Scholars differ as to whether it is permissible to make a cash waqf or not.
Their opinions are centred around three principles which they claim ensure the validity of a waqf:
- A waqf must be perpetual.
- A waqf must not deplete.
- A waqf must not be movable.
According to the above principles, some scholars say that cash waqf is not permissible as it is counted as a movable object and it must be used to be beneficial. Furthermore, the depletion of cash is another reason why it cannot be turned into a waqf item.
Among the opponents of cash waqf there are Imam Abu Hanifa, most of the Shafiis , some Malikis and Hanbalis.
However, other scholars are of the opinion that it is perfectly acceptable to make cash waqf. Among them, there is Imam Muhammad who believes that it must be an acceptable customary practice, and Imam Bukhari is also inclined towards its permissibility. This is also the opinion of some contemporary scholars including the International Fiqh Academy of Jeddah. Their main argument is that there is not enough proof that demonstrates the prohibition of creating cash waqf.
And Allah knows best!
(Mufti) Billal Omarjee