Managing Zakat Institutions: The Relevance of TQM

Abstract

This paper intends to analyse how zakat (tithes) institutions are managed; more so on how it achieves its objective of transforming the distribution of zakat from a subsistence to a productive form of zakat. The intention to transform is seen as an effective mechanism for distributing zakat to overcome poverty, especially among the hard-core poor, those eligible for zakat (asnaf) and the muallaf (people who have embraced Islam) who have the potential and are skilful. Whether the transformation succeeds or not closely depends on how the zakat institutions are managed. In order to make the zakat institutions play a more effective and dynamic role in efforts towards transformation, it needs a form of institutional management that is practical and effective.

The aim of analysing how zakat institutions are managed in this article is based on two problems that were identified. Firstly, there is not one form of institutional management method capable of withstanding the measure of time that could be used by current zakat institutions to achieve the objectives of transformation in the long term. The second problem is the phenomenon of widely using the conventional management method by Islamic development institutions, generally and the zakat institutions, specifically. Hence, the question is, can the characteristics of conventional zakat institution management adopted today be applied in its actual form, especially in these transformation efforts. What are the characteristics that are compatible with the philosophy of zakat institutions, especially compatible with the function to achieve the objectives of transforming subsistence zakat to a productive zakat distribution? What are the management characteristics that should be adopted by zakat institutions so that it would contribute towards the transformation objectives? This paper intends to elaborate on these three questions.