Research on Humanities and Social Sciences www.iiste.org ISSN 2224-5766 (Paper) ISSN 2225-0484 (Online) Vol.11, No.14, 2021 25 Implications of Zakat Management on Improving the Welfare of The Poor (Case Study on Indonesian National Zakat Agency (BAZNAS) Gorontalo City) Hamdan Ladiku 1* Nur Mohamad Kasim 2 Waliko 3 1.State Islamic Institute (IAIN) Sultan Amai, Gorontalo, Indonesia 2.Universitas Negeri Gorontalo, Indonesia 3.State Islamic University (UIN) Prof Saifuddin Zuhri, Purwokerto, Indonesia Abstract Poverty is still a problem in Indonesia. Not a few of the Indonesian people are still living below a decent standard of living. In everyday reality, there are still often homeless people and people who cannot meet their basic needs. Poverty becomes a big problem because it impacts the difficulty of accessing education, increasing criminality, and others. A high poverty rate is a form of economic equality. One of the efforts that can be made to create economic equality is through zakat. This study aims to uncover the implications of zakat management at the National Zakat Agency (BAZNAS) Gorontalo city in improving the welfare of the poor. The main problem is described that zakat is a very strategic Islamic Law in alleviating poverty and improving the welfare of the poor. This research is a field study with qualitative descriptive analysis. The approach used is a multidisciplinary approach, namely normative juridical approach, philosophical approach, theological and historical socio approach. The methods used are observation, interview, survey, and documentation. Furthermore, the data obtained is analyzed and displayed deductively and comparatively. The results showed that the implications of zakat management at the National Zakat Agency (BAZNAS) Gorontalo city in improving the welfare of the poor are seen in various innovations rolled out programs that are oriented towards improving the welfare of the poor. Innovation of the program in the form of empowerment of the poor through the utilization of productive zakat distribution, distribution of consumptive zakat, the synergy of zakat management with professional financial institutions, caring for disaster victims, Construction of Livable Houses (MAHAYANI), scholarships for outstanding children and the amaliah ramadhan movement. Keywords: zakat, welfare, the poor DOI: 10.7176/RHSS/11-14-04 Publication date:July 31 st 2021 1. Introduction Based on poverty data, the poverty rate in Indonesia is still very high. The number of poverties in 2012 amounted to 28,590.2 million people and decreased in 2013 to 28,553.9 million people. In 2014 there was also a decrease in the number of poor people to 27,727.8 million people, but in 2015 increased. Therefore, there need to be instruments to reduce the amount of poverty. One of the instruments that are believed to reduce poverty is the zakat. (Mubarokah, 2017) The process of receiving zakat collected through the system and management of professional zakat management, trust, and transparent in addition to being directed towards consumptive assistance for the Mustahik, is also a potential source to be used for financing productive businesses as part of a profound endeavor to improve the welfare of the poor. Historical records show that in the era of companions, the time of the Ummayah, and Abbasids, riel proves that the people's economy grew so rapidly when the potential of zakat of the people was maximized massively. During the leadership of Umar bin Abdul Aziz in a relatively short period of about two years and six months, there were no more groups of poor community requesters because all Muzakki (compulsory zakat) were empowered to issue their zakat, and the management of zakat distribution was not only limited to consumptive distribution but directed at empowering zakat in the creation of a productive economy. This innovative movement must be realized today so that poverty, which is the enemy of Muslims, can be overcome. Spiritually, zakat activity is actually like an investment in the hereafter, but the essence of zakat in world affairs has tremendous power to build the people's economy in improving the welfare of the poor. Some of the points of thought that underlie this assumption include: (1) There was high population growth and continued to increase. This demographic implication automatically affects the quantitative totality value of zakat, which will increase, of course, measured in terms of the amount of rupiah collected.; (2) The ability to collect zakat and a large number of zakat givers can be used as an effective instrument to measure the increase in the welfare of Muslims in general and the welfare of the poor in particular.; (3) Empirical indicators are needed to link the increasing level of awareness of the Muslim community in paying