Determinants of Efficiency of Zakat Institutions in Indonesia: Two-Stage Data Envelopment Analysis Approach

This study aims to analyze the level of efficiency and determine the factors that affect the efficiency of the National Zakat Management Organization (OPZ). This research is descriptive quantitative research. Samples in this study are six National Zakat Management Organizations with research period from 2012-2016. The analysis technique used is two-stage data envelopment analysis. First stage, using DEA to measure OPZ efficiency level with production approach and assumption of output-oriented CRS and VRS. The input variables used are amil salary, operational costs, and socialization costs, the output variables used are collected funds and funds disbursed. Second stage, using tobit regression model to see the factors that affect OPZ efficiency. Based on the results of DEA, during the period of 2012-2016 OPZ efficiency experienced a positive trend. In general there had been an increase in OPZ performance efficiency from 2012 to 2016. BNUIS BNI became the most efficient OPZ compared to other OPZ. Based on the results of Tobit regression, the total of human resources has a significant negative effect on the level of efficiency, transparency and OPZ type significantly positive, while the zakat payment system and ACR ratio do not affect the efficiency level of OPZ.