Proceedings of the 4th International Conference on Islamic Economics, Business, Philanthropy, and PhD Colloqium (ICIEBP 2022)

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Islamic Financial Institutions’ Preferences for Paying Zakat Through Zakat Institutions

Authors
Andriani Andriani1, *, Magfirah Magfirah1, Mairijani Mairijani1, Manik Mutiara Sadewa1, Basyirah Ainun1
1Politeknik Negeri Banjarmasin, Banjarmasin, Indonesia
*Corresponding author. Email: andriani@akuntansipoliban.ac.id
Corresponding Author
Andriani Andriani
Available Online 19 June 2023.
DOI
10.2991/978-94-6463-176-0_5How to use a DOI?
Keywords
Islamic Financial Institution (IFI); preferences; zakat
Abstract

Islamic Financial Institutions (IFIs) are companies that applying syariah rules on their activities. So, the likelihood of IFIs to pay zakat is high. Unfortunately, the realization of IFIs’ zakat payment is below its potential amount. This research aims to identify the preferences of IFIs for paying zakat through zakat institutions. This study used a quantitative approach that applied the Likert scale to the questionnaire. Six variables and 20 indicators were created to identify the IFIs’ preferences for paying zakat through zakat institutions. The findings indicated that IFIs preferred electronic mail as zakat institutions’ promotional media. In terms of payment channels, using a virtual account was preferable. However, IFIs preferred face-to-face consultation to a virtual one. Surprisingly, IFIs did not consider zakat deduction as the highest benefit of paying zakat. This study convinced that government zakat institution was preferable to distribute IFIs’ zakat funds. Lastly, IFIs expected zakat institutions to publish an audited financial report based on national accounting standards. This study suggests that zakat institutions implement digital technology in their fund collection strategy, yet offer a conventional method for consultation services. Generating audited financial reports based on national accounting standards is crucial for zakat institutions.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th International Conference on Islamic Economics, Business, Philanthropy, and PhD Colloqium (ICIEBP 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
19 June 2023
ISBN
978-94-6463-176-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-176-0_5How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Andriani Andriani
AU  - Magfirah Magfirah
AU  - Mairijani Mairijani
AU  - Manik Mutiara Sadewa
AU  - Basyirah Ainun
PY  - 2023
DA  - 2023/06/19
TI  - Islamic Financial Institutions’ Preferences for Paying Zakat Through Zakat Institutions
BT  - Proceedings of the 4th International Conference on Islamic Economics, Business, Philanthropy, and PhD Colloqium (ICIEBP 2022)
PB  - Atlantis Press
SP  - 54
EP  - 72
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-176-0_5
DO  - 10.2991/978-94-6463-176-0_5
ID  - Andriani2023
ER  -