Is it permissible to allocate a budget from cash endowments to cover the wages and maintenance of endowed assets such as schools and hospitals, and what is the ruling on this in the four schools of thought?

Scholars have differed on the permissibility of Waqf (endowment) of cash due to its consumable nature, as its physical form does not remain, whereas the essence of Waqf is the preservation of its physical form.

The Hanbalis, and the Shafi’is in their more authentic view, as well as Ibn Shas and Ibn Al-Hajib from the Malikis, hold the opinion that the Waqf of cash is not permissible, unless it is for adornment and weighing, which is one view among the Hanbalis.

The Malikis permit the Waqf of cash for lending, provided that its equivalent is returned.

Abu Hanifa and Abu Yusuf do not permit the Waqf of cash, while it is reported from Zufar that he permitted it. Muhammad holds the view that the Waqf of movable assets is permissible if it is customary to deal with them in that manner.

Those who permitted the Waqf of cash stipulated that it must be by lending it, and the return of its equivalent is treated as the preservation of its physical form, or by investing it in Mudarabah (definition) (profit-sharing) and donating the profit.

It was stated in a resolution by the Islamic Fiqh Academy that if endowed cash is invested in shares or sukuk (definition), these shares do not become Waqf unless explicitly stipulated by the endower. They may be sold for the benefit of the Waqf, and the original cash remains the endowed asset.

Accordingly, it is not permissible to spend endowed cash on operational and maintenance expenses unless explicitly stated by the endower.