Potential of Institutional Zakāh Management in Socio-Economic Development of Bangladesh

This article presents a comprehensive analysis of the potential of Bangladesh's institutionalized Zakāh system in driving socio-economic advancement. The research meticulously evaluates the impact of the Zakāh fund, managed by both institutional and non-institutional entities, in providing substantial financial capital and income-generating assets. It aims to draw a clear comparison between the two systems, highlighting the institutional model's ability to ensure long-term self-sufficiency, income generation, employment opportunities, and support for training and scholarships. This study employs a descriptive-analytical strategy to facilitate these comparisons. The data for the current study were obtained through comprehensive field research. A total of 385 individuals who pay and receive Zakāh, from both institutional and non-institutional Zakāh management, were surveyed using a standardized questionnaire. The study reveals encouraging outcomes in socio-economic advancement among receivers through Zakāh institutions, while non-institutional management tends to offer low-quality goods and small sums of money. The Zakāh beneficiaries from institutional sources received a slightly higher amount than those from non-institutional sectors. Institutional management holds substantial potential in socio-economic development indicators, significantly contributing to the country's economic growth.