Everything you need to know about Waqfinity and its purpose.
What is Waqf and how does it work?
In simple words, Waqf is a charitable endowment that generates returns given to a cause for the sake of God Almighty in the form of an asset, such as property or cash, and is given without intention of return. The donor gets perpetual rewards for his ‘ongoing charity’ and truly fulfils the hadith;
Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “When the human being dies, his deeds end except for three: ongoing charity, beneficial knowledge, or a righteous child who prays for him.”
Source: Ṣaḥīḥ Muslim 1631
Who can make a Waqf?
Anyone can have a waqf regardless of age, gender, religion or ethnicity.
What is the return?
Returns differ from project to project and are based on various factors, such as market stability and economic conditions. However, we aim to have a target return of 7%. This is based on us ensuring we stick to a risk profile that is appropriate for charities and follow the guidance of the commission in these matters.
Why can you not fix a return?
We ensure that all our investments are Shariah-compliant and follow all the relevant rules for building our projects. In addition to sourcing finance from appropriate Islamically constructed funds, we also make sure that the risk is shared. For this reason, we cannot fix a return because the Islamic principle ‘there can be no profit without risk of loss’, is integrated into our policy.
Can I terminate or demand a refund of my Waqf?
A Waqf is a donation made for the sake of God and is given to seek His pleasure. It cannot be terminated or refunded because the money is surrendered to God, through a custodian, in this case through Waqfinity. Waqfinity assists you with ensuring your intention for on-going charity is achieved and as such funds given are ultimately donated. You can confidently let us manage the digital Waqf foundation that we create for you.
Can I give my zakat money in Waqf?
No. Waqf is sadaqah (charity) and has to be given separately as it does not come under the criteria of zakat.
What are the eligibility criteria to create a Waqfinity account?
To create an account, you must be above 18 years of age, but you can create a Waqf foundation from your account for anyone of any age and even for those who are no longer with us.
How will my money be invested?
At this stage, we are investing primarily in real estate, with our industry-standard investment team carefully examining and assessing various investment opportunities. Each business case is reviewed on its individual merit and considered alongside the need to get the optimal return with a risk level appropriate under charity commission guidance.
What is the minimum Waqf contribution amount?
There is no minimum amount to open a Waqfinity account, although the account will not be able to start investing until its balance is at least £1000 GBP.
Can I close my account if I no longer want it?
You can close your account any time you want by simply going to your account and selecting the ‘close account’ option. Once you deactivate it, you will revoke your rights to access and manage your foundation and its funds in the future, and Mercy Mission UK will take over that responsibility for you.
Can I transfer my account to someone else and let them manage it for me?
Yes, you can. You will find an option on the ‘My Waqf’ page where you can appoint somebody to manage your account for you.
Can I get a refund of my Waqf money?
Waqf is a contribution for the sake of God and is given without expectation of return. Once the transaction is made, the money is gone and you earn rewards for eternity.
What are the chances of incurring a loss?
As is with any investment, there is always a risk of loss. The rule of thumb we need to remember is that risk and reward are closely related. The greater the risk, the higher the return potential, and the lower the risk, the lesser the return you may get. Another factor that can significantly affect returns is the stability of the market. Gross economic fluctuations like inflation or economic crisis can result in lower currency evaluation, which, in turn, can affect the value of your Waqf and lower the returns. All these are an inevitable part of the investment process. But the one thing that should motivate and propel you towards taking this step is the vast reward you will earn through your Waqf. And that reward is beyond any return you can get in this world. As we know, there is khayr for a mu’min in every situation. Until now, we have no loss making assets in our portfolio of over £2m GBP.
Will I get any confirmation of my contribution for tax purposes?
We will issue a Waqf certificate every time you make a contribution, which can be used for tax purposes. We also facilitate reclaiming Gift Aid to maximise your contributions.
What happens to my account if I die?
Your appointed heir on the ‘My Waqf page’ can take over your account and continue to manage it. The foundation in your name can be converted into a Memorial Waqf for you and can continue receiving contributions from your loved ones to benefit you in the hereafter.
Can I raise funds for my Waqf Foundation collectively through social media?
Yes, you can. All foundations will have a feature of a public page that can be shared on social media and receive contributions.
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