The main goal of zakat is to redistribute income in favor of the poor in the community. While the important role of charitable and non-government organization is getting acknowledged recently in the overall economic growth and welfare programs of the economy, Islam had introduced these kinds of institution since its beginning more than 1400 years ago. Obligatory and voluntary charities in the form of zakat and awqaf are important equipment to improve the welfare of the poor. The sticky poverty that won’t change is affecting a large number of the population and there is cases revolves around it which are the productive and unproductive households. The productive households are poor because they cannot use the full potential of their resources due to some barriers. And the barriers are the limited human physical and financial needs for their home income. For the unproductive members of the society such as elderly, sick, widows, and handicapped. The institution of zakat should be able to provide them with timely salary to afford for their basic needs.so if the productive group is treated like the unproductive one and given the timely donation, the problem of poverty will continue to carry on. The potentials of zakat in alleviating poverty is: first, the extent of poverty in an economy is valued in terms of number of …show more content…
Islam shows different positive measures in alleviating poverty with income growth, functional distribution of income and equal opportunity.
Zakat as a tool for poverty alleviation in Islam is settled that it is a forced tool that can be used in eight purposes. And five of them is implied for poverty elimination such as the poor, the needy, the purchaser, the slaves, and the traveler in need. The other ones are official cost of zakat. ‘those whose heart are made to Islam , and in the way of Allah, although eight important for spending zakat revenue has been mentioned in the Quran , there is a general agreement that the first priority in the use of zakat money has to be accorded to the alleviation of poverty through the help of the poor and the