TS-AWM-16
Trust & Stewardship
Asset & Waqf Management
CORE
Excellence
v2.9.7
Strategy for Growing Waqf/Endowment Assets
Assesses whether the organization has a proactive and documented strategy for developing and growing its endowment (waqf) assets to ensure long-term financial sustainability and increase its capacity for charitable work. Note: This criterion covers both the religious designation of 'Waqf' and UK legal classifications. Organizations must clearly distinguish between: (a) Permanent Endowment (capital cannot be spent), (b) Expendable Endowment (capital can be spent under specific conditions), and (c) Designated Funds (unrestricted funds set aside by trustees).
Assessment Questions
- Does the organization have a documented, board-approved strategy for the growth and development of its waqf/endowment assets?
- Can the charity evidence, for each waqf, whether it is permanent endowment, expendable endowment, or restricted income fund under UK law—and how this is disclosed in the SORP fund notes?
- Is there a documented reconciliation between donor restrictions/waqf deeds and finance ledger codes used in reporting?
- How does the strategy define clear financial objectives, risk appetite, and performance metrics for the endowment?
- What processes are in place to ensure all investment and growth activities strictly adhere to Shariah principles (e.g., screening, purification)?
- How are the roles and responsibilities for implementing and overseeing the waqf growth strategy defined (e.g., investment committee, asset manager)?
- How frequently is the strategy's performance reviewed against its objectives and market benchmarks, and how are these findings used to make improvements?
- In what ways does the organization explore innovative and diverse Shariah-compliant investment opportunities to enhance long-term growth?
- What is the endowment’s spending rate and mechanism for inflation-proofing the corpus?
- How are donor restrictions recorded, monitored, and reported (including total return adoption)?
- What is the rebalancing cadence and liquidity ladder to meet payout and contingencies?
- How are property waqf assets valued, managed, and disposed of in line with CC28/Charities Act rules?
- Has the organization obtained and minuted Shariah rulings on any innovative waqf structures (e.g., cash waqf, sukuk)?
Evidence Requirements
- Waqf/Endowment Growth Strategy Document.
- Investment Policy Statement (IPS) detailing Shariah-compliance criteria, asset allocation, and risk management.
- Minutes from board or investment committee meetings where waqf performance and strategy are discussed.
- Annual or quarterly waqf performance reports, including returns against benchmarks.
- Portfolio statements from financial institutions or asset managers.
- Due diligence reports or analysis of new investment opportunities.
- Waqf deeds and donor agreements.
- Donor restriction register and reconciliation to finance ledger.
- Board resolution/Order for total return (if applicable).
- Spending policy with smoothing and suspension triggers.
- Rebalancing and liquidity policy.
- Shariah screening methodology, ToR, and annual Shariah assurance report.
- Gift Acceptance Policy and due diligence records.
- Property valuations, tenancy schedules, and connected person assessments.
- Manager due diligence packs and professional fundraiser agreements.
- Annual Charity SORP-compliant accounts showing endowment movement notes.
- HMRC Gift Aid/Tax documentation for asset gifts.
Scoring Guidelines
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | A sophisticated and successful strategy with demonstrable growth in the endowment and a clear plan for future development |
| 4 | 4/5 | A documented strategy with clear targets and regular board review, showing some progress |
| 3 | 3/5 | A basic strategy or idea for endowment growth, but with limited action or results |
| 2 | 2/5 | An informal desire to grow the endowment but no documented plan or strategy |
| 1 | 1/5 | No strategy or effort to grow endowment assets. |
Discussion (1)
Administrator
2026-03-07 11:07:38.935756
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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