Empowering Higher Education Funding through Cash Waqf: A Case Study of Bogor Agricultural Institute
DOI:
https://doi.org/10.21580/economica.2022.13.1.20779Keywords:
funding, cash waqf, higher education, islamic philanthropyAbstract
The funding allocation for education in Indonesia remains comparatively inadequate, particularly for higher education. A limited allocation of funds for higher education has a detrimental impact on the caliber of education provided and the achievements of graduates. Consequently, it is imperative for higher education institutions to seek alternative sources of income, apart from relying on government and student support, such as through waqf funding. Waqf funds are determined by the scholarly interpretation of Islamic law, known as ijtihad, and are established with the intention of generating benefits. Several public universities in Indonesia, like Bogor Agricultural University, have successfully established and managed financial endowments. This study examines the administration of Cash waqf conducted by IPB from an institutional perspective, encompassing the aspects of fundraising, investment, and distribution of cash proceeds. The analysis discovered that IPB possesses a waqf management organization known as Nazir, which is recognized as a legal entity. The collection of waqf funds is conducted both directly and indirectly using social media and digital platforms. The cash waqf investment is conducted in the financial sector through the placement of deposits and the issuance of cash waqf-linked sukuk, in partnership with the Indonesian Waqf Board and the real sector. The investment proceeds were allocated towards scholarships and the installation of 20 drinking water stations on campus, resulting in the direct support and utilization of 1.4 billion waqf in profits. This document can serve as a resource for higher education institutions who require more money to effectively implement cash waqf.
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