Discrepancy of Cash Waqf Meaning: A Critical Review with Special Focus on Selected Shariah Resolutions

This paper aims to critically review the literature with respect to the meaning of cash waqf that reflects the formation of waqf structure and mechanism. Focusing on selected Shariah resolutions, the review intends to examine the juristic reasoning of such resolutions in identifying the discrepancy and addressing any possible gap. The outcome of the paper aims to foster a greater number of future research towards sustainable development of cash waqf. For this review, a range of documents have been collated and analysed to capsulize the essence of the scoping matter including the selected Shariah resolutions and standards. As such, the paper inclines to the fundamental analysis approach whereby the data will be comparatively reviewed for establishing a critical evaluation and outcome. The review indicates three connotations of the term used: (i) Cash or money as waqf asset – henceforth, the utilization may attract Shariah concern; (ii) Cash as waqf asset which then be converted into tangible asset – aside the usage of term istibdal by some for this conversion, the usufruct of the asset will be benefitted for waqf purposes. Thereby, the Shariah rules of waqf contract and istibdal is a concern accompanying the maqsid (objective) of such contract; (iii) Cash is gathered from more than a party via syndicated contribution or crowdfunding, to acquire the waqf asset – despite the used term, cash is not construed as waqf asset. Apart from the aforementioned interpretation, the term might be outlandishly used to indicate the donated money, which is accurately meant for sadaqah .


Introduction
Waqf plays a significant role in the Islamic social framework. Acknowledging such concept applied long before in earlier civilization, for which Islamic Shariah heavily promotes waqf, so that the community or social sector including non-Muslim would benefit from it. It is regarded as an economic development tool particularly to fund the construction or acquisition of infrastructures and facilities for the public. Waqf does not only deliver the tangible presence, but also brings along the spiritual devotion of charitable giving. In other word, it can harness the potential of selfless charitable giving in an effective way for a better economic impact in the targeted social segments of society (Hassan et al., 2021).
Various definition had been given to the term waqf by the scholars (Al-Fiqhiyyah, 2006). In principle, waqf describes the preservation of the waqf asset and benefitting it perpetually for charitable purposes. This is based on the hadith of 'Umar RA, which Prophet SAW said (Al-Shafi'i, 2004, v.3 p.5;Al-Baihaqi, 2003, v.6 p.168): ‫ب‬ َ ‫َح‬ Preserve the origin, dedicate the benefit for charitable purposes Asl in this hadith refers to the subject matter of waqf or waqf asset. It is also termed as mawquf. The waqf asset shall then be benefitted by the beneficiaries or so-called mawquf 'alaih for charitable purposes. The asset can be utilized for two main purposes, namely usage and investment. For the usage purpose, the benefit could be in a form of usufruct, whereas for the latter, the benefit could be in a form of cash or profit return, or in-kind.
Cash Waqf is the new contemporarily introduced term, indicating the monetary transaction for waqf purposes. In relation to this matter, the classical scholars had discussed the verdict of money or cash as waqf asset where majority of them prohibited it, while some others allowed it. Reason for their disputes echoed as a result of endowing something for waqf that perishes by consumption. Those who prohibited it argued that the money is perished by consumption as it is a medium of exchange. For those who allowed it, the money or cash could be benefitted from it while maintaining its value, for example, to use it for lending, and capital of investment or business venture (Al-Fiqhiyyah, 2006).
Notwithstanding, the term Cash Waqf could be interpreted into several connotations as follows i. Cash or money as absolute waqf asset (mawquf) -it is disputed by classical scholars as mentioned earlier, but its permissibility has been resolved by few contemporary Shariah bodies. ii. Endowed cash or money or requires conversion into tangible or physical waqf asset -in order to obtain perpetual benefit; this fatwa has been enacted by many states in Malaysia. iii. Money or cash is gathered to construct or acquire waqf asset such as land and building -This is close to a sort of philanthropic crowdfunding or syndicated donation for waqf purposes donated by one or more parties. iv. Cash or money or is gathered for philanthropic purpose but by way of perishable consumption -this is merely normal Sadaqah and not waqf; perhaps due to the custom use of language. v. Other interpretation relates to the above either in a form of hybrid or component of overall asset etc. (as the case may be). This paper presents the result of literature review regarding the discrepancy of Cash Waqf meaning. Despite of the Shariah arguments on the ruling of cash as waqf asset, this paper aims to comparatively examine the content of the previous research and Shariah resolutions, capsulize a structural overview to identify the discrepancy and gap to which future research might be oriented. The outcome might be significantly needed to eliminate the existing boundaries for sustainability development of cash waqf.
The paper is structured into two sections. The first section discusses the review of the academic literatures. Subsequently, the next section discusses the Shariah resolutions of the matter, which is the main concern of this paper. Then, the review summarizes the literature, identifies and clarifies the discrepancy and gaps.

Review of Academic Literature
By default, the literature is confined to recent indexed or refereed journals where Cash Waqf is a primary subject. Initially, the preference is for the journal from juristic perspective, which especially falls under the Malaysian jurisdiction that are governed by various authorities. However, due to the unavailability of extensive and sole discussion from such perspective, some samples have been screened for this purpose whereas more focus will be presented in the subsequent section. In few cases, the screening criteria is extended to the older publication of max 10 years backward.
As a result, 22 journals have been identified, and their scope of discussion is depicted as follows  (2017) Literature Review: (Waqf Sources); (Contemporary Issues); (Implementation); Most of the above-sampled articles have described that, either by themselves or quoting from other authors or scholars, the cash waqf is an endowment by a party or donor (so-called waqif) in a form of money for waqf purposes. However, only few of them have elucidated the subsequent financial mechanism of such donation, as well as discuss about Shariah provision or enacted law for cash waqf.
According to Mohsin (2013), as she referred to Monzer Kahf's paper, there are two types of Cash Waqf, namely direct and indirect Cash Waqf. For direct Cash Waqf, the accumulated funds are channelled directly to re-develop any old waqf property using istibdal (exchange) rule. On the other hand, the latter is meant for investment where the profit will be channelled to the beneficiaries. Nevertheless, the author had only discussed from the conceptual perspective without considering the feasibility of implementation in actual financial landscape vis-a-vis regulatory and Shariah-coded provision.
Similar concept had been discussed by Sulong (2017), where the authors mentioned the Cash Waqf from Shariah perspective and compiled the enacted law and fatwa in the ASEAN countries regarding the matter. Discussion on fatwa had also been discussed by Ramli (2019), where the fatwa issued by Shariah bodies was compiled and analyzed. However, both papers did not really criticize the existing enactments and fatwas that may restrict the development of cash waqf.
As such, this paper aims to complement the above literatures for the sake of providing inputs for future research in several areas. In this regard, it is essential to review the available Shariah resolution, standards and fatwa for a forward-thinking development of the sustainability of cash waqf, while taking into consideration the current financial and economic landscape.

Review of Shariah Resolution and Standard
Several resolutions issued by some of the standard-setting or referral bodies have been reviewed to understand the interpretation of cash waqf, which then leads to different mechanisms applied. To serve this purpose, the Shariah resolution, fatwas and standards issued by the following bodies are selected:

Resolution by Majlis Ulama Indonesia
Among the earliest Shariah resolution issued by contemporary Shariah body is the fatwa title "Wakaf Uang" (cash waqf) issued by MUI in 2002. The fatwa states (MUI, 2002): 5. The principal value of cash waqf must be secured in terms of its sustainability, cannot be sold, given and/or inherited.
The fatwa defines Cash Waqf as a waqf that is executed in a form of money by individual or non-individual. In other word, the cash or money endowed for waqf is the waqf asset. The fatwa have not mentioned about the status of transaction using that money, for example, buying and selling the fixed, tangible or physical asset. However, it could be understood in the last item that the principal amount or value shall be preserved to meet the objective of waqf, despite any transaction that enters into.
1. Jurists' explanation on subject matter of waqf or waqf asset (mauquf bih). a. Waqf refers to the preservation of wealth that could be benefitted and/or invested without perishing its object, either via sale, gift (hibah), or inheritance, whereby the outcome or yield is channelled into something permissible for the beneficiaries.
b. The conditions of the waqf object according to the scholars, amongst others, are: 1) The wealth or asset should be valuable according to Shariah (mal mutaqawwamam); 2) The wealth or asset should be known and determined (ma'lum); and 3) The wealth or asset should be fully owned (milk tam) by the donor (waqif) upon executing waqf contract.
According to this outline, cash or money is allowed to be treated as waqf asset. It can be benefitted by the beneficiaries, and/or invested via Shariah compliant mode whereby the principal amount is preserved, and the investment yield is channelled to the beneficiaries. However, the fatwa have not detailed out the status of any tangible or physical asset traded under this investment portfolio using the cash waqf, nor the Cash Waqf is required to be converted into fixed, tangible or physical asset.

Resolution by Majma' al-Fiqh al-Islāmī al-Duwalī
Majma' al-Fiqh al-Islāmī al-Duwalī or International Islamic Fiqh Academy of Organisation of Islamic Cooperation ("IIFA") in its 15 th meeting held on 6 th to 11 th March in 2004 in Oman, had resolved the Shariah aspect of investment in waqf. The resolution includes the matter of cash waqf that is stated as follows (IIFA, 2004)  (1) Cash waqf is permissible from Shariah perspective, as the objective of Shariah for waqf is preservation of the origin and dedicating the benefit for charitable purposes. Furthermore, the cash is not determined based on any determination but rather the replacer will take its position.
(2) Cash waqf is allowable for the qardh hasan (benevolent loan) and investment; either in a form of direct investment, syndication with other donors in a single fund, or issuance of shares representing the cash waqf to encourage and achieve the collective participation in waqf.
(3) If the money is invested into tangible/physical asset, for example, the superintendent buys or constructs the building or real estate using that money, then the asset is not construed as waqf asset that takes the position of money (cash waqf). Therefore, such asset can be traded for investment purposes, and that the waqf is the original value of the money.  (3)(v) If the endowed money (waqf) is invested in buying the shares or sukuk etc., then those shares and sukuk are not construed as waqf that take the position of money (cash waqf), unless it is stipulated by the donor (waqif). Therefore, the shares and sukuk are allowed to be traded for investment in bringing benefit to the waqf. And that the preserved waqf is the original value of the money.
Both resolutions have not specifically defined the Cash Waqf (waqf al-nuqud). However, it could be understood from such resolution that the cash waqf means endowing cash or money for waqf or becomes waqf asset. The cash is not required to be converted into tangible or physical asset but could be utilized for investment or lending etc. in achieving the objective of waqf from Shariah perspective. Indeed, any physical or tangible asset that is purchased or sold for investment purposes using that cash is not construed as waqf asset.

Resolution and Standard by AAOIFI
Shariah standard on waqf was initially issued by AAOIFI in 2007 (standard no. 33) -this standard was later superseded by Standard No. 60. However, the Cash Waqf was only mentioned in brief, as follows (AAOIFI, 2015, p.817;AAOIFI, 2017, p.826):  2/4/13/1 Cash waqf is permissible even in a form of debt liability; for example: current account balances; and that the benefit could be obtained from it either in a form of Shariah permissible loan or investment, where the origin remains as waqf asset (mawquf) and the return goes to beneficiaries (mawquf 'alaihim). Therefore, the purpose of waqf fund, amongst others, is to gather the money for investment and loan. The Shariah basis that found this standard has stated: Table 9 AAOIFI Shariah basis for Cash Waqf

٢/٤/
[Translation] Resolution The basis on the permissibility of cash waqf: pursuant to the objective of Shariah for waqf itself. Furthermore, the cash is not determined based on any determination but rather the replacer will take its position. It is the allowed by a group of early scholars, namely Maliki school of law, later Hanafi and Hanbali scholars. This is also the basis of Shariah resolution by IIFA no. 140 (6/15 The outline for Cash Waqf under this standard and its Shariah basis aligns with the previously issued Shariah resolution by IIFA. Neither this standard nor its Shariah basis specifically defined the term cash waqf. In line with the aforesaid comment, it could be understood that the Cash Waqf means endowing cash or money for waqf or becomes waqf asset. In this sense, the cash as waqf asset could be benefitted by the beneficiaries via the mechanism of Shariah-compliant lending or investment. No conversion into tangible or physical asset is required, whereas any asset that is traded for cash waqf investment is not construed as waqf asset. However, these resolutions and standard (including two before) do not discuss the consequential impact of credit and investment risk that may attract Shariah concern.

Fatwa by Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia ("Jawatankuasa Fatwa MKI") -Fatwa Committee of Malaysian National Council for Islamic Matter
In Malaysia, the fatwa on cash waqf had been resolved at national level by Jawatankuasa Fatwa MKI in its 77 th meeting held on 10 th to 12 th April in 2007. The meeting had discussed about the matters related to the development of waqf land, which included the discussion on Cash Waqf. However, there is no detail explaination provided by the fatwa. The fatwa states that
Jawatankuasa Fatwa Negeri Selangor in its meeting resolved as follows: (i) It is permissible to use the money of waqf share to finance the needs in producing any asset; (ii) It is permissible to use the money of waqf benefit to finance the maintenance cost relating the building; (iii) MAIS is recommended to foster the effort to develop the waqf properties to gain the more profit or benefit; (iv) MAIS must ensure that the received property for the purpose of waqf is a perfect ownership without any liability. 1. Waqf in a form of cash money is allowed in Islam 2. The meeting had also resolved that in managing the cash waqf, the administration of Majlis Agama Islam Kelantan shall ensure that the endowed money is utilized for purchasing the permanent asset. It is due to the inability of the physical cash money to be maintained in its original form but this can still be carried out by converting it into another permanent asset. Therefore, it complies with the waqf concept, which is to preserve the wealth that could be utilized without depreciating it. i. Minimum requirement of RM10.00 contribution is not allowed. This means that anyone is able to donate any amount to Majlis for purchasing waqf asset. ii. Certificate is not required to be issued in this scheme for participation less than RM10.00 ii. The form of waqf is amended to: I appoint MAIDAM as the agent to endow any permanent asset via cheque/Bank Draft/Postal Order/Cash on the name of Skim Wakaf Tunai Terengganu with the amount of RM………. for myself/ Almarhum/ Almarhumah for the sake of the welfare and the importance of Islam as well as its ummah, endlessly for Allah SWT.  3) The conduct of boat waqf project shall adhere to the basic methods of waqf, as follows: a) It cannot be sold, given and inherited: "Indeed, it cannot be sold, given and inherited" (Narrated by al-Bukhari). b) The cooperative shall supervise the project according to the terms and conditions set by Majlis Agama Islam Dan Adat Melayu Perak (MAIPk). c) The boat should be leased out to the fishermen and cooperative members who are capable, skilful and trusted in ensuring the sustainability of waqf asset. "Verily, the best of men for you to hire is the strong, the trustworthy" (al-Qasas:26) The implementation of cash waqf in Kedah state is allowed via the concept of wakalah with the following form: "I give the money RM100.00 to you as wakeel to purchase the waqf asset on my behalf"

Perak
Those fatwas have not specifically defined the term Cash Waqf (or 'wakaf tunai' in the Malay language). However, it could be understood from some of them that cash waqf means endowing money or cash for waqf purposes. Not even that, different descriptions are also given to the subsequent mechanism of such financial transaction.
Except for Selangor and Kedah, all fatwas and public information that can be obtained from respective Islamic religious council have described that it is mandatory for cash waqf to be converted into permanent or unperishable asset. By substance, the mechanism is like a philanthropic crowdfunding or syndication by donors to acquire waqf asset where money is just a medium to achieve that purpose. In this scenario, two essential aspects should be observed: • Waqf sighah -it should be made clear that the cash is not the absolute subject matter of waqf even the term used is cash waqf. In some cases, the cash might be invested prior to such conversion. • The rule of conversion or istibdal (for those who use this as basis) -matching the asset valuation of the exchanged subject that is impacted due to financial factors. The nature of asset and its accounting treatment should be taken into consideration, especially from the perspective of financial management, such as depreciation etc.; as the money does not shrink its value except due to economic factors such as inflation. • Investment asset and transaction -the requirement restricts the ability for investment as any acquisition of asset will be regarded as waqf asset. Hence, it cannot be traded. Therefore, profit can only be generated via certain function e.g., rental etc. and not capital gain. In the case of Selangor, the latest fatwa describes that cash waqf should be expanded; portraying that cash could be regarded as the waqf asset and is not required to be converted. However, it does not prevent from any possible conversion. Should the istibdal come into picture, then it attracts the abovementioned concern. Meanwhile for Kedah, the mechanism used is wakalah. Therefore, cash is not a waqf asset but considered as a medium for the representative to acquire the permanent waqf asset. So, it is just like the third connotation that is mentioned earlier. And the third concern on investment also applies.

Summary of the academic literature
The literature review discussed in this paper demonstrates that most of the studies, either by themselves or quoting from others, have described the cash waqf as endowing cash or money for waqf purposes. Only few of them have discussed the subsequent mechanism of such cash waqf, in which it gives the full meaning of cash waqf and different impact for future development. However, the matter is either conceptually discussed or is not critically reviewed for regulatory or Shariah provision. Henceforth, this paper serves the purpose of complementing the existing literature.

Summary of the Shariah resolution
In one aspect, most Shariah resolutions have described the cash waqf as endowing the cash or money for waqf purposes. Following this focal point, there is a discrepancy on the subsequent mechanism which gives impact to the full meaning of Cash Waqf and its development structure as mentioned earlier.
One the one hand, some Shariah resolutions; mainly from non-Malaysian Shariah bodies, have described the cash or money as subject matter of waqf or waqf asset that can be benefitted from it via any possible way such as Shariah-compliant lending or investment. Thus, any trading that occurs to acquire asset using these funds is not construed as waqf asset but rather deemed as investment asset. However, neither one of these resolutions nor standards have deliberatied on the credit or investment risk that is essential and may attract Shariah concern.
On the other hand, most of the Malaysian authorities have described the mechanism as conversion into permanent or non-perishable asset as the money is perishable. Even if another contract is applied, such as wakalah; and no conversion or istibdal is applicable, the ultimate is to construct or acquire the permanent asset. Therefore, the use of cash waqf term does not reflect the cash or money as the subject matter of waqf or waqf asset by substance. And that requires several observations that may attract Shariah concern. Henceforth, should the money be utilized for investment purposes, there is a restriction on the investment activities where the profit of capital gain is not possible as the asset acquired or constructed is deemed as waqf asset and not investment asset. And that require forward-thinking from financial management and economic perspective towards sustainable development of cash waqf.

Identified gaps for future research
In a nutshell, the above gaps that have been commented and become apparent in the literature shall be disclosed in future research to further promote prudent Cash Waqf and its sustainability, taking into consideration the current financial and economic circumstances. Perhaps, this literature review might assist researchers in identifying interesting areas as well as the direction for future research related to Cash Waqf.