The Islamic Perspective on Using Non-Compliant Tools for Waqf Funding: Legitimacy and Ethical Considerations #
Original question:
What’s the Islamic perspective on using Shariah non-compliant tools to amass funds for wakaf, especially when considering conventional insurance plans that pay out upon passing and subsequently nominating those proceeds to wakaf?
First and foremost, in Islamic finance, “Shariah non-compliant tools” refers to financial mechanisms that do not abide by Islamic legal tenets. Such tools might involve interest-based transactions, speculative trading, investments in industries contrary to Islamic values (like alcohol or gambling), or any other transaction deemed impermissible in Islam. The returns from these tools result in what is known as “tainted income,” meaning earnings from sources not aligned with Shariah principles.
From an Islamic standpoint, such tainted income must be disposed of for charitable causes; it cannot be used for personal consumption, gains, or accolades.
Second, a fundamental component of endowing assets in Shariah is that the donor must legitimately own them. Illicitly gained assets, thus, have no validity in Shariah. Furthermore, the essence of Islamic endowments, or waqf, lies in the purity of the asset being endowed.
The revered companion Abu Hurairah (may Allah be pleased with him) narrated that Prophet Muhammad (ﷺ) declared: “Allah is Toyyib (good) and only accepts that which is good” (Sahih Muslim, hadith no. 1015). Another narration from Ibn Umar (may Allah be pleased with him) stresses the need for purity in earnings and deeds, stating that “neither is a prayer valid without purification nor is charity accepted from unfaithful gains” (Sahih Muslim, hadith no. 224).
This underscores the necessity for wealth to be derived from pure, lawful sources, emphasising the impermissibility of utilising illicitly acquired wealth for waqf.
As for the topic of inheritance, accepting or inheriting tainted income is unlawful in Islam. The onus is on the original owner to ensure the purification of tainted funds before their distribution to heirs. If heirs are uncertain about the source of the inherited wealth, they should prudently estimate and purify any suspicious portion. As Imam Nawawi articulated in his book:
“Anyone who inherits property and does not know the source of the property for the deceased, whether it is from a lawful or unlawful source, and there is no sign or indication regarding it, then the property is lawful to be inherited according to the consensus of the scholars. And if they (the heir) find out that there is an illegal part of the property and are suspicious of the amount, then it is necessary for the heir to remove the illegitimate portion based on their own ijtihad.” (Al-Majmu’ Syarh al-Muhazzab; 9/428).
In addition, Dar al-Ifta’ Jordan and Imam al-Ghazali, in his esteemed work, Ihya’ ‘Ulum al-Din, reiterate that Islam does not recognise or permit the inheritance of illicit assets.
In conclusion, using Shariah non-compliant tools to gather waqf funds compromises its legitimacy. In situations involving ambiguous or tainted income, it is essential to purify these funds by disposing of them for charitable endeavours (public goods expenses), ensuring adherence to the pristine teachings of Islam.
May Allah guide us to the righteous path.
References:
- https://muftiwp.gov.my/artikel/al-kafi-li-al-fatawi/5487-al-kafi-1910-hukum-memberi-harta-haram-kepada-ahli-keluarga
- https://www.muftiwp.gov.my/artikel/al-kafi-li-al-fatawi/4051-al-kafi-1558-hukum-mewarisi-harta-haram
- حكم وراثة المال الحرام
- حكم وقف األموال املكتسبة بالطرق غير مشروعة دراسة فقهية مقارنة
- Al-Majmu’ Syarh al-Muhazzab; 9/428
