There are three models
used by UIM to ensure its cash flow and financial sustainability each year,
core income business, endowment/ waqf and wealth creation/assets management.
According to UIM website (2017) “UIM cash flow comes from contributions by
state religious councils, corporations, alumni and other philantrophists”.
However, UIM had been advised by Bank Negara Malaysia office (BNM) to plan well
its financial structure. Basically BNM office suggested UIM to create three
departments or divisions for the purpose which are fund, asset and waqf.

In order to ensure its
financial stability, UIM is receiving funds from various segment before and
after the change of the status into independent. The active funder for example
are the Federal Government of Malaysia as well as the State Government such as
Selangor. Other than that UIM is receiving its funds from private companies and
individuals. Today, the major used of that funding according to UIM is to
develop its campus in Cyberjaya.

Establishment of asset
management division is one of the suggestions by BNM for UIM. The purpose is to
strengthen UIM financial position/ balance sheet where the asset should be
owned rather than relying on debt. It focuses to create wealth for UIM from
time to time and as a backup tool against UIM liability. The first asset owned
by UIM is long far ago in 1966 previously as KIM/Muslim College is a piece of
30 arches land and campus in Kampung Jawa, Klang in Petaling Jaya. Today, UIM
now proceed to have a new 100 arches land in Cyberjaya as well as new campus
there that valued about RM 3 000 000 according to the newspaper Sinar Harian
dated 7th September, 2012

The third suggestion
by BNM and the most important part related in this study is the establishment
of waqf division in UIM. The first
asset that has been mentioned before, Kampung Jawa is one example of waqf transaction in a form of land.
Previously, that land was owned by Sultan Selangor at that time as one of His
Majesty Palaces. Another form of waqf used by UIM and still available today for
participating for example in form of cash waqf, shares, jewellery and vehicle
as well as in form of land that commonly donated by the influenced institution.

Other than waqf in form of land, UIM also
introduces waqf campaign and project
through UIM Waqf Fund or Tabung Wakaf University Islam Malaysia (TWUIM). Later,
there are many similarities between the TWUIM and IEF in implementing waqf concept. For example, TWUIM is
accepting cash waqf to make its aim more achievable. The way of collection the waqf fund also later can be found same
such as monthly salary deduction of UIM staff or by cash. However, the
disbursement of the funds may differ from IEF compared to UIM. Later in
discussion part, IEF, the disbursement of waqf
model is made from the revenue generated from waqf rental asset (ijarah
waqf) and the revenue will be disbursed in form of scholarship and
financial assistance. Whilst, UIM is not yet at that level where the waqf
concept used is still limited in a form of asset creation. However, UIM does
uses it endowment concept to funding several project. The distributions of
endowment funds of UIM are as follow;

1.     
Academic

2.     
Research

3.     
Special Project

4.     
Library purpose

5.     
Main campus maintenance

6.     
Events and Rebranding

7.     
Social responsibility and alumni

2.8.4 University College Bestari

The history of
University College Bestari or UCBestari started in 2010 and it is a new project
of educational institution based on waqf
in Malaysia. Located at Terengganu (east Peninsular Malaysia), UCBestari operates
its business as private university and registered under Private University Act.

Moreover, UCBestari is
not just opening its intake students in public but, rather to choose and help
the poor youngers and orphanages to continue their study here. Therefore, the
establishment of this university college is not solely for the profit purpose,
but most importantly for the welfare of the poor youngers to get fair education
at the higher level as well as to make them ready to be employed at the market
later. Furthermore, this university college is not just accepting students in
this state, but also the whole country subject to its requirement and
capability.

In addition, UCBestari
is only the college level institution that provides diploma graduates, but it
aims to reach full university status and now offering PhD in Social Sciences,
Business Management, Information Technology and Islamic Studies.

Waqf in UCBestari

UCBestari at the first
place applied the concept of waqf
before it development physically. Similar to UIM and Al Azhar, UCBestari was a
continuous institution in 1998 at the same area. According to UCBestari Chairman
of the Governing Board Prof. Dato’ Dr. Haji Tengku Mahmud Mansur (2013), the
first step was initiated and taken by them through a donation of land at UCB’s
fixed campus of 320 acres in December 2010 and this donation was done through
waqf transaction where the land itself is the subject matter. Such concept is
similar to UIM first waqf land where
this is a traditional approach of waqf.

            In order to have this 320 acres of
land located at Permasuri, Terengganu, there was a modus operandi applied where
individual or a person can buy one lot of land valued RM 30.00 per square foot
under the waqf concept for UCBestari.
The payment is made available throughout Malaysia at Post Office counter or any
branch of Bank Simpanan National (BSN). Gain from the transaction will be used
to develop more UCBestari where to make UCBestari capable to accept more
students. In addition, to ensure UCBestari has full status University, the
ministry requires that this university college can provide more accommodation
or hostel to the students where UCBestari had already aimed to provide hostels
for 2, 500 to 3, 000 students. Today, as mentioned in UCBestari website portal,
they are capable to host 2, 160 students only.

2.8.9 IIUM Endowment Fund

As
mentioned in chapter one of this paper, IIUM Endowment Fund (IEF) is one of the
subject matters of this research, more accurately its application of waqf on selected products. To be more
specific, IEF was established and endorsed by Majlis of IIUM in its 48th
meeting together with IIUM Waqf Rules 1999 an indicated in IEF’s website
portal. Below are the milestones of IEF since its establishment;