CONTEMPORARY SHARIAH ISSUES RELATED TO OPERATING COSTS OF ZAKAT DISTRIBUTION BY ISLAMIC FINANCIAL INSTITUTION
Keywords:
zakat, wakil, amil, fi sabilillah, costsAbstract
The management of zakat requires thorough governance procedures to ensure the end-to-end process of collection and distribution of zakat funds is conducted in the proper manner. The research focuses on contemporary Shariah issues related to zakat distribution by Islamic financial institution (IFI) practices, such as through direct distribution or wakalah zakat or others. It aims to study operating costs related to zakat distribution and further elucidate their Shariah justifications on the possibility to deduct such costs from zakat funds by critically analyzing classical and contemporary Shariah scholars’ views of the said subjects. The research explores the Shariah opinions on the concept of amil (collector and distributor of zakat), wakil (agent) or ajir (performer of a specific task), and fi sabililllah; whether the operating costs of zakat distribution can be considered as amil’s portion, wakalah or ajir cost, or fi sabilillah’s portion. The Shariah justifications for the allowable operating costs are believed to assist IFI in specific and Muslim ummah as a whole in distributing zakat funds to asnaf (zakat beneficiaries) and executing an impactful zakat distribution.
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