Definition of Cash Waqf, Legal Basis and Benefits of Waqf

Definition of Cash Waqf, Legal Basis and Benefits of Waqf

In Islamic law, the definition of cash waqf, legal basis and benefits of waqf . Waqf is not limited to immovable objects but also movable objects including money or cash waqf. In several countries such as Egypt, Jordan, Saudi Arabia, Turkey, Kuwait, waqf is in the form of religious and educational facilities and infrastructure, also in the form of agricultural land, plantations, flats, hotels, shopping centers, money, stocks, real estate and others, all of which are productively managed.

Thus the results of waqfcan really be used to realize the welfare of the people. Throughout Islamic history, waqf has played a very important role in the development of social, economic and cultural activities of Islamic societies and has facilitated scholars and students with adequate facilities and infrastructure that enable them to carry out various activities such as research and complete their studies.

Definition of Waqf According to Law Number 41 of 2004
The definition of waqf as referred to in Article 1 of Law Number 41 of 2004 concerning Waqf, is further expanded in relation to Waqf Assets (waqf objects) regulated in Article 16 paragraph (1) which states Waqf Assets include:
c. Immovable objects; and
d. Moving objects.

Definition of Movable Waqf
Furthermore, what is meant by waqf of movable objects , one of which is money/cash. (Article 16 paragraph (3) letter a Law Number 41 of 2004 concerning Waqf)

Definition of Cash Waqf
Thus what is meant by cash /cash waqf is waqf made by a person, group of people and institution or legal entity in the form of cash. Also included in the notion of money are securities, such as stocks, checks and others.

Legal Basis of WaqfAl-Qur'an surah Al-Hajj verse 77 which means: O you who believe, bow and prostrate yourselves and worship your Lord and do good so that you may be happy.
Al-Qur'an, letter An-Nahl verse 97, which means: Whoever does good, male or female and is a believer, I will surely give a better reward than what they practice.
Al-Qur'an surah AI-Imron verse 92, which means: You will not reach virtue if you do not let go of some of what you like.
Al-Qur'an surah Al-Baqarah verse 267, which means: Spend part of the wealth you have earned well.
The hadith of Rasulullah SAW as narrated by Muslim from Abu Hurairah whose translation reads: When a person dies all his charitable merits stop, except for three kinds of practice, namely: shodaqoh jariyah, useful knowledge and pious children who always pray well for their parents. Scholars interpret the term shodaqoh jariyah here as waqf.
Hadith Narrated by Bukhari Muslim, which tells that one day a friend of Umar came to the Prophet Muhammad SAW to ask for advice about the land he had acquired in Ghaibar (a very fertile area in Medina), then he said: O Messenger of Allah, what do you command me about the land that? Then the Messenger of Allah said: If you want, you can keep the original (root) and you give charity to him, then Umar should give charity to that land, on the condition that the tree is not sold, not donated and not bequeathed.

Benefits of Cash WaqfCash waqf that can be issued with a Cash Waqf Certificate can be carried out with the aim of meeting investment targets, at least in four areas, namely:

1. Benefits of Waqf for personal well-being (world-afterlife).Cash waqf is one of the charities whose rewards continue to flow. Cash waqf as charity plays an important role for a person to achieve prosperity in the world and the hereafter.

2. Benefits of waqf for family welfare (world and hereafter)Cash Waqf Certificates can also be purchased to guarantee the improvement of the quality of life of the next generation through the implementation of educational, marriage and other programs. Because the bank will still be responsible for managing the profits from the cash waqf certificate. Because by managing such a program, cash waqf can be used for the welfare of future generations.

3. Benefits of Waqf for Social DevelopmentWith the profit from cash waqf, one can provide valuable assistance for the establishment or operation of educational institutions including mosques, madrasas, hospitals, schools, courses, academies and universities.

4. Benefits of Waqf to Build a prosperous societyFunds raised from cash waqf will be invested and the results can provide social security for the poor and security for the rich. Finally, cash waqf will become a vehicle for creating care and compassion between the rich and the poor, thereby helping to create harmonious relationships and good cooperation.

That is what we wrote about the Law of cash waqf and the benefits of cash waqf . Hopefully it can be useful for all of you and further increase the cash waqf in Indonesia.

The Implementation of Cash Waqf in the Perspective of Islamic Law After the Enactment of Law Number 41 of 2004 concerning Waqf in the City of Semarang