The Efficiency of Zakat Management in Baitul Mal (Data Envelopement Analysis Approach)

Abstract

Purpose: This study aims to measure the level of relative efficiency and determine the impact of the pandemic on the efficiency level of zakat management in Baitul Mal Kota Langsa and Baitul Mal Kabupaten Aceh Tamiang, period 2019 – 2022.

Methods: DEA (Data Envelopment Analysis) method is carry out on this study. The production approach is used in determining input-output variables while the assumptions used are variable return to scale and input-oriented. The variables in this study consist of input variables in the form of total assets and operational costs, while the output variables in this study are receipt of zakat funds and distribution of zakat funds.

Findings: This study indicate that Baitul Mal Kota Langsa has an efficiency level of 100% during the period 2019 – 2022, while Baitul Mal Kabupaten Aceh Taminag experiences inefficiencies in 2019 to 2021 with relative efficiency values of 92.5%, 93.6% and 99.7% respectively.

Practical Implication: Baitul Mal Kota Langsa has achieved an optimal performance while Baitul Mal Kabupaten Aceh Tamiang had experienced inefficiency during 3 consecutive years. Even though this inefficiency does not have direct impact on the effectiveness of zakat fund management, it still must be monitored. This study then has implications for decision and policy making on increasing efficiency in zakat management at Baitul Mal Aceh Tamiang.

Novelty: Studies on the efficiency of zakat management in Baitul Mal Aceh are often carried out with qualitative approach, meanwhile the level of efficiency in this study is measured using a quantitative approach with data envelopement analysis.