Microfinancing from the Zakat Fund in Baitulmal Aceh and the Readiness of Malaysia's Asnaf Entreprenuers

The recent Covid-19 pandemic has swept the globe. As a result, there has been a spike in the number of relative poor who are experiencing economic hardships. This poses a predicament for the unbankable, reducing their options to apply for funding via banking products. With the available financial capacity, zakat institutions are viewed as the closest alternative in terms of being a source of funding, either through the microfinacing method or the qard hasan principle. Zakat is considered capable of becoming a social entrepreneurial system and a worthy alternative. The question is whether Islam permits microfinancing using zakat funds. If permitted, what is the rationale for distributing zakat through microfinance? Are there asnaf entreprenuers in Malaysia ready to take microfinance from the zakat fund to finance their businesses? This study is done using the case study method by conducting a semi-structured interview with zakat expertise and asnaf entreprenuers. Based on the content analysis, the findings of the study indicate that Islam permits microfinance using zakat funds. Asnaf entreprenuers are likewise eager to acquire microfinance from zakat money in order to strengthen their economic position and develop in life. This microfinancing is expected to have a good effect, particularly on the rising demand for asnaf entreprenuers. So, it is expected that asnaf entreprenuers will be able to switch from being a zakat recipient to a zakat payer within a certain amount of time. This will increase the amount of zakat and decrease the number of poor people. Even the poor's economy can be stimulated without usury (riba). © 2023 UNIVERSITY OF ZILINA.

A Fintech-Based Zakat Model Using Artificial Intelligence

The COVID-19 pandemic and its associated lockdown have created a mammoth economic cost to the economies around the globe. The policy response to the crisis must be fast, secure, and sustainable. It has also created astonishing solidarity among the people with every element of society irrespective of race, caste, creed, or religion working together to save humanity. To overcome the financial and economic disruption caused by the pandemic, it needs immediate attention from the economists and policymakers. Islamic finance has many financial instruments for helping the poor by alleviating poverty, distributing income fairly, and improving social welfare, they comprise, Zakat, Sadaqat, Awqaf, etc. Zakat is the compulsory contribution from the Muslims to the poor and needy every year. Zakat is the compulsory donation from the rich and able Muslims which must be given to the poor and needy within a year. This immediate benefit of Zakat is well suited to tackle an economic crisis such as the one caused by COVID-19. Islamic finance in combination with the Fintech-based technologies like AI, Blockchain, machine learning, and natural language processing can work wonders in achieving Islamic finance objectives. The present study proposes an AI-based Islamic Fintech model to helping the needy and poor affected due to COVID-19. The model uses AI and NLP-based Fintech model for collection and dissemination of Zakat money to needy, poor, COVID-affected, and vulnerable sections of the society. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.

The use of zakat in the pandemic response: the case of Islamic Relief and BAZNAS in Indonesia

This article compares two Islamic organisations, a non-governmental and a national one, in their methods of collecting and distributing zakat, and analyses how they addressed the COVID-19 crisis with these funds in the period 2020–2021. The study examines Islamic Relief as a Muslim non-governmental organisation involved in humanitarian response, and the National Board of the Zakat Republic of Indonesia (BAZNAS) as a centralised national institution. Both of them are working to improve zakat management, due to the awareness of its untapped potential, but the measure of impacts and allocation of resources diverge in strategies and efforts. Considering their different structures, a comparison based on parallel analysis of collecting methods, distributing channels and programmes financed shows the limits, potentials and best practices of these two institutions committed to zakat management and its improvement.

An Assessment of Corporate Zakat Payment During Covid-19 Pandemic

This study aims to assess corporate zakat payment during the Covid-19 Pandemic Period. This is intriguing due to the fact that Covid-19 caused lockdown, recession, and financial crisis that could affect the company. Unlike business activities and performance which are significantly affected by locked down policies due to the Covid 19 Pandemic charitable activities including Corporate Zakat exhibit a more positive resilient response to continuously support those in need and affected by covid 19 during the pandemic period. This study employs a qualitative method based on the data provided. The outcome indicates that Covid-19 pandemic period had no impact on corporate zakat payment, as some businesses continued to pay zakat during the pandemic. This demonstrates that Covid-19 had no direct impact on zakat payments made by corporations. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.

Perceptions about the common malpractice of Zakat paying in Bangladesh during Covid-19 pandemic: evidence from the supply side

PurposeA nationwide common malpractice in Zakat distribution has been prevailing in Bangladesh for the past few decades. The paper is a groundbreaking effort to investigate the perceptions of the Zakat payers about the common malpractices and to highlight whether any change in the conventional distribution of Zakat has occurred during the Covid-19 pandemic. The study also aims to extract the common perception of the Zakat payers regarding the validity of the changed practices during the pandemic.Design/methodology/approachThe study adopts the qualitative research approach allowing an in-depth interview technique based on an unstructured questionnaire schedule to obtain information from the Zakat payers, complemented by the key informant interview with the Islamic Scholars. The study obtained data from Zakat payers administering a purposive sampling technique based on two specified criteria. After coding the information on three main themes, content analysis is used to examine the results.FindingsThe results reveal that although the Zakat payers dislike the common practices because of some antithetical issues, they still practice the same customs. Moreover, they apportion most of the value of Zakat in purchasing low-quality festive-motive clothes for the recipients. They are ignorant about Islamic law and the validity of such practices. According to scholars, these activities are not a pure system of Zakat provision and unable to alleviate poverty. Amid the Covid-19 pandemic, this practice shifted heavily to buying food items for the poor due to the financial hurdles they confronted during the pandemic. Although no solid argument is deduced from the participants about the exactitude of such distributional change, scholars regard the transformation as beneficial to the afflicted and the impoverished who have been hit by the pandemic, as well as not conflicting with the Zakat legislation.Practical implicationsThe study is a novel contribution to addressing the malpractice in Zakat distribution through receiving practical information from the Zakat payers, which will help produce more in-depth research in Islamic finance. Furthermore, this research will help the government and people raise awareness about the authentic practices of Zakat distribution according to the codes of Shari'ah.Originality/valueThis study is a pioneering investigation since a scarcity of scholarly works attempted to identify the impact of Covid-19 on the practice of Zakat distribution and the associated perception regarding its Islamic jurisprudence. To the best of the authors' knowledge, the investigation of common malpractices of Zakat is still unearthed by no former rigorous studies in the context of Bangladesh. The present study bridges this gap and paves a pragmatic research dimension in the Islamic finance.

Knowledge discovery of zakat administration worldwide from YouTube and Zoom via text mining

Purpose: Zakat (Islamic almsgiving) plays a considerable role in dealing with the socioeconomic issues in times of COVID-19 pandemic, and such roles have been widely discussed in virtual events. This paper aims to discover knowledge of the current global zakat administration from virtual events of zakat (e.g. webinars) on YouTube and Zoom via text mining approach. Design/methodology/approach: The authors purposefully sampled 12 experts from four different virtual zakat events on YouTube and Zoom. The automated text transcription software is used to pull the information from the sampled videos into text documents. A qualitative analysis is operated using text mining approach via machine learning tool (i.e. Orange Data Mining). Four research questions are developed under the Word Cloud visualisation, hierarchal clustering, topic modelling and graph and network theory. Findings: The machine learning identifies the most important words, the relationship between the experts and their top words and discovers hidden themes from the sample. This finding is practically substantial for zakat stakeholders to understand the current issues of global zakat administration and to learn the applicable lessons from the current issues of zakat management worldwide. Research limitations/implications: This study does not establish a positivist generalisation from the findings because of the nature and objective of the study. Practical implications: A policy implication is drawn pertaining to the legislation of zakat as an Islamic financial policy instrument for combating poverty in Muslim society. Social implications: This work supports the notion of "socioeconomic zakat”, implying that zakat as a religious obligation is important in shaping the social and economic processes of a Muslim community. Originality/values: This work marks the novelty in making sense of the unstructured data from virtual events on YouTube and Zoom in the Islamic social finance research. © 2022, Emerald Publishing Limited.

The use of zakat in the pandemic response: the case of Islamic Relief and BAZNAS in Indonesia

This article compares two Islamic organisations, a non-governmental and a national one, in their methods of collecting and distributing zakat, and analyses how they addressed the COVID-19 crisis with these funds in the period 2020-2021. The study examines Islamic Relief as a Muslim non-governmental organisation involved in humanitarian response, and the National Board of the Zakat Republic of Indonesia (BAZNAS) as a centralised national institution. Both of them are working to improve zakat management, due to the awareness of its untapped potential, but the measure of impacts and allocation of resources diverge in strategies and efforts. Considering their different structures, a comparison based on parallel analysis of collecting methods, distributing channels and programmes financed shows the limits, potentials and best practices of these two institutions committed to zakat management and its improvement.

THE DEVELOPMENT OF ECONOMIC POTENTIAL OF PEOPLE IN PANDEMIC THROUGH EARNING ZAKAT DISTRIBUTION

Purpose: This research aimed to ascertain the people's economic progress throughout the pandemic via the distribution of productive zakat by BAZ/LAZ in Pekalongan. Theoretical Framework: Zakat has evolved as a tool for economic growth and poverty reduction among the peoples of the regions during times of economic distress (Yusroni & Chadhiq, 2021). Zakat provides several benefits over the standard fiscal tools now available. Numerous ideas and theories have been advanced by specialists to address the issue of poverty (Alaro & Alalubosa, 2019;Iqbal & Mirakhor, 2011). However, not all ideas can be implemented and contribute to poverty reduction. It is anticipated that professional zakat administration and profitable usage would enable poverty reduction (Hoque, Khan, & Mohammad, 2015). Design/Methodology/Approach: Field research with a qualitative approach collects, manages, and distributes zakat funds, incredibly productive zakat at BAZ/LAZ in Pekalongan City. The technique is triangulation. Findings: The results showed that BAZ/LAZ in Pekalongan City had implemented effective zakat distribution programs, namely BAZNAS, LAZ Al Ummah, LAZISMU, and LAZ Central Java, while LAZINU had not implemented the effective zakat program optimally. In general, BAZ/LAZ in Pekalongan City used productive zakat to promote the potential of the people via various sorts of productive zakat initiatives throughout the pandemic. The primary objective of productive zakat is similar to that of BAZ/LAZ in Pekalongan City. According to defined protocols, the productive zakat distribution model is carried out precisely and accurately. Research, Practical & Social Implications: Despite several challenges, the distribution of productive zakat continued throughout the COVID-19 epidemic. The effective zakat program emphasizes developing diverse models via creativity and innovation for people's economic growth to avoid poverty. Originality/Value: The findings of the model of economic development of the people run by the mustahik also vary in the efforts carried out whose main objectives are to save, infaq, and develop businesses to avoid the problem of poverty. © 2022 The authors.

Perceptions about the common malpractice of Zakat paying in Bangladesh during Covid-19 pandemic: evidence from the supply side

Purpose: A nationwide common malpractice in Zakat distribution has been prevailing in Bangladesh for the past few decades. The paper is a groundbreaking effort to investigate the perceptions of the Zakat payers about the common malpractices and to highlight whether any change in the conventional distribution of Zakat has occurred during the Covid-19 pandemic. The study also aims to extract the common perception of the Zakat payers regarding the validity of the changed practices during the pandemic. Design/methodology/approach: The study adopts the qualitative research approach allowing an in-depth interview technique based on an unstructured questionnaire schedule to obtain information from the Zakat payers, complemented by the key informant interview with the Islamic Scholars. The study obtained data from Zakat payers administering a purposive sampling technique based on two specified criteria. After coding the information on three main themes, content analysis is used to examine the results. Findings: The results reveal that although the Zakat payers dislike the common practices because of some antithetical issues, they still practice the same customs. Moreover, they apportion most of the value of Zakat in purchasing low-quality festive-motive clothes for the recipients. They are ignorant about Islamic law and the validity of such practices. According to scholars, these activities are not a pure system of Zakat provision and unable to alleviate poverty. Amid the Covid-19 pandemic, this practice shifted heavily to buying food items for the poor due to the financial hurdles they confronted during the pandemic. Although no solid argument is deduced from the participants about the exactitude of such distributional change, scholars regard the transformation as beneficial to the afflicted and the impoverished who have been hit by the pandemic, as well as not conflicting with the Zakat legislation. Practical implications: The study is a novel contribution to addressing the malpractice in Zakat distribution through receiving practical information from the Zakat payers, which will help produce more in-depth research in Islamic finance. Furthermore, this research will help the government and people raise awareness about the authentic practices of Zakat distribution according to the codes of Shari’ah. Originality/value: This study is a pioneering investigation since a scarcity of scholarly works attempted to identify the impact of Covid-19 on the practice of Zakat distribution and the associated perception regarding its Islamic jurisprudence. To the best of the authors’ knowledge, the investigation of common malpractices of Zakat is still unearthed by no former rigorous studies in the context of Bangladesh. The present study bridges this gap and paves a pragmatic research dimension in the Islamic finance. © 2022, Emerald Publishing Limited.

ZAKAT MENUMBUHKAN KEMANDIRIAN EKONOMI MASYARAKAT

The Covid-19 outbreak has caused a decline in various sectors of life, especially in the world's economic sectors. This has resulted in a surge in unemployment everywhere, so that it is expected to give birth to poor people. This study discusses the efforts made by amil zakat institutions in fostering community economic independence as a solution to overcome these problems. This study was built with a qualitative research method through the support of Al-Qur'anulkariim, Hadith Books, journal literature, books, online news media, and other official records that have a level of relevance in accordance with the required discussion. These sources will be examined to construct reality and understand its meaning, then an analysis will be carried out, so that data suitability, norm appropriateness, and new normative ideas can be found. This study concludes that professional management of zakat transforms Islamic values through the utilization of zakat which is expected to change the cycle of decline into a cycle of progress. It is also hoped that it can provide positive ideas for the benefit of the people to become independent individuals. (English) [ FROM AUTHOR] Wabah Covid-19 telah menyebabkan kemerosotan diberbagai sektor kehidupan, khususnya pada sektor ekonomi di dunia. Hal ini mengakibatkan terjadinya lonjakan gelombang pengangguran dimana-mana, sehingga diperkirakan akan melahirkan masyarakat fakir. Studi ini mendiskusikan usaha-usaha yang dilakukan oleh lembaga amil zakat dalam menumbuhkan kemandirian ekonomi masyarakat sebagai solusi untuk mengatasi masalah tersebut. Kajian ini dibangun dengan metode penelitian kualitatif melalui dukungan Al-Qur'anulkariim, Kitab-kitab Hadits, literatur jurnal, buku, media berita online, dan catatan resmi lainnya yang memiliki tingkat relevansi yang sesuai dengan pembahasan yang dibutuhkan. Sumber-sumber tersebut akan ditelaah untuk mengkonstruksi realita dan memahami maknanya, kemudian dilakukan analisis, sehingga dapat diketahui kesesuaian data, kelayakan norma, dan gagasan-gagasan normatif yang baru. Kajian ini menyimpulkan pengelolaan zakat secara profesional yang mentransformasikan nilai-nilai Islam melalui pendayagunaan zakat yang diharapkan dapat mengubah siklus kemunduran menjadi siklus kemajuan. Juga diharapkan dapat memberikan gagasan positif untuk kemaslahatan umat agar menjadi pribadi-pribadi yang mandiri. (Indonesian) [ FROM AUTHOR] Copyright of Journal of Syntax Literate is the property of Ridwan Institute and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

Knowledge discovery of zakat administration worldwide from YouTube and Zoom via text mining

Purpose: Zakat (Islamic almsgiving) plays a considerable role in dealing with the socioeconomic issues in times of COVID-19 pandemic, and such roles have been widely discussed in virtual events. This paper aims to discover knowledge of the current global zakat administration from virtual events of zakat (e.g. webinars) on YouTube and Zoom via text mining approach. Design/methodology/approach: The authors purposefully sampled 12 experts from four different virtual zakat events on YouTube and Zoom. The automated text transcription software is used to pull the information from the sampled videos into text documents. A qualitative analysis is operated using text mining approach via machine learning tool (i.e. Orange Data Mining). Four research questions are developed under the Word Cloud visualisation, hierarchal clustering, topic modelling and graph and network theory. Findings: The machine learning identifies the most important words, the relationship between the experts and their top words and discovers hidden themes from the sample. This finding is practically substantial for zakat stakeholders to understand the current issues of global zakat administration and to learn the applicable lessons from the current issues of zakat management worldwide. Research limitations/implications: This study does not establish a positivist generalisation from the findings because of the nature and objective of the study. Practical implications: A policy implication is drawn pertaining to the legislation of zakat as an Islamic financial policy instrument for combating poverty in Muslim society. Social implications: This work supports the notion of “socioeconomic zakat”, implying that zakat as a religious obligation is important in shaping the social and economic processes of a Muslim community. Originality/values: This work marks the novelty in making sense of the unstructured data from virtual events on YouTube and Zoom in the Islamic social finance research. © 2022, Emerald Publishing Limited.

Determination Of Had Kifayah Zakat Among Pre-Graduate Students At Universiti Sains Islam Malaysia (Usim)

Had Kifayah refers to a minimum basic necessity rate set based on the current cost of living. The objective of this paper is to determine the current Had Kifayah for asnaf candidates focusing more on USIM Pre-Graduate students as the target group. The research method used are the qualitative and quantitative which apart from referring to existing writing and references, a survey was conducted to obtain the latest data from asnaf students through previous databases. The survey has been conducted via online instead one to one interview due to Covid-19 pandemic. Through a survey that covers aspects of student spending and income, the average of spending method has been used as per agreed with all team members to determine the Had Kifayah, in line with the method used by the state Islamic religious council as a reference. With the improvements made in the agreed calculation system, a more accurate calculation method has been developed and at the same time can help the process of proper distribution of zakat.