Abstract:

With the current emphasis on the need for charity organizations to be more accountable, transparency is increasingly being used as an indicator for good practice in corporate governance. Being dependent on the public for funding, a transparent charity organization will more likely to gain confidence from potential donors. This paper focus on a specific type of charity organization namely waqf institution. Waqf is an Islamic endowment. Waqf can be in the form of cash, property or assets that one donates for the social benefit of the society. Diverse examples of waqf asset include religious buildings, schools, cemeteries, orphanage, commercial and residential buildings and also fund for maintenance. The provision of waqf provides the giver with eternal reward as long as the waqf continues to benefit others either directly or indirectly.