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In search of credible zakat governance
As most zakat funds are organized privately by NGOs, providing an appropriate accountability mechanism is essential to avoid fraud.
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Paying donation: 'Zakat' (alms) commitee member serves a man paying alms at istiqlal mosque in Jakarta. (The Jakarta Post/Seto Wardhana)
Apart from fasting, Muslims are obliged to pay alms and zakat (tithes) during Ramadan.
Zakat are mandatory alms that serve to purify the wealth of eligible Muslims with certain criteria and specific calculations.
In Indonesia, amil zakat institutions play an intermediary role of collecting zakat and distributing them to eight beneficiaries, which include the institutions themselves. The other seven beneficiaries are the needy, the poor, people who convert to Islam, slaves, the debt-ridden, the wayfarer and people who fight for God.
The unique feature of amil zakat institutions results in the question of accountability. Transparency matters to the zakat institutions. Even though zakat payers sincerely seek to please God, the institutions are responsible for receiving the payments, and in the allocating and utilizing of the collected funds.
The earned credibility from such responsibilities helps the zakat institutions to avoid the risk of disproportional zakat allocation among the beneficiaries.
According to the 2011 fatwa on zakat from the Indonesian Ulema Council (MUI), unless the amil zakat is paid by the government, such institutions are only allowed to receive one-eighth or 12.5 percent of collected zakat.
As most zakat funds are organized privately by NGOs, providing an appropriate accountability mechanism is essential to avoid fraud.
