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Zakat Institutions: Roles, Challenges, and Impact
Zakat Institutions: Roles, Challenges, and Impact
SUBJECT
STUDIES/MPU3313
CREDIT HOUR 3
LECTURER Amalina Azmi
Mini Research
NAME 1. Rifat Mia (2024.1. ICT06.0003)
MATRIX ID 2.Abu Turab (2024.1. ICT01.0002)
3.Abdullah al Arman (2024.1. ICT06.0007)
4.Sharmin khatun (2024.1. ICT06.0004)
1. Introduction
Research Question: What are the roles, challenges, and impact of Zakat institutions in
contemporary society?
Research Objectives:
To examine the historical background and significance of Zakat institutions. To identify the
roles and functions of Zakat institutions in the distribution of wealth and poverty alleviation.
To explore the challenges faced by Zakat institutions in fulfilling their objectives. To assess
the impact of Zakat institutions on socio-economic development.
2. Literature Review
3.1. Methodologies
Research Design: This study adopts a qualitative research design incorporating document
analysis and semi-structured interviews with key stakeholders involved in Zakat
administration and distribution.
3.2. Sampling:
Purposive sampling will be employed to select participants representing Zakat institutions,
scholars, government officials, and recipients of Zakat funds.
4. Findings
Preliminary findings indicate that Zakat institutions play a crucial role in poverty alleviation,
social welfare provision, and community development. However, challenges such as lack of
transparency, inadequate governance structures, and ineffective distribution mechanisms
hinder their effectiveness.
5. Conclusion
In conclusion, the examination of Zakat institutions has illuminated their pivotal roles,
significant challenges, and profound impact within the context of Islamic finance and social
welfare. Throughout history, Zakat institutions have served as the cornerstone of
redistributive justice, ensuring the equitable distribution of wealth to those in need as
mandated by Islamic teachings. Their roles extend beyond mere collection and distribution of
Zakat funds; they play a crucial role in fostering socio-economic development, poverty
alleviation, and community empowerment.
However, these institutions face multifaceted challenges ranging from administrative
inefficiencies, lack of transparency, to issues of corruption and mismanagement. Addressing
these challenges requires a comprehensive approach involving reforms in governance
structures, enhanced accountability mechanisms, and leveraging technology for efficient
Zakat collection and distribution.
Despite these challenges, the impact of Zakat institutions cannot be understated. They serve
as catalysts for social cohesion, poverty reduction, and sustainable development within
Muslim communities worldwide. By channelling Zakat funds towards education, healthcare,
entrepreneurship, and social welfare programs, these institutions contribute significantly to
improving the livelihoods of the underprivileged and fostering inclusive growth.
Moving forward, it is imperative for Zakat institutions to embrace innovation, adopt best
practices, and collaborate with stakeholders to maximize their impact and reach. Through
collective efforts and commitment to the principles of justice and compassion, Zakat
institutions can continue to uphold their sacred mandate of serving humanity and building a
more equitable society.
6. Recommendations
Based on the study findings, recommendations include:
Strengthening governance mechanisms and transparency within Zakat institutions. Enhancing
collaboration between Zakat institutions, government agencies, and civil society
organizations to optimize resource allocation and distribution. Promoting awareness and
education on the importance of Zakat and its potential impact on poverty alleviation and
community development.
7. References