Introduction
Waqf (plural; awqaf), usually referred to as Islamic endowment is an age-long Islamic traditional socio-economic institution specially designed for equitable distribution of wealth and fulfillment of societal basic needs.
Linguistically, the term waqf is derived from the Arabic verb “waqafa” meaning to hold, delay or preserve. In line with this, waqf could be seen as an attempt to preserve or hold a property specifically for a certain use.
However, from a Shariah point of view, waqf is a charitable trust which is held for use into a certain purpose expressly specified by the endower (“waqif”). According to AAOIFI, waqf refers to making a property invulnerable to any disposition that leads to transfer of ownership and donating the usufruct of that property to beneficiaries.
It is a voluntary, permanent and irrevocable dedication of wealth be it in cash or kind to Allah. Awqaf (plural of waqf) usually serve the charitable and religious purposes especially in some developing countries where they have been properly managed.
In the past, waqf has contributed immensely to the socio-economic development of Muslim communities around the world. The proceeds of waqf assets have been deployed into various developmental projects such as health care, education, poverty alleviation, skill acquisition and youth empowerment.
Many Islamic banks have equally adopted the waqf model as an interventionist instrument for socio-economic development. For instance, in the year 1999, the Islamic Development Bank established the largest ever Islamic charitable endowment fund of about 1 billion dollar for charitable services throughout Muslim countries and communities[1]
Unfortunately, awqaf have become a lost or passive Islamic heritage in recent time. In Nigeria, there are reports of waqf properties that are under-utilized and which were established for religious, educational and social welfare purpose especially in the Northern part of the country.[2]
This article attempts to give an introductory insight into the concept of waqf and its social benefit with a view to creating the awareness needed for the resuscitation of this moribund Islamic heritage.
History and Significance
The history of waqf date as far back as about 1400 years. Though, there is no direct mention of waqf in the Quran, there are several verses of the Qur’an where Allah enjoined the believers to give charity out of their wealth.
One of such numerous verses is Quran chapter 2: Verse 261,
مَثَلُ الَّذِيۡنَ يُنۡفِقُوۡنَ اَمۡوَالَهُمۡ فِىۡ سَبِيۡلِ اللّٰهِ كَمَثَلِ حَبَّةٍ اَنۡۢبَتَتۡ سَبۡعَ سَنَابِلَ فِىۡ كُلِّ سُنۡۢبُلَةٍ مِّائَةُ حَبَّةٍ ؕ وَاللّٰهُ يُضٰعِفُ لِمَنۡ يَّشَآءُ ؕ وَاللّٰهُ وَاسِعٌ عَلِيۡمٌ
“The charity of those who expend their wealth in the Way of Allah may be likened to a grain of corn, which produces seven ears and each ear yields a hundred grains. Likewise, Allah multiplies in manifold the charity of anyone He pleases, for He is All-Embracing, All-Wise.”
The basis for Islamic waqf could be seen in one of the sayings of the Prophet (SAW). Narrated by Abu Huraira (RA), the Prophet (SAW) says:
“When a man dies, all his acts come to an end, but three: recurring charity, or knowledge (by which people benefit), or a pious offspring, who prays for him” (Muslim, 1992).
From this hadith comes the concept of recurring charity (sodaqotun-jaariyah). A recurring charity is that which is established on such a structure and arrangement that enables the charity-giver to earn the reward of charity on a continuous basis (even after his/her death) as opposed to a one-off reward.
According to AAOIFI [3], waqf is the on-going charity referred to in the Hadith, because the beneficiary does not own the waqf assets, and accordingly cannot dispose it.
Also, during the time of the Prophet (SAW), there are authentic reports that Umar donated his piece of land in Khaybar as waqf upon the advice of the Prophet.
Consequently, the harvest and profits of this land were then donated to the poor and the needy.
Another striking example of an ancient waqf was Uthman’s well popularly known as Bir-Rumah in Medinah.
There was a time in Medina (over 1400 years ago) when the people experienced a very serious drought leading to scarcity of water. Meanwhile, there was a well which belonged originally to a Jew and this well happened to be the major well containing sufficient quantity of water.
Seeing that this Jew was selling the water at a considerably high price, the Prophet (SAW) assured paradise to those who will buy the well and endow it to the people of Medina. Uthman (RA) bought this well paying huge sum and donated it as a waqf to the entire community. This water well has become a historic well in the city of Medina today.
Essentially, the idea of waqf implies Islam’s recognition of the non-profit sector. Muslim societies in the past have relied heavily on waqf assets for the development of the various sectors of their economy. For instance, it was reported that the island of Sicily , under the Islamic rule, had 300 elementary schools all of which were built by Awqaf (pluaral of waqf) and were also provided with waqf revenue for payment to teachers and school supplies.[4]
Several libraries were established and funds earmarked for research activities from the proceeds of the Awqaf. The health care sector also witnessed a similar development.
Types of Waqf
According to the AAOIFI Shariah standard, there are several permissible types of waqf, the most important of which are the charity waqf (al-waqf al-khayri), the family waqf (al-waqf al-ahli), the joint waqf (al-waqf al-mushtaraq) and self-dedicated waqf (al-waqf’ ala al-Nafs).
The charitable waqf is that in which its income/usufruct is primarily dedicated for a charitable purpose. The family waqf is the waqf in which the income/usufruct is reserved for specifically described persons, usually family members and relative. In the eventual demise or absence of these beneficiaries, the income goes to a charitable purpose.
The third type of waqf, which is the joint waqf is a hybrid of both charitable and family waqf. Here, the usufruct/income generated by the waqf asset goes to the designated family members as well as charitable purpose.
Finally, the self-dedicated waqf is that in which the waqif (endower) retains the income/usufruct of the donated property for himself as long as he is alive and indicates the charitable purpose which shall be entitled to the income of the waqf after his death.
Challenges and Way-Forward
In Nigeria, despite the potential of waqf to contribute to the real sector, the effectiveness of waqf institutions seems to be on a decline. This is due to several challenges militating against its administration and management in Nigeria.
Below is a summary of these challenges and possible recommendations to overcome them.
Lack of awareness
A major impediment to the growth of Awqaf is the lack of awareness and the dearth of knowledge about the philosophy and objective of Waqf. Serious efforts need to be chanelled toward creating the needed awareness.
Starting from the various institutions of learning, the study of waqf among other Islamic finance studies must be incorporated into our educational curriculum (primary, secondary and tertiary).
The religious leaders and organisations also have huge role to play in creating this awareness. Here, the Nigerian Supreme Council for Islamic Affairs (NSCIA) is deemed qualified to spearhead this cause and co-ordinate other Islamic organisations with a view to raising awareness and encouraging other Islamic organisations to have an agenda for waqf-oriented projects.
Also, trainings and sensitization should be organized for awqaf managers with a view to bridging their existing knowledge gap. Based on a study conducted in 2016 by the Nigerian Stability and Reconciliation Programme (NSRP), there is a huge area of research in the field of awqaf which need to be explored.
Efforts should be exerted to ensure that new research into awqaf are solution-oriented and not those that merely analyze the problems without providing clear and practicable solutions.
Monitoring of the awqaaf Institutions
Empirical research findings have shown that there are several waqf properties established long ago which are now either abandoned or redundant. Many of these waqf are in the northern part of the country where we have the bulk of the Muslim population.
In order to re-awaken this abandoned tradition, existing and future waqf should be properly monitored going forward.
The issue of effective waqf management and administration also comes to mind here. Nigeria can adopt a model similar to that of Malaysia where the State Islamic Religious Councils (SIRCs) are responsible for the management of waqf institutions[5].
These state councils should be made up of shariah scholars and industry professionals highly knowledgeable in law, financial reporting and asset management.
Instilling Culture of Charity through Family System
The underlying philosophy for waqf is basically charity. Without charity, there cannot be waqf. With this, we need to make a strategic effort in instilling charity culture into our value system.
Perhaps, the family unit seems the most basic unit through which this objective can be attained. Indeed, the popular saying, “charity begins at home”, truly exemplifies the concept of the family waqf.
Conclusion
Previous studies conducted on waqf revealed that the present situation of waqf in the Muslim world is undoubtedly unimpressive. Waqf institutions in many part of the world are not given the required attention and which has led to mismanagement, maladministration and in some cases total dilapidation of the waqf property.
Given the immense contribution of waqf in supporting the poor and needy and in promoting economic development, there can not be a better time to resuscitate this institution.
References
[1] M. Kabir Hassan and Mervyn K. Lewis 2007; Edward Elgar Publishing Limited page 281
[2] Dr. Adam Muhammad Abubakar (2015) , Enhancing Waqf properties through Islamic Investment Techniques in Nigeria
[3] AAOIFI Sharia Standard Book; Shar’iah Standard No (33) Appendix B. The Shar’iah Basis of the Standard pg. 832
[4] Monzer Kahf et al: The Islamic Economy, The Charitable Sector , American Journal of Islamic Social Sciences page 44
[5] Khan T (2015). Access to finance and human development-Essay on Zakat, awqaf, microfinance: An introduction of the issues and papers
Note: This article was first published in June 2020 on my linkedIn page
What’s up to every one, the contents present at this web page are in fact remarkable
for people experience, well, keep up the good work fellows.