Paying direct to the needy individually would not create long term and sustained benefits, and there won't be a zakat institution to be responsible overall. Malaysia may be unique in having a clear authority to collect and distribute zakat for each state recognised by both the government and the community, so choice does not arise. But for countries or communities not organised properly, then the organisation given the mandate by the majority of Muslims in the state or area should be the channel. The concept of community centring on the local mosque, can be the choice. The mosque council selected at annual meetings of the community can be the organisation to fulfill the role.
Proper administration is the rule and the prequisite to gain confidence.
So it is a question of trust, responsibility and obligation in adhering to a commandment of God. Q4.There are definitely variations in interpretations. But many of the main aspects of zakat are uniform. In the end ,what matters is for individuals who have been blessed by Allah with a certain level or amount of wealth that exceed the 'nisab' and have completed the 12 months 'haul' to do their duty of obeying Allah's command. Kuala Lumpur is to give guidelines and explanations, and the rest is up to each individual's conscience.