Purpose This paper aims to construct a conceptual framework which explains the relationship between governance of zakat institutions and zakat payment compliance by using the organisational legitimacy theory. Design/methodology/approach This paper adopts content analysis and a review of multidisciplinary literature that primarily relate to zakat institutions, public governance and compliance behaviour. Findings The paper has developed a model, adapted from Abioye et al. (2013), concerning the influence of governance mechanisms on zakat payers’ compliance using trust as a moderator. The model comprises four governance mechanisms which influence zakat payment compliance. The four mechanisms include the board and leadership attributes, transparency and disclosure practices, stakeholder management practices and procedural justice. Trust has a moderating effect on the relationship between governance and zakat compliance. Research limitations/implications This model is applicable to regulated zakat systems, where the state has established zakat institutions and regulations for the collection and distribution of zakat, such as Saudi Arabia, Pakistan, Sudan and Malaysia. Originality/value This paper proposes a model, based on Abioye et al. (2013), to explain the influence of governance on zakat payment compliance. The novelty of the study is the addition of one new critical variable, procedural justice, to the Abioye et al.’s (2013) framework. Secondly, the model is proposed for regulated zakat jurisdictions.

The purpose of this study is to investigate the influence of governance practices of the formal zakāh authority in Saudi Arabia, the GAZT (General Authority of Zakat and Tax), on zakāh payment compliance. It employs a quantitative approach using a questionnaire survey of actual zakāh payers in Saudi Arabia. The analysis of one hundred and twenty-five usable questionnaires collected through random sampling from al-Madinah region was done using the PLS (Partial Least Squares) - SEM (Structural Equation Models) technique.

This study investigates the issues pertaining to governance practices of the formal zakat institution in Saudi Arabia, GAZT. It also attempts to develop a framework which explains how to improve zakat compliance through good governance. In order to achieve its objectives, the study employs a content analysis of relevant literature and qualitative interviews. Specifically, a total of 21 interviews were conducted with zakat experts in Saudi Arabia who represent diverse backgrounds to explore the issues and factors related to zakat governance-compliance relationship. The findings of the interviews’ analysis suggested several issues that likely affect zakat payers’ compliance in the Saudi context. These issues included the lack of control mechanisms that guarantee zakat payers’ compliance, the perceived image of the GAZT role in relation to zakat, the lack of trust, and issues affecting the perceived procedural fairness. In addition, the analysis of the qualitative interviews was used to develop a framework that explains how to improve zakat compliance through good governance. This study contributes to the literature by investigating governance issues and challenges to improving zakat payers’ compliance. Also, it provides practical implications for zakat administrators, especially in Saudi Arabia, to address these issues and improve the effectiveness of the zakat authority.