TRUST IN ZAKAT AUTHORITIES AND ZAKAT COMPLIANCE: A CONCEPTUAL ANALYSIS

Abstract

Trust in zakat authorities is becoming a significant factor influencing zakat payers to perform their zakat obligations with formal governing institutions. A lack of trust in zakat authorities may lead to an increase in self-zakat distribution practices and a decrease in zakat collection. Even though zakat is a system that redistributes wealth from the rich to the poor, understanding the elements of trust in zakat authorities is crucial for promoting Islamic economic, social, and governance sustainability. Inspired by the governance compliance framework that underpins the study, this paper adopted the four concepts of trust: accountability, performance, fairness, and transparency. The aim of this paper is to explicate the accountability, performance, fairness, and transparency concepts that represent trust in zakat authorities. Additionally, this paper also defines the zakat compliance term critically. This conceptual analysis entails distinguishing terms, analysing the understandings to which they refer, and representing them in a zakat compliance context. The analysis has shown that accountability is reflected in the credibility and competency of zakat authorities in managing zakat affairs; performance refers to the efficiency of service quality and promotion of zakat awareness; fairness focuses on collection and distribution procedures; and transparency demonstrates to what extent disclosure practices are rendered by zakat authorities. The present study adds to the growing body of zakat compliance research. Future studies should attempt to examine the relationship between trust in zakat authorities and zakat compliance by conducting applied research.