The Waqf or Endowment concept has a long history in Islamic tradition going back to the time of Prophet Muhammad (Sallallahu Alayhi Wasallam) and the early Muslim community. Waqf is an Arabic term that refers to the permanent dedication of an asset, such as property, money, or other resources, to be used for a charitable or religious purpose.
The practice of Waqf was encouraged and established by Prophet Muhammad (Sallallahu Alayhi Wasallam), who set up several endowments during his lifetime. The idea behind Waqf is to ensure the continuous benefits and support of a specific cause or institution, such as mosques, educational institutions, hospitals, orphanages, and social welfare projects.
Throughout history, Muslim societies have established numerous Waqf institutions that have supported various social, educational, and religious initiatives. These endowments have often provided sustainable funding for mosques, schools, libraries, hospitals, and other public services, benefiting Muslims and non-Muslims in their communities.
The concept of endowments and philanthropy also exists in other cultures and religions, predating the establishment of modern endowments. However, the Islamic tradition of Waqf has had a particularly enduring and widespread impact, with many Waqf institutions dating back centuries and continuing to operate today. These endowments have contributed significantly to the development and advancement of Muslim societies across the globe.
The term "Waqf" itself is not explicitly mentioned in the Holy Quran. However, the principles and values underpinning the Waqf concept can be found in the Holy Quran. Islam greatly emphasizes charitable giving and contributing to good causes through deeds and charity. In its various forms, charity is an integral part of Islamic practice and is considered one of the five pillars of Islam. The two primary forms of charity in Islam are Zakat and Sadaqah. Zakat is obligatory upon those Muslims who are financially capable. It is a fixed percentage (2.5%) of a person's eligible wealth distributed to specific categories of individuals, such as the poor, needy, and those in debt, among others. The Quran mentions Zakat in multiple verses, highlighting its significance as a means of purifying one's wealth and providing for those in need. On the other hand, Sadaqah refers to voluntary acts of charity and generosity that go beyond the obligatory Zakat. It encompasses various charitable deeds, including giving money, food, clothing, or other resources to help those in need. The Holy Quran encourages Muslims to engage in acts of Sadaqah and emphasizes the virtue of giving for the sake of Allah (Subhanahu wa ta aala) and seeking His pleasure. The Holy Quran's principles of charitable giving, generosity, and supporting good causes align with the concept of Waqf. Muslims have historically established Waqf institutions to perpetually support charitable and beneficial endeavors, fulfilling their obligation of charity and contributing to the betterment of society.
The Holy Quran 2:274 states: "Those who spend their wealth in charity day and night, secretly and openly—their reward is with their Lord, and there will be no fear for them, nor will they grieve."
The Holy Quran 57:18 states: “Indeed, those men and women who give in charity and lend to Allah a good loan will have it multiplied for them, and they will have an honourable reward.”
The Holy Quran 2:262 states: "Those who spend their wealth in the cause of Allah and do not follow their charity with reminders of their generosity or hurtful words—they will get their reward from their Lord, and there will be no fear for them, nor will they grieve."
The Holy Quran 63:10 states: "And donate from what We have provided for you before death comes to one of you, and you cry, “My Lord! If only You delayed me for a short while, I would give in charity and be one of the righteous.”"
The concept of contributing to the community in Islam is not just money and is very wide. You get ample opportunities as a Muslim to contribute, including charitable donations and endowments. Carefully spending money is one of the greatest virtue in Islamic finance. Some of the Quranic injections are below.
The Holy Quran 2:263 states: "Kind words and forgiveness are better than charity followed by injury. And Allah is Self-Sufficient, Most Forbearing."
The Holy Quran 4:114 states: "There is no good in most of their secret talks—except those encouraging charity, kindness, or reconciliation between people. And whoever does this seeking Allah’s pleasure, We will grant them a great reward."
The Holy Quran 25:67 states, “and those who, when they spend, are neither extravagant nor miserly, and it (i.e., their spending) is moderate in between (the two extremes).”
In the famous Hadith of Prophet Muhammad (Sallallahu Alayhi Wasallam) states, "Abu Hurairah (May Allah be pleased with him) reported: The Messenger of Allah (Sallallahu Alayhi Wasallam) said, "When a man dies, his deeds come to an end, except for three: A continuous charity, knowledge by which people derive benefit, pious son who prays for him."" (Riyad as-Salihin 949, Book 6, Hadith 56). The concept of Waqf falls under "sadaqah jariyah (i.e., continuous charity)" and it is considered a continuation of good deeds. The continuing distribution of the income of the Waqf is an act of charity as long as the income or benefits continue to be enjoyed, religious merit continues to accrue to the dedicator.
The word "endowment" specifically refers to giving away large donations by Muslims to a registered charitable organization to benefit a Muslim community. It may include but is not limited to helping the poor, needy, paying off expenses, or other that is written part of the endowment agreement. The scope of Endowment can be small or large based on the vision and the goal of the owner and provider of Trust funds. It cannot be limited to money but can be a capital, non-capital, movable, or non-movable property. There are a few important narrations below that reflect the governance of Endowment.
Musnad Ahmad 555, Book 4, Hadith 147 states, "It was narrated that Thumamah bin Hazn al-Qushairi said: I was present at the house (of `Uthman) on the day `Uthman (radiallahu anha) was killed. He looked out at them and said: Call for me, your two companions who incited you against me. They were called for him, and he said: I adjure you by Allah, do you know that when the Messenger of Allah (Sallallahu Alayhi Wasallam) came to Madinah, the mosque got too crowded for its people and he said: “Who will buy this piece of land with his own wealth and use it like the rest of the Muslims (i.e., donate it to the Muslims and share it with them) and he will have something better than it in Paradise?” So I bought it with my own wealth and donated it to the Muslims, but now you are preventing me from praying two rak’ahs in it! Then he said: I adjure you by Allah, do you know that when the Messenger of Allah (Sallallahu Alayhi Wasallam) came to Madinah, there was no well good for drinking from except (the well of) Roomah. The Messenger of Allah (Sallallahu Alayhi Wasallam) said: `Who will buy it with his own wealth and his bucket will be like that of the Muslims (i.e., donate the well to the Muslims and share it with them) and he will have something better than it in Paradise.” So I bought it with my own wealth, but now you are preventing me from drinking from it. Then he said: Do you know that I am the one who equipped the army of hardship (i.e., the army that went on the campaign of Tabook)? They said: By Allah, yes."
Sahih al-Bukhari 2777, Book 55, Hadith 40 states, "Narrated Ibn `Umar: When `Umar founded an endowment, he stipulated that its administrator could eat from it and also feed his friend on the condition that he would not store anything for himself from it."
Sahih al-Bukhari 2737, Book 54, Hadith 24 states, "Narrated Ibn `Umar: Umar bin Khattab got some land in Khaibar and he went to the Prophet (Sallallahu Alayhi Wasallam) to consult him about it saying, "O Allah's Messenger (Sallallahu Alayhi Wasallam) I got some land in Khaibar better than which I have never had, what do you suggest that I do with it?" The Prophet (Sallallahu Alayhi Wasallam) said, "If you like you can give the land as endowment and give its fruits in charity." So `Umar gave it in charity as an endowment on the condition that would not be sold nor given to anybody as a present and not to be inherited, but its yield would be given in charity to the poor people, to the Kith and kin, for freeing slaves, for Allah's Cause, to the travelers and guests; and that there would be no harm if the guardian of the endowment ate from it according to his need with good intention, and fed others without storing it for the future.""
Sahih al-Bukhari 2764, Book 55, Hadith 27 states, "Narrated Ibn `Umar: In the lifetime of Allah's Messenger (Sallallahu Alayhi Wasallam) , `Umar gave in charity some of his property, a garden of date-palms called Thamgh. `Umar said, "O Allah's Messenger (Sallallahu Alayhi Wasallam)! I have some property which I prize highly, and I want to give it in charity." The Prophet; said, "Give it in charity (i.e., as an endowment) with its land and trees on the condition that the land and trees will neither be sold nor given as a present, nor bequeathed, but the fruits are to be spent in charity." So `Umar gave it in charity, and it was for Allah's Cause, the emancipation of slaves, for the poor, for guests, for travelers, and for kinsmen. The person acting as its administrator could eat from it reasonably and fairly and could let a friend of his eat from it provided he had no intention of becoming wealthy by its means."
Sahih al-Bukhari 2313, Book 40, Hadith 13 states, "Narrated `Amr: Concerning the Waqf of `Umar: It was not sinful of the trustee (of the Waqf) to eat or provide his friends from it, provided the trustee had no intention of collecting fortune (for himself). Ibn `Umar was the manager of the trust of `Umar, and he used to give presents from it to those with whom he used to stay at Mecca."
These hadiths become the foundation for the Islamic concept of Waqf. The following can be deduced in general from these hadiths, However, actual principles of Waqf can differ from one Islamic jurisprudence (i.e., Hanafi, Shafii, Maliki, or Hanbali) and scholars to another.
Waqf funds or assets cannot be sold.
Waqf funds or assets cannot be transferred to another person,
Waqf funds or assets cannot be given as a gift.
Waqf funds or assets cannot be given as a Bequest.
Waqf funds or assets cannot be inherited.
Waqf funds or assets must not exceed one-third of the total that Waqif owns.
Waqf funds or assets can be used for any Halal and the best purpose for the community, including but not limited to needy and poor, Kith and kins, travelers, guests, etc.
Waqf funds or assets cannot be stored or collected for fortune.
Waqf funds or assets can be used to apply the salaries or expenses for the administration.
Waqf funds or assets can include any assets, money, or investments earned through Halal means.
Waqf funds or assets must be in existence. (Sbihi, 2009) said that the Waqf must be tangible and immobile and yield income.
Waqf funds or assets must be an object that can be donated.
Waqf funds or assets must be owned by sound mind Waqif or organization provided that there is no fraud, undue influence, or coercion, and should not be in a state of death illnesses.
Waqf funds or assets must have unrestricted access to the property declared a Waqf.
Waqf funds or assets must be free from court matters and bankruptcy claims.
Waqf funds or assets must be part of the declaration called Endowment agreement. (Ibrahim, 2013) suggests that the declaration or recitation of the waqf must consist of words easily understood and writing that specifies whether it is a general waqf, specific waqf, or family waqf.
Prophet Muhammad (Sallallahu Alayhi Wasallam) mentioned that there is no inheritance given to Prophet's heirs, as mentioned in the following Hadiths.
Sahih Muslim 1761, Book 32, Hadith 66 states, "It has been narrated on the authority of Abu Huraira that the Messenger of Allah (Sallallahu Alayhi Wasallam) said: "We do not have any heirs; what we leave behind is a charitable endowment.""
Sahih al-Bukhari 4035, 4036, Book 64, Hadith 83 states, "Narrated `Aisha: Fatima and Al-`Abbas came to Abu Bakr, claiming their inheritance of the Prophet's land of Fadak and his share from Khaibar. Abu Bakr said, "I heard the Prophet (Sallallahu Alayhi Wasallam) saying, 'Our property is not inherited, and whatever we leave is to be given in charity. But the family of Muhammad can take their sustenance from this property.' By Allah, I would love to do good to the Kith and kin of Allah's Apostle rather than to my own Kith and kin.""
Three important points to note from Prophet's Endowment.
Prophet made the endowment of the land of Fadak which validates the endowment application in Islam.
The endowment cannot be inherited but the family of the Prophet.
The endowment can be used for the sustenance of the family of the Prophet.