Objective - The objectives of the research were (1) to determine and to analyze the problems in managing productive zakat, (2) to seek the factors constraining the success and the failure in managing productive zakat, and (3) to find utilization of the productive zakat model.

Methodology/Technique - This is a survey, qualitative exploratory, and action research conducted in Jember Regency. Data were analyzed using descriptive exploratory method, from the primary and secondary data, and were processed and analyzed using the triangulation data method. According to the research findings, there were six zakat foundations (Amil zakat) in Jember, namely: LAZ of the Ministry of Religion of Jember, Lazismu, Azka, BMH, Yatim Mandiri, and YDSF.

Findings - The research results showed that the problem faced by each foundation was in distributing productive zakat to the different zakat receivers. The most frequent obstacle encountered by Amil zakat foundation in the distribution of productive zakat was the human resources problem, especially for the training and supervision.

Novelty - The research then developed a model to minimize the weaknesses in the distribution of productive zakat by involving the local government and the academicians.

Type of Paper - Empirical

Keywords: Zakat; Productive Zakat; Utilization Of Productive Zakat Model; Poverty Reduction.