Behavior of Paying Zakat through Zakat Institutions

Abstract

As a Muslim-majority country, Indonesia has zakat as an instrument which can potentially contribute to poverty alleviation. Managing zakat through institutions (OPZ) has been proven to improve the standard of living of the society. Unfortunately, the current number of zakat collections is far behind the calculated potential. The behavior of people who pay zakat directly (not through amil) and the low level of public literacy about zakat are the main problems to deal with. This study aims to analyze the determinants that affect the behavior based on the extended Theory of Planned Behavior (TPB) approach. SEM-PLS results show that religiosity has a significant effect on individual trust in zakat institution but has no effect on zakat knowledge. Trust toward zakat institution has a significant effect on attitudes, subjective norms, PBC, and intentions; while zakat knowledge has a significant effect only on attitudes, PBC, and intentions. Attitudes and PBC have a significant effect on intentions, but there is no effect of subjective norm on the intention to pay zakat through OPZ. Lastly, intention also has a significant effect on a person's behavior in paying zakat through zakat institution. Several managerial implications are formulated based on the results. Keywords: TPB; zakat behavior; zakat institution.