This paper is one of topics discussed in the writer’s study on Performance of Zakat (alms-giving) Management and Social Economic Transformation (1999) in Kendari city. In this context, the writer described the existence of Local Public Service Agency (LPSA) and Madani Brotherhood (MB) as an alternative program put forward by government of Kendari in obstructing poverty. The study used a participatory development approach through participatory action research, in-depth interviews and focus group discussions as well as documentation. The results showed the successfulness of LPSA in distributing fund for poverty and MB program in uniting the rich people who initially was 69.8 percent with 30.2 percent of the poor. Now, the level of poverty in Kendari has dropped nearly 7 percent.