A vital tool for poverty alleviation

Waqf means appropriation of the property with its separation from private ownership and dedication of its usufruct to charitable purpose. The history of Islam shows that Quba mosque in Medina was the first foundation which was endowed by Prophet Mohammad (pbuh) in 622 AC. It is still stable in extending structure. Waqf continued to play a key role in the development of civilisations. People then began to donate their pieces of land for mosques. As mosques were the major source of knowledge and education, the Waqf tradition was then expanded into buildings of centre of education, hospitals, public facilities, residential areas, some of which are still used. Universities such as Al-Azhar in Cairo, Al Qarawiyyin in Fez and Zaitouna in Tunis were founded upon Waqf and for generations have continued to produce great scholars.
There is no direct injunction in the Quran about Waqf. However, there is a hadith reported by Ibn Umar, whereby Umer Ibn Al Khitab acquired land in Khyber and went to Prophet Muhammad (pbuh) and sought advice regarding the land. The Prophet (pbuh) advised that the land should be made inalienable and the profit given to charity. Therefore, Waqf is perceived as a permanent dedication by a Muslim of any property for a good faith purpose that is recognised as being pious or charitable.
In the subcontinent, the most notable public Waqf is the Mohsin Fund. Haji Muhammad Mohsin of Hughli, India and a zamindar of Saidpur estate, endowed in 1806 the whole of his estate income to the maintenance of religious and educational establishments of the imambara, Hughli.
In recent days many banks and financial institutions are running Cash Waqf account which is dedicated for the wellbeing of the society. Cash-Waqf means, "donation of an amount of money by the founder and the dedication of its usufruct in perpetuity for the prescribed purpose". It is targeted to become an effective option for poverty alleviation programmes. These require huge amount of fund which can be mobilised from individuals and institutions of the society.
The concept of perpetuity and inalienability means that once a property, often real estate, is dedicated as a Waqf, it is dedicated forever. However, the terminology of Cash Waqf could be understood as a moveable or alienable concept compared to other Waqf property, which directly refers to immovable or inalienable property. Endowments in this form of cash started to be used in the sixteenth-century. Rich individuals were comfortable implementing Cash Waqf to endow schools, mosques and other public places due to its liquidity. For Cash Waqf all the transactions are in cash with the investment and return generated being used for charity or social services. The investment takes place by lending the capital of the Waqf to the borrowers.
The implementation of Cash Waqf has been continuously debated among religious and legal scholars, even its conceptual understanding. However, the practice of this kind of Waqf seems popular due the necessity to protect liquid wealth and the ease of transaction of charitable works.
Cash Waqf has various benefits due to its flexibility. The minimum price offered could involve many Muslims contributing to the Cash Waqf. As such, through Cash Waqf fund, the abandoned assets, which lack financial support, could be developed for the sake of the economy. The Cash Waqf fund could also support schools and institutions of education that are experiencing liquidity problems as well as maintain other Islamic assets. Cash Waqf fund gives numerous advantages in developing the economy. The Cash Waqf fund could be used as loans in financing small and medium industry business. It could also help in settling debts including assets, such as houses being sold by banks due to bad debts and loan shark problems faced by the Islamic community. In addition, the Cash Waqf could benefit the possession of Muslim assets, as each asset purchased will be Waqf and rented.
Waqf utilises the scope of benevolence, which includes all parts of social welfare even for certain sectors under the government's responsibility such as health, education and defence. This can be seen in the Ottoman Empire, which contributed to the Waqf system through the financing of health, education and the overall welfare. The Waqf system was very successful during the Ottoman era, so much so that a person could be born in a Waqf house, sleep in a Waqf cradle, eat and drink from Waqf property, read a Waqf book, study in a Waqf school, and get paid by the Waqf administration. Some scholars added that when he or she died they will be placed in a Waqf coffin and buried in a Waqf cemetery.
The importance of Waqf, especially Cash Waqf, has been increasingly acknowledged. People from all parts of life could participate in Cash Waqf by contributing money that can benefit Muslims. Perhaps Muslims could progress and develop a better standard of living and be blessed by Allah. In order to attach the perpetuity and inalienability concept, the object of Waqf should be transferred by shifting from the physical being of the subject concerned to the 'dedication' per se.
Our Prophet Muhammad (pbuh) said, "When a person dies, his good deeds come to an end, except for three good deeds: Charity (by which people get benefits on an ongoing basis), a righteous child who prays for him and knowledge (by which people get benefits on an ongoing basis)." Waqf can be a good instrument for the socio-economic development as well as for hereafter deliverance. So, we should contribute to building a Cash Waqf fund which can be utilised for socio-economic development of a progressing nation like Bangladesh.                                                                         
The writer is a banker. The opinions expressed here are his own. Email:[email protected]