Waqf khayri (charitable waqf)
A waqf whose income or usufruct is dedicated to a charitable purpose.
A waqf khayri is a charitable waqf: an endowment whose income or usufruct is dedicated to a charitable purpose, such as a mosque, school, hospital or relief for the poor. AAOIFI's waqf standard names it as one of the main types of waqf, next to the family waqf, the joint waqf and the self-dedicated waqf. Because the beneficiaries are a purpose rather than named people, the deed's statement of purpose and the trustee's reporting against it are what allow donors and supervisors to check that income is used as intended.
Sources
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.Waqf ahli (family waqf)A waqf whose income goes to specified persons, usually family members, and to charity when none remain.Cash waqfA waqf whose endowed asset is money, invested so that its returns fund the waqf's purpose while the capital is preserved.Nazir (waqf trustee)The trustee who manages a waqf according to the founder's conditions; also called the mutawalli.SadaqahVoluntary charity given to people in need, beyond the obligatory zakat.