# Distributing Zakatu Kasbil 'Amal as an Alternative to Student Funding, Evidence in Indonesia’s Universities

## TL;DR

This paper explores using income zakat as an alternative funding source for university students in Indonesia and examines its controversies and applications.

## Contribution

The paper introduces the use of zakatu kasbil 'amal as a novel funding mechanism for students, supported by case studies from Indonesian Islamic universities.

## Key findings

- Some Indonesian Islamic universities use income zakat to fund student tuition through auto-debit systems.
- Zakat distribution to students is controversial but can be justified by equating them to one of the asnaf.
- Zakat-based funding positively influences student academic success when used for tuition aid.

## Abstract

The purpose of this paper is to clarify the use of zakat as an alternative funding for students to pay their tuition fees. Apart from that, this paper also explains how zakat collected from
muzakki fixed income known as
zakatu kasbil 'amal, which is known as income zakat and is still controversial in Indonesia.

The study uses a systematic literature review with an inductive approach to find out the theoretical basis of the research questions. The analysis uses a qualitative method that explores significant findings from various literature sources. The findings will combine with the exploration results of several universities in Indonesia that use social funds as a tool for helping students.

The income zakat controversy mediates using the precautionary principle, which ensures that the projected income indeed exceeds the
nisab (1 year) of the income. Some Islamic universities in Indonesia carry out this zakat withdrawal and even use an auto debit system. On the other hand, the distribution of zakat to students is also controversial because zakat is part of worship whose distribution is regulated into nine
asnaf. Nevertheless, students may be equated with one of the
asnaf so that it becomes permissible to be the subject of zakat distribution. Observation findings at Indonesian Islamic universities even show that the results of zakat distribution strongly influence the success of students’ studies, even if only in aid of tuition fees.