7. The Cash Waqf Management Control
Since the zakat is considered as the buffer against the poverty, all of the zakat fund will be directly distributed to the poor. Therefore, Amil a person or
body or organization that are specialized in managing zakah, infaq, and shadaqah is allowed to spend all of the zakah funds to the mustahiq. Contrary
to zakah, the cash waqf fund must be maintained in such a way that it does not go below the initial amount.
The survey concluded that most people did not trust any existing government institutions to manage cash waqf fund and control cash waqf
investment activities, especially because cash waqf management will involve large amount of endowment funds
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. Most of them also recommend that if a special purpose institution is established to manage cash waqf fund, it has to be
highly capable of detecting any potential dishonesty and assessing performance of cash waqf fund manager, i.e. nadzir. Therefore, it’s necessary to design an
instrument which is able to control the cash waqf management. This model tries to design a control tools which is able to detect the human error in decision
making either mismanagement or dishonesty quickly. see figure 11.
The Control Function for Fund Management
rate_of_cash_inflow
Profits_Mobilization Current_price_of_gold
Convert_to_gold
Control_Function
Global_Fund_Mgt Commercial_Projects
Mudarabah_Deposits Company
Mikrofinance
Real_Estate
To_Increase_Waqf_Building_Productifity Social_Projects
Islamic_Capital_Market Agriculture
Islamic_Mutual_Funds Islamic_Bonds
Cummulative_Cash_Waqf_Fun
available_fund_for_living available_fund_for_healthy
available_fund_for_education available_fund_for_disaster
available_fund_for_rehbltation Total_cash_waqf_in_gold
available_fund_for_infrastrctr
Figure. 11 Flow Diagram of The Control Function for Fund Management
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Masyita, Dian 2001, Preliminary Implementation Model Design of Cash Waqf Certificate as Alternative Instrument for Poverty Alleviation in Indonesia using System Dynamics Methodologi, Thesis, ITB
25
The collected cash waqf fund from the waqif will be distributed to the various portfolios and then the usage will be controlled periodically. The early
warning system will be prepaired by the system in order to the amount of cash waqf fund will not go below the initial amount. It is the difference of the cash
waqf from the other sources of funds. Gold standard can be used as the currency standard because of its stability. see figure 11a-d.
day rupiah
Control_Function 1
Cummulative_Cash_Waqf_Fund 2
20 40
60 80
100 500.000.000
1e9 1,5e9
2e9
1 2
1 2
1 2
1 2
1 2
Figure 11a. The simulation result short term
day Gold Standard kg
Total_cash_waqf_in_gold 1
Convert_to_gold 2
20 40
60 80
100 5
10 15
20
1 2
1 2
1 2
1 2
1 2
Figure 11b. The Simulation result short term
26
day rupiah
Cummulative_Cash_Waqf_Fund 1
Control_Function 2
5.000 10.000
15.000 5e14
1e15
1 2 1 2
Figure 11c The Simulation Result long term
day gold standard kg
Convert_to_gold 1
Total_cash_waqf_in_gold 2
5.000 15.000
5.000.000 10.000.000
1 2 1
2
Figure 11d The Simulation Result long term The waqif and public can control or monitor the cash flow of cash waqf
investment. If mismanagement and dishonesty occurred, the simulation result could demonstrate the deviation. see figure 11e-f
day rupiah
Control_Function 1
Cummulative_Cash_Waqf_Fund 2
20 40
60 80
100 1e9
2e9 3e9
4e9 5e9
1 2
1 2
1 2
1 2
1 2
day gold st
andard kg
Total_cash_waqf_in_gol d
1 Convert_to_gold
2 20
40 60
80 100 10
20 30
40 50
1 2
1 2
1 2
1 2
1 2
Figure 11e. The Simulation Result short term
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day rupiah
Control_Function 1
Cummulative_Cash_Waqf_ Fund
2
2.000 6.000
10.000 2e13
4e13 6e13
1 2 1 2 1 2 1
2
day gold standard kg
Total_cash_waqf_in_gold 1
Convert_to_gold 2
2.000 10.000
300.000 600.000
1 2 1 2 1 2
1 2
Figure 11f. The Simulation Result long term
8. The Potency of Cash Waqf Zakah Fund for the Poverty Alleviation
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