Management and governance of <i>Awqāf</i> as social finance institutions

Purpose Awqāf have historically played a central role in supporting public welfare across Islamic societies, particularly in sectors such as education, health and social services. Their decline during the colonial era due to mismanagement, legal suppression and weakened accountability significantly reduced their socio-economic impact. In recent years, there has been renewed interest in reviving awqāf as dynamic institutions within the broader Islamic social finance architecture. However, persistent challenges in both management and governance, such as legal ambiguities, lack of operational transparency and insufficient regulatory oversight, continue to limit their effectiveness. While international benchmarks such as the AAOIFIWāqf Standard and the Wāqf Core Principles (WCPs) offer foundational guidance, practical, context-sensitive frameworks for operationalizing awqāf as modern social finance institutions remain underdeveloped. This paper aims to address this gap. Design/methodology/approach This is a conceptual paper based on interpretative and qualitative methods to arrive at the organizational and operational framework that could facilitate the realization of the historical institution of wāqf to play a role for the socioeconomic development of Islamic societies. Findings As voluntary instruments of Islamic social finance, awqāf should be structured as autonomous welfare institutions, professionally managed and governed in alignment with both Sharīʿah principles and stakeholder expectations. Effective management must ensure efficiency, resource mobilization and impact measurement, while governance must uphold accountability, both to beneficiaries and to divine authority. The study highlights the potential of the WCPs and AAOIFI standards as guiding tools, but emphasizes the need for localized models that reflect socio-cultural and institutional diversity across Muslim jurisdictions. Research limitations/implications The management and governance of the wāqf institutions in Islamic countries could take charity giving to the micro level enabling all well-of to take part in the formalized system of philanthropy for the welfare of the society. The accountability to the stakeholders and divine authority, efficiency, effectiveness, quality, governance and transparency play role in the effective governance of wāqfs to maximize the welfare activities. Practical implications The paper offers valuable insights for regulators, policymakers, Islamic social finance practitioners and philanthropic institutions. It positions awqāf as strategic instruments for delivering social welfare and inclusive development and calls for institutional reforms that strengthen both managerial capabilities and governance oversight. Enhanced integration of awqāf into national development strategies can unlock their full potential as sustainable, community-driven social finance institutions. Originality/value There are hardly any studies that explore the principles of management and governance from the above comprehensive perspective. This study fills the gap.