Reviving the legacy of Awqaf…
The National Waqf Fund (NWF) seeks to renew and revive the noble institute of Awqaf (Permanent Endowment or Trusts) that have been at the centre of the Islamic community and economy for centuries. Famous Awqaf of the past have sustained great institutions of the past and present from universities to hospitals and provided donors to benefit their communities and receive the rewards, literally forever.
NWF hope to revive this practice of giving to empower Muslims and communities and lift the burden off charities continuously asking donors who are becoming increasingly challenged by the number of projects and lack of change.
The NWF will also enable charities to diversify their income streams by investing reserve income in shariah compliant investments that will grow and support their vital work over time.
Frequently Asked Questions
1. What is a Waqf and the National Waqf Fund?
A Waqf (Awqaf plural) is an Islamic endowment, usually of property or land, which is held in trust and used for a charitable or religious purpose. The designated ‘Waqf’ is thus used permanently to benefit the relevant causes either directly by use of the waqf, e.g. a hospital or university, or it is used indirectly by generating income from the asset which is then used for the charitable purposes, such as rent from a residential or office building.
2. How does giving to Waqf differ from other forms of giving such as Zakat, Sadaqa etc?
Awqaf are permanent endowments such as buildings, land and other assets that can be used continuously for charitable or religious purposes. Zakat is a mandatory portion of your savings that has to be given in accordance with the teachings of the Quran and Sunnah of the Prophet, setting up a Waqf is not mandatory. Sadaqa is considered general charity and giving to NWF can be considered a specific form of ‘Sadaqa’.
3. Can I donate my Zakat to NWF?
Zakat can only be given to the categories Allah has mentioned specifically in the Quran (Surah Tawbah verse 60) and donating to or setting up a Waqf is not considered to be Zakat eligible.
4. Is there a minimum I need to donate to invest in a Waqf?
Traditionally Awqaf were buildings or land that were handed over to the relevant authority to benefit the public, such as universities and schools. The NWF model allows much smaller donations that we can then pool together and invest in assets such as property. The income generated from these assets is thereafter distributed to the causes according to the agreed criteria.
In short, there is no minimum you can donate.
5. How do you keep the fundraising, investment and grant giving departments independent from each other?
NWF has been setup to ensure complete transparency and independence of our fundraising, investment and grant management departments by ensuring they are each managed by their own committees that have decision making that is not reliant upon each other.
The everyday fundraising and operations of the organisation is managed by the operational team, led by the CEO who reports into the directors and trustees of the charity.
The Investment committee consists of the advisors and consultants that are overseen by our shariah board to ensure our investment choices and partners are shariah compliant. Our investment partners ensure that the performance of these investments are managed like any other investment portfolio.
Finally, our grant making process to charities is fully compliant with both best practice guidelines from the charities commission and HMRC advice. Our grant making department also has criteria in place for charities to apply and report on the funds distributed. The process and criteria are detailed here.
One Donation, Many Rewards
We want to find the most effective ways and strategies to create income streams to facilitate charitable work. We also want to find ways to build our Jannah not just for today but also, long after we are gone.
A waqf is not about making a profit, it’s about creating value. We are currently working with highly skilled professionals that understand the importance of sustainable long-term change. We seek to establish operational and sustainable income streams for charitable causes through the efficient and Shariah Compliant investment of donations by individuals and institutions. A waqf is an independent financial sustainable fund that will grow and have a compounding impact on the Muslim world.
There are numerous examples of how a Waqf has created and sustained societal change over the years and as we know this form of Sadaqah Jariyah will be forever giving and forever rewarding.
We believe, there is a smarter way to become sustainable. We intend to revive the prophetic tradition of a Waqf and create sustainable revenue streams for charitable causes through shariah-compliant investments.
The Companion Jabir said: “There was no one among the Companions of the Messenger of Allah (peace and blessings of Allah be upon him) who had the means, but he would set up a Waqf.”
A Cherished Legacy
The institution of Waqf involves the endowment of privately owned property, assets, and beneficial output, for a charitable purpose in perpetuity. Individuals can donate land, buildings and other assets that generate some sort of income or return, like rent from property or water from a donated well.
Muslims of the past set up trusts for every kind of need, from supporting widows and wayfarers, to replacing broken utensils and maintaining stray dogs. Learn about how the National Waqf Fund helps everyone setup their own legacy.
How does it work?
Get In Touch
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