The Effect of Public Awareness, Zakat Literacy , and Economic Welfare on Zakat Revenue in Prabumulih City

Abstract

This study examines the influence of public awareness, zakat literacy, and economic welfare on zakat collection in Prabumulih City. As one of the regions in South Sumatra with significant zakat potential, Prabumulih still faces a gap between zakat potential and its realization. This gap is largely driven by limited public understanding of zakat beyond zakat fitrah and the prioritization of household needs over zakat obligations. Therefore, strengthening awareness and literacy is essential for optimizing zakat collection, which in turn plays a vital role in poverty alleviation and socio-economic development. The research aims to analyze the partial and simultaneous effects of public awareness, zakat literacy, and economic welfare on zakat collection. A quantitative approach was employed using primary data collected through questionnaires distributed to 200 respondents consisting of Prabumulih residents and BAZNAS employees. The data were analyzed using multiple regression tests with a significance level of 5%. The findings reveal that public awareness, zakat literacy, and economic welfare each have a significant positive effect on zakat collection. The statistical results show t-values greater than the t-table (4.597, 10.230, and 13.884 respectively, with p-values < 0.05), indicating strong significance. Furthermore, the R-square value of 0.961 suggests that 96.1% of the variation in zakat collection can be explained by the three independent variables, while only 3.9% is attributed to other factors. In conclusion, the study confirms that higher levels of public awareness, zakat literacy, and economic welfare contribute significantly to increased zakat collection. These findings highlight the importance of enhancing education and socialization about zakat to optimize its role in strengthening social welfare and reducing poverty in Prabumulih City.