Islamic Finance 101: Types of Waqf
Waqf is an institution of charity which provides a never-ending flow of benefits to a specific group of beneficiaries or the community. Because of this, Waqf is sometimes called Sadaqah Jariyah, which refers to the fact that even after someone has passed away, he or she will continue to be rewarded from the Waqf contribution. A traditional example of a Waqf is donating a plot of land for the development of a mosque. However, Waqf comes in many more forms, as listed below:
1. Direct Waqf – The Waqf donated may be directly utilised to fulfil the need of the community, such as a building donated to become a mosque or educational institution.