The humanitarian charity, Human Appeal, has launched a new subsidiary called the Waqf Fund in an effort to increase long-term charitable funds for its projects worldwide.
Waqf is an Islamic endowment that involves the permanent transfer of wealth for a charitable purpose and is a common form of good deed recommended in Sunnah Islamic teachings.
In its announcement, Human Appeal said the global value of waqf assets had been estimated at up to $1tn by the World Bank.
Through the waqf model, donations are pooled into a central fund that is invested into assets that comply with halal and Sharia laws, such as property.
The original capital of the donations is then preserved, and income derived from it will fund Human Appeal’s global development projects through the general waqf fund or specific categories which align with donors’ values, such as water and sanitation, education and healthcare.
Waqf donations have an average annual return of 7% on donations, meaning that contributions compound over time through partial reinvestments.
Income generated from each donation is allocated across the active initiatives for each sector, with a portion of the income being reinvested to grow the fund further, to increase its long-term impact.
According to Human Appeal, its Waqf Fund will offer a flexible donation model that facilitates contributions of any size.
Chief executive Mohamed Ashmawey said: “The announcement of our new subsidiary, the Waqf Fund will support our goal of providing relief to the world’s most vulnerable communities.
“We look forward to the future of long-term donations and donor legacies as part of our charity work with the Waqf Fund."
