Cash Waqf
وقف نقدي
Pronunciation: WAQF
An endowment of money rather than property, invested so that its returns fund a charitable purpose in perpetuity.
Definition
A waqf (perpetual charitable endowment) whose capital is money rather than land or buildings. The principal is preserved and invested in Shariah-compliant assets, and only the returns are spent on the designated cause, such as a mosque, school, scholarship fund, or community loan fund.
Classical scholars debated whether money could be endowed since it is consumed by use; the Hanafi school permitted it on the condition that the capital be invested and preserved, and contemporary bodies have accepted it. Cash waqf is the model behind many modern Islamic community foundations and donor-advised endowments.
Related Terms
Waqfوقف
An Islamic endowment - assets permanently dedicated to a charitable purpose.
Islamic Family Waqfوَقْف عَائِلِي إِسْلَامِي
A joint living revocable trust for Muslim couples, scholar-approved to manage assets in life and distribute by Faraid at death.
Sadaqah Jariyahصَدَقَة جَارِيَة
"Continuous charity" - a charitable act whose reward continues after the giver's death, such as endowing a well, school, or trust.
Mudarabahمضاربة
A profit-sharing partnership where one party provides capital and the other provides expertise.
Sadaqahصدقة
Voluntary charitable giving - distinct from obligatory zakat.
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Cash Waqf (وقف نقدي) - An endowment of money rather than property, invested so that its returns fund a charitable purpose in perpetuity. A waqf (perpetual charitable endowment) whose capital is money rather than land or buildings. The principal is preserved and invested in Shariah-compliant assets, and only the returns are spent on the designated cause, such as a mosque, school, scholarship fund, or community loan fund.
- An endowment of money rather than property, invested so that its returns fund a charitable purpose in perpetuity.
- Category: Charitable
- Related: Waqf, Islamic Family Waqf, Sadaqah Jariyah, Mudarabah, Sadaqah
Source: HalalWallet (halalwallet.ca)
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
Editorial Team, HalalWallet
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