Productive Zakat Collection and Management for Economic Empowerment: A Case Study of BAZNAS Cilacap, Central Java, Indonesia

Abstract

This study examines the collection strategy, management mechanism, and economic effects of productive zakat at BAZNAS Cilacap, Central Java. The study is motivated by the persistent gap between Indonesia’s substantial zakat potential and actual collection, as well as by the need to shift zakat management from short-term consumption toward sustainable economic empowerment. Existing studies generally demonstrate that productive zakat can improve mustahik welfare, but many examine either distribution outcomes or institutional management separately. This study therefore integrates fundraising, productive-zakat management, and beneficiary empowerment within one qualitative case-study framework. Primary data were obtained through in-depth interviews with BAZNAS managers and ten productive-zakat beneficiaries, field observation, and documentation; secondary data included institutional reports, standard operating procedures, regulations, and program records. Data were analyzed using reduction, display, and conclusion verification with triangulation. The findings show that BAZNAS Cilacap combines public education, digital payment services, Unit Pengumpul Zakat (UPZ), payroll-based zakat, and institutional partnerships. Productive-zakat distribution is implemented through application, administrative verification, field survey, beneficiary selection, disbursement, mentoring, monitoring, and evaluation. The Cilacap Makmur program supports business capital, productive equipment, livestock, training, and mentoring. Beneficiaries generally reported higher income and stronger economic independence, although mentoring capacity, market access, and public literacy remain constraints. The study concludes that productive zakat is most effective when fundraising, governance, mentoring, and market linkage operate as an integrated empowerment system.