Posted by Yumna
Hadith no. 2003 (below) talks about Riba al-Fadl.
Volume 3, Book 38, Number 506 :
Narrated by Abu Said al-Khudri (radiallaahu `anhu)
Once Bilal (radiallaahu `anhu) brought Barni (i.e. a kind of dates) to the Prophet (sallallaahu `alayhi wasallam) and the Prophet (sallallaahu `alayhi wasallam) asked him, “From where have you brought these?” Bilal (radiallaahu `anhu) replied, “I had some inferior type of dates and exchanged two Sa’s of it for one Sa’ of Barni dates in order to give it to the Prophet (sallallaahu `alayhi wasallam); to eat.” Thereupon the Prophet (sallallaahu `alayhi wasallam) said, “Beware! Beware! This is definitely Riba (usury)! This is definitely Riba (Usury)! Don’t do so, but if you want to buy (a superior kind of dates) sell the inferior dates for money and then buy the superior kind of dates with that money.”
Volume 3, Book 38, Number 507 :
Narrated by ‘Amr (radiallaahu `anhu)
Concerning the Waqf of ‘Umar (radiallaahu `anhu): It was not sinful of the trustee (of the Waqf) to eat or provide his friends from it, provided the trustee had no intention of collecting fortune (for himself). Ibn ‘Umar (radiallaahu `anhu) was the manager of the trust of ‘Umar and he used to give presents from it to those with whom he used to stay at Mecca.
Waqf means putting aside the original property and donating its benefits for the sake of Allaah. What is meant by the original property is something from which benefit may be derived whilst its essence remains, such as houses, shops, gardens, etc. What is meant by benefits is beneficial produce that comes from the original property, such as crops, rents, provision of shelter, etc.
The ruling concerning waqfs is that the waqf is an act of worship which is recommended in Islam (mustahabb). The evidence for that is the saheeh Sunnah. In al-Saheehayn it is narrated that ‘Umar (may Allaah be pleased with him) said: “O Messenger of Allaah, I have got wealth from Khaybar and I have nothing that is more precious to me than that. What do you command me to do with it?” He said, “If you wish, you can put it aside and give in charity from it (from what it produces), but the original property should not be sold, given away or inherited.” So ‘Umar gave it in charity to the poor and to relatives, used it to set slaves free, gave it for the sake of Allaah, helped wayfarers and honoured his guests. Muslim narrated in his Saheeh that the Prophet (peace and blessings of Allaah be upon him) said: “When the son of Adam dies, all his good deeds come to an end except three: ongoing charity, knowledge from which others may benefit after he is gone, and a righteous son who will pray for him.” Jaabir said: “There was no one among the Companions of the Messenger of Allaah (peace and blessings of Allaah be upon him) who had the means, but he set up a waqf.”
Among the rulings on waqfs is that it is obligatory to act in accordance with the wishes of the one who set up the waqf, so long as it does not go against sharee’ah, because the Prophet (peace and blessings of Allaah be upon him) said: “The Muslims are bound by their conditions, except for conditions which make haraam things permissible or halaal things forbidden.” And because ‘Umar (may Allaah be pleased with him) set up a waqf and stipulated certain conditions, and if it had not been obligatory to adhere to the conditions there would have been no point in stipulating them. So if (the person setting up the waqf) stipulates a certain amount, or that some deserving people should be given precedence over others, or that those who are to benefit should have certain qualities or be free of certain qualities, etc., then it should be done in accordance with his conditions, so long as that does not go against the Qur’aan or Sunnah.
If he does not stipulate any conditions, then rich and poor, male and female, should be treated equally when given the benefits of the waqf.
If he does not designate a specific person to be in charge of the waqf, or if he designates a specific person then that person dies, then the one to look after the waqf should be the one for whom it was set up. If the waqf was not set up to benefit a particular person, such as a waqf set up for a mosque a mosque, or for people who cannot be counted, such as the poor and needy, then the ruler should take care of the waqf, either in person or by delegating someone else to do it.
The person who takes care of the waqf has to fear Allaah and do a good job in taking care of the waqf, because that is something that has been entrusted to him (amaanah).
More on the rulings related to Waqf here.