Performance measurement of Islamic philanthropic institution during pandemic in Indonesia: A balanced scorecard approach

Abstract

This study aims to analyze the performance of Islamic philanthropic institution during the COVID-19 pandemic (2020–2021) by using a balanced scorecard approach. The balanced scorecard assesses a company or institution based on four perspectives: finance, customer, internal business, and growth and learning. For internal business and growth and learning performance perspectives, data were taken from interviews, and the annual report of the institution was taken for a finance perspective. For customer perspectives, the study used a questionnaire distributed to 100 respondents who are regular donors to philanthropic institution. They play an essential role because regardless of the economic conditions that occur, they are still obliged to donate as a form of the obligation of a rich Muslim to pay zakat. The results showed that the customer perspective had the highest value in its performance results compared to the other three perspectives. Islamic philanthropic institution has a high orientation to customers where customer satisfaction is prioritized in improving the performance of zakat institutions, especially during the pandemic. This is in line with the performance of Islamic philanthropic institution, which continues to increase performance during the pandemic. Despite experiencing a decline in zakat funds in the second wave of COVID-19, Islamic philanthropic institution increased infaq and sadaqah funds during the same period. AcknowledgmentThe authors thank the Research and Innovation Institute (LRI), Universitas Muhammadiyah Surakarta, for the enormous financial support in writing this research through the HIT funding scheme with number 01/A.6-II/FAI/1/2022.

Keywords

• Islamic philanthropy
• measurement
• non-profit organization
• performance