An open-ended unique endowment fund designed to support sustainable charitable causes through a professionally managed endowment, while providing growth potential. Charitable Giving in your Lifetime and Beyond.
What is WAQF?
Waqf is an endowment created by a person for the purpose of fulfilling charitable purposes. It involves donating an asset that can produce a financial return or benefit.
The revenue or benefit generated is subsequently spent on identified charitable purposes.
Traditionally, waqf was set up by donating a building or land (mosques, libraries, hospitals and other social assets) with no intention of reclaiming them. Recently, cash and temporary waqf have become acceptable forms of Waqf.
Sadaqatul Jariya is a continuous charity which benefits the donor even after passing away the ultimate goal. Lotus Capital has therefore created an endowment fund to professionally manage charitable giving in your lifetime and beyond.
With as little as ₦5,000, subscriptions can be made in the Lotus Waqf (Endowment) Fund for yourself or in the name of parents (living and non-living), loved ones, family estates, and so on.
Finally, you can be part of an endowment without being a millionaire!
What is LOTUS WEF?
The Lotus Waqf (Endowment) Fund
The Lotus Waqf (Endowment) Fund is a SEC REGISTERED open-ended fund which enables subscribers to continuously give to charity through a professionally managed endowment.
The Fund is constituted by cash, allowing subscribers to invest cash for allotted units in the Fund. The assets are invested in Shariah-compliant contracts and instruments including fixed term investments, sukuk, and equities with the aim of preserving capital while generating returns for the common good.
Qualifying Charitable Objectives
We strategically deploy resources into key sectors to ensure sustainable community development and social mobility.
Education
Focusing on Primary Schools to build a foundation for lifelong learning and intellectual empowerment in underserved areas.
Health
Supporting Hospitals and Primary Healthcare Centers (PHCs) to ensure accessible and quality healthcare for the vulnerable.
Family & Social Welfare
Collaborating with Registered Charities to provide safety nets for families in distress.
Economic Empowerment
Providing professional skills and equipment to catalyze financial independence and community resilience.
Participating in The Lotus WAQF (Endowment) Fund
“Give a gift that keeps on giving.”
Class A Subscribers - Permanent Waqf
This is for subscribers who desire to create a continuous endowment (for up to 99 years). The subscriber will transfer their subscription to the Trustees immediately after every subscription.
The Trustees will hold such subscriptions in the Fund in the joint names of the Trustees and the subscriber.
Income Distribution Under Class A Subscriptions
Charity Distribution
80%
Re-investment
15%
Expense
5%
This is a permanent donation meaning that the subscriber cannot redeem and does not earn any income.
Income is distributed towards charitable objectives.
The Lotus Capital Waqf (Endowment) Fund has obtained shariah certification.
Class B Subscribers - Temporary Waqf
This is for subscribers who desire to create a temporary and redeemable endowment.
The subscription will qualify as an endowment until redeemed in accordance with the redemption policy of the Fund
Income Distribution Under Class B Subscriptions
Charity Distribution
50%
Re-investment
5%
Expense
30%
This is a temporary donation meaning that the subscriber can choose to redeem and can earn some income.
Income is also distributed towards charitable objectives.
- Lotus Waqf Distributor
The Development Initiative of West Africa (DIWA) is a long-standing programme dedicated to tackling crucial, enduring challenges faced by vulnerable communities across West Africa.
DIWA focuses on various key areas including education, healthcare, nutrition, water accessibility, capacity-building, governance, emergency relief, and other essential social services.
It emphasizes fostering peaceful coexistence within diverse, multi-religious, and multicultural environments.
- MINNA, NIGER STATE
Frequently Asked Questions(FAQs)
What is waqf?
Waqf is an endowment set up by a person or entity for the purpose of fulfilling charitable purposes. It involves donating an asset that can produce a financial return or benefit. The revenue or benefit generated then serves categories of beneficiaries. Traditionally, waqf were set up by donating a building or land with no intention of reclaiming them. In recent times, cash and temporary waqf have become acceptable forms of Waqf.
What is the Lotus Waqf (Endowment) Fund?
The Lotus Waqf (Endowment) Fund is a mutual fund, registered with the Securities and Exchange Commission that was launched by Lotus Capital Limited to enable subscribers set up their endowment in a professionally managed form. The subscriptions in the Fund will be invested in Shariah-compliant instruments and contracts with the aim of preserving the capital and generating returns. The net income generated from the subscription will be applied to charitable purposes including education, health, and economic empowerment.
Who can invest in the Fund?
- Individuals
- Corporate entities
What are the classes of subscription?
The Lotus Waqf (Endowment) Fund has two classes of subscription – Class A (Permanent Waqf) and Class B (Temporary Waqf)
Class A (Permanent Waqf):
This is for subscribers who desire to create an endowment that cannot be redeemed. The subscription will be held in the joint names of the Fund Trustees and the subscriber (eg: FBNQuest Trustees/Investor Name). The net income will be distributed in accordance with the distribution policy of the Fund as described below.
Class B (Temporary Waqf):
This is for subscribers who desire to create a temporary and redeemable endowment. The subscription will qualify as an endowment until redeemed. The net income will be distributed in accordance with the distribution policy of the Fund as described below.
How can I subscribe to the Lotus Waqf (Endowment) Fund?
A person can subscribe to the Fund by completing the application form accompanying the Prospectus and providing the necessary KYC information.
What is the benefit of subscribing to the Fund?
- Fulfilment of endowment objectives;
- Continuous donation to charitable causes;
- Professional fund management;
- Diversified portfolio;
- Capital preservation; and
- Can set up an endowment for oneself or third parties such as parents or loved ones as a gift.
How will my subscription to the Lotus Waqf (Endowment) Fund be invested?
Subscriptions in the Lotus Waqf (Endowment) Fund will be invested in a diversified portfolio comprising:
- Shariah-Compliant Fixed Term Investments
- Commodities
- Shariah Contracts (Murabaha, Ijarah, Mudarabah etc)
- Shariah-Compliant Mutual Funds
- Sukuk
- Shariah-Compliant Equities
Will I receive dividend from my subscription?
Class A subscribers will not receive any distribution. The distribution on Class A investment will be paid to charity in accordance with the Distribution Policy of the Fund. Class B subscribers may receive part distribution when declared in accordance with the Distribution Policy.
What is the Distribution Policy of the Fund?
The net income of the Lotus Waqf (Endowment) Fund will be distributed in accordance with the Distribution Policy of the Fund.
The Fund will make distributions according to the below policy:
Class A subscribers:
Distribution to Charitable Objectives | 80% |
Re-investment into the Fund | 15% |
Expense Reserve Account | 5% |
Total | 100% |
For Class B subscribers:
Distribution to Charitable Objectives | 50% |
Distribution to the Subscriber | 30% |
Re-investment into the Fund | 15% |
Expense Reserve Account | 5% |
Total | 100% |
What are the Charitable Objectives of the Fund?
The Charitable objectives of the Fund are:
Education | Primary Schools in Nigeria |
Health | Hospitals and Primary Health Care Centers in Nigeria |
Family and Social Welfare | Registered Charities in Nigeria providing support to vulnerable individuals and families |
Economic Empowerment | Registered organizations providing skills training and equipment to vulnerable women, youth and low-income earners in Nigeria |
Can I redeem my subscription?
Yes, Class B subscribers can redeem their subscription subject to the minimum investment period. Class A subscribers are not able to redeem their investment at any time as they have set up a permanent endowment.
Is there a minimum subscription period?
Yes. There will be a minimum period of 12 months from the date of subscription for Class B subscribers.
How can I redeem my subscription in the Fund?
Class B subscribers may redeem their subscription by completing a redemption form. The Fund Manager will purchase the units redeemed at the price on the date of redemption.
Who will distribute the net income of the Fund to charity?
The net income of the Fund will be distributed by the Fund Manager and the amounts for charity will be distributed by the Development Initiative of West Africa (DIWA), a registered charity in Nigeria experienced in the distribution of charity.
Can I choose a preferred charity as the beneficiary of the income from my subscription?
No, the beneficiaries of the net income from the Lotus Waqf (Endowment) Fund would be chosen in line with the stated charitable objectives of the Fund.
Can I subscribe on behalf of a third party?
Yes, you can subscribe on behalf of a third party. When filling the subscription form you would indicate how you would like the subscription name to appear e.g. your name/name of third party
Can I set up a Waqf for a deceased person?
Yes, a waqf is a benevolent gift and it can be set up on behalf of a deceased person. When filling the subscription form you would indicate how you would like the subscription name to appear e.g. your name/name of deceased.
Can I contribute my Zakat to the Fund?
No, you cannot use your Zakat to set up a waqf. Zakat is meant to be given out as an obligation on the payer once it is due and should not be invested.
Can a non-Muslim invest in the Fund?
Yes, everyone can invest in the Fund regardless of their faith.
Can I migrate from my class of subscription (eg. Move my subscription from Class A to Class B or from Class B to Class A)?
Class B subscribers (being a temporary waqf) can migrate to Class A to become permanent, but Class A subscribers (being a permanent waqf) cannot migrate to Class B.
Is there age restriction for subscribers?
Anyone who has attained the investing age as stipulated by the Securities and Exchange Commission (SEC) can subscribe to the Fund. Subscriptions can however be made on behalf of minors or can be named after third parties.
Who are the Parties to the Lotus Waqf (Endowment) Fund?
Lotus Financial Services Limited | – Waqf Administrator |
Lotus Capital Limited | – Fund Manager |
FBNQuest Trustees Limited | – Trustees |
Citi Bank | – Custodian |
Development Initiative of West Africa (DIWA) | – Income Distributor to Charity Beneficiaries |
Is the Fund Shariah Compliant?
Yes, the Fund has been certified as shariah compliant by the Shariah Board of Lotus Capital Limited which comprises eminent shariah scholars.