There are certain methods by which a person can dispense with his property rights over his belongings:

(i) Fakku Mulk (Termination of Ownership): It not only brings to an end one’s own proprietary rights over the property but sets it free from encumbraces and ownership so that none can be considered to be its owner in any manner. This is called Tahrir (freeing) or setting the property free like setting slaves free or endowing a house or land for a masjid. This sort of endowment is not ownership but termination of ownership. It is evident that such property cannot revert to the ownership of anyone although all sorts of accidents may happen to it.

(ii) Transfer of property to another person against consideration with the consent of the parties by way of verbal contract or something similar to it. This kind of transfer is called Bay’ and Sulh etc.

(iii) Transfer of property to someone else without consideration of the object of spiritual reward in future life and pleasing Almighty Allah. This is called Sadaqa (Alms).

Sadaqa is also of two kinds:

(i) Endowment: It is a property which is managed by a trust. It can utilise its income for appropriate uses but cannot transfer the ownership of such an endowment.

(ii) Sadaqa: In its special sense Sadaqa consists of property which a person transfers to another without any consideration but only to please Allah. In this case the latter person can utilise the property in any manner he likes.

(iv) Transfer of ownership to another person without consideration and without the intention of pleasing Allah (e.g. when a person gives something to another as a token of friendship or on account of attachment with him). This is called Hibab (Gift).

Hibab too is of two kinds. Firstly, a gift for consideration, which is like one telling the other, “I give you this dress provided you give me that book”, and the other person also agrees. Gift of this type is an obligatory contract which cannot be cancelled except with the consent of both the parties. Secondly, gift as an award which carries no consideration.

Delivery is necessary for all sorts of gifts without which they are not deemed to be in order. Gift in the shape of an award can be revoked even after delivery i.e. the owner of the property can take it back except when the other party consists of kinsmen, husband or wife, and when the original property is destroyed, in which case revocation is not possible.

Sadaqa (Alms) of any kind is not, however, revocable and delivery is also its necessary condition. Hence, when a settler (Waqf) pronounces the formula of endowment and for example says: “I have settled this house on such and such person for the sake of Allah” and later delivers it to the Mutawalli (Custodian or Administrator) or Mawquf Alayhtm (Beneficiaries) or in the event of his being the Mutawalli himself commences to hold it by treating it as an endowment contrary to the previous position becomes impossible and the property in question cannot be purchased, sold,.mortgaged, divided etc. For this purpose, it makes no difference whether it is a special endowment (e.g. endowment for children) or general endowment (e.g. endowment for schools, caravansaries etc).

Sale of endowed property is permissible only in exceptional circumstances occasioned by extreme necessity. The general rule in this regard is that the endowed property itself can be sold out in two cases:

(i) When the endowed property is impaired in such a manner that it does not carry any appreciable profit or its condition is such that there is a danger of its being so impaired.

(ii) When serious differences arise among the beneficiaries, and it is apprehended that these differences will result in assault and loss of life and property.

Notwithstanding this, however, the resale of the endowed property or its division among the beneficiaries is not permissible without giving prior intimation to the Magistrate dealing with religious matters and without obtaining his permission.

Unfortunately, people display great carelessness these days in the matter of endowments. They undertake their sale very informally and ignore the regulations and the religious procedure on the subject. However, Allah is well aware of the intentions of all.

These are the general beliefs of Shi’a Ulama’ in the matter of endowments. We have some other comments also on this subject which it is not possible to discuss here.