THE CONTRIBUTION OF W AQF INSTITUTIONS IN MALAYSIA AND TURKEY IN IMPROVING THE SOCIO-ECONOMIC CONDITIONS OF THE SOCIETY

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T ürki ye İslam İktisadı D ergisi , C ilt 4, S ayı 1, Şubat 2017, ss. 1-29

T urkish J ournal of Islamic E conomics, V ol. 4, No. 1, F ebruary 2017, pp. 1-29

E -IS SN: 2148-3809

http://dergipark.gov.tr/beuntujise http://www.tujise.org

D OI: http://dx.doi.org/10.15238/tujise.2017.4.1.1- 29

T H E C O NT R I BU T I O N O F W A Q F I NS T I T U T I O NS I N M A L A Y S I A A ND T UR K E Y I N I M PR O V I NG T H E SO C I O -E C O NO M I C C O ND I T I O NS O F T H E S O C I E T Y

Norma Md S A A D

1

, Saim K A Y A D IB I

2

, and Z arinah HA MID

3

A bstr act

It has been widely acknowledged that waqf institutions play an i mportant role i n the socio-economic development of the Muslim Ummah i n the Islamic history. T his paper elaborates the contributi on of selected waqaf entities in T urkey and Malaysia i n improving the socio-economi c conditions of the society. T he waqaf entities invol ved in this study include two corporate waqaf institutions from Malaysia, namely A l-B ukhary F oundation and K umpulan W aqaf A n-Nur B erhad; and four waqaf entities in T urkey, namel y, IHH F oundation, D iyanet F oundati on, Hakyol F oundation, and T IMA V . T his study discusses the projects and programs undertaken by these selected waqf entities to achieve their respective objecti ves. Such a comparison is important considering the diverse experiences of these selected waqaf entities in view of the differences i n their endowments and different corporate management model s. T he paper investigates whether these waqaf entities have i mplemented a novel approach i n developing waqf programs and experimenting new ways of new reaching out to the beneficiaries.

K eywords: W aqf, B est Practice, Management Model, Malaysia, T urkey

M A L E Z Y A V E T Ü R K İY E ’D E K İ V A K I F L A R I N T O PL UM UN SO SY O -E K O NO M İK K O ŞUL L A R I NA Y A PT I Ğ I K A T K I L A R

Özet

İslam tarihinde vakıf kurumlarının müslüman ümmetinin sosyo-ekonomik gelişiminde önemli bir rol oynadığı yaygın olarak kabul edilmektedir. B u makale, T ürki ye ve Malezya’daki seçilmiş vakıf kurumlarının toplumun sosyo-ekonomik koşullarına yaptığı katkıları incelemektedir. Makalede ele alının vakıflar, Malezya’dan A l-B ukhary V akfı ve K umpulan W aqaf A n-Nur B erhad vakfı, T ürki ye’den ise İHH V akfı, D i yanet V akfı, Hakyol V akfı, ve T İMA V ’dır. Ç alışmamız, bu vakıfların proje ve programlarının belirtilen amaçlara ulaşmalarını sağlayıp sağlamadığını tartışmaktadır. S eçilmiş bu vakıfların sahip oldukları imkanlarda ve yönetim modellerindeki farklılıklarla el de etti kleri geniş tecrübeler bu karşılaştırmayı önemli kılmaktadır. B u vakıfların, vakıf

1

Professor, D epartment of E conomics, K ulliyyah of E conomics and Management Sciences,

International Islamic University Malaysia, Gombak, 53100 K uala L umpur. 2

C orresponding author, A ssociate Professor, D epartment of E conomics, K ulliyyah of E conomics

and Management S ciences, International Islamic University Malaysia, G ombak, 53100 K uala

L umpur. E -mail: skayadibi@ yahoo.com 3

Professor, D epartment of E conomics, K ulliyyah of E conomics and Management Sciences,

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2 programlarını özgün bir yaklaşımla geliştirip geliştirmedikleri ve ihtiyaç sahiplerine yeni yoll arla ulaşıp ulaşmadıkları araştırılmaktadır.

A nahtar K elimeler : V akıf, en i yi uygulama, yönetim modeli, Malezya, T ürki ye

1. I ntr oduction

W aqf is an act of dedicati ng a corpus of property or financi al assets in perpetuity for the cause of A llah S W T . T he ownership of the property or assets are transferred to A llah S W T but the benefits are dedicated to the poor, sick, margi nalized segment of the society, or any other virtuous causes. T he mai n purpose of sacrificing these properties or assets i s gain the pleasure of A llah of SW T .

W aqf i nstituti ons had played an i mportant role in Islamic society i n the history of Islamic ci vi lization. T his Islamic i nstituti on was well spread and was accepted as one of the foundations to buil d the human society especiall y in providing the basic need and functi ons as system supporter as well as free infrastructure. History of Islamic awqaf goes back to the time of the Prophet ( peace be upon him). T he institution has always provided public goods that range from educati on and health care to water suppl y and hi ghway facilities on a voluntary basis by the non-profit sector. B ut it has generall y been considered as a religious and charitable provision. E mphasis on its socio-economic role is rather a recent phenomenon.

T he institutions of waqf are among several instruments instituted by Islam to combat poverty and enhance welfare in the society. W aqf provides the material infrastructure and creates a source of revenue for use in, among others, social welfare enhancing activities both at famil y, community and state lev els. W aqf is a voluntary act of charity that comes under the general terms of S adaqah and Infaq.

Musl ims are inspired to perform an act of waqf from many verses of the H ol y Quran and the Hadith of Prophet Muhammad SA W . T he Hol y Quran says,

امم ا2قفنت 4تحربلا ا1انت نل

م8لع هب ﷲ ناف ء4ش نم ا2قفنت ام1 ن2بحت

“E ven so, O believers, you shall never attai n to the highest virtue of faith until you spend in charity from that which you l ove. A nd anything you spend, indeed, G od is all-knowing of it.” (A l-`Imran, 3:92)

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3 feeds his friends and does not hoard up goods ( for himself).” Sahih Musli m, B ook of B equests (K itab A l-W asi yya)

S ince historicall y, waqf has been proven to be an effective tool to eliminate, hunger, poverty, misery, and promote equitable distributi on of wealth, it is i mportant to identify the successful contemporary waqf institutions and examine the management practice or approach i n managing the waqf properties or assets. It is equall y important to study how effecti vel y these waqf instituti ons distri bute the proceeds of waqf investments to the intended beneficiaries. T his study compares the different practices of managing waqf i nsti tuti ons in Malaysia and T urkey with the aim of identif ying the best management practice or approach. T he findings woul d make a contributi on to waqaf managers and towards improvement of the admini stration and management of waqf institutions.

2. L iter atur e R eview

2.1. W aqaf in S oci o-E conomic D evel opment

T he practice of W aqaf is not new in history. W aqaf-like charity has a history older than Islam and the Islamic model of waqaf has influenced the world at large. G reat instituti on such as the famous Oxford Uni versity was established by foll owing the Islami c model of waqaf. A ccording to G audiosi (1988, pp. 1231-61) as cited in C izakca ( 1998) : “… it has been definitel y established that the famous Oxford U niversity was built on the Islamic W aqf model ( C izacka, 1998, p. 11) .

W aqaf institutions have been known to play an i mportant role i n the socio-economic development of the Muslim U mmah particularl y in the middle period of the Islamic history. T hese non-profit organizations had played a si gnificant role through their varied and wide contri butions to ensure the social and economic life of human beings could be established and uphold with fairness and justice. In Islamic history and civili sation, waqaf institutions had played an i mportant role in providing the social goods ( education and health) , public goods (roads, bridges and national security) , utilities ( water and sani tation) , religious services (building and maintenance of mosque and graveyards) , helping the poor, orphans and the needy, creating employment, supporting agricultural, commercial business and industrial sector (S adeq, 2002). A s reported by K ahf ( 2004) in 1800s, waqaf lands covered substantial proportion of land area in E gypt, A lgeria, T urkey and Palestine. Most of the waqf revenues were spent on mosques, to pay for the salaries of i mams, teachers and preachers, in additi on to covering for the expenses on maintenance of the mosques. T his independent source of financing enabled the religi ous leaders and teachers in the Muslim countries occupied under colonizati on to take social and political positions independent of that of the rul ing class.

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4 J A W HA R to monitor the effectiveness and efficiency of waqaf, zakah and hajj administration i n every state in Malaysia (J A W HA R , 2012).

A nother area that has been a major beneficiary from the waqaf fund is education. A ccording to K ahf (2004) , educati on has been the second largest recipient of waqaf revenues. A t the beginning of 20th century, all schools in J erusalem are waqaf and were supported by awqaf properties. Similarl y, waqaf has been supporti ng the education sector in T urkey and S yria. Si milarly in E gypt, the University of al-A zhar in C airo which was founded in 972 was also financed by its waqaf revenues. Sadeq ( 2002) reported that more than 8000 educati onal i nstitutions in B angladesh incl uding universities, colleges and schools were based on waqaf.

W ith regards to funding education, while there is a popular belief that onl y religious education benefits from waqaf funds, in actuality this is merely a misconception. W aqaf funds have benefitted wide range of education, including the area of medicine. In the modern context of education today, waqaf funds have been tapped for the buil ding of Islamic schools in the western world such as i n the US ( A lH ajeri and T homas, 2011) .

A n excellent example of funding of the education sector through waqaf fund is the Musl im waqaf communities in T urkey. Indeed, for centuries, the Islamic schools ( madrasa) were the institutions that constructed the i ntellectual, political, and legal foundati ons of the Ottoman E mpire. Its prominence in the rise of the Ottomans and T urkic-Islamic civilization cannot be downgraded. T he madrasa was the most fundamental instituti on that shaped the Ottoman mindset, identity, source of knowledge, and worldview, as well as its official and social organizati onal types. It was a kind of livi ng organi sm that nurtured Ottoman thi nking, the educati on system, and social life.

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5 Of course, there are other cultural, social, and cultural reasons that led to the collapse of the madrasa. Other factors included the emergence of E uropean countries as superpowers, and the power of westernization movements influencing state policy during the T anzimat period. T his was the result of such movements importi ng and substituti ng a W estern mind-set, and a goal to change social and soci o-cultural life. Such developments necessitated that the madrasa and educational system be re-examined.

R ealizing the big potential of waqaf to support the educational development in a country, similar efforts are being undertaken in Malaysia by the Y ayasan Iqra ( Iqra F oundation). T he foundation aims at promoting wealth creation through Muslim endowment pri nciples and set to make corporate Islamic endowment Malaysia's third financial force. Islamic endowment principles ensured transparency and accountabi lity i n managing finance while weaning off reliance on the G overnment for funds. T he foundati on provides a platform for individuals and the corporate sector to commit shares or financial instruments as endowment with a portion of the profits returning to the princi pal sum and the remaini ng channelled to the communi ty.

2.2 I ssues in M anagement of W aqaf

T he perpetual nature of waqaf resulted in the build-up of waqaf properties i n many Musl im countries, incl uding Malaysia. Hasan and A bdullah ( 2008) stated that i n Malaysia, waqaf lands are reported to be over 32,000 acres. A ccording to Hasan and A bdul lah, these lands have the potentials to be invested and generate income to benefit the Muslim society. Hasan and A bdullah quoted an example of a large scale investment of waqaf land in Malaysia involving the F ederal T erritories’ Islamic R eligi ous C ouncil, T abung Haji, T H T echnologies S dn. B hd., and B ank Islam Malaysia B erhad to construct a 34-storey building at a cost of R M151 million. D espite this development, Hasan and A bdul lah observed that waqaf land is under-util ized and under-developed.

B ased on the statistics reported in the Portal i-W akaf by J A W H A R , in Malaysia there are 4523 units of waqaf land with a total size estimated to be 11091.82 hectare and worth R M99 million ( J A W H A R , Portal i-W akaf 2012 cited in S ulaiman, 2012, page 158). A lthough some of the waqaf lands are situated at strategic l ocati ons and have potentials to be developed, they remai n idle mainl y because of financial constraints faced by the S tate Islamic R eligious C ouncils (SIR C s) . T hus far, the government of Malaysia is the onl y source of funding for waqaf projects. In the 9

th

Malaysia Plan (R MK -9), the federal government of Malaysia all ocated R M256.89 million but it was substantiall y reduced to onl y R M72.6 million in the 10

th

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6 A ccording to Hassan and Shahid (2010), despite the important and great potential of waqaf i n the Muslim socio-economic development, the present state of waqaf instituti ons are unsati sfactory. A s a result of the poor management of the waqaf instituti ons, the vulnerable segments of the Muslim society are no longer under the cover of the waqaf. In many countries, waqaf institutions are not being gi ven proper attenti on, resulti ng in a vast amount of waqaf properties bei ng il l-managed. Many of these properties have vast commercial potential s, but are not being maintained properl y, resulti ng in these properties not yielding their greatest benefits to the society. Several factors have been identified as the source for the non-satisfactory waqaf management, incl uding legislative lacunae, administrative lapses, lack of political will, indifferent attitude of the management of the awqaf, and lack of honesty and integrity. S ulaiman ( 2012) studies concurs similar issues and challenges in developing these waqaf lands. A s a solution to the problem, the study suggests that the waqaf institutions to be managed into a professional way of managing the assets within a modern admini strative framework. In particular, the study suggests that the principles of stakehol ders’ to be introduced in the waqaf management. A dditi onall y, in efforts to revitalize the waqaf assets, the study proposes two sources of funds, namel y cash waqaf and musharakah sukuk to provide the financial needs for the development of the waqaf properties.

S ait and L im ( 2005) highli ght several factors that result in the decline of the waqaf sector. T his includes the impact of colonial powers which prefer a status quo with regard to endowments, the power base of the religious clergy which has some degree of economic i ndependence by taking credit for the benefits of the endowment system, the issue of perpetual benefits of waqf has always been highlighted to a point that the benefits accruing to an individual were insignificant, and the issue of rigidity in managing the waqf, which many attribute as the main cause for the backwardness of the Musl im economy. T he study provides several suggestions to revive the role of waqf in the contemporary setting, such as having an international support, particularl y from the OIC , ID B and the ISE S C O, bringing up innovati on in the administrative structure of the waqf sector, and providi ng innovative approaches to waqf lands by releasing the potential of a high proportion of these lands in the public interest. W ith regard to modernizing the administration of waqf, the study suggests that waqf should be seen as a civil society instituti on provi ding public space, thus capable of promoti ng democratization and good governance. T his includes relating the challenges of adapting modern management techniques to the prevaili ng economic relations among societies where waqf exists such as linking waqf funds to microfinance through the Islamic microfinance ini tiatives.

3. R esear ch M ethodology

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7 activities, beneficiaries, organizational set up and channel of accountability of selected waqf instituti ons. T he waqaf i nsti tuti ons involved in the study include two waqaf entities in Malaysia namel y, A l-B ukhary F oundation and K umpulan W aqaf A n-Nur Berhad; and four waqaf entities in T urkey, namel y, IHH F oundati on, D i yanet F oundation, Hakyol F oundation, and T IMA V .

4. E xper iences of Selected W aqf O r ganizations

4.1. A lbuk har y F oundation

T he A lbukhary F oundation was established in 1996 by S yed Mokhtar A lbukhary, a well-known and successful businessman. T he F oundation aims to create a more caring and progressive world through a wide ranging initiati ves such as education, health, welfare, and culture. T he foundation carries out its activities through three different entities:

1. A lbukhary F oundati on 2. Islamic A rts Museum Malaysi a

3. K ompleks Ilmu S harifah R oki ah ( S harifah R okiah K nowledge C omplex)

4.1.1. A lbuk har y F oundation

A lbukhary F oundation focuses on humanitarian activities, helping the less fortunate and at-risk groups to become independent indi viduals and communities. Islamic A rts Museum Malaysia, on the other hand, engages in the promotion of Islamic cul ture and heritage to help buil d a more tolerant and harmonious society. L ast, but not least, K ompleks Il mu Sharifah R okiah embodies the spirit of the foundation i n promoting excellence in education, health, and welfare. A gain, the poor is the target group in order to help them to have a better future.

T he A lbukhary F oundation can be traced back to Bukhary Sdn B hd, a company founded by S yed Mokhtar A lbukhary in 1974, when he contributed half of his income to 15 needy fami lies i n his village. In 1980s, S yed Mokhtar consoli dated his busi nesses, and moved from A lor Setar, his hometown, to K uala L umpur where he had obtained trading and manufacturing contracts. In the 1990s, when Malaysia was intensifying its industrializati on programs, S yed Mokhtar managed to secure several mega projects such as J ohor Port, Port of T anjung Pelepas, Malakoff, and B ernas. In 1996, S yed Mokhtar founded A lbukhary F oundation to formalize hi s ever-expanding charitable activities.

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T able 1. C ontr ibutions A ccor ding to D iffer ent C ategor ies fr om 2011-2013

Y ear R eligion

Health,

W elfare

Social and

Sports

E ducation C ulture International T otal

2011 865,900 17,561,032 21,411,749 2,000,000 750,000 42,588,681

2012 4,161,071 6,650,595 14,871,099 2,000,000 - 27,682,765

2013 4,386,060 41,199,494 6,396,843 170,000 - 52,152,397

In the education sphere, the F oundati on greatest contribution is the A lbukhary T uiti on Program. It is a nati onwide free tuition program to assist underperforming Malaysian secondary students pass their final year examination. A network of 200 tuition centres were created across the country helping more than 80,000 students from 500 schools mostl y in rural areas. T he program which comprised of three compul sory subjects, E nglish, mathematics, and science, was designed exclusivel y for poor rural students classified by their teachers as ‘ borderline’ or ‘ underachievers’. T hese student attended remedial classes every day after school.

T he tuition program was proven to be a success as students achieved exami nation results well above the national average. It gave the opportunity to students who were once considered failures to realize their potential. T he most notable success was the performance of students from a hi gh school in remote area in S arawak, where for the first time in its history, students qualified to enter F orm S ix, the pre-requi site for entrance to public universities.

T he following is the list of the F oundation’s additi onal involvement in the area of educati on (A lbukhary F oundation, 2012):

1. School Uniform D onati on Program

2. L angkawi Project. A comprehensi ve campaign launched by the Malaysi an C hinese association in 1993 to i mprove the standard of education in rural areas. 3. J awi R eading Program and E ducational C olumn

4. C onstruction of T ower B lock of the W awasan Open Uni versity

5. F inancial contributi on for the construction of permanent campus of U niversiti T unku A bdul R ahman ( UT A R ) in K ampar, Perak

6. A sian Institute of Medicine, S cience and T echnol ogy ( A IMST ) 7. D arul Uloom Islamic A cademy of B risbane

8. Sarajevo S chool of Scinece and T echnology 9. Upgrading boardi ng school in T aulihawa, Nepal

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T ürki ye İslam İktisadı D ergi si, C ilt 4, S ayı 1, Şubat 2017, ss. 1-29

9 F igur e 1. S our ces of F unds for A lbuk har y F oundation

W ith regards to involvement in religious acti vities, the A l bukhary F oundation is engaged in constructi on of mosques and surau (musolla) in new townships, commercial centres, and residential areas throughout Malaysia. T he F oundation has built more than 20 mosques to meet the needs of the Muslims in the country. In addition to constructing new mosques, the F oundation is al so involved in renovating and upgrading older mosques. T he second renovation of Masjid Negara or the National Mosques in 2003 is a notable example. Masjid Negara is the official venue of national Islamic events, and as the first national mosque in Malaysia, it is a symbolic structure confirming Islam as the official reli gi on of the country. T he A l bukhary F oundation sponsored a three- year project carryi ng out major renovation and upgrading of the Mosque facilities from 2003 to 2005.

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10 populati on li ving in the city. T he renovated mosques has a capacity for 2,000 worshi ppers. In India, the F oundati on responded to an appeal by the Muslim community in K erala to rebuild two mosques that were in the state of disrepair.

T able 2. Pilgr ims Sponsor ed by the A lbuk har y F oundation

Y ear No. of P ilgr ims E xpenses (in R M )

2000 199 1,832,269.32

2001 59 587,594.32

2002 50 472,250.00

2003 48 442,150.00

2004 44 416,880.00

2005 50 472,250.00

2006 38 359,100.00

2007 40 377,800.00

2008 44 415,580.00

2009 50 499,000.00

2010 50 499,000.00

2011 50 554,000.00

2012 50 534,000.00

2013 722 7,461,873.64

Source: Mohd Nasir Daud, Director, A lbukhary F oundation

A nother unique activities undertaken by the A lbukhary F oundation is to sponsor the poor to perform Hajj or pil grimage to Makkah. A s Hajj is the fifth of the five pillars of Islam, the founder of the A lbukhary F oundation has always been sympathetic to the predicament of the poor Muslims who are not able to bear the hi gh costs of travelling to perform Hajj. W orking in tandem with T abung Haji, or the Pilgrims F und B oard of Malaysia, which organizes Hajj pi lgrimages for Musli ms in Malaysia, the F oundation sponsors elderl y poor Musli ms who have never performed Hajj to realize their life-long desire to complete the five pillars of Islam. T able 2 shows that as at 2012, the F oundation had helped 722 pilgrims travel from Malaysia to Makkah to perform their Hajj with the total cost of R M7.46 million.

In the area of health, welfare, sports, and culture, the F oundation has made its name known through its various activities. A mong the contri buti ons made by the F oundation in these areas are ( A lbukhary F oundation, 2012) :

1. C onstructing the head office of the H eart F oundation of Malaysia in K uala L umpur

2. E stablishing hemodial ysi s centres i n the states of Perlis and J ohor to serve the needs of kidney patients

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11 for traini ng programs to improve the ski lls of the poor

4. F inancial contributi on to Heritage F und

5. F inancial contributi on to i mprove facilities at T aman T asik Perdana 6. C ontribution to Malaysian C ancer R esearch

7. B uilding old folk homes in Penang to accommodate elderl y persons, mainl y the hard core poor or abandoned by famil y members

8. R ehabilitati on program i n refugee camps in Peshawar

9. C onstruction of a building to serve as a madrasah in K ozarac, B osnia 10. D onation to earthquake victims in S ichuan, C hina

11. D isaster R elief and A lbukhary R ehabilitation C antre, B haravat C amp, Iran 12. A lbukhary Orphanage Program, A ceh, Indonesia

13. S aidi na A bubakar Hospital, K ampala, U ganda. T he hospital specializes i n HIV /A ID S treatments

4.1.2. I slamic A r ts M useum M alay sia

T he A lbukhary F oundation’s Islamic A rts Museum Malaysia was established i n 1998 to enhance the knowledge of Malaysians of the artistic heritage of Islamic civilization and its contribution to the world. T he museum’s collection highli ghts the diversity of the Muslim worl d traversing over 13 centuries and more than 100 countries. T he Islamic A rts Museum Malaysia has achieved a promi nent status in just a short period of time. In 2003, the museum won IR C IC A (R esearch C entre for Islamic History, A rt and C ulture, based in Istanbul, T urkey) A ward as a remarkable centre of learning and research aimed at protecting and conserving the history, arts, and cultural heritage of the Islamic world. In the same year, the museum received the Montblanc A rts & Patronage A ward from the Paris –based Montblanc C ultural F oundati on honouring those who support and dedicate ti me, energy, and money for the arts to thrive and flourish.

In addi tion to the vast collecti ons of Islamic arts, the museum houses Scholar’s L i brary to support the museum as a centre for the study of Islamic arts, culture, and civilization. It has a collecti on of more than 10,000 items relating to the literary heritage of Islamic art and architecture. T he L ibrary al so aims to become a centre for the study and documentation of Malay manuscript research by provi ding users with access and materials concerning the manuscri pt studies.

Moreover, the L ibrary has a S pecial C ollections section consisting of rare books, out-of print material, collectors’editions, prints, photographs, and audi o-visuals. A mong the influential works available at the S pecial C ollections are Owen J ones’s P lans, E levations, Sections and Details of the Alhambra ( 1842-25) , Prisse d’A vesness’s L a D ecoration Arabe ( 1874) A rthur Pope’s A Survey of Persian Arts, F rederick Saree’s Islamic Bookbindi ng and Grohmann’s History of Islamic Books. Other facilities available at the are C hildren’s L ibrary and Musuem S hop. In addition, educati onal programs made available to visitors are guided tours, gallery programs, workshops and seminars.

4.1.3. Shar ifah R ok i ah K nowledge C omplex

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12 A lbukhary Internati onal University, a private waqf university. Nearby the University are health and welfare facilities for the poor, disabled, sick, and the elderly. Other facilities available to the public are mosques, a community educati on centre, residences, and a shopping mall.

4.1.4. E ndowments and A wards

In addition to the above three core activities, the A l bukhary F oundation has given several major endowments and awards to local and international organizations. A lbukhary C hair was set up in 2003 between the F oundation and the F aculty of A rchitecture and E nvironmental Desi gn, International Islamic U ni versity to promote Islamic culture and heritage. T he C hair i s entrusted to organize programs and conduct research to increase the knowl edge and understanding of Islamic arts and culture.

A t the international level, the F oundati on signed an agreement with the L ondon S chool of E conomics in 2009 to award a grant for a fellowshi p on International A ffairs in S outh E ast A sia. Moreover, two major endowments; D r. Mahathir Mohamad International F ell owship, and A lbukhary F ellowship for the Study of Islam in S outheast A sia were gi ven to Oxford C entre for Islamic Studies.

4.2. W aqaf A n-Nur C or por ation B er had, M al aysia

W aqaf A n-Nur C orporation ( W A NC orp) is a L imited G uarantee C ompany. It was establ ished on 25 October 2000 to manage assets and shares of J ohor C orporation4 ( J C orp) which have been transferred to them as waqaf assets. A memorandum of understanding ( MOU) was made between J C orp and Islamic R eli gious C ouncil of J ohor on 4 D ecember 2009 whereby the J ohor Islamic R eligious C ouncil has agreed to appoint W A NC orp to act as a special Mutawalli to manage shares and assets which have been made waqaf assets by J C orp and transferred to W A NC orp ( B orham, 2011). In the MOU, the Mufti of J ohor and his D eputy, the D irector General of J ohor Islamic R eligious C ouncil, and executives from J ohor Islamic R eligious C ouncil who were in charge of awqaf were made directors of W A NC orp while some selected executives from J C orp were appointed as mutawallis.

On 3 A ugust 2006, J C orp announced that R M200 mill ion of the company’s shares were given away as waqaf assets and transferred these shares to W A NC orp ( W aqaf A n-Nur C orporation, 2008). T hese shares were taken from J C orp’s public listed subsidiaries consisting of 12.35 million unit shares in K ulim Malaysia B hd, 18.60 million unit shares in K PJ Healthcare B hd, and 4.32 million unit shares in J ohor L and B hd. On 29 J une 2009, W A NC orp had used the istibdal princi ple to substitute waqaf share from J ohor L and B hd with share from A l-‘ A qar K PJ R E IT since J ohor L and B hd. was no longer listed i n the Malaysian B ourse. A s at 31 D ecember 2014, J C orp held 49 percent equity interest in A l-‘ A qar K PJ R E IT and as such, the latter’s financial statements were consolidated directl y with the corporation (J C orp A nnual R eport, 2014, page 136).

4

J C orp was formerly known as J ohor E conomic D evelopment C orporation. It was established by

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13 W A NC orp continues to play the role as the Maukuf Alaihi of shares and other forms of company securities collectivel y all ocated into waqaf. A s a corporate waqaf entity, W A NC orp stri ves to achieve the foll owing objecti ves:

i. Incorporating Islamic val ues in the management and administration of J C orp and its subsidiary companies.

ii. Undertaking research on contemporary approach and providing policy recommendati ons in making J C orp an Islamic corporate entity.

iii. C oordinating and managi ng the operation of W aqaf A n-Nur C linics to ensure that the objective of providi ng affordable health care and dial ysis service to the poor is realized.

i v. Planning and coordinating Islamic acti vities and i ncorporating Islamic val ues in J C orp and its group of companies.

v. A cting as the Secretariat for Mosque C ommittee and coordinating the management of mosques which bel ong to J C orp.

vi. T o be a main centre of reference for business management from Islamic perspecti ve.

A ll income earned by W A NC orp i s declared as di vidend. In terms of distribution of benefits, 70% of the benefit goes back to J C orp for reinvestment and human capital development, 25% goes to W A NC orp for F isabilillah and 5% is distributed to Islamic R eligi ous C ouncil of J ohor. T he idea behind this 70:25:5 formula and J C orp receiving bulk of the dividend is that the core contributor ( J C orp) to the awqaf must continue to grow to enable it to contribute more of its assets to awqaf in the future. F or the distribution of benefits under F isabilillah, it has been used to fund charity and social works, human capital development, and for treatment of sick patients.

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14 with dial ysis machines to cater the needs of patients at subsidized rates. In some cases, for deserving patients, the services are gi ven free of charge.

B esides operating waqaf clinics, W A NC orp is also involved in management of mosques and development of waqaf land. A s of 2014, W A NC orp is managing 5 mosques and 2 Islamic schools as well as devel oping a piece of land for to be used as orphanage. C urrentl y, Masji d A n-Nur B andar D ato’ Onn will be the sixth mosque being built. It is expected to be in operation by the mi ddle of 2015. W ith respect to socio-economi c development, W A NC orp has set up a fund called W aqaf B usiness F und to give microcredit to small business using qardul hasan concept. A t the end of 2014, W A NC orp has disbursed monetary assi stance amounting to R M526,800 microcredit loans gi ven to 292 micro-entrepreneurs (J C orp A nnual R eport, 2014 p. 80) .

On the humanitarian side, W A NC orp has established waqaf brigade to provide emergency and relief works for victi ms of earthquake, flood, tsunami, etc. In 2011, a total of R M127,414 has been channelled to provi de relief for victims of natural disasters. Meanwhile, in A ugust 2014 and D ecember 2014, waqaf brigade lent a helping hand i n dispatching aid to storm victims i n Segamat and flood victims in K elantan, respectivel y.

T able 3. D isbur sement of B enefits

2010 2011 2012

B eneficiar ies/A ctivities ( A mount in R M)

I. R einvestment in J C orp (70%) 10,297,744 28,650,000 36,270,000

II. F isabilillah ( 25%) 866,635 930,218 3,460,420

a. C harity and health services 192,027 132,000 509,000

b. C ommunity programs held at

mosques

20,000 25,000

c. C onstruction of mosques, suraus,

and Islamic centre

223,825 647,083

d. C ommunity service,

orphans, and other C S R

activities

439,244 2,088,117

e. E ntrepreneurship and

human capital development

35,000 74,116 1,312,303

f. Special projects

i. Orang A sli 41,034 60,000

ii. Imam B ukhari T heater 659,608

III. J ohor Islamic R eligious C ouncil, MA IJ

( 5%)

380,000 718,076 2,861,700

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15 T able 3 shows details of distributi on of benefits in 2010 until 2012 according to 70:25:5 formula as agreed between J ohor C orporation and J ohor Islamic R eligious C ouncil in 2006. In general, it can be seen from T able 1 that disbursement of proceeds to the three categories of beneficiaries i ncreased significantl y from 2010 to 2012. T he amount rei nvested i n J C orp in 2011, for example, is more than doubled ( R M28.65 million) compared to that of in 2010 ( R M10.30 mi lli on) . In 2012, the amount reinvested increased steadil y to R M36.27 million. Proceeds allocated for F isabilillah has also increased rapidl y from R M0.93 million i n 2011 to R M3.46 milli on in 2012. F urthermore, the beneficiaries under the category of F i sabilillah have also been expanded from 3 subcategories in 2010 to 6 subcategories in 2011 so that the all ocation can cover more activities. It is al so shown i n T able 1 that the amount gi ven to MA IJ has also increased significantl y from onl y R M0.38 mi lli on in 2010 to R M2.86 million in 2012.

Until 31 D ecember 2014, a total of R M3.51 million has been disbursed to these three categories. T he first category receives R M1.31 million and it i ncludes charity and health services, maintenance of the mosques, communi ty programs at the mosques, community service, orphans and other C S R acti vities. T he second category which provi des assistance to entrepreneurship programs and human capital development recei ves R M720,00 while special projects which falls under the third category receives R M1.48 million (W aqaf A n-Nur C orporation, 2014 A nnual R eport, pages 37- 41).

4.3. T he H umanitar i an R elief F oundation ( I H H F oundation)

T he Humanitarian R elief F oundati on ( IHH) (İnsan Hak ve Hürri yetleri ve İnsani Y ardım V akfı) , was established with a purpose of deli vering humanitarian aid to make any effort to prevent vi olation of basic rights of people who have been oppressed, victimized, fallen into any natural disasters, calamities and wars, as well as to provi de shelter and food to homeless for those who are i n hunger in any part of the world. A ctivities of the foundati on began as voluntary efforts in 1992 and it was institutionalized in 1995. F ehmi B ülent Y ıldırım and Mahmut Savaş are the founders of the foundation. T he foundati on became well known to the entire world after what happened to the Mavi Marmara freedom ship project which was involved in an ai d convoy intended to breach the blockade of Gaza i n 2010. Nine aid volunteers were killed during a clash between the volunteers and the Israeli forces that raided the vessel which was on its way to Gaza ( https://en.wiki pedia.org/wiki/IHH T urkish_ NGO).

In order to achieve its determined goal s, the foundati on is permitted and authorized by the article 48 of the T urki sh C i vil C ode. T he foundation has also bodies to run and supervi se it. T hese include B oard of T rustees, E xecuti ve B oard, A uditing B oard, H igher A dvisory C ouncil ( http://www.ihh.org.tr/en).

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16 A n interview was conducted on 30th A ugust 2014 with Y avuz Dede who is a pharmacist, and currentl y the V ice C hairman of the foundation, member of the B oard of T rustee and also member of the B oard of the D irectors, emphasised that the foundation until today have reached Musli ms in 140 countries where they ful ly operate now. B esides its short term project, the foundation has also long term projects which include schools, orphanages, professi onal courses, mosques, cli nics, wells for drinki ng water, as well as cultural projects. B asicall y, these projects increase well-being of social-economic conditions of the society. In terms of human rights, the F oundation al so offers some projects which support the rights of the victims to be heard by the public. T his can be done through symposium, ci vil rall y or protest on the i nternational level collaborating with international organizati ons by preparing reports and sharing these reports with national or international media outlets, voicing out the issues to be the main agenda of the world.

Mr. D ede explained that the traditi on of foundation i n T urkey is well rooted and it needs a strong financial support to establi sh a foundation. T he money collected is pooled in a specific account in order to achieve the determined goals. T he money is also invested and the returns are used finance the activities carried out by the foundation. T he foundati on recei ves very little support from the government. T he support can be the form of a collaboration or financial backi ng.

A s mentioned above, currentl y the foundation has been working within 140 countries. T he reason behind this success is credited to the experience that the foundation gained since 22 years of its establishment. T he foundation carries out collaborati on work with many people and organizations from different part of the world. C urrentl y it employs 290 full time workers, and their pay i s given by the foundation according to the Islamic law which all ows the foundation to use up to 20% of the donation for services as zakat portion. A s zakat receivers are di vided i nto 8 categories, 12.5% of the donation is used by the foundati on based on thi s categories.

T he foundation also provides scholarship for all types of students from the l owest to the highest level of education, including undergraduate and post-postgraduate levels. In terms of financial management, the foundation has its own centre to finance their activities as well as manage it. W ith regards to relationship with the government, Mr. D ede said that the T urkish government tries to ease procedures and corporates with them efficientl y. In T urkey, foundati ons are governed by the G eneral D irectorate of F oundations, which i s officially recognized organizati on. A s other foundations, the IHH is also accountable to the General D irectorate of F oundati ons and therefore, all foundati ons are responsible to gi ve report to the D irectorate about every activities that the foundati on does.

A lthough T urkish government provi des all kinds of support, there are still some obstacles. One of the most significant obstacles that the foundation had encountered is i n the official deal ings. Mr. D ede sai d that, at some point, rules and regulations are not sufficient to ease the activities of the foundation domesticall y or internationall y.

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17 resources available. In this case, the IHH foundation has different sources of income. Its sources of income in 2014 is shown in T able 4.

Its main source of i ncome derived from rent, income benefits, exchange income, donati ons and other incomes. A ll amounts are shown in T urkish L ira ( Y T L ) . A ccordingl y, the highest amount of income achieved from donations is 407.496.591,90 ( Y T L ). T he l owest income is derived from rental activities with 258.772,88 ( Y T L ) in 2014. Other incomes equal 772.104,37 ( Y T L ) ; i ncome benefits equals 925.419,50 (Y T L ) and exchange income equals 1.948.049,36 ( Y T L ) i n 2014. T he total amount of i ncome sources was 411.400.938,01 ( Y T L ) in 2014.

Source: “G elir- Gider tablosu”, ihh.org.tr. A ccessed May 20, 2016.

http://www.ihh.org.tr/tr/main/pages/gelir-gider-tablosu/86

T able 5 T he D istr ibution of E xpenditur e in 2014

A ctivities E xpenditur e ( in Y T L )

E ducation 8.837.451,02

Health 15.834.802,71

Social activities 298.901.706,39

C ultural activities 4.288.406,50

A ctivity expenditures 35.381.783,21

Other expenditures 1.477.021,56

General management expenditures 8.068.181,05

T otal 372.789.352,44

Source: “G elir-Gider tablosu”, ihh.org.tr. A ccessed May 25, 2016.

http://www.ihh.org.tr/tr/main/pages/gelir- gider-tablosu/86

5

Y T L refers to Y eni T urk L irasi, the currency of T urkey. T able 4. T he Sour ces of I ncome in 2014

A ctivities I ncome ( in Y T L )5

R ent 258.772,88

Other incomes 772.104,37

Income benefits 925.419,50

E xchange income 1.948.049,36

D onations 407.496.591,90

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18 A ccording to T able 5, the distribution of expenditure ( 2014) includes education, health, social acti vities, cultural activities, activity expenditures, other expenditures and general management expenditures. Its total expenditure was 372.789.352,44 (Y T L ) for 2014. T he highest expenditure derived from social activities, which is 298.901.706,39 ( Y T L ) and the mi nimum expenditure i s for other expenditure with 1.477.021,56 (Y T L ) . T he next highest expenditure after social activities i s activity expenditure with 35.381.783,21 ( Y T L ) . Other activities expenses from education expenditure was 8.837.451,02 (Y T L ) , while general management expenditure reached 8.068.181,05 and health expenditure 15.834.802,71 ( Y T L ). It shows that IHH foundation i ncurred the highest expense from social activities.

F inall y, waqf institutions should have specific code of conducts to follow in order to be successful and therefore the IHH foundati on is foll owing the these codes: L eading in its field; B eing transparent; A cting as an arbitrator; V oicing problems of the disadvantaged; B eing a bridge between societies; Making best use of entrustments; C ontributing to the spread of justice and rule of law; E mphasizing service rather than brand or title; C ontributing to the reconstruction of a just world free from expl oitati on; Helping any i ndi vidual and community irrespective of their religion, language or race (http://www.ihh.org.tr/en).

4.4. D iyanet V ak fi F oundation

T he D iyanet V akfi ( T he T urkish R eligious F oundati on) is one of the most significant public institutions in T urkey. It employs approximatel y more than one hundred thousand personnel and has central as well as provincial organs. T he president, vice president, H igh C ommissi on of R eligi ous A ffairs, Qur’an V erification C ommission, and D epartments of R eli gi ous Services, R eli gious E ducation, Hajj [ pil grimage] , R eligi ous Publicati ons and F oreign A ffairs compose the central organs, whi le the provi ncial organs consist of the provi nce and county muftis’ offices, educational centres, and Qur’an courses.6 On the other hand, the duties that D iyanet carries out today i s one of the functi ons of the institute of sheikh-ul-Islam in Ottoman state. T he new T urkish state, after the opening of the T urki sh G rand National A ssembl y on A pril 23, 1920, establ ished a ministry entitled Şeriye ve E vkaf V ekaleti to carry out religious services. L ater, on March 3, 1924, the D iyanet took over the duties of this ministry. T he D iyanet appeared in a constitutional text for the first time i n 1961. A fter that time, a law was promulgated to regulate the D iyanet’s sphere of duties and authority.7

T he T urkish D iyanet F oundation, which was founded i n 1975 and has i ts headquarters in A nkara, is a juristic enti ty under the supervisi on of the General D irectorate of F oundations. T he organs of the T urkish D iyanet F oundation ( hereafter T D F ) can be categorized under four main headings: the G eneral A ssembl y, B oard of T rustees, A udi ting C ommittee, and D irectorate General. T he B oard of T rustees elects the F oundation’s General D irector either from among its own members or from outside. T he

6

See on the D iyanet’s duties: www.diyanet.gov.tr.; and waqf: www.D iyanetvakfi.org.tr; T he

Muslim W orld 98:2–3 (2008) ; Şenol K orkut, T he D iyanet of T urkey and Its A ctivities in E urasia

after the C old W ar, Acta Slavica Iaponica, T omus 28, pp. 117‒139.

7

Şenol K orkut, T he D iyanet of T urkey and Its A ctivities in E urasia after the C old W ar, Acta

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19 G eneral D irector executes the decisions made by the B oard of T rustees. T he General D irectorate consists of the Office of L egal C onsul tancy, the D epartment of Inspection C ommittee, the Personnel and A dministrative D irectorate, the D irectorate of F oundation A ccounti ng, D irectorate of Hajj and U mrah A ccounting, Directorate of C onstructi on and R eal E state, the D irectorate of E ducati on, C ulture and S ocial Services, the F oreign R elations D irectorate, the D irectorate of S upplies and the D irectorate of Information Processing C entre. A nother organ of the F oundation elected for two years is the A uditing C ommittee. T his committee audits the functions and accounts of the F oundation on behalf of the General A ssembl y. Uni versity Malaysia ( IIU M) as well as one of the founders of Malaysia A l umni C hapter. He emphasised that the D iyanet F oundati on has all kind of humanitarian acti vities incl uding H igher E ducati on. T he Presidency of religious A ffairs has 976 offices country wide. T here is a research centre called the C enter for Islamic R esearch, conducting research activities and publishing its work which incl udes Islamic E ncyclopaedia. T he foundati on runs 29 Mayıs University as a Waqf Universi ty and it organizes the Haj and Umrah packages. Mustafa highl ighted that the foundation cooperates with different offices of the government as part of their projects, and these projects are mostl y co-sponsored by their office and the government office. F or i nstance, in order to refurbi sh and rebuild old Ottoman historical architectures, the foundati on cooperates with T urki sh C ooperati on and C oordination A gency ( T İK A ) .

A s of 2007, the F oundation had branches in 914 cities and districts. T he branches of the F oundation abroad follow the same structure as those withi n the borders of T urkey. T D F branches abroad are not new branches directl y linked to the F oundation but rather independent organizations founded according to the regulati ons of the country in which they are l ocated. R eligious counsellors and attachés in these countries are the heads of the F oundations. A few of these are: T he H olland R eligious F oundation in H ol land ( 1982) , T he B elgium T urki sh Islam R eligi ous F oundation in B elgi um ( 1982) , T he T urkish Islam Uni on of R eligion in C ologne and B erlin, G ermany ( 1982 and 1985), T he D enmark T urkish R el igious F oundation in D enmark (1985) , T he T urki sh Islam Union of R eligion in F rance (1986) , T he S witzerland T urkish R eligious F oundation in S witzerland (1987) , and T he A ustria T urkish Islam Union of C ulture and S ocial A id in A ustria (1991) .

9

T hese F oundations operate like T urkish cul tural centres. T hey organize cooking and handicraft classes, offer language and vocational courses, and teach basic religious facts to T urki sh people living in those countries.

T he foundati on provides 485 mufti offices and 4,325 personnel houses throughout the country, the number of Qur’anic learning centres owned by the F oundation was 1,666 as of 2007 and its budget was around U SD 922 milli on. In its first 20 years, the F oundation provided the needy families with medicine, paid for their hospital expenditures, and supplied medici ne and medical equipment to healthcare organizations

8

Ömer T uran, T he T urkish Diyanet F oundation The Muslim World, V olume:98, A pril/J uly 2008,

p. 370; http://www.diyanetvakfi.org.tr/ ( accessed 28 J uly 2015) 9

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20 in which 9,472,505 people benefited from social aid provided by the T D F i n its own medical centres and hospital s. In terms of educati on, the T D F formed a private education unit i n 1994. In this framework, T D F i mprove the quality of education through providing financial aid to various educational facilities, especiall y to the theol ogy faculties of the various T urkish universities and Imam-Hatip High Schools. In additi on, in ki nd and financial aid is offered to non- T urkish students, especiall y to ones who come from T urkic C entral A sian R epublics and other related communities. F oundati on, students are accommodated i n 240 hostels and boarding houses that are opened by branch offices. T he ownership of all these hostels and boarding houses belong to the F oundation.

10

T he foundati on deals with a project of establishing E ncyclopaedia of Islam started in 1983 and the first volume of it was published in 1988. T his is a completel y original work and has 16,915 items. T he thirty second volume of the E ncyclopaedia contains contributi ons from 2000 authors from T urkey and all over the world. Its complete version is predicted to be about 40 vol umes and is the first of its kind.11

T he most important institution of the F oundati on in the field of science and culture is C entre for Islamic R esearch ( ISA M) . It was founded in Istanbul in 1988 to conduct scientific research, and publish books and academic papers, especiall y for those who are focusing on Islamic and E astern sciences and culture. T D F began sending students abroad to various presti gi ous universities for MA and PhD degrees in the fields of theol ogy, history, philosophy, sociology and other social sciences. C entre for Islamic R esearch is a very si gnificant research centre. It has a very impressi ve and efficient library which contains manuscripts as well as new books such as nativ e, foreign sources that are archived and documented in the centre. T here are 182,000 volumes of books, 2,720 types of periodicals, 17,000 files of documents, 4,340 reprints, and 19,144 microfilms in the Ottoman C ourt A rchives ( Seriyye), 411 microfiche and microfilm and 640 C D s in the library. ISA M has two periodicals besides publishing books under the following names: A cademic R esearch, C onference and S ymposium R eports, A nthologies and T ranslations, C ritical T ext Publicati ons and F undamental C ul tural S eries.

12

T he foundation provides all kinds of religious, spiritual and cultural support to T urkish citizens who mi grated to industrialized countries such as the U nited S tates, A ustralia, and W estern E uropean countries. A fter the col lapse of the E astern B l oc, many “T urkish R epublics” and Musli m societies have emerged. T herefore, the F oundation began to help them li ke Mongol ia, B osnia, Indonesia, T ataristan, Balkan and C aucasus areas. T urkey began to assist the Musli ms in these regions, responding to l ocal demands.

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21 A ustria, B elgium, B ulgaria, D enmark, F rance, the Netherlands, S weden, S witzerland, G reat B ritain, the R ussian F ederation, A zerbaijan, K azakhstan, K yrgyzstan, T urkmenistan, Macedonia, G eorgia, A lbania, K osov o, and the R epublic of Northern C yprus, and twenty- two reli gi ous attachés are in operati on, especiall y in Germany. In E urasia, onl y Nakhchi van and R omania have religious attachés from T urkey. T hese consultants and attachés also work together as presidents of NG Os and associations establ ished by the D iyanet in G ermany, A ustria, Bel gi um, D enmark, F rance, and the Netherlands.

13

F urthermore, women’s branch of the T D F was established in order to spread correct religious understanding and prevent the exploitati on of women through religion, and to strengthen women both culturall y and economicall y. It has more than 5,000 members with professional disci pline. T hey provide courses that offer professional certificates from the Mini stry of E ducati on in areas such as reading-writing lessons, wood painting, various kinds of T urkish handicrafts and tail oring. W omen are mostly involved in art and culture, as foundation offers courses on classical decorative T urkish arts like marbl ing ( E bru) and tezhip, painti ng, T urkish music. B esides that, language courses are also offered li ke T urkish, E nglish, Ottoman T urkish and A rabic. S ocial events are also organized on special days and weeks such as International W omen’s D ay, Mother’s Day, T he E lderly W eek, and Martyrs’ W eek among others. T hese kind of celebrations help the society to be more conscious and socialize with each other to increase the awareness of culture and customs.

T he F oundation are involved i n business practices from various areas ranging from nutriti on to transportation; and from constructi on to cleaning. F or example, GINT A S and T E MSA S were established. A s illustrated in T able 6, activiti es column indicates the types of activities performed by the F oundation and followed by the years column indicating the income gained for the year. A ll the stated figures are given in T urkish L ira, which is the currency in T he R epubl ic of T urkey. T he followi ng amounts appl y to headquarters as well as branches of the D iyanet F oundation.

13

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22

T able 6. Sour ces of I ncome ( Y ear s 2013, 2014 and 2015)

I ncome 2013 2014 2015

T otal income 404.038.020,61 584.713.253,35 632.080.029,34

E ndowments from

organisations and

institutions

2.203.868,63 - -

Other donations and

endowments

332.590.431,56 403.911.002,14 517.334.496,09

E conomic operating

revenues

5.641.847,06 4.295.282,46 7.299.418,02

R eal estate revenues 32.713.426,21 91.358.050,92 41.938.091,16

Publication 290.735,23 268.403,04 -

Other incomes 30.597.711,92 84.880.514,79 65.508.024,07

T OT A L

( T L =T urkish L ira)

404.038.020,61 584.713.253,35 632.080.029,34

Source:T ürkiye D iyanet V akfi, Diyanetvakfi.org.tr A ccessed J ul.14,2016

http://www.diyanetvakfi.org.tr/tr-T R

/site/icerik/tdv-genel-merkez-ve-subeler-gelir-ve-giderleri-1049

A ccording to T able 6, the total income of D i yanet F oundation for 2013, 2014 and 2015 is 404.038.020,61 T L ; 584.713.253,35 T L and 632.080.029,34 T L . T he income significantl y increased yearl y with a total difference from 2013 to 2016 is 228.042.008,70 T L . Income of endowments from organisati ons and institutions (2014 and 2015) , as well as publication i ncome, are not stated in T able 6.

A s for other donations and endowments, it was 332.590.431,56 T L in 2013 and increased to 403.911.002,14 T L in 2014 and 517.334.496,09 T L in 2015. F rom the point of view of the F oundation, it can be considered a significant increase. R egarding real estate revenues, it reached 32.713.426,21 T L in 2013 and was the highest in 201 with 91.358.050,92 T L .

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23

T able 7. T he D istr ibution of E xpenses ( Y ear s 2013, 2014 and 2015)

E xpenditur e 2013 2014 2015

T otal E xpenditure 314.074.109,84 383.497.096,79 482.638.242,10

General management

expenses

31.618.618,84 38.695.969,07 53.182.579,32

Purposeful expenses 282.455.491,00 344.801.127,73 429.455.662,77

Humanitarian aids and

socialservices

55.846.063,44 16.349.776,35 22.664.495,52

C haritable and religious

services

164.832.796,79 138.777.767,06 164.128.029,07

E ducational and research

services

32.801.395,46 74.403.801,68 53.045.608,20

Overseas religious,

charitable and

educational services

28.975.235,31 95.624.725,42 159.837.863,30

Other purposeful services - 19.645.057,22 29.779.666,69

Surplus Income 89.963.910,77 201.216.156,55 149.441.787,25

T OT A L

( T L =T urkish L ira)

404.038.020,61 584.713.253,35 632.080.029,34

Source: T ürkiye D iyanet V akfi, Diyanetvakfi.org.tr A ccessed J ul.16,2016

http://www.diyanetvakfi.org.tr/tr-T R /site/iceri k/tdv-genel-merkez-subeler- gelir- ve-giderleri- 1049

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24 G eneral management expenses and purposeful expenses increased significantl y withi n the given years. However, humanitarian aid and social services expenses decreased yearly with 55.846.063,44 T L , 16.349.776,35 T L and 22.664.495,52 T L . C haritable and religious services expenses were 164.832.796,79 T L in 2013 and decreased in 2014 to 138.777.767,06 T L . It increased in 2015 to 164.128.029,07 T L .

T he D iyanet F oundati on shows substantial support to education with an expenditure of 32.801.395,46 T L i n 2013, 74.403.801,68 T L in 2014 and 53.045.608,20 T L in 2015. T his increase in educati onal and research services indicates its focus on this sector.

Overseas reli gi ous, charitable and educati onal services increased from 28.975.235,31 T L to 95.624.725,42 T L in 2013 and 2014 respectively. It increased to 159.837.863,30 T L in 2015. Other purposeful services are not indicated in 2013 but reached 19.645.057,22 T L and 29.779.666,69 T L in 2014 and 2015.d in 1983 and 1989, respectivel y. K OMA S , another F oundati on’s company, deals with the marketi ng of computers and office supplies, export/import acti vities and the establishment of nationwide modern stores was established i n 1990. D IV A NT A S was established in 1993 to market the F oundati on’s publicati ons and V E T A S was establ ished as an education company i n 1994 in order to establish and manage educational instituti ons from pre-school to high pre-school.

14

T he F oundation also organized the W eek of the B lessed B irth of the Prophet Muhammad ( pbuh) . T he birthday of the Prophet Muhammad (pbuh) was first celebrated by the Sel juks during the reign of E rbil Muzafferuddin G okboru ( 1154–1232) . Since then, the celebration of the Prophet Muhammad’s ( pbuh) birthday i n the custom of Mawlid ceremonies has become a tradition.15

4.5. H ak y ol F oundation

Hakyol E ducation S olidarity and F riendship F oundation was established in the leadership of intellectual and man of heart, the late Professor D r. Mahmut E s'ad C oşan in 1980. It was founded with specific objectives to be achieved through bringi ng up and educating people at both the l ocal and international levels, with universal Islamic val ues such as believi ng in fairness, equity and justice; to provide all kinds of economic and social ai ds to those in need of assistance; to manifest acti vities without discrimination to increase cooperation and to develop peace, l ove, brotherhood, unity and soli darity spirit between people. T he focal point of developing the society is education, and with that reason, the foundation focuses on education in order to train Musli m generations physicall y, spirituall y and mentall y. Hence, comprehensi ve contributions carried out for the increase of educati onal level, such as numerous public/private schools, cultural centres, libraries, mosques are constructed and operated in different parts of T urkey. C onferences, seminars, panels, open sessions, and competitions are organized in various areas including scientific, ideol ogical, cultural, health and art subjects. F urthermore, bulleti ns and magazines are published, book sales, national and religious celebration programs are organized. T he foundation is involved in reunion meetings, summer

14

Ömer T uran, ibid., 380.

15

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25 schools, cul tural and historical excursion, recreation and entertainment programs oriented towards introducing T urki sh and Islamic intellectual s. In addition to organizing all kinds of acti vities related to education, the foundation also provi des educati onal scholarships to many students to meet all their needs irrespective of their level of studying from primary to higher education.

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A n interview was conducted on 2 September 2014 with Hasan Pak, a L awyer and the C hairman of the Hakyol F oundation. Mr. Pak menti oned about the establ ishment of the foundation that waqf activities became a priority concern in 1980s due to the military coup which happened in early 1980s which caused the closure of many foundations. A ccording to Mr. Pak, in order to engage in community services and some other social activities, waqf is a necessity. In that term, Hakyol W aqf had delivered community services in almost every field starti ng from education, charity, health till provi ding the scholarshi ps for students to further their studies. It had delivered important services such as ensuring the financial assistance to the poor families, restoration of heritages, meeting with families and health scanning services. D uring that period, the number of waqf organizations was small. Hakyol had provided the leadership position for other waqfs to be establi shed. Hak yol led the way for other waqfs starting from waqf policies and sample activities that they had undertaken. A ccording to Mr. Pak, there are three factors that affect the process of the waqf organization to reach at this level; donated wealth, vision, and mission of the waqf. D efinitel y, the weal th that waqf organization received from donati on needs to be increased and developed in order for waqf to operate well and fulfil the responsibilities gi ven by the donors. T herefore, money received from donors are other sources of incomes are invested to ensure sustai nability.

Hakyol waqf has three important targets to fulfil and these are education, charity, and friendship. On the education ini tiative, students from kindergartens to higher level of educati on are granted with scholarship, and provi ded with accommodati on. H akyol al so organizes seminars, conferences and so on. B esides this, Hakyol waqf provi des regular payments for poor families, distributes meat for the needy people during E id al-A dha in several countries, incl uding Indonesia since 2009. T he F oundation has deli vered relief funds in both financial and in-kind aids for more than 36,000 families and al so protected 5,000 orphans. foundati on is an extension of Ittifak H oldi ng that has as a mission to ease the social burden of poor people or people in need. A lthough, the foundati on i s a very young organizati on, it has many activities especial ly helping Imam K hati b graduates. T he main objecti ve of

http://www.hakyol vakfi.org/en/hakkimizda.asp (accessed 28 J uly 2015) 17

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26 T he foundation gets support from the government from time to time to carry out its activities. T here are various kinds of donors, some people donate their money, others donates properties whi le those who have nothing to donate, donate their time. T he foundati on is built upon the different contributi ons of the people, which in turns, produce some greater benefits for the people in need. T his is the reason why the government and the foundation try to keep connected together. However, the government does its own work and have its own plans and strategy, and, on the other hand, foundations have their own strategy. G overnment has its own social responsibilities where social problems are specificall y taken care of by the government. T here are semi- government foundations that state uses to achieve social goals and objectives. In this kind of situations, foundation will step back i n order to give government space. If thi s social projects are not left in the hands of the government, then it would mean that government is at risk for abandoning its role.

F inall y Mr. A bdul lah emphasised that the activities of the foundation and non-governmental organizations which are based on volunteerism which has a great impact on the society. W hen someone with a rich spirit contributes to the society based on the iman ( faith) and sincerity, this kind of contributi ons help to develop the Muslim civilization. A lthough T IMA V has no great deal of financial resources, it is involved in many educational activities. T IMA V utilizes every si ngle penny that they have to the maximum. T his foundati on values their projects hi ghl y and works hard to make these projects successful ones.

5. C onclusion

T his study examines the role played by selected waqaf instituti ons to i mprove the socio-economic devel opment of Muslim ummah, the different activities and management style of waqaf instituti ons and the experiences of selected corporate waqaf entities i n Malaysia namel y A l-B ukhary F oundation, W aqaf A n-Nur C orporati on and four waqf entities in T urkey specifically IHH F oundation, D i yanet F oundation, Hakyal F oundation and T IMA V .

W aqaf institutions have been known to have the ability to contribute to the economy and could play an important role i n the socio-economic development of the Musl im society. A ccording to Hasan and A bdullah ( 2008) , waqaf property i n Malaysia, especiall y in the form of land is reported to be more than 32,000 acres and if these lands are invested and managed properly, they have the potentials to generate a steady stream of income that could benefit the Musli m society. However, as in many countries, waqaf instituti ons are not being given the proper attention, resulti ng in a vast amount of these properties bei ng i ll-managed. Many of the waqaf properties have immense commercial potentials, but are not being maintai ned properl y, resulti ng in these properties do not yield their greatest benefits to the society. A mong the factors identified include: legislative lacunae, administrative lapses, lack of political will, indifferent attitude of the management of the awqaf, and lack of honesty and integrity.