Factors Influencing Individual Participation in Zakat contribution: An Exploratory Investigation

Abstract

The current paper is aimed to explore the factors that drive an individual towards giving away his or her own Zakat funds. The interview method is adopted for collection of data from 60 respondents in Peshawar. The respondents are selected on the basis of snowball sampling technique. The analysis technique used in this study is the principal component analysis with varimax rotation method. The findings of the study explored that Altruism, self-satisfaction and fear of Allah are the three main factors. These factors explain 65% variance in Zakat payment intentions. Among these items, the highest loading items are the hope to receive reward in heaven and the feeling of right of poor people in wealth of rich people. Regarding the mean composite scores altruism has the highest composite score. The findings of this study are in line with the previous literature. The study recommends that the moral obligations, sense of responsibility, the feelings of happiness and satisfaction as well as the level of faith (Iman) as the key factors that influence an individual while paying Zakat. Further study is required on large scale from other parts of the country. Similarly, the strength of association between these identified and other determinants of Zakat payment intention are yet to be tested.