The Muzakkī Factor: A New Approach to Optimizing Zakat Collection in Zakat Management Organizations (ZMO)

Abstract

Objectives: Despite the potential of zakat to alleviate poverty, Zakat Management Organizations (ZMOs) consistently face challenges in meeting their collection targets. This paper argues that the focus on institutional processes has overlooked a critical variable in this field of inquiry: the zakat payer (muzakkī). Methodology: This paper adopts a quantitative approach grounded in behavioral economics. Drawing on Planned Behavior Theory, it advances an analytical model that tests the key factors influencing a muzakkī's philanthropic decisions. Data was collected from 251 respondents, and the proposed model was subsequently analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: Our analysis demonstrates that the muzakkī’s positive attitude and their level of understanding have a significant positive impact on their intention and compliant behavior. However, contrary to common assumptions, trust in ZMOs does not directly influence payment behavior. The key factor encouraging zakat payment through a ZMO, based on our analysis, is the perceived ease and accessibility of the facilities provided. Thus, the findings provide a clear directive for ZMOs: while building trust is important for long-term reputation, resources should be strategically allocated to simplifying payment processes and enhancing convenience. Originality: The main contribution of this study is developing and validating the muzakkī factor approach, thus shifting the focus of Zakat optimization from an institutional position to one that is donor-centric. By identifying the less-significant role of trust in immediate payment decisions, this paper challenges the conventional view and offers a more nuanced, evidence-based strategy for Zakat mobilization.