ENGLISH
The institution of waqf signifies a foundation set up by keeping a property in perpetual existence and making its income available for specified beneficiaries.
Prophet Muhammad is quoted as saying that, ‘when a man dies, only three things will survive him’: continuing alms; profitable knowledge; and a child praying for him. Establishment of Muslim charitable foundation or waqf (pl. awqaf; endowment) has the means of ensuring all three, and been popular among the Muslims. Waqf endowment is a process of anticipating and managing the future: a hereafter future for the person making the waqf endowment, and worldly future for the persons benefiting from it
On the recommendations pertaining to the broadening of structures beyond traditional banking models, the development of social impact partnerships in the United Kingdom and the United States is discussed with relevance to the Islamic finance industry and the waqf sector.
It is useful to note here that disappointed by the dismal performance of the state sector in providing essential social services to the poor and shocked by the exorbitant cost of these services when provided by the state, a massive transformation is underway in Western countries with respect to poverty reduction policies. Learning from the experience of the waqf system, the West is rediscovering the virtues of the non-profit sector and NGO activity is growing at a rapid pace.
The irfaq sector, thus, emerged as a forceful reality during the Prophet’s lifetime (peace be upon him), and continued to flourish as a deep seated social insurance order, consisting of waqf (charitable foundations) and other vehicles of voluntary giving, till the late historical stages of the Islamic state.
They may also find it necessary to encourage private philanthropists to construct and run, as many as possible, educational institutions, hospitals, housing schemes for the poor, orphanages and other social service projects by taking effective measures to revive the institution of awqaf (charitable trusts) which have played an important role over a greater part of Muslim history
The closest approximation to the corporate legal entity have been the bayt aI-māl (public treasury), mosque property, awqāf (trusts), and mufāwadah partnership.
State’s role in this respective would be to provide a legal structure to protect property rights of Awqāf.
State’s role in this respective would be to provide a legal structure to protect property rights of Awqāf.
Focus had been on the inadequacies of Capitalism and Socialism and the advantages of prohibiting Reba (interest) and implementing Zakah and Awqaf.
The closest approximation to the corporate legal entity have been the bayt aI-māl (public treasury), mosque property, awqāf (trusts), and mufāwadah partnership.
However, lately the institution of waqf has shown a renewed vigour in some Muslim countries, of which perhaps the best example is Turkey where a large number of very useful and active awqaf have been established during the last two decades.
Known as charitable or philanthropic foundations in the West, waqfs were voluntary endowments provided by high net-worth individuals in order to finance, organize, and maintain in perpetuity the most important services needed by the society.
Charitable foundations constitute the primary instrument for the voluntary redistribution of income in an Islamic economy. These foundations are known in the Islamic world as waqf (pl. awqaf) or habs.