Baznas Micro-Crowdfunding : Risk Management-Based Organizational Design on the Transformation of Baznas Micro Zakat Bank

Bank Zakat Micro (BZM) is a microfinance service initiated by BAZNAS to leverage ZIS-DSKL funds for providing capital to micro business mustahik under the al-Qardh principle, which entails interest-free financing. The main goal of this study is to develop a strategic model that transforms BCM’s operational framework into an independent institution capable of generating organizational revenue while fostering community participation in poverty alleviation. This applied research employs a qualitative descriptive approach to explain, design


INTRODUCTION
The concept of microfinance is familiar to the people of Indonesia.It is recorded that since the colonial era, people's credit institutions have been born to handle the community's financial needs.The presence of zakat institutions and the Sharia economic movement that became popular in the early 1990s gave a new nuance to the world of microfinance.Recent advancements in digital technology and regulatory frameworks have significantly enhanced the scope and efficiency of microfinance services, establishing a new state of the art in how these services are delivered and managed.BAZNAS, as a government institution that manages zakat nationally, seeks to find a zakat-based microfinance model as a form of socio-economic engineering to spread benefits through capital and financial facilities.
Through BAZNAS Decree No. 20 of 2018, BAZNAS Microfinance (BMFi) was born, which is currently changing its name to Bank Zakat BAZNAS, which has microfinance services in each village sector called Bank Zakat Micro (BZM).As of December 2022, 15,756 Mustahik partners have been assisted, covering 3,939 heads of families with a total disbursed fund of Rp. 9,501,233,530 (Aziz, 2023).
In line with the large fund distribution, BZM has received high demand from regional BAZNAS to form BZM in various regions in Indonesia.This scheme needs to be more balanced compared to the capabilities of human resources in the Bank Zakat division and the level of performance loan (Aziz, 2023).Which is low from the mustahik partners.Therefore, the idea of transforming BZM into a micro stock exchange that can generate organizational income by involving community participation in alleviating poverty in their environment has emerged.However, the existing independence plan is hit by BZM's operational scheme, which still uses loan services (Aziz, 2023).Qardh, no income covers the institution's operational needs.Thus, this transformation process needs to be designed using a new strategy related to BZM's organizational design so that the institution can be more flexible in managing its operational processes.
To produce the right strategy proposals, BZM requires a risk-based organizational design to oversee the transformation process and ensure it runs smoothly.BAZNAS risk management documents are still in the formulation stage, so no official guidelines can be used in the organization's BAZNAS Bank Zakat division design.If so, the organizational design that will be made later must be able to accommodate risks during the transformation process and an escort scheme so that the implementation of the independence scheme can run optimally.
Islamic microfinance is a source of capital for economic development that has helped reduce multidimensional poverty by having a moderate but positive impact on the poor's standard of living, health, and education, thereby improving their lives.Low access to financing is often the biggest Pratama, A. R. & Rofi, M. A. (2024).Baznas micro-crowdfunding: risk management-… obstacle in building physical collateral for people with low incomes.Therefore, Sharia microfinance institutions (LKMS) can be seen as an effort to provide financial access to people experiencing poverty who do not have collateral (Rahman et al., 2014;Kassim & Rahman, 2018) Risk management involves risk identification, collection or combination of similar risks, risk assessment, control, and monitoring (Manan & Shafiai, 2015).Risk management in financial institutions intends to improve the Performance and financial sustainability that determines the sustainability of MFIs (Wafi & Muhammad, 2023;Wediawati et al., 2018).Other research has found that business age, risk-taking, innovation, and being proactive impact MFIs (Rahman & Dean, 2013;Yewoh et al., 2021).Furthermore, sustainability is one of the challenges for MFIs.Sustainability in Islamic microfinance will enable the community's economic empowerment in the long term to overcome the wider shortcomings and vulnerabilities of people with low incomes.This shows the importance of risk management for MFIs to improve their efficiency to benefit the wider community (Al-Rahahleh, 2019).
To serve the community, they offer various types of financing with a profit-sharing system for buying and selling, leases, and pure loans (without compensation).In these cases, MFIs are unique in terms of the risks they face (Wulandari et al., 2016).This type of risk is unique because Islamic microfinance institutions share the risk between the MFI and the customer under a profit-sharing contract.Since microfinance institutions' customers come from the poorest segments with low levels of education, Islamic microfinance institutions face high risksnot only credit risk but also risks related to liquidity management, market conditions, transactions, fraud, governance, and reputation (Khan & Astha, 2014).
From the existing phenomenon, it is necessary to mitigate risks under the source and type of risk, as well as the characteristics of Islamic microfinance institutions, so that they can reduce adverse choices in their lending process by conducting a strict selection of prospective borrowers using risk assessment-based assessments (Hernandez & Torero, 2014).Furthermore, it is important to know that borrower selection and portfolio management are ways to mitigate risks in Islamic microfinance institutions (Tamanni, 2019).In addition, other studies state that a risk management work unit is a necessary mechanism for better risk control, and companies with such units tend to perform better than those without them (Ghazieh & Chebana, 2021;Jia & Bradbury, 2021).This research proposes that a risk-based organizational design can effectively enhance the sustainability and independence of BZM, enabling it to operate without central institutional assistance and thereby fostering a self-sustaining, socially responsible community through improved financial mechanisms.This approach aims to transform BZM into a more stable and sustainable institution, capable of operating independently without the need for central institutional assistance, and proposes a new organizational design within Baznas in 2025.This design intends to build a socially conscious community equipped to sustain itself through enhanced capital and financial facilities.

Figure 1. Research Outline
Source: Authors' work (2023) This study uses a qualitative descriptive approach where the research design is prepared to provide a systematic overview of scientific information derived from the research object.(Sanusi, 2014) The object of implementing this research is the division of Bank Zakat BAZNAS, focusing on transforming Bank Zakat Micro (BZM) services.This type of research is applied research that aims to Pratama, A. R. & Rofi, M. A. (2024).Baznas micro-crowdfunding: risk management-… explain, design, and process data into a strategic model that can be implemented.This study's data type is document data using internal and external data sources.
The data collection technique uses a sequential transformative strategy that combines data from one method with another.This study's data collection technique uses an interview with the Head of the Micro Zakat Bank Division under the Central BAZNAS, interviews with Micro Zakat Banks (BZM) in Bedono, Sawojajar, Matraman, and Bojong Rangkas, and document studies in the form of internal and external reports of the institution.Activities in qualitative data analysis are carried out interactively and continuously until complete so that the data is saturated.Data analysis and processing methods use several tools (Sugiyono, 2021) tools as shown in Figure 1.

RESULTS AND DISCUSSION
In response to both macro and micro dynamics and changes, Bank Zakat Mikro (BZM) must continuously refine and develop to address community needs effectively.This ongoing development aims to foster a socially minded society that is independent and sustainable, spreading benefits through capital and financial facilities.Micro Zakat Bankhereinafter referred to as BZMis a microfinance service initiated by BAZNAS to utilize ZIS-DSKL to mustahik micro business actors in the form of capital financing and business development at the village level.BZM financing uses the al-Qardh principle, which does not attract profits in profit sharing, margin, or other similar terms.The increasing demand from the regions to form a new BZM encourages BAZNAS to independently manage several BZMs and manage the institution independently from the funds circulating through business model innovation.This is following the BAZNAS milestone plan, which has prepared a sustainability plan for BZM in five stages, namely the initiation stage, operational stage, strengthening stage, institutionalization stage, and take-off stage.

Analysis of the Independence Scheme
The transformation of BZM is very closely related to the form of institutions and operational schemes that are carried out.As a service that has intersected with thousands of rural communities, the transformation that BZM will carry out must follow applicable regulations to prevent future problems.
In connection with existing regulations, it is necessary to choose a form of legal entity that will be used as a basis by BZM in the future.Four rules are studied as the basis for the form of a legal entity for BZM independence, namely: From the analysis of the four regulations, it was found that the form of legal entity that is most in line with BZM's independence strategy is KSPPS, namely Sharia Savings and Loan and Financing Cooperatives.The reason for choosing KSPPS is based on the unpreparedness of KSPPS management human resources and business systems that are not so rigid as MFIs, so the scheme is flexible if various kinds of cases are encountered in the field.Therefore, BZM is more suitable for direct instruction in the form of KSPPS, noting that the supervision system must be strengthened.
Along with BAZNAS's mission, which is to optimize the distribution and utilization of zakat for poverty alleviation, improvement of community welfare, and moderation of social inequality, it is necessary to formulate the concept of BZM independence by these targets.Crowdfunding is one of the alternative concepts that can encourage Indonesia's economic progress and accelerate the growth and development of MSMEs through easy access to MSMEs ' capital.As a legal entity that will later be in the form of KSPPS, BZM has the potential and advantage of implementing a crowdfunding system.
One of the main goals of KSPPS with this crowdfunding system is to maximize profits for the common benefit of members.This distinguishes cooperative-based crowdfunding from crowdfunding that is rampant in the form of corporations.

Benchmarking Analysis
Based on POJK 57/POJK.04/2020concerning Securities Crowdfunding (SCF), SCF institutions that are members of ALUDI (Indonesian Crowdfunding Services Association) were formed.This SCF institution is the cornerstone in creating the Competitive Landscape as a business analysis method that identifies direct or indirect competitors to help understand their mission, vision, core values, market niche, strengths, and weaknesses.The following is the Competitive Landscape of the KSPPS BAZNAS micro-crowdfunding concept in Appendix 1.

Business Model Canvas
From the analysis of the formulation of the concept above, it is found that the BZM independence scheme needs to be fully invested in crowdfunding in debt and equity crowdfunding or fully donated crowdfunding.BZM as a BAZNAS service is in the middle of the second concept that gave rise to micro-crowdfunding.Micro-Crowdfunding is an alternative scheme for the lower middle class to invest small amounts of money through organizers to micro businesses/enterprises.Micro-Crowdfunding aims to remove common barriers to investing to micro investors, such as minimum balances/deposits and fees per transaction, and improve the accessibility of funding/capital to micro businesses/ventures.This is also an alternative solution for people to use their money productively through affordable investment opportunities with good returns.The role of BZM in this micro-crowdfunding scheme is depicted in the canvas of Appendix 2.

TOWS Matrix
TOWS analysis is used to formulate a strategy to be developed by BAZNAS Micro-Crowdfunding from internal and external factors.Business actors in the micro-crowdfunding scheme are MSMEs in the regions/villages.From a macro point of view, MSMEs have various potentials to become the subject of this micro-crowdfunding concept.The external analysis uses the PESTEL method to examine the potential of MSMEs in the micro-crowdfunding scheme.To transform into a microcrowdfunding scheme, it is also necessary to review the potential of the Performance of services that have been run previously.The internal analysis of BZM uses functional analysis.Then, the internal and external analysis results are compiled in the TOWS Matrix, as seen in Appendix 3.

Strategic Risk Management
Strategy risk management formulates a list of risks used to generate strategy goals that have been mitigated from risks.The risk management results of this strategy will later be useful as a basis for determining strategy measurement using a balanced scorecard.The list of risks of BAZNAS Micro-Crowdfunding is found in Appendix 4.
Then, the results of the risk register in Appendix 4 are processed into risk heat mapping as a form of visualization of the results of risk analysis, which is used to make it easier for BAZNAS to see the potential dangers contained in the Micro-Crowdfunding concept and determine risk control priorities that must be carried out first with the ultimate goal of achieving the predetermined targets.The following is the Risk Map of BAZNAS micro-crowdfunding in Figure 2. The strategic objectives of the risk management process are made into a strategy map, which shows an overview of achieving the goals of the BAZNAS Micro-Crowdfunding concept, as shown in Figure 3.

Balanced Scorecard
From the strategic goals that have been mitigated through risk management and goal depiction through the strategy map, a balanced scorecard is then made as an implementation of the BAZNAS micro-crowdfunding strategy.The following is the balanced scorecard formulated in Appendix 5. BZM's business model is a micro-investment facilitator that conducts channeling agencies between BZM partner business actors and micro-investors from the general public through Sharia Savings, Loans, and Financing Cooperatives (KSPPS).

Business Process
Business processes are a series of procedures related to each other to form a flow that aims to run a business smoothly, efficiently, and effectively.The business processes carried out by BZM can be seen in Figure 4. BZM acts as a hub or liaison between the community as investors and MSMEs needing funds.The information on the business process above is as follows: 1. Member submission is a condition for participating in the micro-crowdfunding scheme consisting of old/new partners of Mustahik MSMEs, and the community is a micro-investor.
2. Furthermore, an assessment of the eligibility of members is carried out with criteria a. MSMEs are assessed based on commitment, feasibility, and business sustainability b.Investors are assessed based on the feasibility of the motive and the ability to invest 3.After becoming a member, MSMEs submit an application for funding needs to BZM.
4. If passed, the application for the needed funds was packaged as fundraising in a crowdfunding scheme.It will be submitted to the Qardh loan scheme if it does not pass.5. KSPPS managers inform fundraising offers after the listing is collected through prospectuses to micro investors 6. Micro Investors interested in investing register as cooperative members and then buy transaction tools in the form of tokens.8.The funds collected during the investment period are channeled to Mustahik MSMEs trained and nurtured to develop their businesses and achieve the target return.MSMEs are obliged to provide business activity reports to investors through BZM. 9.After the period ends, MSMEs provide profit-sharing returns to crowdfunding accounts.
10.The manager is entitled to a 5% fee before the profit share is distributed to investors according to the proportion of Investment as the cost of organizing micro-crowdfunding

Human Resources
In the work process, BZM requires a person to be in charge of the following fields.
1.The division that helps invite the public to become micro investors, as well as selects and regulates these human resources, is called the Networking and member Management division 4. The part that ensures the main system and support system runs by the operational workflow is the Chief Executive Officer or Manager

Operating Scheme for Investors
The following is an overview of BAZNAS's micro-crowdfunding operation scheme for investors as follows: 1. Complete the entire registration procedure 2. Selection of member eligibility based on institutional criteria 3. Socialization from the organizer to micro-investors on investment schemes risks 4. Opening an investment period during a predetermined time 5. Profit-sharing to all stakeholders involved

Operation Scheme for MSMEs
The following is an overview of BAZNAS's micro-crowdfunding operation scheme for partner MSMEs as follows: 1. Complete the entire registration procedure 2. Business Feasibility Selection based on institutional criteria 3. Socialization of MSME registration with communication strategies according to funding needs 4. Fundraising from micro-investors to funds raised at the right time and amount 5. Profit-sharing to all stakeholders involved

Transaction Scheme
This transaction scheme guides all BZMs that will implement the existing micro-crowdfunding system.Figure 5 shows the flow of the transaction scheme Figure 5.In this scheme, BZM requires a payment gateway to transfer existing funds.The payment gateway option with a token as the currency in the micro-crowdfunding scheme is determined.In the future, this token will be a medium of exchange from investors to MSMEs.

Campaign Plan
The campaign plan will reach the target consumers in an interesting, creative, and multi-mediaengaging way.BZM requires a campaign plan consisting of the following components to promote the new micro-crowdfunding scheme.
1.The target, namely BZM, needs to compile and determine what targets to be achieved from this micro-crowdfunding scheme are more than just profits 2. The audit is that BZM needs to check what human resources and skills they have to carry out the existing campaign plan.If it is still far from capable, then BZM needs to determine what gaps need to be met so that the campaign plan can continue to run 3. Method: BZM needs to choose the form of the campaign plan that suits the budget 4. Prepare is to build a campaign plan with the following steps: a. Business selection by selecting MSMEs that are suitable for Investment with criteria that BZM has previously determined b.Prepare a campaign plan that includes success stories, attractive cooperation schemes, future business milestones, and projected fundraising profits.c.Campaign execution according to the plan made accompanied by periodic evaluations

Impact Measurement
Impact Measurement uses two methods, namely SROI and SLIA.As a test of the scheme microcrowdfunding, Bank Zakat issued the Ramadan 2023 financing program, which is a loan Qardh with modified conditions adjusting the scheme micro-crowdfunding, namely the determination of a ceiling above 3 million to a maximum of 10 million with the condition of a maximum return of 2 months.Social Return on Investment (SROI) is a tool for measuring and calculating the broader concept of impact calculation by measuring the changes experienced by people or organizations in relevant ways.(Gargani, 2017;Hastono & Ratnasari, 2020;Venezia, 2020).The results of SROI's financing analysis show that 18 out of 33 MSMEs managed to increase business growth from the previous months.
Then, the Sustainable Livelihood Impact Assessment (SLIA) aims to measure changes in MSME assets by evaluating the program's sustainability in five assets: human, natural, financial, physical, and social.In this impact measurement analysis, a sample of data on Mrs. Narti's MSMEs from BZM Sawojajar was used in the prospectus.The results of the assessment of asset components produced a positive trend in all aspects, with an average value of 1,266 points or "Moderate."Blue line indicates before financing and orange line indicate after financing.This indicates that Ramadan financing positively impacts Mrs. Narti's MSMEs.The results of the visualization of the SLIA method can be seen in Figure 6.

Financial Scenario
In planning BZM's independence strategy, the most important thing is how BZM can run independently and generate positive cash flow, which is the remaining income minus needs per year.
The financial feasibility analysis starts from the total cash budget on the balance sheet of BZM Bojong Rangkas, which can be seen in Table 1.
From the sample data of 33 MSMEs in BZM Matraman, it was found that the average profit of MSMEs was 140.5%, indicating that the existing capital can generate more than two times the profit of the running business.The data also found that for one semester, 66.7% of the total mustahik MSMEs needed a new ceiling where the funding needed was more than 5 million.
Then, in determining the percentage of return on Investment (ROI) and the number of profitsharing turnovers in a year, it is necessary to model supply and demand simulations to determine the equilibrium point.The conclusion of equilibrium point modeling from the three simulations was obtained, and the criteria for determining the ceiling based on annual ROI turnover with a default ceiling standard of 10 million were achieved if the ROI of MSMEs had reached a rate of 15-20% and was considered able to achieve the ROI in 2x for a year.The existing balance sheet data was modeled into an analysis of BZM's financial feasibility with a positive cash flow target in a year; preliminary data was obtained, namely the total number of mustahik who have become partners of BZM Bojong Rangkas of 740 people and the annual needs of each BZM of Rp. 166,800,000.The following are the results of the financial projections of the Micro-Crowdfunding Scheme, which can be seen in Appendix 6.From the financial feasibility analysis, the following conclusions were obtained: 1. 10 out of 12 BZMs can implement a crowdfunding scheme with a partial subsidy scheme in the first year.And complete independence in the second year 2. 2 Other BZMs require additional mustahik to be independent in the second year 3. BZM must be committed to being able to collect card funds according to the existing collection target MSMEs registered in the micro-crowdfunding scheme must commit to sharing 20% of profits with micro-investors.

Regulatory Scenarios
In carrying out its independence strategy, BZM will implement a micro-crowdfunding scheme, an innovation of the crowdfunding system referring to POJK regulations No. 16 /POJK.04/2021,POJK No. 77/POJK.01/2016, and POJK No. 37/POJK.04/2018.The selection of financing scheme regulations with POJK rules will tend to encourage institutions to be bound in the form of MFIs (Microfinance Institutions) rather than KSPPS, which is more difficult to implement BZM in the regions due to the capacity of less qualified human resources and institutions.However, if BAZNAS continues to use POJK as a financing scheme, the directive on the form of a legal entity of KSPPS must be clarified whether to change to the MFI format or continue to maintain the form of KSPPS.Therefore, based on the conditions of institutional regulations, BZM has prepared three regulatory scenarios to overcome existing problems.a. Scenario 1: In the first year of operation, BZM uses the form of a KSPPS legal entity that distributes financing schemes from BZM funds and member funds to MSME partners as members.The system used is the mudharabah -muqayyadah scheme.b.Scenario 2: If the micro-crowdfunding scheme expands, BZM must license business activities as MFIs while still using the KSPPS legal entity.c.Scenario 3: If the micro-crowdfunding scheme is increasingly in demand and requires the participation of the general public in its operations, then BZM needs to take care of POJK licensing in implementing the scheme for the general public These three scenarios are a win-win solution for the regulatory problems BZM faces.The selection of this scenario is also a consideration for approval by BAZNAS leaders to ratify the transformation of BZM institutions from microfinance to micro-crowdfunding.In the first year of operation, BZM can start with the first scenario and then gradually move on to the second and third scenarios, looking at the situation and conditions that will be faced later.

Ecosystem Strengthens the Concept of Micro-Crowdfunding
The micro-crowdfunding scheme is an innovation in the scope of micro and even ultra-micro business capital.The most important aspect BZM must achieve as the organizer is generating a relationship of trust between members involved in the scheme and creating economic stability in the journey of MSMEs and investors.This can be achieved when BZM prioritizes management transparency to create a sustainable crowdfunding ecosystem.

CONCLUSIONS AND RECOMMENDATIONS
Based on the analysis conducted for the independence strategy of Bank Zakat Micro (BZM), a suitable risk-based organizational design was obtained in the form of Sharia Savings and Loan and Financing Cooperatives (KSPPS) through a financing scheme with a crowdfunding concept with the branding BAZNAS Micro-Crowdfunding.Recommendations for BZM services in the future are a combination of several services in the form of qardh-based savings and loans, micro-crowdfunding in the form of micro-crowdfunding, and business assistance for mustahik MSMEs.The practical contribution of this research is that BZM can carry out micro-crowdfunding scheme guidelines in the future, starting from business processes and measuring the impact of the results of this research.The policy contribution to government regulation includes an analysis of the issuance of the Law of the Republic of Indonesia Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.The PPSK Law says that KSP can collect and distribute funds to parties other than members.That is why, in the future, KSP supervision will be under the OJK, so there is an opportunity to develop the BAZNAS Micro-Crowdfunding concept without worrying about potential regulatory problems.
This research certainly has limitations where the context of the organizational design formulated only has the scope of work units in the BAZNAS Zakat Bank division, outside the scope of the BAZNAS enterprise.In addition, in connection with the scope within the work unit, the new business process produced in the form of work unit business processes and the designed risk management design is only limited to the scope of the transformation process in the work unit so that the identification of existing risks will only dwell on the activities carried out on the existing organizational design elements.
In this context, the resulting organizational design is limited to important and urgent needs in the form of an implementation plan used in the early stages of organizational operations.So, future research is expected to analyze research at the stage of organizational sustainability and its impact on the economic and social aspects of the surrounding environment.The technical suggestion for implications to BAZNAS is to monitor the implementation plan that has been prepared as well as assess the Performance of the achievement of BAZNAS Micro-crowdfunding from the predetermined target.This monitoring task can be assigned to existing division members or add a special role in monitoring and evaluation in the Micro Zakat Bank division.119.506.817 278.957.719 436.304.029 594.897.193 750.785.850 830.595.415 Final Cash Flow -47.293.183 112.157.719 269.504.029 428.097.193 583.985.850 663.795.415 Source: Authors' work (2023)

1.
Law of the Republic of Indonesia No. 25 of 1992 concerning Cooperatives 2. Law of the Republic of Indonesia No. 1 of 2013 concerning Microfinance Institutions.3. PermenKopUMKM RI No. 11/PER/M.KUKM/2017 concerning the Implementation of Sharia Savings and Loan and Financing Business Activities by Cooperatives.4. Government Regulation of the Republic of Indonesia No. 7 of 2021 concerning the Facilitation, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises explains the Law of the Republic of Indonesia No. 11 of 2020 concerning Job Creation.

Figure 3 .
Figure 3. Strategy MapSource:Authors' work (2023) 7. Tokens purchased by micro investors are used as capital to invest in potential MSMEs according to investors' tastes.
2. The MSME Development & Feasibility Assessment division checks and assesses the feasibility of MSMEs listed on the micro-crowdfunding scheme.It helps develop them to generate returns according to the specified targets.3. The Transaction Supervision & Compliance division organizes, supervises, and monitors the micro-crowdfunding transaction scheme and ensures that distributed funds reach eligible recipients.