THE FACTORS THAT INFLUENCE PERFORMANCE OF ZAKAT MANAGEMENT AT LEMBAGA ZAKAT NEGERI KEDAH DARUL AMAN (LZNK)

Abstract

Zakat can be defined as a way to purify wealth and soul, which cleanses the heart from impurities of selfishness, greed, hatred, and ego-centricity. It is also part of an integral Islamic economic system with the purpose of the economic well-being of the Muslim community. The efficiency of zakat performance cannot be seen only regarding the level of trust between the payer and zakat institutions and its main purpose of reducing poverty in society. This paper is aims to investigate the factors that influence the zakat performance among the zakat staff Lembaga Zakat Negeri Kedah Darul Aman (LZNK). Primary data was collected through self-administrative instrument with some previous research studies. This paper employs the multiple regression approach and the sample used in this study consists of 30 respondents the zakat staff from LZNK. The data are collected by means of a structured questionnaire. Based on a multiple regression test, results show that there are two factors significantly influencing the performance of zakat management system in Kedah, namely the operating systems and managerial transparency. The findings further show that the operating system practices is one of a solution that is carried out on the services to improve the efficiency of the zakat management process. While the managerial transparency of LZNK is a good innovation toward the better performance of zakat management in order to gain public trust.