Muzaki Empowerment: Uncovering the Dynamics of Trust in Zakat Management Through Accountability and Transparency of Financial Reporting
Keywords:
Zakat, Accountability, Transparency , Muzaki Trust, Financial Reporting, SEM-PLSAbstract
Indonesia is one of the countries with the largest number of Muslims in the world. However, although the number of Muslims in Indonesia is very large, this is not in line with the amount of zakat funds collected. The potential of zakat in Indonesia is very large, recorded in 2023 the total potential of zakat reached Rp327.6 trillion. Unfortunately, in reality, the total accumulation of zakat potential collected since 2002-2020 is only around 1-5%. The low acceptance of zakat funds is caused by muzaki’s distrust of zakat managers. This distrust arises due to the lack of transparency in financial reporting which should be a form of public accountability to muzaki. This study aims to measure how much the influence of accountability and transparency of financial reporting of zakat funds on muzaki trust in zakat management institutions, the research method used is explanatory research. The research sample was taken using the Slovin formula, with a sample size of 100 muzaki. The data collection technique used a questionnaire distributed to respondents and obtained 107 muzaki. validity and reliability as a research instrument, and data analysis techniques using SEM-PLS. The results prove that accountability and transparency of financial reporting have a positive and significant effect on muzaki trust. And this research is expected to make a meaningful contribution to zakat fund managers in improving muzaki empowerment, accountability, and transparency of financial reporting, so as to increase muzaki trust in zakat management institutions and ultimately increase the collection of zakat funds.
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