Abstract Zakat management agencies, like any other organizations, must be able to demonstrate the capability to operate at its optimum and efficient level in ensuring the rationale of its existence. As such a performance indicator to measure organization effectiveness in collecting and distributing zakat is of paramount importance. The paper reviews and synthesises the relevant literature on the organisational performance measurement. The paper then develops and proposes a performance measurement framework for zakat institutions, taking into account non-financial measures where input, process, output measures are as important as outcome measures. This performance management and measurement systems to be developed in the zakat institution must have the mean to monitor and maintain organizational control, which is the process of ensuring that an organization pursues action plans that lead to the achievement of overall goals and objectives
