An effective way of preventing poverty in Turkey: Zakat institution

Zakat is a financial obligation that Muslims with nisab amount of income and wealth have to pay by religious necessity. In the verse (Tevbe, 60) the fact that the poor and the needy are among the eight classes of people to whom zakat should be paid is obvious evidence of the poverty-reducing effect of zakat. However, if there is no intermediary institution that facilitates the collection and distribution of zakat, it is not that easy for zakat-payers to calculate their zakat and find the real poor. Besides, direct payment can lead to a relationship of degrading dependence between the rich and the poor. In the case of a zakat institution, which is specialized in calculating zakat, identifying the poor and distributing it, zakat incomes could increase, the real people in need could be identified more healthily, and thus poverty could be alleviated. In the case of a zakat institution, a derogatory dependency relationship does not occur as the institution will fulfill its duties while distributing zakat and payments will be made from the zakat pool. In this study, as the poverty reduction effect of zakat, in Turkey case if 20%, 40% and 60% of Turkey's richest people donated, reduction in the poverty was calculated. Beside this, a survey was carried out for companies operating in Sivas Organized Industrial Zone in order to determine the views of potential zakat-payers on the establishment of zakat institution. From the answers given to the survey, it was found out that company officials did not strongly support the establishment of the zakat institution. From this point of view, it was concluded that there is a need to raise public awareness on zakat.