Abstract
PurposeThe purpose of this study is to explore the awareness and willingness level of millennials in Indonesia towards cash waqf (cash endowment). Cash waqf has gained huge attention in Indonesia because of its flexibility, especially after the Majlis Ulama Indonesia (MUI) officially announcing in 2002 that cash waqf practices in the country are Sharīʿah-compliant. Millennials comprise 33.75% of the total Indonesian population. Therefore, it is vital to analyze cash waqf from an Indonesian perspective. This study provides vital information for all institutions that are concerned with the enhancement of cash waqf contributions in Indonesia.Design/methodology/approachSelf-structured questionnaires were distributed in Java Island to collect the data. The data were examined by employing suitable statistical tools. Besides, post-interview fact-finding was conducted with cash waqf experts from different related institutions in Indonesia to reach a more in-depth understanding about cash waqf issues.FindingsThe results depict a high level of awareness about cash waqf among millennials in Indonesia. The results further reveal a lower willingness level to contribute to cash waqf of the sample population as compared to their level of awareness about cash waqf. Moreover, cash waqf promotions must focus on delivering a deeper understanding about the concept and how it differs from other types of Islamic philanthropy. The results suggest that waqf trustees in the country must be more transparent. Moreover, the Indonesian Waqf Board should implement stricter rules to monitor waqf trustees.Research limitations/implicationsThis research restricts the sample population to Indonesian Muslims who were born between 1980 and 2000.Practical implicationsAs a Muslim-majority country, one would expect Indonesia to make much progress in cash waqf. By providing an explanatory understanding of willingness and awareness of cash waqf among Indonesians, this research can be helpful in designing proper educative marketing campaigns for future endowers to cash waqf activities to ensure cash waqf institutions provide efficient services. It is advisable to emphasize the transparency of waqf organizations. This will add to the nāz˙irs’ (waqf trustee) reputation, thereby boosting waqf's national shares by ensuring a proper allocation of cash waqf. The regulator should be more strict in monitoring nāz˙ir practices. For instance, it could include a periodic assessment of waqf entities.Originality/valueThis study is original in nature; there is no previous study that addresses the millennial’s perspective toward cash waqf in Indonesia. Hence, this study presents precious information for policy makers, practitioners and researchers.
Highlights
There has been a significant growth of Islamic social finance in the contemporary world, in the past few decades
This research adopted a mixed-method approach to achieve its research goals. It employed both a questionnaire and interview survey to attain a comprehensive understanding from the millennials’ perspective as well as from other official institutions concerned with waqf practices in Indonesia
It indicates that 82.34% of the respondents are aware that cash waqf is a form of charity
Summary
There has been a significant growth of Islamic social finance in the contemporary world, in the past few decades. In the Islamic context, waqf (Islamic endowment) is interpreted as holding an asset and limiting its consumption to frequently extract its usufruct for the benefit of beneficiaries (Zauro et al, 2020). Waqf practices center on buildings and/or lands. Many donors cannot afford to donate an asset in its entirety to participate in waqf activities. Cash waqf (cash endowment) is an important option for donors who do not have a fixed asset but rather have movable assets, i.e. cash, for donating. All the strata of a society can perform sustainable charitable activities through cash waqf – regardless of the amount of money – as long as they are keen on doing it voluntarily for the sake of gaining Allah’s (SWT) pleasure (Aldeen et al, 2020)
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