Problems in Implementing Regulations Concerning Zakat Fund Management by Zakat Collection Institutions (Case Study of Baitul Maal Hidayatullah Kudus)

Abstract

Abstract. Zakat plays a crucial role in reducing social and economic disparities as a means of distributing economic prosperity. Zakat paid by the wealthy is distributed to those who deserve it, namely the destitute, the poor, and others who fall within the eight categories of asnaf (socially responsible). Zakat improves the standard of living of the less fortunate, creates balance in society, purifies bad traits, fosters social responsibility, and provides peace of mind for both zakat payers and those who mustahiq (payers of zakat). Furthermore, the Indonesian Ulema Council (MUI) fatwas are an important source of sharia guidance regarding zakat management. These fatwas provide guidance on the types of zakat, the requirements for those eligible to receive it, and how to distribute it in accordance with Islamic principles. With government regulations and MUI fatwas, it is hoped that zakat fund management in Indonesia will run smoothly, provide the best benefits to the community, and support broader economic and social goals. However, not all LAZs manage zakat funds according to regulations. One important step to increase public trust in the management of zakat funds is to evaluate the legal compliance of the Zakat Collection Institutions (LAZ). By conducting systematic and transparent evaluations, the public can clearly see how zakat funds are managed and distributed. This not only provides muzakki (zakat payers) with confidence that their funds are being used in a manner that complies with sharia law, but also demonstrates that LAZ is committed to carrying out its duties professionally and accountably. High public trust will encourage more individuals and companies to pay zakat through LAZ, increasing the potential for funds to be channeled to assist zakat recipients.