Funding higher education throughwaqf: a lesson from Malaysia

Purpose - This paper aims to highlight the importance ofwaqfin financing higher educational institutions (HEIs) and its potential as an alternative source of generating additional funds for the HEIs, and discourses onwaqfpractice, fundraising,waqfmanagement and utilisation ofwaqfincome for the development of higher education in Malaysia. Design/methodology/approach - This paper is based on the information gathered through interviews with 12 participants who are actively engaged inwaqfin different capacities. The participants can easily be classified into three expert groups; personnel ofwaqf-based universities, personnel of the respective State Islamic Religious Councils (SIRCs) andwaqfpractitioners. In addition, archival records, relevant documents and library sources have been used in the research. Findings - The study learnt thatwaqfin Malaysia is centralised and exclusively controlled by the SIRCs, which are, as a rule, sole trustees of all categories of awqaf in the respective states; hence, any form of private trusteeship is considered illegal. It is a prerequisite for the establishment of awaqffund to obtain permission from the respective SIRCs, and bring it under the purview of the council prior to setting up awaqf. The ministry of higher education has taken some initiatives to encourage HEIs to usewaqfas an alternative source of generating funds. Subsequently, numerous public universities have set upwaqffunds and developed a comprehensive mechanism for raising the fund through traditional and modern methods and technologies. A major chunk of thewaqffunds is collected in the form of cash, but the amount falls short of reaching critical mass to enable thewaqfto become self-sustaining. The study found that the universities also involved themselves in various social welfare programmes, especially in health care, and some income-generating projects besides seeking support from thewaqffund for their academic and educational activities. Practical implications - The paper brings out the fact thatwaqfoffers the best features as an alternative fiscal instrument to finance projects of public good, including higher education at three selectedwaqf-based universities in Malaysia. Social implications - The study’s findings will be helpful to the ummah in general and Malaysia in particular. It can help policymakers, legislators and academicians in formulating new strategies for the common good and sensitize the countries facing a huge fiscal deficit and lack of development to the viability and potential ofwaqfas a catalyst for progress and economic activity. Originality/value - The paper shares the experience of Malaysia’swaqf-based universities,waqffundraising, management and income utilisation. It accentuates the fact thatwaqfcan help finance academic activities at universities and sheds light on some useful examples ofwaqf-based universities founded in earlier periods of Islamic civilisation.