The Weak Empowerment Performance by Amil Zakat Institutions in Achieving SDG No. 1: Perspective of Intellectual Capital

DOI

10.2991/978-94-6463-402-0_11How to use a DOI?

Keywords

Empowerment; Amil Zakat Organization; Poverty; Intellectual Capital

Abstract

Amil zakat (zakat management) organizations in Indonesia are expected to help the government reduce poverty per the Sustainability Development Goals (SDGs) No 1. This research aims to formulate the role of amil zakat institutions in empowering mustahiq (zakat beneficiary) to reduce poverty, as seen from the intellectual capital (IC) perspective. A case study was conducted in micro-, small-, and medium-scale enterprises (MSMEs) mentored by the Indonesian National Board of Zakat (Baznas), Muhammadiyah-owned amil zakat organization (Lazismu), and LAZ Yatim Mandiri located in Gresik, Mojokerto and Pasuruan Regencies. This research used in-depth interviews and focus group discussion (FGD) with administrators of this amil zakat organizations, observation, and documentation to strengthen the data validity. The study found that most amil zakat organizations merely distributed the funds rather than empowering the mustahiq. While both are spreading the fund and assigning mustahiq were the two roles that the amil zakat organizations should play, simply distributing the zakat, infaq (voluntary alms), and sadaqah (voluntary charitable donation), from now on ZIS, would only lead the mustahiq to be a wasteful individual.

Meanwhile, the ZIS fund could empower the mustahiq by providing them with working capital, equipment, tools, training, facilitation, and support. When empowerment was the dominant activity, Mustahiq’s economy would possibly be better and, thus, poverty would decrease, consistent with SDG No. 1. To empower the mustahiq, the IC perspective could be employed, i.e., by optimizing the integration between human capital, structural capital, and relational capital. From this research, it is recommended that amil zakat organizations mostly empower their mustahiq in an appropriate and well-planned manner because it will help turn mustahiq into muzakki (zakat payer) and reduce poverty. Finally, it is recommended for administrators of amil zakat organizations to employ IC perspective in empowering their mustahiq.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sigit Hermawan
AU  - Kumara Aji Kusuma
AU  - M. Abror
AU  - Prasetyo Utomo
AU  - Amelia Nugraha Dini
PY  - 2024
DA  - 2024/05/30
TI  - The Weak Empowerment Performance by Amil Zakat Institutions in Achieving SDG No. 1: Perspective of Intellectual Capital
BT  - Proceedings of the 2nd International Conference on Management and Business (ICOMB 2023)
PB  - Atlantis Press
SP  - 94
EP  - 100
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-402-0_11
DO  - 10.2991/978-94-6463-402-0_11
ID  - Hermawan2024
ER  -