Waqf is a charitable trust (Islamic endowment) that is formed for some divine/noble cause/purpose such as worship (mosques/ masajid), education (schools/universities), relief (shelters/refugees camps), public or community services (utilities) and so on. The waqf originator ties up a property in perpetuity so that it remains in service (providing charity or free of charge services) forever. It cannot be sold, donated, or bequeathed/inherited.

Sadaqa is a voluntary act (nafela) that involves giving or donating to a person or charity. By nature, sadaqa is not sanctioned or imposed by sources of shari’a (primary and/ or secondary) as is the case with zakah, and hence it is subject to no specific rules or conditions. However, it commendable (mandoob/ mustahabb).

Waqf is a continuing charity that comes in the form of an institutionalized act of giving/ donating, while sadaqa is a personal charity that can be given or assigned to others in a straight manner without having to establish a legal entity. Naturally, waqf is a form of sadaqa (institutionalized sadaqah), while sadaqa is uninstitutionalized waqf.