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Compliance behaviour on Zakat donation: A qualitative approach

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

Compliance behaviour on Zakat donation: A qualitative

approach

J M S Farah1, M H B M Shafiai1 and A G B Ismail2

1
Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia, Bangi, Selangor,
Malaysia.
2
Kolej Pengajian Islam Johor (Marsah), Jalan Heman, Kampung Aman, 80350 Larkin
Jaya, Johor Bahru, Johor Darul Tak'zim. Malaysia.

E-mail: Jamacc10@hotmail.com

Abstract. Zakat is a mandatory charity that is paid by every Muslim as part of their duty to the
creator. This study examines the compliance behaviour on zakat donation. The study further
defined compliance in term of religious obligation among the Fakulti Ekonomi dan Pengurusan
academicians at Universiti Kebangsaan Malaysia (UKM) using a qualitative approach. This
Study used interview methods with saturated sample size. The findings of this research
revealed there is a diversity of commitments and obligations for compliance behaviour on
zakat donation. Amongst the universal themes of zakat paying motivations namely; religious
duties, knowledge about the zakat donation into the poor, confidence in the fair disbursement
of zakat collection to Asnaf, a blessings from Allah, assisting Muslim society, the inspire of
zakat administrators, tax repayment incentive, cleanse one’s revenue and wealth, and control of
spiritual teachers. The research suggested that more empirical studies should be done within
the area of compliance on zakat donation using a qualitative method since the majority of the
prior studies on zakat compliance only focused quantitative method. This study also
recommends the future studies might concentrate on internal or psychological obligation and
donation on zakat.

1. Introduction
Zakat is a mandatory charity that is paid by every Muslim as part of their duty to the creator. There
are five pillars of Islam zakat is the third pillar from the five pillars of Islam. Zakat also stated
consistently in the holy Quran and Hadith as well. A Scholar Yusuf Al-Qardawi remarks that there are
some Muslim religious scholars highlighted that Quran stated zakat in eighty-two places, whereas
according to Al-Qardawi, the zakat is stated about 30 times, while 27 incidences are confirmed
composed with the order of regular prayers.
Technically, zakat is the amount of money that must be paid on a particular group of people in
exact ways when the particular wealth achieved a specific amount to a certain period.
Zakat in Malaysia is under the Islamic religious council for every federal state. The state has its
policies on zakat affairs which contain a method of collection, payment policy, of zakat officers, and
enforcement. The federal government in Malaysia has an inadequate role in recommending and
checking religious affairs in Malaysia.
Despite the zakat collection and payments is administered by spiritual affairs. The zakat collection
in Malaysia is still low. The majority of the employees donate revenue tax which is a legal duty; they

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

do not pay with zakat donation which is a religious responsibility Ahmad Sarkawi et al., (2015), Abdul
Rashid, (2017), Khairuddin et al. (2018).
According study done by Raedah et al. (2011), Samargandi et al. (2018), totals collection of zakat
funds are still lower than the total collection of tax by the Inland Revenue Division.
Despite fatwa which is in help of zakat on income made by particular authorities, zakat on income
remains a voluntary practice rather than been very compiled by Muslims in Malaysia. There is an
almost no of enforcement at the state level which may impede the efficiency of the zakat regulations.
Furthermore, the Zakat ability of income is an ever-contentious issue. Nurbarizah, (2008).
Whereas the most of the prior studies concentrated on the role of zakat from the Administration of
Zakat payments in the Practice of Fatwa aspect, a limited prior study that introduced their study
compliance behaviour on zakat paying, these previous studies used the Theory of Planned Behaviour
(TPB) model for their research. Their study used compliance behaviour on zakat paying without
defining the compliance behaviour in Islamic principle duty which is a difference with the tax
compliance.
Prior studies researched the compliance behaviour on zakat donation without defining the
compliance behaviour in Islamic principle obligation. The zakat donation is different due it serves of
Allah (s.w.t), and it is a part of Ibadah whereas compliance behaviour of a tax income it is not a
religious obligation or (Ibadah), and if the taxpayer does do not comply with the taxpaying, the
government will penalise him or her. The underlying motivations for zakat donation, in particular,
need to explored and identified since there is lacking in the definition and dimension of compliance
behaviour in the context of zakat donation.
While the individual Muslim relationship with Allah (s.w.t) is so much different conversation since
the zakat paying is the third pillar among the five pillars of Islam and the zakat paying is a must, and
the definition is different than the tax income.
Whereas the Diabi (1993), Islamic Banking and Finance was defined the compliance behaviour on
zakat paying under Islamic principle is different with the tax compliance because zakat is one of the
Islamic duties to attain cleanliness and goodness of soul. As clearly stated in the Holy Quran, Surah 87
and Verse 14 mentioned as He indeed is successful who purifies himself.
However, this study wants further research on the definition of the compliance behaviour on zakat
donation among the Fakulti Ekonomi dan Pengurusan academicians at Universiti Kebangsaan
Malaysia, academicians and to explore whether planned behaviour model can be applied under the
zakat paying context.
The aim of this paper is to identify the compliance behaviour among the academician in Faculty of
Economics and Management.

2. Literature Review
Since the beginning of the Planned Behavior model Ajzen & Fishbein, (1991) as the underpinning
theory in the study of compliance behaviour, researches in a several of fields such as psychology,
medicine as well as social science has used the model as the underpinning model.
In the area of tax and zakat compliance behaviour, there have been many studies which have tried
to investigate the association between attitude towards behaviour and behavioural intention, subjective
norms and willingness/compliance, and perceived control and intention/compliance or any mixtures
of the associations.
Also, there have been studies which have tried to introduce additional construct such as moral
obligation, Islamic religiosity, and perception towards law enforcement in their theoretical framework
of their studies. Nevertheless, the empirical indication so far has revealed that there is no decisive
proof as to which variables is significant. The indication so now is mixed at best.
Therefore, there is a research gap in the prior studies concerning the compliance behaviour
concerning the planned behaviour model these studies looked on the association side between planned
behaviour model constructs and few other external constructs within their framework. The evidence so

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

far has confirmed that there been mixed evidence regarding the association between planned
behaviour model variables with compliance behaviour and external variables as mentioned earlier.
Whereas, there are some studies such as Haji-Othman et al. (2017), (2018) Sapingi et al. (2011),
Zainol et al., (2013), Mazni Abdullah et al. (2018), Ram Al-Jaffri and Roszaini (2014) supported the
association between attitude and intention. Specifically, Haji-Othman et al. (2017) provided evidence
that attitude had a significant effect on the plan to donate zakat.
Wan Zulkifli et al. (2017) studied the administration of zakat payments in the Practice of Fatwa in
the state of Terengganu, in Malaysia. The results of the study have shown that the practice of issuing a
fatwa in distributing zakat collections in Terengganu can assist the authorities to resolve the
distribution issues as it fulfilling current needs and interests of the public and the government.
Nor Hayati Samba Mohamed et al. (2018), studied the title of administrators monitoring System in
Asnaf Entrepreneurship Development Program by Zakat centre in Selangor their findings revealed that
monitoring element as one of the significant aspects in Simon’s diagnostic control is being actively
practised in LZS. Guideline exercised by LZS on the measurement of Asnaf performance is
straightforward where Asnaf is considered successful when they manage to break free from zakat.
The Author’s highlighted that there seems to be no proper feedback system to track variances from
preset goal such as a systematic database which can show detailed progress of Asnaf. Having an active
database system can help officers in the process of giving feedback to Asnaf evaluated.
Khairuddin et al. (2018), with the title of Assembly Housing needs of the poor Muslims through
Zakat and Wakaf way. The objectives of the study are to assess the possible of zakat and wakaf in the
provision of reasonable poor people, and if so, to classify appropriate strategies to empower the zakat
and wakaf authorities in carrying out the task.
Khairuddin et al. presented the main findings from the study and suggested that zakat and wakaf
have great possible to help the poor and needy in meeting their housing needs and that the best way
forward is for the zakat and wakaf authorities to do so through collaboration, either among themselves
or with private property developers.
Their research highlighted the important of the study, and it is results are observed in terms of the
advanced idea in encouraging zakat and wakaf authorities to collaborate alternative of working on
their own, with conditions that issues related to the Shariah are resolved.
Mazni Abdullah et al. (2018), examined the impact of religiosity, gender and Islamic educational
background of Muslims on zakat donation. His research investigates the dimensions classify of
religiosity are importantly related to zakat donation.
The author’s findings revealed that the religiosity had an important impact on zakat donation and
three dimensions of religiosity, namely obligation, virtues and vices, and optional ritual, were directly
related to the zakat donation. Gender was also found to have a direct support with zakat donation, but
in a negative direction, recommending that Muslim employed females are fewer donating to zakat
obligations compared to their male counterparts. It was found that formal Islamic educational
background had no important impact on zakat donation. Hence, their study suggested future studies to
concentrate on a religiosity.
Haji Othman et al. (2018) conducted a study titled the Moderating Effect of Islamic Religiosity on
zakat donation in Kedah, Malaysia. Their research shown indication that Islamic religiosity was to
have direct association in moderating the perceived control and subjective norms towards intention
with zakat donation
Haji Othman et al, Research suggested that zakat administrators in Kedah State should organize,
manage and implement an operative intervention by emphasizing the significance of zakat donation
and zakat disbursement that is a religious responsibility to every Muslims individual who have
satisfied the terms and conditions of donating zakat in general and Muslim teachers in specific, which
could change their beliefs about the influence of zakat donation.
Al Jaffri Saad et al. (2016) examined the perceived service quality towards zakat administrations
amongst 227 Muslim individuals within the business in Malaysia. Their study data were analysed
using descriptive statistic.

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

The author’s results showed that the most of participants rated three features of the quality, namely,
tangibles, reliability and courtesy as “Good”. Meanwhile, credibility, competence, responsiveness,
access, understanding and communication were features that rated as “Bad. The future studies could
test the association among this constructs and zakat donor’s behaviour by seeing a comprehensive
sample size.
Agus Faisal & Irma Yuliani, (2017), studied the title of Creative Zakat of Baznas Yogyakarta on
the Growth of Micro Business. Agus et al., findings show that Productive ZIS has a encouraging and
significant impact on the growth of the micro business. The more distributed productive of ZIS, the
fast the growth of the micro business.
Agus Faisal &Irma Yuliani recommended for the future studies; it is expected to conduct more
comprehensive research related to the productive ZIS, especially in the use of variables as well as the
modelling and analysis of data, so that data is processed more real to describe the result of research.
Although the previous studies are mainly concentrated the administration of zakat disbursement in
the Practice of Fatwa, Wan Zulkifli et al. whereas, Mohamed et al. studied the Management Control
System in Asnaf Entrepreneurship Growth Program by Zakat centre of Selangor. These authors are
focused on the zakat management and distribution and control of zakat.
On the other hand, Mazni Abdullah et al. investigate the effect of religiosity, gender and Islamic
educational background of Muslim individuals on zakat donation. While Haji Othman et al. conducted
a study titled the Moderating Effect of Islamic Religiosity on Zakat donation in Kedah, Malaysia.
Al Jaffri Saad et al. examined the perceived service quality towards zakat centres amongst 227
Muslim individuals in business in Malaysia. All of these scholars do not concentrate on the definition
of the compliance behaviour on the perspective of zakat donating. However, this research wants to
further the description of the compliance behaviour on the perspective of zakat donation among the
Fakulti Ekonomi dan Pengurusan academicians at Universiti Kebangsaan Malaysia (UKM),
academicians.

3. Research design
The study introduces the interpretive design with the case method, by conducting a semi-structured
interview with (10) participants. The total population of this research is an individual level; with the
sample limited to Faculty of Economics & Management academicians of Universiti Kebangsaan
Malaysia. The saturated approach is used to determine sample size. The studies ask participants to
identify the compliance behaviour of Economics and Management academicians towards the
commitment to zakat paying.
The collection of data was saturated until there’s a new answer to report. This means there are no
new motivations are found by asking new participants. Data is obtained through direct interaction with
participants by unstructured interviews. In this regard, researchers use a tape recorder and notepad to
tape and record the interviewee’s responds. Researchers use the informal questions based on the
interview protocol prepared earlier. Example of the interview protocol questionnaire that was asked
into the participants is as follows:
1. What is your motivation for paying zakat?
2. How do you pay zakat? Example: salary deduction, internet banking, etc.?
3. Do you belief zakat is the religious obligation?
4. Does your parent influence for paying zakat?
5. Does the zakat Amil influence you to pay zakat?
6. Do you believe that the distribution of zakat by the department of zakat to Asnaf happens
somewhat?
Despite that, the participants are free to respond and provide additional points. The rationale is to
facilitate researchers us to obtain much more detailed information than what is available through other
data collection methods. Where necessary, the researchers ask a few spontaneous questions based on
the responses given to encourage more related information and to see whether it reaches the saturation
point.

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

4. Findings of the study

From the data transcription, the research shown there are a diversity of themes for zakat commitment.
Amongst the universal issues of donors that are coded are:

− Religious obligation
− Refers the awareness of ethical responsibility on zakat paying while the Zakat is an obligatory
Islamic religious responsibility upon all wealthy Muslims to be donated to the poor in the community,
and its practice should be achieved according to the recommended approach by the Qur’an and
Sunnah.
− Knowledge about Zakat
− Refers to one’s knowledge about zakat and the experience could be obtained through formal or
informal learning.
− Help the Poor
− Refers to one’s intention to assist the people in need by donating zakat at the same time it should be
noted here that the primary aim of zakat is to eliminate poverty.
− Trust in Fair Disbursement of Zakat donation to the zakat recipient Asnaf
− This means that one’s self-assurance in the fair disbursement of zakat donation by the Department
of Zakat to the recipient’s asnaf.
− Reward from Allah
− Refers to one’s intention to donate zakat is to get rewards from Allah in the hereafter.
− Help the Muslim Community
− This means that ones to his/her hope to help the Muslim community by paying zakat.
− Influence of Zakat Amil
− Refers zakat worker to influence on the participants to donate zakat into the zakat centre in
Selangor in Malaysia
− Tax Rebate Incentive
− Refers to the tax rebate incentives that are given by the government for the zakat payers (Income
Tax Act 1967, 2006)
− Purify One’s Income and Property
− This means that to his/her belief that is paying zakat will purify income and property. Zakat
cleanses and cleans wealth, and purifies the soul from stinginess and greed.

Table 1. Demographic profile of the Participants.

Age Gender Qualification Main Findings
36 Male Master Degree Awareness about Zakat as a Religious Responsibility. To
assist the Poor and Needy. Understanding about Zakat.
38 Female PhD Awareness about Zakat as a Religious Duty. To assist the
Poor and Needy. Knowledge about Zakat. Influence of
Zakat Amil
49 Male PhD Confidence in Fairness of Zakat Distribution. Influence of
Zakat Amil.
51 Female PhD Awareness about Zakat as a Religious Duty. To assist the
Poor and Needy.
53 Male PhD Awareness about Zakat as a Religious Responsibility. To
assist the Poor and Needy. Knowledge about Zakat.
47 Male PhD Awareness about Zakat as a Religious Responsibility. To
assist the Poor and Needy. Knowledge about Zakat.
52 Male PhD Awareness about Zakat as a Religious Duty. To assist the
Poor and Needy. Knowledge about Zakat.

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

Table 1. Demographic profile of the Participants.

Age Gender Qualification Main Findings
50 Female PhD To Purify Income and Property. To Obtain a Reward from
Allah in the Hereafter.
46 Female PhD Awareness about Zakat as a Religious Responsibility. To
assist the Poor and Needy. Effect of Religious Teachers.
55 Male PhD To Purify Income and Property. Tax Rebate.
NOTE: Total number of participants is 10

Table 1 shows that there ten (10) general themes of commitments on zakat paying. Therefore, this
study finds that there ten (10) duties on zakat spending among academicians in the Fakulti Ekonomi
dan Pengurusan academicians at Universiti Kebangsaan Malaysia. The Commitment to zakat paying
among the faculty academicians of National University of Malaysia is as follows:
− Awareness about Zakat as a Religious Obligation
− Knowledge about Zakat
− To assist the Poor and Needy
− Confidence in Fairness of Zakat Distribution
− To Attain Reward from Allah in the Hereafter
− To Help Improve Muslim Community
− Influence of Zakat Amil
− Tax Rebate
− To Purify Income and Property
− Importance of Religious Teachers

5. Discussion and analysis

This study finds that there are (10) commitments or obligations of compliance behaviour on zakat
donors within the Fakulti Ekonomi dan Pengurusan academicians at Universiti Kebangsaan Malaysia.
The study participants have only focused the Faculty academicians. This study reveals that there Ten
obligations and commitments on zakat paying among academicians at the Faculty of Economics and
Management.
While most of the participants highlighted that after their salary deduction the University
Kebangsaan Malaysia Bursary Department would pay whole zakat money into the zakat centre of
Selangor, therefore, the obligation on zakat settling into the Bursary Department at the University
Kebangsaan Malaysia then the Bursary pay the zakat into the Centre of the zakat Department in
Selangor state.
Furthermore, the study focused on defining the compliance behaviour on zakat among
academicians in the Fakulti Ekonomi dan Pengurusan academicians at Universiti Kebangsaan
Malaysia. This study result found that most of the participants are donates zakat since zakat is the one
of the pillars of Islam among the five pillars of Islam. And the second most themes the participants
mentioned was to get a reward from Allah. The third theme that the participants stated was to assist
the poor and needy Muslim individuals.
Islamic religious was found to have a direct association with compliance behaviour on zakat
donating. The findings of the study are Similar to the results of study done by Mazni et al. (2018), the
results revealed that religiosity had a important effect on zakat donation. The result of the Subjective
norms is constants with the conclusions of the Haji Othman et al. (2018), the study was found
subjective criteria to have significant influence with intention towards compliance behaviour.
Also, perceived control is similar to the study done by Haji Othman et al. (2018), observed control,
was found to have a direct association with the intention of compliance behaviour. This study arranges
the themes of this study and comes out diagram consisted of Islamic religiosity, subjective norms,
perceived control towards compliance behaviour.

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

This is ten (10) commitments on zakat paying among the academicians:

− Awareness about Zakat as a Religious Obligation
− Knowledge about Zakat
− To assist the Poor and Needy
− Confidence in Fairness of Zakat Distribution
− To Achieve Reward from Allah in the Hereafter
− To Help Improve Muslim Community
− Influence of Zakat Amil
− Tax Rebate
− To Purify Income and Property
− Importance of Religious Teachers

Figure 1. Commitment toZakat paying among FEP@UKM academic.

The results of this study are slightly different from findings from a previous literature review on
compliance behaviour on zakat paying. Most previously reviewed literature shows that the research on
compliance behaviour of zakat uses quantitative analysis. Most of them use the reasoned action
&Planned Behaviour Models as the foundation model. Using the planned behaviour model, study plan
hypothesis, collect data and accept or reject the hypothesis. This is called deductive reasoning.
However, this study introduces a qualitative research approach. Instead of using deductive
reasoning, this study uses inductive reasoning. The study examines the phenomena using interviews,
analyse themes, formulate Relationships and come up with a theoretical model as shown in Figure 1.

6. Conclusion and suggestions

This study attempts to further define the compliance behaviour on zakat paying by using interview
approach and comes up with a different diagram. The previous studies used to examine the compliance
behaviour of income, business and saving zakat using the psychological model of planned action. The
expected behaviour model which was proposed the components of attitude, subjective norms and
perceived control as the independent constructs which influence intention, which in turn affects
compliance behaviour. The previous studies on compliance behaviour on zakat paying that used
planned behaviour as underpinning model their findings were mixed at best. This study suggests that

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International Conference on Innovative Research - ICIR EUROINVENT 2019 IOP Publishing
IOP Conf. Series: Materials Science and Engineering 572 (2019) 012040 doi:10.1088/1757-899X/572/1/012040

religiosity, subjective norms and perceived behavioural control influences compliance behaviour; it is
very significant to recognise zakat donors.
The study can take the essential steps to increase on zakat donors. When zakat donors are
increased, zakat can play a more vital role as an important tool of reducing poverty and as well near
the gap among the poor and the rich in the Muslim Ummah. Although there is an extensive literature
on the compliance behaviour on zakat paying, almost all of them use a quantitative approach. The
results of this study are different from earlier explore findings due to defined the compliance
behaviour on zakat paying as an Islamic principle and using a different approach than the previous
studies qualitative approach.
The research suggested that more, inclusive research should be done in the area of zakat
compliance using the qualitative method and future researchers could attempt to use the diagram
introduced by this study as their theoretical framework.

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