Page 135 - Zakat & Waqf: Impact on Women and Community Development

Zakat & Waqf: Impact on Women and Community Development | 125
© Zakat & Waqf: Impact on Women and Community Development
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The positive impact of privatization of zakat collection on increasing
compliance with zakat payment is attributed to the more efficient and
focused management that these centers offer. As independent entities,
PPZs can employ strategies and approaches from the private sector to
optimize zakat collection efforts and enhance overall efficiency. This
increased effectiveness may lead to higher collection rates as Muslims
perceive that their zakat contributions are being utilized more
effectively for the benefit of the needy.

However, it's worth noting that not all empirical studies have
supported the notion that privatization of zakat collection has a
significant impact on increasing zakat collection. For example, Nor
Ghani et al. (2001) found no significant impact of privatization on
zakat collection. This indicates that the effectiveness of PPZs may vary
depending on other factors, such as the specific context and the
strategies employed by the centers.

Other organizational factors, such as zakat promotional campaigns,
perceived zakat service quality, and salary deduction mechanisms, have
also been found to influence Muslims in paying zakat. Effective
promotional campaigns can raise awareness about zakat and its
importance, encouraging more individuals to fulfil their zakat
obligations. Similarly, providing a high-quality zakat service experience
can enhance trust and confidence in the zakat system, leading to
increased compliance.

Additionally, the implementation of salary deduction mechanisms,
where employers deduct zakat directly from employees' salaries, can
streamline the zakat payment process and make it more convenient for
individuals to fulfil their zakat obligations.

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