CLASSIFICATION OF WAQF

Waqf can be divided into three main aspects, from the mawquf perspective, mawquf ‘alaih, and waqf methods.

Classification based on Mawquf

There are two main categories of waqf classification from the mawquf point of view, namely movable, and immovable waqf property.

a) Movable Waqf Property

Movable waqf property or manqul, is property and wakaf assets that can easily be carried, transferred or be changed from their original place, and can be immediately benefited such as cash, shares and sukuk, books, clothing and equipment, livestock and vehicles, intellectual property, etc. The debate on movable property is elaborated further in Chapter 6: Waqf of Movable Property.

b) Immovable Waqf Property

Immovable waqf property or ghair manqul is waqf property and assets that cannot be moved or transferred or altered from its original place such as land, and buildings. Discussion on immovable wakaf is explained further in Chapter 7: Waqf of Immovable Property.

Classification Based on Mawquf ‘Alaih

Generally, the classification of waqf from the mawquf ‘alaih point of view is divided into two, waqf ahli or waqf khayri

a) Waqf Ahli

Waqf Ahli, which is also referred to as waqf zurri, is dedicated only to the welfare and interests of family members or descendants of the waqif, determined by the waqf himself.

b) Waqf Khairi

This waqf is done solely for the purpose of welfare and public interest. Waqf khairi is divided into two categories, namely general and special waqf.

i. General Waqf

General waqf is a waqf created for the purpose of general charity permissible by syarak, such as for religious use or economic development of Muslims or the like. In this context, the trustee of the waqf can develop it with any shariah-compliant activity that brings positive results or benefits without being tied to a particular type of welfare or form of development, while the benefits can be distributed to any form of welfare whose rewards can continue to be enjoyed by the waqif.

ii. Special Waqf

Special wakaf is defined as a waqf created for certain charitable purposes that are permissible by syarak, such as for madrasahs or orphanages or the like. In this context, the trustee of the waqf needs to develop it as per the sighah of the waqif only. The benefits too, must be distributed as intended by the waqif.

Waqf Classification Based on Waqf Method

Waqf can be done through various shariah-compliant approaches that continue to evolve over time according to ijtihad. There are various classifications of waqf according to waqf methods, such as waqf irsod, waqf muaqqat, waqf musytarak, waqf musya ’, shares waqf, corporate waqf, and sukuk waqf.

a) Waqf Irsod

Waqf irsod means the surrender of any property as waqf by any State Authority, Federal Government or corporation, institution, organization or other bodies in accordance with Shariah. This type of waqf is a waqf that is handed over to the government administration for public interest, such as schools and hospitals. This law is permissible even though there are differences of opinion among scholars who state that it is not called waqf irsod, but only referred to as al-Irsod.

b) Waqf Muaqqat

Waqf muaqqat is waqf for a certain period only and not to last forever. There are differences of opinion among scholars in discussing the necessity of the implementation of waqf muaqqat. Imam Abu Yusuf recognized the concept of waqf on a periodic basis and did not accept the principle of al-Muktamad on waqf except by court decision. This opinion is similar to the view in the Maliki School, that is, the waqfed property will become the right of the waqif or his descendants when the waqf period expires.

c) Waqf Musytarak

Wakaf musytarak is a combination of several types of waqf into one, such as waqf created through a combination of waqf shares with istibdal, or a combination of waqf ahli or zurri with waqf khayri or the like.

d) Waqf Musya’

Waqf musya ‘means to endow any right over a part of any property owned jointly with other parties that cannot be divided. For example, two parties have rights over a house or a car. If one of the owners endows his share, according to Mazhab Syafie and Hanbali, this waqf is valid.

e) Waqf Haq Irtifaq

Haq al-Irtifaq is all kinds of property in the form of ‘aqar which serves as a facility towards another ‘aqar, then the facility of another ‘aqar is hindered. According to the scholars of Mazhab Syafie and Hanbali, this waqf is allowable because the property is valuable and can be traded. For example, a person who endowed only one floor of a building consisting of several floors, or an example of land used to make a path to a mosque, or an example of a roof used for shelter and so on.

f) Wakaf al-Iqtiqa’at

This waqf is land controlled by the government which is handed over to residents who have obtained permission for the land to be used for public purposes, but the ownership of the land is still subject to the government. Majority of scholars state that waqf of this type is invalid because it is not real property.

g) Wakaf al-Ain al-Muajjir

Wakaf al-Ain al-Muajjir is based on the concept of waqf of property that is being rented. The scholars of the Syafie and Hanbali schools say that this type of wakq is invalid because the endowed property should be permanent, while the Maliki school allows the waqf of benefits and does not require permanent nature of the endowed property.

h) Waqf of Shares

Waqf of shares means endowing shares in a company a person owns or endowing them through the purchase of new shares from a company.

i) Shares Waqf

Shares Waqf means the units of shares offered by any institution such as state Islamic religious council to encourage Muslims to waqf through cash by purchasing and waqfing the waqf share certificates forever because of Allah SWT for the benefit and welfare of Muslims. Generally, shares waqf will be offered to the public for immediate collection of contributions as a special fund to fund any waqf project that is being undertaken.

j) Corporate Waqf

Corporate waqf is an innovation as a result of adaptation of share waqf which is done in the form of musytarak waqf with the concept of combination between member waqf and khayri waqf and between special waqf and general waqf. Its implementation concept is when a corporate company (waqif) endows part of its shares (mawquf) to a subsidiary established under it (mawquf ‘alaih) with a specific purpose subject to the sighah used, where part of the benefits are reserved for member subsidiaries and some of the other benefits are for the distribution of public welfare. In this context, the subsidiary acts as the manager and administrator of the waqf (either as a mutawalli, nazir, or qayyim) and at the same time, as the beneficiary (mawquf ‘alaih) of the proceeds of the waqf shares.

k) Sukuk Waqf

The meaning of sukuk according to The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is a certificate that has a corresponding value. It represents the value of shares as a whole in the ownership of tangible assets, as well as services for a project or equity for investment activities. Sukuk also represents ownership rights over a particular investment or project that is backed up by underlying assets. There are three categories of sukuk distribution in general, namely government sukuk, corporate sukuk and quasi-government sukuk.

Wakaf sukuk is a method of waqf through a written agreement between the sukuk issuer and the sukuk holder, which states the deferred payment of capital as an investment, with the return of a certain proportionate amount of profit until the end of maturity. The entire payment of the capital invested by the investor must be settled by the sukuk issuer when the maturity period of the sukuk expires.

Waqf is an act of supererogatory worship that is prescribed and highly encouraged in Islam. The reward is huge and continuous as long as the endowed property is still taken advantage of. It is an imperfect possession because the selection of ‘ain (endowed goods) belongs to Allah SWT. Meanwhile, the benefit or result of the waqf belongs to the mawquf ‘alaih, that is, the party who is determined to receive the benefits of the waqf. The verses of the Qur’an and hadith mention a lot about the encouragement to perform waqf and the benefits obtained to the waqif.

Verses from Surah al-Baqarah: 195

"And give (your property) in the Way of Allah (to others) and do not throw yourselves into danger and become the best of the best, surely Allah loves the good-doers (‘Muhsinûn’ those who have submitted their physical bodies to Allah)." (Surah Al-Baqarah: 195)

Verses from Surah al-Baqarah: 219

"They ask you about wine and gambling. Say: 'In both of them, there is a great sin and (some) means of benefit for mankind, but the sin of them is greater than their benefit.' And they ask you what they ought to spend (for the sake of Allah)? Say: 'That which is beyond your needs.' Thus Allah explains to you the Verses, so that you may ponder over the wisdom contained in them." (Surah Al-Baqarah: 219)

“It was narrated that the Prophet (peace and blessings of Allaah be upon him) said:”

Meaning:

“When a human being dies then all his deeds are cut off, except for three things, namely charity jariah, knowledge that is utilized, or a pious child who prays for him.” (Narrated by Muslim)

In another hadith, the Prophet SAW said:

Meaning:

“Indeed, among the things that will accompany a believer from his deeds and goodness after his death are (seven things): Knowledge learned and then taught to others and continued to spread, pious children left behind, and the Quran inherited or the mosques he built, the houses of travelers on the journey he built, the streams he flowed or the alms taken out of his property when he was healthy, and the life that accompanied him after his death.” (Narrated by Ibn Majah)

Also the words of the Prophet SAW:

Meaning:

“From Ibn Umar (RA), he said: Umar got a piece of land in Khaibar then he came to the Prophet SAW to ask for guidance on how to manage it, he said: ‘O Messenger of Allah! I have got a piece of land in Khaibar. Never have I acquired a better property than this.’ He said: ‘If you like, hold on to the land (i.e., endow the land) and you donate its benefits.’ Then Umar gave alms from the land on the condition that his land could not be sold and bought and inherited or gifted. Umar gave alms of the proceeds to the poor, the relatives and to free the slaves also for those who jihad in the way of Allah as well as to provide for those who were on their way and to be a meal for guests. The person who manages it can eat some of the produce in a good way and can feed his friends simply.” (Narrated by Bukhari and Muslim)