Issues and Challenges in Zakat Management in Malaysian Public Higher Educational Institution

Zakat management in Malaysia has undergone a transformation process beginning from colonial rule until now. One of the reformations in zakat governance is allowing the higher educational institutions to manage zakat collection and distribution to its community by themselves. This initiative implementation which involves the relationship between higher educational institutions and the State Islamic Religious Council has sparked a positive impact in alleviating financial burdens and improving academic achievement and students’ motivation. Therefore, this study aims to recognize the problems occurring in zakat governance implementation by zakat institutions at Universiti Sains Islam Malaysia, Universiti Teknikal Malaysia Melaka, Universiti Tun Hussein Onn Malaysia and Universiti Teknologi Malaysia. This study employed a qualitative approach and data were collected through interview and documentation methods. The interview was performed face-to-face and online involving the officers involved in the management of zakat institution. The study found that public higher educational institutions (IPTA) in the Southern Zone have performed zakat collection and distribution in respective institutions based on an agreement sealed with the State Islamic Religious Council. This study also recognized five challenges faced in zakat management implementation in IPTA which are human resources, distribution fund, information technology, attitude and information authenticity. Thus, this study is hoped to be a reference for university zakat institutions in upgrading existing zakat management and simultaneously improving the community’s confidence towards zakat’s role in alleviating students’ burden.