The Najmaa Waqf: how your protection helps build community institutions

Protecting your car can also contribute to the institutions your community will rely on tomorrow.

At Najmaa, 5% of each protection contribution is allocated to the Najmaa Waqf, an endowment established with Awqaf Australia to help build lasting community institutions. This commitment sits alongside the Waqf purpose embedded in the constitution of Najmaa Mutual Limited.

Together, these arrangements connect everyday protection with a longer-term ambition: helping people support one another while building institutions that can serve future generations.

What Is Waqf

A Waqf is an Islamic endowment in which money, property or other assets are dedicated to a charitable purpose. Its aim is to create continuing benefit for the community.

In a financial endowment, the approach is generally to preserve and responsibly invest the underlying capital, using the income it generates to support charitable purposes over time. Awqaf Australia describes this approach in its explanation of how Waqf works and its investment approach.

This gives Waqf a particular role in community development. An endowment can help provide resources for services that people need year after year, such as education, healthcare and welfare. Its value lies in building a foundation for continuing support.

Waqf Is Embedded in the Mutual Constitution

Najmaa Mutual Limited was established as a not-for-profit discretionary mutual guided by Takaful principles. Those principles centre on cooperation, shared responsibility and people helping one another through loss.

The Mutual's constitution embeds its Waqf and community purpose within its governing framework. That places community benefit within the formal structure through which the Mutual operates and makes decisions.

For Najmaa, the responsibility to support members sits alongside a commitment to strengthen the community around them. The Mutual must meet its obligations, maintain appropriate reserves and protect its financial sustainability. Its broader purpose also recognises the value of institutions that can improve people's lives over the long term.

An Endowment Established With Awqaf Australia

To put that community purpose into practice, Najmaa has established the Najmaa Waqf endowment with Awqaf Australia.

Awqaf Australia works with Islamic endowments to support community needs, including education, healthcare, welfare and community infrastructure. Its approach brings together the management of endowments and the development of resources for lasting charitable benefit.

The Najmaa Waqf gives our institution-building ambition a dedicated home. Its purpose is to help uplift the community, advance social justice and build institutions that can continue serving people into the future.

How the Five Per Cent Allocation Works

Five per cent of each Najmaa protection contribution is allocated to the Najmaa Waqf to support the building of lasting community institutions.

For a simple illustration, a protection contribution of $1,000 would result in a $50 Waqf allocation. That amount contributes to the endowment and its purpose of supporting institutions over time.

This connects participation in Najmaa with an ongoing source of contributions to the Waqf. As the total value of protection contributions grows, the amount allocated through the five per cent commitment grows with it.

The allocation is calculated from protection contributions. It is separate from how any future surplus of the Mutual may be applied. Any additional application of surplus must take account of the Mutual's obligations, reserves, sustainability and governing rules.

Why Building Institutions Matters

Communities need organisations they can rely on throughout their lives. These include places to learn, services that help families through difficulty, and facilities where people can access support and participate in community life.

Such institutions need resources to establish their services and sustain them. A school needs teachers and learning materials. A welfare organisation needs skilled staff and the ability to plan ahead. A community facility needs maintenance and funding for the services delivered within it.

Waqf offers a way to build a financial foundation for those continuing needs. By developing an endowment over time, a community can work towards more dependable resources for the institutions that serve it.

Education, health services, welfare organisations and community facilities illustrate the kinds of lasting benefit an endowment can support. The Najmaa Waqf's specific projects and distributions will be governed by its purposes, governing arrangements and available resources.

Our ambition is to help build institutions that give the community greater capacity to respond to its needs, support people facing hardship and create opportunities for the next generation.

How Takaful and Waqf Work Together

Takaful and Waqf express the same commitment to helping others through different arrangements.

Takaful mutual protection brings members together through a shared protection structure. Contributions support the Mutual's operation and its consideration of members' requests for support under the applicable terms.

The Najmaa Waqf endowment supports the wider community purpose of building institutions for lasting benefit. The five per cent allocation provides a connection between members' protection contributions and that longer-term work.

For someone choosing Najmaa, this means their contribution participates in mutual protection while also helping build resources for the community's future. The model connects a practical need today with the institutions that families and future generations may depend on tomorrow.

Frequently Asked Questions

What Is the Najmaa Waqf

The Najmaa Waqf is an endowment established with Awqaf Australia to help uplift the community, advance social justice and build lasting community institutions. It reflects the wider community purpose embedded in Najmaa Mutual Limited's constitution.

How Much of Each Protection Contribution Goes to the Waqf

Five per cent of each protection contribution is allocated to the Najmaa Waqf. For example, five per cent of a $1,000 protection contribution is $50.

Is the Five Per Cent Allocation the Same as a Surplus Distribution

They are separate. The five per cent allocation is based on protection contributions. Any additional application of the Mutual's surplus depends on its governing rules, financial obligations, reserves and long-term sustainability.

How Does the Waqf Work Alongside Member Protection

Najmaa's protection arrangements support members through the Mutual. The Najmaa Waqf endowment supports the wider community by helping build lasting institutions. The five per cent allocation connects these purposes while each arrangement continues to serve its own role.

How Does an Endowment Support Institutions Over Time

Each allocation contributes to the endowment. The endowment approach aims to build and preserve resources so that charitable benefit can continue over time. Institution building can involve facilities, services and the resources needed to sustain them, with specific projects and distributions subject to the endowment's governing arrangements.

Help Build Institutions Through Everyday Protection

Najmaa was established to connect mutual protection with a wider responsibility to the community.

With Waqf embedded in the Mutual's constitution, an endowment established with Awqaf Australia, and five per cent of each protection contribution allocated to that endowment, the commitment has a practical place in how Najmaa works.

Explore Najmaa Vehicle Protection and see how your everyday protection can help support the institutions that will serve our community in the years ahead.

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Important Information

Protection is arranged by Najmaa Group Pty Ltd (AFSL 527623) and issued by Najmaa Mutual Limited. Najmaa Mutual Limited is not an insurer. Protection is not insurance and is provided at the discretion of Najmaa Mutual Limited. Any advice is general advice only and does not take into account your objectives, financial situation or needs. Please read the relevant Product Disclosure Statement, Financial Services Guide and Target Market Determination and consider whether the product is appropriate for you.