Analysis of the Effectiveness of Zakat Distribution at the Amil Zakat Institution Initiative Zakat Indonesia (LAZ IZI)

Law Number 23 the Year 2011 regarding Zakat Management mandates that the purpose of Zakat management is to increase the benefits of Zakat in order to realize social welfare and poverty alleviation. One of the Amil Zakat Institutions (LAZ), which is active and accomplished in realizing Zakat management's objectives, is LAZ Initiative Zakat Indonesia (LAZ IZI). This study aims to measure the effectiveness of distributing Zakat, Infaq/Alms, and Other Religious Social Funds (ZIS and DSKL) at LAZ IZI. This research uses quantitative methods with a descriptive approach. Measurement of effectiveness is done using the Allocation to Collection Ratio (ACR) formula based on Zakat Core Principles (ZCP). The object used in this study is the LAZ IZI financial statements for the period 2016 to 2019. Based on the ZCP, the level of distribution effectiveness during the four years of operation is 92% or included in the High Effective category, where Allocation to Collection Ratio (ACR) ≥ 90 percent. It means that ZIS and DSKL funds are distributed to mustahiq in a high-effective manner. The results of this study suggest that LAZ IZI can maintain the level of effectiveness of Zakat distribution with an ACR ratio above 90% so that it remains in the High-Effective category.