Muslim Philanthropy for Public Interest: Lessons from Zakat Management in MMCs

Abstract

In the Islamic concept of economic relationship, a fundamental belief is that ‘wealth’ is a “bounty” (“gift”) from Allah and must be shared for public interest (al masalaha al mursalah). The instrument for sharing and “increase and purification” of wealth is zakat al-mal. Though called obligatory, zakat al-mal calculation and payment has been responsibility of the owner of wealth, not the ‘collector’. In the recent past some Muslim majority countries (MMCs) have undertaken steps to improve zakat collection for the highest possible public interest benefits. As such, zakat al-mal has been managed variedly in different countries. The question is what have the Muslim majority countries (MMCs) done in refining zakat management to increase its ‘public interest’ benefit? This paper is a study of zakat al-mal management, only collection, for public interest in (26) Muslim majority countries (MMCs) in Asia. The main analyses is divided into six short parts dealing with Zakat Payment and Collection: Principles and Process; Zakat Management Reform: Collection (Mandatory and Formal); Zakat Collection: Method and Expense; Zakat Payment and the Tax System; Zakat and Ushr: On Agriculture Produce; Informal Zakat Management: Advantages and Disadvantages. It highlights features, issues, and replicable lessons of the zakat al-mal management systems in the MMCs in Asia reformed to achieve higher public interest. MMCs in Asia with professional zakat collection system have followed different approaches of zakat collection creating better opportunity for maximizing public interest benefit of Muslim philanthropy. Nonetheless, many MMC governments have been reluctant in reforming philanthropy management. The essay argues that there needs to be a system of communication, to create public awareness highlighting the public interest benefits of an improved zakat collection system. In the internet era many Muslim orators are spreading imaginary or irrational ‘judgments’ on economic and social matters in many countries, the governments need to use the same platform with the help of accredited Islamic scholars to improve zakat management for public interest (al masalaha al mursalah). The essay is based on a thorough survey of the constitutions, laws, government regulations, academic publications, field research and consultations by the author in a dozen countries, and the author’s personal communications about and observation of philanthropic activities in the 26 MMCs in Asia.