat institutions in the area. This study finds a theoretical view of capital based

institutional relation in real life. A capital based institutional relation is a part of a continuation of the

institutional relation theory potential to be a theory to analyze capital matters in an institutional relation

way. This theory can enrich the established sociological theory of organization and could give explanations

concerning the power and the weakness of capital in an institutional relation way.

1 INTRODUCTION

The internalization and socialization of the religious

concept of trust are provided through a platform

such as a zakat collection and empowerment, which

serves as a communication medium between amil

(zakat collectors) and muzakki (zakat payers) and as

an effort to transform zakat management. Zakat

itself is the obligation of all Muslims to issue a

portion of the wealth in order to cleanse (tathir) and

purify (tazhir) the soul and the total property as

stated in QS. 9: 103. As for the recipient, zakat can

fulfill the material requirements, such as eating,

drinking, clothing, housing and so on whose

distribution goals are mentioned in QS. 9: 60.

LAZ's transformation in Islam becomes a

manifestation of the implementation of community

economic management practices, especially in the

welfare of the weak. Moreover, the economic

management practices of the people prioritize the

aspects of trust. Trust in Islam is also taught in a

different sense; the trust is a spiritual capital. Robert

J. Barro gives an analogy to this spiritual capital

such as human capital in conventional systems

(Barro, 2004). Pierre Bourdieu (1930-2002)

distinguishes between spiritual capital and religious

capital. The first covers a broader aspect of a more

diverse society, carried out by a more complex

(extra-institutional) pattern of production,

consumption, exchange, and consumption. In

contrast with the second, which is produced in a

hierarchical institution (Verter, 2003). Victor Nee

through his New Institutionalism only continued the

concept of social capital which had been introduced

previously by several scholars such as Robert D.

Putnam (Nee, 2003).

2 THEORETICAL FRAMEWORK

In the general context, spiritual capital seems to have

a more positive image than religious capital because

spirituality is often associated with secularity (non-

religious activities), more flexible, and therapeutic.

Meanwhile, religious activities, for example,

Protestant Christianity in the United States, are often

associated with conservative characters. Spiritual

capital also has various similarities with religious

capital, especially the social and economic impacts

generated by religious beliefs, activities, and

institutions. For example, some of the believers in

churches in the United States are members of

Rahman, M., Rosyidin, I. and Dulkiah, M.

Promoting Social Justice through Management of Zakat.

DOI: 10.5220/0009933916991706

In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 1699-1706

ISBN: 978-989-758-458-9

1699

associations, philanthropy, and volunteerism

(Putnam, 2000). Thus, they develop social and

religious and spiritual capital.

People do not need to find meaning and purpose

in life or insist on wanting to be a good person.

Spiritual capital has nothing to do with the 'right' or

to depend on the ultimate truth. Our conception of

the Almighty is spiritual capital that allows us to

relate to all the meanings of values and

understanding of the purpose of life. In short,

spiritual capital reflects the core values, systems of

one's value and the inward thrust of humans.

Genuine social capital must include the spiritual and

mental dimensions, which add to the main goals in

building long-standing relationships with people

from different backgrounds (Haddorff, 2000).

3 LITERATURE REVIEW

First, Ranti Wiliasih et al. (2011), Relationship

between Quality of Life and Regular Zakah

Exercise, International Journal of Business and

Social Science Vol. 2 No. 16; September 2011, this

study examines the relationship between regular

zakat and quality of life by using aspects of

spirituality and altruism as intermediary variables.

This research was conducted with surveys and

interviews using a questionnaire on 110 respondents

from 356 zakat payers. By using Structural Equation

Model (SEM) analysis and Partial Least Square Path

Modeling (PLSPM) analysis, this study successfully

tested the relationship between regular zakat

implementation and quality of life through altruism

and spirituality as an intermediary variable. The

choice of spirituality and altruism based on

intervening variables in research. Their findings

indicate that there is a relationship between regular

zakat testing and quality of life, although altruism

and spirituality affect the quality of life, and there is

a relationship between spirituality and quality of life.

It means that regular zakat testing does not

automatically improve the quality of their lives,

especially if they do not know the meaning for

themselves.

Second, Geoffrey A. Jehle, "Zakat and

inequality: some evidence from Pakistan." Review

of Income and Wealth 40.2 (1994): 205-216. Jehle

tried to analyze the impact of zakat on inequalities

and inequalities that occur in Pakistan. By using the

AKS Gap Index (Atkinson, Kolm, and Sen), Jehle

was able to construct two types of income using data

from 1987-1988, namely: Data on income without

including zakat and income data that included zakat.

He found that zakat was able to channel the income

from the middle class to the lower groups, even

though the amount was still minimal.

Third, Nasim Shah Shirazi (1996), Targeting,

coverage, and contribution of zakat to household’s

income: the case of Pakistan." Journal of economic

cooperation among Islamic countries 17.3/4: 165-

186. Shirazi analyzes the impact of zakat and ‘ushr

on poverty alleviation efforts in Pakistan. Using

FGT (Foster, Greer, and Thorbecke) Index, he found

that in 1990-1991, 38 percent of households in

Pakistan lived below the poverty line. However, this

figure will be 38.7 percent if the zakat transfer

mechanism does not occur. He also concluded that

the poverty gap decreased from 11.2 percent to 8

percent with the presence of voluntary zakat transfer

mechanisms.

Forth, Ibrahim Patmawati, Economic Role of

Zakat in Reducing Income Inequality and Poverty in

Selangor. Diss. Ph. D. thesis, University Putra

Malaysia, 2006. Here Patmawati tried to analyze the

role of zakat in reducing poverty and income

inequality in the state of Selangor, Malaysia. Using

the Lorenz Curve and Gini Coefficients, he found

that the bottom 10 percent of the community

enjoyed 10 percent of the public's wealth because of

zakat. This figure increased from 0.4 percent when

the transfer of zakat did not occur whereas 10

percent of the top groups of people enjoy wealth by

32 percent, or down from 35.97 percent in the

previous position. It shows that the gap between

groups can be reduced. He also concluded that zakat

could reduce the number of low-income families,

reduce the level of depth and severity of poverty in

Selangor.

Fifth, Niswatun Hasanah (2013), ANALISIS

PENGARUH LAYANAN LEMBAGA AMIL

ZAKAT TERHADAP KEPERCAYAAN

MUZAKKI (Studi Pada Lembaga Amil Zakat

Dompet Dhuafa Yogyakarta). Diss. Universitas

Gadjah Mada. This study looks at zakat management

from a trust perspective. The management of zakat

which used to be still in the form of charity has

shifted to zakat institutions that manage zakat funds

creatively and innovatively in the form of productive

zakat. It makes every zakat institution requires

muzakki who believes in the performance of the

institution so that many teachers channel their funds

through institutions. The management is inseparable

from the marketing strategy in management applied

by an Amil Zakat Institution. This research was

conducted to find out and understand the strategies

used by Dompet Dhuafa Yogyakarta in marketing its

services and analyzing respondents' responses and

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strategies used through CARTER service quality to

trust.

Sixth, Umah, U. K. (2011), Penerapan Akuntansi

Zakat Pada Lembaga Amil Zakat (Studi pada LAZ

DPU DT Cabang Semarang). VALUE ADDED|

MAJALAH EKONOMI DAN BISNIS, 7(2). This

study situates Indonesia as demographically and

culturally has the potential to be developed into an

instrument of income distribution, especially the

Indonesian Muslim community, namely the

institution of zakat, infaq, sadaqah (ZIS).

Demographically, the majority of the Indonesian

population is Muslim, and culturally the obligation

of zakat has an effect, and Sadaqah in the way of

Allah SWT has been deeply, rooted in the Muslim

tradition of life. In managing zakat, the management

institutions must have accountability and

transparency. Therefore, it is important for zakat

management institutions to be able to prepare good

and transparent financial statements. Still, there are

many BAZIS and LAZIS who have not used zakat

accounting, especially the amil zakat agencies

operating in the village / kelurahan or mosque. They

still use conventional accounting. Even though

PSAK (statement of financial accounting standards)

has been issued no. 109 concerning zakat

accounting. This phenomenon is the reason for

conducting research on the implementation of zakat

accounting by zakat management institutions, the

mechanism of zakat management in the Amil Zakat

Wallet Caring for the People of Darut Tauhid (LAZ

DPU DT) Semarang Branch became the topic in this

study. Data Collection Techniques are carried out

by: 1) Direct Observation, 2) Interview (Interview),

and 3) Documentation. Data analysis consists of

description and content analyses. The collected data

is analyzed using the description method, with

qualitative analysis. In this case, the analysis is

carried out by explaining matters relating to the

conditions at the LAZ DPU DT Semarang branch,

especially in describing how the application of zakat

accounting to the Semarang branch of LAZ DPU

DT. Accounting for zakat funds carried out by LA

Semarang DPU DT Branch is carried out based on

the cash basic value where the accounting

transaction recording model records all revenues that

have been received. And in the reporting process

LAZ DPU DT Semarang Branch only reports

sources and uses of funds and reports on receipt and

use of funds. This is because that LAZ DPU DT

Semarang Branch does not have its own assets such

as land and buildings. Here LAZ DPU DT Semarang

Branch has not conducted five financial reports

according to PSAK No. 109 of which are balance

sheets, reports on sources and uses of funds, reports

of changes in funds under management, cash flow

reports, and notes to financial statements. Therefore,

the LAZ DPU DT Semarang Branch has not been

audited by a public accountant and not in accordance

with SFAS No. 109.

Seventh, Rouf, M. A. (2011), Analisis faktor-

faktor yang mempengaruhi minat masyarakat

membayar zakat di Rumah Zakat cabang

Semarang (Doctoral dissertation, IAIN Walisongo).

This study begins with a rationale that to empower

zakat funds optimally, a professional, trustworthy

and transparent zakat management institution is

needed. It is so in fostering a sense of public trust in

the interest in paying zakat in zakat institutions. In

addition to trust in zakat institutions, interest in

paying zakat can also be influenced by the level of

religiosity and income. The level of one's religiosity,

especially the understanding of the obligation of

zakat greatly influences one's awareness to issue

zakat. While income has a relationship regarding

whether the property has reached the nisab (obliged

amount) or not. This study explains the problem of

whether there is an influence of trust, religiosity and

income on the interest of the public to pay zakat.

This study aims to examine partially and

simultaneously how trust, religiosity and income

influence the interest of the public to pay zakat in

the Semarang branch of Zakat House. The technique

used for sampling in this study is a probability

sampling. The method used to collect data were

questionnaires, interviews and documentation. The

data analysis technique used in this research is the

validity, reliability and multiple regression analysis.

The results of research processed with SPSS Version

16.0 for Windows shows that the influence of

independent variables (trust, religiosity and income)

on the dependent variable (community interest) is

57.4%, while 42.6% is influenced by other variables

not included in this research. This means that the

ability of variables of trust, religiosity and income is

very large in explaining interest variables. The

empirical test results of the influence between trust

in community interests, showed a value of t count

3.323 and p value (sig) of 0.001 which was below

5%. This means that trust affects people's interests.

The effect of religiosity on community interest

shows a value of t count 3.945 and p value (sig) of

0.000 which is below 5%. This means that

religiosity affects people's interests. While the

influence of income on public interest shows a value

of 7.430 t count and 0.000 p value (sig), using the

Alpha level of 5%, the position of the probability

value is below its Alpha. This means that there is a

significant influence between income and public

interest.

Eighth, Sidiq, H. A. (2015), Pengaruh

Pengetahuan Zakat, Tingkat Pendapatan,

Religiusitas Dan Kepercayaan Kepada Organisasi

Pengelola Zakat Terhadap Minat Membayar Zakat

Promoting Social Justice through Management of Zakat

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Pada Lembaga Amil Zakat:(Studi Kasus Terhadap

Muzakki Di Fakultas Agama Islam Dan Fakultas

Ekonomi Dan Bisnis Universitas Muhammadiyah

Surakarta) (Doctoral dissertation, Universitas

Muhammadiyah Surakarta). This study aims to

analyze the influence of the knowledge of zakat,

income level, level of religiosity, and the level of

trust in the interest in paying zakat on the institution

of amil zakat at Muhammadiyah University

Surakarta. The population in the study were

lecturers, employees and students at the Faculty of

Economics and Business and the Faculty of Islamic

Religion, Muhammadiyah University of Surakarta.

The sample in this study taken Case Study Against

Using Convenience Sampling method, while

determining the number of samples using the

Slovin’s formula. There are 98 questionnaires that

can be processed in this study. The primary data

collection method used is by survey method using a

questionnaire media. The data analysis method used

in this study is multiple regression analysis (OLS).

Based on the results of the analysis carried out then

the conclusions obtained based on the effect validity

test (t test) at significance (α) of 0.05. Knowledge of

zakat (PZ) has a significant effect on the interest in

paying zakat to the institution of amil zakat with a

coefficient of 0.274670. The level of trust (TK;

Tingkat Kepercayaan) also has a significant effect

on the interest in paying zakat to the amil zakat

institution with a coefficient of 0.199615. Whereas

for the income level variable (TP; Tingkat

Pendapatan) and the level of religiosity (TR; Tingkat

Religiusitas) does not have a significant influence on

the interest in paying zakat at the amil zakat

institution at the level of α up to 95%.

Ninth, Tho’in, M. (2017), Pembiayaan

Pendidikan Melalui Sektor Zakat. Al-Amwal: Jurnal

Ekonomi dan Perbankan Syari'ah, 9(2). This study

aims at finding out how educational financing

program done, to know the criteria of students who

will get educational scholarship, and to know the

flexibility in allocating zakat funds for education at

the zakat Al-Ihsan Institute of Central Java. This

research use descriptive, qualitative approach. Data

collection in this study was conducted by

observation, interview, and documentation. Data

analysis techniques in this study were interactive

data analysis techniques consisting three

components of data analysis, that is, data reduction,

data presentation, and conclusion. This study found

that there are two educational financing programs

undertaken by this institution, that is, an integrated

scholarship program and orphaned pesantren. Both

programs are financed from the utilization of zakat

funds that have been collected. The criteria of the

students receiving educational scholarships are

classified by priority scale: 1) the poor, orphan,

mosque takmir (employees); 2) the orphans; 3) the

poor. In addition, there is the flexibility of the

budget in allocating zakat funds for education

programs.

Tenth, Lestari, P., Pratiwi, U., & Ulfah, P.

(2015), Identifikasi Faktor Organisasional dalam

Pengembangan “E-Governance” pada Organisasi

Pengelola Zakat, MIMBAR, Jurnal Sosial dan

Pembangunan, 31(1), 221-228. This study aims to

identify organizational factors which focused on the

SWOT analysis (strengths, weaknesses,

opportunities, threats) in order to develop e-

governance to strengthen transparency and

accountability in the management of zakat in Zakat

Management Organization in Banyumas. Data were

collected through interviews and focus group

discussion (FGD) technique. With snowball

sampling, nine zakat management organizations in

Banyumas were selected. The analytical method

used is descriptive qualitative. The results showed

that the organization of zakat in Banyumas have

strengths, weaknesses, opportunities and obstacles in

managing zakat. Other results showed the lack of

using of internet-based media in the dissemination of

programs and accountability in managing of zakat.

Eleventh, Siswantoro, D., & Nurhayati, S.

(2012), Factors affecting concern about zakat as a

tax deduction in Indonesia, International Journal of

Management and Business Research, 2(4), 293-312.

Historically, the Islamic state collected zakat

(similar to the tithe of other regions) as national

income. In Indonesia, the private sector can

raise zakat funds more effectively than the

government. In 2010, zakat became tax-deductible

income. This paper tries to analyze some factors that

affect preference for zakat as a tax deduction in

Indonesia. The effectiveness of the regulation is also

investigated. In addition, zakat can deduct tax as a

plan for next regulation proposal. This research also

aims to see for further action, zakat can deduct tax.

Research methodologies were hard copy and online

questionnaires and phone interviews with the tax

office’s customer service. Samples were taken from

April through June 2012. The results showed that

motivation and trust factors affected the preference

for tax-deductible zakat, while most tax officers

were not aware of the popular concern

about zakat as a tax deduction. This study proposes

involving human resources departments in

companies’ deductions of taxable income and

promoting awareness of the issue among tax officers

as solutions to this problem.

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Twelfth, Satrio, E., & Siswantoro, D. (2016),

Analisis Faktor Pendapatan, Kepercayaan Dan

Religiusitas Dalam Mempengaruhi Minat Muzakki

Untuk Membayar Zakat Penghasilan Melalui

Lembaga Amir Zakat, Simposium Nasional

Akuntansi XIX. This research explains some factors

such as individual income, trust and religiosity of

zakat payer preference on profession zakat through

Zakat Institution. The research method used is by

questionnaire with 164 sample at Indonesian Stock

Exchange. It uses SMARTPLS to test the

relationship of variables. The results show that

individual income, trust and religiosity have

significant effects to zakat payer preference payment

through zakat Institutions.

Thirteenth, Trisnawati, D. M. F. (2015),

Penerapan PSAK 109 Tentang Akuntansi Zakat dan

Infak/Sedekah pada BAZ Kota Pekanbaru, Kutub

khanah, 17(1), 40-59. Zakat management

organization (OPZ) in Indonesia is growing by leaps

and bounds, even among OPZ competing for the

collection of zakat, donation/charity to attract the

sympathy of the Muslim community in particular

muzakkis and donors. Many ways to do that is by

making the program amil zakat distribution of

creative and innovative as mustahiq economic

empowerment so that the program can improve the

status of mustahiq (alms receivers) into a minimal

muzakki munfiq (people who could pay zakat).

However, the important thing is the publication to

the public as well as to implement transparency and

accountability in the management of zakat. The

authors are interested to further investigate the

application of PSAK 109, Accounting for Zakat,

Infaq/BAZ Alms in the city of Pekanbaru. BAZ

Pekanbaru which has been confirmed by Walikota

Pekanbaru since 2001, experienced a significant

development in terms of the collection of zakat since

last 2 years with a period of management the period

2011 till 2013. This is a descriptive and comparative

study between zakat management accounting

practice in the field with the provisions of PSAK

109. The results showed that the BAZ Pekanbaru has

applied PSAK 109 on its financial reporting since

2011 are listed in the annual report 2011 and 2012.

The embodiment of transparency and accountability

is a positive impact on the increase in the collection

of zakat, donation/charity. Finally, it could increase

public confidence in government and the city of

Pekanbaru.

4 RESEARCH METHODOLOGY

This research uses the method of soft systems

methodology (SSM) developed by Checkland and

Scholes. SSM is an approach to solve an

unstructured complex problematical situation based

on holistic analysis and system thinking. The use of

SSM is to describe problems consisting more

significant social and political effects and analyses

by using the concept of human activity as a tool to

know a problematical situation to produce actions to

raise the situation (Checkland & Scholes, 1999).

The present writers assert seven levels to solve

the SSM problems that is; first, determining and

understanding the problematical situation. Second,

affirming problematical situation. Third, choosing a

viewpoint to see the situation and producing a

definition of problematical roots. Fourth, developing

enough conceptual models to describe all of the

problematical roots. Fifth, comparing the model with

reality. Sixth, declaring an expected and possibly

performed the change. Seventh, doing an action to

raise the situation of the real world (Checkland &

Scholes, 1999).

This research takes the analytical study of

analyzing the capital capacity of zakat management

institutions in West Java and performed in various

locations. Those are the offices of: The House of

Zakat (Rumah Zakat, RZ), The Wallet of the Needy

(Dompet Dhuafa), Daarut Tauhid, the Center of

Zakat of the People (Pusat Zakat Umat, PZU) of the

Islamic Union (Persatuan Islam, Persis), and other

places agreed by the researcher and the informants.

Data analysis derived at the same time from the

processes of data gathering. The inductive analysis

is departed from the raw data in the field. The

process of data management involves theme

identification and emerging patterns after doing data

selection, classification, and data analysis. After

categorizing interview transcripts, there is an effort

of codification of essential points including

keywords and sentences.

5 FINDINGS AND DISCUSSION

LAZ is an organization that has its own corporate

culture built by all its employees, especially

regarding values, perceptions, and behavior of all

elements in the organization. The cultural conditions

of the organization will influence any forms of

activity that applied to internal or external circles.

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Table 1: The Values Applied by the Amil Zakat Institutes

No LAZ Core Values

1 RZ

- Trusted

- Humanitarian

- Progressive

2 Dompet Dhuafa

- Independence

- Accountability

3 DPU DaarutTauhid

- Pray

- Think

- Endeavor

4 Pusat Zakat Ummat

- Trustworthy

- Professional

- Transparent

Source: Field Study, 2015

There are positive and negative values; the

positives include: First, the principle of

transparency. LAZ develops this transparency

principle to guarantee access or freedom for

everyone in obtaining information about the

organization, namely information about its

implementation and the results achieved. According

to IM, Director of DD Jabar, that transparency is

applied to provide openness for everyone both from

the elements of muzakki and the general public to

conduct surveillance. Nevertheless, IM stated that

transparency must be balanced, too, with the need

for confidentiality of institutions and information

that affects the rights of individual privacy (IM,

2015).

The role of the media recognized by IM as very

important in this transparency, for the reason of an

opportunity to communicate to the public and

explain various relevant information, as well as a

watchdog for various LAZ actions and deviant

behavior from the officers. The media will not be

able to carry out this task without the freedom of the

press, free from government intervention even if it

influences business interests. IM also realizes that

openness has consequences for the excessive control

of society and even the mass media. Therefore, the

obligation for openness could hand in hand with the

value of the limitation, which includes clear criteria

from the officers about what kind of information

they provide and to whom the information is given.

IM stated that three main factors could encourage

and accelerate the realization of transparency above,

those are the availability of data/information that is

accurate, comprehensive, and up-to-date; the ease of

accessing data/information; and the uniformity of

data/information submitted (IM, 2015).

Information and activities that must be

transparent include managing funds that cover the

system, amount and source of funds, and the

distribution. IM explained that the organization and

the personnel include the structure, tasks, and

management systems. Planning includes short and

medium-term plans; implementation includes

progress reports and obstacles faced; procurement of

goods and services includes integrated information

on its implementation; and the distribution of

humanitarian aid funds includes the amount and

value of available funds, criteria, and number of

recipients, sources and forms of assistance, as well

as accountability mechanisms (IM, 2015).

The second principle is professional. Many

problems that arise from traditional zakat

management should be a reflection of us together as

a country with the largest Muslim population in the

world. IM states:

At present, there are many zakat individual and

traditional management, especially in rural and small

cities. Many risks arise from this management

system. In addition to the deceased victim, other

things that might happen such as the uneven

mustahiq (object of zakat) who gets help, the justice

system and lack of proper coordination. The

distribution of zakat does not spread to

empowerment after assistance has been done. As a

result, mustahiq only is only helped for a moment

and not on target. Even sadder, it seems like a

parade is possible because mustahiq becomes an

object of spectacle (IM, 2015).

A large number of people who distribute their

zakat directly to direct recipients can be an

indication of their lack of trust in the existing amil

zakat institution. Therefore, if LAZ does not

professionally manage the zakat, it will cause the

public to be more distrustful of the zakat channeling

institutions. The above indications designate the

level of professionalism of LAZ as it has several

requirements. These conditions include having valid

muzakki and mustahiq data, submitting financial

reports to the public, supervised by a public

accountant, and having professional amil or

resources.

Professional zakat management should also use

information technology. Some officials from LAZ

stated that this technology is necessary to facilitate

the organization of zakat. The existence of a system

integrated with information technology will facilitate

the management of zakat. By using technology, the

zakat management process will be faster and more

comfortable. Technology could overcome distance

barriers that have often been a barrier to data

exchange and information on zakat institutions.

Integrated information technology makes it easier

for zakat managers to control each zakat fund

entrusted by the muzakki right to the mustahiq.

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The use of sophisticated information technology

infrastructure will make LAZ more efficient in

collecting funds from the muzakki and easier in

storing various data. The use of technology can

strengthen the database needed by zakat managers.

The data includes data on zakat recipients, data on

zakat recipient area, data from the zakat institutions,

data on institutions that receive support from zakat

funds, data on obligatory zakat, and others. The use

of this technology can also make it easier for

muzakki to pay zakat. For example, the muzakki can

pay zakat via SMS, calculate their zakat through the

internet, get information about reports on the use of

zakat funds via the internet, and others.

LAZ also utilized banking technology with the

help from banking technology; donors will be

facilitated with banking transaction facilities, for

example, the method of paying zakat by using a

credit card or known as recurring. Sharia payments

through credit cards are valid with commitments

from credit card holders to pay off payments before

maturity, credit cards for payment of zakat, infaq,

sadaqah, and cash waqf. Banking services like are

expected to provide convenience for people who

have a busy life.

The third is accountability; some LAZes

promoted the principle of accountability as an

obligation to account for the management and

control of the resources and the implementation of

policies. It includes the success or failure in

achieving the goals and targets set through the

accountability media in the form of implementation

reports (performance accountability), period

submitted to related institutions both at the central

and local levels.

Zakat institutions that have the trust to

accommodate alms and alms donations must channel

the funds according to their designation. Especially

for zakat funds, the distribution is determined by the

Qur'an so that it is clear. Regarding utilizing infaq

and alms funds to provide significant benefits, it is

necessary to have the right strategy. For that reason,

the funds collected do not run out in a relatively fast

time, but the funds can develop and benefit many

people. Zakat, infaq, and alms funds are given to the

poor in various programs related to social,

education, health and economics.

All programs that are carried out are based on

careful consideration so that they can be efficient

and avoid excessive use of funds but lack the

benefits. Financial institutions are essential for zakat

management institutions. Banks become a vital part

of zakat funds collection.

At LAZ, values tend to be communally related to

one another to form patterns and value systems in

society. If there is no integral harmony of social

values, social problems will arise. Each value can

have a different effect on individuals and society as

a whole. Values can affect personal development in

society positively and negatively.

However, as stated by some LAZ officials from

Dompet Dhuafa, RZ, PZU, and DPU Daarut Tauhid

stated that they are trying to implement good

governance. According to SJ from Dompet Dhuafa,

today, the goal of development is directed to create

an ideal society, known as civil society. Islamic

Shari'a is the potential to support development

because it has several possible functions towards it.

First, religion is a source of motivation for

development, which is a factor that encourages and

inspires people and society. Secondly, Islamic law is

a source of inspiration for development, namely

factors that can contribute value and ideas for

development. Third, Islamic Shari'ah is a source of

evaluation for development. It can be used as a

measuring tool and even as a tool of criticism for the

good of the development process. The Shari'ah

prophetic mission of Islam is to direct life to an ideal

ethical and moral paradigm, overseeing deviations,

irregularities, developing ethics and morals in

various aspects of social life by the dynamics of

culture (IM, 2015).

The implementation of Islamic Shari'ah in the

current context of humanitarian, and social

movement, is also required to pay attention to its

fundamental principles. Those principles are: human

rights (huquq al-insaniah) in the framework of

upholding legal justice and social, economic and

political justice; the principle of elasticity, the

principle of evolution (tadarruj al-tashri’) and other

principles (Nee, 2003).

Technically, the implementation of zakat is

transformed in the public policy process through

legislation or in the action program, with the

executive, legislative and judicial bodies as the

pioneers of the formulator, implementer, and

dynamism. It implies that the implementation of the

management of zakat requires cooperation and

cohesiveness between the elements of the

government and elements of society, including with

scholars of various skills. Because of the problems

that develop in the community, it often cannot be

solved by the government alone, or by just ulama

groups. It means that between the government as the

formulator and implementing the policy

(policymakers and administrative policy) in this

case, the executive body and the legislative body, as

Promoting Social Justice through Management of Zakat

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well as scholars as agents of social change, and the

community as policy targets must be interdependent.

So that, in turn, the elements of the government,

both executive, legislative and judicial, play a role as

the formulator and implementer of zakat, the

scholars with various skills play a role as initiators

and motivators who provide inspiration and

contribution of thought to the formulation and

implementation strategy.

5 CONCLUSIONS

The forms of support and obstacles faced by the

alms institution of Lembaga Amil Zakat (LAZ) in

empowering the businesses of the poor came from

external and internal supports. Outstanding external

support was in the form of the increasing public

awareness, which spurred the enthusiasm of zakat

workers (amil) in maximizing capital accumulation

and its utilization. The obstacles in zakat

management were in the forms of operational costs,

human resources, technology utilization, and

coordination with other parties, especially the

government.

The results of the study of LAZ's success in

empowering mustahiq businesses resulted in at least

two theoretical findings, namely the Theory of

Religious Capital and the Theory of Capital-Based

Institutional Relations. Religious Capital Theory is

presented as another variant of social capital,

economic capital, cultural capital, and symbolic

capital; while Capital-Based Institutional Relations

is a part or continuation of Institutional Relations

theory that has the potential to become a theory for

analyzing capital issues in institutional relations. It is

through these efforts that social justice developed by

zakat management could deliver to the community.

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Barro, R. J. 2004. Spirit of Capitalism: Religion and

Economic Development. Harvard International

Review, 64-7.

Checkland, P., & Scholes, j. 1999. Soft Systems

Methodology in Action. Wiley: New Jersey.

Haddorff, D. W. 2000. Religion and the Market:

Opposition. Absorption or Ambiguity. Review of

Social Economy, 58(4), 483-504.

IM. 2015, 5 4. Zakat Manager. (M. T. Rahman, I.

Rosyidin, & M. Dulkiah, Pewawancara)

Nee, V. 2003. The New Institutionalism in Economics and

Sociology. Center for economy and Society Cornell

University: New York.

Putnam, R. 2000. Making Democracy Work: Civic

Traditions in Modern Italy. Princeton University

Press: Princeton.

Rahman, M. T. 2010. Social Justice in Western and

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Universiti Malaya: Kuala Lumpur.

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