Measuring the Effectiveness of Zakat Disbursement at Amil Zakat Institution Dewan Da’wah Utilizing Zakat Core Principle Approach

Zakat accumulation inside Indonesia has shown significant growth, with an average of 25.71% in the previous five years (2015-2019). Zakat collection contributions came from Baznas, Baznas Province, Baznas Regency/City, including Amil Zakat Entity (LAZ), with the most significant contribution of LAZ reaching 56.79%. The LAZ Dewan Da’wah is one LAZ contributing to realising the zakat governance objectives. This study desires to measure the effectiveness of allocating Zakat, Infaq/Alms, and other religious, social funds at LAZ Dewan Da’wah. The effectiveness’ level was measured utilising the zakat core principle model in the allocation to collection ratio (ACR) directions. The research object used the LAZ Dewan Da’wah financial statements from 2015 to 2019. The results presentation, the allocation effectiveness at LAZ Dewan Da’wah for 2015-2019 reached 92% in the High-Effective type with an ACR value of ≥ 90 per cent. It displays that the LAZ Dewan Da’wah is on track. Thus, LAZ Dewan Da’wah has contributed to achieving the national zakat governance goals, namely, increasing zakat’s benefits to realise the welfare of mustahiq, including poverty alleviation.


INTRODUCTION
Zakat accumulation in Indonesia shows significant growth. Based on data from the National Zakat Statistics published by ((BAZNAS, 2020)
Contributions for collecting zakat come from Baznas, Provincial Baznas, Regency/City Baznas, and the National Amil Zakat Institute. In detail, this is illustrated in Figure 2.  It shows that LAZ has a significant contribution (Efri Syamsul Bahri & Arif, 2020), supports development programs (Bayinah, 2019), contributes to economic, educational and social development (Alkahfi, Taufiq, & Meutia, 2020), and has the effect of distributing zakat funds. In the form of capital for mustahiq business development (Amelia, Machfiroh, & Fitriyani, 2020). It is also evidenced by the research results (Tambunan, Harahap, & Marliyah, 2019), which shows that zakat affects Indonesia's economic growth both in the short and long term. The contribution is very holistic in the sustainability of the welfare of mustahiq (Nasrulloh, 2019).
During the Umayyad and Abbasid caliphs (Marasabessy, 2017), it has been proven that zakat contributes to the prosperity and advancement of the people and Islamic civilization. Even the zakat collected (Efri S. Bahri, 2013) is one of the permanent sources of Islamic treasury (Baitulmaal) and is used for the benefit of the ummah (Efri Syamsul Bahri, 2015). (Embong, Taha, & Nor, 2013) mentions that during Caliph Umar Al-Khattab, the administration of Zakat (Baitulmal) managed to overcome poverty very effectively. This success was imitated during Caliph Umar Abdul Aziz, where poverty was once again eradicated. (Johari, Ali, & Aziz, 2018) explain that zakat plays an essential role in poverty alleviation and income redistribution of the Muslim community and is an essential component of public finance in Islam.
According to (Asnaini, 2017), if the OPZ is optimal in managing zakat, the goal of zakat to make people prosperous can be achieved to minimize poverty. It is in line with the objectives of the national Zakat management as described in Law No. 23 of 2011 concerning Zakat Management (Efri Syamsul Bahri & Khumaini, 2020), namely: increasing the benefits of zakat to realize community welfare and poverty alleviation.
On the other hand, according to (Ahmad, Othman, & Salleh, 2015), when zakat distribution is not effective, it can make zakat payers angry and dissatisfied. It can even cause them to pay zakat directly to asnaf, not through zakat institutions. Therefore, the effectiveness of zakat distribution needs to be a concern of various parties.