NAME OF THE ASSIGNMENT: CASH WAQF

Submitted to
Md. Shahadat Hossain
Assistant Professor
Department of Law, Bangladesh Islami University (BIU)

Submitted by
Palash Sheikh
ID: LLBRM49221016
Batch: 49th
Department of law, Bangladesh Islami University (BIU)
 ASSIGNMENT OF CASH WAQF

1. What is the Cash Waqf?

Introduction:
The word waqf is derived from the Arabic root verb waqafa, which means ‘causing a thing to stop
and standstill’. It also takes the meanings of ‘detention’, ‘holding’ or keeping. Waqf (pl. Awaqaf)
is called Boniyad in Iran and Habs (pl. Ahbs) in North and West Africa. However, by taking its
different meanings into consideration waqf can be applied to non-perishable property whose
benefit is extracted without consuming the property itself.
Cash waqf, also known as waqf al-mali or waqf al-nuqud, is a form of endowment in which cash
or money is dedicated to charitable purposes. The concept of waqf is deeply rooted in Islamic
tradition and has been practiced for centuries. In this essay, we will explore the concept of cash
waqf in Islam and its relevance in modern times.
References in Quran:
The Quran mentions the concept of waqf in several places. One of the most well-known references
is in Surah Al-Baqarah, verse 177, where Allah says:
"Righteousness is not that you turn your faces toward the east or the west, but [true] righteousness
is [in] one who believes in Allah , the Last Day, the angels, the Book, and the prophets and gives
wealth, in spite of love for it, to relatives, orphans, the needy, the traveler, those who ask [for help],
and for freeing slaves; [and who] establishes prayer and gives zakah; [those who] fulfill their
promise when they promise; and [those who] are patient in poverty and hardship and during battle.
Those are the ones who have been true, and it is those who are the righteous."
This verse highlights the importance of giving charity and helping those in need. It also implies
that the act of giving should be done with sincerity and without any expectation of reward or
recognition.
References in Hadith:
The concept of waqf is also supported by several Hadiths, which are sayings and actions of Prophet
Muhammad (peace be upon him). One of the most famous Hadiths on the subject is the following:
"Charity does not decrease wealth, no one forgives another except that Allah increases his honor,
and no one humbles himself for the sake of Allah except that Allah raises his status." (Sahih
Muslim). This Hadith emphasizes the benefits of giving charity and the importance of doing so for
the sake of Allah, without seeking any personal gain.
Another Hadith that relates to waqf is the following:
"Whoever establishes a good practice (Sunnah), he will have the reward for it and the reward of
everyone who does it after him, without it diminishing their rewards in the slightest. And whoever
establishes an evil practice, he will bear the sin of it and the sin of everyone who does it after him,
without it diminishing their sins in the slightest." (Sahih Muslim). This Hadith implies that
establishing a good practice, such as a waqf, can lead to ongoing rewards, even after one's death.

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Cash Waqf; Definition and Purpose:
Cash waqf is a form of endowment in which cash or money is dedicated to charitable purposes.
The capital amount is invested, and the returns generated from the investment are used to fund
charitable projects. The objective of cash waqf is to provide sustainable financing for charitable
activities, such as building schools, hospitals, mosques, and other public facilities. One of the main
benefits of cash waqf is that it enables people to donate money for charitable purposes while
retaining the capital amount. This means that the donated money can continue to generate returns
and benefit the community for years to come. Cash waqf can also be structured in a way that allows
the donor to specify how the returns should be used, such as for a particular cause or project.
Types of Cash Waqf:
Cash Waqf, also known as Waqf al-Nuqud, is a type of Islamic charitable endowment that involves
the donation of cash or money. The concept of Cash Waqf is based on the idea of making one's
wealth perpetual, by dedicating it to charitable purposes for the benefit of the community. Cash
Waqf can be categorized into different types based on the nature and scope of the endowment. In
this article, we will explore the various types of Cash Waqf and their significance in Islamic
finance.
General Cash Waqf:
A General Cash Waqf is a type of endowment where the donated cash is used for the general
welfare of the community. The proceeds from the endowment can be used to finance various
projects such as schools, hospitals, mosques, and other community-based initiatives. General Cash
Waqf is a flexible type of endowment, as the beneficiaries can be changed over time depending on
the changing needs of the community. This type of endowment is also a popular way of supporting
the development of Islamic institutions and the promotion of Islamic values.
Specific Cash Waqf:
A Specific Cash Waqf is an endowment where the donated cash is dedicated to a specific purpose
or project. This type of endowment is commonly used to finance specific initiatives such as the
construction of a mosque, school, or hospital. The endowment is usually set up with a specific
purpose in mind, and the beneficiaries are predetermined. The funds from the endowment can only
be used for the specific project, and any excess funds are usually reinvested back into the
endowment.
Revolving Cash Waqf:
A Revolving Cash Waqf is a type of endowment where the donated cash is used to finance a project
that generates income. The income generated from the project is then reinvested back into the
endowment, creating a revolving fund that perpetuates the endowment. Revolving Cash Waqf is a
popular way of financing projects that generate income, such as rental properties, farms, and
businesses. This type of endowment is unique in that it can be used to support charitable projects
while also generating a return on investment.
Family Cash Waqf:
A Family Cash Waqf is a type of endowment where the donated cash is dedicated to supporting
the financial needs of a specific family or group of families. The endowment can be set up to

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provide financial support for basic needs such as food, shelter, and education. Family Cash Waqf
is a way of providing a safety net for vulnerable families and can be used to support families facing
financial difficulties due to illness, unemployment, or other unforeseen circumstances. This type
of endowment is commonly used in Muslim-majority countries to support the needy and
marginalized.
Virtual Cash Waqf:
A Virtual Cash Waqf is a type of endowment where the donated cash is used to support online
initiatives such as Islamic education, digital media, and e-commerce. This type of endowment is
unique in that it leverages technology to promote Islamic values and support charitable initiatives.
Virtual Cash Waqf is a popular way of financing digital initiatives such as Islamic websites, mobile
applications, and online courses. This type of endowment is particularly relevant in the modern
era, where technology is playing an increasingly important role in promoting Islamic values and
supporting charitable causes.
In conclusion, Cash Waqf is a powerful tool for promoting charitable causes and supporting the
development of Islamic institutions. By donating cash to a Cash Waqf, individuals can make a
lasting impact on their community and perpetuate their wealth for the benefit of future generations.
The different types of Cash Waqf offer a range of options for individuals to support charitable
initiatives in a way that aligns.

2. How does the Cash Waqf Works?

Cash Waqf, also known as Waqf al-Nuqud or Waqf al-Mali, is a form of Islamic charitable
endowment where money or cash is donated to a charitable cause, and the endowment's principal
is preserved, and the income generated from it is used to support various social, educational, or
religious projects. Cash Waqf is widely used in Muslim countries as a means of social welfare and
a form of ethical investment. In this article, we will describe how Cash Waqf works, including its
benefits, structure, and examples.
1. The Concept of Waqf: The concept of Waqf is rooted in the Islamic faith and refers to a
charitable endowment that is set up to benefit society or the community. The endowment
is established by donating a specific asset, such as property, money, or other valuable
assets, with the aim of preserving the principal and using the income generated from it to
support various social, educational, or religious projects. The Waqf's principal is
considered as a perpetual endowment, and the income generated from it is used to fund the
Waqf's objectives.
2. Structure of Cash Waqf: Cash Waqf follows the same principles as traditional Waqf but
involves the donation of money or cash instead of other assets. The cash donated to the
Waqf is used to set up a fund, and the income generated from the fund is then used to
finance social welfare and other charitable projects.
3. Benefits of Cash Waqf: Cash Waqf has several benefits, including:
• Social Welfare: Cash Waqf funds are used to support social welfare projects such as
building schools, hospitals, and other public facilities. This provides significant benefits to
society, particularly the less fortunate.

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 • Ethical Investment: Cash Waqf provides an opportunity for ethical investment for
individuals and institutions who want to invest their money in a socially responsible
manner. The funds generated from Cash Waqf are invested in ethical projects that are
consistent with Islamic principles.
• Perpetual Endowment: The principal amount donated to Cash Waqf is considered as a
perpetual endowment, which means that the endowment's principal remains intact, and
only the income generated from the investment is used to fund charitable projects.
4. How Cash Waqf Works: Cash Waqf operates through the following steps:
• Donor sets up a Cash Waqf: A donor can set up a Cash Waqf by donating money to a
charitable cause. The donor can specify the purpose of the endowment, such as education,
healthcare, or social welfare.
• Cash Waqf Fund is Established: Once the donor has made the donation, the Cash Waqf
fund is established. The fund is invested in ethical projects that generate income.
• Income Generated from the Fund is Used for Charitable Purposes: The income
generated from the Cash Waqf fund is then used to support charitable projects. The Waqf's
trustees decide on the projects to fund, which must be consistent with the Waqf's objectives.
5. Examples of Cash Waqf: Cash Waqf is widely used in Muslim countries as a means of
social welfare and ethical investment. Some examples of Cash Waqf are:
• Education: Cash Waqf funds are used to build and maintain schools, provide scholarships
to students, and support educational programs.
• Healthcare: Cash Waqf funds are used to build and maintain hospitals and clinics, provide
medical equipment, and fund research on health-related issues.
• Social Welfare: Cash Waqf funds are used to provide food, shelter, and other basic
necessities to the less fortunate, particularly during times of crisis.

3. What is the Advancement of Cash Waqf?

Cash waqf is an Islamic financial instrument that is used to raise funds for charitable causes. It is
an endowment of money that generates a perpetual stream of income for a specific charitable
purpose. The concept of cash waqf is based on the Islamic principle of Sadaqah Jariyah, which
means a perpetual or ongoing charity. Cash waqf is different from other forms of waqf, which are
typically based on the endowment of land, property, or other tangible assets. In recent years, there
has been a growing interest in the advancement of cash waqf as a means of raising funds for social
and developmental projects. The following are some of the key sub-heads that highlight the
advancements made in the field of cash waqf:
1. Digitization of Cash Waqf: The traditional method of cash waqf involved the collection
of cash and its investment in a specific project. However, with the advent of technology,
cash waqf has been digitized, making it easier for people to donate and track their
contributions. The use of mobile applications and online platforms has made cash waqf
more accessible and efficient, enabling more people to contribute to charitable causes.

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 2. Collaboration with Financial Institutions: Cash waqf has traditionally been limited to
individual contributions, but in recent years, financial institutions have begun to collaborate
with waqf organizations to support charitable projects. Banks and other financial
institutions have started offering cash waqf accounts, where a portion of the interest earned
is donated to charitable causes.
3. Investment in Sustainable Development: Cash waqf has been used to support a variety
of charitable causes, including education, healthcare, and poverty alleviation. However,
there has been a growing interest in using cash waqf to support sustainable development
projects, such as renewable energy, sustainable agriculture, and environmental
conservation. These projects have the potential to create long-term social and
environmental benefits, while also generating a steady stream of income for charitable
causes.
4. Establishment of Waqf Funds: Waqf funds are financial instruments that pool together
cash waqf contributions from multiple donors to support a specific charitable purpose.
These funds are managed by waqf organizations, which invest the contributions and use
the returns to support the designated project. The establishment of waqf funds has made it
easier for people to contribute to cash waqf projects and has enabled waqf organizations to
scale up their impact.
5. Collaboration with Government and NGOs: Cash waqf has traditionally been managed
by waqf organizations and charities, but in recent years, there has been a growing interest
in collaboration with government and non-governmental organizations (NGOs).
Governments have recognized the potential of cash waqf as a means of raising funds for
social and developmental projects, and have started to support waqf organizations through
policy and financial incentives. NGOs have also started to collaborate with waqf
organizations to support specific projects, leveraging their expertise and networks to
maximize impact.
In conclusion, the advancement of cash waqf has been driven by the digitization of cash waqf,
collaboration with financial institutions, investment in sustainable development, establishment of
waqf funds, and collaboration with government and NGOs. These developments have made cash
waqf more accessible, efficient, and impactful, enabling it to play a greater role in addressing social
and developmental challenges.

4. Why do not develop the Cash Waqf in Bangladesh?

Cash Waqf is an Islamic finance tool where individuals can donate a certain amount of cash or
asset to a Waqf fund for the benefit of the society. In Bangladesh, Waqf has a long history of more
than 700 years, and there are many Waqf properties in the country. However, Cash Waqf, which
is a modern concept, is not developed in Bangladesh. In this article, we will discuss the reasons
why Cash Waqf is not developed in Bangladesh and provide examples to support our arguments.
Lack of Awareness:
One of the main reasons why Cash Waqf is not developed in Bangladesh is the lack of awareness
among the people. The majority of the people in Bangladesh are not aware of the concept of Cash

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Waqf, and they do not know how it can benefit the society. Therefore, there is a need for awareness
campaigns to educate people about the concept of Cash Waqf and its benefits.
Lack of Regulatory Framework:
Another reason why Cash Waqf is not developed in Bangladesh is the lack of a regulatory
framework. There is no specific law or regulation that governs Cash Waqf in Bangladesh.
Therefore, people are hesitant to donate their money or assets to a Cash Waqf fund as they are not
sure about the legal status of the fund. There is a need for the government to develop a regulatory
framework for Cash Waqf to ensure transparency and accountability.
Lack of Trust:
Trust is an essential element in any financial transaction, and the same applies to Cash Waqf. Many
people in Bangladesh do not trust the Waqf institutions due to the lack of transparency and
accountability. There have been cases where Waqf properties were mismanaged, and the benefits
did not reach the intended beneficiaries. Therefore, people are hesitant to donate their money or
assets to a Cash Waqf fund as they are not sure if their donations will be used for the intended
purpose.
Lack of Institutional Support:
Cash Waqf requires institutional support to operate successfully. However, there is a lack of
institutional support for Cash Waqf in Bangladesh. There are only a few Waqf institutions in the
country, and they do not have the capacity to manage a Cash Waqf fund. Therefore, there is a need
for the government and other stakeholders to provide institutional support to Cash Waqf funds to
ensure their smooth operation.
Examples:
Despite the challenges, there are some examples of successful Cash Waqf initiatives in
Bangladesh. The Bangladesh Awami League, the ruling party of Bangladesh, has launched a Cash
Waqf fund to provide financial assistance to poor families affected by the COVID-19 pandemic.
The fund has been able to collect a significant amount of money, and it has distributed the funds
to the intended beneficiaries. Another example is the Cash Waqf initiative by Islamic Relief
Bangladesh, a non-profit organization that works to provide humanitarian aid to the poor and needy
in Bangladesh. The organization has launched a Cash Waqf fund to provide financial assistance to
poor families affected by natural disasters such as floods, cyclones, and earthquakes.
In conclusion, Cash Waqf is not developed in Bangladesh due to the lack of awareness, regulatory
framework, trust, and institutional support. However, there are examples of successful Cash Waqf
initiatives in the country, and with proper support from the government and other stakeholders,
Cash Waqf can play a significant role in the development of the country. Therefore, there is a need
for awareness campaigns to educate people about the concept of Cash Waqf, the development of
a regulatory framework, building trust among the people, and providing institutional support to
Cash Waqf funds.

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5. Where is the Cash Waqf deposited in Bangladesh?
Cash Waqf, also known as Waqf-e-Nau, is a form of Islamic philanthropy where individuals
donate cash to be used for charitable causes in perpetuity. In Bangladesh, Cash Waqf is deposited
in specialized accounts offered by Islamic banks and financial institutions. Here are some sub-
heads that describe where Cash Waqf is deposited in Bangladesh:
1. Islamic Banks: Islamic banks are financial institutions that operate in accordance with
Islamic principles, including the prohibition of interest-based transactions (riba) and the
promotion of social justice.
In Bangladesh, there are several Islamic banks, including Islami Bank Bangladesh Limited,
Al-Arafah Islami Bank Limited, and Shahjalal Islami Bank Limited, among others. These
banks offer specialized Cash Waqf accounts to facilitate the collection and management of
Waqf funds.
2. Waqf Management Organizations: In addition to Islamic banks, there are several Waqf
management organizations in Bangladesh that collect and manage Cash Waqf funds. These
organizations include the Bangladesh Awami Waqf and Islamic Trust, the Islamic
Foundation Bangladesh, and the Bangladesh Krishi Bank Waqf Fund, among others.
3. Government Waqf Funds: The government of Bangladesh has also established several
Waqf funds to support various charitable causes, including education, healthcare, and
poverty alleviation. These funds are managed by the government and are financed through
a variety of sources, including Cash Waqf donations.
Some examples of banks that offer Cash Waqf accounts in Bangladesh include:
1. Islami Bank Bangladesh Limited: Islami Bank Bangladesh Limited offers several Cash
Waqf accounts, including the Waqf Deposit Scheme, the Waqf Education Scheme, and the
Waqf Health Scheme, among others.
2. Al-Arafah Islami Bank Limited: Al-Arafah Islami Bank Limited offers a Cash Waqf
account called the AIBL Waqf Cash Deposit Scheme, which allows individuals to donate
cash to support various charitable causes.
3. Shahjalal Islami Bank Limited: Shahjalal Islami Bank Limited offers a Cash Waqf
account called the Shahjalal Islami Bank Waqf Deposit Scheme, which is designed to
support education, healthcare, and other social welfare initiatives.
References:
1. "Cash Waqf (Waqf-e-Nau)." Islami Bank Bangladesh Limited. Accessed April 16, 2023.
https://www.islamibankbd.com/DepositProducts/CashWaqf.
2. "AIBL Waqf Cash Deposit Scheme." Al-Arafah Islami Bank Limited. Accessed April 16,
2023. https://www.al-arafahbank.com/DepositDetails.php?DepositID=7.
3. "Shahjalal Islami Bank Waqf Deposit Scheme." Shahjalal Islami Bank Limited. Accessed
April 16, 2023. https://www.sjiblbd.com/deposit-details/16.

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6. What is the benefits of Cash Waqf?
Cash Waqf is a type of Islamic financial instrument that allows individuals to donate their money
for charitable purposes, such as education, healthcare, and poverty alleviation. Cash Waqf is an
important tool for Islamic social finance and has been used by various Islamic institutions,
governments, and non-governmental organizations to provide essential services to underprivileged
communities. In this article, we will discuss the benefits of Cash Waqf, provide some examples of
Cash Waqf institutions in Bangladesh and the sub-continent, and highlight the contributions of
Islamic banks towards the development of Cash Waqf.
1. Social Impact: Cash Waqf can have a significant impact on poverty alleviation, education,
and healthcare. The funds generated from Cash Waqf can be used to provide free education
to underprivileged children, build hospitals and clinics in rural areas, and provide interest-
free loans to entrepreneurs to start their businesses. The social impact of Cash Waqf can
be seen in various countries, including Bangladesh, Pakistan, and Malaysia, where Cash
Waqf institutions have played a vital role in providing social services to marginalized
communities.
2. Sustainability: Cash Waqf provides a sustainable source of funding for charitable causes.
Unlike traditional donations, Cash Waqf funds are invested in income-generating projects,
such as rental properties and businesses, and the profits generated from these projects are
used to fund charitable causes. This creates a self-sustaining cycle of funding that can
continue for generations, providing a stable source of funding for charitable causes.
3. Financial Inclusion: Cash Waqf can promote financial inclusion by providing interest-
free loans to entrepreneurs who do not have access to conventional banking services. Cash
Waqf institutions can help bridge the gap between the formal banking sector and the
unbanked population, enabling them to start their businesses and become financially self-
sufficient.
4. Religious Obligation: Cash Waqf is a religious obligation for Muslims, who are required
to give a portion of their wealth to charitable causes. By donating to Cash Waqf institutions,
Muslims can fulfill their religious obligation and earn rewards in the hereafter.
In Bangladesh, Cash Waqf has played a crucial role in providing social services to marginalized
communities. The Islamic Development Bank (IDB) established the Islamic Solidarity Fund for
Development (ISFD) in 1984, which provides financial assistance to Islamic countries, including
Bangladesh, to support their social and economic development. In Bangladesh, the ISFD has
supported various projects, including the construction of hospitals, schools, and mosques.
The Bangladesh Krishi Bank (BKB) has also established a Cash Waqf fund to support the
agricultural sector. The BKB Cash Waqf fund provides interest-free loans to farmers and small-
scale entrepreneurs, enabling them to start their businesses and become financially self-sufficient.
In Pakistan, the Al-Khair Foundation has established a Cash Waqf fund to support various social
services, including education, healthcare, and poverty alleviation. The Al-Khair Foundation has
invested the funds in income-generating projects, such as rental properties and businesses, and the
profits generated from these projects are used to fund charitable causes.

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In Malaysia, the Waqf Foundation of Malaysia (YWM) has established a Cash Waqf fund to
support various social services, including education, healthcare, and poverty alleviation. The
YWM has invested the funds in income-generating projects, such as rental properties and
businesses, and the profits generated from these projects are used to fund charitable causes. Islamic
banks have also played a significant role in the development of Cash Waqf. In Malaysia, Bank
Islam Malaysia Berhad has established a Cash Waqf fund to support various social services,
including education, healthcare, and poverty alleviation. The Bank has invested the funds in
income-generating.

7. CONCLUSION:
From the discussion, it is clear that through innovative cash waqf management systems various
parties of a society can reap the benefits including the poorest of the poor section who are not
generally reachable by government or other agencies. These practices help in the fulfillment of
religious requirement through performing various activities and mobilizing resources from rich to
poor, creating employment opportunity to develop socio- economic conditions of the poor and
whole society as ultimate results. Thus, the present paper contributed amply in this direction. It
would also help to reform the present institutional setup and their networking relation- ship
throughout the country, with a view to increasing their performance in the direction of the efficient
and need based dynamic management of the waqf affairs and systems. As a consequence, total
policy dimensions at micro and macro perspective can also be framed to meet the diversified
objectives of innovations and development in the waif management systems complying with the
Shariah guidelines.
Whilst this study tried to find out the features of existing Cash Waqf management systems, it also
attempted to find out and evaluate the factors and extent of their impact on the performance of the
Cash Waqf management
Systems and finally to develop a Cash Waqf Model based on the analysis for increasing the overall
performance of the Waqf sector of Malaysia and integrating them with the symbiotic nexus among
different financial sectors. How- ever, further research is required by Waqf practitioners and
researchers, to identify more gaps in the present system and develop a better hybrid Cash Waqf
model not only for Malaysia, but also for all over the world.