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This article aims to describe the experience of Putukrejo, a village in Indonesia, which develop innovative institution to manage zakah. Zakah is philantropical action that is obligated for every muslim. Zakah can be paid directly by the obligated individual to another individual eligible for zakah. Distribution pattern like this provoke a lot of problems. Aside from direct distribution, zakah can be paid collectively and indirectly. People pay their zakah to certain institutions. This certain institution then distributed zakah to parties that is eligible to receive. What choice is picked by Putukrejo’s citizens and how to organize it and also the result? This article is made to answer those questions from institutional perspective. Key words—institution; zakah; collective action;collaborative management;Putukrejo Village

Institutional Innovation in Zakah Management: The Experience of Putukrejo Village, Indonesia