The purpose of this paper is to examine the situation and characteristics of zakat practice in Indonesia. Zakat, one of the five pillars of Islam, is an religious duty to pay a determined amount from one’s surplus wealth annually to purify one’s assets. This paper focuses on the process and practices of zakat management organizations in Indonesia, which has the largest Muslim population in the world. In the past, Zakat practices in Indonesia operated at the grassroots level. However, from the early twentieth century, new waves of zakat practices have been adopted. After the end of the New Order regime, led by President Soeharto, domestic politics have resulted in Zakat Act No.38/1999. When the new Zakat management Act was passed, heated arguments erupted between the state administration and private voluntary institutions. Firstly, this paper discusses the history of zakat practices after the independence and the new waves of the zakat movement. Then it explains about the two types of zakat management organizations. The former is the state-based organization BANZAS (Badan Amil Zakat Nasional) and the latter are the grass-roots organizations LAZ (Lembaga Amil Zakat). As for the conclusion, this paper implies the importance of the diversity of zakat practices, which promote the well-being of people in the society.