WAQF
Definition: A perpetual charitable endowment where cash is donated, invested in a sharia compliant low risk investment with a portion reinvested to grow the principal and battle inflation
Nature: Timeless, voluntary, continous and growing.
Purpose: Income can be used for immediate financial needs or long term projects.
Reward: Growing and Endless Rewards even beyond the lifetime of donor. due to the nature of waqf, Rewards multiply with time.
Example: Rumah Well land providing water, dates that are sikd with proceeds directed towards different charitable causes.
SADAQAH JARIYAH
Definition: A form of continuous charity that provides ongoing benefits.
Nature: Voluntary and continous.
Purpose: to build something that continously directly benefits people.
Reward: Continous Reward even beyond the lifetime of the donor.
Example: Planting an olive tree, that continues to provide olives, where it can be directly sold or donated to be further processed, ie: produce Olive oil
ZAKAT
Definition: An obligatory form of charity, one of the Five Pillars of Islam, requiring Muslims to donate a fixed portion (usually 2.5%) of their accumulated wealth annually to those in need.
Nature: Mandatory and periodic (annually).
Purpose: Provides immediate financial assistance to certain eligible recipients.
Reward: Muslims are rewarded for obligatory Zakat but are also accounted for it if they are eligible to give but they don't.
Example: Calculating 2.5% of your savings and giving it to a charity that distributes it only to eligible recipients.
