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From Monopoly to Social Justice: Muhammadiyah’s Pioneering Role in Zakat Management

by Persyarikatan Muhammadiyah
1 year ago
in Figure
Reading Time: 2 mins read
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From Monopoly to Social Justice: Muhammadiyah’s Pioneering Role in Zakat Management

MUHAMMADIYAH.OR.ID, YOGYAKARTA – In the early 20th century, before Muhammadiyah established a system for managing zakat, the potential of this practice was often misused. Local religious elites often held a monopoly on zakat collection, according to a Muhammadiyah historian Ghifari Yuristiadhi Masyhari Makhasi.

In an interview on Friday (5/4), Ghifari cited historical records from Kiai Sudja’s secretary Djirowongso. Djirowongso’s account described how, in Kauman, zakat fitrah, a mandatory charity given during Ramadan, went directly to Kiai Penghulu, a religious leader, and other religious leaders. “Essentially, the social function of zakat fitrah was non-existent,” explained Ghifari.

Muhammadiyah’s intervention in zakat management marked a turning point. Through its centralized system, the organization ensured zakat was distributed effectively, fulfilling its intended social purpose. In the early days, Muhammadiyah’s Bahagian PKO handled zakat collection and distribution.

This new approach proved successful. By the early 20th century, religion, thanks to Muhammadiyah’s zakat management, had regained its role in alleviating poverty and hunger. The demand for assistance was so high that Muhammadiyah often found themselves short on rice when distributing zakat fitrah. This stark reality highlighted the community’s desperate need for support.

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“Before Muhammadiyah introduced this more appropriate function of religion, zakat was simply for the religious elite,” said Ghifari, who also lectures at the Vocational School of Universitas Gadjah Mada.

Beyond distributing rice to the underprivileged, Muhammadiyah also organized communal meals after Eid prayers. Ghifari believes this tradition may have been the forerunner of the modern halal bi halal gatherings, a time for Muslims to mend relationships after Ramadan.

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