Enhancing Sustainability through Agricultural Zakāt -Based Philanthropy Movement: A Comprehensive Study on Social Welfare Capital

Abstract

Zakāt on Agriculture, as one aspect of Islamic finance and philanthropy, is crucial in supporting community welfare and promoting sustainable agricultural practices. This research examines the philanthropy movement driven by agricultural zakāt at Desa Mangga in the Langkat Regency, Indonesia. It adopts a qualitative approach, employing a phenomenological study through in-depth interviews. This research involved three key groups as research subjects: 10 amil zakāt (who are responsible for zakāt administration), 15 zakāt payers, and 35 zakāt recipients. The research findings reveal that philanthropic activities involving agricultural zakāt at Desa Mangga can be categorized into consumption-oriented and production-oriented activities. In contrast to the traditional approach of distributing zakāt mainly to relieve financial burdens, Desa Mangga has adopted a more proactive strategy in managing agricultural zakāt funds. The funds are directed towards productive businesses such as palm sugar production, stalls, and farmland management. As achieving complete economic independence continues, the effective allocation of agricultural zakāt funds at Desa Mangga progressively empower recipients to become more economically self-reliant. Nevertheless, it is crucial to highlight that, in practice, the concept of empowerment within zakāt philanthropy at Desa Mangga has yet to reach its full potential. Charitable activities still dominate the distribution of zakāt funds, inadvertently fostering dependency among zakāt recipients.