Model of Optimal Zakat Allocation By Using Data Envelopment Analysis Approach

Abstract

An optimization model of allocation of zakat fund and recipients is developed based on the Data Envelopment Analysis - Resource Allocation Model (DEA-RAM). The quantitative method plays an important role in optimal allocation of zakat delivery programs performed by some zakat institutions; that is by reallocation of initial setting of the zakat fund and beneficiaries numbers. It raises the needs of improvements in their recent strategies on the programs by the institutions. Zakat institutions, even the government as regulator, should have a clear focus on the poverty-empowerment-based programs in providing needed capitals for poverty empowerment. They are expected to create certain conditions in order to prevent excessive of fund allocation for the charity-based delivery programs.