O Messenger of Allah, I have acquired a piece of land in Khaybar, and I have never acquired a property more precious to me than that. What do you command me to do with it? He said: If you wish you can keep its origin as an endowment, and give its yield in charity

‘Umar (may Allah be pleased with him) got a piece of land in Khaybar that was about one hundred shares, and which he considered the most valuable of his possessions, given its good quality and excellence. The Companions used to compete in doing good deeds.

So, ‘Umar (may Allah be pleased with him) came to the Prophet (may Allah's peace and blessings be upon him) seeking to attain righteousness that was mentioned in the verse (which means): {You will not attain righteousness until you spend from that which you love} [Sūrat Āl-‘Imrān: 92]. He consulted the Prophet (may Allah's peace and blessings be upon him) on how to give that piece of land in charity for the sake of Allah.

So, the Prophet (may Allah's peace and blessings be upon him) advised him with the best type of charity, and that was to keep the land itself as an endowment to be used for charitable purposes. ‘Umar did that and made the land itself an endowment that would neither be sold, nor given as a gift, nor bequeathed, nor be subject to any other type of disposal that could cause the transference of ownership, or act as a means to transferring ownership.

Its yield was to be given as charity for the poor and needy, the relatives, in the emancipation of slaves, for paying blood money due upon people who were unable to pay it, for aiding those who performed Jihad to make Allah's word the most superior and support His religion, for feeding the travelers who ran out of expenditure while in a country other than theirs, and for feeding the guests, since feeding guests is part of believing in Allah, the Almighty.

Given the fact that the land needs someone to take care of it and maintain it by way of irrigation and reform, it has been made permissible for the administrator of the land to eat from it in a reasonable just manner. He eats what he needs, and he may also feed his friends, without intending to obtain through it money that is extra to his need. That is because an endowment is only meant to be spent in good charitable ways, not for gaining money and achieving wealth.