Does Contract Type Influence the Zakat, Infaq and Sadaqah Donation of Islamic Microfinance Debtor?

Baitul Maal Wat Tamwil (BMT) combines both the business function (tijaroh) and charity function (tabarru’). The Baitul Maal raises the charity funds by collecting zakat, infaq, and shadaqah (ZIS) donation and the Baitut Tamwil raises the profit by giving financing to micro enterprises. Studies on conventional enterprises shows that charity funds payment by enterprises are influenced by several factors, such as size of the enterprises, financial performance, advertising expenditures, tax rate, Earning Before Tax, Asset Size, Advertising Intensity and debt. This paper tries to find factors that determine the zakat, infaq and shadaqah payment through the Islamic financial and charity institution by their customers. More specifically, this paper examine whether type of contracts of mode of financing has significantly affect the amount of zakat, infaq and shadaqah donation. Furthermore, while many critics of Islamic micro finance practice emphasize the importance of implementing the Natural