Push and pull factors influencing waqifs to contribute cash waqf to waqf institutions in Malaysia

Abstract

The paper is a preliminary investigation on the push and pulls factors for cash waqf contributions to waqf institutions in Malaysia. Based on Shariah interpretation, waqf means to hold a person's property to be benefited by others. A cash waqf is one of the methods for the Islamic Religious Council to gain financial resources. The development of cash waqf is essential for socio-economic development in order to create and develop a third sector distinct from the profit-motivated private sector and the authority-based public sector. The paper is based on the content analysis of the relevant literature in the field in order to develop a framework model to determine the critical success factors influencing cash waqf collection. The framework would help decision makers to design appropriate policies in utilizing awqaf collections from both contemporary and commercial perspectives to enhance socio-economic development of the ummah. As content analysis, seven push factors have been identified. These are affinity cause to donate; opportunism / perceived risk; ability of the Waqf Institution; integrity of the Waqf Institution; communication with stakeholders; reputation and obligation to donate (i.e.; wasiat). Seven pull factors have been identified viz. religious obligation; donating experience; trust on the Waqf Institution; trust propensity; benevolence (maslahah); familiarity with Waqf Institution in general; and access to cash waqf. The push and pull factors are treated as independent variables. Two main dependent variable have been identified viz. continue donating to the Waqf Institution and waqf collection. To make this study more viable and meaningful 5 moderating factors have been suggested.