Allocation of Waqf Surplus Income to Welfare

This criterion assesses whether the organization directs surplus income from its waqf (endowment) assets to community welfare initiatives after covering necessary maintenance and operational costs. For this criterion, ‘waqf surplus’ means net distributable income from waqf assets for the reporting period after (i) direct property/asset running costs, (ii) planned maintenance provision, and (iii) any deed-required retentions/capital maintenance/inflation-proofing, while ring-fencing permanent endowment capital. Surplus is calculated fund-by-fund and may be ‘income yield’ or ‘total return’ only where the deed and trustee resolution permit a total-return approach under applicable law and SORP disclosures. This aligns with the principle of preserving waqf capital (ḥifẓ al-māl) while addressing essential welfare needs (ḥifẓ al-nafs), ensuring that the asset remains intact and its yield is spent on beneficiaries, as exemplified by Umar’s waqf of Khaybar. It also embodies *Birr* (righteousness, Q2:177) and prevents wealth concentration (Q59:7).