Analysis of the Effectiveness of Zakat Collection Institutions in Managing Islamic Social Funds

This study aims to analyze the effectiveness of zakat collection institutions in managing Islamic social funds, focusing on key aspects such as governance, operational efficiency, fund collection and distribution strategies, and overall impact on beneficiaries. Using a qualitative and quantitative mixed-method approach, the research draws on institutional case studies, interviews, surveys, and document analysis from selected zakat organizations. The findings reveal that institutions with strong governance frameworks, digital innovation, and transparent reporting practices demonstrate higher levels of public trust and fund collection performance. Additionally, institutions that implement productive zakat distribution models such as microenterprise support and educational assistance show greater socio-economic impact compared to those focused solely on consumptive aid. However, challenges remain in the form of limited regulatory coordination, uneven institutional capacity, and public skepticism due to inconsistent transparency. This study contributes to the academic literature on Islamic social finance, offers practical recommendations for institutional improvement, and highlights the role of zakat in promoting sustainable socio-economic development aligned with Islamic principles.