Can We Make Shares in Business as Waqf to Help Orphans?

19 September, 2020
Q As-salamu `alaykum. Can we make specific amounts of money (shares in the business) as waqf or Islamic endowments to be used in different halal businesses? And, can we use profit generated from that for orphans, well digging, or other similar projects?

Answer

Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh

In the Name of Allah, Most Gracious, Most Merciful. 

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.


In this fatwa:

There is nothing wrong with making specific amounts of money as waqf, or endowment, with the intention of making profits in a halal business in order to help care for orphans or for other charitable causes.


In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:

Yes, it is permissible to make shares in business as waqf and to use the money profit generated from this waqf in helping the orphans or contributing to general charities in the community.

This form of waqf or religious endowment is practiced all over the Muslim world. It may be better to put the waqf with institutions such as Islamic banks or shareholding companies. You should define the objective and the checks and balances on the managers of this waqf very clearly and in detail.

Almighty Allah knows best.

About Prof. Dr. Monzer Kahf
Dr. Monzer Kahf is a professor and consultant/trainer on Islamic banking, finance, Zakah, Awqaf, Islamic Inheritance, Islamic estate planning, Islamic family law, and other aspects of Islamic economics, finance, Islamic transactions (Mu'amalat). Dr. Monzer Kahf is currently Professor of Islamic Finance & Economics at the Faculty of Economics and Management, Istanbul Sabahattin Zaim University, Turkey