1.0 BACKGROUND AND ESTABLISHMENT

15 Feb 1994 – Incorporated as a company (Mais Zakat Sdn Bhd – Company Limited) under the Companies Act , being subsidiary and wholly owned by Selangor Islamic Religious Council which core business mainly in collection of zakat .

- Initially, scope given were to organize 2 counters in highly populated district and expended later on covering the whole district in Selangor.

- Originally run by 5 man powers lead by a manager and 4 officers

- Manage to collect RM 15million in 1995 and increase to RM 26 million in 1996

1998 – Based on successful performance, given trust by stake holder in Expansion of Core Business which is Managing Collection and Disbursement of Zakat

2006 – Converted to Lembaga Zakat Selangor under Trustee Act reflects, the image of a Non Profit organization and with bigger role and responsibilities.

- Total staffs of 250 with 9 departments

- Managing transaction fund of RM 400 million ( sourced by RM 200 million collection)

- Increase numbers of zakat payers from 3,000 in 1995 to 135,000 in 2007

- Taking care of 10,000 family of fuqara and masakin and thousands over receipients from 5 other categories.

.

2.0 LAWS AND JURISDICTION

Malaysian constitution defines Islamic affairs under the jurisdictions of state government which supreme power is under the Sultan of the State.

However, the Federal Government support the Islamic practices particularly in zakat by allowing zakat payment to be rebated ( deducted) one to one basis from personal tax. ( Malaysian Tax Act )

All the state government have established an enactment to exercise rules on zakat nevertheless, not a single enforcement yet to be executed till then.

What critical factors that influenced most in the huge collection of zakat ?It is the combination of effort in dakwah, promotions,innovations in sales force and trust by zakat payer due to disbursement of zakat programme.

3.0 ORGANIZATIONAL STRUCTUREStake holder perspective

Your Highness Sultan of Your Highness Sultan of Selangor Selangor

MAIS CORPORATIONMAIS CORPORATIONSDN BHDSDN BHD

INTERNATIONAL ISLAMIC UNIVERSITY INTERNATIONAL ISLAMIC UNIVERSITY COLLEGE OF SELANGOR COLLEGE OF SELANGOR

ISLAMIC RELIGIOUS COUNCIL ISLAMIC RELIGIOUS COUNCIL OF SELANGOR ( MAIS ) OF SELANGOR ( MAIS )

SUBSIDIARIESSUBSIDIARIESSUBSIDIARIESSUBSIDIARIES

3.0 ORGANIZATIONAL STRUCTUREManagement perspective

GENERAL MANAGER GENERAL MANAGER

DEPT. COLLECTION & DAKWAH

BOARD OF TRUSTEES BOARD OF TRUSTEES

GM DEPARTMENT GM DEPARTMENT

DEPT. BRANCH OPERATION

DEPT. DISTRIBUTION DEPT . F & M . DEVELOPMENT

DEPT. OF FINANCE

DEPT. COPT DEVELOPMENT

DEPT . ADMIN & ICT

ZAKAT ACEDEMY OF SELANGOR

DEPUTY GM ( MANAGEMENT)DEPUTY GM ( MANAGEMENT)

TRUSTEES TRUSTEES COMMITTEES COMMITTEES

DEPUTY GM ( OPERATION )DEPUTY GM ( OPERATION )

GM DEPARTMENT GM DEPARTMENT

GENERAL GENERAL MANAGERMANAGER

Legal Advisor Legal AdvisorInternal Audit Internal Audit

Quality and Policy Quality and Policy

Economy Plannning Economy

Plannning

DEPT. OF DAKWAH & COLLECTIONDEPT. OF DAKWAH & COLLECTION

MANAGERMANAGER

ASS. MANAGER ASS. MANAGER

DivisonBusiness Zakat

DivisionDakwah

Division Employer

DivisionAgent & Processing

Unit Dakwah ( Propogate)

Unit Dakwah ( Propogate)

Unit Promotion Unit Promotion

Unit Copt Sec.Unit Copt Sec.

Unit Govn. Unit Govn. Unit

ProspectiveUnit Prospective

Unit ProcessingCollection

Unit ProcessingCollection

Unit CollectionAgent

Unit CollectionAgent

Unit Special Task

Unit Special Task

Unit CoptPayer

Unit CoptPayer

Unit Branch Support

Unit Branch Support

DEPT. BRANCH OPERATION

MANAGER MANAGER

West Territory West Territory

Ass. Manager Ass. Manager

South TerritorySouth Territory East TerritoryEast Territory

2 District

8 branches

2 District

8 branches

3 District

5 Branches

3 District

5 Branches

North TerritoryNorth TerritoryDevision

Fitrah Affairs and FM Data Base

Devision

Fitrah Affairs and FM Data Base 2 District

4 counter

2 District

4 counter

2 District

3 counters

2 District

3 counters

DEPT. F/M DEVELOPMENT

MANAGER MANAGER

Divison Project DevptDivison Project Devpt

Division Economy DevptDivision Economy Devpt

Unit Financing Unit Financing

Unit Economy Project

Unit Economy Project

Unit Entrepreneur Unit Entrepreneur Unit

CommunitySettlement

Unit CommunitySettlement

Unit Community Centre& Welfate House ( Old Folks)

Unit Community Centre& Welfate House ( Old Folks)

DEPT. DISBURSEMENT

MANAGERMANAGER

Ass. ManagerAss. Manager

Devision General Service

Devision Social Devpt

Devision Religious Institution Devpt

Devision Education Devpt

4.0 MECHANISM OF ZAKAT COLLECTION 1. 22 COLLECTION COUNTERS

2. PAYMENT FACILITIES

APPOINTMENT OF 13 ANCHOR BANKS TO RECEIVE ZAKAT PAYMENT AT BANK COUNTERS

ADDITIONAL SERVICE-VIA INTERNET BANKING- VIA PHONE BANKING

SALARY DEDUCTION SCHEME

The most favourite options among zakat payer.Contribute RM 80 million and 90 ,000 payer

4 Local Universities - Scope Zakat on Salary - Introducing policies where 50% of collection

among universities staffs to be disbursed back to university group of qualified receipients.

( An average of RM 100 thousands per month per university )

41 Tax and Audit Firm – Scope Zakat on Business

3. APPOINTMENT OF COLLECTION AGENT

5.0 SALES FORCE

. Staff with focus activity of doing sales & marketing

. Defined market segmentation

. Determined Key Behaviour for Success - How many prospects met - How many core activity done – appointments , briefing sessions for clients. - How many follow up activities - How many close deal of zakat payment

. Performance base on quality and quantitative measurement

- Target oriented culture

- Introducing commision base staffs scheme

- Customer retention programme

-

6.0 PROMOTION

. Promotion trough mass media and electronic - Buying advertisement slot in radio and tv during peak season - Buying slots in newspaper

. Organizing programme with high news value

. Sponsors of Giant billboard and banners

. Schedule Campaign Programme - Distribution of pamphlet broshures house to house, supermarkets, mosques

. Re Branding , re position category of zakat with launching ceremony

6.0 ACHIEVEMENTS IN ZAKAT COLLECTION

RM 1.011 billion

6.1 ZAKAT MAJOR SEGMENT

1. 60 % OF TOTAL COLLECTION DERIVED FROM ZAKAT ON SALARY WITH 90,000 PAYERS FROM THIS SEGMENT ( Was gazetted by Fatwa of Selangor in 1995 )

2. 20% OF TOTAL COLLECTION DERIVED FROM ZAKAT ON BUSINESS AND CORPORATE ENTITY .. 45 PAYERS WORTH RM 50 MILLION PARTICULARLY FROM BIG CONGLOMERATE AND GLC COMPANYS

6.2 ZAKAT POTENTIAL 1. EXISTING PAYER = 135 ,000 INDIVIDUALS SELANGOR TOTAL MUSLIM POPULATION = 2.5 MILLION TARGETED REAL POTENTIAL ZAKAT PAYER = 500,000

2. NEW SEGMENT AMONG MUSLIM YOUTHS - INTRODUCING SCHEME AHLAN

7.0 BREAKTROUGH PERFORMANCE

1. ENFORCEMENT OF ZAKAT PAYMENT TROUGH SALARY DEDUCTION AMONG 70,000 GOVERNMENT SERVANTS.

2. ESTABLISIHING ZAKAT ACCOUNTING STANDARD AND BEING RECOGNIZED BY MALAYSIAN ACCOUNTING STANDARD BOARD .

3. STATE WITH HIGHEST COLLECTION OF ZAKAT IN MALAYSIA .

4. STATE WITH BIGGEST NUMBER OF PAYERS

8.0 CUSTOMER RETENTION PROGRAMME

1. PERSONALIZE SERVICE FOR HIGHLY CLASSIFIED CUSTOMER

2. DISTRIBUTION OF LZS IN HOUSE MEGAZINES TO MAJOR CUSTOMERS

3. FOLLOW UP CALLS FOR RAPPORT

4. EXPERIENCING CUSTOMER WITH ACTIVITY OF DISBURSEMENT DIRECT TO RECIPIENTS

5. ORGANIZING VISITING TRIP TO RECIPIENTS RESIDENTS AND ECONOMY PROJECTS

9.0 FINANCIAL CAPACITY

1. PURELY INTERNAL SOURCE OF FINANCING ( PORTION OF AMIL = 1/8 FROM TOTAL COLLECTION ANNUALLY )

2. MODERATE EXPANSION OF BUSINESS ENTITY WITHIN AFFORDABLE CAPACITY.

3. RESERVED POLICY FOR FUTURE GROWTH ,SURVIVAL AND STAFF BENEFITS REVISED FOR IMPROVEMENT

10. HUMAN CAPITAL - FOCUS

. VARIOUS ACADEMIC BACKGROUND

. ATTRACTIVE SALARY SCHEME TO ATTRACT SKILLED EXECUTIVES

. ATTRACTIVE STAFF BENEFITS RESULT IN FEWEST TURNOVER

. STAFF CARRIER DEVELOPMENT PROGRAMME

. GIVE PRIORITY TO INTELLECTUAL CAPITAL ( IDEAS , EXPERIENCE AND SPECIALISED KNOW HOW )

. ATTRACTIVE REWARD - CONTRACTUAL & PERFORMANCE BONUS - UMRAH PACKAGE FOR 9 YRS SERVICE - HAJ PACKAGE FOR 4 PAC A YEAR FOR SUPPORT STAFF AGE 40+

.STIMULATE KNOWLEDGE CULTURE - PROVIDE EDUCATION LOANS ( CONVERTIBLE ) QARD AL HASAN BASIS. - SPECIAL INCREAMENT - STUDY AND EXAM LEAVE

.

11.0 MANAGEMENT OF ZAKAT DISBURSEMENT – PURPOSE OF DISCLOSURE

-FLOURISHING TRUST AMONG ZAKAT PAYERS HENCE ATTRACTED MORE NEW PAYER EVERY YEAR.

-EVIDENCE OF TRANSPARENT.

-CUSTOMER SATISFACTION.

-VARIOUS PARTICIPATION FROM CONCERNED PUBLIC , NGOS , GOVERNMENT AGENCIES

12. 0 ULTIMATE POLICY

           "Zakat is for the poor, and the needy and those who are employed to administer and collect it, and the new converts, and for those who are in

         bondage, and in debt and service of the cause         of Allah, and for the wayfarers, a duty ordained                 by Allah, and Allah is the All-Knowing, the

                 Wise". AT TAUBAH : 60

THE RECIPIENTS OF ZAKAT

FAKIR

MISKIN

AMIL

MUALLAF

RIQAB

GHARIMIN

FISABILILLAH

IBNU SABIL

The people in debt

The bonds person

The new converts to Islam

Administrator of zakat

The poor

The needy

In the path of Allah

wayfarer

SOCIAL DEVELOPMENT PROGRAMME ECONOMY DEVELOPMENT PROGRAMME EDUCATION DEVELOPMENT

PROGRAMME HUMAN DEVELOPMENT PROGRAMME

13. UMMAH DEVELOPMENT PROGRAMME VIA 13. UMMAH DEVELOPMENT PROGRAMME VIA RECIEPIENTS OF ZAKAT - RECIEPIENTS OF ZAKAT -

POSITIONING OF PROGRAMMEPOSITIONING OF PROGRAMME

14.0 SOCIAL DEVELOPMENT PROGRAMME

SHELTER Aid on Building New Houses / Basic Renovation / House Rental Aid on Inhabitant Residential Fakir Miskin ~ Desa Kasih , Desa Ehsan ( Villages ), Apartments

New Converts ~ Desa Iman, Baitul Hidayah, Desa Mansuriah Womens Shelter Home ~ Baitul Ehsan Golden Age Home ~ Darus-Salamah Infrastructure~ Education Centre, IT Centre, Small Scale Industrial Workshop

Takaful Scheme

LIFE NECESSITY Monthly aid - Foods and Monetary Monetary aid for month of Ramadhan & eid’ Fitri Celebration Cash for Emergencies Medical aid Transportation aid

SOCIAL DEVELOPMENT PROGRAMME

UMMAH WELFARE Aid on Purchasing Hemodialisis Machine Aid on Permanent Medical Treatment Aid on Managing Unclaimed Dead Bodies Aid on Emergency For Victims of Natural Disaster Aid for Wayfarer Aid on Aqidah ( Faith ) Rehabilitation Programme Aid for people in debt ( Life necessity ) includes education & health Aid for Organisation in debt ( Ummah necessity )

BROTHERHOOD & COMMUNITY Islamic Grand Celebration Day ~ Maulidur Rasul, Maal Hijrah, Ramadhan

15.0 EDUCATION DEVELOPMENT PROGRAMME Scholarships

Scholarship for The Poor and Needy Scholarship for University Students ~ Local and Abroad Sholarship for Hufaz Al-Quran Scholarship for Excellent Students Scholarship for Students at Primary & Secondary Islamic Schools

Sponsorhip for Education Necessity School attire (clothes, trousers, socks, shoes) School tools (bag, writing books, stationery) Transportation Expenditure ( bus fare , bicycle) Daily pocket money

Sponsorship for School Fees & Excellence Programme Examination Fees Tuisyen Computer Class Seminar on Preparation for Major Examination

EDUCATION DEVELOPMENT PROGRAMME General Sponsorship for Education

General education aid Assistance for abroad Students Courses and Skills Training Vocational Training

Dakwah & Knowledge Enhancement Programme Consolation for Ustaz & Speakers & Teachers Allowances for Mosque Committee Consolation for Volunteers Counselors Contribution to Dakwah Bodies / NGOs Publication & Printing

College University & Boarding School International Islamic College University of Selangor Secondary Boarding School for Science and Hufaz Boarding Hostel for Primary Students of Fuqara & Masakin

16.0 HUMAN DEVELOPMENT PROGRAMME

Spiritual Development Ibadah Qiraat

Course on Family & Parenting Skill

Neighbourhood and Community Courses ( Desa Kasih / Desa Ehsan)

Youth Development Training

Student Excellence Seminars & Training Camp

Capital Assistance

Capital for Early Business Setup

Capital for Aquaculture activity

Capital for Agriculture activity

Capital for Livestock activity

Special group economy project

Garments workshop

Group Livestock Project

Mawaddah Kraft ( single mother )

Courses / Training for Skills

Entrepreneur

Agriculture/ Livestock/ Grocery

17.0 ECONOMY DEVELOPMENT PROGRAMME17.0 ECONOMY DEVELOPMENT PROGRAMME

LZS PRIORITIZED AGENDA- AGAINST INHERITANCE OF POVERTY

We identify them..Know their needs

We give them better home, better food

..Give attention to the whole family needs

… Concentrate more on their future generation

…. Provide them with total education assistance untill higher institution

…. For those who is competence send them to vocational and develop their entrepreneur skills

Then , we guide them , provide themwith all possible assistance so in the end…They will no longer poor

‘ If you give them fish , they willeat only for a day, but if you teachthem HOW TO FISH , they’ll eat for the restof their days

Controlling Bodies Fatwa Committee of Selangor Board of Trustee Controlling Committee 6 - Committees Qualified and Prominent Members among Board of Trustees

- Mufti , Shariah Scholars, Ex- Accountant General, State Treasury, - Members of Malaysian Audit Board, State Legal Advisor, Ex- President of Industrial Court

Audit Exercise Internal Audit – Financial & Management Internal Quality Auditor – MS ISO 9002 Conformance Quality Auditor External Auditor - Required by Law National Auditor

18.0 CONTROLLING & TRANSPARENCY -Muraqabah principle

19.0 LZS MANAGEMENT BEST PRACTICES

1.0 Guidelines and Conditions for Application of Zakat - More than 130 codes

2.0 Standard Operation procedures - 31 Procedures

3.0 Financial Manuals and Regulations - 15 manuals

For futher informations For futher informations

www.e-zakat.com.mywww.e-zakat.com.my

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