Are There Any Zakat Surplus Funds? A Case Study

Abstract

Zakat, or almsgiving, is one of the main pillars of the Islamic faith. In Malaysia, zakat institutions play an important role in managing zakat funds, especially issues relating to the collection and distribution of zakat. Given the many background critics regarding the inefficiencies in managing zakat, particularly about the perception of having zakat surplus funds, it is pertinent to get insights into the existence of such funds. Applying a single case study approach, this study conducted semi-structured interviews with a few officers in charge. Other than that, the current collection process of the zakat funds is examined. A framework is provided to elucidate such a process. Findings confirm that there is no zakat surplus fund, all zakat collected is distributed accordingly. However, a few aspects need to be improved for the betterment of the zakat institution and to enhance the public’s understanding of the issue regarding the zakat surplus funds. Recommendations to tackle these aspects are discussed.