Evaluating institutional contributory performance towards the sustainable development of zakat recipients in Kedah, Malaysia

Sustainability is important in reducing hardship. Though zakat plays a role, but inequalities do raise systematic issues and detecting it remains long due. Therefore, the study looks at the level of sustainable development of the zakat recipients, whether the institutional contributory factors or the demographic changes over time have an impact. The aim of the study includes understanding the significance of these factors. Zakat recipients can be better entertained by a sustained-mechanism than one off measures. The data was meticulously collected through 427 returned questionnaires among zakat recipients in eleven districts of Kedah and it was thoroughly analysed using path techniques of the PLS-SEM. The results support that the institutional contributory performance having a positive effect on the sustainable development of zakat recipients, but there are issues that need careful addressing. Hence, the study suggests that asnaf upliftment should be based on a sustained self-reliance strategy. In the findings, it’s observed that the majority of the recipients receiving very minimum assistance, which can hardly empower them. Accordingly, it’s imperative that the zakat fund needs to be geared towards long term productive use. The study further examined the moderating role of demographic factors such as earnings, age, marital status and gender, and witnessed that after zakat assistance, the β value, R², ƒ², Q², CR, all improved in the subsequent moderation model, though individual moderating results are not astounding. The study initiated a newer dimension of before-zakat and after-zakat findings to examine sustainability in a real sense, and likewise understanding the recipient’s level of Islamic self-actualisation. This study contributes towards understanding of the linkages between the institutional contributory performance and sustainable development along with demographic implications and the level of Islamic self-actualisation. The study in the end, underlined the limitations and the possible recommendations for future research in zakat development.