How is the Transparency of Zakat Management Entities in Indonesia?

Abstract

Zakat is the third pillar of Islam. Zakat must meet the requirements of meeting the nisab. The potential for zakat in Indonesia reaches IDR 233.8 trillion, but its realization has only reached IDR 10.2 trillion. This study aims to measure the transparency index of zakat management entities in three dimensions: financial transparency, management, and programs. This study quantitatively measured using a descriptive approach. Data were collected through questionnaires from zakat management entities, namely DompetDhuafa, Indonesian Zakat Initiative, and BaitulmaalMuamalat. The data were processed using a multistage weight index model. A non-probability sampling approach with purposive sampling was used for the sample selection. This study indicates that the transparency index values of the three LAZs are in the transparent category. The Indonesian Zakat Initiative (n=0.90), BaitulmaalMuamalat (n=0.85), and DompetDhuafa (n=0.83). Initiative Zakat Indonesia (IZI) obtained the highest index value in the financial dimension. BaitulmaalMuamalat obtained the highest index value in the financial dimension. DompetDhuafa obtained the highest index value in the management dimension. Thus, the three LAZs must continue to maintain and increase the value of the transparency index to maintain a good zakat management entity.