Analysis of BAZNAS's Efficiency in Banten

Abstract

Poverty and inequality in income distribution are classic economic issues faced by all regions, including Banten. In addition, Islamic institutions offer an instrument for distributing wealth through Islamic philanthropy, namely BAZNAS. In the operational activities of BAZNAS, assessment is needed for the evaluation and accountability of BAZNAS internally and externally in achieving the goal of overcoming problems and equitable income distribution. The research method used is a quantitative approach through the DEA (Data Envelopment Analysis), a non-parametric calculation method to measure an institution's efficiency level. The input variables used are total assets and operational costs, and the output variables used are the amounts of collection and distribution of ZIS funds. According to the findings of this study, the BAZNAS of Banten Province was efficient in 2019 and 2020. In 2020, the BAZNAS of South Tangerang City and the BAZNAS of Serang Regency were efficient. In 2018, the Tangerang City BAZNAS did not yet achieve efficiency. Specifically for BAZNAS of Cilegon for the period of 2016-2016. 2020 failed to attain efficiency and continues to deteriorate annually. Three factors caused the inefficiency at BAZNAS in Banten Province between 2016 and 2020: first, the excessive, ineffective, and productive use of assets may have contributed to the institution's poor performance. Second, expenditures on operational costs that deviate from the aim create an increase in expenses. The third issue is that the collection and distribution of ZIS funds have not been optimized.