Waqf Governance and What You Should Know

Hajiya Amina, do you know I have read about many waqf institutions that have gone into extinction. One of the causes is due to lack of effective waqf governance?

Please, Ali, what is waqf governance? She asked.

I responded that to understand waqf governance better you need to understand what is waqf?

I already understood what waqf is about but waqf governance, she said.

So! You know that a reminder benefits a believer. Let me refresh your memory of what waqf is about, I replied.

Waqf  is an Islamic legal concept that refers to the endowment or permanent dedication of assets, typically property or funds, to be used for specific charitable or religious purposes, I explained to her.

I further explained that these Waqf assets are held in perpetuity, and the income generated from these assets is used to support the designated purposes, such as maintaining mosques, funding education, providing healthcare, and supporting the poor and needy.

Please tell me about waqf governance, she demanded.

Waqf governance refers to the management and oversight of waqf assets and their utilisation according to Islamic principles, I defined.

And to make waqf governance effective it is crucial to ensure that the assets are used efficiently and transparently, and that the intended beneficiaries receive the support they need. 

I went further to highlight some of the key aspects of waqf governance which are:

• Legal and Regulatory Framework
• Trustees and Management
• Transparency and Accountability
• Investment and Income Generation
• Beneficiary Identification and Support
• Legal Protection
• Education and Awareness
• Community Engagement
• Adaptation to Modern Challenges

Please, could you throw more light on these aspects of waqf governance? She requested. 

1. Legal and Regulatory Framework: It is one aspect of waqf governance. There is a need to have  laws and regulations governing waqf activities in a Muslim dominated countries.  These legal frameworks define the legal structure for creating, managing, and utilising waqf assets. They also address issues such as ownership, inheritance, and the appointment of trustees.

2. Trustees and Management: Waqf assets are typically managed by trustees or an administrative body known as the waqf board or council. Trustees have the responsibility to manage the assets in accordance with the waqf’s purpose and Islamic principles. They make decisions about investments, disbursements, and maintenance of waqf properties.

3. Transparency and Accountability: Effective governance requires transparency in financial matters and decision-making processes. Trustees are accountable to the beneficiaries and the wider community for their actions and decisions. Regular reporting and audits help maintain transparency and build trust.

4. Investment and Income Generation: Waqf assets should be invested prudently to generate income. The income is then used to fund the specified charitable or religious purposes. Investments must align with Shariah-compliant principles, avoiding interest-based transactions and unethical investments.

5. Beneficiary Identification and Support: The primary purpose of waqf is to benefit specific groups, such as the poor, orphans, and the community at large. Governance mechanisms need to ensure that these beneficiaries are identified, supported, and that their needs are met effectively.

6. Legal Protection: Waqf assets need legal protection to prevent misuse or misappropriation. Legal mechanisms should be in place to safeguard the assets and ensure they are not diverted from their intended purposes.

7. Education and Awareness:  Trustees and those involved in waqf governance should have a deep understanding of Islamic principles, legal frameworks, financial management, and ethical considerations. Continuous education and training are essential to ensure effective governance.

8. Community Engagement:  Waqf governance should involve the local community to some extent, as they are often the primary beneficiaries of waqf activities. Engaging the community can help ensure that the waqf’s activities are aligned with local needs and priorities.

9. Adaptation to Modern Challenges:  Waqf governance must also address contemporary challenges, such as changing economic conditions, evolving legal environments, and technological advancements.

Thank you! Waqf governance is like corporate governance, She said.

Yes! But with little difference. I responded.

I added that waqf governance aims to balance the preservation of the waqf’s Islamic principles and values with efficient and responsible management of assets for the benefit of society. It requires a combination of legal, financial, ethical, and community-focused considerations.

Thank you for explaining this better! She said, see you next time I am going out now.

Don’t forget to share with your friends. Thank you. Good bye, I said.