On 22 Shawwal, 1367 Hijri, corresponding to 28th August, 1948, Hamdard, which was a commercial enterprise at that time, was converted into a Wakf, with the object of giving effect to Islamic teachings of public charity including health and education. In 1964, Hamdard National Foundation was created with a view to receive and disburse the profits earned by Hamdard (Wakf) Laboratories. Hamdard National Foundation was to take up charitable causes in the areas of education, medical relief and the advancement of knowledge, consistent with the principles of the true teachings of Islam.

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