Updated: Jun 2, 2023
The waqf and endowment are centuries-old concepts in the Islamic world. It encompasses both charitable endowments and family or private trusts. It is important to note that while waqf shares some similarities with other concepts, such as faraidh (Islamic inheritance laws), wasiyyah (Islamic will), and raqabah (family trust), there are distinct differences between them.
Waqf refers to the dedication of a property or assets to a charitable purpose for the benefit of the public or specific beneficiaries. The waqf property is held in perpetuity, and its benefits are utilized according to the intentions of the waqf founder. The property is deemed inalienable, and the capital remains intact while its income is used for charitable endeavors.
Faraidh, also known as Islamic inheritance laws, govern the distribution of a deceased person's estate among their rightful heirs. It is based on fixed shares prescribed in the Quran and Sunnah. Faraidh ensures that the assets of the deceased are distributed fairly and according to Islamic principles, taking into account the relationships and entitlements of specific heirs.
Wasiyyah refers to the Islamic will or testamentary bequest. It allows a person to designate how a portion of their estate will be distributed after their death, beyond the fixed shares prescribed by faraidh. Wasiyyah provides an opportunity to make specific bequests to individuals or charitable causes, subject to certain limitations and conditions.
Raqabah refers to a family trust or private trust established for the benefit of specific individuals or families. It is a form of private endowment wherein the assets are set aside to support the designated beneficiaries. Unlike waqf, which is dedicated to charitable purposes and the public good, raqabah focuses on meeting the needs and welfare of a particular family or group.
While these concepts may have similarities, their objectives, scope, and legal principles differ. Waqf is primarily aimed at serving charitable purposes and benefiting the broader community, while faraidh focuses on the fair distribution of inherited assets among heirs. Wasiyyah allows individuals to make specific bequests beyond the scope of faraidh, and raqabah pertains to private trusts for the welfare of specific individuals or families.
It is important to understand these distinctions to ensure the proper application of these concepts within the Islamic legal framework and to meet the specific intentions and requirements of the waqf, faraidh, wasiyyah, or raqabah arrangements. Consulting with experts in Islamic jurisprudence can provide further clarity and guidance on each of these concepts and their respective applications.
Waqf is made towards charitable Muslim organizations, including mosques, schools, etc., The Faraidh (i.e., Islamic Inheritance) is reserved only for Islamic legal heirs. The word "Waqf" can be used interchangeably whether it is for a Muslim organization or an Individual Family, but the word "Endowment" is specifically used for donations towards charitable Muslim organizations. The Faraidh goes to Islamic legal heirs and terminates, while Endowment goes for a long time or until any situations for terminations occur. Family Waqf is created in two different formats; First, Waqf terminates upon death and turns all deceased estates into inheritance. Second, Waqf does not terminate but provides sustenance to inheritors but it deprives the Islamic legal heirs from Faraidh. The intent of second type of Waqf is to control the extravagant behaviour of descendants but validity of this type of Waqf need to evaluate properly in the light of Shariah before you decide to create.
The testamentary bequest (i.e., Wasiyyah) has three limitations compared to Endowment; First, it cannot be given to Islamic legal heirs. Second, it cannot be given more than one-third of the inheritance. Third, it is given only after death. This fact is reflected in the Hadith Sahih Muslim 1628d, Book 25, Hadith 9 states, "Mus'ab b. Sa'd reported on the authority of his father. I was ailing. I sent message to Allah's Apostle (Sallallahu Alayhi Wasallam) saying: Permit me to give away my property as I like. He refused. I (again) said: (Permit me) to give away half. He (again refused). I (again said): Then one-third. He (the Holy Prophet) observed silence after (I had asked permission to give away) one-third. He (the narrator) said: It was then that endowment of one-third became permissible."
The benefits of the Waqf, which are called "maniafah," are distinguished from the corpus of the property made Waqf, "Raqabah." The Raqabah is not given; rather, as the word Waqf itself expresses, it is "detained." By this detention, Waqf property is reserved from the ordinary incidents of ownership such as sale, gift, and inheritance so that it may be perpetually and inalienably tied to the good purposes named by the dedicator at the time of dedication. Another feature of Waqf: the thing made by Waqf, be it a house, or a book, is detained as a specific object, not as an object representing a certain value in money-money; indeed, it is one of the things which cannot be made Waqf. Waqf property is not, therefore, interchangeable with other property of equal value. By its detention, it is removed from considerations of equivalence. For example, a house dedicated to the support of a mosque cannot be sold to purchase a more convenient or advantageous property for the mosque, any more than the mosque itself can be sold. Both are detained in the same way. However, there are certain situations where Waqf property can be sold, particularly when the property ceases to produce benefits, but only under the most stringent conditions.