Zakat Scheme for Poverty Alleviation and Supplement for Microcredit Programs in Rural Areas for Community Development Muhammad Taimoor and Dyah Wulan Sari
Fakultas Ekonomi dan Bisnis Universitas Airlangga,Surabaya Indonesia.
Abstract
Poverty is often referred to as a phenomenon of scarcity, inadequacy or instability of income. Besides, poverty can also cause health issues, exacerbate social problems, leading to isolation, discrimination and loss of a bright future in Pakistan. Lately, the role of zakat the compulsory giving of a set proportion of one^s wealth to charity as a useful tool in combating poverty has been highlighted since zakat collected will be distributed specifically to the poor and needy groups. This paper seeks to assess the role of zakat in combating poverty among recipients. A questionnaire was distributed to 300 participants selected from the list of recipients who received assistance from Zakat institutions. A cluster random sampling has been utilized to select sampling from the target population. The data were analyzed using SPSS to provide descriptive analysis. Past evidence has shown how zakat has able to transform the recipient into a payer especially through education or business assistance. Proper management of zakat institution is seen as a powerful mechanism to facilitate community development and to strengthen the Muslim economy.
