Are Zakat Institutions Trusted To Accept Charity?

Abstract

This research aims to identify the factors that influence trust in paying zakat through zakat management organization (OPZ) or zakat institution in Indonesia. The theory in conducting this research is based on agency theory and legitimacy theory. This research is a quantitative descriptive research using primary data in the form of questionnaires distributed online using the Structural Equation Model (SEM) analysis tool. The population in the research is the Muslim population in Indonesia, who are obliged to pay zakat. Samples were taken randomly using the Simple Random Sampling method for as many as 100 respondents in 40 cities spread across Indonesia. The results showed that Muzakki's Perception of Management and Transparency Practices had a significant positive effect on trust in paying zakat through zakat institutions. Meanwhile, Muzakki's Perception of Zakat Institutions and Muzakki's Background has no significant effect on trust in paying zakat through zakat institutions. These findings are expected to be a serious concern for stakeholders in educating the Muslim community about the importance of paying zakat through zakat institutions in order to reduce income inequality and achieve economic prosperity in Indonesia. The results showed that Muzakki's Perception of Management and Transparency Practices had a significant positive effect on trust in paying zakat through zakat institutions. Meanwhile, Muzakki's Perception of Zakat Institutions and Muzakki's Background has no significant effect on trust in paying zakat through zakat institutions. These findings are expected to be a serious concern for stakeholders in educating the Muslim community about the importance of paying zakat through zakat institutions in order to reduce income inequality and achieve economic prosperity in Indonesia. The results showed that Muzakki's Perception of Management and Transparency Practices had a significant positive effect on trust in paying zakat through zakat institutions. Meanwhile, Muzakki's Perception of Zakat Institutions and Muzakki's Background has no significant effect on trust in paying zakat through zakat institutions. These findings are expected to be a serious concern for stakeholders in educating the Muslim community about the importance of paying zakat through zakat institutions in order to reduce income inequality and achieve economic prosperity in Indonesia.