ENGLISH - Institutional Governance of Zakat: A Conceptual Framework for Centralized and Decentralized Systems

Abstract

Zakat is a fundamental institution in Islam that promotes social justice, poverty alleviation, and equitable wealth distribution. Its effectiveness largely depends on the system through which it is collected, managed, and distributed. This article develops a conceptual framework for understanding and comparing centralized, decentralized, and hybrid models of Zakat administration. The study defines Zakat and examining its Qur'anic foundation, highlighting its role in achieving socio-economic balance and community welfare. It explores three governance models: the centralized model, where the state has primary authority over Zakat administration; the decentralized model, where collection and distribution are managed by communities, charitable organizations, or individuals; and the hybrid model, which combines state oversight with community participation. The article examines key governance principles, including accountability, transparency, regulatory oversight, public trust, compliance, and administrative efficiency, as criteria for evaluating the effectiveness of each model. It identifies the strengths and limitations of centralized and decentralized approaches and presents the hybrid model as a balanced alternative that integrates institutional coordination with local responsiveness. The proposed framework provides a systematic basis for analyzing Zakat governance systems and their potential contribution to poverty reduction and social welfare. It offers valuable insights for policymakers, researchers to strengthen Zakat institutions through effective, transparent, and accountable governance through Islamic social finance framework.