Variables Determining Muzaki Loyalty in Paying Zakat, Infaq and Shodaqoh at Zakat Institutions in Indonesia

Abstract

This study aims to find out, test and analyze: (a) the effect of transparency
on muzaki beliefs; (b) the effect of transparency on muzaki loyalty; (c) the
effect of accountability on muzaki’s trust; (d) the effect of accountability
on muzaki loyalty; (e) the effect of trust on muzaki loyalty in paying zakat,
infaq, and almsgiving at the Amil Zakat Institution in Indonesia. This type of
research is explanatory research and using survey method. Data collection
technique used was questionnaire containing written questions answered
by respondents, namely muzaki (payer of zakat, infaq and sadaqah) at amil
zakat institutions. The sampling technique used was purposive sampling,
which set the samples based on criteria. The data analysis technique in
this study used the Partial Least Square (PLS) approach. PLS is a model
of Structural Equation Modeling (SEM) based on components or variants.
The results of the study found that (a) accountability has a significant
positive effect on muzaki’s trust; (b) transparency has a significant positive
effect on muzaki’s trust; (c) accountability has a significant positive effect
on muzaki loyalty; (d) transparency has a significant positive effect on
muzaki loyalty; (e) trust has a significant positive effect on muzaki loyalty
in paying zakat, infaq, and almsgiving at the Amil Zakat Institution
in Indonesia. The results of this study suggest that zakat management
organizations increase the loyalty of donors in paying zakat by increasing
donor’s trust by improving transparency and accountability of audited
financial reports and in accordance with PSAK 109.