National Zakat Index: Framework and Methodology BAZNAS WORKING PAPER SERIES | Center of Strategic Studies, BAZNAS

Abstract

Discussing the development of zakat, to date, there are no standard measuring tools that can be used to evaluate the performance of zakat. In fact, the existence of this measurement standard is very important in determining the successful achievement of zakat development. Furthermore, by knowing this, it can be used in measuring to what extent zakat contributes to the national economic development. Based on these issues, National Zakat Index (NZI) was designed and developed for the purpose to become a standard measurement that can be used by regulator, zakat institutions, and public in evaluating zakat development nationally. NZI was developed by using Mixed Method, which is a methodology that integrates quantitative and qualitative method. We used a qualitative approach in structuring and compiling NZI components, whereas a quantitative approach was used in forming the estimation model of calculations. The finding was structuring NZI into two dimensions; Micro Dimension and Macro Dimension. Each of the dimensions has its own indicators. While the indicators of micro dimension consist of institution and zakat impact, macro dimension consists of regulation, government budget, and database of official zakat institutions, number of muzakki and mustahik.

Keywords: zakat, zakat index, zakat development

JEL Classification: O150, R290, Z120, Z190