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Wednesday, March 31, 2010

Investing Waqf

Q: 1. If members of a certain family initiated the building of a masjid, can they stipulate that only they would be allowed to be custodians of the institute?
2. Can members of a particular Islamic Organisation embark on establishing a business with the intent that such a venture would enable the Organisation to be self maintaining?

.1. If they have given the Masjid in Waqf, they can stipulate they will be the custodians. (Raddul Muhtaar V17 P308).

2. If the Organisation wishes to establish a business using public or Waqf funds then there are two conditions to comply with:
1) It is compulsory to obtain permission from the donors and contributors for such a business. If the donors are not known then issue a public notice stating that the Organisation intends investing the money collected into a business venture or company shares, etc. Details of the business enterprise must be published as well as the projected profit growth. The notice should also ask any donor who objects to this to come forward and make his objection known, and also state how much he has donated. Leave the notice on the board for at least a week,. Upon receiving no valid objections, the Organisation may go ahead with the business.
2) The venture must not be a high-risk one. There must be the best possibility of earning healthy profits for the Waqf organisation.

If these two pre-requisites are fulfilled it will be permissible to invest the money.
Mufti Siraj Desai