This article is about the religious endowment. State revenues are assured to pious foundations. Unsourced material may be challenged and removed. The term islamic wealth management pdf literally means “confinement and prohibition” or causing a thing to stop or stand still.
The legal meaning of Waqf according to Imam Abu Hanifa, is the detention of a specific thing in the ownership of waqf and the devoting of its profit or products “in charity of poors or other good objects”. Waqf signifies the extinction of the waqif’s ownership in the thing dedicated and detention of all the thing in the implied ownership of God, in such a manner that its profits may revert to or be applied “for the benefit of Mankind”. The Prophet said, ‘If you like, make the property inalienable and give the profit from it to charity. It goes on to say that Umar gave it away as alms, that the land itself would not be sold, inherited or donated. And it will not be held against him who administers it if he consumes some of its yield in an appropriate manner or feeds a friend who does not enrich himself by means of it.
In another hadith, Muhammad said, “When a man dies, only three deeds will survive him: continuing alms, profitable knowledge and a child praying for him. Finally if a person is fatally ill, the waqf is subject to the same restrictions as a will in Islam. Finally these objects should not already be in the public domain. Thus, public property cannot be used to establish a waqf.
The founder cannot also have pledged the property previously to someone else. These conditions are generally true for contracts in Islam. The property dedicated to waqf is generally immovable, such as estate. All movable goods can also form waqf, according to most Islamic jurists. The Hanafis, however, also allow most movable goods to be dedicated to a waqf with some restrictions. The beneficiaries of the waqf can be persons and public utilities.
Public utilities such as mosques, schools, bridges, graveyards and drinking fountains can be the beneficiaries of a waqf. There can also be multiple beneficiaries. For example, the founder may stipulate that half the proceeds go to his family, while the other half go to the poor. At least some of the beneficiaries must also exist at the time of the founding of the waqf. The Mālikīs, however, hold that a waqf may exist for some time without beneficiaries, whence the proceeds accumulate are given to beneficiaries once they come into existence. An example of a non-existent beneficiary is an unborn child. The beneficiaries must not be at war with the Muslims.