Publication:
Factors Influencing Repeat Cash Waqf Contribution For Islamic Philanthropy

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Abstract

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

Description

Management & Accounting Review (MAR), [S.l.], v. 14, n. 2, p. 55-78, dec. 2015

Keywords

internal factors,, cash waqf,, Islamic social finance,, repeat cash waqf contribution,, Structural Equation Modelling (SEM)

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