Cash Waqf as a Mechanism to Modernize the Performance of Charitable Institutions: The Experience of Disadvantaged Families in Algeria

Abstract

This research aims to discern the effectiveness of cash waqf in modernizing and improving the performance of charitable institutions through the establishment of small, supported projects for the economic empowerment of disadvantaged families. These basic support mechanisms were employed in two pioneering experiments in Algeria: Ethar Productive Family and Bab Rizk Project. Both experiments relied on one type of project financing source: cash waqf. The nature of this source is to maintain the capital while utilizing its benefits for charitable purposes. Despite the recent initiation of the two projects, the results of the study demonstrate how effective cash waqf is in improving the performance of charitable institutions through projects for the economic empowerment of the families receiving sponsorship. It changes their behavior from dependent families to productive ones with an independent income who contribute to the development of the national economy. The two experiments also make use of the society’s capabilities in the form of professional experts and academics in many disciplines by getting them involved in volunteer work. It has led to the modernization of the performance of charitable institutions from their traditional role as mediators between the benefactor and the recipient of philanthropy to a modern performance represented in the process of mediation, training, innovation and ongoing support for projects that provide sustainable income for the recipients of philanthropy.