Endowment Management Research Articles

An Islamic Crowdfunding Model for the Agricultural Sector: A Proposal Based on Salam and Muzāraʿah-Waqf Scheme

Purpose — This study aims to discuss several examples of temporary Islamic endowments (waqfs) in the modern period, arguing that jurists and Muslim endowment managers should utilise them more widely to adjust to current societal circumstances and open the door for new ways of caring for those in need. Design/Methodology/Approach — It employed textual analysis of legal opinions related to temporary waqfs, outlining the positions of scholars on both sides of the issue, including a presentation and analysis of their evidence. Findings — The research findings show that temporary waqfs are an essential means of renewable and sustainable economic support, where wealthy people endow their money for religious gain and to help others in need. Originality/Value — Unlike some previous studies, this article specifically examines modern and contemporary forms of temporary endowments and demonstrates some of their effects in supporting the economy and the needy in society. Practical Implications — Following this paper’s recommendations, those with funds and everyone who can create an endowment should support endowment institutions in modern ways and in different areas of temporary endowments, which would be very beneficial in eliminating poverty and supporting the economy. Research Limitations/Implications — Due to the limited scope of the study, its findings are limited to contemporary jurisprudential issues related to temporary endowments. Hence, it is related to the Islamic economy and steps for strengthening it in Muslim societies.

Leveraging corporate digitalization for green technology innovation: The mediating role of resource endowments

In this carbon neutrality era, digitalization is booming and emerging as having an essential role in corporate green technology innovation (GTI). However, as corporate digitalization is a systematic project involving various aspects, research into its role and mechanisms in shaping GTI is expected to be enriched. Given the complexity of measuring corporate digitalization, we first provide a measure of firm-level digitalization by applying natural language processing techniques and unsupervised machine learning modelling to management discussion and analysis text. Further, drawing on the resource-based view, we reveal a positive association between corporate digitalization and GTI, and find that corporate digitalization contributes to GTI by improving resource endowments management including resource accumulation, utilization, and allocation. As carbon neutrality and digitalization are in full swing, this study advances research on digitalization and highlights its role in sustainable corporate transformation.

Pengawasan Pengelolaan Tanah Wakaf Dalam Kewenangan KUA Kecamatan Nanggung Kabupaten Bogor dalam Pendekatan Konsep Kesejahteraan Sosial

Endowment management has special principles, namely the principles of sustainability and eternity. This principle of eternity can be manifested in the form of optimizing the performance of nazhir (endowment organiser) and the District Office of Religious Affairs (KUA) which functions as manager, supervisor and recorder of the orderly administration of endowment in Indonesia. Due to the wide and large distribution of endowment land throughout Indonesia, the government, in this case the Indonesian Ministry of Religion, appointed the role and function of KUA elements as executors and supervisors of endowment. The style and allocation of waqf in each sub-district is different. This article analyzes the role and authority of the KUA of Nanggung District, Bogor Regency in carrying out its functions. In particular, the allocation of endowment in Nanggung District is still limited to '3M' endowment, namely masjid-musala, madrasa, and burial ground. This research uses a empirical juridical approach which is descriptive analytical and explanatory. This research provides an overview and analysis of endowment organiser and supervision practices by nazhir and by the KUA institution by linking this implementation to applicable laws and regulations. The results of this research show that the role and function of the Nanggung District KUA has been implemented optimally. The role of guidance and supervision runs optimally as seen in the endowment land which is registered and monitored from the aspect of ownership, handover of the endowment to the aspect of the performance of the nazhir as the endowment organiser.

Nazhir Legal Aspects of Cash WAQF in Indonesia in the 4.0 Era

This study aims to analyze the related law No. 41 of 2004 concerning endowments in particular the rules relating to endowment management institutions entitled to collect and manage money endowments (nadzhir waqf money) in Indonesia in the context of the era of 4.0 which emphasizes Islamic financial institutions and advances in digital technology. The method used is a qualitative research method with a normative juridical approach with data collection techniques study literature, interviews, and documentation, then analyzed through descriptive analytics. The results of this study indicate that the progress and development of technology in the 4.0 era, especially in the digitalization of the waqf program, makes the collection and management of waqf money mainly depend on the technological advancements owned by the institution, massive commitment and socialization to the public regarding money waqf, and Islamic financial institutions that collaborate with nadzhir. The recipient of the waqf money is considered to have technological devices and SDI that can support the management and collection of waqf money in Indonesia, in addition to credibility in terms of financial accountability as well as the guarantor and supervisory institutions in addition to the OJK, BWI, and DPS.
 Keywords: cash waqf, nadzhir, money

Practical Applications of Are Endowment Managers Better Than the Rest?

Practical Applications of Are Endowment Managers Better Than the Rest?

Endowment building and use by nonprofits: An integration of theory and practice

AbstractThis paper explores issues concerning endowment building, endowment management, and the general perceptions of endowment through the views of leaders of nonprofits that built an endowment. We find that endowment is generally considered meaningful to nonprofit leaders when it provides at least 5% of an organization's annual budget. The initiative for building endowment largely comes from boards of directors, executive directors, or some combination of both. However, external actors—especially foundations—play critical roles. The source of funds for endowments mostly come from major gifts including bequests, even though these gifts often were not solicited. Endowments serve a range of functions for organizations and do seem to alter organizational behavior and outcomes as suggested by the existing literature. Endowment aids organizational sustainability by supporting some reasonable level of annual operating costs. Many nonprofits use the flexibility and freeing up of resources provided by endowment funds for innovation, program enhancement, capacity building, and risk taking. For better or worse, endowments become a key part of a virtuous cycle of legitimacy where the nonprofits' accomplishments, relationships, and reputation attract resources to support activities in perpetuity, thus creating a more capable, stable, and accomplished organization to which additional support is more easily drawn.

The University and Democracy: A Response to “Dewey, Implementation, and Creating a Democratic Civic University”

The University and Democracy: A Response to “Dewey, Implementation, and Creating a Democratic Civic University”

Mission Impossible: Foundation Investment Policy in the Post-COVID World

This article focuses on the management of endowments that are associated with private and community charitable foundations. Endowment portfolio managers face a difficult environment due to low interest rates and high inflation. We construct a novel return hurdle for foundations that is forward-looking and market based. This return hurdle indicates that the total and excess returns necessary to meet typical foundation portfolio objectives are near all-time highs. There are no riskless spending policies available for foundations that desire to operate in perpetuity. While some investment committees and portfolio managers will be compelled to “risk up” to try to meet their return and distribution objectives, doing so creates a nuanced set of trade-offs that impact the broader objectives that most foundations consider when determining success or failure. We illustrate the tradeoffs and offer some suggestions for improving outcomes in the post-COVID environment.

Does the financialization of natural resources lead toward sustainability? An application of advance panel Granger non-causality

The financial management of natural resources endowment is necessary to accomplish sustainable economic growth agenda. The previous literature on the elements leading to environmental deterioration has resorted largely to CO2 emissions or ecological footprint following a restrictive approach. A scarce body of studies has noted globalizing environmental pollution components, such as ecological status. The objective of the study is to probe the financialization of natural resources to meet sustainable targets in the context of the top ten natural resource-rich countries spanning the period 1990–2018. Empirical findings, based on a novel panel Granger technique (Juodis et al., 2021), disclose that natural resources contribute to ecological deterioration rather than preserving the environmental performance. Financial markets and institutions, on the other hand, have been effectively serving the environment to curtail the detrimental effects of natural resources on the environmental performance by providing solutions to help regulators to meet their economic and sustainability goals simultaneously. Further, it appears that economic growth validates the EKC hypothesis and leads to alleviating the atmospheric worth in the beginning whilst it preserves the environmental quality after reaching a threshold point. The outcomes documented in this study offer some appropriate policy implications to accomplish sustainable growth objectives.

ISU DAN CABARAN DANA WAKAF ILMU UITM CAWANGAN PERLIS

The establishment of waqf funds in institutions of higher learning is increasingly being developed by many public and private institutions of higher learning throughout the country. The phenomenon of the establishment of waqf funds has triggered great innovations in the development of waqf in the country. It is in line with the launch of the UniTP Purple Book Guidelines that has been enforced for use in October 2016 by the Ministry of Higher Education to develop their respective endowment management centers to generate income. In this regard, UiTM Perlis Branch took the initiative to establish the UiTM Perlis Knowledge Endowment Fund (DWIPs). Thus, this study examined the issues and challenges faced by DWIPs in helping the income generation of higher learnings institutions. This study used a qualitative method with a case study at UiTM Perlis Branch. The experience of the authors and fellow authors who led DWIPs from the beginning of the establishment to the present were analyzed and described descriptively and comparatively. The findings of the study found that there are four issues and challenges, which are lack of understanding and public awareness of waqf, management bureaucracy problems, lack of energy resources in the management of DWIPs as well as legal and financial barriers. The results of this study are intended to help spread awareness of DWIPs among the staff and gain attention from the university management. In relation to that, it can also increase the amount of knowledge endowment fund collection and benefit all UiTM Perlis Branch staff.

Richard ennis’s insights Are Endowment Managers Better Than the Rest?

I compare five aspects of investing large educational endowments and public employee pension funds: operating environment and culture, institutional characteristics, expense ratio, risk habitat, and risk-adjusted performance. The most significant measurable differences between the two types of investing institutions are: 1) the amount they spend on investment management and 2) the degree of risk they take. In terms of risk-adjusted performance, endowments have underperformed public funds by a small margin for the 13 years ending June 30, 2021. There is no evidence that endowment managers have an edge over public fund managers of a type or magnitude that might translate to a performance advantage.

Imperial Landed Endowments (Vakıf Çiftliks) in the Nineteenth-Century Ottoman Empire: The Case of Pertevniyal Valide Sultan’s Endowments in Thessaly

Abstract This article takes Pertevniyal Valide Sultan’s endowments as a case study and proposes an original contribution to the literature by discussing the transformation of Ottoman endowment management throughout the nineteenth century. The account books of landed estates (çiftliks), other endowment documents, and the Ottoman imperial archives constitute the basis of explaining different phases of estate management practices for endowments in the Thessaly region of northern Greece. The main argument is that, in contrastto the administration of earlier endowments in the region, the central administration of Pertevniyal Valide Sultan’s endowments expanded its control over its provincial revenue sources. This transformation became possible with the help of negotiations and alliances with several imperial and provincial institutions. This article also contributes to understanding social and economic life in Ottoman çiftliks by analysing land, production, and taxation relations in Thessaly.

THE MOROCCAN WAQF AND THE COMMON-LAW TRUST: A COMPARATIVE STUDY

Etymologically, the term trust originates from Latin; it means “care”. Charitable trusts and waqfs are methods of facilitating the intergenerational management of family wealth. Both are thought of as estate-planning vehicles, ensuring that assets of the testate go to certain individuals or organizations. However, whereas the trust has expanded its scope to cover the economic field, the waqf in Morocco is still considered a religious exercise. While there are shared features between the Moroccan waqf and the trust, they are conceptually and practically different in many aspects, most importantly in their perception of ownership and their contrasting stances regarding endowment duration. Despite the importance of the trust. The comparative legal methodology has been adopted to study the spirit of the different legal systems. The comparison has revealed the existence of undeniable similarities in terms of the management of endowments, yet the differences are numerous, especially with regard to ownership structure, juristic personality, and perpetuity rules, among others.

Are Endowment Managers Better Than the Rest?

Are Endowment Managers Better Than the Rest?

The Evaluation of Rental Amount of Religious Endowments by Using Geomatic Techniques and Machine Learning Algorithms Hilla/ Iraq

The religious endowments are one of the important sources, which acquire historical, cultural, and economic importance in all countries of the world. In particular, a religious endowment in Iraq includes several distributed real estates and lands that usually require efficient management systems. One of the most important factors affecting the management of real estates that belong to religious endowments is the rental amount of each real estate. In general, the estimation of the rental of real estates can support the future development of religious endowments. Governmental agencies are faced with some challenges in the management of religious endowments in terms of rental pricing due to numerous economic and geographic factors. The rapid development of artificial intelligence systems and Geomatic techniques can present a framework for rental amount estimation based on spatial and non-spatial factors. In this study, a machine learning algorithm (Support Vector Regression) will be combined with Geographic Information System (GIS) to predict and evaluate the rental amount of real estates that belong to a religious institution in Iraq (Shiite endowment in Hillah city). The final results indicated that the proposed method achieved an overall accuracy of 71%, a root mean square error of 0.2257 million Iraq, Dinar (IQD), and a correlation coefficient of 0.9272. This study can be used as an effective tool for the decision-makers to plan and manage the religious endowments in developing countries.

REBUTTAL: The Endowment Model Defense That Wasn’t

In “The Endowment Model Is Just Active Management” (Siegel 2021b), Siegel chooses to expound on active investing in conceptual terms, with occasional reference to endowment management. This rebuttal contends that the Siegel article is long on intellectual theory and short on proof. The author takes issue with Siegel’s rationalization of endowments’ significant underperformance over 12 years and counting. The case for active investing looks past the elephant in the room—theory and evidence casting grave doubt on the merit of diversified—that is, myriad-manager—active investing such as that of endowments. The exceptionalism argument falls flat. The article sidesteps the glaring deficiencies of the endowment model. Siegel simply <i>posits</i> the presence of “skilled employees” in university investment offices who will get the job done despite obstacles of their own making. This rebuttal finds the explanation unconvincing and concludes that the endowment model is dead as a doornail. <b>TOPICS:</b>Foundations &amp; endowments, portfolio theory, portfolio construction, performance measurement <b>Key Findings</b> ▪ Siegel’s article makes a case for endowment <i>exceptionalism</i>. This is a kind of cultural advantage that leads him to conclude that endowment managers should be able to generate superior returns over the long run. The exceptionalism argument falls flat when subjected to logical and empirical analysis. ▪ In letting the endowments off the hook for an extended period of underperformance, the article makes a specious comparison of endowment returns with those of the S&amp;P 500 stock index during a major bull market. A proper benchmark is 72% all-cap, global equities and 28% bonds. ▪ The article sidesteps the glaring deficiencies of the endowment model. Siegel simply posits the presence of “skilled employees” in university investment offices who will get the job done despite obstacles of their own making.

POLITICAL PARTIES AND ISLAMIC LAW POSITIVIZATION IN CONTEMPORARY INDONESIAN GOVERNANCE

Purpose of the study: This research aims to analyze the existence of Islamic law formalized into Indonesian law in the Reformation Era from 1999 to 2019 and explore whether it is legally stronger or weaker. Also tries to explore what Islamic law fields are formalized into Indonesian national law.&#x0D; Methodology: This research is qualitative research that is doctrinal law research with juridical analysis methods. The main source of research data is the law established between 1999-2019. Data is described systematically and objectively, then analyzed using content analysis techniques.&#x0D; Main Findings: During the Reformation Era 1999-2019, 17 Indonesian national laws contained formal Islamic law. The legal position of Islamic law became stronger in several fields, namely hajj (pilgrimage) and umrah management, management of zakat, implementation of special privileges Aceh Province, endowments (waqf) management, religious courts, state sharia securities, Islamic banking, halal product guarantee, marriage law and the existence of pesantren (Islamic boarding school).&#x0D; Applications of this study: This study is useful as a model example of a relationship between religion and state. Islamic law can be transformed into state law without changing the state principles. This research also provides a solution to Muslims (they are the majority in Indonesia) that Islamic law can be constituted as national law constitutionally and tolerant of other religious communities.&#x0D; Novelty/Originality of this study: The object of research is positivization in contemporary Indonesian governance that has been enacted between 1999-2019. In terms of time, this is very representative and updated.

Investure, LLC: Investing in Alternative Assets

In July 2019, Bruce Miller, CEO of Investure, LLC (Investure), an outsourced chief investment office (OCIO), is preparing a proposal for Franklin and Marshall (F&M), a small liberal arts college located in Lancaster, Pennsylvania, with an endowment of $350 million. F&M recently began a search to find a new endowment manager in hopes of improving its investment returns and access to alternative assets (AA), such as private equity (PE) and hedge funds. Investure offers outsourced investment-management services to endowments and foundations (E&Fs) with assets less than $2 billion and is one of several companies competing to win the mandate to manage F&M's assets. Investure's approach is to pool the assets of like-minded institutions and significantly increase their allocations to PE. Miller and his team are preparing to meet with the F&M board's investment committee to describe Investure's services and approach to investment management.This case is designed to introduce students to AA and the distinctions among PE, hedge funds, and private capital within this asset class. It focuses primarily on why PE is a difficult asset class to manage and describes several channels available to small endowments like F&M to access PE. The case introduces students to the core vocabulary of PE investing and limited partnership agreements. To make the concepts and terms more concrete, it provides a simple exercise that asks the students to calculate the expected internal rate of return (IRR) on an investment made through a traditional limited partnership (primary fund commitment) and a fund of funds and compare those to Investure's approach. Students must evaluate and discuss the feasibility and attractiveness of each alternative to F&M. In doing so, the case creates an opportunity for students to discuss the current trends and issues many E&Fs confront as they attempt to increase allocations to PE.The case is appropriate for use in an introductory or early class in courses focusing on PE, venture capital (VC), and entrepreneurial finance, as well as in specialized courses for fund trustees interested in AA. The case can be used for the following purposes:1. To introduce students to AA and how they differ from public equities and fixed income.2. To introduce students to the core vocabulary of PE investing and limited partnership agreements.3. To introduce the channels of access to PE investment and evaluate the advantages and disadvantages of each.4. To analyze the returns to limited partners who choose to pursue PE investment under a traditional limited partnership and a fund of funds and compare those to Investure's OCIO model.5. To familiarize students with the current trends and issues motivating the growth in outsourcing of endowment management. Excerpt UVA-F-1971 Feb. 2, 2021 Investure, LLC: Investing in Alternative Assets In July 2019, Bruce Miller, CEO, of Investure, LLC (Investure), an outsourced chief investment office (OCIO), was reviewing the proposal his team would make in an attempt to gain its newest client, Franklin and Marshall College (F&M), a small liberal arts college located in Lancaster, Pennsylvania. F&M had recently started a process to select a new manager for its $ 350 million endowment. In learning more about F&M, Miller felt it was the kind of like-minded endowment and foundation (E&F) his firm targeted, but knew he would face stiff competition to win the mandate. Miller had been recruited to Investure shortly after its founder, Alice Handy, started the firm in 2003. At her previous position as CEO of the University of Virginia Investment Management Company (UVIMCO), Handy had produced a successful track record by increasing the endowment's investments in alternative assets, such as private equity (PE) and hedge funds. Together they had worked to land Investure's first client, Smith College, with a nearly $ 1 billion endowment in 2004. From there, the firm had grown to 12 clients and $ 14 billion in assets under management (AUM) (Exhibit 1). . . .

TINJAUAN FIKIH WAKAF DAN UNDANG-UNDANG NOMOR 41 TAHUN 2004 TENTANG WAKAF TERHADAP PENGELOLAAN WAKAF UANG OLEH YAYASAN TENDA VISI INDONESIA

ABSTRACTToday many non-endowments institutions that receive and manage endowments of money include the Tenda Visi Indonesia Foundation (TEVIS). The TEVIS Foundation manages and distributes it according to its programs. So, this article was conducted by the author to find out the management of waqf money according to waqf fiqh and Indonesian Law Number 41 of 2004 concerning endowments, as well as the suitability of the management of endowments in money at the Tenda Visi Indonesia foundation with the concept of waqf money and Law No. 41 of 2004 concerning endowments. The method in this study is a qualitative method with a normative juridical approach, the type of research is field research using field data collection methods with observation, interviews, and also literature studies. The results of the study concluded that: first, the management of cash waqf according to fiqh only be distributed to what is permitted sharply according to law No. 41 of the management of cash waqf is carried out on banking products. Second, cash waqf management conducted by the TEVIS foundation is carried out in the real sector. Third, the management of cash waqf carried out by the TEVIS foundation was under fiqh waqf and according to Law No. 41 of 2004 concerning waqf, there is a discrepancy because of the TEVIS foundation doesn’t register its money to the minister and its management doesn’t go through banking product. Keywords: Fiqh of Waqf, Law No. 41 of 2004, Endowments of Money.

Endowment for a rainy day? An empirical analysis of endowment spending by operating public charities

AbstractThere has been growing public attention to the accumulation and spending of endowments in recent years. Scholars have offered different theories on the objective of endowments that have different implications for endowment spending. Yet, there are limited empirical studies and they mostly focus on universities. Using the Form 990 data between 2009 and 2016, this study examines how endowments are actually spent for four types of operating charities, including museums, universities, hospitals, and K‐12 schools. The descriptive results show that there are considerable cross‐sectional differences in endowment characteristics across these types of organizations. The fixed effects analyses further demonstrate different types of organizations have different payout responses to changes in endowment returns, non‐endowment income, and contributions to endowment. However, the study does not find any empirical evidence that organizations use endowments as rainy day funds. This article extends the understanding on endowment spending behavior from universities to other types of operating charities that also hold endowments. The findings provide empirical evidence that may inform the existing debate on endowment spending and have practical implications for endowment management.