Iwm

• Baitulmal


  An institution dealing with national treasury in the Islamic state, responsible for managing and supervising monetary policy

  
• Baitulmal played an important role as a supervisory of monetary policy in Islamic nation


  During the golden ages of Islamic civilization beginning from the first Islamic state founded by the Prophet until the Abbasiyah Empire
• Due to the imperialism of western powers into Muslim countries particularly after The Crescent War (1096-1258M), the scope and function of bay al-mal is just limited to manage waqf, zakat and property affairs of Muslim in the country
• Establishment of Baitulmal

  1. First view: The Prophet Muhammad (pbuh) established the institution after the battle of Badar and the first Mosque; Masjid Nabawi served as the center of collection and distribution of zakat and sadaqa (charity)

  2. Second view: It was narrated that a big amount of jizyah from Bahrain brought to Madinah and Rasulullah s.a.w. command to gather these properties at Masjid Nabawi
• Function of Baitulmal during the Prophet's era and Saidina Abu Bakar


  • Restricted to gather the loots and zakat collections, and simultaneously distributed to the beneficiaries
• Establishment of Baitulmal during the reign of Saidina Umar


  1. The department called bayt al-mal was founded to oversee and supervise the monetary policy in 6 Hijrah

  2. This bold initiative is essential in view of an increased of revenue in the form of loots, jizyah and zakat in the expanding area of Islamic Empire
• Umayyad (Umar Abd. Aziz) and Abbassid (Harun al-Rasyid) which rule the Islamic Empire for hundred years are also managing bayt al-mal efficiently
• Bayt al-mal revenue during Khalifah Harun al-Rashid; one of the great rulers of Abbasids, stand at 900 million dirham. The figure is equivalent to the current value of 1.3 trillion dirham
• Functions of Baitulmal


  • A central financial organization providing benefit to all community members and organizations based on Qur'anic guidelines and the example of Prophet Muhammad (pbuh)
  • Fiscal Policy
  • Monetary Agency

  
• Fiscal Policy of An Islamic State (During The Prophet)

  1. Bayt al-mal

  2. Revenues: Zakat, Ghanimah (Khums), Fai, Charity (Ad hoc funds)

  3. Expenditures: Simultaneously given to the beneficiaries, Expenses for the needy and fi sabilillah, Wayfarer, the poor, War, buy well etc., 8 asnaf, The Prophet expenses and others, Ransom, Buy weapons

  
• Management of Baitulmal during the Prophet and Saidina Abu Bakar


  • Based on the equilibrium whereby the revenue simultaneously given to the beneficiaries
  • The Prophet distributed the resources within three days
  • The Prophet assign zakat officers to collect zakat at their areas and distributed to the asnaf in that respective areas
• Management of Baitulmal during Saidina Umar

  1. Established al-diwan (agency) to administer the collection and usage of resources

  2. Appointed 'Aqil Ibn Abi Talib, Makramah Ibn Naufal and Jubair Ibn Mut'im to administer al-diwan which later on known as baitulmal

  3. Madinah served as the Head Quarter and a number of branches had been opened in Islamic district

  4. Invented the new system of salary, welfare etc.

  5. The poor or unemployed could get an amount of money from the Baitul Mal. Even the women who were either pregnant or nursing babies, and had no one else to take care of them received a monthly stipend from the Baitul Mal
• It was estimated that around 200 million dirham left in baitulmal during khulafa' al-Rasyidin period
• Baitulmal during Umawiyah

  1. Khalifah Umaiyah bin Abi Sufyan: Opened baitulmal office in new places, Resources increase come from kharaj, ghanimah, fai and jizyah

  2. Khalifah Umar Abdul Aziz: Order his family and the government officers to surrender any assets belonging to country to baitulmal
• Baitulmal during Abbasiah


  1. Khalifah Al-Mansur: Relocate the administration from Kufah to Baghdad (strategic location, trade centre)

  2. Khalifah al-Mahdi: Introduce al-muqasamah scheme- land tax according to output, Introduce al-zimam committee to monitor the amount of collection and expenditure

  3. Khalifah Harun al-Rashid: Good governance-baitulmal account 900 million dirham
• Public Sources of Baitulmal


  • Donation from public (sadaqah)
  • Waqf
  • Zakat
  • Ghanimah
  • Fai'
  • Jizyah
  • Khumus - Al-Khums means one-fifth
  • Rifadhah
  • Diyah & luqatah
  • Kharaj
• Public Sources of Baitulmal in Malaysia

  • Luqatah
  • Waqf
  • Nazar
  • Kafarah
  • Wassiyah
• Sadaqah


  Charity given voluntarily for the sake of Allah, a voluntary charitable act towards others, without the expectation of getting anything in return
• Jizyah

  A tax imposed by an Islamic State on its non-Muslim subjects in lieu of protection given to their lives and properties
• Kharaj

  Revenue, tax, rent, rate, lease, produce, income, wages, etc. received from land which the Muslim jurists call Kharaj land
• Ghanimah


  The war spoils captured with a lot of asset belong to the disbelievers, using armies and instruments of war
• Al-Fai'


  The Muslims conquered enemy countries by armed force WITHOUT ANY WAR, they gave name of Fai' to perpetuated incomes obtained once and returned again each year
• Waqf

  In Arabic, literally means hold, confinement or prohibition. In North and West Africa, Waqf (pl. Awqaf)
• Kharaj


  An agricultural tax received from non-Muslim owners of the lands
• Ghanimah


  Spoils captured with a lot of asset belong to the disbelievers, using armies and instruments of war
• Distribution of Ghanimah

  1. 20% → 4% imam, 4% fuqara' & masakin, 4% mashalihul'l muslimin (benefit of muslim), 4% ibnu sabil, 4% yatama (orphanage)

  2. 80% → fully surrended to the army of islam
• Al-Fai'


  Perpetuated incomes obtained once and returned again each year from enemy countries conquered by armed force WITHOUT ANY WAR
• Waqf


  Holding, confinement or prohibition
• Waqf


  An act of holding and preservation of a certain philanthropy –sadaqah (charity) with the intention of prohibiting any use or disposition of the property outside the specific purposes to which the property is dedicated, in such a way that it cannot be bequeathed or sold
• Waqf (according to Hanafiyyah)

  • The founder has the right to return the waqf property to his ownership and he can sell it –the waqf is revocable
  • Waqf of movable assets is invalid
• Waqf (according to Abu Yusuf)

  • Waqf is only valid if it is irrevocable (cannot reverted back to the founder) but must be made in perpetuity
  • Waqf of movable assets is invalid except weapons of war, cattle and implements of animal husbandry attached to the dedicated waqf land and books
• Waqf (according to Imam Zufar)

  • All movable properties can be dedicated as waqf, including waqf of dirham (pl. darahim) and dinar (pl. dananir) (waqf al-nuqud-cash waqf)
  • Approved waqf of jewelry based on the practice of Saidatina Hafsah
• Waqf (according to Imam Muhammad ibn Hassan al-Shaybani and Imam al-Sharakshi)


  • All movable properties not only subject to the existence of customs during the time of the Prophet (PBUH), but customs arising in another time and country
• Waqf (according to Malikiyyah)

  • Agrees with Hanafiyyah on waqf on immovable and movable properties
  • Approved waqf for certain period (mu'aqqat)
• Waqf (according to Shafi'iyyah and Hanabilah)


  • Waqf is the confinement of the property and the pledge of its usufruct in perpetuity for the sake of Allah
  • Both school of jurists agreed on the validity of immovable and movable properties as subject matter of waqf
• Pillars of Waqf (according to Shafi'iyyah)

  • Al-Waqif (Waqf Founder)
  • Al-Mauquf Alaihi (Waqf Beneficiary)
  • Al-Mauquf (Waqf Property)
  • Sighah (Acceptance and Offer)
• Legal Conditions of Waqf

  • The property must be a real estate
  • The property should be given on a permanent basis
  • The waqf founder should be legally fit and aptitude to take such an action, i.e., a child, an insane or a person who does not own the property cannot make waqf
  • The purpose of the waqf must, in the ultimate analysis be an act of charity
  • Beneficiaries, person(s) or purpose(s), must be alive and legitimate
• Hujjah (The Deed) of Waqf


  The constitution of a waqf and is equivalent to the Memorandum and Articles of Association of a corporation
• Contents of the Deed of Waqf

  • The objectives of the waqf
  • The waqf property
  • The beneficiaries and their shares
  • The mutawalli, their powers and the mechanism for the appointment of subsequent mutawalli
  • The ultimate object
• Philosophy of Waqf


  • Waqf is a voluntary act of charity that comes under the general terms of sadaqah and infaq
  • Muslims are encouraged to create sadaqah that continues generating benefits/revenues for use in the targeted objectives
  • Waqf is also termed "sadaqah jariyah" or "ongoing sadaqah"
  • An important characteristic of waqf relates to its objective or birr, which means doing charity out of good intention
  • The objective of waqf may be for the society at large, including the provision of religious services, socio-economic relief to the needy, the poor, education, environmental, scientific, and other purposes
  • One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust