This paper try to review the practice of Islamic welfare system (such as zaka, waqf , shadaqa, infaq, hibah and qurban) dealing with poor people in rural area. Then, this study looks at four main issues, namely how the structure of the commitee, the management of such system, fund rising strategy , and people accessibility to this welfare system. In order to deal with this, it is used some frameworks namely; firstly , the welfare strategy as proposed by Spicker (1995)
including economic production, redistribution, and solidarity . Secondly , the concept of welfare offered by Azmi (1991), Midgley (1997), and Zastrow (2004). This research took place in North and South Wonorejo, a village located in Magelang district, Central Java. Finding of this research shows that this scheme has operated conventionally and has not contributed much on enhancing people welfare. There is no formal institution that organizes all element of such scheme. As the social welfare institution, this system ideally offers program, benefits and services that help people meets those social, economic, educational and health needs. However , there is no specific program for the poor people offered by the committee of the Islamic welfare scheme.