ZAKAT, WAQF, ENDOWMENT, AND EVIDENCE-BASED CHARITY: LESSONS FROM THE LIFE OF THE PROPHET MUHAMMAD (S.A.W.)
23RD February, 2025
OUTLINE
1. Introduction
Charity is a cornerstone of Islamic social and economic justice. The principles of Zakat, Waqf, and endowment have played a crucial role in shaping sustainable charitable systems throughout Islamic history. Prophet Muhammad (peace be upon him) established a framework through divine revelation that not only ensured the equitable distribution of wealth but also institutionalized long-term social welfare. Today’s emphasis on evidence-based charity —with its focus on data-driven impact— resonates with these traditional Islamic practices by seeking to maximize benefit and accountability in charity.
This paper explores how these concepts intersect, with a particular focus on their application in healthcare, a field of enduring importance to the medical community. As alumni of Ahmadu Bello University Zaria, your expertise in medicine and research can bridge the rich heritage of Islamic charity with modern evidence-based practices.
2. Zakat and Waqf: Overview
2.1 Zakat Definition and Significance
Zakat is one of the five pillars of Islam. It is a mandatory charitable obligation for eligible Muslims, designed to redistribute wealth and reduce socio-economic inequality. The Qur’an explicitly outlines its categories of beneficiaries:
“The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives, and the debt-ridden, and for the cause of Allah, and for the stranded traveler—a duty ordained by Allah, and Allah is Knowing, Wise.” — The Qur’an (9:60)
2.1 Zakat Definition and Significance
Zakat is both an act of worship and a systematic tool for social justice. Scholars such as Yusuf al-Qaradawi have provided extensive commentaries on its economic and spiritual dimensions (al-Qaradawi, 1999).
Moreover, contemporary research has shown that well-administered zakat funds can effectively contribute to public health and social welfare (Siddiqi, 2004; Chapra, 2000).
2.2 Waqf: Definition
Waqf Literally means to stop, contain, hold back, or preserve. Scholars characterized waqf as deprived of rights from sale, inheritance, grants, and wills.
Thus, waqf retained its resources or physical properties. The benefits of waqf are used for specific or general welfare purposes for the ummah with the intention to bring the person who performs waqf closer to Allah SWT.
2.2 Why Islam Encourages Waqf
Allah (S.W.T.) Says:
From Abu Hurairah RA, Rasulullah SAW said:
2.2 Why Islam Encourages Waqf
Allah SWT says in Surah Ali Imran verse 92 which means:
When Abu Talhah heard this, he expressed his wish to endow his properties, so he came and asked for further explanation from the Prophet (S.A.W.)
2.2 Why Islam Encourages Waqf
Anas RA said: "When the verse was revealed, Abu Talhah RA came to see Rasulullah SAW and said: 'O Rasulullah, Allah SWT says in His Holy Book, “For me, my most beloved treasure is in Bairaha.”�The narrator said: It is a garden that is often visited by Rasulullah SAW; he often took shelter and drank its water. So this is the right of Allah SWT and Rasulullah SAW. I pray for goodness and rewards.
Rasulullah SAW responded:
"It is good, O Abu Talhah, but the property is very valuable. We accept your gift, but we give it back to you. Give it to your relatives.“
Abu Talhah then:
(Reported by Bukhari)
2.3 Types of Waqf
Waqf can be divided into two types:
1. Family Waqf أهلي)): The benefits of waqf are reserved for family members and descendants of the waqif (the donor). Example: Abdullah endowed his bungalow house, which the benefits can only be used by his family members and descendants.
2. Waqf of Virtue خيري)): It is used for charitable purposes only. It can be further divided into two subcategories:
2.4 Pillar and Conditions of Waqf
Waqf
Waqif
(The Donor)
Mauquf (Waqf Property)
Mauqufun Alaihi
(Waqf Beneficiary)
Sygah
(The Utterance)
1. Intellect
2. Baligh (reach puberty)
3. Voluntary
4. Bankruft-free
5. Capable of managing one’s own properties
6. Critically illed waqif (fatal) can only contribute 1/3 of his properties to waqf
7. Performing waqf through wasiyyah (will) is subject to wasiyyah law
1. Halal and can produce benefits
2. Fully owned by the waqif
3. Clearly defined (Ta’yin)
4. Ownership is transferable
5. Can produce lasting benefits
1. Muslims
2. Kafir Zimmi (Muslim-friendly kafir)
I Ahmad bin Yusuf endow a piece of land that belongs to me in No. 5, Tudun Wada Road, Sokoto to build a mosque on it because of Allah (S.W.T.).
Top 10 Endowments in by Total Assets
https://www.swfinstitute.org/fund-rankings/endowment
2.5 Virtues and Advantages of Waqf
2.6 Waqf Contribution to Economy
2.7 Challenges in Promoting Waqf
Waqf
Ignorance
Inadequate Legal Backing
Violation of Waqf Properties
Insufficient Fund
3. The Prophet’s Approach to Charity
3.1. Zakat as a Wealth Redistribution Mechanism
The Prophet Muhammad institutionalized the collection and distribution of Zakat to ensure that wealth reached those most in need. His practices laid the groundwork for transparent and accountable governance in charitable activities.
This system remains a model for modern social finance, where accountability and impact measurement are key (El-Gamal, 2006).
3.2 Waqf in the Prophet’s Era
Ibnu Umar said: "Umar had a piece of land in Khaibar, so he came to see the Messenger of Allah SAW to ask for an opinion on the land and he said which means:�'O Messenger of Allah SAW, verily I got a piece of land in Khaibar, in which I did not get any more valuable property for me other than it, (though I aspire to draw near to Allah SWT), what do you command me with it?”
The Messenger of Allah SWT said to him: "If thou wilt hold (freeze) the land, and give alms of its benefits.“
Thus, Umar donated the benefits on the condition that: The land (mauquf) could not be traded, donated (given), or inherited (passed to heirs). The benefits of the land were endowed to the poor, relatives, freed slaves, ibni al-sabil (travelers), and guests.
There is no impediment for the person who manages (Nazir) to take reasonable wages from it, without assuming that the land is his own.�— Sahih al-Bukhari, Hadith 2737
Similarly, Uthman ibn Affan’s Well of Rumah became a significant public asset after he purchased it and made its benefits available to all, setting an early precedent for sustainable public service (Sahih al-Bukhari; Sunan Abu Dawood, Hadith 3855).
3.3 Healthcare and Medical Welfare
Islamic civilization was notable for its pioneering healthcare institutions. Hospitals (Bimaristans) funded by waqf provided free services long before the advent of modern state-sponsored healthcare. The Prophet Muhammad’s encouragement of medical treatment is well documented:
“Make use of medical treatment, for Allah has not made a disease without appointing a remedy for it.” — Sunan Abu Dawood, Hadith 3855
Historical texts such as “The Canon of Medicine” by Ibn Sina also underscore the integration of medical care with charitable endowments, further solidifying the link between healthcare and Islamic social finance (Ibn Sina, 1025/2001).
4. Evidence Based Charity: Linking Islamic Tradition with Modern Philantrophy
4.1 Definition and Importance
4.2 Islamic Emphasis on Effective Giving
4.3 Modern Applications in Medical Philanthropy
Modern evidence-based charity is visible in initiatives such as:
Research indicates that these approaches can significantly improve outcomes in public health (Siddiqi, 2004; El-Gamal, 2006). Moreover, studies on Islamic social finance suggest that integrating traditional charitable models with modern impact assessments can enhance efficiency and accountability (Ahmed, 2009; Khan, 2012).
4.4 Waqf Cooperatives: A Community-Based Model
Waqf cooperatives are an innovative approach to managing and leveraging waqf assets through a cooperative framework. This model enables communities to pool resources, share management responsibilities, and collectively oversee the use of waqf funds for social welfare projects.
Collective Management: By forming cooperatives, beneficiaries and community stakeholders can actively participate in the management and decision-making processes. This fosters greater accountability and ensures that the waqf assets are used to address local needs.
Resource Optimization: Waqf cooperatives can streamline the maintenance, development, and utilization of waqf properties, leading to improved outcomes in sectors such as healthcare and education.
Social Enterprise and Impact: Integrating cooperative principles with waqf management not only preserves traditional charitable practices but also introduces modern governance, transparency, and efficiency. This hybrid model has the potential to significantly enhance the social and economic impact of waqf assets (Hasan, 2007; Khan, 2012).
4.5 Baitul Mal Wattanwil (BMT)
BMT is a community-based Islamic financial institution that combines social (Baitul Maal) and commercial (Baitul Tamwil) services. Nigeria can adopt this dual role to address financial exclusion while also providing social welfare services. The aim of the BMT model is to graduate zakat recipient to zakat giver. One of the best BMT implementations is TAMZIZ in Indonesia.
5. The Role of Medical Professionals in Zakat and Waqf-Based Healthcare
5.1 Doctors as Beneficiaries and Contributors
Medical professionals have a dual role: as beneficiaries of the established charitable infrastructure and as contributors who can help optimize and innovate within these systems. By supporting waqf-funded clinics or advocating for the allocation of zakat toward healthcare, doctors can directly impact community health. Their involvement can also bridge the gap between historical models of care and contemporary evidence-based practices (Chapra, 2000).
5.2 Practical Steps for Implementation
6. Zakat and Waqf Health Projects Around the World
Islamic Relief Worldwide – Mobile Health Clinics, in Syria and Kenya
The Indus Hospital in Karachi, Pakistan
SOZECOM Waqf Hospital, Sokoto
Physicians Across Continent (PAC)
Free Dialysis, LZNK, Malaysia
Free Eye Surgery Project, Qatar Charity
7. Conclusion
The synergy between Islamic charity principles and evidence-based philanthropy offers a powerful roadmap for sustainable social welfare—especially in the healthcare sector.
The legacy of the Prophet Muhammad’s approach to charity provides timeless lessons on equity, accountability, and compassion.
By institutionalizing zakat and waqf-driven healthcare, we honor this legacy while leveraging modern research to maximize impact.
8. Call to Action
As medical professionals and community leaders, you are uniquely positioned to champion these models.
I encourage you to explore ways to integrate evidence-based practices with traditional charitable approaches in your professional and personal endeavors.
Let us work together to build a system of care that is both faithful to our rich heritage and responsive to today’s challenges.
9. References
Ahmed, I. (2009). Waqf, Economic Development and Social Welfare. International Journal of Islamic Economics and Finance, 1(1), 50–67.
Alam, M. (2012). Modern Applications of Baitul Mal in National Economies. Journal of Islamic Finance, 8(3), 75–92.
Al-Qaradawi, Y. (1999). Fiqh az-Zakat: A Comparative Study. King Abdulaziz University Press.
Chapra, M. U. (2000). Islamic Economics: What It Is and How It Developed. The Islamic Foundation.
El-Gamal, M. A. (2006). Islamic Finance: Law, Economics, and Practice. Cambridge University Press.
Hasan, R. (2007). Waqf Cooperatives: A New Frontier in Islamic Social Finance. International Journal of Islamic Economics, 3(1), 25–38.
Ibn Sina. (2001). The Canon of Medicine (L. E. Newman, Trans.). Kegan Paul (Original work published ca. 1025).
Iqbal, Z. (2011). Baitul Mal: The Treasury of Islamic Governance. Islamic Economic Studies, 15(2), 89–104.
Khan, M. A. (2012). The Role of Waqf in Islamic Social Finance. Journal of Islamic Economics, 5(2), 115–132.
Khan, M. A. (2012). The Role of Waqf in Islamic Social Finance. Journal of Islamic Economics, 5(2), 115–132.
MacAskill, W. (2015). Doing Good Better: Effective Altruism and a Radical New Approach to Giving Back. Guardian Faber Publishing.
Sahih al-Bukhari. (n.d.). Hadith 2737.
Sajdi, D. (2013). The Barber of Damascus: Nouveau Literacy in the Eighteenth-Century Ottoman Levant. Stanford University Press.
Siddiqi, M. N. (2004). Rethinking the Islamic Economy: Social Justice, Distribution, and Welfare. Islamic Research and Training Institute, Islamic Development Bank.
Haron, et al. (2020). Basic Understanding of Waqf. Yayasan Waqf Malaysia. ISBN 978-967-13441-0-1. FIRDAUS PRESS SDN BHD, Malaysia.
Sunan Abu Dawood. (n.d.). Hadith 3855.
The Qur’an. (n.d.). Surah At-Tawbah (9:60).
Thank You ☺