The Potential and Reality of Cash Waqf Fund Collection State of Perak Darul Ridzuan

The rapidly growing Islamic financial sector today highlights the potential of cash waqf as one of the financial instruments that contribute greatly to the socio-economic development of the local community. However, the real potential of cash waqf has not been optimally developed in terms of collection and contribution to the Muslim population in the state of Perak. Cash fund collection is driven by the potential medium of promotion and implementation of waqf projects managed by Wakaf Perak Ar Ridzuan (WPAR). This study aims to discuss the potential of waqf fund collection in four main sectors, namely education, health, economy and religion. This study uses qualitative methodology through a semi-structured interview protocol with officials of the Perak Islamic Religious Council (MAIPk) and agency staff involved in managing cash waqf. In addition, an analysis of the WPAR fund report for the years 2016 to 2021 was also carried out. The study found that five aspects increase the potential of cash fund collection, consisting of the potential of the fund source, the potential of the promotional medium, the potential of the collection medium, the potential of the implementer, and the endowment potential. Implications of the study prove that cash waqf helps in the development of productivity and the benefits of waqf. Thus, management efficiency, innovation of cash waqf products, and integrated cooperation between agencies contribute to the prosperity and sustainability of waqf throughout the country in general and in the state of Perak in particular.