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Osama Adnan

Osama Adnan

Zakat Management of Lembaga Zakat Selangor – ISF Case Study 2

Zakat. For many, it’s known simply as a religious obligation—a yearly payment, a good deed, a way to cleanse wealth. But in Selangor, zakat is far more than a transaction.

Here, zakat is a catalyst for change. And at the heart of it is an institution that has quietly but powerfully transformed thousands of lives: Lembaga Zakat Selangor (LZS).

Let’s take you behind the scenes of how LZS is managing zakat with purpose, strategy, and heart—and why one of its most impressive efforts is turning everyday people into entrepreneurs.

More Than Just a Collection Center

Since its establishment in 1994 under the Majlis Agama Islam Selangor (MAIS), LZS has grown into one of the most advanced zakat management bodies in Malaysia. They’re not just collecting zakat—they’re engineering a system that ensures every ringgit makes a difference.

In 2023 alone, LZS collected over RM1.1 billion in zakat. But what’s more impressive is how they used it. Instead of simple handouts, LZS designed five high-impact distribution sectors, each targeting a different angle of poverty and social development:

  1. Social Development – Meeting urgent needs like food, medical aid, housing, and disaster relief.
  2. Education Development – Providing scholarships, school supplies, and teacher salaries.
  3. Economic Development – Supporting asnaf with capital, skills, and tools to start businesses.
  4. Human Development – Nurturing confidence, faith, and soft skills through training and mentorship.
  5. Religious Institution Support – Upgrading mosques, Islamic schools, and transport services.

All these programs work together like pieces of a well-crafted puzzle. But if there’s one piece that truly showcases the power of smart zakat management, it’s this one:

The Star of the Show: Economic Development

Imagine this: You’re a single mother. Your husband is ill, your children need food, school fees are piling up—and you have no income.

This was the reality for Fatimah Umar, a woman who turned to LZS not just for help, but for a way out. What she received wasn’t just financial aid. It was a plan.

Through LZS’s Economic Development Program, Fatimah received capital to start a small food business, along with training in budgeting, marketing, and customer service. Fast forward to today, she’s running her business confidently, feeding her family with pride, and no longer depends on zakat.

That’s the magic of this program.

In 2023, LZS invested over RM13.9 million into asnaf entrepreneurs like Fatimah. This went into:

  • Business capital for small shops, food stalls, tailoring, and services
  • Agricultural and fisheries support
  • Skills training and business coaching
  • Equipment and tools needed to start up

But what makes this initiative stand out isn’t just the financial support—it’s the philosophy behind it.

LZS believes that zakat shouldn’t be a life sentence of dependency. Instead, it should be a bridge—from struggle to sustainability, from hardship to hope.

The Economic Development Program empowers asnaf to stand on their own, generate income, and even reach a point where they become zakat payers themselves.

From Asnaf to Doctor: Another Kind of Success

Let’s rewind to 2008. A teenage girl named Siti Nor Raha had just lost her father. Her family was struggling, but she had a dream—to become a doctor.

With help from LZS, she received financial support for her studies, from high school to medical school. Today, she’s Dr. Siti Nor Raha, a proud owner of a clinic in Sepang.

That’s the beauty of a well-managed zakat system. It doesn’t just treat the symptoms—it cures the root problem.


Why This Works: Strategy + Heart

LZS doesn’t operate on guesswork. Their zakat management is built on transparency, data, and governance. Every sen is accounted for, with regular audits by the National Audit Department and Deloitte. Over 97% of transactions are cashless, making tracking and reporting seamless.

They’re also ISO-certified in both Quality Management (ISO 9001:2015) and Anti-Bribery Management (ISO 37001:2016). In short: they’re serious about trust.

But beneath all the systems and standards lies a deeper motivation—compassion. A real desire to see people grow, heal, and rise.

The Bigger Picture: A Zakat Ecosystem in Action

LZS doesn’t stop at individual success stories. Their long-term goal is bold: to reach 157,000 asnaf families by 2030, and to inspire 1.47 million Muslims in Selangor to fulfill their zakat duties.

To do this, they’re expanding digital platforms, building partnerships with businesses, and innovating zakat-based programs in areas like tech, agriculture, and social enterprise.

Final Thoughts: What Zakat Should Be

Zakat isn’t meant to be a bandage. It’s meant to be a seed—something that grows, flourishes, and bears fruit for generations.

Lembaga Zakat Selangor understands this. And they’re proving, year after year, that when zakat is managed wisely, it can do more than just help the poor.

It can change lives. Build futures. And turn charity into legacy.

So the next time you pay your zakat, think of Fatimah. Think of Dr. Siti. Think of the thousands of stories waiting to be written—because of one good deed, managed the right way.

Check this to learn more about that.

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