The rising costs of funerals and burials have affected the Muslim community in the UK just like any other.
Though Muslims feel the effects more due to the broader socioeconomic factors, including employment disparities, income instability, and limited access to financial resources.
It means many Muslim families often lack the savings needed to cover unexpected expenses like funerals.
Islamic burial traditions, which require swift and dignified funerals, often incur additional financial burdens.
So, how can Muslims address this issue?
There are calls for the establishment of a National Funeral Waqf Fund dedicated to supporting the burial needs of Muslims.
Waqf refers to the charitable endowment of assets or funds for a religious or social cause. It draws from centuries-old Islamic tradition of community welfare and mutual support.
A discussion paper on the need for a Waqf Fund in the UK by Islamic finance expert Mohammad Ajmal Bhatti urges community support networks and specialised financial services to offer assistance — such as interest-free loans or community-based funds.
“A Shariah-compliant National Waqf Fund could significantly address these challenges by offering financial support grounded in Islamic principles,” says Ajmal in the paper.
“This type of fund would distribute the burden of funeral expenses across the community, ensuring that all families have access to a dignified burial for their loved ones, regardless of their financial situation.”
“Such a fund operates by pooling resources from the community to create a sustainable financial support system. It embodies the spirit of mutual aid, compassion, and collective responsibility, which are central to Islamic values. This proactive approach not only addresses immediate needs, such as covering funeral expenses, but also promotes long-term resilience by providing a ready resource for families in emergencies.”
The fund would pool community resources, including donations from businesses, entrepreneurs, and individuals, to create a sustainable system of mutual aid.
Q&A with Ajmal Bhatti
Islam Channel reached out to Ajmal to ask him a few questions about his discussion paper on the Waqf funeral fund.
CAN YOU GIVE A QUICK SUMMARY OF YOUR DISCUSSION PAPER? WHAT ARE THE KEY POINTS?
This discussion paper seeks input from experts, leaders, practitioners, and philanthropic entrepreneurs to address the financial challenges faced by the Muslim community in the UK regarding funeral and burial costs.
The proposal is to establish a National Funeral Waqf Fund, which aims to provide financial assistance for these expenses while ensuring compliance with Islamic burial practices. The initiative is in response to rising funeral costs, limited financial resources, and specific challenges faced by low-income families and women with employment disparities. Swift and dignified burials within 24 hours often incur additional costs with generic services. The Waqf would support many families who lack savings for unexpected funeral expenses and face restrictions on using interest-based credit.
The Shariah-compliant National Funeral Waqf Fund would pool resources to offer financial support and interest-free loans. Its goals are to alleviate financial burdens, ensure dignified burials, provide peace of mind, and foster long-term financial resilience. To achieve these aims and objectives, the following elements need to be in place:
1. Funding and Management: The fund would rely on member contributions, donations, corporate sponsorships, and Shariah-compliant investments, utilising modern technology such as blockchain for transparency.
2. Community Engagement: Outreach programs to educate the community and encourage participation.
3. Legal and Compliance: The fund would operate within the UK legal framework and adhere to Shariah principles.
WHY ARE YOU ADVOCATING A FUNERAL WAQF FUND INSTEAD OF OTHER FINANCIAL SOLUTIONS?
Advocating for a Funeral Waqf Fund presents a unique solution that aligns with Islamic principles while addressing the financial challenges faced by the Muslim community in the UK.
Traditional financial products, such as interest-based credit solutions, do not comply with Islamic guidelines, and currently, there are no Shariah-compliant insurance solutions for funeral costs in the UK.
The Waqf Fund offers immediate, interest-free financial assistance, ensuring that low-income families and those without savings can manage unexpected funeral expenses. By pooling resources, the fund promotes communal support and fosters long-term financial resilience through Shariah-compliant investments.
Additionally, the Funeral Waqf Fund supports gender equity by addressing the financial security gap for Muslim women who face employment challenges and wage disparities.
It ensures swift and dignified burials, adhering to Islamic customs that require burials within 24 hours, without imposing financial burdens on grieving families. Operating within UK regulations and Shariah law, the fund provides legitimacy and security, creating a sustainable support system that benefits the entire community.
HOW CAN THE WAQF SYSTEM ENSURE LONG-TERM SUSTAINABILITY AND ENGAGEMENT FROM THE COMMUNITY, ESPECIALLY IN TERMS OF CONSISTENT DONATIONS?
To ensure long-term sustainability and robust community engagement for the Funeral Waqf Fund, several strategic approaches can be adopted. Regular payments and membership contributions from community members are crucial to supporting the fund’s objectives consistently.
Additionally, one-time donations and bequests, where individuals include the Waqf fund in their wills, provide ongoing support and financial stability. Corporate sponsorships also play a vital role, as businesses can contribute as part of their social responsibility initiatives. Community-driven crowdfunding campaigns further bolster the fund by harnessing collective contributions.
Investing in Shariah-compliant financial instruments ensures ethical returns and long-term stability; while leveraging digital technologies like blockchain and smart contracts guarantees transparent and efficient management.
To foster awareness and participation, educational outreach and awareness programs are essential. These programs inform the community about the Waqf’s importance and benefits. Moreover, volunteering opportunities allow community members to actively manage and promote the Waqf fund.
Lastly, regular feedback and engagement with members help in understanding their needs and improving services, ensuring the Waqf fund remains responsive and effective in fulfilling its mission.
THE PAPER TOUCHES ON DIGITISATION AND THE USE OF BLOCKCHAIN FOR TRANSPARENCY. COULD YOU EXPLAIN HOW THIS TECHNOLOGY WILL ENHANCE TRUST AND EFFICIENCY IN FUND MANAGEMENT?
Digitisation and blockchain technology offer significant advantages for establishing a robust and trustworthy Waqf fund, despite the initial costs. These technologies enhance security, trust, and efficiency in multiple ways.
Transparency is a key benefit, achieved through an immutable ledger that records all transactions, ensuring contributions and disbursements cannot be altered. This builds trust among donors. Real-time tracking further enhances transparency by allowing donors to monitor contributions and allocations as they happen.
Efficiency is significantly improved with smart contracts, which automate fund disbursement when specific conditions are met. This ensures quick and secure payments. Automated processes streamline administration, reducing errors and fraud, and leading to faster fund management.
Security is bolstered by cryptographic features that ensure data integrity and tamper-proof information. Decentralisation reduces the risk of single-point failures, ensuring the system’s resilience.
Cost-effectiveness is another advantage, as reduced administrative costs result from automation, allowing more funds to be directed towards Waqf objectives. Efficient fund allocation through smart contract investments further optimizes resource use.
Lastly, community engagement is enhanced through user-friendly platforms, such as web and mobile apps, which facilitate easy registration, payments, and donations with clear dashboards.
WHAT ARE THE IMMEDIATE STEPS NEEDED TO ESTABLISH THIS NATIONAL FUNERAL WAQF FUND? WHO NEEDS TO BE INVOLVED?
To establish and manage the Funeral Waqf Fund effectively, public and private sector feedback is essential. This collaboration mobilises the necessary support and resources. The first step involves forming a consensus among community leaders, financial experts, legal advisors, and Islamic organisations. Their involvement ensures that the planning and implementation align with Shariah principles and address the community’s needs.
A comprehensive cost analysis is crucial to developing an operational model, funding strategies, digital platform development, and community engagement initiatives. Legal and regulatory compliance will also be ensured according to UK laws, including registering the fund as a charitable entity and adhering to GDPR regulations.
Initial funding will be secured through fundraising events and corporate sponsorships. Developing a digital infrastructure, including a user-friendly web and mobile application, will integrate blockchain technology and smart contracts to streamline operations. Community outreach and education are vital for raising awareness and encouraging participation.
Community leaders, marketing professionals, and volunteers will play a significant role in educating the community about the benefits of the Waqf.
Governance and Shariah compliance will be maintained with the help of trustees, Shariah scholars, and governance experts. They will support the governance structure, trustee appointments, and establish a Shariah Advisory Board. The deployment and continuous improvement of the Waqf fund will involve community members with IT support and governance bodies. They will monitor performance, gather feedback, and implement necessary advancements to ensure the fund’s effectiveness and sustainability.
HOW COULD CHARITY LEADERS, PHILANTHROPISTS, BUSINESSES, AND MOSQUES CONTRIBUTE TO THE WAQF?
Charity leaders can advocate within their networks, organise fundraising events, and provide strategic guidance to align the Waqf with community needs and charitable goals. Philanthropists can offer financial support through significant initial donations, matching funds to encourage broader contributions, and endorsements to attract more donors and build credibility.
Businesses can contribute through corporate sponsorships and donations as part of their CSR initiatives. They can also provide expertise in financial management, marketing, and operations to help structure and promote the Waqf, as well as facilitate partnerships with other businesses.
Mosques play an instrumental role in community engagement and education, serving as collection points for donations and membership fees. They can educate the community about the importance and benefits of the Waqf through khutbahs, workshops, and informational sessions, and promote participation through mosque networks and events.
WHAT ARE THE BIGGEST CHALLENGES IN IMPLEMENTING THE WAQF FUND, AND HOW CAN THEY BE ADDRESSED?
The biggest challenges in implementing the Waqf fund include securing funding, building trust, and ensuring transparency. Legal advisors and Shariah scholars must be involved from the outset to ensure compliance with UK laws and Islamic principles.
Community engagement and participation can be enhanced through educational outreach programs, leveraging social media, and involving community leaders. Building trust and transparency can be achieved by utilising blockchain technology for transparent management, providing real-time tracking of contributions, and regularly updating the community with progress reports.
