Zakat, Infak, Shadaqah and Awqaf (ZISA) are social fund taught by Islam for practiced
by Muslims. Zakat is the instruments of
Islamic social fund that is
obligatory, while infak, shadaqah and awqaf are Voluntary. Although ZISA are social fund, but the allocation has economic
dimensions that affect to the welfare of Muslims
Infak are all the expenditures
made by a muslim, either for good of spending, as well as for badness.
Therefore in the Qur'an, there are term infak fi Sabilillah (infak for
goodness) and infak fi sabilit toghut (infak for evil / badness).
Sahadaqa are all the expenditures for
goodness. Included within the scope of shadaqah is all that material and non
material.
Zakat are all the expenditure for the goodness
that has certain requirements and certain arrangements in practice (nishab,
haul, tariffs and recipient).
Zakât is a certain fixed
proportion of the wealth and of the each and every kind of the property liable
to Zakât of a Muslim to be paid yearly for the benefit of the poor in the
Muslim community. The payment of Zakât is obligatory as it is one of the five
pillars of Islam. Zakât is the major economic means for establishing social
justice and leading the Muslim society to prosperity and security.
Waqf are spending our money for
the good of which the principal value of the property sought to be permanent
and its benefits can be felt for social and economic interests of the people.
Waqf are prioritized done in a way that generates productive revenue or
profits, where income or profits will be used for good.
Most of the Muslims still
practice the use of Zakat, infak, shadaqah, and waqf are just purely
charitable. Generally the distribution of zakat, infak, shadaqah and waqf are
only used for consumptive purposes, social and worship. Still few Muslims who
are trying to utilize Islamic social fund (Zakat, infak, Alms and Endowments),
which has wider economic benefits.
Associated with the task of
improving the welfare of the people, then Now, it is time when the Zakat funds,
infak, shadaqah and Waqf can be utilized to assist economic development,
especially in helping small businesses. Islamic social fund should be developed
to increase revenue, business development and economic development through the
Islamic financial services industry.
Sources : Ahmad Juwaini, Zakat,
Infak, shadaqah & Waqf for Social Welfare, 2011
Potency and Developement Zakat,
Infak, Shadaqah, Waqf
Zakat can play a significant role
in Muslim socio-economic development if it is used properly. Entering the year
2012 was the payment of zakah is increasing worldwide. It is estimated that
more than 80% of the Muslims who were categorized muzakki (obligatory Zakat)
has regular paid zakat. The Zakat Payers are paid through zakat organizations,
as well as directly paid to beneficiaries (mustahik) in their respective
countries.
Based on the calculation of
various methodes, particularly with reference to the pattern of calculations
performed by Habib Ahmed from IRTI - Islamic Development Bank (IDB), then we
can calculate that the year 2011 using estimated proportion of GDP every Muslim
country, the estimated potential of zakah in the world a year of not less than
USD 600 Billion.
By considering the data on the
number of poor people of the world in the year 2010 reaching 850 million
people, then the potential zakat world will be able to overcome poverty until 23.5%,
with the assumption that every poor person will be able alleviated with greater
empowerment of zakat funds of USD 3000 per person.
Waqf is one of social service through the issuance of the
property is very important in Islam. Waqf is a religious treasure that is
realized in the form of fixed assets or the value of the benefit in the long
term. In the glories of Islamic history, waqf have become one of the cantilever
dynamics of Muslim life. Waqf in the past generally functioned to support the
provision of social facilities and public facilities for the community.
Various social facilities and public facilities has filled many of the waqf
property. Buildings and places such as mosques, Islamic schools, boarding
schools, nursing orphans, graves, fields, and roads are examples of community
needs that come from waqf. To meet the availability of these waqf, the
community generally give waqf in the form of land, buildings, or money used to
purchase / provide land, buildings or equipment for the public benefit. All of
waqf management scheme described above is the pattern of conventional
management of waqf.
Namely the social-oriented management of waqf, because the use of waqf for
public purposes or public interests directly. In the conventional management
model waqf this happens the cost to the operational management needs of fund
everyday to be subsidized from other funds (such as infaq and alms). In the
model of social-conventional management of waqf is not the case process and
economic benefits of asset waqf. The second transformation in the management of
waqf is when there is development of cash waqf (Cash Waqf popularized by MA
Mannan with his Social Investmen bank is well known in Bangladesh). In
Indonesia Cash Waqf then used the term money waqf, it is the collection of
charitable efforts in the form of money which was subsequently stored in the
Islamic financial institutions (such as Sharia banks, Baitul Maal wa Tamwil,
sharia micro finance) which is generally stored in form of deposits.
The investment income from the deposit is then used to finance social
activities, such as helping poor people, subsidies to operational mosque or
islamic boarding school. In this development, the waqf of money has also been
utilizing a broader monetary sector for investment. Besides the bank, investing
in sharia mutual funds, Islamic bonds, Islamic stock markets, and other Islamic
monetary sectors. Of course all the basic requirements for charitable
transactions, namely that the principal waqf should not be lost, always used as
reference in charitable investments in the monetary sector.
In the next transformation, the management of waqf also entered the productive
phase. In the model of productive waqf, asset waqf are for the provision of
commercial assets that produce revenue or profits. To further revenue or profit
is used to finance activities providing education in a school, health services
in hospitals or medical clinics, providing food assistance to refugees,
orphans, or to help the poor.
As for assets that were pledged as waqf investments include office, kiosks,
markets, parking lots, factories, plantations, trees and perennials that
produce many more. In the past, probably a lot of investment in productive waqf
are not yet practiced. Now, in addition to this useful productive asset waqf
generate revenues or profits for social purposes, as well as create new jobs
for the community. Waqf have multiple benefits of productive, that is flowing
to waqf donors reward. shaping employment through business activities and
generate income in order to subsidize social activities.
All of this transformation, has been and is being undertaken
by many Waqf Organizationa (Nadzir). They are trying to implement as one of the
economic potential of communities that have religious and social dimensions as
well.
In addition to Zakat and Waqf, of
course infak and Alms also has great potential. Especially if it is owned by a
wealthy Muslim who are concerned to help fellow human beings. When this has
been the everyday culture practiced by the Muslims, then the impact will also
be a huge help in overcoming the problem of poverty.
Position of Zakat, Infak, Shadaqahh and Waqf in Islamic Finance System
In the context of the entire
Islamic financial system, Zakat, infak, Alms and Endowments have the following
roles:
1. Provide
the basic needs of the community
That is to meet
the needs of food, clothing, shelter, health and education.
2. Help
to provide the public service
That is to meet
the provision of mosques, tombs, schools, clinics, roads, bridges.
3. Supporting economic development through
business support in social and semi-commercial level.
That is to provide
venture capital, business assistance and strengthening the business.
The main focus of the utilization
of Zakat, infak, shadaqah and waqf are intended to overcome poverty and build
self-reliance of the poor so that they can live in dignity.
Small Enterprise
Transformation
Enterprise Level &
Sources of Fund
Integrating Zakat, Infak, Shadaqah and Waqf in Islamic Financial
Services
To be able to integrate the Zakat, infak, shadaqah and the
Waqf in Islamic financial services industry, there are several ways we can do,
namely :
1. Making business financing with funds from Zakat, Infak,
Shadaqah, and waqf, as a basis for the creation of a strong commercial scale
entrepreneurs in develop readiness to trade with the Islamic banking
• Provide learning and practice
of Islamic financial transactions to beneficiaries
• Establish a strong mental
entrepreneur
• Increase the level of
employers from social level to the level of commercial
2. Establish and develop Islamic Microfinance Institutions
(such as Social Trust Fund, Cooperative Sharia, Baitul Mal wa Tamwil)
• Establish partnership and
business networking
• The institutionalization of
Islamic microfinance institutions
• Stabililisasi business and
finance Islamic Microfinance Institutions
• Building the parent
institution for Islamic Microfinance Institutions
3. Fund of Zakat, Infak, Shadaqah and waqf placed in the Islamic financial sector to
strengthen the liquidity of the Islamic financial institutions
• Save Zakat, Infak, Shadaqah,
and waqf in Islamic banking
• Investing waqf Fund
to Islamic financial services sector
4. Do the channeling of financing among the Islamic banking,
business community and the Islamic Microfinance Institution
• Islamic banks to channel
financing to Islamic Micro Finance
• Islamic banks to channel
funding to community organizations assisted OPZ
5. The expansion of the role of Islamic financial
institutions as manager Islamic social funds organization
• Islamic financial institutions
as managing partner of zakat organizations.
• Islamic financial institutions
as cash waqf managers through the role as nadzir or partner of nadzir.
Steps that need to be done to integrate Zakat, Infak, Shadaqah
and Waqf in Islamic financial services industry:
1.
Socialization to common perception about ZISWAF
integration in the Islamic financial services industry. Socialization is
necessary to reduce the persistence of those who do not understand the
importance of integration of Zakat, infak, Shadaqah and Waqf in the Islamic
finance industry.
2.
Active involvement of all components of the
social fund managers in various organizations of Islamic economics, that enable
various stakeholders to ensure rapid information transfer occurs resulting in
the similarity of views, similarity and equality action plan.
3.
Formulation and implementation of Islamic
finance development blueprint that incorporates aspects of Islamic social fund as
part of efforts to develop Islamic financial institutions in a planned and
purposeful.
4.
Formulation and implementation of integration Zakat,
Infak, shadaqah and Waqf policy in the Islamic finance industry involving all
components interested in the development of Islamic financial institutions such
as government, banking, Islamic microfinance institutions, the social fund
managers Islam and Islamic finance experts.
5.
Realized the need for a pilot project for the
realization of integration Zakat, Infak, Shadaqah and Waqf in the Islamic
finance industry that benefits can be felt by the various parties as a whole,
giving rise to the trust and support more widely.
*) Ahmad Juwaini is Executive Director of Dompet Dhuafa Foundation – The
largest Zakat and Waqf Organization in Indonesia.
