Members of a waqf receiving payouts
Question
A waqf is created with the understanding that it collects monies from members of the waqf to pay out to members of that waqf should those members experience a loss.
Can the affected member/s receive more than what they themselves contributed? And then after receiving such, leave the membership of the waqf? Would the additional amount received be considered riba or gambling?
Answer
When money is made waqf, the capital needs to be invested and the recipients may only receive from the profits of the investment and not from the capital. Secondly, the nature of the loss needs to be determined, for there can be various types of losses. Another aspect is that receiving from the waqf cannot be subjected to monthly contributions.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
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