The management of zakat fund and its contribution towards muslim educational purposes: a case study of BAZIS in Jakarta, Indonesia

Abstract

Badan Amil Zakat, Infaq and Sadaqah (BAZIS) is a charity organization which collects and distributes zakat, infaq and sadaqah in Jakarta. BAZIS has six branches in municipalities and regency, namely BAZIS of Central Jakarta, West Jakarta, South Jakarta, East Jakarta, North Jakarta and Thousand Islands. This study investigated the use of zakat funds in financing the education of Muslims in Jakarta and the management practiced by the BAZIS organization. The scope of this study was restricted to the percentages of zakat fund allocated for education, investment and management practices by the middle managers of the BAZIS organization. This study identified that the management of BAZIS plays an important role in managing zakat collections and their distributions, especially in allocating the zakat funds for education and investment. The quantitative research methodology was used with eighty two (82) participants. The descriptive statistics and ANOVA were used for the data analysis. Firstly, the findings indicated that part of zakat fund allocated to education is more than 50%. Secondly, ANOVA was employed in the second segment of the analysis and the results indicated that while using zakat fund to finance education, all level of education were given priority. Similarly, as regards to managers’ perception on the use of zakat funds to finance investment, the result of ANOVA indicated that all managers have positive perception towards investment of Zakat funds. Moreover, the middle managers of BAZIS organization showed a positive perception in practicing the modern management, namely planning, organizing, leading, and controlling. Therefore, the BAZIS management systems should develop excellent methods of the zakat collection and distribution in Jakarta.