Waqf (plural: awqaf) is a voluntary donation of property in the form of land, buildings, or other assets, directed towards the betterment of society. Waqf property is inalienable and cannot be sold, and the income it generates is used for the purposes for which it was created.

Types of Waqf:

• Waqf established for religious purposes: the construction and maintenance of mosques, madrasas (religious schools), religious education.
• Waqf established for charitable and public welfare purposes. The funds generated from such Waqf are used for the maintenance of libraries, schools, educational and medical institutions, as well as the construction and maintenance of socially significant infrastructure such as roads, bridges, and parks.
• Family Waqf: The funds generated from such Waqf are directed towards supporting descendants.

For example, the role of Waqf in the Ottoman Caliphate was so significant that during the heyday of Waqf in the country, around 60% of public services such as schools, mosques, hospitals, as well as infrastructure projects like bridges and public fountains, were funded solely through the resources of various Waqfs. This serves as an example of how Waqf can be institutionalized to serve the public good on a large scale. Waqf assets were well-regulated and managed by dedicated officials, ensuring their stability and effectiveness in financing various social and public services. This system had such a profound impact that it left a lasting legacy and served as an inspiration for similar practices in other Muslim and non-Muslim societies.

Key Principles of Waqf:

• Perpetuity: A distinctive feature of Waqf is its perpetual nature. Once an asset is designated as Waqf, it cannot be alienated and is intended to generate benefits on an ongoing basis. Only the Maliki school of thought allows for temporary Waqfs.
• Irrevocability: Once an asset is designated as Waqf, the decision is irrevocable. The asset cannot be sold, gifted, or inherited.
• Inalienability: Waqf assets cannot be confiscated and are not subject to alienation for personal purposes.
• Specific Beneficiaries: When creating a Waqf, the donor specifies who the beneficiaries will be, whether a group of people or specific objectives.
• Management: Waqf is managed by trustees or a board of trustees responsible for ensuring that the intended charitable purpose is fulfilled.

Contemporary Application: The Islamic Development Bank, an international financial institution dedicated to financing social and economic development projects in member countries, has an Investment Property Waqf Fund (APIF) in its structure. This fund finances various commercial and residential real estate properties in developing countries for Waqf purposes. Donors to the fund include Islamic banks and financial institutions, philanthropic organizations, and private investors. A similar fund exists within the international Islamic humanitarian organization "Islamic Relief Worldwide." This is an example of how traditional institutions can be modernized and integrated into the financial and social support system to finance schools, hospitals, and sustainable development projects, which can serve not only as a philanthropic instrument but also as a long-term investment in the improvement and maintenance of societal well-being.