Waqf
An endowment: an asset is dedicated so that its principal is preserved and its benefits go to a stated purpose.
Waqf is an endowment in which the founder dedicates an asset so that its principal is preserved and its benefits or income go to a stated charitable or family purpose. The asset is managed by a trustee, the nazir or mutawalli, according to the founder's conditions. AAOIFI has issued a governance standard on waqf and an accounting standard on financial reporting by waqf institutions.
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
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.ZakatAn obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.