Waqf, in essence, is a charitable endowment. The concept originates from a Hadith where the Prophet Muhammad (peace be upon him) advised a companion to "give it in work and donate from its produce." This guidance was in response to a query about how to utilize a piece of precious land. The Prophet's answer was profound: give the land in Waqf and utilize its fruits for donation, zakat, infaq, and sedekah.
Waqf, an age-old Islamic philanthropic tradition, has evolved over the years to become a powerful tool for socio-economic development. With its roots deeply embedded in the principles of charity and community service, waqf has the potential to drive positive change in various sectors, including education, healthcare, and infrastructure
In the realm of Islamic philanthropy, Waqf stands out as a beacon of hope and sustainability. Traditionally, Waqf involves dedicating a piece of land or property for charitable purposes. However, with the evolution of financial instruments and the changing dynamics of the economy, Cash Waqf has emerged as a modern and innovative approach to this age-old tradition
Cash waqf and waqf through money are two forms of Islamic endowments that serve different purposes and have distinct characteristics. Cash waqf refers to the act of donating physical cash or currency as an endowment for charitable purposes. On the other hand, waqf through money involves dedicating a specific amount of wealth or assets as an endowment. Instead of donating actual cash, individuals contribute assets such as property, stocks, or bonds to create a waqf fund
The role of cash waqf in Islamic finance is of utmost importance as it presents a unique and distinct form of endowment compared to traditional waqf. Cash waqf refers to the practice of donating money or assets in the form of cash, which are then allocated for charitable purposes based on Sharia principles.
While the Nazhir's role is undeniably crucial, determining their compensation can be a complex task. Several factors come into play: