This research aims to observe the preferences of Islamic Financial Institutions (IFI) in Indonesia for paying zakat and infaq/sadaqah fund. This study mainly uses a quantitative study that applies the Likert scale on the questionnaire to analyze respondents^ preferences. Five variables were generated to ask IFI^s preferences for paying zakat and infaq/sadaqah fund. The findings indicate that IFIs mostly preferred electronic mail as promotional media for zakat organizations. In terms of payment channels, the use of a virtual account was preferred over the traditional method of fund collection. However, IFIs preferred face-to-face consultation to a virtual one. Surprisingly, the zakat deduction was not greatly considered as zakat benefit, while Baznas was the most preferred zakat organization to distribute IFI^s zakat fund. Lastly, IFIs^ preference for zakat report was to be presented based on the national standard with thorough audit process. This study suggested that in terms of fund collection, zakat organizations focus on digital technology, while keep offering direct consultation services. Generating audited financial reports based on national accounting standards is crucial for the zakat organization. Baznas as the most preferred organization needs to improve its performance to keep IFIs^ trust.
