Waqf Management in Islamic Non-Profit Organization : A Case of Al Waqf Lil Hayah

Waqf is one of Islamic economic instruments to promote the distribution of public wealth. This perpetual voluntary charity concept is that the underlying asset should remain and the people can benefit from the asset perpetually. It promises a continuous reward in the eternal life for as long as the underlying asset endures to be useful. As in the past, the waqf sector has the potential to become part of a strong civil society which promotes socioeconomic welfare and reduces inequality. However, in some Muslim countries, waqf properties have been neglected. Therefore, it is not surprising if some of the waqf assets are not recorded properly and some have even gone missing. ln fact, waqf assets are contributory in providing social and economic welfare as well as promoting religious charity. Since the waqf assets should be in existence in perpetuity, the assets must be managed and administered by appropriate parties responsible to supervise waqf property benefits so that the benefits can be distributed to the recipients. In Islam someone who is appointed to manage awaqf property as a trustee is known as a mutawalli. The major tasks of a trustee are to preserve and develop the properties that are donated, and collect waqf income and distribute the income. Mutawalli should also preserve the properties from any loss and damage. This chapter focuses on waqf management by an Islamic nonprofit organization, namely Islamic Aid Malaysia (IAM). Previous, studies mostly focus on waqf institutions managed by State Islamic Religious Councils (SIRC) and corporations. One of the aspects least focused in waqf literature is on independent management of waqf by a non-profit organization. The revival of waqf institution creates the needs for developing a good management of wagf assets, which could improve transparency and accountability of the institution. The purpose of waqf is to provide continuous charity that could generate perpetual income flow for the needy. If good management is in place, the accountability can be proven to various stakeholders such as waqif (giver) and beneficiaries