Increasing the Role of Zakat Institutions in Poverty Reduction through Productive Zakat Programs in Indonesia
Sutrisno
Universitas Muhammadiyah Yogyakarta
Abstract
Zakat Institutions have an essential role in helping the poor and the weak through empowerment programs. Thus, zakat plays a vital role in the life of Muslims, especially in alleviating poverty. Furthermore, zakat institutions as mediators between rich people and poor people with various programs to reduce poverty. The 2016-2018 Baznas Outlook shows the acquisition of zakat increased by an average of 10% per year and distribution increased by 13% per year). However, even though the allocation of zakat funds has been done and is growing every year, the problem of poverty, unemployment, and inequality has caused many issues to be debated. This paper intends to analyze poverty alleviation programs made by zakat institutions in Indonesia through productive zakat programs effectively by using descriptive qualitative methods. The primary purpose of zakat is to reduce the gap between the rich and the poor. If zakat funds are managed and channeled with a program model effectively, the distribution of zakat funds equitably to people, who are entitled to receive zakat can reduce this gap. So, this paper tries to discuss how to effectively manage zakat funds through productive zakat programs and suggest best practices that can be implemented by zakat institutions.
Keywords: Zakat institutions, Productive zakat, Funds distribution, Alleviate poverty.
Topic: International Conference on Islamic Studies in the Digital Era