by Dr. Ildus Rafikov
In the evolving landscape of the 21st century, the concept of waqf, or endowment fund, holds immense potential for addressing various socio-economic challenges within Muslim communities and beyond. Awqāf (plural of waqf) have historically played a crucial role in supporting educational, healthcare, and social welfare institutions. Institutions such as mosques, universities, hospitals, bazaars, caravanserais, and even water wells and fruit orchards were often established as endowments in Islamic civilization. However, to ensure their sustainability and efficacy in the digital age, it is important to address certain prerequisites. For the purposes of this article, they are categorized into basic, intermediate, and contemporary operational. The essay explores these prerequisites, emphasizing their significance in developing a robust and sustainable waqf system.
The prerequisites in question will be briefly discussed without going into extensive detail, as dictated by the requirements of this blog. Nevertheless, it is important to note that this subject has been extensively researched and studied at the academic level, with numerous case studies and examples drawn from various countries. Consequently, the author recommends that readers consult relevant research articles to gain a deeper understanding of this well-established field of study. This blog article is the result of this author’s presentation during an international seminar on sustainable endowments in the digital age organized on May 29, 2024, by “Nur-Mubarak” University of Islamic Culture in Almaty, Kazakhstan.
Basic Prerequisites: Psychological and Cultural Factors
- Psychological Factors
At the core of sustainable awqāf lies the psychological and religious motivation of individuals. Giving and spending is a personal choice but is strongly encouraged throughout the Qur’an and exemplified in the life of the Prophet Muhammad. The essence of waqf is that of charity, whereby Muslims are invited to support their communities through mutual help and charity. The psychological inclination towards doing good and towards giving, driven by the belief in Allah and moral values, is a fundamental prerequisite for the sustainability of awqāf.
For sustainable awqāf, there needs to be a strong individual motivation to give. This can be cultivated through continuous education about the religious and social benefits of mutual support and social cohesion. Islam emphasizes the concept of sadaqah jariyah, or continuous charity, which assures believers of ongoing rewards for their charitable actions even after death. Reinforcing these traditions through Friday khutbahs, educational programs, successful case studies presented through TV, radio, print and digital media, and community initiatives can significantly enhance the psychological readiness of individuals to participate in waqf. Research shows that religious communities are more likely to engage in charities, volunteer or help a stranger. This is evident in the latest Charities Aid Foundation’s World Giving Index 2022 report. Interestingly, according to this report, Indonesia has been the most charitable nation on earth for five years in a row. - Cultural Factors
Alongside individual motivations, advancing a culture of giving within the broader community is essential. A culture that values and promotes charity ensures a steady flow of contributions to awqāf. This cultural inclination towards giving can be cultivated through social norms, traditions, and communal values that prioritize collective well-being over individual gain.
Communities with a strong tradition of mutual aid often have established mechanisms for charitable giving, such as community fundraising events, community assistance for its members in times of need (e.g. gotong-royong in Indonesia and Malaysia, harambee in Kenya, naffir in Sudan, bayanihan in the Philippines, talkoot in Finland, ömä among Kazan tatars) awareness campaigns, and various forms of recognition of donors. Promoting these cultural practices through media, educational institutions, and community leaders can embed the value of waqf in the societal fabric. Additionally, highlighting successful waqf initiatives and their impact on the community can serve as powerful motivators, encouraging more individuals to contribute
Intermediate Prerequisites: Ownership of Assets and Wealth
- Sufficient Ownership of Assets
For awqāf to thrive, there must be sufficient ownership of assets that can be endowed. These assets can include land, buildings, financial resources, money, or any valuable property, including time, that can generate income or serve the community’s needs. The availability of such assets is a crucial intermediate prerequisite, as it directly impacts the capacity of awqāf to function and expand. We must realize, however, that most individuals possess something that they can give. As the Prophet instructed believers to protect themselves from the fire by giving even a small piece of a date, it is evident that giving charity is not limited to the wealthy, but is instead an obligation for every able individual, regardless of how small or seemingly insignificant their contribution may be. Consequently, the establishment of awqāf is not limited to specific assets such as immovable or highly valuable properties but can be created through the small contributions of many donors who give as little as a few coins, some food items, or even their time.
Encouraging people and entities to participate in waqf requires a conducive environment where asset ownership is protected and respected. Moreover, policies and regulations that facilitate property ownership, trust and transparency, ensure legal protection of endowed assets. Also, tax incentives for endowments can significantly boost the willingness of asset owners to contribute to waqf. On the other hand, corruption significantly diminishes willingness to give. - Wealth Distribution and Economic Stability
A fair distribution of wealth within the community is also vital for the sustainability of awqāf. Economic stability and equitable wealth distribution ensure that more individuals and businesses can make significant contributions. Addressing economic disparities through inclusive growth policies, social welfare programs, and support for small and medium enterprises (SMEs) can enhance the overall economic capacity of the community to support awqāf.
Government and private sector initiatives that promote financial literacy, entrepreneurship, and economic empowerment can play a critical role in this regard. By enhancing the economic status of individuals, especially in marginalized communities, these initiatives can create a larger pool of potential contributors to awqāf.
Contemporary Operational Prerequisites
- Legal Framework
A robust and supportive legal framework is indispensable for the effective management and sustainability of awqāf. This framework should provide clear guidelines on the establishment, management, and governance of awqāf, ensuring that they operate within the bounds of law.
Legal provisions should address the registration of waqf properties, governance structures, fiduciary responsibilities of trustees, and mechanisms for dispute resolution. Ensuring legal protection for waqf assets against mismanagement, fraud, and illegal expropriation is also crucial. Collaboration between Islamic scholars, legal experts, and policymakers can help develop comprehensive legal frameworks that support the sustainable growth of awqāf.
- Technological Capabilities
In the digital age, leveraging technology is a key operational prerequisite for sustainable awqāf. Technological advancements can enhance transparency, efficiency, and accountability in waqf management. Digital platforms for asset management, online donation portals, and blockchain technology for secure record-keeping are some of the technological tools that can transform awqāf operations.
Digital platforms can provide real-time tracking of waqf assets, automate financial reporting, and facilitate transparent transactions. Blockchain technology, with its immutable ledger system, can ensure that all transactions and changes in asset ownership are recorded securely, enhancing trust among donors and beneficiaries.
This new framework consists of an interconnected web of concepts, objectives, values, commands, universal laws, groups, and proofs derived from the Qur’an and Sunnah. By grounding our approach in these primary sources, we can ensure that our economic models are not only theoretically robust but also ethically sound and practically applicable. - Financial Institutions and Instruments
The development of relevant financial institutions and instruments tailored to the needs of waqf is another critical prerequisite. Islamic financial institutions, such as banks and investment firms, can offer products and services designed to support waqf initiatives. These might include Shariah-compliant investment options, waqf funds, and modern financing solutions for waqf projects.
Innovative financial instruments, such as sukuk (Islamic bonds) and waqf shares, can provide new avenues for raising funds and generating income for waqf. These instruments can attract a broader range of investors, including those looking for socially responsible investment opportunities that align with Islamic principles.
- Human Capital
The effectiveness and sustainability of waqf institutions depend significantly on the quality of human capital managing them. This includes administrators, trustees, financial managers, and legal advisors who are well-versed in both Islamic principles and modern management practices. Investing in training and capacity building is essential to equip these individuals with the necessary skills and knowledge.
Educational programs, workshops, and certifications in waqf management, Islamic finance, and related fields can help build a competent workforce. Collaboration with universities, research institutions, and professional bodies can facilitate the development of specialized curricula and training modules. Additionally, fostering a culture of continuous learning and professional development within waqf institutions can ensure that they remain adaptive and innovative in the face of changing challenges and opportunities.
Conclusion
The sustainability of awqāf in the digital age hinges on a multifaceted approach that addresses psychological, cultural, economic, legal, technological, and human capital prerequisites. By encouraging individual and communal motivations for giving, ensuring sufficient asset ownership and economic capacity, and developing robust operational frameworks, waqf institutions can thrive and continue to play a vital role in socio-economic development.
Promoting a culture of giving through education and community engagement, alongside supportive legal and economic policies, can create an enabling environment for awqāf. Leveraging technology and developing relevant financial instruments can enhance the efficiency and transparency of waqf operations. Finally, investing in human capital is crucial for effective management and governance of waqf institutions.
By addressing these essential prerequisites, Muslim communities can ensure that awqāf remains a powerful tool for social welfare and development in the digital age, fulfilling their intended purpose of benefiting society for generations to come.
this article is written by:
Dr. Ildus Rafikov, MI Vice President – Research