Zakat: changing the framework of giving

Purpose This paper aims to show that zakat solves the collective action problem by changing framework of giving. An additional purpose this is an attempt fill a critical gap in Islamic economics literature. concerns nature and role effectively delivering aid those need while mitigating potential for free riding. There also general current literature on issues charity have not received same attention as focus remained mostly money, banking interest usury. The provide refocus. Design/methodology/approach attempts build argument how can function unique solution free-rider voluntary charity. author’s based precise theoretical framework, namely “free-rider problem,” problem. author uses game theory reputation lead cooperation repeated game. example from Pakistan be disciplinarian collection organizations. Findings Zakat both ordinary coordination between members large group. solved very giving Muslims around globe disappears because rates details levying are centrally created divine revelation. Originality/value presents important topic it addresses one most popular practices Muslim societies, called zakat. It provides examining meaning societies.