Purpose As one of the constituted main pillars of Islam, Zakah compliance (ZC) is mandated upon Muslims from all studies of life. Taking the disappointingly low compliance level in developing countries, including Yemen, as its backdrop, the purpose of this study is to investigate ZC behavior among entrepreneurs, drawing on the economic approach perspective. Design/methodology/approach The study adopted a cross-sectional design based on a survey of entrepreneurs in Yemen. It used primary data collected via self-administered questionnaires, involving a sample of 500 participants. A variance-based structural modeling equation-partial least squares were used to measure the instruments and assess the hypothesized relationships. Findings The findings affirmed the suitability of the economic factors approaches in the context of ZC in a developing country. Specifically, the study demonstrated that Zakah law complexity has a significant negative influence on ZC of entrepreneurs. It also found a significant positive relationship between religiosity and ZC among the study sample, whereas the study revealed that law enforcement has no influence on compliance behavior. Practical implications Policies and programs focused on Zakah laws and regulations could be formulated to make them less complex and simpler for acceptable levels of ZC. The result is further relevant to policymakers in Muslim communities to strengthen the religious faith of Zakah payers toward compliance with one of the fundamental religious obligations such as Zakah. Originality/value This study enriches the limited previous studies on actual ZC from the perspective of developing communities, especially Yemen. Most importantly, the value was added to the limited literature internationally from an economic aspect.

PurposeWith fundraising appeals for coronavirus disease 2019 (COVID-19) relief efforts and donating to those affected by its spread and impact, donors, volunteers and charities can all play their part and render much-needed support and aid. The purpose of this study is to be part of such effort by empirically examining the intrinsic and extrinsic motivations that drive people's attitudes to engage in fundraising campaigns launched in many communities, providing a richer understanding of donors' responses.Design/methodology/approachThe present work follows a quantitative approach based on an online survey conducted among potential Kuwaiti charitable donors. A total of 565 useable responses (356 females, 209 males) were obtained using snowball sampling and analyzed through smart partial least squares (SmartPLS) software.FindingsWith 90% of respondents financially able to donate who have a monthly income equal to or greater than the average (US$2000), this study confirms the suitability of the model used in predicting donors' attitudes to contribute online to grassroots fundraising campaigns. It reveals that all constructs included in the model (i.e. charitable projects geared for those affected by the pandemic, Internet technology (IT) features and religiosity level) are statistically significant, except for trust in charities.Practical implicationsThis study suggests that in uncertainty and concern surrounding COVID-19, nonprofit organizations, charities and governments should make concerted efforts toward mitigating the impacts of the pandemic on families and workers who are on the frontline against its outbreak. Possible areas need to be improved through suitable proactive strategies to solicit online monetary donations, such as charitable projects with inclusive information, focus attention on IT features (e.g. privacy, trustworthiness, security and effectiveness) and strengthen the religious faith of donors toward the significance of helping vulnerable groups and regions.Originality/valueThe research adds value to the literature on donation and giving behavior by offering an in-depth understanding of what influences online donation attitudes, especially amid such an unprecedented epidemic crisis.

PurposeTo provide a sound understanding of Zakah compliance behaviour, this paper aims to shed light on the relationships between Zakah system fairness, Zakah morale, peer influence and law enforcement with Zakah compliance behaviour among entrepreneurs.Design/methodology/approachThe underpinning model used in this paper is the socio-economic theory of regulatory compliance for assessing the probable determinants shaping Zakah payers' compliance behaviour. Based on a survey of active entrepreneurs in a typical Islamic situation like Yemen, a total of 500 self-administered instruments were distributed to the respondents. Partial least squares-structural equation modelling (PLS-SEM) was used to estimate the compliance model.FindingsAll the variables included in the compliance model are statistically significant, except for law enforcement. Zakah compliance of entrepreneurs is significantly influenced by Zakah system fairness, Zakah morale and peer influence.Practical implicationsZakah institutions and agencies in Muslim-majority countries may use the results of this work to focus attention on appropriate proactive policies to formulate a fair Zakah system, inculcating moral responsibility among Zakah payers, embarking on sensitisation programmes in society as a whole, and being more proactive in educating Muslims in the importance of paying Zakah to the respective Zakah agencies.Originality/valueThis paper complements the limited literature on Zakah by examining both tangible and intangible motivations affecting Zakah payers' compliance decision.

No abstract

Purpose Although zakat is a principal way to redistribute wealth, a unique practice designed to achieve a sustainable Islamic economic and social system, zakat institutions and agencies in most Muslim countries still suffer from the perplexing issue of low zakat collections, ascribing this to the level of compliance among zakat payers. To provide more insight into this lacuna, this study aims to examine the role of trust in zakat institution through the relationship between socio-economic determinants (i.e. religiosity, moral reasoning, peer influence and system fairness) and zakat compliance decisions. Design/methodology/approach From a typical Islamic country, Yemen, a random sample of 274 entrepreneurs was drawn for a self-administered survey. To estimate and analyze the compliance model, SmartPLS structural equation modeling was used. Findings The results show that all hypothesized direct relationships are supported. Importantly, the trust-moderated interactions of religiosity, moral reasoning and peer influence on zakat compliance are significant, although its interaction with zakat system fairness is not. Practical implications The results should be helpful for policymakers and responsible institutions in Muslim communities to understand how different levels of trust can play an important role in Zakat payers’ compliance to boost or erode zakat funds. This research also contributes important inferences for managers about the necessity of inculcating religious and moral values among zakat payers, formulating a fair system and embarking on sensitization programs in society. Originality/value The research enriches the scanty literature by validating a viable compliance model drawing on the socio-economic theory of regulatory compliance. Moreover, the model integrates the moderating role of trust in socio-economic perspectives of zakat compliance.