Developing A Modern Zakat Management Model Digital Technology 4.0 Version

Abstract

This study aims to develop a modern zakat management model by analyzing the zakat payment method using marketable securities and their impact on zakat fund fluctuations managed by a modern amil zakat institution in Indonesia. Zakat institutions have never implemented the zakat payment transactions like this in other Islamic countries such as Malaysia, Pakistan, and Middle Eastern countries. The study‘s focus is on The National Zakat Board of Indonesia as a modern amil zakat institution that has made this transaction to accommodate muzakki investor‘s goodwill to pay zakat obligation in the form of shares that are still traded. According to fiqh, the payment of zakat using marketable securities in the form of traded shares is still in debate. According to fiqh scholars, Imam Hanafi does not allow the zakat fund investment. While Imam Maliki, Imam Syafie, and Imam Hambali, including Yusuf Al-Qardhawi, allow some arguments. From a financial analysis point of views, to reduce the risk of decreasing zakat funds due to stock price volatility, a linkage between zakat funds in the form of shares traded with general Islamic insurance is needed, which in this case, the researcher refer to as zakat linked takaful under wakalah-waqf contract. This research used literature and empirical study to compare zakat management practices in various Muslim countries, to develop a modern zakat management model collaborated with digital Islamic financial institutions in the banking and non-banking sectors.