Data envelopment analysis model for measuring efficiency of zakat collection and distribution / Nurulhazwani Mohammad and Noraini Noordin

Some quarters have voiced concerns over the efficiency of zakat collection and distribution in Kelantan. This case study has attempted to maximise the efficiency of zakat collection and distribution of the Majlis Agama Dan Istiadat Melayu Kelantan (MAIK) by applying a two-stage linked DEA model. MAIK has focused only on five out of eight asnafs: fakir, miskin, al-gharimin, ibnu sabil and fi sabilillah. Variables for the model included number of zakat payers, total allocations, total expenditures, total collections and total recipients. Results for stage 1 involving zakat collection showed full efficiency for earnings and agriculture with efficiency score, 1. In the second stage involving zakat distribution, only fi-sabillah scored efficiency  1 , which suggested that it has not achieved full efficiency in comparison to other asnafs. Overall efficiency also achieved a score of  1, thus the Data Envelopment Analysis (DEA) model has established that MAIK has achieved full efficiency for zakat collection and distribution in 2014. With this achievement, it is recommended that MAIK review its principles of priority and include the other asnafs as well.