Implementation of Governance, Community Participation, and Social Impact on BAZNAS CSR Programs in North Sumatra

Abstract

Poverty remains one of the major challenges in Indonesia, including in North Sumatra Province, which has a large Muslim population. Poverty alleviation efforts are not solely the responsibility of the government but also involve the business sector and religious institutions through mechanisms such as Corporate Social Responsibility (CSR) and zakat. This study aims to analyze the implementation of governance, community participation, and social impact of zakat-based CSR programs managed by BAZNAS (National Zakat Agency) of North Sumatra Province. The research employed a qualitative descriptive approach with stages consisting of problem identification, literature review, data collection, data analysis, validation, and evaluation. The findings reveal that good governance emphasizing transparency, accountability, and effectiveness plays a crucial role in strengthening institutional legitimacy. Strong governance encourages broader community participation, both from muzakki (zakat payers) who channel their zakat through BAZNAS and mustahik (zakat recipients) who actively engage in empowerment programs. Such participation enhances program effectiveness, particularly in productive initiatives such as Sumut Makmur, which supports mustahik in developing micro-enterprises and increasing household income. The combination of sound governance and active community participation ultimately produces tangible social impacts, although at the macro level, poverty rates in North Sumatra remain fluctuating, as indicated by BPS (Central Statistics Agency) data. This study concludes that integrating CSR and zakat through BAZNAS has the potential to serve as an effective and sustainable strategy for poverty alleviation at the regional level.