Developing a comprehensive performance measurement system for waqf institutions

Summary page 1-2

 Purpose of paper: contribute to the literature on management of waqf institutions by

developing a contingency framework and outlining approaches that can be followed to
instigate a comprehensive performance measurement system (PMS)
 Third sector organizations – waqf institutions
 Effective PMS: promoting good governance and ethical management
 Ineffective current practise PMS: less standardized, does not cover its entire aspects of
performance as religious as well as voluntary organization, rely on financial reporting and
economic indicators, varies and desperately in need for a certain level of standardization,
ambit of measurement is limited to only key performance indicators, quality work culture
initiatives and remuneration related PMS
 Waqf has been recognised as one of the most crucial third sector institutions in the Islamic
heritage
 Perceived as a religious and highly influential charitable organization
 Voluntary relinquishing of the right of a disposal of an asset by its owner and the dedication
of its usufruct to several beneficiaries as a charitable gift
 Waqf as perpetual and voluntary charitable act when serves as a mechanism to strive for the
main objectives of an Islamic economic system
 Distribution of wealth
 The vehicle of financing Islam as a society
 Have made significant contributions in the construction of mosques that become the centre
of education, cultural and administration
 Reinforcing religious practices and sustaining the civilization of Muslim societies
 Actively contribute towards the development of education system and improvement of
social welfare through establishment of hospitals, libraries, orphanage
 Economy wide basis: contributes positively towards the expansion of domestic economy
through cultivating social enterprises becomes an effective poverty alleviation tool to reduce
income inequality
 Many waqf institutions find difficulty to assess their performance in a comprehensive
manner
 Covering larger aspects of waqf services such as growth, effectiveness, transparency and
sustainability
 Waqif: donor or funder of the waqf
 Certain restrictions of the use of waqf requiring extensive reporting to be provided by
mutawalli
 Mutawalli: waqf managers or operators
 A comprehensive PMS is highly crucial to ensure that the mutawalli properly discharge their
responsibility and are accountable in managing the waqf institutions
 Failure to effectively capture and assess the performance of waqf institutions possibly lead
to a decrease in the inflow of funds