Advantages And Disadvantages Of Waqf

Introduction
The term of waqf comes from Arabic word (waqafa) literally means to stop, prevent and detain. Definition of Waqf is the permanent dedication by a Muslim of the corpus of a valuable property to the ownership of Allah with a declaration of dedicating its usufruct perpetually for religious, charitable, or pious purposes as recognized by Shariah.
Waqf is divided into two types which are waqf ahli or family waqf where it is devoted to family members who have been appointed by waqif for religious, pious and charitable purposes and waqf khairi is categorized into public waqf for the purposes of public benefits such as mosque and quasi-public waqf for the purposes of a particular individual or group such as granting land for students of religious knowledge.
On the other hand, Waqf assets can be immovable (property or goods) or moveable, such cash waqf as long as it is valuable in Shariah and must be ‘ayn. Cash waqf is a waqf using cash collected in a trust fund under the management of Mutawalli who is entrusted to manage this waqf for the welfare and benefit of the ummah. The scholars of ancient times used the term waqf ad-darahim or waqf ad-dananir where they

Money is classified as ribawi items, so bank cannot impose any rate of return on the cash waqf that is given to the person as a capital business in order to avoid riba. The second issue is about perpetuity, where mudharabah return is unpredictable, so if any loss happen, which party will bear the loss? Is it from bank or cash waqf fund? While, the return amount of cash waqf from investment should always be more or same as the principal amount. Third issue that happened nowadays is the bank does not disclose on what and how the cash waqf fund is being managed, while the contributors want to know where the money they had waqf are being channeled