Islamic societies have a long and rich tradition of philanthropy, which has shaped development throughout the Muslim world and given rise to various institutions, social, educational, cultural, and religious. One of the oldest civil society institutions, called the Wakf in Arabic or endowment, combined philanthropy features with a social service agency. This combination is what made Wakf a millennium-long success as a social institution. Hence, Wakf is a sustainable, ongoing charitable endowment “Sadaqah Jariyah,” mainly used to develop and support communities.
The Wakf system is based on the tradition of Prophet Mohammed (peace be upon him) and has been a long-established Muslim way of financing Islamic institutions. In the Wakf system, donations are locked in revenue-generating investments. The principal remains intact; only revenues are used to finance specified projects or services. A Wakf is essentially a charitable trust whereby a donor designates something to be used solely for the benefit and welfare of the society members, particularly the poor and needy. A restriction is placed on preventing the sale or new ownership by an individual or a group.
The Prophet, peace be upon him, first encouraged the concept of Wakf when Umar (RA) asked the Prophet, “Oh Prophet of Allah, I have valuable land in Khaibar. What do you wish I do with it?” The Prophet, peace be upon him, replied, “Give its benefits to charity while ensuring that it can no longer be sold nor bought nor be given away.” This hadith is the basis on which the scholars agreed that giving for a Wakf is encouraged in Islam. In another hadith, The Prophet of Allah SWT said; “When the human being dies, his deeds come to an end except for three: ongoing charity, beneficial knowledge, or a righteous child who prays for him.” Sahih Muslim.
