TABLE OF CONTENT

Contents Number of pages

1. INTRODUCTION 1

2. ORGANIZATION INFORMATION 2

2.1 Introduction

2.2 Organization Background

2.2.1 History

2.2.2 Vision

2.2.3 Mission

2.2.4 Objective

2.2.5 Rational Establishment

2.2.6 Quality Policy

2.3 Organizational Structure/Chart

-Department/units

-Number of staff

2.4 Organization Product and Services

-Distribution Zakat

-Types of asnaf

-Procedures on Applying

-Statistics
3. ANALYSIS OF ISSUES AND CHALLENGES 12

-Analysis of the issues

-Steps taken to solve issues and problems

4. CONCLUSION 14

5. APPENDICES 15

-Photo

REFERENCES 16
1. INTRODUCTION

Zakat is not just any form of voluntary charity, alms giving, tax or tithe. Nor is it simply an expression of
kindness or generosity. Zakat is all of these combined and much more, for it also includes Allah-consciousness
as well as spiritual, moral and social objectives. The word Zakat is the infinite form of the verb zaka, meaning to
grow, to increase and to purify. When said about a person, it means to improve or to become better.
Consequently Zakat means, blessing, growth, cleanliness and betterment. In the Shari’ah, the word Zakat refers
to the determined share of wealth prescribed by Allah to be distributed among the deserving categories of those
entitled to receive it.

The history of Zakat is the same as that of perform prayers. The word Zakat is mentioned 30 times in the
Qur’an the evident has been proven Zakat also directive from The Almighty and was existed since the previous
Prophets. Zakat of Prophet Isma’il (AS): “Also mention in the Book (the story of) Isma’il: He was (strictly) true
to what he promised, and he was an apostle (and) a prophet. He used to enjoin on his people perform prayers
and Zakat, and he was most acceptable in the sight of his Lord.” [Surah Mariam 19:54-55].

As requested by our beloved lecturer Dr. Syahnaz Sulaiman to prepare a report about zakat (alms). Our
group had decided to make industry visit to Pusat Zakat Selangor on April 16, 2018. We are assisted and guided
by Ms. Syahrina Binti Abdullah about zakat more widely.

The objective of the report aims to:

1. Explain and understand the concept of zakat more clear from Islamic perspective.

2. Illustrate the position of zakat in the Shariah(Islam) and its relation to the other disciplines of Islamic
knowledge.

3. Discuss the types of zakat and their significances from Islamic perspective.

4. Describe the salient features of zakat and the Shariah principles in dealing with zakat issues.

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2. ORGANIZATION INFORMATION

2.1 INTRODUCTION OF ORGANIZATION

The Lembaga Selangor Zakat (MAIS) established 20 years ago, is synonymous with zakat management in
the State of Selangor.As a Zakat institution that holds trust, Lembaga Zakat Selangor (MAIS) continues to be
committed to managing and utilizing the potential of Zakat collection and ensuring the distribution of Zakat
implemented efficiently, effectively and parallel with Islamic lawsuits. Lembaga Zakat Selangor was supported
by more than 400 employees and supported by 25 branches throughout Selangor, Lembaga Zakat Selangor
(MAIS) continues to carry out trust as amil and amilin with integrity, honesty and transparency in carrying out
its responsibilities.

Within two decades of its establishment, Lembaga Zakat Selangor (MAIS) has elevated its excellence as a
Zakat institution which is well respected by constantly promoting da'wah movements to ensure more people
perform Islamic’sobligatory. Meanwhile, the distribution of Zakat is also enhanced to be comprehensive and
effective to eight asnafs set forth in the Quran through five major development programs asnaf namely the social
development program, education, economics, human and religious institution development. The Almighty had
said in Quran that: “In their wealth and properties is the right of the poor, the beggar and he who is in
deprivation.” (Surah Al-Dhareyat 51:19).

Zakat washes away sins and impurities as well as perform prayers. When a Muslim pays Zakat, Allah
increases his sustenance. Although at a human level it may seem that giving of wealth means reduction of
wealth, in reality it is not. At a metaphysical level, Allah blesses the giver of Zakat to an extent that is beyond
human perception. This is very well-defined by the following Hadith: “Charity does not diminish wealth.”
(Muslim).

Today, Lembaga Zakat Selangor (MAIS) stands as a visionary zakat institution and practices the best in
generating and promoting excellence not only for asnaf but also the ummah as a whole.In verse 32, Quran have
said in Surah Al-Ma’arij about Allah directs Muslim to keep trusts and promises, “And those who are to their
trusts and promises attentive”. Thus, Allah loves who is not broke the trust among them.

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2.2 ORGANIZATION BACKGROUND

2.2.1 History

The history of Lembaga Zakat Selangor (MAIS) was established 20 year ago, so common with
management zakat in Selangor. As zakat institution which holds trust, Lembaga Zakat Selangor (MAIS) be
committed on managing and utilize pontential in zakat collection, as well as ensure the distribution of zakat was
implement with efficient, and effective accordance with syarak compliance.

With the motto ‘Lead the Change’, Lembaga Zakat Selangor (MAIS) always try to give excellent
services to all customers that are the payer and giver of zakat. The Lembaga Zakat Selangor (MAIS) is assisted
by 400 employees, and with the supported from 25 branches Lembaga Zakat Selangor (MAIS) in the whole
Selangor. Lembaga Zakat Selangor (MAIS) keep running the responsibility as amil and amilin who have the
integrity, honestly, and transparent in running its responsibility.

In the within 2 decades its establishment, Lembaga Zakat Selangor (MAIS) make improvement
excellently as zakat institution which is respected by always intensify the movement in preaching for make sure
more people fulfilling the pillar of Islam. Then, the system distribution of zakat also be improved to be more
comprehensive and more effective by divided to eight asnaf (zakat recipients) which designated in Al-Quran
through five major development programs asnaf that is Social Development Program, Education, Economy,
Human, and Religious Institution Development.

Today, Lembaga Zakat Selangor (MAIS) stands for a visionary zakat institution and practices the
best in generating and promoting excellence not only asnaf but also the ummah as a whole. Many viable
entrepreneurs are born, asnaf children excel in education can continue their studies, families have a comfortable
shelters and even the burden of high medical costs can be alleviated.

Indeed, Lembaga Zakat Selangor (MAIS) will continue to hold and fulfil the best possible trust in
order for this pillar of Islam to be upheld and dignified.

2.2.2 Vision

The vision of Lembaga Zakat Selangor (MAIS) is to:

“Become the leader of zakat institutions that adopt standardized management standards globally”.

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 2.2.3 Mission

The mission of Lembaga Zakat Selangor (MAIS) to:

“Serving Muslims with integrity and professionalism in the collection and distribution of zakat”.

2.2.4 Objective

The objective establishment of Lembaga Zakat Selangor (MAIS) is to:

 Empower Zakat Management.

 Maximize the Collection of Zakah.
 Enhancing the Effectiveness of Zakat Distribution.

2.2.5 Rational Establishment

The rational establishment of Lembaga Zakat Selangor (MAIS) is to take on greater responsibilities as well as
enhance theimage of managing zakat collection and distribution that has reached over RM 100 million a year.

2.2.6 Quality Policy

The quality policy of the Lembaga Zakat Selangor (MAIS) is committed to providing comprehensive and
continuous quality services for the collection and distribution of zakat based on Islamic law to fulfil the needs
and satisfaction of customers.

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2.3 ORGANIZATIONAL STRUCTURE/CHART

The Selangor Zakat Board is an institution under His Royal Highness the Sultan of Selangor who is responsible
for the collection and distribution of Zakat Selangor.

Number of staff

In order to strengthen LZS services and management, human resource aspects are often emphasized. This is
especially important for LZS to provide the best service to its customers. In line with the addition of staff will be
made from time to time based on requirements. The LZS started with ten first-person employees in 1995 (then
known as PZS) and now has a total of 300 staff members. As LZS implements human-related services, the
human capital development program becomes the main agenda of LZS every year. To enhance the management
and operation of LZS, the LPA has established six Committees with a set portfolio and chaired by an ALPA.
The members of the committee consist of ALPA and experts from outside the LZS, the six committees are as
follows:

1. Jawatankuasa Operasi Kutipan Zakat.

2. Jawatankuasa Operasi Agihan Zakat.
3. Jawatankuasa Pencalonan dan Agihan.
4. Jawatankuasa Audit.
5. Jawatankuasa Kewangan.
6. Jawatankuasa Tender.

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Department / Units

The Board of Trustees

Chairman LZS

 Y.A.M Tan Sri Dato’ Seri Syed Anwar Ibni Almarhum Tuanku Syed Putra Jamalullail

Deputy Chairman of LZS Member Majlis Agama Islam Selangor

 Y.Bhg. Dato’ Dr. Aziuddin bin Ahmad

Chairman of Maxis Berhad

 Y.A.D Raja Tan Sri Dato’ Seri Arshad Al-Haj Raja Tun Uda Al-Haj Mufti Negeri Selangor

Mufti Negeri Selangor

 Sahibus Samahah Dato’ Setia Hj. Mohd. Tamyes bin Hj. Abd. Wahid

Secretary Of The Selangor Islamic Religious Council (MAIS)

 Y.Bhg Dato’ Bakhtiar Bin Husin

Board Member of CIMB Group Holdings Berhad.

 Y.Bhg Dato’ Haji Rosely@Mohamed Ross Bin Mohd Din

The Former Police Chief of Selangor, (MALAYSIA)

 Y.D.H. CP (B)Dato’ Pahlawan Mohd Shukri bin Dahlan

Profesor Emeritus, Fakulti Pengajian Alam Sekitar, Universiti Putra Malaysia Malaysia

 Y.Bhg. Prof. Emeritus Dr. Muhamad bin Awang

President Araken SdnBhd.

 Dr. Abdul Rahman bin Abdullah

Director of Human Capital Development, Petra Energy Berhad

 Y.Bhg. Pn. Hajjah Badariah binti Abd Jalil

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Top Management LZS

Officer in Charge

 En Abdul Basith bin Hamid

Chief Operating Officer – corporate and special projects

 Puan Hajjah Ariffa Binti Ariffin

Chief Financial Officer

 Puan Rapizah binti Muhammad Sharif

Head of Division Collection

 En Mohd Sabirin bin Mohd Sarbini

Head of Division Development Asnaf

 En Zaharuddin bin Salim

Head of Branch Management and Services Division

 Puan Roszy binti Non

Head of Communication Division & Stakeholders Relations

 Datin Setia Hajjah Norajun Ainun Binti Dato’ Mohd Hashim

Head of corporate Services Division

 En Affandi bin Nasir

Head of Human Resource Division

 Puan Norliza binti Ahmad

Head of Division of property management, security and administration

 En Naseri Bin Salleh

Head of Research Division and Centre Of Excellence

 Puan Hajjah Adibah binti Abd Wahab

Head of Internal Audit Division

 En Mohamad bin Khalid

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2.4 ADMINISTRATION OF ZAKAT IN SELANGOR

Distribution of Zakat

Zakat distribution in Selangor illustrates an increasing from 2016 to 2017 which reflects the growth of zakat
collection year by year. This may be attributed to the increasing number of zakat payers in Selangor and also the
various channels that facilitate the process of zakat payment.

The zakat collections from year 2017 are RM562.2 million. Increasing from year 2016 which are RM512.1
million. All this collections are from various type of zakat payer such as income zakat, agriculture zakat, gold,
silver and others.

Below are the collections of zakat and its type for year 2017.

The distribution of zakat to zakat recipients for year 2017 is RM460.5 million. The collections were distributed
into zakat recipients in Selangor.

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Types of asnaf that being helped by Lembaga Zakat Selangor are:

1) Asnaf Faqir and Miskin

- Monthly financial aid
- Education needs
- Construction of house
- Monthly food contribution
- Assistance for school fee
- Course and Training
- Education Scholarships
- Home rental assistance
- Business capital support
- Home repairmen
- Medical support
2) Asnaf Mualllaf
- Monthly financial aid
- Attendance allowance for basic religion class
- Home rental assistance
- Muallaf scholarship
- Marriage assistance
- Construction of house
- Course and Training
3) Asnaf Fi Sabi Lillah
- Aid to Islamic Association
- Build and repair religious institutions
- Scholarship for abroad studies
- Scholarship for Huffaz Quran
- Mosque repairment
- Scholarship for excellence student
4) Asnaf Gharimin
- Dialysis Treatment Payable
- Medical Debt
- Debt For Life Needs
- Debt of Association
5) Asnaf Ibnu Sabil
- Musafir help
- Go and back tickets
- Scholarship for abroad studies

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Procedures to Applying Zakat in Selangor

1. Fill the application form for zakat at the counter or download from Lembaga Zakat Sselangor website.
2. Get verification from Imam and send the form to Lembaga Zakat Selangor.
3. Officer from Lembaga Zakat Selangor will investigating whether the applicant was among the asnaf or
not.
4. If the applicant was eligible to receive zakat, then the officer will make a report to approve the
application.
5. The applicant receiving zakat on what he applied.

Statistic the Distribution of Zakat :

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3. ISSUES AND CHALLENGES

ISSUES AND CHALLENGES FROM ADMINISTRATION ASSISTANCE AND MANAGEMENT IN

LEMBAGA ZAKAT SELANGOR

1. Financial management

In ensuring the responsibility to manage the collection and distribution of zakat effectively implemented,
the challenge is how to ensure that its financial management system is the best in terms of budget
preparation, cash flow management, accounting and so on. For that purpose, the Finance Committee is
established by the LPA and they play its role in ensuring that monetary management monitoring can be
carried out in accordance with the established standards. The challenge in terms of financial management
is zakat collection only increased so high on two only month in Ramadhan and December each year, at the
same time LZS has a zakat distribution commitment that must be done every month such as poor / poor
asnaf financial / food aid. For example, the distribution of zakat in the state of Selangor from January to
May of 2010 exceeds the total amount of zakat collection for the same period of RM120 million over the
collection of RM95 million. Some strategies have been set up to address those challenges by LZS
management.

2. The bad view of society towards zakat institution Selangor.

in the view of society, it seems that there is a non-distributable zakat money at the end of the financial
year ending 31 December of each year. In fact, the increase in zakat collection was high in December as
Muslims pay zakat for income tax rebates before December 31 each year. For example, zakat collection in
Selangor in 2009 was RM283.7 million and zakat distribution was RM275.9 million, while zakat
collection in December was RM67.6 million. It shows that there is no amount of zakat payable amounting
to RM7.8 million in 2009, while in fact the zakat money is 'not yet distributed' following the collection of
zakat received on the last day of December. However, in 2010 the LZS has increased the projection of
zakat distribution budget against the zakat collection target of RM300 million.

3. Strengthening Information Technology Systems

The enhancement of information technology systems is a matter that must be implemented by any
organization that wants to achieve excellence. To get the best and up-to-date information technology
system, it is definitely costly. It is a challenge for LZS to cover such costs and investment needs to be done
to get the best information technology system. By investing in today, it will facilitate the management of
zakat collection and distribution in the state of Selangor for the long term. In addition to financial
investment, the challenge is to ensure the acquisition and development of the best and efficient information
technology system. As a result, LZS has established Information Technology Steering Committee which
involves experts and professionals in information technology to develop and monitor information
technology systems.

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 4. Ensuring Distribution of Zakat Was Performed in the Current Year

The next challenge is that the management of LZS should ensure that the key principles on the budgetary
principle are followed, that every current zakat collection must be completed for the same year. To ensure
that the zakat budget is implemented in LZS is based on a balanced budget. However, it is necessary to
consider the need for early round funding to accommodate the operation of the first quarter of the
following year. Following the collection of zakat which is consistently annually dominated in December
then zakat that has not been used is a common note of LZS. Thus, a committee was formed chaired by the
MAIS Secretary to allocate the zakat money to the projects that would be developed and beneficial to the
zakat asnaf.

ISSUES AND CHALLENGES FROM THE DISTRIBUTION OF ZAKAT

1. Self-esteem attitude that is always wanted by the institution of zakat and does not want to be self-
reliant and always expect assistance every year.
2. Difficulties in the determination of poor / poor / muallaf: although using guidelines, there is still doubt
in the receipt of information. For example, the applicant who passed the Kifayah Limit but was still in
a difficult situation and the muallaf who sought the help of the muallaf while the period was over.
3. Problems among the asnaf who want to start the business but no experience and need large capital;
some filtering processes need to be done to determine their qualifications, so they need to start from
the beginning by attending courses and just being given assistance.
4. There are also asnaf who have been given capital assistance but fail to continue their business and
seek help from other businesses.
5. There are recipients who are not appreciative or grateful for the assistance provided for example they
sell the business aid equipment provided, do not care for the home-provided cleanliness and so on.
6. There are asnaf who expect solely of financial aid or monthly food without trying to earn a living.
7. There is an asnaf that does not utilize the assistance given accordingly by using it to things that are not
beneficial.
8. Some parents who belong to this asnaf do not pay attention to their children who have been given
education assistance.
9.

STEP TO SOLVE ISSUES AND PROBLEMS

1. Creating zakat forum

A special zakat forum can be created and mobilized to further enhance the efforts of zakat. This forum can
be comprised of any parties who wish to directly contribute ideas and energy to help existing zakat
institutions through scientific discussion sessions, seminars, writing and so forth. Zakat institutions can

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 help sustain this forum with donations of funds or other resources so that more parties will be involved in
raising zakat profits in Malaysia. This forum can be one of the means to get feedback from the public, to
meet the authorities, to create communication networks and more. Effect establishing this forum has
existed and its establishment needs to be continued in order to more rapidly grow zakat institutions in the
country.

2. Strengthening Roles of JAWHAR

The Federal government has set up a special department to coordinate activities in Malaysia namely the
Wakaf, Zakat and Hajj Department (JAWHAR) since 2004 which serves to plan, coordinate, develop and
monitor the strengthening of zakat institutions in Malaysia. A lot of effort has been made but it can still be
improved from time to time. The government needs to give JAWHAR more allocation to enable JAWHAR
to play its role with the provision of advertising or documentary related to zakat in electronic media / print
and billboards as well as provide more scientific programs.

3. Consistent Census

The Department of Statistics conducts a population census to obtain detailed information on the population
of Malaysia. The zakat institution is very thirsty for this census information as a result of the census, zakat
institutions can know the income of the population. The income information of this population is very
important to identify the poor and poor and the high-income earners who are subject to paying zakat.

4. The role of IPTA and IPTS in Making Zakat Studies Continuously for Use by Zakat Institution.
Zakat institutions have limited resources to conduct comprehensive and reliable research. The public
institutes of higher learning in particular who receive various grants, have many experts in various fields
can discuss with zakat institutions to produce studies that can be utilized by the institution of zakat directly.
There are also many Masters and Doctor of philosophy levels that can be used to carry out research that
can help the industry. A planned move should be carried out to ensure that this proposal can be realized.
This activity will be a win-win activity among tertiary institutions with zakat institutions where the higher
education institutions are entrusted to conduct research, conduct research as targeted and for zakat
institutions they get inputs that are very useful for them to provide the best service to all people.

4. CONCLUSION

Zakat is a trust to the recipients and is a responsibility to the payer. The task of delivering trust to the rightful
and proper it should be given a very important emphasis. Many issues and challenges are faced by the Lembaga
Zakat Selangor in handling the collection and distribution of zakat in the state of Selangor. Zakat worship is a
dynamic worship that needs to be managed in same with the needs of the current ummah without leave the
principle of zakat worship. The institution of zakat and organization who has been appointed should take
responsibility in zakat distribution business effectively and continuous. This is to ensure that no asnaf are
marginalized and the resources of zakat which quoted can achieve the real goal of zakat philosophy.

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5. APPENDICES

( Our visiting to LZS for interview Puan Syaharina binti Abdullah on April 16, 2018 )

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REFERENCES :

1) http://www.zakatselangor.com.my/info-lzs/struktur-korporat-lzs/

2) http://www.zakatselangor.com.my/

3) https://www.academia.edu/

4) https://drive.google.com/drive/folders/0B-UHREbVh2DTWUQyU0VjaWdYSlk

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