Making Sense of Digital Distribution of Zakat

Zakat may be paid out by an individual muzakki (zakat payer) directly to an individual mustahiq (zakat beneficiary). This is the practice in countries where there is no organized or institutional mobilization and disbursement of zakat. Arguably, organized zakat management has many positives. Available evidence suggests that organized zakat management may be more efficient in…

Micro Waqf Banks: A New Breed of IF Providers for Indonesian Poor

I deem Indonesia, my new home, as the University of Islamic Microfinance. And I have good reasons for the same. If you exclude the replications of conventional microfinance models, most of the indigenous Islamic microfinance experiments owe their origin to creative Indonesian minds. The famous Baitul-Maal-wat-Tamweels (BMTs) continue to engage the Islamic finance community for…

The Sustainable Development Goals from a Shariah Perspective – V

Since the religion of Islam sets the agenda for development in predominantly Muslim societies, it is interesting to examine to what extent the SDGs conform to the Islamic vision of development. In order to explain the Islamic vision of development, Islamic scholars have come up with a broad framework rooted in what are called, the…

The Sustainable Development Goals from a Shariah Perspective

The Sustainable Development Goals framework reflects the consensus among the global community of policy makers on major challenges confronting humanity. It sets the direction in which all resources will be channelized over the next decade-and-half with clear targets to be achieved by the year 2030. Adopted by all United Nations Member States in 2015, the…

Accountability and Governance in Zakat Institutions – II

In Part I of Accountability and Governance in Zakat Institutions, we presented a broad comprehension of the concepts of accountability and governance from the standpoint of Islamic organizations, such as, the ZIs and also their foundations in the Shariah. In this part, we move to more specific operational procedures and discuss the requirements that must…

Accountability and Governance in Zakat Institutions – I

Accountability implies the duty of an entity to use (and prevent misuse of) the resources entrusted to it in an efficient and effective manner. This however, needs to be done within the boundaries of the moral and legal framework of the society. Further, the entity must provide an account of its actions to various stakeholders…

Risk Analysis for Zakat Institutions – II

In Part I of this document on risk analysis for Zakat Institutions, we identified certain risk factors within the broad category of reputation risk. Here are other risks within the broad categories of business risk and operational risk. Business Risk: Business risk is associated with a ZI’s business environment, including macroeconomic and policy concerns, legal and…