The First SEC Registered Endowment Fund in Nigera
Lotus Waqf
(Endowment) Fund
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.
“and whatsoever good you spend, it will be repaid to you in full, and ye will not be wronged” Q2:272
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.
At last, you can be part of an endowment without being a millionaire!
Frequently Asked Questions (FAQ)
WAQF Fund Application Forms
LOTUS WAQF
Brochure
What is LOTUS WEF?
The Lotus Waqf (Endowment) Fund -WEF
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 of the Fund would be invested in Shariah-compliant contracts and instruments (fixed term investments, sukuk, equities, mutual funds, commodities) with the aim of preserving the capital and generating returns.
Income generated is distributed to qualifying charitable purposes in a manner that aligns with the overall objectives of the Fund.
Periodic reports on activities of the Waqf Fund would be sent to subscribers.
What We Build
Qualifying Charitable Objectives of The Lotus Waqf (Endowment) Fund
Education
Primary Schools in Nigeria.
Health
Hospitals and Primary Health Care Centers in Nigeria.
Family &
Social Welfare
Registered Charities in Nigeria that provide support to vulnerable individuals and families.
Economic Empowerment
Registered organizations that provide skills training and equipment to vulnerable women, youth and low-income earners in Nigeria.
Participating in
The Lotus Waqf (Endowment) Fund
“give a gift that keeps on giving..”
- 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
- 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.
- 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
- 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.
The Lotus Capital Waqf (Endowment) Fund has obtained shariah certification.
14 Years
Number of years DIWA has been in operation
900
Communities across Nigeria impacted from DIWA’s servcices
800,195
Lives positively transformed through DIWA’s services
N4.8 Billion
Value of charitable funds managed by DIWA
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.
DIWA is located at Minna, Niger State, Nigeria.
Frequently Asked Questions
(FAQs)
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.
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.
- Individuals
- Corporate entities
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.
A person can subscribe to the Fund by completing the application form accompanying the Prospectus and providing the necessary KYC information.
- 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.
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
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.
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 |
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.
Yes. There will be a minimum period of 12 months from the date of subscription for Class B subscribers.
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.
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.
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.
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
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.
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.
Yes, everyone can invest in the Fund regardless of their faith.
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.
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.
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 |
Yes, the Fund has been certified as shariah compliant by the Shariah Board of Lotus Capital Limited which comprises eminent shariah scholars.
