Re-Examining the Role of Selected Waqf and Western Academic Endowments: Issues and Challenges

Abstract

This paper aims to re-examine the significance of waqf and Western academic endowments, concerning issues and challenges related to their role in achieving sustainable growth for selected academic institutions. Specifically, the income generated from academic endowments is intended to finance the operating and/or capital requirements to ensure sustainable growth in teaching, research, and resources in line with the mission of an institution. By conducting library research including document and content analysis, derived from secondary data, this study seeks to analyze issues and challenges concerning academic endowment governance, performance and sustainable economic growth. Challenges are highlighted where academic institutions are experiencing reduced government financial support that threaten to constrain academic growth and development. Waqf academic endowments, whilst historically more successful, have more recently fallen behind their Western counterparts, even though Western endowments were derived from the waqf institution itself. Issues concerning governance models are highlighted concerning the need for independent professional management of waqf endowments and oversight, and an asset allocation model of sustainable income from Shari’ah compliant investments, in both public and private markets. Practical and social implications involve the application of best-practice standards in governance and asset management for waqf academic endowments to achieve sustainable growth for academic institutions.