Abstract:
It is crucial for any organization to measure its performance regardless whether it is a
profit or a non-profit organization. Although a non-profit organization gets less
pressure from its management board to show its value to the stakeholders, there is
still a need to demonstrate the extent to which it is achieving its mission. Thus, it is
also crucial for zakat institutions, as a non-profit institution to use performance
measurement in order to have control over its performance and to focus its work
towards achieving its goals and mission. In fact, the huge responsibility holds by
zakat institutions in their religious activities of managing zakat collection adds to the
pressure in providing sufficient information to the stakeholders. Thus, the first
objective of this study is to investigate the adequacy of transparent reporting by
zakat institutions.