Is Zakat Applicable on Cash Allocated to a Waqf?

No Zakat does not apply to cash allocated to a waqf. 

Here is why Zakat does not apply to waqf:

• Understanding Waqf: A Waqf is a form of endowment where an individual dedicates their wealth or property for charitable purposes. These purposes include supporting the poor, funding educational initiatives, or maintaining religious institutions.
• Transfer of Ownership: Once wealth is donated to a Waqf, it is no longer considered the personal property of the donor. The assets are now held by the Waqf for charitable use.
• Zakat Eligibility: Zakat is due only to wealth that remains in the personal ownership of an individual. During a year, fluctuation in wealth also impacts the Zakat payments. But when the wealth is passed into a Waqf, it no longer belongs to the individual, so it is not subject to Zakat.
• No Zakat on Waqf Wealth: Since the funds or property in Waqf are no longer owned by the donor, Zakat does not apply to those assets. The Waqf is the new entity responsible for managing the wealth, not the individual who donated.

Hence, in Islam, Zakat is not required on wealth that has been transferred to a valid Waqf, as it is no longer in the possession of the donor.

While Zakat does not apply to wealth allocated to a waqf, such charitable contributions continue to benefit society in countless ways. One meaningful avenue is supporting institutions that uphold the spirit of care and community through sustained giving. 

Pakistan Sweet Home is a remarkable example where your generosity transforms lives. When you donate for orphanage needs here, you're not just giving wealth—you're building futures.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Required on a Cheque?
• Does Earned Interest Affect Missed Zakat Payments?
• Are Gift Cards with Cash Balances Subject to Zakat?
• Is Money Saved for Buying a House Liable for Zakat?
• Why is Zakat Required on Paper Money?
• Is Zakat Required on Money Stored in a Bank Account?