From charity to empowerment: a systematic review of zakat distribution transformation

Zakat plays an important role in poverty alleviation and socio-economic development, yet its effectiveness increasingly depends on how distribution mechanisms are structured and evaluated. This study conducts a systematic literature review to synthesise recent evidence on zakat distribution transformation and to identify institutional patterns, implementation gaps, and future research priorities. Guided by the Antecedents–Decisions–Outcomes (ADO) framework and PRISMA guidelines, 35 peer-reviewed articles published between 2020 and 2025 were selected from Scopus and Web of Science. The findings show that persistent poverty, efficiency and governance pressures, and crisis-related shocks mainly drive current zakat distribution practices. Institutional responses commonly combine consumptive assistance with productive distribution and innovation, including support for entrepreneurship, educational assistance, and digital delivery systems. Evidence from the reviewed studies suggests potential improvements in welfare and income outcomes. However, their effectiveness varies considerably due to weak outcome monitoring, limited beneficiary tracking, and uneven institutional capacity. The literature highlights strengths in the growing emphasis on empowerment, digitalisation, and institutional coordination. Persistent weaknesses include reliance on consumptive aid, weak monitoring systems, and limited behavioural interventions. Opportunities arise from outcome-based targeting and integration with employment and training systems, while economic shocks and dependency-related behaviours remain key challenges. By conceptualising zakat as a form of developmental social protection rather than purely charitable redistribution, this study integrates empowerment and behavioural policy perspectives, drawing on Paternalism Theory and Maqasid al-Shariah to explain how institutional design shapes poverty outcomes. From a practical perspective, the findings suggest that zakat authorities should rebalance allocations toward productive, outcome-based interventions while addressing immediate consumption needs. This requires systematic monitoring of asnaf progress, differentiation of assistance based on beneficiary readiness, strengthened institutional capacity, and the piloting of Conditional Cash Transfer–based zakat mechanisms linked to education, health, or employment outcomes to enhance accountability, human capital development, and sustainable poverty exit.