ZAKATH AND WAKAF LAW

MANAGEMENT AND ADMINISTRATION OF ZAKAH IN

INDONESIA

SUBMITED TO: Dr. Muchammad Ichsan

PREPARED BY
Mohammad Hari Adipurna (20140610049)

Nur Alfin (20140610461)

Yudha Kusuma Wardhani (20140610362)

Rizki Habibullah (20140610127)

M. Syarkowi (20140610264)

INTERNATIONAL PROGRAM FOR LAW AND SHARIA

FACULTY OF LAW

UNIVERSITAS MUHAMMADIYAH YOGYAKARTA

2015
The definition of zakat management in Indonesia based uu no 23 of 2011 chapter 1
verse 1 to 12

Zakat management is planning, implementation, and coordination in the collection,

distribution, and utilization of zakat

Zakat is a treasure that must be issued by a Muslim or a business entity to be given to

those who deserve it in accordance with Islamic Shari'a

Infak is a treasure that is issued by a person or entity outside usahan zakat for the public
good.

Alms is a treasure or nonharta issued by a person or entity outside the zakat for the
public good.

Muzaki is a Muslim or a business entity is obliged to pay zakat.

Mustahi k is the person entitled to receive zakat

Badan Amil Zakat Nasional hereinafter referred BAZNAS is an institution which

manages the national charity.

Amil Zakat hereinafter called LAZ was incepted people who have the task to assist the
collection, distribution and utilization of zakat.

Unit Gatherer Zakat hereinafter called UPZ is a unit of an organization formed by

BAZNAS to help collect zakat. Each person is an individual or legal entity.

Amil certain rights is part of a charity that can be used for operational expenses in zakat
management in accordance with Islamic law.

Minister is the minister who held government affairs in the field of agam
Understanding the development concept of Zakat in Indonesia

As a country that has the largest Muslim population in the world, the issue of Zakat
becomes inseparable from the social life of the people of Indonesia. Historical
development of zakat in Indonesia have a long road to this day. Since Islam arrived in
Indonesia, automatically teachings zakatpun accumulate with community life.

Before the 1990s, the world perzakatan in Indonesia has several distinctive features,
among others:

1. In general, given directly by muzakki to mustahiq without going through zakat.

Such a situation is caused partly because it has not yet arisen zakat collector institutions,
except in certain areas, for example BAZIZ (Badan Amil Zakat and Sadaqah Infaq)
Establishments. In areas that are not generally muzakki BAZIZ directly give it to
mustahiq. An understanding of zakatpun still simple, the pure worship of limited
liability to be incurred without have to connect with solving various problems such as
poverty.

2. If the matter through amil zakat confined to tithe

Things like this seem eg when entering the month of Ramadan, or just before Eid
mosques, prayer rooms, formed an ad hoc basis to award the amil zakat tithes issued by
communities around mosques or prayer rooms. Even that they are members of the
public who believe more afdhal if zakat fitrah submit directly to muzakki without going
through zakat.

3. Zakat is given in general only consumptive for temporary needs

At that time in charge of receiving and dividing amil zakat is not yet manage, so it is not
needed professionalism demands. Amil then just be a sideline profession. Such a
situation is supported by the society's perspective when it is generally consumptive and
can also be an indicator of the lack of public confidence in the â € ~amil zakat.

4. Hidden object of charity is limited.

Object charity when it was limited to the treasures explicitly stated in detail in Al-Quran
and the Hadith of the Prophet, namely gold, silver, agriculture (limited to plants that
produce the staple food), livestock (limited to beef, goat / sheep) , trade (limited to
commodities in-kind), and rikaz (finding treasure). This is due to the weakness of the
socialization of the charity, both with regard to wisdom, urgency and purpose of zakat,
zakat implementation procedure, object property zakat, or charity linked with increased
economic activity and increased prosperity are still very rare.

According to Didi Hafiduddin, the state of the world perzakatan in the homeland after
the 1990's saw a significant change, ie after the publication of the book Fiqh al-Zakat
written by Yusuf Al-Qaradawi. The book contains a comprehensive explanation of
zakat was written in 1389 H / 1969 AD, published by Muassasah Ar-Risalah, Beirut and
translated into Indonesian by Salman Harun, Hasanuddin and Didier Hafiduddin, first
published in 1988, by PT. Reader Litera BAZIZ Antar Nusa cooperation with Jakarta.

The most prominent in the book is about the object property zakat which includes all
assets and revenue / income possessed by every Muslim who covers all areas of work
that kosher if it has reached nishab, then it must be issued zakat. Including income
obtained through certain skills individually or jointly, or often called zakat profession
(mihnah). For example, doctors, lawyers, architects, lecturers / teachers, tailors,
employees and others. Including the object zakat company run by a Muslim or together.

Another thing that stands out is put forward in the book Fiqh of Zakat is that zakat
should be managed by a collector (institute) is a professional, trustworthy, responsible,
have sufficient knowledge of the charity, have sufficient time to manage (eg for
dissemination, data collection muzakki and mustahiq, and distribution of appropriate
targets and transparent reporting.
Background Issued Zakat Law

Background to the Regulations on Management of Zakat and Formation Badan Amil

Zakat(BAZ) is as follows: 

1. The State guarantees the freedom of each citizen to worship according to their
respective religions. 

2. encashment Zakat is an obligation of Muslims and is a source of funds for public

welfare. 

3. Zakat is a religious institution to realize social justice. 

4. Efforts zakat management system needs to be improved in order to successfully
function effectively and efficiently, it is necessary for Zakat Management Act.

Law number 14 of 2014 chapters 2-4

CHAPTER II POSITION, DUTY, AND FUNCTIONS BAZNAS

Section 2

(1) The government will establish BAZNAS to carry out the management of zakat.

(2) BAZNAS referred to in paragraph (1) located in the capital city of the country.

(3) BAZNAS referred to in paragraph (1) is the government agency that is independent
nonstructural and responsible to the President through the Minister.

Article 3

(1) BAZNAS as referred to in Article 2 is an institution authorized to perform tasks

Management of Zakat nationwide.

(2) In carrying out the tasks referred to in paragraph (1), BAZNAS the following
functions: a. planning the collection, distribution, and utilization of
zakat; b.implementation of the collection, distribution, and utilization of
zakat; c. control the collection, distribution, and utilization of zakat; and D. reporting
and accountability of Zakat Management.

Article 4

(1) In carrying out its duties and functions BAZNAS develop guidelines for Zakat
Management.

(2) Guidelines for the Management of Zakat as referred to in paragraph (1) a reference
to Zakat Management BAZNAS, BAZNAS province, BAZNAS districts / cities, and
LAZ.
CONTENTS:

Zakat management

Law No. 38 of 1999 on the management of Zakat Zakat establishes that the objectives
are as follows:

1. Increasing public awareness in the encashment and the Zakat worship service. 

2. Increased function and role as religious institutions in efforts to achieve public

welfare and social justice. 

3. Increased effectiveness and efficiency of Zakat.

In order to achieve the goal that is more optimal for the general welfare of the whole
society, the Law on the Management of charity extends to about infaq management,
sodhaqah, grants, wills, inheritance and expiation. Only the financial administration of
the system is carried out separately. Separate between zakat Infaq, shodaqah, and so
forth.

Utilization of zakat is reserved for mustahiq eight asnaf, according to the explanation of
the Law No. 38 of 1999, mustahiq eight asnaf is indigent, poor, amyl, convert, riqab,
gharim, sabilillah and Ibn sabil that in its application can include people who are most
defenseless economically, such as abandoned children, the elderly, the disabled, people
who studied, cottage Pasantren, abandoned children, and victims of natural disasters.

Reforms infaq, sadaqah, grants, wills, inheritance and expiation preferred for productive
business in order to improve the welfare of the general public, so that the charity is truly
fighting poverty and not just sustain poverty itself. The procedure is set out as follows:

1.Conduct a feasibility study 

2. Establish a productive business 

3. Providing guidance and counseling 

4. monitoring, control and surveillance 

5. Conducting evaluations, and 

6. Make reporting

New Paradigm Zakat

For the purpose of zakat management can be made and people can and want to pay their
zakat through Badan Amil Zakat, it is necessary to change the paradigm of charity, and
thus the conception of charity changed from conception static into a conception that is
dynamic and in turn will receive attention enough of Muslims. The paradigm change
towards the new paradigm by doing the following:

1. Changing the view that zakat is voluntary and the mercy of the rich against the poor,
became zakat is the command of Allah and is obligatory to be implemented. 

2. Zakat is paid after one year, be paid zakat is not necessarily one year but can be paid
in installments every month (credit system) 

3. Zakat is for the chaplain, master tutor, become zakat is for eight asnaf 

4. Zakat is given directly to individuals, become zakat diserhakan through Badan Amil
Zakat (BAZ), Institute Amil Zakat (LAZ) and handed over to a group of people (system
group). 

5.. Zakat must be divided by eight asnaf equal, zakat divided into priority according to
the most pressing needs. 

6. Zakat managed purely consumptive, zakat should be managed productively. 

7. Zakat can only be felt immediately, zakat should be beneficial and long-term double 

8. Zakat tend not to educate, zakat should be educating people out of poverty
surrounding her. 

9. The things that must be issued zakat is contained in fiqh fiqh-old, becoming the
things that must be issued zakat is all earnings and earnings well 

10. Zakat is considered to reduce muzakki wealth, becomes charity it adds richness and
blessing the muzakki.

Target Distribution of Zakat

Target distribution of zakat is to be something that is very important to note, traditional
attitudes in the distribution of zakat needs to be erased and exterminated down to the
roots. We've been too long was to empower zakat, but until now have not been able to
be accommodated charity funds and collected as an economic power that is actually
very empowered for the interests of Muslims, so Muslims are liberated from poverty,
ignorance and backwardness.

The problems that become obstacles in distributing zakat should be excluded, especially
with mengeyampingkan ideologies impressed for traditional ideology or ways more
advanced, such as:

1. Cooperation BAZ with the company to make a garden or fish pond people with zakat,
asnaf subsequently given to those who deserve it or to someone in religious institutions
that are still included in the group of existing asnaf. 

2. Cooperation BAZ with propaganda agencies as well as banking, in which the funds

Fisabilillah be an important part of the main activities for the regions difficult /
vulnerable socio-religious. 

3. The existence of BAZ movement in collecting funds to support the community

through Infaq Waqf form of productive assets to prosper social and religious
institutions.

In addition to the above, the empowerment of zakat needs to consider targeted

distribution of zakat in various sectors of life, among other things:

1. Economic problems, including public revenue is relatively low due to lack of

working capital, less capable in their field of agriculture and weak performance in
agribusiness. 

2. Environmental issues such as the religious sector of religious educational institutions

and community groups engaged in such Tamir religious mosques, imams, preachers,
teachers TPA, MDA teacher, officer deaths and others who received less attention from
the public. 

3. social problems such as lack of infrastructure and public service facilities (clinics,
venture capital, cooperatives for small farmers, and so on). 

4. Problems office as their specific groups to be empowered, and that need special
handling (unfortunate, ill with a load of debt). 
5. Environmental issues surrounding the company such as the problems of education,
houses of worship, community economic empowerment such as agriculture and social
services.

Zakat Management Organization

Zakat management is done by Badan Amil Zakat (BAZ) formed by the government,
both at central and regional level. BAZ organizations at all levels have a working
relationship coordinative, consultative and informative. BAZ stewardship consists of
elements of society and government who meet certain requirements such as having
properties trustworthy, fair, dedicated, professional and of high integrity.

In addition to the BAZ established by the government, the community is given the

opportunity to establish an institution of zakat management is fully formed at the
initiative and by the community with the criteria as an Islamic organization and or
Propagation Institute engaged in propaganda, education, social and welfare of Muslims
called institute Amil Zakat (LAZ) at the national level and the provincial
level. LAZ Inauguration conducted by the government in this regard:

1. LAZ Parking by the Minister of Religious Affairs 

2. LAZ Provincial Governor upon the recommendation of the Head Office of the

Ministry of Religious Affairs. 

3. LAZ Regency / City by Regent / Mayor upon the recommendation of the Head Office
of the Ministry of Religious Regency / City. 

4. LAZ on the proposal of the District by the Head Chief of the District Office of
Religious Affairs.

LAZ who have been there and that will be established by the people was confirmed,
nurtured, and protected by the government. Inauguration LAZ accordance with the
decision of the Minister of Religion No. 581 of 1999 on the implementation of Law No.
38 of 1999 on the management of Zakat is done at the request of Amil Zakat after
fulfilling the following requirements:
1. Regulated law; 

2. Has the data muzakki and mustahiq; 

3. It has been operating for at least 2 years; 

4. Have the financial statements audited by a public accountant for the last 2 years; 

5. Have the operating area (for the national 10 provincial level, the provincial level,
40% of Regency / City; 

6. Got a recommendation of the Forum Zakat; 

7. It has the capacity to raise Rp. 1,000,000,000.00 (One Milliyar Rupiah) within one
year at the national level, while at the provincial level as much as Rp.500,000,000.00
(five hundred million rupiah). 

8. Attach affidavit willing surveyed by a team established by the Ministry of Religion

and audited by a public accountant; 

9. In carrying willing to coordinate with Badan Amil Zakat (BAZ) and local Religious
Affairs.

BAZ at each level can form Gatherer Zakat Unit (UPZ) tasked with collecting zakat,
infaq, shodaqah, and other directly or through accounts at the bank. In the
implementation of data collection in collaboration with financial institutions and banks.

Zakat collection

In the implementation of the collection of zakat can not be coercion against muzakki,
but muzakki calculating zakat own possessions and obligations under Islamic law.In this
case muzakki can calculate your own fortune and obligation of zakat, however muzakki
may request assistance to BAZ to calculate it.

Manage zakat, infaq and shodaqah it basically is to manage the money, then the
management should be carried out in a professional, transparent and accountable as well
as the management of financial institutions and banks, because any time can be audited
by a public accountant.
In order to guarantee the implementation of the management of zakat well as a religious
mandate, there must be an element of judgment and control elements on
theBAZ and LAZ, as well as any legal sanctions against
managers. Similarly BAZ required to provide an annual report to the House of
Representatives (DPR) and Regional RI in accordance with the levels.

In addition to the above surveillance, the public can also perform control that can be
realized in the form:

1. People can request information about the management of zakat which is managed by
the BAZ and LAZ. 

2. The public can send suggestions and opinions to the BAZ and LAZ. 

3. Communities can provide reports on the occurrence of irregularities in the

management of zakat conducted by BAZ and LAZ. 

Zakat and Taxes

Society as a taxpayer is not expected terkenan double burden, ie the obligation to pay
taxes and the obligation to pay zakat. Therefore, Article 14 paragraph (3) of Law No. 38
of 1999 on Zakat Management has arranged that zakat which has been paid
to BAZ and LAZ or can be deducted from income / residual taxable income in
accordance with the legislation in force.

The setting of this is also regulated in Law Number 17 Year 2000 on Income Tax. So
that the deduction can be carried out properly and avoid misuse by parties who are not
responsible, either muzakki and managers BAZ and LAZ, it is necessary to set up a
mechanism, validitasi forms, and reporting the payment of zakat to
the BAZ andLAZ. As for payment infaq, shodaqah, grants, wills and expiation, not be
used for tax deduction, as basically not an obligation.

Principles of Zakat Management Organization

As an institution, the Institute for the Management of Zakat has principles that guide its
work. In Law No. 23 of 2011, stated that the principles of the Zakat Management
Organization are:
1) the Islamic Sharia. In carrying out its duties and functions, Lembaga Zakat
Management should be guided in accordance with Islamic law, ranging from procedures
for recruitment to the manner of distributing zakat.
2) Amanah. Lembaga Zakat Management yangdapat institutions should be trusted.
3) Benefits. Lembaga Zakat Management should be able to memberikanmanfaat
profusely for mustahik.
4) Justice. In distributing the Zakat, Zakat harusmampu institution will act fairly.
5) The rule of law. Muzakki and mustahik must have the guarantee dankepastian law in
the process of zakat management.
6) Integrated. Management of zakat must be done hierarchically sehinggamampu
improve collection performance, distribution, danpendayagunaan zakat.
7) Accountability. Zakat management should be accountable to the public and easily
accessible by the public and other interested parties.
Under Law No. 23 In 2011, the management of zakat are:
1) Improving the effectiveness and efficiency of service delivery in the management of
zakat.
Better management of zakat which will facilitate an LPZ steps to achieve the core
objectives of the charity itself, ie the optimization of zakat. By acting efficiently and
effectively, LPZ able to leverage existing zakat funds to the maximum.
2) Increase the charity benefit for the public welfare and poverty reduction
Zakat management intended that zakat funds actually channeled to the right people and
distribute zakat funds in the form of productive so as to improve the welfare of the
community. Utilization of zakat for productive things to do with establishing the Foster
House, conducting training home industry, establish a free school, and so on.
Type Managed Funds Zakat Management Organization
LPZ receive and manage different types of funds, namely:
1) The Zakat Fund
There are two types of zakat funds managed by LPZ, namely zakatumum funds and
charity funds devoted. General charity fund is a fund provided by muzakki zakatyang to
LPZ without charity fund devoted tertentu.Sedangkan request is granted by the charity
fund muzakki devoted to LPZ demand, for example untukdisalurkan to the orphans, and
so on.
2) Funds Infaq / Shadaqah
Such as zakat funds, funds infaq / shadaqah consists of danainfaq / shadaqah general
and infaq funds / special shadqah. Dana infaq / shadaqahumum are given funds from
donors to any tanpapersyaratan LPZ. While funds infaq / shadaqah devoted adalahdana
given donors to LPZ with various persyaatantertentu, such as for distribution to the
public in a particular region.
3) The Waqf Fund
Waqf is to refrain from doing something about it yangmanfaaatnya given to a specific
person with a good goal.
4) Funds business
Fund managers are right amil used for operational membiayaikegiatan institutions are
sourced from:
a) The right amil zakat fund
b) a certain portion of the funds infaq / Sadaqah
c) Other sources that are not contrary to the sharia
Conclusion
By amil zakat,zakat management has been exemplified since the time of the Prophet.,
Management and distribution of zakat done institutionally and well structured. In the
context of Indonesia it was reflected in the Law of the Republic of Indonesia Number
23 of 2011 on the Management of Zakat, where the Act stipulates fairly detailed on the
functions, roles and responsibilities of Amil Zakat (BAZ) and Amil Zakat (LAZ).
In order to maximize the role and function of zakat management institutions, must be
managed as well as possible. Not quite up there, zakat management institutions must
also be accountable, that the mandate given by the trust terhdap muzakki and also
mandate in distributing it to mustahiq, in the sense of well targeted and appropriate.