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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).

Compliance 5
  • Endowment/Waqf Register reconciled quarterly to finance system and SORP fund note disclosures; each line includes legal status (permanent/expendable), Shariah status, restriction text, and valuation basis.
    Financial Controls Essential
  • Clear classification of endowment types; where Total Return is used, trustees must evidence: (1) power in governing document or Charities Act 2022 reliance, (2) minuted resolution adopting total return, and (3) SORP accounting policy note.
    Donor Management Essential
  • Gift Acceptance Policy including due diligence for non-cash gifts (property title, environmental liability, valuation, AML checks) and refusal criteria for high-risk assets.
    Fundraising Compliance Essential
  • Endowment Appeals Protocol compliant with Fundraising Regulator Code (including restricted fund statements and professional fundraiser agreements); policy prohibiting using zakat to build endowment unless specifically permitted by Shariah governance with donor consent.
    Fundraising Compliance Essential
  • For waqf property transactions involving connected persons, compliance with Charities Act connected person rules with documented assessment and approvals.
    Governance Essential
Basic 1
  • Ethical and Shariah-compliant fundraising and investment methods for the endowment.
    Compliance Essential
Good 7
  • A documented strategy for growing the endowment
    Documentation Essential
  • Clear targets for asset growth and diversification
    Performance Essential
  • Regular board-level review of the endowment strategy
    Governance Essential
  • A documented spending policy aiming for intergenerational equity (preserving real value); includes payout smoothing (e.g., 3–4% of 12-quarter average) and specific triggers for suspension (e.g., liquidity <12 months, drawdown >15%).
    Financial Stability Essential
  • A diverse portfolio of endowment assets (e.g., property, ethical investments)
    Sustainability High
  • Public campaigns to encourage waqf contributions
    Stakeholder Engagement High
  • Transparent reporting on the growth and use of the endowment.
    Transparency High
Better 2
  • Independent Shariah adviser/committee with documented Terms of Reference, independence statement, and conflict register; annual review scope covers investment screening, purification, fundraising appeals, and donor restrictions; annual written Shariah Assurance Report.
    Shariah Governance Essential
  • A dedicated endowment development committee or officer
    Leadership High
Best 2
  • Unitised endowment pool for fair allocation; quarterly rebalancing policy; adoption of total return accounting (where lawful and appropriate); manager due diligence and performance scorecards.
    Investment Management High
  • Innovative waqf instruments (e.g., cash waqf certificates, waqf-linked sukuk, ethical property funds). Caution: Where offering certificates resembling investments, obtain legal advice on FCA financial promotions/perimeter.
    Innovation Medium

Related Criteria

TS-AWM-01 Waqf deeds registered & compliant TS-AWM-02 Annual waqf ROI & impact report TS-AWM-03 Ethical investment policy TS-AWM-04 Asset maintenance & insurance TS-AWM-05 Allocation of Waqf Surplus Income to Welfare
Version
2.9.7 2025-11-05

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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