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Illustrated four-step diagram showing how a charitable donation is invested, generates returns, is reinvested, and funds a charitable purpose.
Articles

11 Aug 2025

Awqaf: A 1,000-year-old blueprint for modern impact investing

By Tasnia Alam Hannan

This article explains awqaf, a 1,000-year-old Islamic endowment model that has funded hospitals, schools and infrastructure across the Muslim world. It argues awqaf offers a proven blueprint for patient, values-based capital that Australia's impact investing sector has yet to tap.

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Summary

This article, published by UNSW Centre for Social Impact, introduces awqaf, a centuries-old Islamic endowment model used to fund hospitals, universities and public infrastructure. The author explains that awqaf keep the original asset intact forever, using only the investment income to support ongoing community needs.

Three features make the model relevant to modern impact investing:

The principal is never spent, so it can fund communities indefinitely.

  1. The principal is never spent, so it can fund communities indefinitely.
  2. It delivers stable long-term benefit rather than following typical fund cycles.
  3. It applies value-based screening rooted in Islamic principles, excluding harmful industries.

The article argues awqaf remains largely untapped in Australia, despite strong interest among Australian Muslims, and points to Awqaf Australia as an early local example. It's useful for anyone exploring long-term, values-aligned approaches to philanthropy and impact investing.

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Awqaf: A 1,000-year-old blueprint for modern impact investing | Understorey