1. Individuals pool their cash together for the purpose of waqf.
2. The collected fund is then used to buy any property or be invested in any shariah compliant investment that can generate more lasting income/returns. The purpose of the purchase/investment is to preserve the collected amount and grow it.
3. The generated income/return is used to help Muslims (poverty reduction, relief help etc).
4. Cash waqf is more flexible in meeting the needs of Muslims. The money can be used directly to help the needy (building an orphanage house) or be invested in a project that can generate more income (hotel, mart etc). As compared to the former, the later approach also provides job opportunities to Muslims.
5. A competant fund manager is required to manage the fund.
