Examining the Relationship between Level of Income and Appointment of Agent in Collecting Waqf Fund

Abstract

The institution of waqf has played its role in poverty alleviation and socioeconomic development through history, especially in the Islamic history. Until today, this institution still plays an important role especially in Muslim countries. Still, there are many potential mechanisms in order to make it more effective to alleviate poverty. Cash waqf is a trust fund established with money to support services for mankind’s benefits in the name of Allah. The gifted capital was “transferred” to borrowers for certain period, which was then spent for all sorts of pious and social purposes inclusive for the investment objectives. It is recognized that there is no ample study in the area of cash waqf especially for managing the waqf fund. Therefore, the study for the management of cash waqf fund is essential in order for the fund to be use efficiently. The objective of this article is to examine relationship between level of income and appointment of agent in collecting waqf fund. The methodology of this research is a quantitative research towards 231 respondents among Muslim public in Malaysia. The general finding of this article shows that, with proper contribution method and the appointment of Islamic waqf bank an agent in collecting the cash waqf fund, there is a strong tendency that the Islamic waqf bank’s operation will be run effectively.