Enhancing Accountability and Transparency of Zakat Management Organization

Abstract

As a country with a Muslim population majority, Indonesia has a large zakat collection potential. However, data shows that zakat collection by the Zakat Management Organization (ZMO) is only about 4.3% of the estimated potential. Many studies have analyzed what can improve people's behavior in paying Zakat through ZMO. One of these factors is accountability and transparency. Based on this, a real effort is needed by ZMO to increase the accountability and transparency of its organization. This paper was prepared as a preliminary draft in formulating the factors that ZMOs can consider to improve accountability and transparency. The approach taken was the study of literature from scientific sources that can be accounted for. The results of this literature review further emphasize that many factors need to be considered to improve institutional accountability and transparency, including the implementation of the right PSAK (PSAK 109 on Zakat, Infaq, and Alms), the existence of an Internal Control System, the use of accounting system applications or software, and the commitment to Organization. However, because there are differences in the object of research with the previous literature, it is necessary to do a field test again to prove the effectiveness of the variable.