Waqf, Endowment, Trust definitions and terms

Waqf, Endowment, and Trust have many terms you should know before creating an Endowment or Waqf agreement. Learning these terms is important which forms the fundamentals of Waqf. These terms may include Shariah, Habs, Waif (or Muhabbis), Waqfiyya, Al-Maqquf (or Al-Muhabbasa), Mawquf Alaihim, Sighah, Mutawalli, Nadhir (or Nazir), Manfaa, Asl, Al Hawz, Samaa al fashi, Hawala Habsiya, Ghayr Munqta, Mushrut-ul-khidmat, Raqabah, Qadi, Infaq, Sadaqah, Sukuk, Qard al-hasan, Mudarabah, Maslahah, etc.

The word "Shariah" means a "Path leading to the watering place," which closely resembles the meaning of Halachah, the Jewish law. Halachah means the "Path." Both laws include the word "Path" and end with "ah." The "Shariah" is the law for Muslims' that drives life, morally and spiritually. Shariah originated from four sources; The Holy Quran, Sunnah (the sayings of Prophet Muhammad s.a.w.), Ijma (the consensus of companions or knowledgeable Islamic scholars), and Qiyas (the analogical deductions).

The term waqf, which is derived from the Arabic root waqqafa, means “causing a thing to stop and stand still” (Cizakca, 1998). The literal meaning of the word refers to “detention.” When a Waqf is created, the property is detained or, is ‘tied up’ forever and thereafter becomes non-transferable”.(Solanki, 2019). The waqf as an act of giving away an asset that had the feature of perpetuity on a permanent basis Ahmed (2004). Also, Waqf is known in some Arabic countries as ‘hibss’ or, in the plural, ‘hubouss.’ In other words, imagine a field is donated as Waqf. The community may use the field in a way that is beneficial – by planting fruits and vegetables. For instance, when ripe, the harvest will benefit the whole community. However, because nobody owns the field, the donation is ongoing and will support generation after generation.

A founder, donor, or person giving grants and/or setting up and responsible for establishing Waqf with the vision and end goal in mind (See REF).

The purpose of Waqf and the identity of the beneficiaries are written part of the deed called Waqfiyya.

Refers to property, whether capital or non-capital, movable or immovable.

Refers to beneficiaries who take the benefits from Waqf (See REF).

Refers to the declaration of Waqf by the founder (or donor) either verbally or in written form.

Refers to the director or Trustee of Waqf (See REF).

Refers to the Waqf institution/investment administrator/manager. Nazir must have the capacity to act and contract. In addition, trustworthiness and administration skills are required (See REF).

Refers to Income, revenue, or usufruct from Waqf refers to Manfaa.

Refers to Real property

Refers to Possession and effective control of the endowment.

Refers to the declaration or recite (of endowment or Waqf agreement).

Refers to the transfer document.

Refers to the object of property.

Refers to the grant of Waqf.

The Raqabah is an Arabic word meaning "to observe, to watch, to regard attentively, to guard; to control, to supervise, to keep an eye on."

Refers to a Judge or a Supervisor who is versed in the Shariah.

Refers to Expenditure or spending (See REF). The Infaq is one of the basic terms used in the Holy Quran Quran. It is a devout spending resource with reference to the redistribution of wealth and alleviation of poverty (Aziz, Mahmud, and Karim 2008).

Refers to the voluntary giving of Muslims without time or quantity limitation. The basic concept is to give without expecting rewards (Faliza, Adam, Basri, and Abd. Madjid 2019). There are three main types of charity; Sadaqah jaariyah (i.e., unceasing continuous charity), Sadaqah mawqilfa (i.e., reserved charity), and Sadaqah Muharram (i.e., sacred charity).

Refers to Asset-based or asset-backed financial certificates (See REF).

Refers to Interest-free loan (See REF).

Refers to a partnership whereby one party (the capital owner) provides capital to an entrepreneur to undertake a business activity. Profits are shared between them as agreed, but any financial loss is borne only by the capital owner, as his loss is his unrewarded efforts put into the business activity (See REF).

Refers to achieving benefits and avoiding harm (See REF).

Refers to the prevention of harmful means.

Refers to an explicit textual ruling.

Refers to customary practices.

Refers to perpetual or continuous.