What is the ruling on investing endowment money in stocks while taking half of the profits?

If the intention is for a man to manage endowed property, then there is no objection to investing it and spending its returns on the beneficiaries, thereby fulfilling the intent of the endower. An endowment (waqf) is: "the dedication of the principal and the expenditure of its yield." The basis for this is the hadith (definition) of Umar ibn al-Khattab (may Allah be pleased with him) regarding his endowment of land in Khaybar, where the Prophet (peace be upon him) commanded him: "If you wish, you may dedicate its principal and give its yield as charity."

However, it is permissible to endow dirhams if they embody the meaning that justifies an endowment, which is the dedication of the principal and the expenditure of its yield. This means stipulating that the dirhams be dedicated, so their principal is not spent or inherited, but rather their returns are utilized. A group of scholars has permitted this, among them Zufar from the Hanafis, who allowed that dirhams be given for mudarabah (definition) (profit-sharing) and then the profit be given as charity. Accordingly, there is no objection to investing endowed wealth through mudarabah with a known, shared portion of the profit, provided that the shares in which the mudarabah will be conducted are permissible for trading.