Zakah is one of the systems to promote wealth-sharing among the Muslims in assuring a minimum standard of living for them. The problems associated with the distribution of zakah and poverty are damaging the performance and achievement of the zakah institution itself. The statistics on the distribution of zakah shows that the poor and extreme poor in Terengganu has been increased over the last few years. In addition, there are people who pay zakah directly to the asnaf while such payments of zakah are not being recorded. Thus, an efficient management for zakah in terms of collection and distribution can contribute to the achievement of the utmost objective of zakah. This qualitative mode of study investigates the activities of zakah collection and distribution that are being practiced by MAIDAM. This study uses the semi-structured interviews to collect the primary data. The study interviews the staff from the Majlis Agama Islam Dan Adat Melayu (Islamic Religious Council and Malay Customs), known as MAIDAM, whereby several issues have been asked and discussed to achieve the objectives. MAIDAM is the only organization that collects and distributes zakah in Terengganu. The study finds that MAIDAM has been using several channels for the zakah payers to make direct payments to MAIDAM. Besides, MAIDAM has collaborations with other organizations to distribute the funds effectively. The study posits that zakah is to be distributed in sustainable modes such as in a form of small financing for needy SMEs to achieve the objective of eradicating poverty line and minimizing income inequality.