Social & Financial Inclusion Activities And It’s Impact On Improving The Welfare Of Society

BAZNAS (National Zakat Agency) as one of the national zakat management institutions in Indonesia, created the Zakat Community Development (ZCD) program, and began to be implemented since 2010. The objective of ZCD program is to improve the economic, social and cultural conditions of the community, through empowering communities in the social, economic and spiritual fields, complete with the provision of access to these needs, by directing communities to have the capability to live independently this is known as an inclusion activity, on the social, economic and financial sector. The object of the study was 'beneficiaries of the ZCD program' in seven (7) poor regions. This study aims to determine the extent to which 'success' of the ZCD program implementation, and its impact on community welfare, ultimately leads to poverty alleviation. Using the method of path analysis with mediation, as well as secondary data related to several variables of 'community welfare' (education, health, community through democracy development of MSEs, unemployment and income), the study concludes the positive and significant impacts of the implementation of this program on health, the development of MSEs and GDRP, which also proves significant as mediation towards poverty reduction.