The Zakat Conditional Cash Transfer Model

Abstract

Purpose

Guided by the integration of Maqasid al-Shariah and the Theory of Change (ToC), this study developed, validated, and empirically tested a CCT model for zakat distribution.

Design/Methodology/Approach

The instrument, consisting of 66 items across six constructs, was validated by 16 experts and subsequently empirically tested with 447 respondents using partial least squares structural equation modeling.

Findings

Content validity was strong, with a Content Validity Index (CVI) of 0.98 and Kappa coefficients ranging from 0.87 to 1.00. The measurement model assessment confirmed excellent reliability and validity, with all factor loadings and Cronbach’s alpha values exceeding 0.6, Average Variance Extracted (AVE) above 0.5, and Composite Reliability (CR) above 0.7. The structural model shows that health and employment conditionalities have a positive and significant relationship with poverty reduction and human capital development, while religious and education conditionalities are significantly related to specific human capital impacts.

Research limitations/implications

This study develops a comprehensive and empirically validated framework for conditional zakat distribution, contributing new theoretical insights by integrating behavioral and religious conditionalities into faith-based social protection models.

Practical implications

The framework highlights that structured conditionalities enhance accountability, guide recipient behavior, and boost zakat program effectiveness, offering policymakers a tool for clearer guidelines, stronger monitoring, and targeted interventions.

Originality/value

This study is the first to develop religious conditionality and adapt the Conditional Cash Transfer (CCT) model within zakat distribution.