The majority of Islamic jurists are of the view that Waqf as charity is permissible in Shariah.

‘Donation’ is a broad term that refers to funds or something of benefit that a person freely gives, either directly or through a charity. In an Islamic context, the donor intends to do good for the sake of Allah, without expecting anything in return. A donation can take many forms including giving charity, a gift, leaving a legacy through a will, offering a loan, funding sponsorships or donating a Waqf.
A Waqf involves dedicating money or an asset like property for the general benefit of society. A donated Waqf rules out the possibility of its repossession for personal gain. Instead a Waqf donation, and the money generated from its assets, are invested to further benefit society. For example, IBW uses the proceeds from Waqf donations to fund various charitable projects, ensuring the continuity of the Waqf and its ability to increase the benefit to those in need.

Waqf is mainly divided into two types:

Charitable Waqf: This is when proceeds are spent on a public charitable cause that does not cease. Charitable Waqf may be permanent or temporary (with the exception of mosque Waqfs, which are always permanent).

Private/family Waqf: This initially intends to benefit the relatives of the donor or specific individuals. Proceeds from the Waqf are allocated to the donor’s family members and its reward goes back to the donor and their relatives. This is usually a temporary Waqf.

There is also a joint Waqf, which combines elements of the charitable and private Waqf.

The beneficiaries of the Waqf are the entity or people to whom proceeds of the Waqf are disbursed. The kind of benefit they receive depends on the charitable cause.

The mawquf: This is the money that the donor has given as Waqf and dedicated its proceeds for the purposes of social benefit.

The mawquf on: It is one of the conditions of the Waqf to choose a cause for which revenue or proceeds will be allocated, and that is called the “mawquf alayh”, or the mawquf on.

If a Waqf property becomes unfit to be used for the purpose intended, i.e, the Waqf ceases to deliver its purpose, it is sold and its replacement is bought and dedicated as a Waqf. For example, if a mosque is donated and the dwellings around it are abandoned resulting in no more prayers being performed, the mosque would be suspended as a Waqf.

The conditions may be violated if:

- Implementing it is no longer in the interest of the Waqf, such as if there is no-one willing to endow it except in a way that contradicts the condition of the donor. - Implementing the condition is no longer in the interest of the subject of the Waqf, such as the requirement of celibacy, for example. - Implementing the condition becomes obsolete for the donor, such as stipulating that a specific person should lead the prayer and it appears that they are not qualified to lead the prayer. - It is necessitated by a greater interest, such as if land is endowed for the purpose of agriculture and that is no longer a possibility due to it becoming urbanised; then the greater interest should be a priority.

Jurists believe that it is not permissible to revoke a Waqf, because the basic principle is that it is permanently binding once issued by its owner. However, the Hanafi jurist Imam Abu Hanifa asserted that the Waqf is not binding and the donor has the right to revoke it, unless the Waqf is for a mosque in which case it is permanently binding.

In Kuwait, the Royal Order adopted the opinion that it is permissible to revoke a Waqf, in whole or in part, whether charitable or private. It is also permissible to change its expenses and conditions, except in the case of a mosque or cemetery (according to the General Secretariat of Awqaf).

It is permissible for one or more people to partner in the formation of a Waqf, whether the form of participation is in cash or shares. It is also permissible to participate in the formation of a Waqf through monthly, annual, or other periodical instalments.