Transforming Zakat into a Community-Owned Fund: Lessons from the Jeebika Project

This paper presents the Jeebika model, an innovative Zakat management system designed for sustainable poverty alleviation through a community-centric approach. Moving beyond conventional one-off disbursements, the Jeebika model establishes a collective fund for eligible beneficiaries. This fund, held in a bank account with beneficiaries serving as signatories, nurtures a unique sense of ownership and accountability. The project’s key feature is a three-year fund accumulation period, allowing members to access portions as an interest-free loan (qard hasan) to launch or expand business ventures. This mechanism effectively transforms static Zakat capital into dynamic, income-generating assets, enabling beneficiaries to transition from dependency to self-sufficiency. A mixed-methods research design was used to assess the system's socio-economic impact, utilizing quantitative data from 177 survey respondents and qualitative insights from 30 focus group participants and 10 key informant interviews. Findings demonstrate significant improvements in beneficiaries’ income levels (rising from 9,569 BDT to 17,010 BDT), food security, housing conditions, and access to healthcare and education. The project’s emphasis on financial literacy, skills development (e.g., in sewing, cattle rearing, and electronics repair), and life skills education cultivated a savings mindset and enhanced entrepreneurial
potential. By integrating interest-free financial aid with comprehensive training and health services, the Jeebika project effectively breaks the cycle of poverty and protects beneficiaries from the perils of debt traps. The results indicate that the Jeebika approach is a powerful, replicable model for sustainable development. Its success is rooted in its community-driven governance, its focus on productive investments, and its holistic support system. This system not only fulfills the religious obligation of Zakat but also maximizes its socio- economic potential. We conclude with recommendations for scaling this framework, emphasizing the need for extended training, enhanced monitoring, and strategic partnerships to ensure its widespread adoption.