Formulating, Measuring, and Comparing Financial Performance Between National Amil Zakat Agency (BAZNAS) and Amil Zakat Institution (LAZ) in Indonesia

This study aims to improve the financial performance measurement system that uses the financial ratios of the Puskas but is still partial, so it cannot measure performance in aggregate. This research method uses a case study with an analysis of BAZNAS and LAZ located in East Java, Indonesia. Data collection techniques using documentation. Analysis techniques formulate, measure, and compare the financial performance of BAZNAS and LAZ using the Miles and Huberman approach, which consists of; (a) data collection; (b) data reduction; (c) display data, and (d) conclusion drawing/verification. Researchers have formulated a measurement of the financial performance of zakat management organizations, both BAZNAS and LAZ, in the aggregate by entering weights into each Puskas ratio of 36 ratios and classifying financial performance categories into five categories of financial performance in the very bad category with weight one, a bad category with weight two, a sufficient category with weight three, a good category with weight four and excellent category with weight five. Based on the formulation of aggregate financial performance measurement 3rd, BAZNAS Jombang Regency was ranked 4th, and LAZ Nurul Hayat was ranked 5th. Based on the average value of BAZNAS's financial performance in 2020, the average value of BAZNAS' financial performance was higher than the average value of LAZ's financial performance. Modified financial performance measurement formulas can enrich studies in the science of financial statement analysis for non-profit organizations.