This study aims to develop a model that integrates intellectual capital and modern philanthropy to strengthen the performance of zakat institutions in Indonesia and support poverty alleviation in line with Sustainable Development Goal 1.
This research used a qualitative approach, with data collected through in-depth interviews, focus group discussions (FGDs), observations and document analysis. These findings were then examined in relation to grounded theories, including resource-based theory, human capital theory and intellectual capital theory. Data validity was ensured through credibility checks.
The findings show that combining intellectual capital with modern philanthropy can significantly improve the performance and innovation of zakat management institutions while also contributing to poverty reduction. A key driver of this transformation is human capital management, supported by intellectual capital, modern philanthropy and innovation strategies. Through this integrated approach, zakat institutions can move beyond routine charitable distribution that is mainly consumptive in nature and instead focus on empowering beneficiaries (mustahiq), helping them become more self-reliant and better able to escape poverty.
Practically, this study provides zakat management institutions with a strategic framework for improving performance through human resource development, knowledge management and stronger zakat practices. The model can help institutions adopt more innovative, efficient and modern zakat practices.
Socially, improved institutional performance can expand the impact of zakat on poverty alleviation and community development. It also supports the achievement of the Sustainable Development Goals by promoting inclusive growth and social welfare in Indonesia, the world’s largest Muslim-majority country.
The originality of this study lies in its proposed integration model, which brings together intellectual capital and modern philanthropy as a new way to enhance institutional performance, encourage innovation and reduce poverty through zakat management institutions in Indonesia.
