Financial Sustainability of Selected Waqf Institutions in Malaysia During Covid-19

Covid19 pandemic affect Malaysian in many ways. Some lose their jobs, hence unable to provide necessity for their families. Waqf institutions can reduce this burden by providing sustain in term of cash and other supports. The financial sustainability of the waqf institutions therefore becomes paramount for the institutions to achieve this objective. Being a non-profit organization, the financial sustainability of waqf institution is heavily dependent on donations. Donations to these institutions were reducing during Covid19 as Malaysian were conserving cash. The objective of this paper is to examine whether the financial sustainability of selected waqf institutions in Malaysia were reduced during Covid19 pandemic. Financial sustainability of the selected institutions was analysed based on ratio analysis using Tuckman and Chang, 1991 model. The financial sustainability of these institutions was indeed reduced during Covid19 pandemic. Findings from this study can encourage waqf institutions to diversify their revenue streams to not rely only on donations. For future research, incorporating data from the other waqf institutions would be proposed. In addition, this study did not evaluate factors that influence the financial sustainability of the waqf institutions. This will become an avenue for future research.