Does Covid-19 Pandemic Boost the Financial Performance of Zakat Management Organization in Indonesia?

The strategic role of Islamic philanthropic institutions during the Covid-19 outbreak inspired this paper.This study records the financial performance of Zakat Management Organizations (OPZ) and statistically tests if there are significant differences in the financial performance of OPZ before and during the Covid-19 pandemic using fifteen audited financial statements from national scale Zakat Management Organizations in Indonesia in 2019 and 2020.The 2021 Baznas Study Center's financial factor health ratios were used to assess OPZ's financial performance.The Paired Sample T-Test and the Wilcoxon Signed Rank Test were performed to determine the significant differences in OPZ's financial performance before and during the Covid-19 outbreak.Using the four dimensions of financial performance (activity, operations, liquidity, and growth), the Wilcoxon Signed Ranks Test results show significant differences in the net allocation to collection ratio and Amil rights ratio in Indonesian OPZs before and during the Covid-19 pandemic but not in the ZIS Turnover Ratio, current ratio, quick ratio, and Growth of Operational Expense Ratio.The Paired Sample Test results demonstrate significant differences in the Collection Expense Ratio and Operational Expense Ratio before and after the Covid-19 pandemic but not in the Average of Days ZIS Outstanding Ratio, ZIS Growth Ratio, and Allocation Growth Ratio.The response of Zakat Management Organizations to the Covid-19 epidemic is expanded in this paper.This study adds to the body of knowledge on financial performance measurement for Zakat Management Organizations and has implications for both zakat practitioners and policymakers.