Integrating Zakat and Waqf Project: A Case Study of Free Hospital Development of the National Zakat Board (BAZNAS) Indonesia Puskas Working Paper Series (PWPS) 2017
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Abstract
The purpose of this paper is to investigate the integration of zakat fund and waqf land for the free hospital development to the needy. Shirazi (2014) suggests that the institutions of Zakat and Waqf need to be integrated into the poverty reduction strategy of the Islamic Development Bank (IDB) member countries; The proceeds of these institutions should be made as part of their pro-poor budgetary expenditures. Zakat plays an important role in providing a better life for the poor as well as awqaf as an endowment made by a Muslim. The development awqaf is a part of the social obligations which can contribute to improving the quality of life of the zakat’s recipients, so a joint program is needed of these elements to obtain the greatest utility. The enormous potential of zakat and waqf, these two instruments have yet to be fully utilized for helping the poor. Among the main obstacles in developing waqf land in Indonesia is the inadequate budget received by the government and the lack of involvement from the professional bodies results in the unawareness of potential land development. Taking into the financial requirement in developing waqf land, the need to involve zakat is important to ensure continuity of the developments. This paper describes the beneficiaries impact and quality services of integration zakat fund and waqf land in four BAZNAS free hospitals are analyzed, and there is a proof that zakat and waqf integration have already bring benefits for the poor and to act as a permanent social safety net. By this integration, the quality of life among asnaf can be further enhanced.
Keywords: Zakat, Awqaf Development, Awqaf Land, Integrating zakat.
JEL Classification: E6, H2, H3
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Center of Strategis Studies, BAZNAS
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