Literally Wakaf means to stop, contain or to preserve. In shariah, a Wakaf (plural: awqaf) is a sadaqah jariyyah (recurring / ongoing charity), a voluntary charitable endowment, from one's personal belongings or wealth in the form of cash / property for shariah compliant causes.
Its purposes must be:
Once it is dedicated as a Wakaf, the ownership of the asset is transferred to Allah S.W.T. allowing a perpetual use for charity.
A Wakif is the Wakaf contributor.
You could be a potential Wakif through planned giving; by writing a will (wasiat) to bequeath your asset i.e.from the sale of your HDB flat after your demise.
However, if you have inheritor(s) or heir(s) to your assets, only up to 1/3 of your asset(s) are allowed to be bequeathed as a contribution. This is in accordance to the Islamic ruling of Faraidh.
This is a Wakaf fund hence only the income can be disbursed. The capital will be kept in perpetuity therefore the income can continue as long as the Wakaf exists. In this sense the benefits from the donation will still accrue to the person even after his or her death (hereafter investments).
There are 4 Key Drivers:
Last updated on 28/9/2019