The Shari’ah is a comprehensive system which provides guidelines for the holistic development of human beings. As regards the engagement at the economic level land through financial transactions, it presents effective and sustainable tools for the development of resources viz. social, intellectual, spiritual, physical and financial assets. The instruments of Zakah and Waqf provide a paradigm in the achievement of equitable distribution of wealth and its healthy circulation. This paper attempts to understand and explore the scope and potential of Zakah and Awqaf in the development of communities and their economic growth. It briefly discusses case studies in the present context where Zakah and Awqaf are being used as tools of extending financial inclusion and development of the resources of the community.