Charity in Islam – the Future of Waqf

Features Charity in Islam – the future of waqf Charity is central to Islam, as we’ve outlined in previous updates, with three main forms of giving being core to the faith. Here Augustus Della-Porta explains 1264 Statutes of Merton College Oxford have so many the concept of waqf and its origins elements of waqf instruments that they would be accepted as a waqf deed if written in Arabic. In addition to zakat (religious dues) and sadaqah The traditional concept of waqf in Sharia law is Augustus Della-Porta (voluntary charitable giving) the third type of charity Senior associate similar to permanent endowment under English law. in Islam is waqf, an endowment of property or T: 020 7551 7750 The founder dedicates his assets as set out in a waqf investment for a charitable purpose, whereby the [email protected] deed, which includes the purpose of the waqf and assets are retained with the profits applied for the how profits are to be distributed. A charity must Augustus advises charity charitable purposes. and social enterprise maintain property given to it under a permanent endowment; while the income can be spent, the clients on commercial, The concept of waqf goes back to the time of the contractual, governance capital cannot. This has the advantage of protecting Prophet Mohammed. One hadith reports the Prophet and charity law matters. the endowment, but is an inflexible way of holding as saying ‘When a man dies, all his acts come He works with a broad funds. range of not-for-profit to an end, but three; recurring charity (sadaqah clients, including Muslim jariyah) or knowledge (by which people benefit), or However, recent rulings mean that waqf – particularly and other faith-based a pious offspring who prays for him’. Establishing as a cash waqf – can be seen as a new philanthropic organisations and a waqf enables an ordinary voluntary act of charity model of sustainable social enterprise. In legal organisations working (sadaqah) to be repeated in perpetuity, so that in the Arab region. terms, it can be treated as expendable endowment a single act of giving becomes sadaqah jariyah rather than permanent endowment: subject to any (recurring charity). conditions attached to the endowment, the trustees will have a legal power to convert all or part of the An early example of waqf is found in another hadith capital into an income fund, which can be spent. where the Prophet Mohammed was asked by Omar ibn Khuttab how he could give away an orchard he A recent example is the waqf charity set up by Islamic owned. The Prophet responded telling him to make Relief, which allows donors to invest in Sharia- the land inalienable and give away the benefit (i.e. the compliant ‘waqf shares’, where donations are invested fruit) to the poor and needy. in property and the profits used to fund projects such as hospitals, schools and sustainable livelihood Waqf has played a very important socio-economic role projects. in Islamic history, providing not only the traditional places of worship, but also education, health services, Charities wanting to set up such a waqf fund should welfare, roads and bridges. It has also been used for ensure that the waqf deed is drafted carefully so that more unusual purposes, such as assisting pilgrims to it is Sharia-compliant and the funds donated to it go on Hajj, helping people to marry and looking after can be treated as expendable rather than permanent animals. endowment. Waqf reached its zenith in the 17th and 18th centuries, when it was estimated that in some Find out more Muslim-majority countries up to a third of cultivable Augustus’s article on the three main forms land was held as waqf. Since then much of what was of giving in the Islamic faith appeared in our waqf property has been centralised by the state, and Spring 2017 update: https://www.bwbllp.com/ much waqf property has become stagnant over time. knowledge/2017/01/30/faith-based-update- spring/ Some scholars have claimed that waqf influenced the development of the common law trust and was brought across to the English legal system by knights returning from the Crusades. One claims that the Faith-Based Organisations Update | Spring 2018 11.

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