Is zakat obligatory on a sum of money designated as an endowment (waqf) for the sponsorship of orphans, and what is the ruling on the annual profits of this money deposited in a savings account in an Islamic bank – are they considered charity or a right of the orphans?

The answer to this question is based on two points:

1. Temporary Waqf (Endowment): A waqf is only valid if it is immediate and absolute. A temporary waqf is invalid according to the more correct opinion. If the endower stipulated that the money return to her after the orphans reach maturity, then the waqf is invalid, and the money belongs to her, obligating zakat on it, and its growth is her property. However, if she did not stipulate this, or if the waqf was deemed valid and the condition invalid, then the waqf belongs to those for whom it was endowed, and its growth follows them. 2. Waqf of Money: There is a difference of opinion among scholars regarding the validity of endowing dirhams and dinars (and contemporary currencies). If it is said that their endowment is not valid, then the money belongs to the endower, and zakat is obligatory on it, and its growth is her property. If it is said that their endowment is valid, then the money belongs to the endowed, and its growth follows them. The most correct opinion is that zakat is not obligatory on it, and it should be spent on the orphans. The correct view is the validity of endowing dirhams and dinars.