FACTORS THAT INFLUENCE REPEAT CONTRIBUTIONOF CASH WAQFIN ISLAMIC PHILANTHROPY

Abstract

Cash waqfis an Islamic tool in the Islamic Economic System. Cash waqf inculcates the culture of giving through Islamicphilanthropy. Cash waqfmust be used as a socio-economic development mechanism to create and develop a third sector that is not profit-motivated and distinct from private and public sectors. Awareness of cash waqf contributionand theobligation to donate are crucial amongMalaysians. Waqfinstitutions have seriously promotedwaqf financing instruments to enhance awareness and participation in society. However, awareness toward cash waqfin Malaysia lags behind that in Indonesia and Middle Eastern countries. this study examines the internal determinants of donors‟ (waqif) intention to participate in giving cash waqfamong Muslims in Malaysia. This studyis conducted using a quantitative approach based on constructed questionnaires to identify patterns of factors that influencecash waqfcontribution. Structural equation modelling technique is applied in the analysis. Findings show several internal factors, such as religious obligation, benevolence, familiarity with waqfinstitutions, and access to cash waqf, thathave strongrelationship with donors‟ intention to repeat contribution of cash waqfin the future. Waqfinstitutionsshould encourage people to donate cash waqfin Malaysia. However, mostof the respondents do not trust waqfinstitution. Trust is a significant internal factor in the intention to repeat contribution of cash waqf. Thus, waqfinstitutions should build good reputation and integrity to attract big contributors among Muslims in Malaysia and increase the level of intention among donors (waqif). Waqf institutions should consider these factors in planning their strategies to ensure adequate waqf funds that could accommodate further development for the benefit of the ummah. Keywords:internal factors, cash waqf, Islamic social finance, repeat cash waqf contribution,structural equation modelling (SEM)