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1. Introduction

Zakat is a compulsory levy on the wealth of the well-off members of Muslim community at a
prescribed rate in order to provide financial assistance to the destitute and needy (Chapra, 2000).

Zakat institution has played an important role in social security and development in Muslim
communities in the past and continued until now. Many Muslim countries such as Malaysia,

Indonesia, Turkey and the Gulf counties have been institutionalised and significantly contributed

towards the countries’ development, especially, social security systems in those countries. In
India, Singapore and some other non-Muslim countries, Zakat institutions have been established

with legal framework in place. These institutions have promoted the wellbeing of the poor and
the needy (Sadeq, 2006).

In Thailand, Zakat is practiced in Muslim communities across the country. However, few studies

have documented this practice and little efforts to establish a more systematic Zakat institution or
system. Hence, Zakat institution might not fully have impact on the lives of the poor and needy

in Thailand where Muslim communities are considered to be the poorest section of the country.
This study is the one of the efforts to document Zakat institution practiced in one of the village in

Satun province in the southern part of the country. This effort should also pave the way for a
Zakat institution model suitable for Thai Muslim communities. In fact, this study should explore

model of Zakat institution practiced in a village and propose the way to improve it with the hope

that Zakat institution may fully benefit those who need financial assistance for poverty reduction,
welfare and social security.

2. Literature Review

Zakat management in various forms are essential for effective management of Zakat fund and the

promotion of welfare in Muslim communities (Md Razak et al., 2013; Ahmad, 2009). The
institutional structure of Zakat in various countries may be different from one country to another.

The chosen institutional structure may be affected by the socio-economic environment of the

country (IRTI, 2014).

In many Muslim countries, Zakat management forms a part of government structure. However,

differences in terms of management activities may occur. In Malaysia and Brunei Darussalam,
Zakat institutions are placed under the Ministry of Religious Affairs where Islamic councils at