International examples of secular Waqf
The concept of Waqf - or endowment - came from Islam, with the first Waqf in Islamic history being the Quba Mosque. The first to endow an asset for charitable purposes was Umar ibn al-Khattab (may Allah be pleased with him) followed by the Awqaf (plural of Waqf) of the companions, and those continuing the practice up to the present day.
The Western world was inspired by the idea of Waqf for its significant impact on community development and enhancing the spirit of cooperation within it. Just as Awqaf spread in the Islamic world, other global Awqaf were also established by non-Muslim founders.
- Stichting INGKA Foundation in the Netherlands
This organisation is a Dutch foundation established in 1982 by the Swedish billionaire Ingvar Kamprad. It is one of the largest Waqf foundations in the world and the second largest non-profit organisation globally. It focuses on youth projects, income-generating projects, disease control projects, and projects for the disabled. The foundation owns INKKA Holding, headquartered in Leiden, controlling 315 IKEA outlets, owning shops, factories, several global brands, and franchise programmes. The Waqf is valued at $39 billion, employing more than 234 employees.
- Wellcome Trust Waqf
Founded in 1936 as an independent charity fund to finance research and improve human and animal health, the foundation aims to make significant health improvements by supporting creative thinking, in addition to supporting biomedical research. The fund also supports the simplification of science for the general public in the field of medical research.
Wellcome Trust is the largest provider of non-governmental funding for scientific research in the United Kingdom, and one of the largest service providers in the world in medical research. It is the second-largest private sector funder in the world after the Bill & Melinda Gates Foundation.
The investment portfolio of the Wellcome Trust Waqf is £23.3 billion, benefiting more than 70 countries around the world. In 2015, the value of the grants provided by the Waqf reached approximately £952 million.
Wellcome Trust focuses on lower-risk and long-term investments to maximise outcomes and social impact. It also focuses on creating alliances and strategic partnerships with local and global organisations, maintaining management independence, and adopting clear policies for autonomy. Wellcome Trust employs approximately 2,057 staff.
Many types of Waqf globally
The Indian government itself encouraged the development of Awqaf through micro-loans. It established the exclusive Islamic Awqaf development programme, allocating a financial grant of Rs 500,000 used by the Central Waqf Council to provide small loans for financing Waqf projects in Indian cities.
They managed to increase the amount to Rs 150 million over 25 years, with the amount remaining invested in Waqf loans to this date, and its returns are capital for the fund.
There are many types of Awqaf; the most notable are the private Waqf organisations, totalling 103,880 registered organisations, constituting 74% of the actual number of these organisations. Their cash income for 2005 was about $242 billion, with fixed assets exceeding $421 billion.
Also notable are the public charitable organisations, numbering 332,988 registered organisations, making up 39% of the actual number, with cash and donations provided to them in 2005 amounting to approximately $1.5 trillion. Their fixed assets for the same year reached about $2 trillion.
Many Western Waqf organisations fall under the category of private endowment foundations. An example is the “Buffett Foundation” which was founded by the American Warren Buffett. Its Waqf is valued at $37 billion, which equals 85% of his wealth.
Among the most prominent Western educational Awqaf are the Harvard University Endowment. The Harvard Management Company was established in 1974 to manage Harvard University's Waqf. It is unique among investment management companies as it manages the financial affairs of the world's largest university’s Waqf, which in 2012 amounted to approximately $30,435 billion.
Harvard Management Company aims to achieve long-term investment results that support the university's educational and research objectives. It has a specialised team for the ‘public markets trading platform. In addition, it has another team for the alternative assets trading platform to manage investments in a way that provides the company with full flexibility and intelligence in dealing with market fluctuations. The company has achieved significant capital growth.
