About IEF

The Islamic Economics and Finance Advisory committee is tasked with handling the financial & economical aspects of the Muslim community, as well as to streamline the processes of handling matters related to Zakath (Wealth Tax), Sadaqa (Charity), Warasath (inheritance) and others.

The committee collects information at Masjid level on the economic needs of the people, in order to provide assistance and guidance to those in need. Further, steps are taken to provide vocational training to Muslims in order to improve their livelihoods and to provide assistance for technical studies for those who discontinued school education due to financial inabilities and other reasons. The committee also will be providing guidance to people in securing job opportunities and starting small industries.

The streamlining of the Zakath collection process is another major task of the committee, with Zakath collection and disbursement of Zakath done at Masjid and/or Federations of Masjid levels. Educating people on the calculation and payment of Zakath, by way of organizing seminars is also undertaken.

The committee also is working on establishing Baithul-Maal funds in Masjid or/and federation levels in order to help Muslims with interest free loans to take care of their needs. It also encourages giving out money in the forms of Sadaqa, Wasiyyath, wows, and Waqf (endowments) etc, and redirects these funds for economic activities for eligible, skilled and motivated persons in the community.

Legal guidance to solve issues of Wasiyyath (last will) and Wirasath (inheritance) with the assistance of lawyers is also provided by the ACJU.

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Baithuz Zakath

What is Zakath?

Zakath is the third pillar of Islam. There are different opinion in it being a mere Worship as it does not require puberty of the performer. Zakath is a compulsory payment on Muslims who possess the Nisab the Zakathable amount of wealth, on a regular basis performed once in a year. It is a practice of charitable giving from his wealth for eight categories who are in need of financial assistance and finding difficult to make an earning.

The Allah the Almighty has made this material obligation to bring about the economic justice by preserving socio-economic balances, achieving adequate employment for all members of the society, while preserving the wealth and income of the people, securing economic satisfaction of the society in general and promoting general welfare while guaranteeing the basic needs of its individuals.

Paying Zakath Collectively or Individualy?

The purpose of the Baithuz Zakath system is not accomplished by merely paying it to a receiver which could result to concentrate the zakath in few hands. Rather there it is primly important that benefit shall reach those who need to achieve justice, equality and welfare of the society and circulate in the society as widely as possible.

The lack of focus on the Baithuz Zakath as a strategic tool and resource has greatly caused to undermine the efficiency of the Society. The main focus of this Baithuz Zakth system is to ensure the minimization of inequality,   Formalizing and increasing the efficiency of the zakath distributed, enabling everyone to get what is rightfully his.

The well-organized Collective Baithuz Zakath system is a major solution to achieve all these objectives. But as the Zakath is considered is a worship and all its norms specified by the Sunnah. Hence it is not lawful to make major changes contradict the major rules of Islamic Jurisprudence law.

Even though Zakath can be successfully used to fill the needs as it is happened symbolically or actually at the time of Umar rali’s Khilafath by Muaz ibnu Jabal and Umar Ibnu Abdul Aziz and his subordinate Saeed Ibnu Muad who sent to govern Africa then finally no eligible receiver came forward to accept being distributed it among eligible in the right manner and they were well acquainted to the field. Also it is said that reason for non-acceptance of Zakath by people of Umar Ibnu Abdul Azeez is his tharbiya.

The benefits of Collective Zakath Distribution system never can be compared with the individual Zakath Distribution. Zakath is the only worship that a third person appointed to asses and accept for the final execution. In jurisprudence view only exterior wealth is subject to compulsory collective Zakath. Even the exterior Zakath is not subject to collective Zakath in the absence of the Khilafath mandate.[/vc_fl_icon_box][vc_fl_icon_box icon_box_style=”fl-icon-box-style–4″ fl_preview_image=”fl-icon-box-style–4″ title=”Wasiyyath” icon_img=”704″ icon_type=”ihsan” animation=”none” class=”mosque-development” link=”url:https%3A%2F%2Fandigitalads.com%2Fwasiyyath%2F|title:Baithuz%20Zakath” icon_ihsan=”icon-icon7″]

Wasiyyath

What is Wasiyyath?

Wasiyyath is an important agreement termed by the sharia to use the final will of a person to make a provision for his eternal life by convert his last charity into an eternal rewarding source benefits continue to reach to his account even after his demise. The Wasiyyath is distorted by those who are practicing as some bequest their total wealth as Sadaqa and leave inheritors bare handed and some bequest the total wealth or part of it to an inherited. These both acts are malpractices forbidden by Islam. Those who do not practice wasiyyath (Bequest) also hold misconception that it should not be done and the inheritance shall not be regulated by Wasiyyath the bequest rather ignored to be fully dispensed by inheritance laws. As wasiyyath is a financial tool which a management system is necessary to execute the order of the testatrix.

Importance of Wasiyyath for a Muslim.

Wasiyyah is a service is dedicated to helping Muslims to prepare for their death by leaving a Will that is most pleasing to the All Mighty. Death is something Muslims should think about often and prepare for. One of the ways of preparing is to write a Will that is in accordance with Islamic principles. The Prophet Salalhualaihi Wasalam said it is a duty of the Muslim who has anything to bequeath not to let two nights pass without including it in his Will  (Bukhary). However, the reality is that most Muslims are ignorant about the importance of writing an Islamic Will and for those people who do recognize its importance the process of Islamic Will writing can be daunting and challenging.

How to perform a Wasiyyath?

The localities where Baithul Maal is established in their Masjids shall submit their Wasiyyath form filled to the society. Society shall legalize it through a legal assistant. After the demise of the Legatee the society shall execute the Bequest.

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Baithul Maal

What is Baithul Maal?

Baithul Maal can be defined as a treasury and, financial system or institution which provide various financial projects under which various charities and financial aids to any person or set of people broadly or limitedly repayable or non-repayable, while preserving the capital and investments and generating profits out of them.

Importance of Baithul Maal and History

Briefly history of Baithul Maal goes back to the time of prophet Sallallahu Alaihi Wasallam. Prophet Sallallahu Alaihi Wasallam carried out relief and aid projects as when people put forward their necessities He Sallallahu Alaihi Wasallam provided them by his own wealth if available. As and when prophet Sallallahu Alaihi Wasallam himself unable to provide from his own he directed his companions to accommodate the requestor. The process continued at the Khilafath of Abu Bakr Radhi and Umar Radhi. Umar Radhi expanded the project to the extreme lengthened as finally the animals welfare too began to be cared by the Baithul Maal system.

If we research the Baithul Maal in detail we find that it is an authentic establishment in Islam. At the times of previous prophets Hazarath Yoosuf Alaihis Salam when found high ranked and became trustworthy in the sight of the King requested to appoint him the custodian of the treasury. (Quran Chapter Yoosuf verse number 54,55) A prophet requesting the appointment and its note being mentioned in the Quran it gives a strong authenticity for this as a sacred responsibility over Islamic heads.

At the time of prophet sal the needy like the who had no food, had nothing to conduct his marriage, fallen into consume illegal date from his neigbhours tree or nonemployee used to come to prophet Sallallahu Alaihi Wasallam and the prophet Sallallahu Alaihi Wasallam used to give with what was in his possession or took him to his wives houses to find what they had or directed to any of his companions to take up the matter and fulfill the need.

Also he used to distribute the Zakath instantly brought to him as he is not allowed to consume nor allowed to hold. Also he used to give from the Sadaqa came to him without holding it and He did not returned home until the sadaqa is ended. Later Prophet Sallallahu Alaihi Wasallam used to store properties at the companions houses.It is mentioned that Abu Huraira requested to appoint him as the custodian for Zakath ul Fitr and the incident continues as the shaithan came in the night and he caught red handed. In the third day Shaitan taught the Ayathul Kursi.

Also when Zakath goats are gathered at Prophet Sallallahu Alaihi Wasallam ordered Abu Zar Radhi to take them to the place called Rabdha. Abu Bakr Radhi assigned a house for Baithul Maal at sunh and he himself resided there which located at a kilometer distance from the house of prophet Sallallahu Alaihi Wasallam. He himself used to distribute. When companions suggested to appoint a security Umar Radhi ordered to place a lock.

Propher Sallallahu Alaihi Wasallam and Abu Bakr Radhi did not preserved the fund but Umar Radh as the workers increased and needs increased he used to preserve the Baithul Maal fund. At the end of the year he used to estimate the works and paid accordingly as to avoid duplicates and avoid miss outs. It is mentioned that Umar Radhi used to preserved amount of wealth which the government needed for a period of one year time. Then spend from it as per the requirement. Umar Radhi assigned a register for Baithul Maal. Baithul Maal treasuries established in big masjids. The Baithul Maal storage in Masjid Banee Umaiya in Dimishk still can be seen.

Umar Radhi requested Abu Huraira to accept the appointment to the designation of Baithul Maal custodian. He rejected. The Umar Radhi asked why do you refuse while the one who is the best than you the propher Yoosuf requested the designation?. He said Yoosuf Alai is son of four prophet from his father. I am ibnu Umaima and I fear three and two things. Umar Radhi said why not you say Five. He said no. What are they? He replied I fear if I say with no knowledge and judge with no knowledge and my back be beaten and my integrity accused and my wealth be charged. (Hadees in Hakim, Section Thafseer Soorathu Yoosuf)

ACJU Baithul Maal System

Baithuz Maal System offers its assistance in the form of Guidance and surveillance of Executing Baithul Maal fund Collection, finding and dispensing it to the rightful in order to derive the maximum strategic prosperities through this financial instrument. All the financial activities can be laid under Baithul Maal.

Baithul Maal projects are developed with the ideologies of Muslim theologians and field experts which offers its assistance in the form of Guidance and surveillance of Executing Fund raising, finding and dispensing it to any needy as refundable or non-refundable grant in order to derive the maximum strategic prosperities through this financial instrument.

Since the Baithuz Zakath fund has it’s restrictions as Quran and Hadees defined its inward and outward routes system had to comprise of sets of rules to preserve those sharia guidelines. When a situation requires any aid to a particular dire need and Baithuz Zakath system restrict the provision Baithul Maal has more liberty in the aspects of Sharia outlines and will provide a provision.

Baithul Maal Fund Management

Baithul Maal Basically shall have two sections of funds. Utilization fund and Investment fund. Baithul Maal may consist of self-income generating systems and sources like investment for profit generating and likewise.Interest free credit facility Brief system.

Baithul Maal as a treasury introduced and developed by Islam for the benefit of its community. Comprehensive life guidance of Islam has forbidden the interest which is unquestionable divine order which has proved that Islam has wisdom behind all its perceptions that a person who lends money for his inevitable need should not be trampled to be robbed his wealth for such innocent reasons.

The incumbent needs of man forces himself to obtain financial mean and when for the divine verdict he deprived of any necessity as a trial he and the community is tested whether they go only for permitted income means. The prevailing deep rooted and wide spread interest based credit and other financial aids grab the opportunity to be benefitted out of this man’s hard needy times and sometimes rob his possessions.

In order to safe guard the community in its individuals from this destructive trap the interest, the interest free credit service has been introduced. This project also a non-chargeable contract according to Islamic jurisprudence perspectives. Expenses incurred during the providence of the service shall be borne by the society or any other sources of Baithul Maal. Hence the project shall be operated by Baithul Maal system following guidelines detailed in Interest free credit facility project manual.

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Waqf

What is Waqf?

Waqf, in Arabic language, means hold, confinement or prohibition. The word waqf is used in Islam in the meaning of holding certain property and preserving it for the confined benefit of certain philanthropists and prohibiting any use or disposition of it outside that specific objectives. Therefore waqf widely relates to land and buildings. Moreover, there are waqf of books, agricultu­ral machinery, cattle, shares and stocks and cash money. Simply Waqf means a permanent dedication by a person professing Islam of any movable or immovable property. Waqf is one of the sources of Islamic Economic system. It refers to the voluntary charity which has unique presence in Islam. Islamic law is the first law ever that defines and regulates Waqf as a civil societal institution. It started since the time of the Prophet Muhammad (PBUH) himself.

About Waqf

In Islamic tradition, titles to religious properties, including masjids, Islamic cultural sites, Educational centers are held by Waqf which is an Islamic Trust. Waqf properties in Muslim countries governments establish a separate ministry called Ministry of Awqaf to protect and perpetuate the Waqf properties. In other faith countries Muslims cultural Affairs Ministries maintain a Board to handle and maintain the Waqf properties. Also Public and specific Waqf properties held and maintained by various institutions which are organized or registered by religious authorities which probably registered as institutions in other faith governments.

Waqf properties or the value of these properties become restricted on a perpetual basis to serve the Islamic objectives prescribed at inception. According to the need of the community these institutions accept donations to perform this vital function, so theat the service is provided at no cost to the waqf property itself. It is vital to formalize and maintain the records of the Waqf properties so that the the committed successors who perpetuate them can keep these properties true to the Islamic purpose which they were established. In the early centuries of Islamic history, during times of territorial advances, waqfs were vital to the establishment of social structures in lands with weak state structures. In modern times, waqfs are merely financing structures, but can in many cases be of great importance.

Many Islamic Waqf properties established all over the world even in Muslim countries due to the lack of focus many of them have been lost through demographic changes, disrepair and property tax and by assigning them to different individuals. These agreements purposefully drawn to benefit the lessee and drastically collapse the value and benefit from reaching the rightful purpose and party from being benefitted. These cases have lots of examples all over the world. Both trustee and the lessee will be responsible for robbing and permitting to be misappropriation of public waqf property. Many of these kind properties have been recovered with high costs and many are still not brought to attention. Some are in state of recoverable by spending a fraction of the value which if left behind may totally go lost.

Importance of Waqf

In order a community to be served well with all the services sufficient resources shall be held as Waqf properties. In addition to Masjid, Educational Centers, Hospitals, Social Service sites are needed. In present, it has proved around the globe that Micro Credit are not successful in reducing poverty and income inequality. In this context, Waqf can be one of the vital alternatives alongside Zakah because early history indicates free education, scholarship, orphanage, free treatment etc as provided by Waqf based institutions. But current scenario shows that, Waqf based institutions are not growing at a considerable level. If we really want to do something for the needy and the poor, we have to revive this much needed institution. Also Waqf is the most durable rewarding worship. Even the prominent people of Islam has engaged their properties in this enormous worship. The inauguration of this worship is narrated in the Hadees when Umar Radhi

Management of Waqf properties.

To the waqf there are managers in charge of securing that all maintenance and profits are well taken care of. ACJU Waqf unit advises Baithul Maal Societies in regard the Management of Waqf properties. ACJU does not administer these institutions nor interferes with their activities. ans instead provide them with the necessary advises on request. The Baithul Maal shall have agreements with the Waqif.  In this arrangement the local community conveys the title of the Waqf property to Waqf property administration, supervision and Monitory board which established under Baithul Maal Society. The society will be the trustee of the property. Waqf maintenance unit of the Baithul Maal will do the day to day utilization of the property and will direct the benefit to the beneficiary the successor with the approval of the approval committee. Approval committee shall need to approve only the unspecified beneficiary or the cases where the named beneficiary is absent temporarily or permanently.

 The properties which are administrative rights are left for the Baithul Maal Society to discrete the beneficiary. Further the benefit of Baithul Maal Waqf Unit include that it will ensure that assets of Waqf and Baithul Maal are protected from liabilities arising from its service activities. Baithul Maal Waqf will also list out the Waqf and Public properties left for Muslim community and will leash recovery tracks.

Functions of the Waqf Administration.

  1. Investigating and determining the nature and extent of Waqfs properties, and calling from time to time for accounts, returns and information from Mutawallis.
  2. Ensuring Waqf properties and income arising there from, to be applied as per objectives and purpose for the benifit of any class or persons for such waqfs were created or intended;
  3. Giving directions for the proper administration of Waqfs.
  4. Managing himself, (Administrator) or through the employs employed under this ordinance or persons authorized by him, any waqf of which he may take or retain charge under this Ordinance and doing all such acts as may be necessary for the proper control, administration and management of any such property.
  5. Fixing the remuneration of a mutawally, where there is no provision for such remuneration in the Waqf deed.
  6. Investing of any money received as compensation for the acquision of Waqf properties under any law for the time being in force, by himself (Administrative) or by issuing directions for proper investment by the Mutawalli.
  7. Generally doing all such acts as may be necessary for the due control, maintenance and administration of Waqfs.

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Warasath

What is Warasath?

Warasath can be called as Faraid in Arabic and Inheritance in English. The word Fara’id is a plural form of Faridah meaning mafrudah that is the share that has been predetermined. Faraid is one of the tools in estate distribution for Muslims. This is a set of laws pertaining to estate distribution among the heirs on how distribution is to be made on the deceased estate. The law of inheritance is derived from the Quran and Al-Hadiths. For men is a share of what the parents and close relatives leave, and for women is a share of what the parents and close relatives leave, be it little or much a share ordained. Al Quran 4:7.

Islamic Inheritance law the Warasath or Miras is comprehensive system which provide total solution for the project. So Islam the religion of the creator of this world has clearly listed out the proportion of each individual.

Importance of Warasath

Since Islam acknowledges the right of individuals to own wealth and rights of community members and family to get a portion of the wealth. As and when a person end his life he leave whatever earned by him to let his kin and kith be in the prosperity. Since human incapable to decide and distinguish the portion of the relatives and always fall in confuse to evaluate the most closet with the right relation and portion.

As large numbers of Muslims reside in non-Muslim countries and not much aware of Islamic Inheritance law.  As such, the distribution of inheritance has caused controversies and fervent debates over the years. When there is no provision and/or there is no consensus, agreeable conclusion over the proportion of each and every are not clearly mentioned, the difference in opinion lead to quarrels and disunity.

Further the inheritance is a position where injustice take place when a person bequeath all his legacy to a particular non relative or group and leave inheritors bare handed and some bequest the total wealth or part of it to an inherited. All these acts are malpractices forbidden by Islam. The laws of Inheritance in Islam help in spreading wealth so that it cannot remain concentrated among a few individuals. On person’s death all his wealth is calculated and distributed among his heirs male and female in prescribed proportions.

As Islam has provided total life solutions. Also it is most obliged matter that a Muslim should have the family tie unbroken. The inheritance is a major cause for the breaking apart and disharmony of families. It is obligatory on Muslim theologians and heads to identify different issues and restrictions in wealth distribution faced by Muslims in upholding Islamic Inheritance law and acknowledge Muslims how these issues are resolved.

If a Muslim due to non-accordance to apply Islamic law if any unjust took place in wealth distribution the portion he gets or give or assist to be transferred will not going to be Halal legal for him and He is obliged to return what is not his or his right as civil law or common law is not acceptable in this regard in the sight of Islam since divine law is contradicting it.

There should be legal provisions to challenge a predicted Warasath on the circumstances such as one or more of the beneficiaries were left out or allocated more or the less than the right of him. And Wasiyyath should be subject to be challenged if it exceeds the one third or bequeathed to an inheritor.

Common or Civil Law in Inheritance

In inheritance, the civil common rules permits us to give the inheritance to anyone that the testatrix wish, be it a family member, outsiders or even pets. The civil law recognizes such desires and upholds these wishes even though we deprive our heirs from receiving it, especially so where estates worth millions are left to pets. It can be considered as an injustice to the heirs but they are helpless even when challenging the legitimacy of such wills.

The civil courts tend to recognize and uphold the wills to be valid. In the Islamic context, Islamic law protects the rights of an individual to own or to inherit the estate or wealth but it does not allow any means or tools to hoard money. It is a balanced economic system that allows free movement and circulation of wealth among the masses.

Islamic Law specially Inheritance

Islam is a religion that covers all aspects of life of a Muslim through guidance of revealed knowledge, mainly Al-Quran and as-Sunnah. The two authorities Al-Quran and as-Sunnah have been the sources of Islamic law which govern the interaction between a Muslim with his social groups and economic organizations.  Miras, the Islamic Inheritance or Farail, is an integral part of Islamic Law. It is a systematic distribution process of wealth from predecessor to successor.

 Islam develops laws and an ethical system that enforces legal and halal means to accumulating wealth and a balanced way of spending and distributing it. It recognises the rights of others to such wealth through the Zakat, Charity and Inheritance. The introduction of Fara’id has replaced the inheritance laws of the jahiliyah and elevated the status of women by safeguarding their social and economic interest.  The Quran has raised the status of women by bestowing them a share of inheritance which was not the case before the advent of Islam in the Arabian Peninsula.

The law of inheritance is a comprehensive legal system that allows legal beneficiaries who are eligible to claim their share of the inheritance as guided in the Qur’an. No one is being deprived from his/her rights in the inheritance. The rights of the state are also upheld where taxes on inheritance or even debts are to be paid prior to distribution. Under certain circumstances the state can also be one of the beneficiaries of the inheritance under Islamic jurisprudence. Islam also did not submerge the total inheritance rather has left a portion for the Testator to be utilized for his after death life by bequest a portion of one third. The bequest the will the Wasiyyath is detailed separately in its page and Manual.

Characteristics of Islamic Inheritance law and some clarifications

The introduction of Fara’id has replaced the inheritance laws of the jahiliyah and elevated the status of women by safeguarding their social and economic interest.  The Quran has raised the status of women by bestowing them a share of inheritance which was not the case before the advent of Islam in the Arabian Peninsula.

In Indian Civil law even now women are not included in Inheritance or not allocated a portion for her as mentioned by a legal expert who is a higher ranked in race of Brahmin clan. Some other faith brothers query that if In Islamic Inheritance a male child offspring receives twice the share of a female child as equity and how society functions takes precedence over equality. This is a place where people just have overview to say that equality is not done. But in Islamic perspective men are given total family responsibility, obligations and burdens to look after his family.

According to Jurisprudence woman has no financial obligation at all. For an example Man has to pay Mahr to marry and He has to do the wedding in his expenditure, He has to provide the woman cloth, shelter and food. Woman even not obliged to feed milk for her child but man has to spend. Even the Zakath the Sadaka al fitr of woman has to be paid by the man whereby his failure constitutes sin. In this manner the inheritance portion of female child is exclusively her own and she need not share it with others. Now we need review out view whether more priority given to women.

Islamic ruling on Inheritance (Farail/ Miras)

Fara’id is a complete and comprehensive system for the legal heirs that outline the portions of each rightful beneficiary and the non-rightful beneficiaries applying the al-Hajb method. Inheritance originates from the Arabic word of ‘irs’ which means inheritance, heritage and bequest.  Similarly, the word ‘miras’ has the same meaning of inheritance which derives from ‘Warisa’ that means ‘to inherit’.  The person who inherits is called ‘waris’ which means heir, inheritor or successor.  Islamic inheritance law or Fara’il is an important branch of Shariah of which its application is made mandatory by Allah in Islamic society.  The Quran, as the principle divine source of Shariah, is unequivocally clear that Muslims inherits from each other as in An-Nisa (4:7):

“There is a share for men and a share for women for what is left by parents and those nearest related, whether, the property be small or large – a legal share.” (Al Quran 4:7). Similarly, as narrated by Ibn ‘Abbas, the Prophet (pbuh) in relation to inheritance also said:  “Give the the shares (of the inheritance that are prescribed in the Quran) to those who are entitled to receive it. Then whatever remains, should be given to the closest male relative of the deceased.” (Sahih Al-Bukhari)[1]. The sources of Fara’id can be seen in the Quran, Sunnah of the Prophet (pbuh) and ijtihad of companions and tabi’in.  The Quran contains three verses of 11, 12 and 176 of surah An-Nisaa’ which give specific details of the rights of inheritors which are applied by Muslim jurists as stated.

Further details and rulings on Faraid can be found in Articles section.

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