The corporate waqf
Corporate waqf is a creative and innovative activity in the way it uses and applies the concept of waqf. It is about using the modern machinery of a company and its efficiency to optimize waqf’s objectives.
Much like the conventional waqf, the corporate waqf can be established through voluntary and pious acts of charity, generosity, and altruism involving the endowment of one’s property to benefit the chosen beneficiaries and the long-term interest of the community. Community as a whole.
A conventional waqf is more often associated with acquiring material goods such as land, buildings, physical infrastructure, and others. In practice, conventional waqf may also involve the waqf of cash and stocks. The corporate waqf goes beyond the waqf entity, which would be just an owner with passive possession of the property and equity, using the earnings or dividend payments from those shares for the intended beneficiaries’ sake.
In the corporate waqf, the mutawalli (manager) is not only a waqf keeper, but he has the responsibility to act with the company’s means to increase the value of assets and improve the institution’s cash flow and thus maximize the income of beneficiaries.
He can also act autonomously (within the trust or waqf deed) and exercise discretionary powers of management. In practice, however, it is wise to subject these discretionary powers to a corporate decision-making structure. Such a structure can be adapted from a management and decision-making framework normally adopted and practiced by companies.
Either way, an effective corporate waqf must succeed in moving towards a position of control over its investments, if not in aggregate, at least in some key strategic companies. Such ownership of control or influencing voting power will grant the waqf enterprise effective control over all assets – tangible or intangible – as well as their use. In this way, she can influence the business’s impact to ensure maximum benefits will flow to its targeted beneficiaries as defined by the waqf trust deeds. This adapted version may include, for example, the appointment of CEOs, who are held accountable to an oversight board.
The conventional waqf vs the corporate waqf
The corporate waqf differs from the classic waqf in one of the following ways :
With effective management, the waqf can better produce a high and sustainable return for the beneficiaries.
In short, corporate waqf is an effort to revive the waqf role by inserting the corporate mechanism’s efficiency.
The levers of participation
Also, community participation is a key part of the philosophy of many institutions, especially businesses. Through the waqf, charitable giving is a way for individuals, businesses, owners, and employees to give back. Fundraising brings donors together to support a common cause and helps raise a company’s community profile.
Knowing what motivates people and businesses (institution) to contribute to voluntary and charitable activities, including waqf, helps to define a strategy to ensure that this idea is successful.
Many people donate to organizations that work for causes where they have personal connections. For example, a person with a family member with cancer can get involved with a cancer charity.
Employees in companies feel good knowing that their employers care about giving back to the community, especially in waqf. Matching funds are another way to get employees involved in charities and let them know the organization cares about their lives, even outside of the office.
A business is as strong as the community that surrounds and supports it. Healthy communities feed on healthy businesses. Your cash donations can go to causes that promote better health, fund medical research, stock food banks, or support organizations that fight poverty. Investing in charities is like investing in a better future for employees and for the business itself. Therefore, today’s corporate Waqf should have a particular focus in terms of distribution to beneficiaries and charitable activities to motivate community engagement.
Promoting the business is a positive side effect of charity action and corporate waqf giving. Sponsorship of events can make the name of the business known to the community. The organization may, therefore, consider focusing part of its marketing budget on charitable giving.
The Income Tax Service allows individuals and businesses to deduct certain charitable contributions. These monetary donations must be made to a registered non-profit-making organization.
Some solutions to motivate waqf
Moving forward, to resolve these waqf awareness issues, especially the corporate one, we would need to: