CASH-WAQF A NEW FINANCIAL INSTRUMENT FOR FINANCING ISSUES AN ANALYSIS OF STRUCTURE AND ISLAMIC JUSTIFICATION OF ITS COMMERCIALIZATION – Majid Khademolhoseini
Cash-Waqf means the dedication of some money from one’s possessions and establishing a Waqf based on that amount and offering it to the benefit of people generally or allocating it to make use of them by some segments of the community particularly. In this meaning and from theoretical and implemented point of view, some kinds of Waqfs have caused disputes.
In this study, we start with putting forward the definition and introducing different types of Waqf and then focus on Waqf‘‘s components and sources. Then, legal status of cash Waqfs will be evaluated. Also we focus on the development of Cash-Waqf management from theoretical perspective particularly in modeling the optimal cash Waqf management. The management of Cash-Waqf has a unique characteristic that conceptually is different from the management of foundation, charities or donation fund in Western perspective, i.e. Ford, Rockefeller, Carnegie, British Trust, etc. Waqf has a principle of perpetuity that makes it differ from a foundation, charity or ordinary donation fund as widely practiced in Western countries. Perpetuity principle means that the principal of Waqf should be preserved, but its benefit is available for repeating extraction whether for religious or philanthropic and righteousness purposes. Perpetuity in Waqf means that once a property is devoted as a Waqf, it remains so that until the Day of Judgment and no one can change it later on. So the property of Waqf can not be sold, transferred or liquidated. The ownership of Waqf property lies outside the Waqif (person who perform Waqf) or Mutavalli (person who entrusted to manage) but it belongs to Allah. So the Waqf property should be hold, maintained, preserved and prohibited from disposing. Finally, we will peruse Islamic (Shia) approach on models which we will depict.
Keywords: Cash-Waqf, Waqif (Founder), Mawquf ‘alaih (Beneficiaries), Mawquf (Property or Cash), Waqf Contract (Waqfieh), Mutavalli.