Factor influencing individual participation in zakat on income / Nor Idayu Othman

• Main Author: Othman, Nor Idayu
• Format: Student Project
• Language: English
• Published: Faculty of Business and Management 2011
• Subjects: Islam and economics; Alms (Zakat); Finance, Islamic
• Online Access: http://ir.uitm.edu.my/id/eprint/28414/1/PPb_NOR%20IDAYU%20OTHMAN%20BM%20M%2011_5.pdf; http://ir.uitm.edu.my/id/eprint/28414/

Zakat is one of the sources of funds available within the Islamic economic and financial systems and has become a part of ijtima’i studies. Although it is obligatory for Muslims to contribute to zakat, however the amount collected is relatively very small compared to the income tax collections. One of the reasons that led to this incident could be the lack of motivation among Muslims. The aim of this study is to investigate the factors affecting individual decisions in zakat contribution hence, provide an understanding of their motivation. In this exploratory study, factor analysis has been used to provide insights into the underlying structure of motivating factors of individuals participating in zakat. Data was collected using a survey questionnaire that was designed based on past studies from both the conventional as well as Islamic literature. The main dimensions were characterised by religious, utilitarian, self-satisfaction and organization factors.