Indonesia has the potential for zakat as a tool to reduce and improve poverty and people's welfare. The management of zakat funds certainly has a very vital role in the success of achieving the benefit of the people. This study evaluates the effectiveness of the management of the optimal distribution of zakat funds so that it can significantly contribute to poverty reduction and better welfare. This type of research is library research conducted using existing literature on the Indonesian National Zakat Agency by collecting data through a literature review of books, notes, and research reports from previous studies. Data analysis techniques were carried out using inductive techniques consisting of data collection, data reduction, data presentation, and drawing conclusions. The results of this study indicate: Indonesia's National Zakat Agency has been effective in the management of zakat management, both in planning, organizing, implementing, and supervising.

The research objective is to describe the concept and practice of Islamic philanthropy in Indonesia. Qualitative research methods with a library study approach. Data collection techniques with documentation studies sourced from scientific articles and books. The results of the Pustaka study show: among Indonesian Muslims, philanthropic activities have increased in various sectors, both in the political bureaucracy, law, and social and cultural institutions of society. This can be observed from the increasing efforts to raise public funds originating from zakat and alms. The concept and practice of Islamic philanthropy in the contribution of philanthropic activities to improve the economy and the welfare of society reveal that philanthropic activities in Indonesia have been implemented in various forms such as zakat, infaq, and alms and its practice in the Baitul Mal wat Tamwil company and the National Amil Zakat Agency.