CHAPTER V CONCLUSION & SUGGESTION. broaden its effect, program on zakat microfinance is a smart step. Assessment and

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CHAPTER V CONCLUSION & SUGGESTION 5.1. Conclusion Zakat multiplier effect on economy is no doubt. To accelerate and broaden its effect, program on zakat microfinance is a smart step. Assessment and evaluation of such program is needed for the betterment. The conclusion of this study related to the research question and the objective are as follows: 1. Coverage target group represented by headcount ratio before Sakofa, is 74 percent. It does not mean that DD chose many wrong targets. There are other considerations beyond income consideration such as the number of dependants and health condition to choose mustahiq candidate. In the terms of the use of fund, there is only one respondent who does not use the money for capital. 2. This study found that mustahiq economy level is increasing after Sakofa Program based on poverty indices. It shows by the decrease of headcount ratio, poverty gap, poverty severity, and Watts index. Headcount ratio decreases from 74 percent to 63 percent. Poverty gap decreased by 5 percent, poverty severity decreased by 3 percent, and Watts index decreased by 10 percent. The average time taken to exit poverty with a constant income growth rate at 0.32 is 2.72 years before productive zakat distribution, while after zakat distribution the time needed to release the poor from poverty line is reduced to 1.51 years. The formal statistical test 97

98 of Wilcoxon Matched Pairs Test shows that mustahiq s income, profit, and turnover after Sakofa Program are higher than before. 3. Related to the operational evaluation of Sakofa Program, the conclusion are as follows: a. Performance of Sakofa Program in the aspect of mustahiq s economy level is good based on the poverty indices and the significant betterment of the income, profit, and turnover after Sakofa. b. Effectiveness of counseling material on spiritual is the lowest among the other materials. Moreover, there is one respondent who said that he want counseling material about religious terms. Due to its important, DD should pay more attention in this aspect. Related to spiritual material, 20 percent of respondents do not know what the zakat mal is; and 26.67 percent of respondents do not know the difference between infaq and shodaqoh. Counseling material related to entrepreneurship spirit has no association with the mustahiq s desire to be independent, discipline, and enthuasiasm. c. In terms of philanthropy aspect, from 6 mustahiqs who do not give infaq before Sakofa, four of them become munfiq after Sakofa Program. The increase of average infaq is 52 percent. Savng behavior shows a positive changing after Sakofa Program. The increase of average savings is 174 percent The Wilcoxon Matched Pairs Test concludes that infaq and savings after zakat distribution is higher than before.

99 d. Most of respondents admit that Sakofa Program is very useful for their life. Related to standard of living, as many as 19 respondents said that the existence of Sakofa Program does increase their prosperity. Overall, it can be concluded that Sakofa Program has a good achievement in pursue its goal. 5.2. Suggestion The increase of income, turnover, profit, and the good changing of philanthropy and saving aspects of the mustahiqs are enough evidence to say that Sakofa Program should be continued. To optimize the benefit of Sakofa Program, monitoring should be on continous basis. System that describes specific living and business conditions will be an effective scheme to program monitoring. Evaluation should be done after a period Sakofa Program implemented. DD should pay more attention on spritual aspects of the counseling since it has the lowest effectiveness but as the first Maqashid al-syari ah, it has important role in the mustahiq s life. Related to the use of productive zakat fund, before the disbursement of productive zakat, the mustahiq s basic needs should be met. It will avoid the misuse of zakat fund for personal consumption. Zakat and tax have similar goal in the context of social welfare. In Indonesia, the management of both instruments is far from effective. Indonesia should learn from Arab Saudi. In Arab Saudi, firm who has paid zakat will get a certificate which is a requirement to extend the firm s operating license. Those who are non-muslims are obliged to pay taxes instead of zakat. This system increases the discipline of zakat and tax payment. In order to encourage people to

100 pay zakat, zakat payments should be deducted from tax requirements, as practiced in Malaysia. The big potential of zakat fund in Indonesia should be supported by the good management of its collection and distribution. Beside its role in the integration of financial report and shari ah audit, BAZNAS as the coordinator of the zakat management in national level should build an integrated database 27 that maps the zakat management by all BAZ and LAZ. Geographic Information System (GIS) could be use to map region, complete with the mustahiq s classification. LAZ of different organization (NU, Muhammadiyah, etc) can focus on certain program. In the integration process, LAZ as the private zakat management should still be given spaces in optimizing the zakat management since its tremendeous achievement compared to semi-governmental zakat management (BAZ). Collaboration with institution that competent to certain program should be continued and expanded (such as BMT in the microfinance program). The mustahiq s before and after condition do not give representative conclusion about the role of zakat program to the msutahiq s life. Impact Evaluation is a more appropriate method to analyze the impact / the role of zakat distribution. It has power to conclude that whether the increase of mustahiq s standard of living is caused by zakat program. Monitoring and evaluation (MONEV) is crusial in program implementation. Concept of Maqashid al- Syari ah that comprises spiritual aspects, daily necessities, housing conditions, 27 BAZNAS has already had plan to construct mustahiq and muzaki database.

101 and health is a comprehensive approach. The Standardized Monitoring and Evaluation of zakat program with this concept should be made by competent institution. Related to this, author suggests to researchers or to any related institution to conduct research on MONEV in the framework of maqashid alsyariah. Structural Equation Modeling could be used to analyze the aspects of entrepreneur spirit in affecting the success of mustahiq. In the terms of amil institution performance, the method issued by Indonesia Magnificence of Zakat (IMZ) could be adopted. The measurement components are (1) performance of shariah compliance, legality and institutional, (2) performance of management, (3) financial performance, (4) performance of economic empowerment, and (5) performance of social legitimacy. The parametric (such as Stochastic Frontier Approach) or non-parametric (such as Data Envelopment Analysis) approach adopted from the Efficiency and Productivity Theory could be used to enrich the assessment of the financial performance.