MANAGEMENT AND ACCOUNTING REVIEW

 


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Volume 14 No. 2, December 2015

 

ARTICLE INFO
Article History:
Received: 28 February 2015
Accepted: 23 September 2015
Published: 30 December 2015

MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 14 NO. 2, DECEMBER 2015

Factors That Influence Repeat Contribution of Cash Waqf in Islamic Philanthropy

1Fuadah Johari, 1Mohammad Haji Alias, 2Syadiyah Abdul Shukor, 2Kalsom Abd Wahab, 2Muhammad Ridhwan Ab. Aziz, 2Nursilah Ahmad, 2Zurina Kefeli @ Zulkefli, 3Fauzi Abu Hussin, 4Patmawati Ibrahim
1Center for Awqaf Financing Development &
Faculty of Economics and Muamalat,
Universiti Sains Islam Malaysia, Malaysia
2Faculty of Economics and Muamalat,
UniversitiSains Islam Malaysia, Malaysia
3Faculty of Islamic Civilization,
Universiti Teknologi Malaysia, Malaysia
4Faculty of Technology Managementand Business,
Universiti Tun Hussein Onn, Malaysia

ABSTRACT
Cash waqfis an Islamic tool in the Islamic Economic System. Cash waqf inculcates the culture of giving through Islamic philanthropy. Cash waqf must be used as a socio-economic development mechanism to create and develop a third sector that is not profit-motivated and distinct from private and public sectors. Awareness of cash waqf contributionand the obligation to donate are crucial among Malaysians. Waqf institutions have seriously promoted waqf financing instruments to enhance awareness and participation in society. However, awareness toward cash waqf in Malaysia lags behind that in Indonesia and Middle Eastern countries. This study examines the internal determinants of donors’ (waqif) intention to participate in giving cash waqf among Muslims in Malaysia. This study is conducted using a quantitative approach based on constructed questionnaires Structural equation modelling technique is applied in the analysis. Findings show several internal factors, such as religious obligation, benevolence, familiarity with waqf institutions, and access to cash waqf, that have strong relationship with donors’ intention to repeat contribution of cash waqf in the future. Waqf institutions should encourage people to donate cash waqf in Malaysia. However, most of the respondents do not trust waqf institution. Trust is a significant internal factor in the intention to repeat contribution of cash waqf. Thus, waqf institutions should build good reputation and integrity to attract big contributors among Muslims in Malaysia and increase the level of intention among donors (waqif). Waqf institutions should consider these factors in planning their strategies to ensure adequate waqf funds that could accommodate further development for the benefit of th eummah.

Keywords: internal factors, cash waqf, Islamic social finance, repeat cash waqf contribution, structural equation modelling (SEM)

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