DETERMINATION OF PROFESSIONALISM AND TRANSPARENCY AND ITS IMPLICATIONS FOR THE FINANCIAL PERFORMANCE OF ZAKAT INSTITUTIONS

Abstract

The objective of this study is to determine the influence of the professionalism and
transparency of zakat management on financial performance, especially in the case of
the Amil Zakat Institution of Daarut Tauhid Peduli Jabodetabek. The method used in
the research is SEM (structural equation modeling) using AMOS, with 156 respondents.
The results show that: (1) professionalism has a negative and insignificant impact on the
transparency of zakat management; (2) professionalism has a positive and significant
impact on financial performance; and (3) the transparency of zakat management has
positive and significant impacts on financial performance. Moreover, the indicators
of competence have the highest loading factors of professionalism; the indicator of
information on fund management has the highest loading factors of transparency;
while the indictor of measurement of economics has the highest loading factor of
financial performance. To sum up, this research suggests that zakat institutions should
improve their transparency and professionalism in order to improve their financial
performance in the future.