Ecosystem strategy for the growth and development of Islamic philanthropic institutions

This study discusses an Islamic philanthropic institution growth space initiated by Dompet Dhuafa. After the enactment of Law No. 23 of 2011 on Zakat Management, many zakat management entities, including those based in mosques, schools, orphanages, and baitul maal wa tamwil, no longer have the authority to manage zakat funds from the community due to a lack of permits. This has led to the inability of mustahik, who were previously able to and have benefited from zakat from these institutions, to receive zakat benefits because of concerns about violating regulations. At the same time, mitigation of the risk of delayed and unfulfilled mustahik rights, due to the centralization of zakat management policies, has not been fully implemented. Dompet Dhuafa is here to bridge this gap, allowing unlicensed institutions to grow and develop through a zakat management partnership concept. Institutions that are part of Dompet Dhuafa’s Zakat Management Partners benefit from structured, systematic, and measurable capacity building. This ecosystem also provides room for growth to effectively develop member institutions of Dompet Dhuafa’s Zakat Management Partners with a competitive and innovative spirit. Effectiveness is based on achieving the main indicator of successful fundraising. Competition is based on recognizing and rewarding high-performing institutions. Moreover, innovation gives rise to various strategic initiatives to achieve all established goals. The ultimate goal of this ecosystem is to encourage unlicensed institutions to meet all the requirements to become licensed zakat amil institutions in accordance with the regulations in the Minister of Religion’s Decree No. 333 of 2015.