Wakaf Cash Certificate (Malaysia)

A Wakaf Cash Certificate in Malaysia confirms in writing the status or facts it records for official or evidential use.

In Malaysia, wakaf is constitutionally a State matter under the Ninth Schedule, List II (State List) of the Federal Constitution — each Malaysian state administers wakaf through its State Islamic Religious Council (Majlis Agama Islam Negeri — MAIN). The relevant state legislation governing wakaf includes the Administration of the Religion of Islam (State of Selangor) Enactment 2003, the Administration of Islamic Law (Federal Territories) Act 1993, and their equivalents in each state. Federal coordination of wakaf development is managed through JAWHAR (Jabatan Wakaf, Zakat dan Haji — Department of Wakaf, Zakat and Hajj) under the Prime Minister's Department.

Cash wakaf (wakaf tunai) — the dedication of monetary funds as wakaf — was initially a contested concept in classical Islamic jurisprudence, as wakaf traditionally required the endowment of immovable property (land or buildings) due to the requirement that the wakaf corpus be durable and income-generating. The Hanafi school, followed by scholars such as Imam Muhammad al-Shaybani, permitted cash wakaf on the basis that money can be invested to generate returns for the mawquf alayh (charitable purpose) without consuming the principal. Contemporary Malaysian Islamic scholars and the Fatwa Committee of the National Council for Islamic Religious Affairs Malaysia (Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia) have approved cash wakaf, enabling Islamic financial institutions and SIRCs to receive and invest cash wakaf proceeds.

In Malaysia, cash wakaf is managed through two primary models: (1) corporate wakaf managed by SIRCs through Wakaf certificates issued to donors, with proceeds invested in Shariah-compliant assets and returns channelled to the specified charitable purpose; and (2) Islamic bank wakaf products — such as Maybank Islamic's Wakaf Management Service and Ambank Islamic's wakaf account — where donors deposit cash wakaf with the bank as nazhir (trustee), and the bank invests the proceeds in Islamic fixed income instruments or sukuk to generate returns for the charitable beneficiaries.

A Wakaf Cash Certificate documents the waqif's irrevocable dedication of the cash, the specified charitable purpose, the name of the nazhir (wakaf trustee — typically the SIRC or Islamic bank), and the conditions of the wakaf. The certificate serves as the primary evidence of the wakaf arrangement for tax deduction purposes under the Income Tax Act 1967 and for the nazhir's administrative records.

A Wakaf Cash Certificate in Malaysia is needed whenever a Muslim individual or company makes a cash wakaf dedication and requires formal documentation of the endowment.

A Wakaf Cash Certificate is required when a Muslim individual donates a sum of money to the State Islamic Religious Council (SIRC) for cash wakaf purposes — such as funding mosque construction, Islamic educational institutions (madrasah), healthcare for the poor, or other charitable purposes specified in the state wakaf enactment — and requires a certificate for Income Tax Act 1967 deduction purposes.

A Wakaf Cash Certificate is needed when a Malaysian company makes a corporate cash wakaf donation — typically for CSR (corporate social responsibility) purposes — through a SIRC's corporate wakaf programme or through an Islamic bank's wakaf platform, and requires documentation for the company's audited accounts and LHDN tax deduction claim.

A Wakaf Cash Certificate is required when an Islamic bank customer deposits funds into a wakaf investment account, and the bank issues a certificate confirming the wakaf dedication, the investment strategy, and the designated charitable purpose — as required by BNM's Product Disclosure Sheet guidelines under IFSA 2013.

A Wakaf Cash Certificate is needed when a Malaysian individual establishes a conditional wakaf (wakaf mashroot) — a wakaf that takes effect upon the occurrence of a future event, such as the waqif's death (wakaf ahli for family benefit) or upon completion of a specified charitable project — and requires a formal certificate to document the conditions and the nazhir's acceptance.

A Wakaf Cash Certificate is required when a Malaysian educational institution, mosque committee, or charitable foundation receives cash wakaf from donors and must issue formal certificates to donors as evidence of the irrevocable endowment under the applicable state SIRC administration.

A valid Wakaf Cash Certificate in Malaysia under the applicable state wakaf enactment and Shariah principles must contain the following essential elements.

Waqif (Donor) Identification: Full legal name, NRIC number (for individuals) or SSM registration number (for companies), nationality, address, and contact details of the waqif. For corporate waqifs, the authorised signatory's name, designation, and NRIC must be provided. The waqif must be a Muslim and legally competent to make an endowment.

Nazhir (Trustee) Identification: Full legal name and address of the nazhir — typically the State Islamic Religious Council (e.g. Majlis Agama Islam Wilayah Persekutuan — MAIWP; Majlis Agama Islam Selangor — MAIS), or a licensed Islamic financial institution acting as nazhir. The nazhir's authorised representative details must be stated.

Wakaf Amount: The total amount of cash dedicated as wakaf, stated in Malaysian Ringgit (RM). For recurring wakaf contributions, the frequency and amount per contribution must be specified.

Designated Charitable Purpose (Mawquf Alayh): A precise description of the charitable purpose for which the wakaf proceeds are to be used — such as construction of mosque facilities, provision of Islamic education, healthcare for the poor, assistance for orphans (anak yatim), or other Shariah-approved charitable purposes. The purpose must be one that is lawful, possible, and perpetual under Shariah.

Investment Strategy (for cash wakaf): A description of how the nazhir will invest the wakaf corpus to generate returns — including the Shariah-compliant investment instruments (e.g. Islamic fixed deposits, sukuk, Shariah-compliant equities) and the minimum expected return rate. Under BNM's guidelines, the investment of wakaf funds must comply with IFSA 2013 Shariah requirements.

Conditions of Wakaf: Any conditions (shuroot) attached to the wakaf — including conditions on the beneficiaries, conditions on the continuation of the wakaf, or reversionary conditions (e.g. reversion to the waqif's descendants after the primary purpose is fulfilled, in the case of wakaf ahli).

Tax Deduction Reference: Under Section 6A of the Income Tax Act 1967, contributions to approved institutions or organisations (including SIRCs and approved wakaf funds) are deductible. The certificate must state the LHDN approval reference or SIRC registration number relevant to the tax deduction claim.

Irrevocability Declaration: A declaration by the waqif confirming that the cash wakaf is irrevocable (laa yubaa wa laa yuhab wa laa yurrath — not to be sold, gifted, or inherited) and that the waqif relinquishes all proprietary rights in the wakaf corpus in favour of the nazhir for the specified purpose.

Signature, Date, and Witness: Signature of the waqif, date of the wakaf declaration, and — where required by the applicable state SIRC enactment — the signatures of two witnesses confirming the waqif's capacity and voluntariness. The forms-legal.com Wakaf Cash Certificate (Malaysia) template covers the mandatory elements under Financial Services Act 2013 (Act 758).