This research aimed at identifying the management mechanism of productive zakat program by Dompet Dhuafa (charity association for underprivileged people) and Inisiatif Zakat Indonesia (Indonesia’s zakat institution). Besides, it also aimed at recognizing the effectiveness of the program toward the increase of Mustahiq welfare. The method used was descriptive qualitative method. Whilst the data compiled were those of primary and secondary data. The result showed that Dompet Dhuafa had three methods in deciding the grantee of the program, those were through direct observation, collaboration with partner, and call for proposal. Whereas Inisiatif Zakat Indonesia conducted collaboration with partner as well as social media promotion. The capital given by Dompet Dhuafa was a sewing machine for individual grantee and a one million rupiahs cash to be organized by institution. Inisiatif Zakat Indonesia gave capital in form of cash which later was spent by the respective member. The monitoring program was only done during the first year of the program. As seen from their material and social needs, both institutions had been effectively improving their members’ welfare, whilst in terms of spiritual needs, Inisiatif Zakat Indonesia had been more effective in improving its members’ welfare rather than those of Dompet Dhuafa.