Innovations of Zakat (Alms) Distribution Practices in Malaysia

Zakat (alms) is one of the Islamic social finance tools, besides waqaf (endowment) that can contribute to the socio-economic development of the Muslims, and society at large (ummah). In Malaysia, the local media have reported complaints from some dissatisfied members of the public on the distribution of zakat to zakat beneficiaries (asnaf). These emerge despite the introduction of numerous innovations by zakat institutions under the administrations of Majlis Agama Islam Negeri (MAIN) or State Islamic Religious Councils (SIRC), in the form of assistance schemes, for the distribution of asnaf in Malaysia. This chapter discusses the concept of innovations in zakat distribution according to three foundations: fatwa muzakarah (Islamic ruling discussion) resolutions, ijtihad (independent interpretation and reasoning by scholars) in handling issues related to zakat distribution, and temporal dynamism of the Shariah. Numerous challenges concerning zakat issues have also highlighted the significant roles of zakat institutions, especially in the eradication of poverty.

International Best Practices in Existing Corporate Waqf Models

Waqf is being introduced and implemented in a number of innovative structures with contemporary movable asset class. Despite that, there is still a demand for waqf to be more effectively organised and managed. This chapter studies the contemporary establishment of corporate waqf, as exemplified by Waqaf An-Nur Corporation Berhad, Larkin Sentral Property Berhad, and Wareef Endowment Fund. These models are analyzed from the angles of governance, sustainable investment strategy, risk management, and social impact. These mini case studies are benchmarked against the leading Harvard Endowment Fund. The analysis sheds light on their levels of efficiency and effectiveness as well as their issues and challenges. This chapter proposes recommendations for consideration, especially to policy makers and waqf market players. This chapter adopts a qualitative research methodology by using textual and documentary analysis together with semi-structured interviews and discussions with the relevant stakeholders.

Waqf and Development

Waqf is a Sadaqah Jariyyah, a Capital Gift to Allah which is useful for Sustainable development and beneficial to Muslim, Poor, Marginalised, and disadvantaged communities. The important thing is waqf properties must be used for the benefit of needy. It can be achieved through investing the waqf in infrastructure development through the generation of profits from waqf infrastructure and utilization of Waqf property by common and needy public. The proper management of waqf properties through modern techniques of risk and asset management so that maximum benefits can be achieved through any Waqf property is the need of time. The history of Waqf is very old in Madhya Pradesh and this research is undertaken to study the methods used to commercially develop Waqf lands which are regulated by waqf board of MP located in the state of MP. The researcher is trying to find out the potential of economic development through waqf properties in MP and the welfare which can be achieved of poor and marginalized classes in this chapter.

Servant Leadership and Nonprofit Management

This chapter analyzes servant leadership theory from the perspective of Islamic nonprofits. It is one of the rare management science approaches to examining Islamic nonprofits and waqfs. Definitions and characteristics of servant leaders are derived from major studies on servant leadership, and outcomes for nonprofit organizations are discussed based on available evidence in the literature. Servant leadership is compared to other major leadership theories and examined in cultural context. Although the studies in the West dominate the servant leadership literature, it is argued that the philosophy of a servant leader is deeply rooted in other cultures and faiths, particularly Islamic tradition. The author examines whether servant leadership fits the leadership definitions in recent studies on Islamic leadership. There is also a comparison of the Organizational Leadership Assessment (OLA) for servant leadership and the Islamic Leadership Inventory (ILI). The author points to gaps in the literature and provides suggestions for future research.

Towards Knowledge-Based Waqf Organizations

The world is changing at a great pace and acceleration. The role of science, knowledge, and learning has emerged, in developing and adopting appropriate methods to manage and transfer knowledge and experience within an organization and making it available for everyone to share and exchange easily, through knowledge fountains and databases. This chapter introduces the concept of knowledge management to waqf institutions and the potential contribution that can be provided by this in solving many problems and challenges confronting them, in the hope of achieving a qualitative leap in performance and restoring their leading role in societies. There is some evidence that researchers have addressed the issue of knowledge management in the context of waqf institutions. Consequently, this chapter draws attention to the importance of knowledge management for waqf institutions, with the intent of providing a comprehensive understanding of this topic and its association with the organizational performance enhancements, from different angles.

Towards the Creation of Strong Brand Image of Waqf Institutions

Studies have been conducted focusing on the role of trust, integrity, and reputation on the image and reputations of Islamic charities. But, these are not the only challenges faced by contemporary Waqf. While the world outside the Waqf institutions has changed, Awqaf are stuck in centuries-old procedures and management practices. This must change for Awqaf to be up to the challenges of modern world. This work focuses on proposing a mechanism that explains how possible it is for Awqaf to improve their image given their unique features and environment. The process through which Waqf improves its relationship with stakeholders such as donors, beneficiaries, and government is as important as other aspects of Waqf operation that have been traditionally covered by scholars. The methodology followed for conducting this work is mainly literature review and critical analysis of the state of Waqf in the Muslim world. Thus, the work is a deductive analysis in Islamic economics and marketing, borrowing from Islamic and conventional fields of marketing and branding.

A Waqf-Integrated Reporting (WAQIR) Model

This chapter proposes the best reporting practices for waqf institutions, concerning information disclosure on performance, governance, and socio-economic impact using the waqf integrated reporting (WAQIR) model. The WAQIR model is viewed as a comprehensive reporting tool for waqf institutions. This study reviewed previous literature and reporting guidelines for waqf and similar organisations, such as not-for-profit and faith-based organisations, to identify the appropriate measurements for disclosure, limited not only to the input and output of the waqf project, but also its governance and socio-economic impact. Based on the review, the WAQIR model is explicated with four pillars of disclosure: (i) waqf financial and non-financial; (ii) waqf governance; (iii) waqf performance; and (iv) waqf socio-economic impact. The proposed WAQIR model would be useful for waqf institutions in implementing best waqf reporting practices. This could help them to enhance their accountability and to promote transparency, enabling the sustainability of the entire waqf management practices.

The Role of Cash-Waqf in Societal Responsibility

The widespread poverty in the world has required multi-dimensional approaches and efforts to alleviate it and improve the life of the society at both national and global levels. As a result, many agencies, governmental bodies, and non-government organizations (NGOs) were formulated and established for this purpose with their own special objectives, scopes, visions, and missions. Different entities and agencies have taken various approaches and methods in the process of poverty eradication and are undertaking several programs in a large number of communities at the global scale. Meanwhile, the globalizations of poverty mitigation efforts and increasing number of agencies, operating in different communities, have increased the quick prevarication of different beliefs in the same community. One of the reasons for this is that each organization or agency has its own purposes, motives, values, and norms to directly or indirectly achieve by helping the people in need.

Waqf

Modern Islamic Finance and Banking is competing with the conventional banking on many levels. There are tensions between the definitions of ‘Riba ' and ‘Hiyal' that continuously stress the need for Islamic Sharia Boards to update the Sharia Compliance for their products. The concept of ‘Waqf' is the Islamic concept of an endowment Trust. The pious aim of the Waqf is to allow endowment for a specific purpose that must be ‘Halal'. The leading Islamic countries for the purposes of having vibrant Islamic Finance and Banking economies are predominantly past British colonies. These Islamic countries have rich Common Law heritage that guides their Constitutions as they exist today. The Common Law guidelines for Family Law, Inheritance, and Property Law also influence the Sharia compliance framework for contemporary Islamic Finance in those countries. This chapter examines the existing Islamic jurisprudence on Waqf and its influence on Common Law trust, and argues for its revival as the Islamic Trust Law.

Waqf, Social Responsibility, and Real Economy

The function of waqf institution is to contribute towards provision of a social security net to those falling within its vicinities. The value proposition of waqf lies in effectively cascading wealth and benefits of resources to the neglected or comparatively disadvantaged sectors of an economy. Waqf is equally envisaged to support informal economy by responding to, and patronising the un-organized sectors. It is critical to identify the existing gaps in the areas of public and private sectors' spending for waqf to effectively fulfill its socio-economic objectives. By targeting the resource-deficient pockets of the economy on priority basis, the utility of waqf-resources can be maximized, which, in turn, reinforces the building blocks of the real economy. The chapter critically analyses the moral philosophy, the value proposition, and functional mechanism of an ideal waqf followed by pinpointing some recommendations to enhance the role of waqf. The chapter is an outcome of a library-based research, and it adopts socio-legal research paradigm for the analysis of literature.