Alhassanain(p) Network for Heritage and Islamic Thought

CASH-WAQF:

A NEW FINANCIAL INSTRUMENT FOR FINANCING ISSUES: AN ANALYSIS OF STRUCTURE AND ISLAMIC JUSTIFICATION OF ITS COMMERCIALIZATION

Majid Khademolhoseini

khademalhosseini@isu.ac.ir

BSs in Finance

Imam Sadiq University

Table of Contents

Abstract: 3

Introduction: 4

Definition of Cash-Waqf: 6

Types of Waqf: 7

Legitimacy of Cash-Waqf: 9

Sources of Cash-Waqf: 10

Cash and E-Waqf Fund: 10

Per-square Feet Value Certificate: 10

The Issuance of Sukuk: 10

Iqbaz (Receiving): 11

Not to Be Suspend: 12

Waqif ejection: 12

Perpetuity: 12

Conditions relating to Waqif: 13

Bulugh (Maturity), Aql (wisdom) & liberty: 13

To be owner: 13

Not to be Insolvent: 13

Conditions associated with Mawquf (property or Cash): 13

Possibility to make profit from it and to be perpetual contemporary: 13

Possibility of Qabz: 13

To Be in Dominance of Owner: 13

Merit  to own it: 13

To Be Present: 13

Waqf Profit Be lawful For him: 13

To Be Specify: 14

Conditions associated with Mutavalli: 14

Be Aqil, Baligh, Rashid & Trusty: 14

Current Application of Cash-Waqf: 14

[Models of Waqf] 15

I) Waqf Shares Model: 15

II) Corporate Cash-Waqf Model: 16

III) Deposit Product Model: 17

IV) Waqf Mutual Fund Model: 18

V) Wakalah with Waqf Fund: 19

Establishment of a Cash-Waqf Financial Institution (CWFI): 20

Corporate Cash-Waqf Model: 21

Deposit Product Model: 21

Wakalah Model: 21

Conclusion: 22

References: 23

Notes 25

Abstract:

Cash-Waqf means the dedication of some money from one's possessions and establishing aWaqf based on that amount and offering it to the benefit of people generally or allocating it to make use of them by some segments of the community particularly. In this meaning and from theoretical and implemented point of view, some kinds ofWaqfs have caused disputes.

In this study, we start with putting forward the definition and introducing different types ofWaqf and then focus onWaqf ''s components and sources. Then, legal status of cashWaqfs will be evaluated. Also we focus on the development ofCash-Waqf management from theoretical perspective particularly in modeling the optimal cashWaqf management. The management ofCash-Waqf has a unique characteristic that conceptually is different from the management of foundation, charities or donation fund in Western perspective, i.e. Ford, Rockefeller, Carnegie, British Trust, etc.Waqf has a principle of perpetuity that makes it differ from a foundation, charity or ordinary donation fund as widely practiced in Western countries. Perpetuity principle means that the principal ofWaqf should be preserved, but its benefit is available for repeating extraction whether for religious or philanthropic and righteousness purposes. Perpetuity inWaqf means that once a property is devoted as aWaqf , it remains so that until the Day of Judgment and no one can change it later on. So the property ofWaqf can not be sold, transferred or liquidated. The ownership ofWaqf property lies outside theWaqif (person who performWaqf ) orMutavalli (person who entrusted to manage) but it belongs to Allah. So theWaqf property should be hold, maintained, preserved and prohibited from disposing. Finally, we will peruse Islamic (Shia ) approach on models which we will depict.

Keywords:Cash-Waqf ,Waqif (Founder),Mawquf 'alaih (Beneficiaries),Mawquf (Property or Cash),Waqf Contract (Waqfieh),Mutavalli.

Introduction:

From historical point of view there is no precise history to identify "What time was the emersion ofWaqf exactly?" However from some historical surveys we can deduce thatwaqf was originated at the same time of synagogues and shrines emersion which had some vows to consume in charity purposes and restructuring of them (e.g. shrines). So not onlyWaqf was not created by Islam presence, but also it has been a rational deed(Hăshemi Nasab,1999,P.109).Some inductions on this claim are such as:

  Imam Khomeini in his book said:

"Waqf was common in other nations, even it probably have been common on impious nations"(Khomeini Mousavi, Vol.3, P.81).

Dr Abouzohre in his book stated:

"Before the emersion of Islam,Waqf was prevalent in other names. As far as we concerned there were shrines, synagogue and even some mosques (e.g. Al-Aqsa mosque ) that so many lands and properties were allocated for their maintenance by beneficent people. Therefore we can't assume whose ownership was for some specific people; those lands and properties and the income which was made form them were consumed for people who worshiped in those buildings"( Hăeri Yazdi, 2002, P.44).

Consequently, althoughWaqf has played a considerable role before the emersion of Islam, Islam was the first religion that developed its legal and regulated form.

Islamic jurisprudents believe that initial building which consecrated for worshiping wasKa'bah . In addition, along the history, there were so many shrines, synagogues, churches and such these buildings which consecrated for doing religious deeds and ceremonies (Săfi, 2006, P.62).

The history of Islam shows thatQuba mosque inMedina was the first foundation which was endowed byProphet Mohammad (Peace be upon him) in 622 A.C. It is stable nowadays but in extending structure (Shakoori, 2007, P.10 & 11).

As we mentioned in the topic, this paper is intent on discussing aboutCash-Waqf . So in following the most of materials are aboutCash-Waqf . Previously,Waqf of buildings and lands were the most popular forms ofWaqf . Nowadays,Cash-Waqf has become increasingly well-known particularly because of its flexibility which allows distribution of theWaqf’s potential benefit to the poor anywhere (Mannan, 1999, P.5).

       Although, some historians believe that initial root ofCash-Waqf returns back to 8th century in Islamic era (Saădat Far; Dădgar, 2008, P.3) - while various questions about the usage of suchWaqf were asked from "Zafar Ibn Hazil" and he answered that those amount of money have to be accomplished byMudzarabah Contract - others believe that after emersion ofCash-Waqf in Rome, it was firstly introduced in Ottoman era in Egypt (Dian Masyita, P.2). Professor Mannan then socializedCash-Waqf in Bangladesh through Social Investment Bank Limited (SIBL). SIBL issuesCash-Waqf Certificate to collect funds from the rich and to distribute gains of the managed funds between the poor (Mannan, 1998, P.10). Like those of Bangladesh, in other Islamic countries, most of people are poor. Therefore, effectiveness of cashWaqf certificate program to help reduce poverty in Bangladesh gives hope that a similar program can be successfully implemented in other countries. So, by the time, thisWaqf model has developed day to day. These days this model is expanded through most of Islamic and even Western countries.

  There are two ideas inShia school aboutCash-Waqf , some jurisprudents believe that it is not acceptable e.g.Mohaqeq Helli (Mohaqeq Helli, 1982, Vol.3, P.444),Sheikh Tousi (Tousi, Vol.3, P.288) and others are in contrast e.g.Shahid Săni (Shahid Săni, 2001, P.520) andMămaqăni (Mămaqă ni, 1983, P.322 & 323). The believers of later idea assume that the significant conditions ofCash-Waqf accuracy are based on two components 1) to make juridical profit from those cash, 2) and the origin of cash must be survival perpetually.

According to precede statements, firstly we focus onWaqf in general and then discuss onCash-Waqf in details.

Necessity ofCash-Waqf Projects Construction andWaqf Institutions :

Cash-Waqf a special charitable endowment fund, is expected to become one of the alternative instruments for the poverty alleviation programs in worldwide particularly in Islamic countries. These programs require huge amount of fund that can not be provided thoroughly by the government. Therefore, initiation of new sources of fund for such a program is inevitable. In the Islamic socio-economic concept, there is a source of social fund that is economically and politically free of charge, namelyCash-Waqf . In this concept,Mutavalli (Cash-Waqf Fund manager) collects the fund fromWaqif and invest the money in the real sector (mainly Small & Medium-sized Ventures) and in anyShariah based investment opportunities.

Mutavalli will then allocate all profits and returns gained from the investment to any poverty alleviation program to enhance the quality of poor people’s life, such as free education and health services, cheap basic food, etc. He (Mutavalli ) is obliged to maintain the amount of fund in such a way that does not go below the initial amount. Therefore,Mutavalli not only should be highly capable but also needs a financial institution which has been proven to be experienced, highly capable and effective in helping SMEs development efforts. Then such a micro-financing program is considered as the most vital portfolio in the poverty alleviation program. Therefore, it’s necessary to design an instrument which is able to control the endowment fund management especiallyCash-Waqf .

Definition of Cash-Waqf:

Waqf means appropriation of theMawquf (property) with its separation from private ownership and dedication of its usufruct to charitable purpose. SoCash-Waqf according to upon definition means      "the devotion of an amount of money by a founder and the dedication of its usufruct in perpetuity to the prescript purposes" (Magda Ismail Abdel Mohsin, 2008, P.4)

Types of Waqf:

Waqf or endowment is a well-known issue in area of Islamic economic and finance .In general,Waqf could be categorized based on five aspects i.e. timing, legitimacy, Beneficiaries, usage area andobject of Waqf

It is generally accepted that the timing ofWaqf must be "Permanent". However some jurisprudents believe that it could be "Temporary" in accordance to theWaqif view, which is calledHabs . In terms of the legitimacy ofWaqf , it could be "Legitimate"-adjusting with religious respect- or "Illegitimate". In terms of thebeneficiary ofWaqf , it could be divided into "Family" (specific purpose), "Public" (charitable purpose) and "Mushtarak"(consists of both purposes). However, from the managerial point of view,Public Waqf is better than theFamily one, since it gives more flexibility. In terms of the usage type ofWaqf , it could be categorized to "Intifa'" such as establishing a school on your personal land and "Benefit" whose purpose is making profit. In terms of the object ofWaqf , generally it could be "Moveable" or "Immoveable"(Saiyăh, 2007, P.5 & 6). This categorization is illustrated in figure 1:

In above we argue aboutWaqf and its different types according to Islamic jurisprudence up to now. Whereas, from historical point of view, most ofWaqfs has performed on real capital, "Cash-Waqf " don’t has played a distinguished role in Islamic economic yet. Therefore, its name didn't come inWaqf categorization figures .But basically it is placed under "Movable Waqf ". As mentioned before, this paper focuses onCash-Waqf and its establishment. So we define it more exactly by introducing different models ofCash-Waqf , their functions, Islamic restrictions, legitimacy and so on.

Components ofWaqf:

  EveryWaqf has some components such as:Waqif (Founder),Waqf Contract (Waqfieh),Mawquf 'alaih (Beneficiaries),Mawquf (Property) andMutavalli (Dian Masyiat & Erie Febrian, 2004, P.6) which are described in follow:

Waqif : A person who endows his property or cash to charitable purposes.

Waqf Contract : The way in which aWaqif states his/her asset or fund asWaqf.

Mawquf 'alaih : Persons who are or areas which are the purpose ofWaqf . In other word, those people of areas entitled to benefit from return ofWaqf .

Mawquf : Assets or fund which are endowed asWaqf in charitable purposes and so on. In this article regarding to our goal, we use "Cash " instead of "Mawquf " because we are going to apply someCash-Waqf methods.

Mutavalli : A person or institution who is assigned as legal custodianship overMawquf which is not belonging to him in order to follow endowment same asWaqf Contract .

Legitimacy of Cash-Waqf:

Although, the term "Waqf " doesn’t appear in the "Quran " but Muslim jurisprudents obviously deduced its legitimacy from some "Hadith " and "Ayeh "[1] which their interpretation implyWaqf (Abidolkabisi, 1986, P84). Because of our tight opportunity and despite there are so many "Hadith " on this regard; we only point to twoHadith :

The first that points toWaqf generally[2] :

From "Abi Horeireh " who quoted from Prophet Mohammad (peace be upon him):"When a person dies, his deeds will separate from him excepting in three cases: recurring charities, beneficial knowledge and righteous child who preys him/her" (Năsif, 2003, Vol.2, P.243).

But the second that point to our goal, it signifiesCash-Waqf which was augmented under "Waqf al-darahim &al-dananir " in Islam school.

The words about this issue are in follow[3] :

Waqf al-darahem andal-dananir (dirham and dinar endowment) is reliable providing that we can make profit from it that is perpetual contemporary. But it can not be transferred, lent or mortgaged after endowing, because transferring is not possible, while it is reliable to be leased. (Àle Kăshif'u Al-Ghitae', 1984, Vol.2, P.78)

Sources of Cash-Waqf:

The accumulated funds for the construction ofCash-Waqf Project could be realized through setting up of three instruments namely;Cash and E-Waqf Fund ,Per-square Feet Value Certificate and theIssuance of Sukuk (Abbdullaah Jalil & Asharaf Mohd Ramli Abdul, 2008, P.3). These instruments provide an opportunity for the donors to dedicate their wealth forWaqf purposes according to their preference as stated below:

Cash and E-Waqf Fund:

Cash and E-Waqf Fund is considered as the easiest means for the public to joinWaqf scheme because they are only obliged to donate their money in cash or deducting from their bank account viaE-Waqf facility. As shown in figure2 the accumulated fund will be managed byMutavalli who is acted as an agent on behalf of theWaqif based onWakalah Contract . UnderWakalah Contract ,Mutavalli is responsible to channel the fund for project construction and the balance will be returned back to the fund for future project.Wakalah Contract is deemed more practical due to the difficulty of getting permission to theWaqif to exchange (Istibdal ) cash money into immovable property. Upon getting the approval byWaqf Project management,Mutavalli is allowed to use the fund and appoints contractor for the construction ofWaqf Project .

Per-square Feet Value Certificate:

The certificate of per square feet value forWaqf Project will be offered to the public once the details of the intended project are finalized. The essential elements of the project such as the type of construction project, the cost of the project, the price of each certificate and the duration of the project must be disclosed in details. Any individual or institutions must pay certain amount in order to get the certificate e.g. 30$ per square feet. The pool of money accumulated will be directed to our purposes.

The Issuance of Sukuk:

DevelopingWaqf assets through the issuance ofsukuk is another potential instrument to be applied byWaqf administrations. This instrument is still underdeveloped in Islamic countries although some countries are well known for pioneering the issuance of varioussukuk at the domestic and global stages such as Malaysia.

Legal conditions forCash-Waqf creation:

In this part, all conditions that are associated withCash-Waqf (as same as Waqf) such as:Waqf Contract ,Waqif ,Mawquf ,Mawquf 'alaih andMutavalli will be provided .These conditions come as following:

Conditions associated withWaqf Contract :

Ijab (Exigency) &Qaboul (Acceptance):

Waqf will be established byIjab viaWaqif in any terms that directly signify on its definition andQaboul viaMawquf 'alaih or his trustee namelyMutavalli (Allameh Helli, 1990, P.161)

Ghorbat (Intention):

Undoubtedly, inWaqf like other actions,Niyat (Intention) as a will of act is an essential and inevitable component. Therefore, transferring won't be accomplished andWaqf won't be valid without it (Helli, 1990, Vol.3, P.155)

Iqbaz (Receiving):

TheWaqf Contract will be a substantive contract while theWaqif delivers his property toMawquf 'alaih orMutavalli .We should consider inCash-Waqf methods thatWaqif has to deliver the cash toWaqf Institution or Mutavalli in base ofWakalah contract (Mohaqeq Sani, 1989, Vol.9, P.11)

Not to Be Suspend:

If we suspend ourWaqf on a condition(s), it won't be valid. In loose speaking, the nature ofWaqf is dependent to “Being unconditional" (Mohaqeq Helli, 1995, P.255)

Waqif ejection:

Waqif doesn’t have to mention himself as aMawquf 'alaih inWaqf Contract .Otherwise, theWaqf will be void (Najafi, 1998, Vol.28, P.67)

Perpetuity:

One of the basic conditions inWaqf Contract is perpetuity. It means that the nature ofWaqf has to ensure regular and continual support from theWaqf property orCash-Waqf towards financing charitable areas such as mosque (Hăshemi Nasab, 1999, P.49)

Conditions relating to Waqif:

Bulugh (Maturity), Aql (wisdom) & liberty:

It is widely believed that the maturity, wisdom and liberty are the most important conditions aboutWaqif . No need to say that no person without these conditions can make decision based on productivity (Najafi, 1981, Vol.28, P.20)

To be owner:

TheMawquf (property or cash) has to beWaqif's Property . Otherwise, it would be invalid (Allameh Helli, 1997, Vol.2, P.393)

Not to be Insolvent:

Due to the fact that everyone is disregard about insane person and his actions, Jurisprudents have a consensus on this condition that his actions aren’t valid (Hăeri Yazdi, 2002, P.126)

Conditions associated with Mawquf (property or Cash):

Possibility to make profit from it and to be perpetual contemporary:

InCash -Waqf ,Waqif is obligated to deliver his money to theMutavalli throughWakalah contract (Qorbăni, 1997, P.115)

Possibility of Qabz:

IfQabz andIqbaz aren't applicable forMawquf , theWaqf Contract (Waqfieh ) will be invalid. In other words, it's necessary that founder has enough power to deliver his property toMawquf 'alaih . Notice that inCash-Waqf , theWaqif has to deliver his cash toMutavalli likeWaqf Institution (Hăshemi Nasab, 1999, P.58)

To Be in Dominance of Owner:

The property or cash doesn’t be involved in other purposes or nobody has claim on it (Mohaqeq Helli, 1982, Vol.2, P.212)

Conditions associated withMawquf 'alaih :

Merit  to own it:

TheMawquf 'alaih (if he is a human being) has to beAqil (in full possession of his physical and mental faculties),Baligh (adult) andHurr (a free man or women). In loose speaking, he has to be deserved to be owner. But in other cases like asWaqf Institution , it has to be adapted with Islamic rules (Sahid Avval, 1997, Vol.2, P.294)

To Be Present:

In this case,Waqif just able to endow a property orCash in charitable purpose, whileMawquf 'alaih are present .Otherwise endowment of one for absentMawquf 'alaih is an inoperativeWaqf . In other words, the original condition on this issue is "Presence".

  (Imami, 1957, P.76)

Waqf Profit Be lawful For him:

In Islamic approach forWaqf , there are some restrictions that limitWaqif in practice. One of these for example is thatMawquf 'alaih must be a person who has general authority over his or others. If no,Waqf will be void (Mohaqeq Helli, 1982, Vol.2, P.214)

To Be Specify:

InFamily Waqf , We should notice that theMawquf 'alaih has to be clear. But inPublic Waqf , theWaqif can endow his property or cash to vast group (Imam Khomeini, 2002, Vol.3, P.31o)

Conditions associated with Mutavalli:

Be Aqil, Baligh, Rashid & Trusty:

The first three conditions meanMutavalli must be able to manage all cash & properties without enormous loss. But the last meansMutavalli mustn't be traitorous and all revenue that acquired from Cash (or properties) must be used in fields that mentioned inWaqf Contract (Ryiăhi, 2000, P.97)

Be Righteous:

Jurisprudents have different ideas either it is irresolvable component or not in this condition. Some of them like "Shahid Sani" (Sahid Sani, 1982, P.177) believed at first that meanMutavalli has to be righteous; and others like "Imam Khomeini" believe on second (Imam Komeini, 1997, P.325)

Current Application of Cash-Waqf:

The witnesses of 21st century signify the revival ofWaqf Institution in many Muslim countries and the creation ofMovable Waqf especiallyCash-Waqf in large extent. In this section, some models for the creation ofCash-Waqf which have been practiced in Muslim countries will be presented. They are known asWaqf Shares Model, CorporateCash -Waqf Model, Deposit Product Model, Cooperative Model,Waqf Mutual Fund Model andWakalah withwaqf fund Model.

[Models of Waqf]

I) Waqf Shares Model:

This model is aPublic Waqf which has been practiced in Malaysia, Indonesia, Sudan, Kuwait and UK.

The procedure of this plan, in detail, is as follows (Magda Ismail Abdel Mohsin, 2008, P.9):

Founders will buyWaqf shares from specified religious institution with prices ranging between $1to $100 according to each country.

Founders will receiveCash-Waqf certificates as evidence that they purchaseWaqf shares with a specific amount.

TheseWaqf shares will then be endowed to the issuing institution that will act as aMutawalli to manage the collected fund.

The collected fund will then be distributed to charitable purposes as specified by the institution itself e.g. building mosques, schools, training center, etc.

This model can be clearly seen in following figure:

II) Corporate Cash-Waqf Model:

This model is a publicWaqf which has been practiced in Malaysia specifically in KumpulanWaqf an-Nur 1998, Turkey in Sabanci Foundation 1974, Pakistan in Hamdard Foundation 1953 and South Africa in the NationalAwaqaf Foundation 2000. The Founder in this model might be either an individual or a corporation.

The procedure of this plan, in detail, is as follows (Magda Ismail Abdel Mohsin, 2008, P.14):

Dividends earned for example by individuals, corporations will convey to an AssociatedWaqf Institution asCash-Waqf .

The AssociatedWaqf Institution will act as aMutawalli where manages and invests the accumulatedCash-Waqf .

The revenue earned will then be directed to charitable projects after operational expenses have been deducted.

This model can be clearly seen in following figure:

III) Deposit Product Model:

This model is aPublic Waqf which has been practiced in Bangladesh in two banks, the Social Investment Bank Limited (SIBL) and the Islamic Bank Bangladesh Limited) IBBL).

The procedure of this plan, in detail, is as follows (Magda Ismail Abdel Mohsin, 2008, P.14 & 15):

Thefounder deposits money intoCash-Waqf based account in the bank.

While depositing the money, thefounder will be given a list of theBeneficiaries whereby he can chose or specify his/herBeneficiaries .

The bank will act as aMutawalli and will invest the capital throughMudzarabah Contract .

The revenue generated will be channeled to charitable purposes or purposes specified by the founder.

This model can be clearly seen in following figure:

It has been realized as a good model whereMudzarabah mode has been practice and at the same time theFounder has the right to choose his/her ownBeneficiaries .

IV) Waqf Mutual Fund Model:

This model is a combinedWaqf which has been practiced in Indonesia in the Dompet Dhuafa Batasa. This mutual fund is managed by the Batasa Capital Asset Management.

The procedure of this plan, in detail, is as follows (Magda Ismail Abdel Mohsin, 2008, P.16 & 17):

TheFounder will contribute to the mutual fund, and at the same time he/she can contribute to theWaqf fund. In this case theFounder will specify for example 70% of his investment earnings return to the mutual fund i.e. his personal account and the remaining 30% will be appropriated to theWaqf fund.

TheWaqf institution will act as theMutawalli to manage and invest the capital.

The investment earnings will then be distributed according to theFounder condition where 70% will go for his mutual fund and 30% will go toWaqf fund and distributed to charity projects, as highlighted below.

This model can be clearly seen in following figure:

From the above model it may be seen that it isWaqf Mushtarak , but in this case the capital of the 70% and the revenue generated from investing this portion will go back entirely to theFounder leaving the 30% asCash-Waqf .

V) Wakalah with Waqf Fund:

This model is aPublic Waqf which has been practiced in Pakistan and Malaysia.

The procedure of this plan, in detail, is as follows (Abdul Rahim Abdul Wahab, 2006, P.11)

The Shareholders would initially make a donation to establish theWaqf fund. The donation can be of any reasonable amount (Shariah scholars may specify such an amount). After the creation of theWaqf fund the Shareholders would lose their ownership rights on theWaqf fund and would become the property of theWaqf fund. However, they will have the right to administer and develop rules and regulations of the fund.

The original donation of theWaqf fund needs to be invested in a very safeShariah compliant investment and its returns would be used for the benefit of the participants. The idea being that theWaqf fund should remain intact with high likelihood.

Company would take this donation on behalf of theWaqf fund as administrator of the fund and deposit this in the fund.

The donations received from the participants, seekingTakaful protection, would also be a part of this fund and the combined amount will be used for investment and the profits earned would again be deposited into the same fund. As perWaqf principles, a member (donor) can also benefit from theWaqf fund.

This model can be clearly seen in following figure:

Establishment of a Cash-Waqf Financial Institution (CWFI):

Inasmuch as the above models are just associated with some instrument to simplify poverty alleviation, one or several persons can not implement them in real. So we require to some institutions or corporations that have high capability, skill and enough experiences to implementing our goal (Poverty alleviating viaCash-Waqf models).Cash-Waqf management institution should manage the accumulatedCash-Waqf created by the differentFounders in such a way that the collected fund becomes more and more productive. The more theWaqf investment return, the moreMawquf ‘alaih benefit fromWaqf fund. Only gains of the investedWaqf fund will be delivered toMauquf 'alaih and the principal of fund keep being invested in potential investment opportunities.

Islamic (Shia) school's approach on these models:

With reference to all models that are presented, we consider the Islamic approach about them in order to state which of them is acceptable.

Although, in regards with Islam School's approach, "Waqf Shares Model, CorporateCash -Waqf Model,Waqf Mutual Fund Model and Cooperative Model" are admissible, butWakalah Model is not admissible. In follow we will concern to each model for stating more points about them.

Waqf Shares Model,Waqf Mutual Fund Model & Cooperative Model:

However, for these models, two important things are not clearly highlighted for the creation ofCash -Waqf : 

TheFounder of theWaqf has no choice in specifying his/herBeneficiaries as this might discourage moreFounder to createCash-Waqf .

It is very difficult to ensure the element of perpetuity of theCash-Waqf as it is not clear how theCash-Waqf is invested and how to ensure the capital is intact.

Corporate Cash-Waqf Model:

According to this model, AssociatedWaqf Institution that established by the mother corporation, channel accumulated Cash to investment after deducting operational expenses. IfWaqif mentions this condition inWaqf Contract , it will be valid. Otherwise it will be void and AssociatedWaqf Institution won’t be allowable to deduct operational expenses from earned revenues.

Deposit Product Model:

In this model we should consider that theFounder mustn't be allowable to withdrawal his contributions from deposit account after some times. Because one of most important conditions onWaqf Contract is "TheMawquf (i.e. cash) should be perpetual". This model will be admissible, ifFounders follow this way.

Wakalah Model:

One of most important conditions onWaqf Contract is "TheFounder mustn't allocate any part of revenue fromCash -Waqf toward himself ". But in this model, as appeared, this condition isn’t followed. So, according to Islam jurisprudence, it will be void