PEOPLE ATTITUDE TOWARDS PARTICIPATION IN

CASH ​WAQF​: CASE OF PAKISTAN

TABLE OF CONTENTS

TABLE OF CONTENTS 1
INTRODUCTION 1
Significance of Study 3
Literature Review: 3

Religiosity 3

Knowledge 4

Convenience 4

Informative Influence 5

Trust on ​Waqf​ Institutions 5

Research Gap 6
Problem Statement 6
Research Questions 6
Research Objectives 7
Theoretical Framework 7
2.6 Research Hypothesis 8
Population and Sample Size 8
Data Analysis Software’s and Techniques 9
REFERENCES 9

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INTRODUCTION

In Islamic religion, the concept of welfare of a society is principally based on how

to distribute the economic resources and wealth in a just and more equitable way. There
are two kinds of income and wealth distribution within Islamic economic system
(Achmad, 2010). The first mechanism is called functional income and wealth
distribution, while the second mechanism is based on redistribution of income through
transfer payment institutions both voluntary and obligatory. The humans have taught and
fostered for centuries that there are enormous benefits linked to a charitable behavior. In
fact, many religious and philosophical teachings emphasized that charitable acts leads to
opulence and prosperity. Our religion, Islam has also encouraged charitable giving where
one is promoted to donate part of his wealth.
The word ‘​waqf​’ came from an Arabic origin and is derived from word ‘waqafe’ which
means confinement, to stop, to hold, preserve or prohibition. According to Kahf (1999)
waqf is forbidding exchange or movement of something and must have perpetuity. The
provision of education, worship place, religious services, health facilities,
socio-economic relief to the people in need and other purposes are the objectives of ​waqf
in the Islamic economic system (Rahman, 2009). However, the endower (waqif)
determines the objective for which ​waqf is made for. ​Waqf is permissible in Islamic law
and it is a recommended practice in the light of Quran and Hadith. It not only creates
benefits for the waqif but also for the whole society.

In Islamic jurisdictions, ​waqf is considered as sadaqah jariyah “continuous sadaqah”. The

Holy Prophet (S.A.A.W) as reported by Abu Hurairah, said that: ​“​A man’s work ends
upon his death except for three things: a contribution to knowledge, on-going charity,
and faithful child” ​[Muslim]. Ali (2009) proposed that economic activities cannot be
translated into material benefit without mutual cooperation and empathy for fellow
mankind and that the institution of ​waqf ​is one of the divine alternatives that seek to build
a sustainable bridge across this gap. Allah says in the Holy Quran:

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 “...but Al-birr (righteousness) is one who believes in Allah and the last day and
the Angels, And the Books, And The messengers; To spend of your substance out of love
for Him, for your kin, for orphans, for the needy, for the wayfarer, for those who ask, and
for the ransom slaves, to be steadfast in prayer, And give Zakat...” ​(Quran 2:177).

According to Khaf and Mahamood (2011), ​waqf ​is composed of ​waqf ​of agriculture
machinery, equipments, property, and shares, stocks, books, cattle and cash money.
Rahman (2009) said that there are two prominent types of ​waqf are movable property
(manqul) and immovable property (aqar). Muslims are allowed to participate in cash
waqf with this ruling. Cash ​waqf (asl-al-mal) is differed from the ordinary ​waqf ​(Cizacka,
2013). For each individual ​waqf, activity a separate cash ​waqf is raised in the form of
certificates with different denominations to raise money against the planned projects
under consideration. Cash ​waqf really motivates the society and develops welfare of the
Ummah and it contributes to community development. It is useful for empowering of
small businesses. Most small businesses are those more in need the cash ​waqf
empowerment because they cannot fulfill the bank’s requirements. ​In the practices of
modern Islamic financial system, it is far more important since it is more productive
compared to properties and have been found profitable (Antonio, 2002).

Significance of Study

There are enough resources provided by the nature to human being to feed
everyone across the globe, but the real problem is these resources are not distributed
equitably. This inequality level of distribution has been raised significantly due to an
unprecedented change in income disparity among the rich and the poor over the past five
decades.

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In this scenario, the role of the cash ​waqf becomes highly important. Like Pakistan, in
other Islamic countries, most people are poor; therefore, effectiveness of cash ​waqf
program can help to reduce poverty in some countries. In Islam, Muslims are encouraged
to make donations and sadaqah in the path of Allah.
Literature Review:
Religiosity
The term religiosity means belief in Allah. Religiosity is a belief system and
practices and is based on a set of consumption norms (Arnold et al., 2004). According to
Worthington et al. (2003) religiosity is defined as the degree to which an individual is
adhering to the religious values, practices and beliefs within daily life usage. McDaniel
and Burnett (1990) argued that level of religiosity is one of the vital predictor to the
attitude and intention of ​waqif towards participation in the cash ​waqf giving scheme. The
researcher further proposed that religion as a belief in Allah is accompanied by a person’s
commitment, loyalty and dedication to follow the principles which are set forth by the
nature.
This means that an individual with high religiosity level tend to be more scared, religious
and pious, thus their attitude towards the participation in cash ​waqf scheme is much
stronger than the individuals with lower level of religiosity.
This study looks into individual religiosity regardless of age classification in determining
attitudes towards participation in cash ​waqf.​ The effect of religiosity on behavioral
intention has been scanty in the context of cash ​waqf​. Thus, the following hypothesis is
proposed:

Knowledge

A number of studies had been conducted to measure the level of awareness and
knowledge about the cash ​waqf around the world by researchers/scholars such as Hamid
and Nordin (2001), Haque (2010), Bashir (2013), and El-Zoghbi and Tarazi (2013).
Hamid and Nordin (2001) in their research study found that people have very limited and

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basic knowledge about the different aspects of ​waqf types in Malaysia. The study had
made use of survey instrument and structured interviews of the participants. It is
concluded that an individual that have more knowledge is tend to be more certain about
making a right decision and demonstrate less interest in other’s opinion. Therefore, the
study has formed the following research hypothesis:

Convenience

Convenience is also one of the critical component to determine the people attitude
and purchase behavior as it involves number of associated factors such as energy, time,
and cost in possessing an intended good (Kelly, 1998). This can be in any form such as
quantity, credit, place, time, readiness, customization, packaging, or automated
operations (Kelly, 1958). A study in perspective of USA showed that customers would
like politeness, courtesy, responsiveness, convenience and also the fair prices
(Kennington, 1996; Stafford, 1994). A study by Noradiva Hamzah, Ishak and Izzah
(2014) was done in Malaysia used a test of regression & correlation to exposed that
there exists a significant positive relationship between customer satisfaction and
service quality such as employees of the banks, image of the banks, services
delivered by the banks and the convenience of the banks.
The bank’s aptitude to take these remunerations on permanent basis most likely affects
the intensity of client satisfaction. Banks have offered contemporary schemes of pleasing
their customers like internet banking, online structure, cell phone services and call center.

Informative Influence

There are generally two categories of interpersonal influence: normative and

informational. Normative influence is a tendency to conform to others’ positive
expectation (Deutsch & Gerard, 1955). Informative Influence refers to the belief about
whether most people approve or disapprove of the certain behavior (Burnkrant &

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Cousineau, 1975). The informative influence is a central component of Theory of
Planned Behavior and has been included in numerous studies across a large number of
different settings. The concept of informative influence pertains to perceived norms of
behavior developed through external and interpersonal influence.
When a potential endower intends to contribute cash ​waqf ​for the first time, there is
tendency for him/her to refer to the behavior of others including their family members,
relatives, and friends.

Trust on ​Waqf​ Institutions

Trust is defined as a willingness to rely on an exchange partner in whom one has

confidence (Moorman et al., 1992). According to Rogers (2003), the ability to reduce
consumers’ uncertainty is particularly important for innovations, due to the novelty of the
product. In accordance with past research, it is expected that an individual trust on cash
waqf will influence his or her attitude towards participation in cash ​waqf​. This leads to
the following hypothesis:

Research Gap

Although the concept of cash ​waqf i​ s implemented within Pakistan for the last
many years yet its development is still in its infancy beside the fact that it has the
potential and helps to promote the ummah development in Pakistan. However, researches
examine the relationship among the individual’s attitude and behavior regarding the
concept of cash ​waqf ​endowers is rather limited. Therefore, this study is conducted to
explore the vital determinants that contribute towards people attitude in participation of
cash ​waqf​ in the context of Pakistan.

Problem Statement

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 There is seen increased number of people over the period of time who rigorously
participates in the cash ​waqf a​ ctivities, however, we are not assured and have know how
about the determinants or factors that may influence individuals choice of participating
in the cash ​waqf.​ Therefore, the primary objective of this research study is to determined
factors (knowledge, trust, religiosity, informative influence, and convenience) – taken in
this research) that may influence on the people attitude towards the cash ​waqf
participation in the context of Pakistan.

Research Questions

Following are the research questions which are being addressed by this study.

o Do individual religiosity factor determine the attitude of individuals to

participate in cash ​waqf?
o Do informative influence factor determine the attitude of individuals to
participate in cash ​waqf?
o Do knowledge factor determine the attitude of individuals to participate in
cash ​waqf?
o Does trust in ​awqaf ​institutions factor determine the attitude of individuals
to participate in cash ​waqf?
o Do convenience factor determine the attitude of individuals to participate
in cash ​waqf?

Research Objectives

This study addresses the following research objectives:

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 o To examine the influence of individual religiosity factor on the attitude of
individuals towards cash ​waqf p​ articipation in Pakistan​.
o To examine the influence of informative influence on the attitude of
individuals towards cash ​waqf p​ articipation in Pakistan​.
o To examine the influence of knowledge on the attitude of individuals to
participate in cash ​waqf​ within Pakistan​.
o To examine the influence of trust in ​awqaf ​institutions on the attitude of
individuals to participate in cash ​waqf​ within Pakistan​.
o To examine the influence of convenience factor determine the attitude of
individuals to participate in cash ​waqf​ within Pakistan

Theoretical Framework

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2.6 Research Hypothesis

H​1​: There is a positive and statistically significant role of level of religiosity and an
individual’s attitude towards participation in cash ​waqf.​
H​2​: There is a statistically significant and positive role of knowledge about cash ​waqf and
an individual’s attitude towards participation in cash ​waqf.​
H​3​: There is a statistically significant and positive role of convenience in contributing
cash ​waqf​ and an individual’s attitude towards its participation.
H​4​: There is a statistically significant and positive role of individual’s susceptibility to
informative influence and an individual’s attitude towards its participation.
H​5​: Trust in ​waqf i​ nstitutions is positively related to individuals’ attitude towards cash
waqf.​

RESEARCH METHODOLOGY
Population and Sample Size

The target population of the study is the people of Pakistan who are interested to
waqf money in the path of Allah in the nearby future or already doing it. Also the people
who have an idea and brief understanding about the concept of cash ​waqf.​ The sampling
method used to get sample from the population is Convenient sampling. The reason for
choosing this sampling technique is that the ​cost and time required to carry out
a convenience sample are small (Castillo, 2009). ​A total of 300 respondents will asked
and requested to fill the survey instrument.

Data Analysis Software’s and Techniques

MS Excel and SPSS are employed as data analysis software. Different techniques are used for
data analysis, which are as followed.

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1. Descriptive Statistics
2. Reliability Analysis
3. Factor Analysis
4. Multiple Regression Analysis
5. Correlation Analysis

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