Waqf is a form of charity in Islam that benefits not only individuals or groups on a large scale. The waqf donor will also receive the virtue of continuous worship even after his or her death. On the other hand, in order for waqf to generate a surplus for sustainable good, the nazir must have the ability to manage waqf funds competently.
As a charitable organization with extensive experience in distributing charitable donations and zakat, here is what donors need to know about the wakaf fund management system operated by Dompet Dhuafa.
Key Aspects of Wakaf Fund Investment Management
In 2005, Dompet Dhuafa launched an institution called Tabung Wakaf Indonesia (TWI). TWI has the important task of collecting waqf funds and assets that will later be used for the benefit of the people. With the establishment of TWI, it is hoped that the distribution of waqf can be optimized. And, make waqf one of the drivers of the people’s economy. To that end, TWI has a waqf fund investment management system, which includes fund collection, waqf fund investment, and distribution of waqf to the mauqul’alaih. The following is a description of each component:
1. Waqf Fund Collection Management
Since 2001, Dompet Dhuafa has successfully raised waqf funds amounting to Rp86,968,000. The amount of funds collected increased rapidly to Rp822,451,600 by 2022. In addition to being supported by the fatwa issued by the Indonesian Ulema Council (MUI) in 2002, the success of this fund-raising effort is also attributed to the professionalism demonstrated by TWI. This wakaf management institution has effectively maximized the potential of cash wakaf to enhance the well-being of the community.
Read also: History of Cash Waqf, a Lifetime Investment
2. Cash Waqf Investment
The second aspect is cash waqf investment management. TWI manages cash waqf that has been distributed by donors through investment channels. In practice, TWI implements a profit-sharing system, a rental system, and murabahah. Furthermore, TWI ensures that the management and development of cash waqf and property are in accordance with their functions, objectives, and purposes. Of course, this is done while still adhering to Islamic sharia principles. In its implementation, TWI applies three types of approaches. These approaches are productive, non-productive, and integrated.
3. Investment Management Approaches
- Productive approach: is a type of approach to managing waqf assets for productive purposes, while at the same time generating profits or returns. The profits obtained will certainly be used for the benefit of the community. Sectors that use this approach include: plantations, livestock, provision of commercial facilities, and other types of productive businesses. The proceeds from these businesses are channeled to drive the economy of the poor.
- Non-productive approach: For this type of approach, TWI manages waqf assets for business activities that do not generate profits. Although there is no material gain, the community can directly benefit from the waqf funds. Waqf funds with a non-productive approach are intended for the construction of hospitals or free schools.
- Integrated approach: The integrated approach combines the distribution of waqf in the form of facilities and infrastructure with waqf for commercial activities. One example is the distribution of waqf obtained from cocoa and coconut plantations. The proceeds from the waqf are used to fund the Mansamat High School in Banggai Regency, Central Sulawesi.
4. Distribution of Waqf
TWI also distributes waqf funds carefully. In order to optimize the distribution of waqf funds, TWI prioritizes three sectors for the distribution of waqf funds, namely the social, economic, and education sectors.
Read also: 3 Benefits of Investing in Waqf Funds
May the review of cash wakaf investment management above further solidify your steps to start giving wakaf. Donors can entrust the distribution of their wakaf to Dompet Dhuafa. With the right management system, this charitable organization ensures that the wakaf funds donated by donors will reach those in need.
