This study examines the critical factors of Waqf and their influence on community development based on seven human capital, which are knowledge, health, religion, family support, social connections, well-being and wealth through a new hybrid concept termed “benefidonors,” combining “beneficiaries” and “donors.” Data was collected from 304 waqf users in Malaysia, both Muslim and non-Muslim, and analyzed using SPSS and PLS-SEM to test the research hypotheses. The findings indicate that the benefidonor concept significantly impacts various forms of capital, including human, physical health, religion, family, social, quality of life, and economic capital, thereby supporting community development. This research provides valuable insights into waqf beneficiaries’ perceptions and may guide waqf administration in enhancing participation and donations.