Waqf
A waqf is an Islamic endowment: an asset permanently dedicated so that its income or benefit serves a charitable, religious or public purpose, while the asset itself is preserved rather than spent.
Also called: awqaf · Islamic endowment · cash waqf
The founder gives up ownership and the asset is held, typically by a trustee (mutawalli), with the income applied to the named purpose: a mosque, a school, a hospital, water supply, support for the poor or the founder's descendants. Historically waqf funded a large share of public services across the Muslim world, and in many countries a government ministry or council now supervises it.
Modern practice includes cash waqf, where money is invested in Sharia-compliant assets and only the returns are spent, and waqf-linked sukuk that raise funds to develop endowed land. Waqf income is a natural source of capital for qard hasan and other social finance.
In practice
A waqf is not simply a charitable gift. The principal is meant to be preserved in perpetuity, and the asset generally cannot be sold or redirected except under strict conditions.
Example
A family endows a US$2 million apartment building as a waqf. The trustee rents out the apartments and spends the net rental income, about US$90,000 a year, on scholarships; the building itself is never sold.
Commonly confused with
| Term | How it differs |
|---|---|
| Sadaqah | Sadaqah is spent. A waqf preserves the asset and spends only its income or benefit. |
See also
- SadaqahSadaqah is voluntary charity: giving of any amount, at any time, to anyone in need, beyond the fixed obligation of zakat and without expecting repayment.
- ZakatZakat is the obligatory annual alms on qualifying wealth above a minimum threshold, payable to specified categories of recipients. It is one of the pillars of Islam, and in some countries it is collected by the state.
- Qard HasanQard hasan is a benevolent, interest-free loan made to help the borrower rather than to earn a return. The principal remains repayable, but the lender seeks no benefit and is expected to be lenient if the borrower struggles.