International Journal of Zakat <p style="text-align: justify;">International Journal of Zakat (IJAZ) is an open access journal. All accepted manuscripts are published Free of Charges.&nbsp;International Journal of Zakat (IJAZ) focuses on zakat studies such as general activities of zakat management, institutional foundation, zakat administers qualifications, good governance practices, assessment methodology and other areas related to zakat. General activities of zakat management covers discourses about&nbsp;zakatable&nbsp;wealth, methods of collection and performance indicator; Institutional foundation includes private sector, special department, government on mandatory basis enforced by the regulation and credibility of the institutions; Zakat administers qualifications comprises sharia and professionalism principles and trust of zakat payers; On the other hand, good governance practices covers internal/external reporting system and risk management.</p> <p style="text-align: justify;">International Journal of Zakat (IJAZ) mainly publishes articles using quantitative data, however, this journal also welcomes articles written in the qualitative approach. Contributions are welcome from across disciplines, including economics, history, law, finance, psychology, sociology and various studies related to zakat. By bringing these studies, IJAZ makes an effort to examine that the development of zakat would give an alternative contribution to the poverty alleviation and improve social welfare.</p> en-US (International Journal of Zakat) (Center of Strategic Studies, BAZNAS) Mon, 31 Dec 2018 00:00:00 +0000 OJS 60 Concept of Revenue, Expenses and Liabilities in Accounting for Zakat, Waqf and Baitulmal in Malaysia: An Analysis from Shariah Perspective <p><em>Revenue, expenses and liabilities are an important concept in current accounting practices. These concepts are applied in accounting standards where this standard serves as a guideline for a company or organization in preparing and presenting income, expenses, assets and liabilities in accordance with the standards set by the International Accounting Standards Board (IASB). The accounting standards issued by this international body refer to conventional accounting standards. In Malaysia, the State Islamic Religious Council (MAIN) as the trustee for Zakat, Waqf and Baitulmal uses standards issued by the Malaysian Accounting Standards Board, Private Entity Reporting Standards (PERS) and best practice guidelines by the National Audit Department (Malaysia) (JANM). These two documents are used as references in the preparation of financial reporting for MAIN. However, there are problems in terms of implementing these concepts for Zakat, Waqf and Baitulmal with current accounting standards. This is because current accounting practices are different from the concepts of revenue, expenses and liabilities adopted by Zakat, Waqf and Baitulmal according to Islamic law. This study aims to analyze the concept of revenue, expenses and liabilities in Zakat, Waqf and Baitulmal accounting from Shariah perspective. The design of this study is qualitative. The method of content analysis was used to analyze data from sources such as classical Fiqh books. The findings show that there is a difference between the concept of revenue, expenses and liabilities in Zakat, Waqf and Baitulmal accounting in the Islamic context. The study is expected to help the parties involved to develop accounting standards for zakat, waqf and baitulmal which are compliant with Shariah.</em></p> Marina Abu Bakar ##submission.copyrightStatement## Mon, 31 Dec 2018 00:00:00 +0000 Strategy Model for Increasing the Potential of Zakat through the Crowdfunding-Zakat System to overcome Poverty in Indonesia <p><em>Indonesia, through Presidential Regulation No. 18 of 2007, Indonesia's annual economic development goals are directed to encourage economic growth in order to expand employment and reduce poverty. With implications for income equity, zakat has a strategic potential that is feasible to be developed into one of the instruments of income distribution in Indonesia. Based on data collection and distribution of funds of the Zakat Management Organization below, in 2015, the total fund collection experienced a growth of 10.62% compared to 2014. This study will discuss discussing the related Strategy Model for Increasing the Potential of Zakat through Crowdfunding-Zakat System for poverty alleviation in Indonesia. Abdullah (2015) in his research developed a new methodology to measure poverty alleviation in Pakistan, focusing on consumption / expenditure of poor households for basic needs, government expenditure in terms of zakat and the number of recipients of zakat as the three main determinants. In Syafiq (2014) the realization of the prospect of zakat in the modern economy must also be supported by the management of zakat management organizations in a modern way, meaning that in the fundraising strategy, and the distribution must follow modern management and strategy as a company in achieving its target. Thaker and Pitchay (2018) through their research revealed that crowdfunding model is used to raise funds to develop Waqf land in Malaysia where in their research they propose a sustainable model that can overcome liquidity problems faced by Waqf institutions in developing Waqf land. Using qualitative research methods with a literature study approach. With the crowdfinding-zakat system, it provides convenience in the collection of zakat funds from the wider community in line with several regions in Indonesia that show the potential and positive impact on income distribution.</em></p> Ajeng Sonial Manara, Arif Rachman Eka Permata, R. Gatot Heru Pranjoto ##submission.copyrightStatement## Mon, 31 Dec 2018 17:24:27 +0000 Capitalizing on Economic Function of the Institution of Zakāt in Modern Economy <p><em>This study analyzes the economic potential of the institution of Zakāt on income redistribution, poverty and aggregate demand. Through a mathematical exposition, we show that if a person keeps idle investible wealth, then Zakāt will deplete the idle wealth over time. On the macroeconomic front, proportional Zakāt linked with income will act as an automatic stabilizer. If an economy is in disequilibrium and policies fail to immediately recover and boost incomes, wealth Zakāt will enable the distributive allocation that works independently of the business cycles and will help in stabilizing the extremes of the business cycles. In this way, wealth Zakāt will act as a permanent stabilizer. We discuss that Zakāt is an important tool for redistributing income and it can also increase aggregate spending. The redistribution from people with lower MPC to people with higher MPC will boost aggregate spending even with the same level of aggregate income. Finally, we recommend certain steps at the policy and implementation level so that the institution of Zakāt can be effectively utilized to contribute in poverty alleviation. We recommend that it is appropriate to disburse Zakāt at the federal level. This way, the regional disparities can be reduced more effectively. To gain the trust and the confidence of people, it is vital to improve the governance and transparency. In this regard, we recommend that the Zakāt collection and disbursement details shall be reported in a standard way periodically. We also highlight the importance of creating synergies between Zakāt and other welfare programs. We also draw attention towards modifying the accounting standards to achieve transparent computation, assessment and collection.</em></p> Salman Ahmed Shaikh ##submission.copyrightStatement## Mon, 31 Dec 2018 00:00:00 +0000 Exploring the Potential of Zakah for Supporting Realization of Sustainable Development Goals (SDGs) in Indonesia <p><em>Sustainable Development Goals (SDGs) is a universal call to end poverty, protect the planet and ensure that all people enjoy peace and prosperity; goals which are strongly in line with the objective of Islam (maqasid al shariah).&nbsp; </em><em>Despite of global acceptance of the concept, however, financing issues remain the biggest challenge for realizing the SDGs. Innovative financing through partnership with religious and other institutions, therefore, has been recommended. With this perspective, this study aims to explore the potential of zakah to support financing and realizing the goals in Indonesia. This is done by identifying factors that influence the intention of Muslims to pay zakah and exploring the SDGs’ clusters prioritized to be financed from the zakah funds.&nbsp; The study collected primary data from 304 respondents living in Greater Jakarta area of Indonesia and utilized the Theory of Planned Behaviors (TPB) approach to frame the intentions. It also used descriptive statistics and Structural Equation Modeling (SEM) to analyze the data. The findings suggest that three TPB variables, namely attitudes, subjective norms and behavioral control, have a positive influence on the Muslims’ intention to pay zakat. Additionally, attitudes are influenced by religiosity, knowledge and trust to zakah organizations. Furthermore, of the five objective clusters’ in the SDGs, the people cluster (which includes objectives such as poverty reduction, education and health improvement) received the highest priority in the perceptions of the Muslims regarding the use of zakah for financing SDGs. The findings highlight the potential of zakah in supporting achievement of SDGs in Indonesia, something that might be useful for government, NGOs, zakah organizations and other zakah stakeholders. </em></p> Sarah Asmalia, Rahmatina Awaliah Kasri, Abdillah Ahsan ##submission.copyrightStatement## Mon, 31 Dec 2018 00:00:00 +0000 A Review on Zakat Payments by Islamic Banks in Malaysia <p><em>Zakat plays an important role in the economic development of the ummah. In line with Shariah requirements, the responsibility of paying zakat does not only lie in the Muslim individuals but also businesses, specifically Islamic banks. Islamic Banks exist to fulfil the financial (economic) needs of Muslims within the confines of the Islamic faith. This study aims to analyse the payment of zakat made by the Islamic Banks in Malaysia by firstly, examining the various methods adopted by the Islamic banks and secondly, comparing the existing method of zakat computation. A total of 16 Islamic banks are selected and the financial statements are reviewed from the year 2013 till 2017. The results of the study show that most of the Islamic banks adopted the two methods recommended by JAKIM and both methods show similar results. The results also show an underpayment of zakat by the selected Islamic bank. Further the study found that the detail computation of zakat is not disclosed in the financial statements and hence the study could not identify the adjustments for the zakat computation for all the Islamic banks.</em></p> Samsuwatd Zuha Mohd Abbas, Saliza Sulaiman, Noorbijan Abu Bakar ##submission.copyrightStatement## Mon, 31 Dec 2018 17:30:58 +0000 Correlation between Corporate Zakat, Capital Structures and Firm’s Performance: Case Study of Jakarta Islamic Index, Indonesia <p><em>The most important issue in corporate finance are how firms dealing with the structure of their capital and related to his performance. However, zakat payment and corporate tax will exist into the consideration of combination of debt and equity of the firms. In addition, there is an impact of capital structure on the performance of financial and non-financial firms operating in Indonesia for the period between 2013 an 2017. The data sampling taken from Jakarta Islamic Index companies, who has the report of zakat payment in their annual report.</em></p> Ummu Salma Al Azizah, Rito ., Muhammad Choirin ##submission.copyrightStatement## Mon, 31 Dec 2018 17:32:09 +0000 A Subjective Poverty Approach as an Alternative Measurement in Identifying the Poor and Needy <p><em>Poverty can be measured directly (based on consumption) or indirectly (based on income). </em><em>&nbsp;Both direct and indirect poverty measurement are called objective poverty measurement. Nonetheless, these indicators are not enough capture the multiple aspects of poverty. </em><em>Therefore, the alternative measure of poverty is</em><em> needed. </em><em>&nbsp;Subjective poverty is an individual assessment of their own poverty status. The poor have their own understanding and interpretation of their socio-economic situation. P</em><em>overty could be analyzed in a more comprehensive and better dimension by combining objective and subjective measures in identifying the poor. The Millennium Development Goals Report (MDGR, 2015) designates that Malaysia has been successful eliminated objective poverty.</em><em> Despite that, the issue of poverty still surfing especially the zakat authorities are experiencing increasing in the zakat applications categorized poor and needy each day. To avoid the situation where individuals are wrongly defined as poor or non-poor are to </em><em>compile objective and subjective measures on poverty. </em><em>The objectives of the study are to determine the criteria of subjective poor and to propose subjective poverty index (SPI) as an alternative poverty measurement. </em><em>The empirical analysis was based of 507 </em><em>zakat applicants of poor and needy in Melaka. The data was analysed using qualitative and quantitative methods in four phases of analysis.&nbsp; The findings</em><em> confirmed that subjective poverty index (SPI) is an initial effort to explain poverty in the perspective of the poor.</em></p> Azhana Othman, Abd Halim Mohd Noor, Mohamed Saladin Abdul Rasool ##submission.copyrightStatement## Mon, 31 Dec 2018 17:33:06 +0000