Journal Article

While most articles and studies are focused on zakat collection per se, this study would like to explore the optimality of zakat collection rate, albeit actual zakat collection rate versus potential zakat collection rate. Issues such as awareness, education and accountability are among the key obstacles that hinders the optimization of zakat collection rate. This study is explorative in nature. Data was collected from zakat institutions and Department of Statistics Malaysia, which are all publicly available, covering 2005 to 2022. Proxies were used for estimation of potential zakat collection rate, namely fraction of gross domestic product (GDP) and Muslim population. A formula was also used to complete this process. It was found that Kelantan is the state with the highest actual collection rate, followed by Kuala Lumpur and Terengganu. Issues of education, awareness and accountability is also present in this study; hence, better promotion of zakat and accountability of zakat institutions are required to optimize the zakat collection rate in Malaysia.

The purpose of this study is to examine accounting and management practices in two Indonesian awqaf institutions. It intends to seek evidence with regard to how mutawallis discharge their accountability. Two case studies were undertaken on two awqaf institutions in Indonesia, i.e. ABC and XYZ waqf foundations. Data were collected through various methods, i.e. interviews, document reviews and direct observations.The findings show that ABC shows more efficient management and greater transparency and accountability than XYZ due to the presence of Islamically committed professionals in the former, despite the better accounting information system and more “academically” qualified personnel in the latter. This study only concentrates on two Indonesian awqaf institutions.The paper is the first attempt to address accounting issues in awqaf institutions, particularly in Indonesia.