Laily Dwi Arsyianti and Salina Kassim
This paper aims to investigate low-income households in Indonesia with regard to their perspective on charity-giving and its comparison with acquiring debt behavior as their…
Abstract
Purpose
This paper aims to investigate low-income households in Indonesia with regard to their perspective on charity-giving and its comparison with acquiring debt behavior as their tendencies on taking and giving behaviors toward monetary form. The research framework is seen from the Islamic perspective.
Design/methodology/approach
Theory of social production function and theory of planned behavior are used as a theoretical framework. A total of 98.89% of the distributed questionnaires were collected and analyzed using structural equation modeling. Behavior of giving charity and acquiring debt are compared according to the given determinants.
Findings
Under the given Islamic framework, charity is found to be not confined to the donor’s wealth. It is rather centered on religiosity and faith. Subjective norm does not influence intention toward charity. Hence, it only depends on consideration and awareness of a person toward regular giving of charity. Unlike debt that is confined by a person’s wealth, the intention to take debt consecutively of low-income households are also affected by their attitudes, significant others and experiences.
Research limitations/implications
Respondents are residents of six Indonesian territories that represent West, Middle and East Indonesia.
Practical implications
Findings are useful for social, as well as microfinance practitioners who are interested in the financial education on low-income households and study their perspective and behavior.
Social implications
This paper indirectly contributes to changing the perspective of society about charity-giving, especially in philanthropy subject. This paper is also highly recommended for regulator’s input on financial education, as well as for practitioners, consultants and educators.
Originality/value
Charity basically can assist low-income households experiencing financial hardship, which may be the consequence of consecutive taking debt. Most of the studies on charity-giving focus on high-income households, likewise the debt behavior. Charity-giving in voluntary form is also not widely discussed in view of behavior, specifically in Asian countries like Indonesia.
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Irfan Syauqi Beik, Laily Dwi Arsyianti and Novita Permatasari
Digital technology has been widely applied in zakat collection. Millennials, who are now dominating the productive phase and at their peak carrier path, are the potential target…
Abstract
Purpose
Digital technology has been widely applied in zakat collection. Millennials, who are now dominating the productive phase and at their peak carrier path, are the potential target for zakat collection as their number reached 31.3% of the Indonesian population. On the other hand, public and private zakat institutions have attempted to optimize the country’s zakat potential, reaching 233.6tn rupiahs, through development of a digital platform for zakat collection. However, the gap between the actual collection of zakat with its potential is still large. This study aims to analyse the factors affecting millennials in paying zakat through direct payment or through digital platform of private or public zakat institutions.
Design/methodology/approach
Multinomial logistic regression method, which signifies the contribution of this study, is used to analyse factors influencing millennials in their zakat payment. In addition, cross-tabulation is used to classify the characteristics of respondents. Respondents are selected conveniently through a digital questionnaire distributed in February–March 2021. Respondents are also selected purposively based on their experience in paying zakat through direct, private or public zakat institutions, which are consisted of 50 respondents per each category; thus, the total becomes 150 respondents.
Findings
Based on the results, three variables, namely, education, accessibility and age, are found to have a significant influence on zakat payment through online platforms provided by private zakat institutions. Meanwhile, variables that influence zakat payment through online platforms provided by public zakat institutions are education, accessibility and income. This study also finds that millennials have the highest probability to select online platforms provided by private zakat institutions as a channel of their zakat payment. However, the overall result shows that millennials tend to pay directly to the mustahik (zakat recipients) rather than via online platforms, presumably because of their limited zakat literacy.
Research limitations/implications
The purposive sampling technique used to determine the research samples limits the generalization of the study.
Practical implications
This paper establishes a new approach in analysing millennials preference in their zakat payment with digital inclusiveness. The use of a multinomial logistic approach, which has not been widely applied in such research, strengthens the analysis that is relevant to the need of both private and public zakat institutions to analyse determinants of millennials in paying their zakat through online platform. This study can be used as a reference to formulate a more effective marketing strategy for zakat collection. This paper also serves as an estimate of the preference with some selected typical characteristics of millennials by using a multinomial logistic approach.
Social implications
Formal payment through the zakat institution theoretically is more preferable than direct payment to mustahik (zakat recipients) in the zakat campaign. However, based on this research, despite digital marketing and platforms having been well-used by both private and public zakat institutions, the millennials still prefer direct zakat payment than through online platforms. The findings of this research suggest the importance of strengthening zakat literacy through a more effective digital marketing strategy of zakat institutions which target the millennials.
Originality/value
This study fills the gap in the literature on how millennials choose their zakat payment method, whether through digital platforms developed by private and public zakat institutions or directly to the targeted zakat recipients. The use of multinomial logistic regression approach adds the novelty of this research.
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Mohammad Bintang Pamuncak, Hairunnizam Wahid, Abdul Ghafar Ismail and Tamat Sarmidi
This study aims to discuss literature of zakat collection, particularly to compare what Scopus and Web of Science (WoS), as the two most popular databases, provide to complete the…
Abstract
Purpose
This study aims to discuss literature of zakat collection, particularly to compare what Scopus and Web of Science (WoS), as the two most popular databases, provide to complete the pattern and the direction of future research of zakat collection using bibliometric analysis.
Design/methodology/approach
This study collected 266 manuscripts from the Scopus database and 106 manuscripts from the WoS database covering more than three decades from 1987 to the beginning of 2023.
Findings
This study identifies a wider horizon of future research of zakat collection literature. Where Scopus database mostly discusses the connection between the state, government and zakat, meanwhile the WoS database discusses smaller scope of zakat collection, which includes zakat institution and its governance along with behavioural and commitment of zakat payers.
Research limitations/implications
The results imply that future research agenda may include the discussion of state-government-zakat collection policy connection and behavioural and commitment of zakat payers.
Practical implications
The results also imply to widening and deepening the zakat collection. Further, it also implies to administratively to zakat agencies/zakat institution.
Originality/value
To the best of the authors’ knowledge, this study is among the first study (or the first) that compare Scopus and WoS database in the zakat collection literature.