Australian Journal of Sustainable Business and Society

Volume 1
No. 2
September 2015

AN ANALYSIS RELATIONSHIP BETWEEN SOCIAL

EXCLUSION AND NON-RECIPIENTS ASNAF OF ZAKAT
FUND (NRAZF)
Azhana Othman
Universiti Teknologi MARA, Malaysia
Abdul Halim Mohd Noor
Universiti Teknologi MARA, Malaysia
Arifin Md Salleh
Universiti Teknologi MARA, Malaysia
ABSTRACT
Zakat is an obligatory tax levied by Allah to the Muslim community as one of the tools to help the poor. Zakat aids provide
opportunities to uplift themselves to higher socioeconomic levels. The portions received by the asnaf will able them to fulfill
their basic needs and in turn the transaction will generate economic activities that will benefit them. On the other hand, the
non-recipients asnaf are left out from these opportunities and are being poor, marginalized and social exclude. The monetary
measures such as Poverty Line Income (PLI) and had al kifayah are the tools practiced by zakat institutions to determine the
poor households. However, economists have argued that the current monetary poverty measurement is not able to reflect the
multidimensional nature of poverty. Thus, there is a need to look at poverty from multidimensional perspective such as
social exclusion. This study intends to explore the issues by understanding the determinants of NRAZF. The factors outlined
in the paper are analyzed using the theoretical framework of social exclusion. Conclusions from the literature are drawn that
states that being social exclude either individual, socio-cultural, economic-structural or institutional exclusion plays a key
role in determine the NRAZF.
JEL Classification: J10, I39
Keywords: zakat; non-recipients asnaf of zakat fund (NRAZF); poverty; social exclusion
Corresponding Authors Email Address: azhana395@melaka.uitm.edu.my

INTRODUCTION
Zakat institutions are responsible as a medium to redistribute the wealth from the rich to the poor and to ensure
the rightful zakat recipients or the asnaf. There are eight categories of those entitled to as zakat recipients as
mentioned in the holy Quran(At Tawbah:60): Faqir (the needy), Miskin (the poor), Amil ( those in charge of
administer, collection and distribution of zakat fund), Mualaf (the new Muslim or converts) ,Al Riqab (those
who are freeing themselves from bondage), Al Gharimin (those who are in debt), Fisabilillah (those who serve
the cause of Islam) and Ibn Sabil (the wayfarer). Zakat funds must distributed to the eight asnaf with priorities
to the asnaf Muqaddam that are the needy (fakir), poor (miskin), zakat worker (amil) and new Muslim (mualaf)
(At Tawbah: 60).
In practice, zakat institutions use the monetary approach in measuring poverty through the had al
kifayah (necessities of a household) or the Poverty Line Income (PLI) method. Had al-kifayah is defined as
minimal basic necessities for one well-being. Each state has different calculation on had al-kifayah for different
households depending on different variables and prices according to location and area and also the number of
household members and age group in the households. On the other hand, PLI is determined by Economic
Planning Unit (EPU) based on absolute poverty. Both approaches identify poverty as a shortfall in consumption
(had al-kifayah) or income (PLI). A person is considered to be poor if his/her income is below a threshold
income. The monetary approach was origin by Booth in 1887 and Rowantree in 1902 (Lu, 2012).
Other than this monetary approach, another measurement of poverty is the non-monetary approach
focusing on social exclusion. If the monetary approach is more individualistic where it only measures the
households income, the social exclusion lends to study the structural characteristics of society and groups
which can generate and characterize exclusion. Social exclusion is defines as a process through which individual
or groups are wholly or partially excluded from full participation in the society in which they live (Burchardt, Le
Grand & Piachaud, 2002).

41


The most important challenge of the zakat institutions is how to distribute zakat fund to the right target.
Thus, in the effort to enhance zakat distribution, there are two challenge facing by the zakat institutions; firstly,
to determine the level of minimum standard of living for the poor and needy either using had al kifayah or the
PLI (poverty line index) for those poor and needy who come and ask for zakat and secondly, to identify the poor
and needy who did not come and ask for zakat (Yusof Qardhawi, 2009).
In surah Az-Zaariyat: 19 mentioned the right of the poor on zakat, whether they request for zakat aid or
not. Those poor people have the right for zakat but they did not receive the zakat fund. This will be the most
public concern especially zakat payees regarding how zakat is distributed to the rightful asnaf. Several lacking
issues of zakat distribution throughout Malaysia were found in the literature especially in the problem of
identifying the rightful asnaf (Hairunnizam et.al, 2009), (Mohd Syukri, 2006) and there was evidence that some
asnaf being denied their right to zakat (Abd Halim et.al, 2010). The issue arise is why the excluded asnaf of
zakat fund feel they are poor but their application being rejected by zakat institutions? There are also those who
are eligible to receive zakat but ignore or refuse it. Are the reasons were due to some drawback in the monetary
measurement? These point out that the multidimensional of poverty emphasis a need of a new variable for
poverty measurement consisting of social exclusion approach. Although, there are abundance researches on
monetary poverty, the research on non-monetary focusing on social exclusion in Malaysia is still dearth.
This conceptual paper is intended to identify the determinants of NRAZF using social exclusion
approach. Therefore, the inquiry questions are (1) What are the determinants of NRAZF? And (2) Can status of
zakat recipients (i.e. applied or not apply for zakat) be correctly predicted from individual, social-cultural,
economic-structural and institutional social exclusion?
Thus far, none of these studies utilize the empirical study on the eligible asnaf who are voluntary or
involuntary excluded from the zakat fund and its determinants on why they are being rejected or
marginalized/social exclude from receiving the zakat fund. In the Malaysian context, studies on
marginalization/social exclude is focused heavily amongst Orang Asli (Fauzi, 2012), iinequality among ethnic
and regional (Jomo K. S. & Wee C.H.H, 2004), unfair inequality and discrimination in society (Malakar &
Senapati, 2010), discrimination in education (Stewart, 2008) rather than social exclusion. Given this research
gap, this study proposes the social exclusion approach in understanding the determinants of NRAZF on the
determinants that led them being excluded from zakat fund.This study also will examine those determinants and
make recommendations for future research.
THEORETICAL OVERVIEW: SOCIAL EXCLUSION
An individual is socially excluded if (a) he or she is geographically resident in a society, (b) he or she cannot
participate in the normal activities of citizens in that society, and (c) he or she would like to so participate, but is
prevented from doing so by factors beyond his or her control (Burchardt, Le Grand and Piachaud, 1999, p.229).
Marginalized and social exclusion are frequently used synonymously and some consider social
exclusion and marginalization to be the same phenomenon (Kagan & Burton, 2010), others see marginalization
as one possible consequences of social exclusion (K.M Ziayauddin, 2009) and (Kagan & Burton, 2010). Hence,
in this study, the concept of social exclusion is used to describe the NRAZF.
Social exclusion need not relate solely to the process of being socially excluded (dynamic), but also
denote the condition of being socially excluded (static) (Gijsbers & Vrooman, 2007). Social exclusion involves
different dimensions and each includes different indicators to measure each dimensions.
Gijsbers & Vrooman (2007) denote two main aspects of social exclusion as 1) economic-structural
exclusion and 2) social-cultural exclusion. The economic-structural exclusion is divided into two aspects that
are: a material (income and goods) and a non-material (social right). While, the social-cultural exclusion are
divided into two aspects: social integration (social relations and network) and cultural integration (values and
norms). The dimensions are illustrated in table 1:
TABLE 1. DIMENSIONS OF SOCIAL EXCLUSION
A. Economic-structural exclusion (distributional
dimension)
1. Material deprivation
Deficiencies in relation to basic needs and material
goods: lifestyle deprivation; problematic debts;
payment arrears
2.Inadequate access to government and semigovernment provisions(social rights):waiting lists,
financial impediments and other obstacles to: health

B. Socio-cultural exclusion (relation dimension)

3.Insufficient social integration
A lack of participation in formal and informal social
networks ,including leisure activities; inadequate social
support; social isolation
4.Insufficient cultural integration
A lack of compliance with core norms and values
associated with active social citizenship, indicated by a

42


care, education, housing, legal aid, social services,
debt assistance, employment agencies, social
security, commercial service (banking and
insurance);insufficient safety

weak work ethic, abuse of social security system,

delinquent behavior, deviating views on the rights and
duties of men and women, no involvement in the local
neighborhood and society at large

Source: Gijsbers & Vrooman (2007, p17)

Another dimension, Institutional exclusion implicates the poor access to private institution such as
banks or insurance company that the poor can turn for help to reduce uncertainties of life (Kronauer, 1997;
Bhnke, 2001). Atkinson (2000) and Farrington (2011) mentioned that institutional as a social system from
which people are excluded such as form legal system, education, health, political rights, justice and bureaucracy.
Only Piachaud (1997) stressed the importance of institutional success especially welfare institution in
influencing poverty and social exclusion. From the reviews of literature, general pattern of social exclusions
dimensions are extracted, it is concluded that individual, economic-structural, social-cultural and institutional
have impact on people being excluded as shown in table 1:
TABLE 2. SUMMARY ON ASPECTS OF SOCIAL EXCLUSION DIMENSIONS:

Dimensions of social
exclusion
Individual

Characteristics

Sources

Physical health, education, disability

Economic-structural

Material(income and goods) & Non

material (social rights)

Burchardt et.al(1999); Levitas et.al

(2007)
Jehoel-Gjisbers & Vrooman
(2007); Bayram at.al (2011)
Levitas et.al (2007)

Social-cultural

Social integration (relations and

networks) & Cultural integration(values
and norms)
Rules, policies, processes

Institutional

Jehoel-Gjisbers & Vrooman

(2007); Bayram at.al (2011);
Levitas et.al (2007)
Beall & Piron (2005); Atkinson
(2000); Farrington (2011)

Sources: Burchardt et.al (1999); Levitas et.al (2007); Jehoel-Gjisbers & Vrooman (2007); Bayram at.al (2011); Beall &
Piron (2005); Atkinson (2000); Farrington (2011)

Thus, adding the institutional exclusion in determinants of social exclusion would help to ensure the
better understanding of the problem of NRAZF in terms of zakat institution. Hence, the above idea would
become the central theme of the study. In relevance to this study, this four dimensions of social exclusion will
be adopted as a theoretical framework to analyze the determinants of NRAZF on why are they are rejected or
marginalized (excluded) from zakat fund. In brief, this study highlights four determinants of NRAZF are based
on individual exclusion, economic-structural exclusion, social-cultural exclusion or institutional exclusion as
shown by figure 1.

43


FIGURE 1. DETERMINANTS AND DIMENSIONS OF SOCIAL EXCLUSION

Income
Social

rights
Rules
Policies
Process
Sources: Burchardt et.al (1999); Levitas et.al (2007); Jehoel-Gjisbers & Vrooman (2007); Bayram at.al (2011); Beall &
Piron (2005); Atkinson (2000); Farrington (2011)

CASE STUDY: NON RECIPIENTS ASNAF OF ZAKAT FUND

Who are the NRAZF? It refers to those eligible for zakat but their applications were rejected by the zakat
institution and those who are poor and needy but left out or marginalized/social exclude from receiving zakat
fund. The two categories of NRAZF in this research are namely, 1) applied for zakat but had been rejected and
2) did not apply for zakat. The reasons on why NRAZF did not apply for zakat are then categorized into two
aspects, either they are naive or ignorant of the availability of zakat fund or they refuse to request or accept
zakat fund for personal reasons (Azhana & Abd Halim, 2013a; 2013b).
The main aspects of NRAZF are:
1) The rejected zakat applicants: those who had applied for zakat fund but were being rejected
2) The determinants on why the applicants had been unsuccessful or rejected should be analyzed to make
sure that the determinants are of the economic or had kifayah criteria rather than administrative criteria;
such as place of origin, length of occupant in one place and others.
3) The naive or ignorant: those who did not know how to apply for zakat fund
4) The second category of the excluded asnaf are those who are left out from the available source to get
help and also relate to the effectiveness of the promotion and delivery of information to the public and
the effectiveness of the zakat staff in searching for potential zakat recipients.
5) The refusers: those who refused to apply for zakat fund based on of their own reasons.
The third category of asnaf that excluded from zakat fund involved those who choose not to apply for zakat
fund or any help. Is it due to the zakat fund was not sufficient to fulfil the poor households basic need? Or is it
due to the personal reasons to this ignorance?

44


FIGURE 2. SUMMARY ON CATEGORY OF NRAZF

Source: Azhana & Abd Halim (2013)

The study of Non-Recipients Asnaf of Zakat Funds (NRAZF) seeks to provide a clear picture of the
determinants on why they are marginalized or social excluded. Exclusion of these groups from zakat fund
compromised the objective of zakat institution especially zakat distribution and jeopardized poverty alleviation
measures and development programs. Identification of the determinants contributes to further enhancement of
institutional zakat management in both zakat distribution as well as zakat collection.
Income generation from monetary approach can help to alleviate poverty but often only in the short
term. A short-term, temporary or seasonal alleviation poverty strategy includes generating income generation,
providing safety nets and easy access to credit. While, a long-term poverty alleviation strategies require changes
in policies of education, health and social security (Lu, 2012). For better understanding the poor, there is a need
to shift from poverty reduction strategies solely focused on income generation activities to strategies
encompassing a shift in poverty analysis to include its human, economic, sociological and institutional
dimensions (Burchardt et.al,1999; Levitas et.al,2007; Jehoel-Gjisbers & Vrooman,2007; Bayram at.al,2011;
Beall & Piron,2005; Atkinson,2000 and Farrington,2011.
CONCLUSION
The findings led to a conclusion about the determinants of NRAZF with the four dimensions of social exclusion
perspective and make recommendations for future research. It concern on whether individual or a group of
individuals have voluntarily chosen to exclude themselves? (individual exclusion) or on the other hand, is it they
are socially excluded for reasons beyond their control? (economic-structural exclusion, social-cultural exclusion
or institutional exclusion).
* Acknowledgement
The authors would like to extend our acknowledgement for the support given by Higher Education Ministry of Malaysia
under Exploratory Research Grant Scheme (ERGS) and University Technology MARA for sponsoring us with a grant that
make us capable of accomplishing the research paper.

REFERENCES
Abd Halim Mohd Noor, Rawi Nordin & M Sulaiman Zahlan, Zakat Collection-Distribution Gap: A Measure of
Effectiveness in The Management of Zakat, 2011, Proceeding in International Zakat Conference,
World Zakat Forum, Bogor, Indonesia.19-21 July.
Atkinson, R., Combating Social Exclusion in Europe: The New Urban Policy Challenge, Urban Studies,
2000, vol.37, pp.1037-1055.
Azhana Othman & Abd Halim Mohd Noor ,A Preliminary Study on Minimizing Asnaf Exclusion of Zakat
Fund, 2013a ,Proceeding in First International Conference on Islamic Finance Muamalat and
Financial Criminology (IFMFC),Cagayan De Oror City, Philippines,23-24 October.
Azhana Othman, Abd Halim Mohd Noor & Arifin Md Salleh, Exclusion Error in Poverty Targeting Among
Potential Zakat Recipients: A Preliminary Study 2013b in Islamic Philanthropy for Ummah
Excellence. Pages 267-276. ISBN 978-983-44948-7-2.
Azman Abd Rahman, Mohammad Alias & Syed Mohd Najib Syed Omar, Zakat Institution in Malaysia:
Problems and Issues, GJAT, 2012, vol.2, no.1, pp. 35-41.

45


Beall, J. & Piron, L.,2005, DFIF Social Exclusion Review, The London School of Economics and Political
Science, Viewed 24 December 2013 from www.odi.org.uk/publications/1552-dfid-social-exclusionreview-2005.
Bhnke, P., Nothing left to lose? Poverty and Social Exclusion in Comparison. Empirical evidence on Germany
(No.
FS
III
01-402),
2001,
Viewed
1
Mac
2014,
www.econstor.eu/obitstream/10419/50216/1/329324748.pdf.
Bradshaw, J., Williams J., Levitas R., Pantazis,C., Patsios,D., Townsend,P., Gordon,D., & Middleton,S., .The
Relationship Between Poverty And Social Exclusion In Britain, 2000, Proceeding paper at the 26th
General Conference of The International Association for Research in Income and Wealth, Cracow,
Poland, 27 August to 2 September.
Burchardt, T., Le Grand, J. and Piachaud, D., Degrees of Exclusion: Developing a Dynamic Multidimensional
Measure in Hills,J., Le Grand,J., & Piachaud,D.Understanding Social Exclusion. New York,2002,
Oxford University Press.
Burchardt, T., Le Grand, J. and Piachaud, D., Social Exclusion in Britain 1991-1995, Social Policy and
Administration, 1999, vol.33, no.3, 227-244.
Farrington, F., Towards a Useful Definiton: Advantages and Criticisms of Social Exclusion, 2011, Viewed 2
January, 2014 from geoview.iag.org.au/index.php/GEOView/article/viewFile/12/13
Gordon, D., Levitas, R., Pantazis, C., Patsios, D., Payne, S. Townsend, P., Adelmen, L, Ashworth, K.,
Middleton, S. & Bradshaw, J., 2000, Poverty and Social Exclusion in Britain. Joseph Rowntree
Foundation. Viewed 22 July, 2013 from eprints.whiterose.ac.uk/73358/1/Document.pdf.
Jehoel-Gijsbers, G. & Vrooman, C., Explaining Social Exclusion: A Theoretical Model tested in the Netherland,
2007, The Netherlands Institute for Social Research/ SCP, TheHague. Viewed 5 August 2013,
fromwww.scp.nl/dsresource?objectid=22210&type=org
Jomo, K. S. and Wee, C. H., Affirmative Action and Exclusion in Malaysia: Ethnic and Regional Inequalities
in a Multicultural Society, 2004, Background Paper for the Human Development Report 2004.
K.M Ziyauddin, Dimensions of Social Exclusion: An Introduction in Dimensions of Social Exclusion:
Ethnographic Explorations, edited by K.M Ziayuddin and Eswarappa Kasi, 2009, Cambridge Scholars
Publishing.ISBN:1-4438-1342-7.
Kagan C.M., Burton M., Marginalization in: G. Nelson and I. Prilleltensky (eds) Community Psychology : In
pursuit of wellness and liberation, 2010, Palgrave Macmillan. pp.313-330. ISBN: 978-0-230219-95-3.
Levitas, R.,Pantazis, C., Fahmy, E., Gordon, D., Lloyd, E. & Patsios, D. ,The Multi-dimensional Analysis of
Social
Exclusion,
2007,Retrieved
12
June,2013
from
www.bris.ac.uk/poverty/downloads/socialexclusion/multidimensional.pdf
Lu, C., Who is Poor? One Question, Many Answers and Their Implications: A Comparison of Alternatives to
the Monetary Approach of Poverty Assessment in Rural Yunnan, China, Q-Squared Working Paper
No. 54, Winter 2012.
Malakar, S.N & Senapati,C., Ethnicity, Religion and Culture based Discrimination A Study of Malaysia. Indian
Institute of Dalit Studies, 2010, Working Paper Series, vol. 4, no. 4, pp. 1-65.
Mohd Fauzi Mohd Harun & Nor Aini Idris, The Quality of Life of Malaysian Aborigines: Measured with a
Weighted Quality of Life Index for Orang Asli. Akademika, 2012, vol.82, no.1, pp. 65-69.
Yusof Al-Qardawi. (2009). A Comparative Study of Zakah, Regulations and Philosophy in The Light of Quran
and Sunnah in Monzer Kahf (translator) .Fiqh Al-Zakah.Vol.11.Scientific Publishing Centre: King
Abdulaziz University, Jeddah, Saudi Arabia.

46