Cash waqf
A waqf whose endowed asset is money, invested so that its returns fund the waqf's purpose while the capital is preserved.
A cash waqf is an endowment of money rather than land or buildings. The endowed cash is invested in permissible ways, or lent as benevolent loans, so that its returns serve the waqf's purpose while the original amount is preserved. It has a long history but was debated among the classical schools, and modern waqf regulations and Shariah boards set the conditions under which it operates.
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
WaqfAn endowment: an asset is dedicated so that its principal is preserved and its benefits go to a stated purpose.Nazir (waqf trustee)The trustee who manages a waqf according to the founder's conditions; also called the mutawalli.Qard hasanA benevolent loan repaid at face value with no return for the lender, often used for social and hardship lending.