Endowment terminology

The terms set by the endower regarding the waqf, its returns, its disbursement channels, its trustee (nazir), or its beneficiaries.

The entity or entities that benefit from the waqf.

The expressions and wording used to outline and define the endower’s conditions.

Endowment (Endower/Act of Endowment): Refers to the party who withholds the asset (the endower), or the act of dedicating the asset itself.
Formulation: The wording used to express the intention to establish the waqf.
Endowed Asset: The specific asset being held and dedicated as a waqf.
Beneficiary: The party or entity entitled to benefit from the returns of the endowed asset.
 

The legal document in which the endower records the waqf, its terms and conditions, and specifies the endowed asset, the beneficiaries, and the appointed trustee (nazir).

The income generated from the endowed asset, such as rental income from real estate. It may also be referred to as returns, proceeds, or revenue.

An endowment designated for specific individuals from the endower’s descendants, either explicitly named or described by category.
Example: “I dedicate this building as a waqf for the sake of Allah, and its returns shall go to my descendants.”
 

An endowment designated for specific or general charitable purposes, either explicitly defined or broadly described.
Example: “I dedicate this farm as an Endowment for the sake of Allah, and its returns shall go to orphans.”
 

An endowment that combines both public (charitable) and private (family) beneficiaries as stipulated by the endower.
Example: “I dedicate this institution as an Endowment for the sake of Allah, and its returns shall be divided into two parts: one for my descendants and the other for charitable purposes.”
 

The entity designated to receive the proceeds of the waqf, in accordance with the conditions set by the endower (waqif).

The management and execution of actions that serve the best interest and benefit of the waqf asset and its returns, including its preservation, leasing, development, maintenance, legal representation, and distribution of its proceeds, in accordance with the endower’s conditions.

A collective investment vehicle that enables investors to participate jointly in the profits of an investment activity, managed for a specified fee or a share of the profits.

A sum of money provided by a person (the settlor/creator of the trust) to another party (the trustee/custodian) to hold and invest on behalf of a third-party beneficiary. This arrangement may be either temporary or perpetual.

Perpetual (open-ended) funds whose units are fully endowed (waqf), non-tradable, and accessible to the public. Their returns are distributed to designated beneficiaries, with eligible non-profit entities benefiting in accordance with the conditions set by the General Authority for Awqaf.

These are typically older documents, often bearing witness signatures and sometimes authenticated by a local judge. Such documents must be formally updated through current legal procedures. Once completed, a new, independent title deed is issued, and nothing is added to the original documents as they are no longer considered legally valid.

Developmental Endowment Funds
Endowment Investment Funds
Endowment Sukuk
Endowment Investment Portfolios
 

The substitution must serve the best interest of the waqf.
It must be free from suspicion, favoritism, or conflict of interest.
The replacement asset must not be of lesser value or generate lower returns.
The substitute asset should be acquired promptly.
The substitution must be approved by the competent authority or supported by a recognized Shariah ruling (fatwa).
 

Waqf (Endowment):
The transfer of ownership of an asset from the endower to Allah (i.e., it becomes inalienable), while dedicating its benefits to charitable purposes, seeking reward from God.

Wasiyyah (Bequest):
A voluntary donation of wealth by a person that only comes into effect after their death.
 

Endowment Maintenance:
The allocation designated by the endower in the waqf deed, prioritized over any other disbursement channels, as maintenance is essential for the sustainability of the endowment.
 

Endowments consisting of specific, tangible assets that the endower intends to preserve in their original form—such as real estate. This also includes the endowment of usufructs (benefits) and intangible rights.

Endowments in which the endower intends the asset to be invested and developed through active management and commercial utilization, rather than preserving it in its original physical form. The aim is to sustain the waqf through these assets or their substitutes—such as cash endowments and waqf-based companies.

Endowments whose total value of endowed assets is SAR 200 million or more.

Endowments whose total value of endowed assets ranges from SAR 50 million up to less than SAR 200 million.

Endowments whose total value of endowed assets is less than SAR 50 million.

The entity to which the proceeds (returns) of the waqf are disbursed, in accordance with the conditions set by the endower (waqif).

The legal document or deed through which the endower (waqif) records the establishment of the waqf, its conditions, the beneficiaries, and the designated supervisor. 

The revenues generated from the operation, investment, and development of the endowed asset.

The Turstee : is the one who oversees all matters of the endowment, whether it is a natural or legal person, including management, preservation, development, and implementation of the endowers conditions.

The preservation of an asset while dedicating its benefits for charitable purposes.

The individual who establishes the waqf.