Can Zakat System Alleviate Rural Poverty in Bangladesh? A Propensity Score Matching Approach

Abstract

The Masjid Council for Community Advancement provided zakat funds (compulsory alms giving) and training facilities to very poor people in Bangladesh through the Hasana project to improve their living standard. The prime objective of the study was to assess the impact of zakat funds on household income and expenditure. Propensity score matching technique was used to assess the impact of the Hasana project on the households who received zakat. This study shows that income and expenditure of the zakat-receiving households increased due to project intervention.

KEYWORDS:

• zakat
• poverty
• PSM
• living standard
• Bangladesh

Notes

1. Zakat is due if one’s holding exceeds the nisab (a minimum holding amount) and if the holding falls below the nisab then the person is exempt from paying zakat.