Crucial Dimension in Organization Management of Indonesian Islamic Almsgiving (Zakah) Institutions: Insights for Community Economic Empowerment

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Abstract

This research analyzed the crucial management dimensions or key elements oforganizations that have been managed as Islamic almsgiving institutions (zakahfunds) in Indonesia. Zakah funds are traditionally managed for a limited number ofbeneficiaries. Zakah funds are now collected and managed by professional Islamicor faith-based organizations and institutions at the national or regional level toachieve a wider range of beneficiaries. This article examines how two Islamicor faith-based organizations, herein named CV (commanditaire vennootschap)“X” and “Y” Foundation, manage small enterprise programs based on zakah toreach a wider range of beneficiaries. Using qualitative methods, the researchidentifies crucial dimensions in the management of organizational dynamics ofthese Islamic or faith-based organizations, i.e., organizational systems, humanresources, and organizational climate. Those elements are used to manageeconomic empowerment activities with faith as a supra structure or contextualunderlying factor. Field findings also demonstrated the usefulness of religiousvalues in managing sustainable community-empowerment practices in smallenterprise programs.
Original languageEnglish
Pages (from-to)157-172
JournalThe South East Asian Journal of Management (SEAM), FEB Unversitas Indonesia
Volume9
Issue number2
Publication statusPublished - 2015

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