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Annual Report 2024

Company No. 3034888, Charity Nos. England and Wales 1045348 and Scotland SC044614

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Reference and Administrative Information Statement from the Managing Director Report of the Trustees

Governance and Management

Strategic Report

History Present Day & Mission and Vision
Our Programmes in 2024

Basic Services for All

Success Story

Climate Change Adaptation and Disaster Risk Reduction

Success Story

Economic Opportunities, Sustainable Livelihoods and Food Security

Success Story

Emergency Humanitarian Assistance Programming

Success Story

Cross Cutting Themes

Gender and Inclusion

Good Governance and Community Development

Conflict Mitigation and Peacebuilding

2025 Programme Plans

Afghanaid People

Organogram

Staff Profiles

Our Donors and Supporters

Communications

Financial Review

Key Risks and Uncertainties Going Concern Reserves

Statement of Trustees’ Responsibilities

Independent Auditor’s Report to the Members and the Trustees of Afghanaid

Statement of Financial Activities

Balance Sheet Statement of Cash Flows Notes to the Financial Statements

REFERENCE AND ADMINISTRATIVE INFORMATION

Company Number:	3034888
Charity Numbers:	1045348 (England and Wales) SC044614 (Scotland)
Governing Document:	The charity was established under a Memorandum of Association, which
	established the objects and powers of the charitable company, and it is governed
	under its Articles of Association.
Registered Office &	Omnibus Business Centre
Operational Address:	39-41 North Road, London N7 9DP
Board of Trustees:	Mr Christopher Kinder (Chair) Mr Shirazuddin Siddiqi
	Ms Elizabeth Winter OBE (Vice-Chair) Dr Orzala Ashraf Nemat
	Ms Pauline Hayes CBE (Secretary) Mr John Hayward
	Mr Duncan Wood CA (Treasurer) Mr Anthony Fitzherbert OBE
	Ms Mary Mountain FCA Mr James Sinclair Taylor
	Mr Mark Bowden CMG Professor Nigel Poole
Principal Staff:	Mr Charles Davy, Managing Director
	Mr Abdul Rahman Tariq, Director of Programme Quality and Implementation
	Mr Ayub Khan Khugyaniwal, Director of Operations
	Ms Zodiac Maslin-Hahn, Director of Programme Development and Resource Mobilisation
	Mr Johannes Jansen, Deputy Director of Programme Performance and Monitoring
	Mr Mujtaba Nooristani, Deputy Director of Human Resources (departed 31 October 2024)
	Mr Saleh Mohammad Salehzai, Acting Deputy Director of Human Resources
	(from 1st November 2024)
	Mr Guru Naik Charan, Deputy Director Climate Action
	Barclays Bank Plc. AIB Bank Azizi Bank - Main Branch
Bankers:	London Corporate Banking Group Airport Road, Bibi Zanbaq Square,
	1 Churchill Place, London Mahro Shar-e-Naw
	E14 5HP Kabul, Afghanistan Kabul, Afghanistan
Solicitors	Russell-Cooke LLP, 8 Bedford Row, London, WC1R 4BX
Auditors	Crowe UK LLP, Chartered Accountants, 55 Ludgate Hill, London EC4M 7JW
Auditors -	PKF, Chartered Accountants (Member firm of PKF International)
Afghanistan	House Number 3, Street 5, Sailoo Road, Kabul, Afghanistan

STATEMENT FROM THE MANAGING DIRECTOR

It gives me great pleasure to introduce this 2024 Annual Report, in which Afghanaid reflects upon yet another very successful Day year, one in which we surmounted numerous challenges and gave great support to the people of Afghanistan. Unfortunately, it was a year marked with great sadness, at the passing of Dr. David Page, our long-serving and cherished Trustee, and our former Chairman.

David joined our Board of Trustees in 1996, and was elected Chairman in 2004. As Chair, he was instrumental in shifting the balance of our work from emergency relief to long-term development, when we began to play an important part in Afghanistan’s reconstruction, taking on infrastructure projects, such as roads, bridges, and irrigation systems. Also under David’s guidance, our community-led approach became indelibly ingrained in our identity, culture and operational ethos, as we developed and collaborated with village councils and self-help groups. We also launched our first long-term disaster risk reduction and climate adaptation programming, which remains central to our work today. David stepped down as Chairman in 2014, but remained a committed and engaged Trustee until his passing in October 2024. We will miss him greatly.

During 2024, Afghanistan saw a small decline in the number of people requiring life-saving assistance, as the critical importance of addressing the systemic challenges that hold millions of families in poverty, moved to the fore. Not until the root causes of poverty and injustice in Afghanistan are given focused attention, will ordinary people extract themselves from the perennial vulnerability to economic and climatic shocks, which repeatedly drag them back to reliance on emergency life-saving assistance.

I am proud to say that in 2024, Afghanaid and our implementing partners assisted a total of 1,647,198 project beneficiaries. Afghanaid again stood out, in words and actions, as one of the organisations leading the break from the repeated cycles of emergency humanitarian assistance, shifting resources to focus on systemic issues, and accompanying rural Afghan communities as they mitigate disaster risks, adapt to climate change, improve access to water, grow agricultural yields, reduce food insecurity, while improving value chains and family incomes. In doing so, we were able to ensure meaningful and effective programming for women, by women.

ensure meaningful A and effective programming for women, by °

With the goal to reduce bureaucratic impediments and optimize programmatic delivery, we worked hard to strengthen our working relationships and build trust with the Taliban authorities, at both the national and local level. I am pleased to say that our efforts resulted in some incremental gains.

None of this would have been possible without the growing financial and moral backing we have received from our donors, supporters, partners, and target communities, for which we are truly grateful. During the year, we continued to enhance our reputation for technical competence and value for money, and we were again recognised for our professionalism and transparency; especially in our leadership of major consortia of national and international partner NGOs. Our relationships will become even more critical for the people of Afghanistan, as the global donor community reevaluates spending priorities and reduces funding in an increasingly climate-change-impacted and unstable World. In spite of the current dystopia, Afghanaid looks to the future with confidence and optimism, founded on our reputation for impactful programmatic delivery through numerous periods of crises.

REPORT OF THE TRUSTEES

The trustees present their report and audited financial statements for the year ended 31 December 2024.

The reference and administrative information on page 3 are part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities (issued March 2005).

Governance and Management

Appointment of Trustees

In advance of trustees leaving, the existing board members canvas for new appointments, vet and select, and then vote on new members. Once elected, members remain in office for three years unless they resign or are removed. After this time, members must retire at the AGM but are eligible for re-election.

The Board of Trustees may also appoint individuals to fill vacancies in the membership and may co-opt up to five additional members.

Policies and Procedures on Training of Trustees

New trustees are provided with Afghanaid’s Guide for Trustees, its Memorandum and Articles of Association, information on its current strategy, programmes and projects, its annual accounts and minutes of the most recent board meetings. The Chair and the Managing Director also brief new members, and meetings are arranged for them with key staff. The training requirements of the Board of Trustees are reviewed every two years at a special board meeting dedicated to board appraisal and a strategy review. Annually, the Board members undertake refresher training in safeguarding.

Organisational Decision-Making

Afghanaid’s Board of Trustees meet quarterly throughout the year with the Managing Director and other Directors to review strategy, programme and financial performance, security, safeguarding and other risks, funding, and income matters, and to discuss significant trends and problems that might affect long-term organisational stability. The Board Security Committee meets quarterly with the Security Team Leader and the Managing Director. The Board Finance Committee meets quarterly with the Managing Director, Director of Finance and Operations,

Deputy Director of Finance and Administration, Deputy Director for Human Resources, and the Head of Communications and Giving. The Programme Committee meets three times a year with the Managing Director, Director Programme Implementation and Quality, Director of Programme Development and Resource Mobilisation, and several other relevant staff. The Managing Director liaises fortnightly with the Chair of the Board of Trustees to consult and receive support and guidance. The Director of Finance and Operations meets monthly with the Treasurer to consult and receive support and guidance.

Trustees are required to disclose all relevant interests and register them with the Chair and withdraw from a decision where a conflict of interest arises.

Pay and Remuneration

As a matter of course, the trustees are not remunerated. However, trustees are normally recruited for their expertise. If a project requires a significant amount of time from a particular trustee, the trustee could be contracted to do the work.

All related party transactions are disclosed under Note 17 in the financial statements.

The Directors of Afghanaid (Principal Staff) are employed according to approved terms, conditions and pay scale applicable to all staff. To better attract and retain the qualified, motivated directors required to work in Afghanistan’s challenging environment, Afghanaid aims to offer remuneration competitive with similar NGOs. Directors' salary increments between 0% and 5% are applied based on their performance; these are proposed to and reviewed by the Board of Trustees.

Afghanaid aims to adjust staff salaries in line with inflation and other economic conditions, to retain purchasing power year-on-year. A cost-of-living adjustment (COLA) is applied annually subject to affordability. For International Hire and UKbased staff, the rate is calculated mainly on the UK inflation rate published by the Bank of England; for National Hire staff, the rate is mainly determined by averaging out the World Bank, IMF, or Central Statistical Office inflation rates. In addition, being cognisant of the difficulty of retaining International Hire staff, Afghanaid rewards tenure by applying 2.5% annually to their salaries. Afghanaid conducts benchmarking exercises every two years to assess the competitiveness of remuneration compared to peer organisations. At the end of 2024, Afghanaid commissioned a comprehensive external review of its remuneration and benefits system, to assess efficiency, value for money and compliance with labour law, and will begin incorporating recommendations during 2025.

Public Benefit

The Board of Trustees of Afghanaid complies with the requirements of Section 17 of the Charities Act 2011. It refers to the Charity Commission’s general guidance on Public Benefit when reviewing its aims and objectives and planning future activities. In particular, the trustees have considered how the planned activities will contribute to the aims and objectives they have set.

Afghanaid works in some of the most remote and impoverished parts of Afghanistan. Its special focus is on working with marginalised communities in urgent need of support, including women and children, so that they can improve their well-being and opportunities. We also advocate for social change with, and on behalf of,

disadvantaged communities and work with them, civil society organisations and various levels of government in Afghanistan to ensure that national development efforts are both equitable and sustainable. We regularly evaluate our own work and commission external evaluations to ensure that we are meeting our objectives and bringing benefit to the targeted communities and groups.

Safeguarding

Afghanaid has in place key policies to protect its project’s participants and staff from sexual exploitation, abuse and harassment. It also provides continual training to staff across its offices to ensure safeguarding policies are followed. Afghanaid aims to adhere to best-practice standards and has again reviewed these practices during 2024.

Subcontracting and Grant Making Arrangements

In provinces where Afghanaid has an established presence, it implements projects directly.

Subcontracting: In order to attain greater geographical reach, access targeted populations and draw on technical expertise to more effectively achieve its objectives, Afghanaid identifies suitable implementing partners from amongst other NGOs and Civil Society Organisations. Afghanaid vets and conducts due diligence exercises, including gathering references from other donors and partners. It engages with these organisations throughout the project design, proposal development and subcontracting phases, requires regular reporting, and monitors and evaluates their performance.

Grant Making: As a rule, Afghanaid does not typically make grants to individuals or other organisations.

Fundraising

The Board of Trustees oversees all fundraising activities and ensures that the reputation of and public trust in Afghanaid is protected throughout. Afghanaid conducts its fundraising efforts in full compliance with applicable laws and regulations and continually evaluates its fundraising practices based on the principles provided by the Charity Commission in its guidance on charity fundraising (CC20) published in November 2016. Afghanaid is also registered with the Fundraising Regulator as part of our commitment to fundraising in a way that is legal, open, honest and respectful - in line with the Code of Fundraising Practice. In 2024, Afghanaid benefited from the support of regular givers and ran four public fundraising appeals, generating funds through events, print mailing, email marketing and digital marketing channels. Afghanaid has dedicated staff members in its London Office who monitor and provide support to all fundraisers. Afghanaid does not use professional fundraisers or commercial organisations to carry out its activities, and in 2024 did not engage in door-to-door, private site or street fundraising. Every care is taken to protect vulnerable people and other members of the public from unreasonable behaviour or places an individual under undue pressure. During the year, we did not receive any fundraising-related complaints.

STRATEGIC REPORT

History

Established in Britain in 1983 to serve the needs of the people of Afghanistan fleeing war following the invasion by the Soviet Union, Afghanaid has since become one of the longestserving, most widely respected non-governmental organisations (NGOs) in the country.

Today, Afghanaid’s dedicated personnel work in some of Afghanistan's most remote and inaccessible areas, serving tens of thousands of families at risk of exclusion and poverty. In the early years, from our initial base in Peshawar, Pakistan, we delivered humanitarian relief to Afghan refugees and, braving conflict in Afghanistan, provided essential services such as delivering food, medical supplies and agricultural and livelihood assistance.

From the early 1990s, Afghanaid shifted the focus of its work in Afghanistan from humanitarian relief to community-focused development to help rural people claim their rights and strengthen community self-reliance. At that time, we became renowned for our community-driven construction and repair of significant infrastructure, such as bridges and roads, as well as our assistance in improving local capacities for food production.

Moving the head office from Peshawar to Kabul in 2003 enabled Afghanaid to work more closely with the Afghan Government and local stakeholders, strengthen the network of offices across the country, and even more effectively meet the needs of families facing the greatest hardships.

In 2020, Afghanistan saw intensified conflict culminating in the Taliban’s return to power in 2021, accompanied by economic collapse, a massive humanitarian crisis, and a profound shift from long-term development funding to short-term life-saving humanitarian funding. Then, through 2023 and 2024, though the Afghan economy remained fragile and millions of Afghans continued to require emergency humanitarian assistance, some donors sought to rebalance, investing in addressing the chronic and systemic root causes of poverty and vulnerability. Afghanaid, which long ago recognised the critical linkage between emergency humanitarian to long-term development assistance, has been well placed to advocate for and take advantage of this funding shift: supporting families through the hardest of times, and then enabling them to build the resilience necessary to lift themselves out of poverty and vulnerability, and thereby removing the perennial reliance on humanitarian assistance.

Present Day

Afghanaid’s head office is located in Kabul. In 2024 we worked directly in Badakhshan, Daykundi, Ghor and Samangan provinces, and implemented projects through our partners in Takhar, Bamyan, Jawzjan, Sar-e-Pul, Nooristan, Nangarhar, Ghazni, Balkh and Herat.

We also maintained our small but dynamic Communications and Fundraising Office in London, United Kingdom. Through 2024 we employed an average of 399 national staff, 10 UK-based staff and 12 international staff based in Afghanistan. 31% percent of our staff were female.

Programmes

We deliver basic services for all, including constructing community infrastructure such as wells, reservoirs and pipe systems that provide clean drinking water; constructing latrines and raising communities’ awareness of good hygiene practices; installing micro-hydro and solar power plants to bring electrical power to villages for the first time; constructing roads that give remote villages access to medical services, schools and markets; and building and equipping schools, making it possible for boys and girls to receive an education in a safe environment.

Our climate change adaptation and disaster risk reduction work involves creating community-based natural resource management associations, and providing the necessary inputs, so that communities can conserve and manage their water, forest and rangeland, helping them adapt to the impacts of climate change: preventing deforestation, overgrazing and erosion and improving soil quality on irrigated and rainfed land. This work also entails working with communities to assess hazards and providing them with the training and support they need to take pre-emptive actions to mitigate disasters, and strengthening communities’ capacities to effectively respond to and manage disasters when they occur. Most importantly, this work increases groundwater, restores water tables, and creates the opportunity for irrigation and rural livelihoods.

Providing economic opportunities, sustainable livelihoods and food security entails working with farmers and their families to improve agricultural and animal husbandry techniques; providing vocational training and support for small enterprise development, especially among women; and introducing innovations that add value for farmers and entrepreneurs and improving access to markets. All of which lead to improved productivity, incomes, food security and nutrition.

When disaster strikes, we respond immediately with emergency humanitarian assistance, providing food, clean water, shelter, and sanitation, or cash to support these needs, both amidst a crisis or in the aftermath. And once the immediate disaster is over, we assist communities to rebuild their homes, renovate productive land and community infrastructure, and revitalise livelihoods.

Gender and inclusion, good governance and community development, and conflict mitigation and peacebuilding are central to the sustainability and impact of Afghanaid’s projects and incorporated as cross-cutting themes across all our projects. These themes occasionally also form the basis of stand-alone projects. Afghanaid believes that working with both men and women is necessary for Afghanistan to achieve political and economic stability. We work with both sexes in all our projects and ensure that men and women are consulted at every stage of project intervention – from design and implementation, to monitoring and evaluation. We also work to improve local governance, ensuring that services align with the needs and priorities of under-represented communities.

OUR PROGRAMMES IN 2024

Basic Services for all

In 2024, communities across Afghanistan continued to face major challenges in accessing essential infrastructure. An estimated 80% of the population lacked reliable access to safe drinking water due to prolonged droughts, economic instability, and infrastructure damaged by floods. The lack of employment opportunities in rural communities, combined with the growing impact of climate-related disasters, left many families unable to afford basic necessities such as clean water, nutritious food, and hygiene essentials.

To address these urgent needs, Afghanaid successfully worked with its partners to strengthen local infrastructure, expand access to clean water, and create income opportunities for rural communities. We implemented nearly a thousand communityled projects to repair and upgrade water systems and build new sanitation facilities. In 16 communities, hygiene kits were distributed to help reduce the spread of disease arising from poor living conditions. To address barriers to accessing education, we constructed gender-friendly and inclusive handwashing stations, latrines, and water reservoirs for 5 schools, to help over 3,000 children study in a safe and hygienic environment. And to ensure the sustainable use of the constructed water and irrigation infrastructures, we delivered technical training to local workers, equipping them with the skills necessary for maintenance and renovation.

Besides facilitating access to basic services, our projects also provided short-term employment to 97,000 skilled and unskilled labourers - benefiting over 670,000 family members - by enabling them to earn an income while contributing to the development of their communities. Afghanaid provided meaningful support to 20,000 female- or disabled-headed-households, that were unable to participate in cash for work activities, and therefore were provided with direct financial assistance and food support.

Climate Change and Disaster Risk Reduction

Afghanistan has seen a marked increase in climate-related challenges in the past decades, including prolonged droughts, flash floods and declining soil fertility, which severely impacted food security and water availability across Afghanistan. Rural communities, which are heavily dependent on agriculture, face reduced crop yields and livestock losses, making it hard to sustain their livelihoods and concurrently increasing their vulnerability to natural disasters.

In 2024, Afghanaid continued to build vulnerable communities’ climate resilience by strengthening sustainable agriculture, disaster preparedness, and inclusive governance. We delivered training to 4,100 members of local disaster and water management committees in climate adaptation and natural resource conservation, and we established 250 Watershed Management Groups to ensure that climate solutions were locally led. We also provided guidance and resources for these groups to implement Watershed Development Plans to make their communities more resilient to natural disasters and the effects of climate change.

As part of our commitment to reducing the impact of droughts, floods and other disaster risks through ecosystem restoration, we implemented integrated watershed management initiatives, such as constructing trenches, terraces, gully plugs and check dams, as well as planting 21,000 saplings and reseeding rangelands across 59 hectares. These efforts helped prevent soil erosion and reduce the severity of, or eliminated, flash floods, and played a vital role in recharging over 1.8 million cubic meters of groundwater.

To build on the results of our ecosystem restoration we built more resilient food systems, providing nearly 10,000 farmers – including 2,000 women – with materials and training on climate-smart agricultural techniques. These efforts benefited an estimated 70,000 individuals by helping them conserve water, improve soil quality and adopt sustainable irrigation methods. We supported Veterinary Field Units to provide

training and animal health services to 1,800 livestock farmers, ensuring that their livestock remained healthy despite adverse agro-climatic conditions, thereby safeguarding an essential source of food and income for vulnerable families.

Together with local community members, Afghanaid lined a 113-meter irrigation canal with concrete to prevent water loss through absorption and thereby enable broader water distribution. The initiative directly benefited over 2,000 people.

Mohammad Amin’s story

Promoting peace and prosperity through natural resource management

Across Afghanistan, repeated droughts have made life and livelihoods increasingly challenging, igniting conflicts over shared resources.

For years, the village of Hassan Khail Payen in Samangan’s Aybak district struggled with severe water shortages, impacting every aspect of daily life.Mohammad Amin, a 43-year-old resident, spoke to us about the tensions that had erupted with a neighbouring village over irrigation water for farmland, putting the area’s stability at risk. As both communities competed for this vital resource, divisions deepened, leaving Mohammad Amin’s village unable at times to secure enough water to grow their crops.

Recognising this challenge, Afghanaid sought to help Mohammed Amin’s village meet their water needs while also working to strengthen social cohesion and reduce conflict between the communities.

Pie—h 16

Understanding that peace was as vital as water, Afghanaid also established a Community Conflict Mitigation Committee (CCMC) made up of eight trusted village members. These individuals underwent specialised training in conflict resolution techniques, equipping them to effectively address and resolve disputes. The CCMC quickly emerged as a stabilising force in the community. Whenever conflicts arose - whether concerning water distribution, land disputes, or other matters - the committee intervened with skill and empathy. Their efforts not only diffused tensions but also nurtured a culture of dialogue and cooperation among villagers.

“It warms my heart to see how the CCMC has not only brought peace and unity but also fostered a sense of belonging and collective responsibility among the residents.” Mohammad Amin told us proudly, “As we look to the future, I am confident that this village will continue to thrive and serve as a beacon of hope for others."

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Economic Opportunities, Sustainable Livelihoods and Food Security

Limited economic opportunities and food insecurity remained major challenges for rural communities in Afghanistan. Climate and pest-related crop failures and the rising costs of agricultural inputs make it difficult for many farmers to maintain stable yields and sustainable incomes year-on-year.

By providing improved seeds, fertilisers and honeybees to over 9,000 farmers, Afghanaid contributed to the long-term food security of local communities. Aside from providing essential farming tools, we invested in skills development and training to ensure the communities’ long-term resilience. A total of 11,000 people received training in agriculture, livestock management and off-farm enterprise development.

To enhance reliable water access for both agricultural and household use, we strengthened water infrastructure benefiting 43,000 individuals across 31 communities. These improvements helped provide safe drinking water, and reduced diseases and illnesses which often arise from consuming contaminated water. We also upgraded irrigation infrastructure for over 2,000 hectares of land, increasing agricultural productivity and ensuring a more stable supply of food.

To empower women and help them establish and strengthen their micro-enterprises, we supported 115 Self-Help Groups, providing micro-grants to 1,800 women to help grow their business. We also distributed livestock to 1,600 female farmers, giving them greater economic stability and financial independence.

Abdul Razaq’s story

Revitalising rural livelihoods

In the remote village of Joy Badal Ha, nestled in the mountainous province of Ghor, farmer Abdul Razaq was struggling to make ends meet for his family of five. Despite owning land from which to earn a living, the simultaneous economic and climatic crises that grip Afghanistan have made it extremely difficult to get by. Most notably, severe drought has severely impacted Abdul Razaq’s region in recent years, greatly diminishing his yields from his crops, and leaving him unable to afford even the most basic necessities.

Barely earning half of what he needed to cover both farming and household expenses, Abdul Razaq searched for solutions that could support him to tackle these issues. But with unemployment and poverty rife throughout his whole community, there were no routes available to him to make additional income. In many areas of Ghor province, one of Afghanistan’s most impoverished regions, communities have been hit particularly hard by cuts to international aid funding, as well as the economic collapse of August 2021, when many longer-term development projects were interrupted. Abdul Razaq reflected on the immense challenges he had been facing:

ae ere| 2 a ae iWis FN)Nala Ee Oe ee ivi 1fheo “I am so relieved ery) iehowttefos Leh Bo ee rt artaot eae Hs Heli ie hi ‘et Nien ies a Ae and thankful for a ath Wil f \ { BVA ie i | a i this assistance, I ——= ——_——— at wit personally really needed it and it is worth so much to me and my family.”

"There are no jobs available. For us, farming is the only hope. Many people face being internally displaced or forced to leave the country in search of ways to support their families, and many have uncertain futures."

When Afghanaid’s team conducted a visit to Abdul Razaq’s village, it became evident that one of the main challenges for this agricultural community was the need for farming support, to help farmers like Abdul Razaq grow more despite the changing climate. To address these challenges, Afghanaid, with the support of the Food and Agriculture Organization of the United Nations, delivered certified wheat seeds, fertilisers, and training on cultivation techniques to 5,699 farmers in Ghor province . Abdul Razaq, along with others, embraced this opportunity, recognising the potential of certified seeds to yield better crops compared to local varieties, especially considering its more drought-tolerant qualities.

"The best solution during a dry year is for me to cultivate improved, drought resistant and higher yielding wheat seeds, rather than the locally available but cheaper seeds, or living on short-term grants” explained Abdul Razaq.

“Now that Afghanaid has provided me with improved wheat seeds and fertiliser I can say for sure that for at least 2 or 3 years we will have better yields than would otherwise have been the case, this will be fantastic for my family. I am so relieved and thankful for this assistance, I personally really needed it and it is worth so much to me and my family.”

Emergency Humanitarian Assistance

Freezing temperatures, poorly insulated homes, and the lack of proper heating and warm clothing makes winter an especially difficult season for millions of Afghan families. While heavy snowfalls block roads, cutting remote communities off from markets and essential services.

To help families cope with the harsh winter weather, Afghanaid provided winterisation assistance to nearly 1,900 vulnerable households, distributing firewood, warm clothes, and blankets. And to address winter food insecurity, we delivered cash-for-food assistance to more than 4,600 households, allowing them to buy essential supplies to sustain them through the winter.

For families affected by the earthquakes in Herat province, winter brought additional hardships. Afghanaid responded by providing cash assistance to over 1,600 households, enabling them to purchase food, clothing, heating materials and helping them to recover from the disaster.

Sayed Nasir’s story

Supporting families in the wake of disaster

Sayed Nasir and his family live in one of Herat Province’s most isolated areas. Lacking many basic facilities, things in Sayed Nasir’s village have always been tough, but when a series of devastating earthquakes hit in October 2023, destroying homes, infrastructure and livelihoods, life became even more challenging.

Following the earthquakes, Afghanaid launched an appeal to provide support for those affected, and succeeded in raising a total of £ 68,654 from the UK public, and a further £316,000 from the Hilton and Avazz foundations.

Sayed Nasir and his family were one of the many in urgent need of assistance. Their home had been extensively damaged and many of the family's possessions destroyed. Like many parents in the area, Sayed Nasir found it extremely difficult to make ends meet and feed his family. Moreover, he was also unable to afford essential medicines without which he risked losing his legs. Enrolling in Afghanaid’s emergency relief program for families affected by the earthquakes, and implemented by our national partners, CHA and WASSA, Sayed Nasir received cash assistance that enabled him to regain his stability:

“We used the help given for the treatment of my leg and to buy food for the family, ” he told us, “I hope that this aid will continue in the future and through it, I can make my life and that of my children better than before so that they have a brighter future.”

Cross Cutting Themes

Gender and Inclusion

Restrictions on women’s rights in Afghanistan continued to worsen, severely limiting women’s mobility, education and participation in public life, making it even more difficult for them to access livelihood opportunities, support services, and decision-making spaces.

Afghanaid remained committed to ensuring that female staff could continue their work safely and effectively. We negotiated with local authorities to safeguard the mobility and professional inclusion of our female staff so that they could continue to reach female beneficiaries directly, play an essential role in supporting Afghan communities, and ensure that women could still have access to vital support.

With financial support from UN Women, Afghanaid applied our community-based approach, and provided livelihood training and seed grants for equipment and working capital, to women’s self-help groups (SHGs), so that they could improve their economic and social well-being. In addition to livelihoods assistance, we ensured that women had access to psychological support. We trained SHG representatives to provide basic counselling and emotional support to other women in their communities.

And to challenge harmful norms and promote women’s rights, we engaged with influential male community figures and religious leaders to raise awareness and to champion support for women’s role in society and decision-making processes. Our awareness raising campaigns on women’s rights, disability inclusion and nutrition reached over 119,000 people, helping to ensure that women and vulnerable groups had a voice in local decision-making, while also improving knowledge of health and wellbeing within communities.

By integrating gender and inclusion into all aspects of our work and advocating for women and supporting marginalised groups, we ensure that even in restrictive environments, communities can work towards opportunities for all.

Amina’s story

Rewriting the future through entrepreneurship

In the mountainous province of Badakhshan, within the village of Dasht-i-Qurugh, lives Amina, a determined mother of nine who has transformed her family's circumstances and become a community role model.

Starting her working life as a teacher, Amina often found it difficult to provide for her large family and make ends meet. With the family facing financial difficulties and with Amina’s husband and sons unable to find work due to the unemployment crisis, her daughter was forced to stop studying as they could no longer afford her education.

Resolute in her dream of building a secure future for her children, Amina spoke to our local Afghanaid team, and enrolled in a project providing her and other women in her community with training in dairy processing. Amina excelled in the programme, mastering yoghurt, butter and cream production skills. Amina then became the head of the Safa Dairy Self Help Group. With funds supplied by the programme, she purchased the equipment and raw materials necessary to start her own dairy business, including cold storage and milk testing equipment to retain the high quality of her products. Now, Amina buys 40 litres of milk daily from a local livestock farmer and turns it into various dairy products for the local market. Her products are popular among local communities, achieving impressive sales and earning her over 3,500 Afghani (approx. 35 GBP) each day, enough to look after her family as well as continue to grow her business.

But Amina did not stop at dairy processing. She also decided to start a tailoring business, investing 10,000 Afghani (approx. 105 GBP) from her dairy business into equipment and raw materials for this additional venture. Her daughter now trains six girls in sewing and tailoring, helping them gain new skills Together, they produce garments sold in local schools, enhancing their economic independence.

In addition to her economic activities, Amina’s expertise and background as a teacher means she is now recognised as an experienced trainer in the dairy processing sector, and has been appointed by various organisations to share her knowledge with others. Amina’s story is one of inspirational change. From her beginnings as a teacher to now becoming a successful entrepreneur and community leader, her dedication and resilience has transformed the futures of many, as well as her own. She is proud of the impact she has been able to have with Afghanaid’s support.

Good Governance and Community Development

In 2024, we continued to prioritise the strengthening of community capacity through tailored training and support for a wide range of community-based groups.

Our support helped establish and strengthen Community-Based Disaster Management Committees, Watershed Management Committees and Groups, Natural Resource Management Committees, Water, Sanitation and Hygiene (WASH) Committees, SelfHelp and Producer Groups, as well as Farming Cooperatives. These efforts aimed to empower communities to become more self-sufficient, ensuring their voices are heard and meaningfully represented in local decision-making processes.

Conflict Mitigation and Peacebuilding

Afghanaid successfully built the capacity of numerous civil society organisations (CSOs) and NGOs across multiple sectors, to mitigate and manage community conflicts and build peace. As a result, the supported groups have demonstrated a strong intention to expand opportunities for dialogue on critical issues such as cultural and political tolerance, and the rights of women and minority groups, promoting inclusive values within their communities.

The establishment and capacity-building of community Conflict Mitigation Committees have led to significant improvements in both knowledge and skills, markedly enhancing their ability to resolve local disputes.

Women committee members, in particular, are actively participating in decisionmaking processes and contributing to dialogues that address their rights and protection concerns.

Additionally, the recruitment of 12 Islamic scholars and 34 religious leaders to conduct Community Dialogue Meetings on women’s rights, human rights, and conflict mitigation has had a substantial impact. These sessions have raised awareness among community residents about the rights of different groups. As a result, intergroup respect has improved, and communities now enjoy increased opportunities for economic engagement and participation in decision-making processes. The approach—grounded in Islamic teachings and aligned with cultural norms—has facilitated the acceptance and integration of human rights principles at the grassroots level.

Finally, the implementation of 36 conflict mitigation structures and small-scale infrastructure projects across 34 communities in four provinces has significantly reduced disputes over drinking and irrigation water distribution. These initiatives have contributed to greater community unity and stability by establishing organized water supply networks. The reliable provision of potable and irrigation water has mitigated long standing conflicts related to resource allocation and ensured equitable access for all residents.

2025 PROGRAMME PLANS

Afghanistan begins 2025 amidst continued humanitarian needs across the country, driven by economic difficulties and sombre agroclimatic forecasts.

Although improved rainfall in early 2024 temporarily eased drought conditions in some provinces, forecasts indicate a shift to a La Niña episode in early 2025, raising the likelihood of reduced precipitation and higher temperatures. These conditions are expected to affect rain-fed agricultural areas across the northern, north-eastern, and north-western regions, threatening crop yields and straining already limited water resources. Meanwhile, floods and flash floods, which affected over 173,000 people in 2024, are anticipated to continue posing serious risks, damaging homes, agricultural land, and essential infrastructure such as health facilities and roads. Seasonal challenges such as harsh winters further isolate communities and increase the risk of displacement, disease, and food shortages in remote areas.

Moreover, pressure is anticipated to mount for the estimated eight million Afghans residing under various statuses in Pakistan and Iran to return to Afghanistan. If large numbers of people return over a short time period, it will be very difficult for the country to absorb them without a major humanitarian crisis developing.

According to the UN’s Afghanistan Humanitarian Needs and Response Plan in 2025, an estimated 22.9 million people – nearly half of the population – will require humanitarian assistance, with 14.8 million projected to experience crisis or emergency levels of food insecurity. The impact of decades of conflict, compounded by a fragile economy and an increasingly constrained operational environment, has left millions of families with limited capacity to respond to further shocks.

In response, Afghanaid’s 2025 programme will continue to deliver projects directly and to lead consortia of partner NGOs, combining both life-saving assistance with resilience-building interventions. Working closely with partners, we will ensure that services remain inclusive, conflict-sensitive, and rooted in community participation. Priorities for the year include expanding climate-adaptive agriculture and watershed management, restoring access to safe drinking water and sanitation, and providing tailored support in remote areas through livelihood assistance and inclusive community programming.

Three of our larger, multi-year projects will be the Farigir (Inclusion) Project, funded by the EU, the Climate Adaptation and Resilient Livelihoods Project, funded jointly by by the EU and the Swiss Agency for Development and Cooperation (SDC), and the new PREVALE project funded by the UK’s Foreign, Commonwealth and Development Office (FCDO). Each of these projects will be implemented by Afghanaid-led consortia, across 15 provinces and assisting over 18,000 families by delivering a package of interventions to support communities to mitigate the risk of climate-induced disasters, recharge ground water and conserve surface water, adapt climate-smart agricultural practices, improve food security, enhance value chains and and expand market linkages. Through these projects, rural families and communities will be able to lift themselves out of extreme poverty and build resilience to economic and climatic shocks.

AFGHANAID PEOPLE

To maintain Afghanaid’s reputation as an impactful and professional organisation, among the most respected NGOs in Afghanistan, we always endeavour to attract and retain the most technically competent, innovative, and driven personnel, who actively contribute to achieving Afghanaid’s mission and vision. The organisation is structured according to the following organogram:

During the year, we employed an average of 421 staff. This total comprises 399 Afghan national staff, 10 UK-based staff and 12 international staff based in Afghanistan. On average, 31% of our staff were female. The staff turnover rate for the year was 0.76%, a decrease from 2023. Of particular note, three senior and long-serving members of staff, Mujtaba Nuristani (23 years with Afghanaid), our Deputy Director for Human Resources; Fazil Hadi Omarzai (19 years) one of our most experienced project managers; and Najibullah Namiq (15 years) our most experienced national hire Programme Development Manager, all left Afghanistan with their families to start new lives in the USA. Each has made immense contributions to Afghanaid and the people of Afghanistan and they will be missed.

In 2024, our HR department facilitated 60 training courses for a total of 601 participants , ensuring that all staff members were well-versed in areas such as digital literacy, diversity and inclusion communication, safeguarding, and cybersecurity.

Staff Spotlight

Fariha Frotan

Agricultural Officer

Fariha Frotan joined Afghanaid as an Agricultural Officer in Badakhshan after earning her Bachelor’s degree in Agriculture and receiving training in sustainable farming, agribusiness, and community engagement.

In her role, she supports local farmers by facilitating training sessions focused on climate-smart agricultural practices, distributing improved seed varieties, and monitoring agricultural activities in remote areas of the province.

Fariha finds it very fulfilling to witness the improvements in the farmers’ lives when they apply the knowledge she shared, and she sees that our support is making a tangible difference. Despite the challenges of working in remote mountainous areas, Fariha emphasises the importance of community engagement: “Navigating difficult terrain can be a real challenge, but strong cooperation from the communities we work with helps us overcome these barriers.”

In addition to her technical role, Fariha also serves as the Gender Focal Point at our Badakhshan office. She is committed to creating a supportive and inclusive environment where her female colleagues are able to remain meaningfully engaged. “My role is to ensure women in our workplace feel safe and supported, and to help address any challenges they may face,” she says.

When asked what working at Afghanaid means to her, Fariha responds: “It means creating meaningful and lasting change in people’s lives through compassion, dedication, and sustainable action.”

Staff Spotlight

Shakirullah Rasheed Engineer

Engineer Shakirullah Rasheed joined Afghanaid with qualifications in civil engineering, WASH (water, sanitation and hygiene), and project management. Over time, his

expertise has become integral to Afghanaid’s work in designing and delivering technically proficient and sustainable WASH interventions, responsive to the local needs. By providing technical guidance on engineering components, Shakirullah plays a crucial role in designing WASH initiatives aligned with both national policies and international standards, supporting consistency and quality across projects.

“I spend my workdays guiding our project teams, reviewing technical reports, supporting field staff, and ensuring that all activities align with donor requirements, sector standards and community priorities. What I enjoy most about my work is seeing the direct results of what we do,” he shares. “When a family gains access to clean water or a community recovers after a flood, you know your work is meaningful. That sense of impact keeps me motivated.”

He noted, however, that working in Afghanistan comes with significant challenges. “Security concerns, difficult terrain, and political instability make the context unpredictable. You have to be flexible, think creatively, and most importantly, remain committed.” Reflecting on the broader needs of the region, he highlights that reliable access to safe water remains one of the greatest challenges in the areas he works. “Many communities still depend on unsafe and unprotected water sources, especially in remote areas, which increases the risk of waterborne diseases. Sanitation facilities are often inadequate, and hygiene education is limited.”

He stresses that building infrastructure is only part of the solution. “To be effective, WASH interventions must involve community members from the beginning, and promote long-term behavioural change. Infrastructure without community ownership is never sustainable.”

OUR DONORS AND SUPPORTERS

In 2024, Afghanaid received humanitarian and development funding from the following institutional donors:

European Commission - DG INTPA
UK Conflict, Stability and Security Fund (CSSF) - in partnership with Search for Common Ground
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Swedish International Development Cooperation Agency (Sida)
Swiss Agency for Development Cooperation (SDC)
Food and Agriculture Organization of the United Nations (FAO) United Nations Office for Project Services (UNOPS)
United Nations Office for the Coordination of Humanitarian Affairs (OCHA) United Nations World Food Programme (WFP)
UN Women (UNW)

We were especially grateful to these donors for their steadfast support despite the challenges of sanctions, fund transfers, and the political actions by Afghanistan's de facto authorities.

We also received funding from the following Trusts and Foundations and corporate donors:

Afghan Caravan
Afghan Rug Shop
Avaaz Foundation
Rathbone Investment Management Bloomberg Corporate
Cecil Pilkington Charitable Trust
The Coles-Medlock Foundation CHK Foundation
Fletcher Charitable Giving Fund Give to Asia
Global Giving Emergency Relief Fund Grassington and District Peace Group Hoare Trustees - Miranda Fund
JAC Trust
The Joanna Herbert Stepney Charitable Settlement Also Known As The Paget Charitable Trust
Joss Stone Foundation
K Hannay Memorial Trust
Linda Norgrove Foundation
Miss K.M. Harbinson Charitable Trust Muslim Aid
RP Partner Ltd
Rhododendron Trust
The Sargeant Family Trust
Untamed Borders
Utley Foundation Vitol Foundation Yashar Bish

We appreciate the commitment shown by the Trusts and Foundations and corporate donors, whose contributions enabled us to support communities facing hardship across Afghanistan.

COMMUNICATIONS

In 2024, the Communications and Giving team advanced key milestones in our five-year strategy, notably expanding supporter recruitment by partnering with a digital advertising agency to launch an integrated marketing strategy across Meta, LinkedIn, and Google.

Despite declining media coverage of Afghanistan’s crisis, digital audiences grew, with social followers and email subscribers increasing by 7.95% and 15% respectively. Paid media campaigns boosted acquisition and brand awareness, reaching over 810,000 accounts on Meta and achieving 363,000 impressions on LinkedIn.

To retain donors, we implemented tailored engagement plans, increasing regular giving by 4% and re-engaging over 60 high-value donors. Strong SEO (search engine optimisation) and Google Advertising strategies maintained high website engagement, with 137,000 users active on our site across the year. We continued to generate over 50,000 clicks onto the website via Google Search, maintaining a significantly higher engagement than 2022, when 21,000 clicks were made.

The Communications & Giving Team established a new Legacy Giving offering for supporters, partnering with FareWills to offer free will-writing services to donors looking to leave part of their estate to Afghanaid. We also expanded our use of traditional media to elicit new supporters, and expanded the offerings available to Muslim supporters online, publishing Afghanaid’s first appeals for Zakat and Sadaqah donations.

The team also worked cross-departmentally to promote Afghanaid’s reputation and presence in climate spaces. With match-funding from two Trusts and Foundations, Afghanaid’s climate-focused summer appeal raised over £35,000. As part of this, the team produced a high-quality short film, Be The Light, which was shown as part of London Climate Action Week, at Ceres Food Film Festival, the Swedish Film Institute in Stockholm and during COP29. Receiving over 67,000 views across digital platforms, the film received a special mention at the Big Syn International Film Festival, and is nominated in the Smiley Charity Film Awards.

We continued to strengthen relationships with high-profile advocates and funding partners. This included Joss Stone, who, through her foundation, hosted a matchfunding appeal for Afghanaid on International Women’s Day. We were able to achieve our highest number of pledges ever to our Big Give Christmas Challenge campaign, raising over £42,000.

Throughout the year, we organised targeted events for key groups within our supporter community, including the third iteration of our Afghan cultural festival, a November dinner for major donors, and a poetry evening for Shab-e-Yalda in December. We also supported community events, including a fundraising concert hosted by our late Trustee David Page at All Saints West Dulwich church, and collections at Richmond Theatre, who fundraised £10,000 alongside performances of The Kite Runner.

In 2025, the team looks forward to increasing its capacity to generate earned media through increasing human resources in this area, and formalising an advocacy strategy. The team shall also increase their focus on legacy and Islamic giving through approaches established in 2024.

FINANCIAL REVIEW

In the financial year of 2024, income of £15.896 million was recognised, marking a decrease of £3.529 million compared to £19.425 million in 2023.This decline was primarily due to a reduction in multilateral grants and contract revenue, which fell by £4.502 million, particularly £2.929 million from UNOCHA, £834k from WFP, £642k from FAO, and £304k from UNOPS, partially offset by a £207k increase in funding from UN Women.

Government grants and contract income showed a slight increase by £181k, largely driven by an increases in income primarily attributed to projects funded by European Union (£3.056 million), the Sida (£373k), and the GiZ (£854k). These favourable variances were partially offset by a £4.102 million reduction following the conclusion of the UK FCDO-funded Emergency Rural Livelihoods Recovery project.

The remaining net increase of £792k is primarily attributable to contributions from Search for Common Ground (£240k), US AVAAZ (£117k) and Other Grants & Contracts (£971k), and along with income from Trusts & Foundations (£24k). These favourable variances were offset by a £467k increase in Donation and Legacies and other sources £93k. A detailed breakdown of total income by category is provided below:

Charitable expenditure in the year amounted to £16.210 million, a £3.284 million decrease compared to 2023 expenditure of £19.495 million.

The main reason for a reduction of £3.388 million is spending under the Climate Change and Disaster Risk Reduction programme, primarily due to end of the FCDOfunded Emergency Rural Livelihoods Recovery project. Expenditure linked to the Economic Opportunities, Sustainable Livelihoods and Food Security programme pillar increased by £1.008 million, driven by projects funded by European Union (£2.263 million) and the partly offset by FAO (£802k), Vitol Foundation (£372k), and others (£82k).

Expenditure associated with the Basic Services for All decreased slightly by £270k, mainly due to reduced activity on UNOCHA-funded WASH projects. Expenditure under the Emergency Humanitarian Assistance decreased by £1.364 million. This was primarily due to reduced spending on projects funded by WFP (£1.786 million), UNOCHA (£814k), and UNODC (£1.185 million) partly offset by increased expenditure on the WFP (£1.233 million), FAO (£1.124 million), and other initiatives (£64k), which were predominantly spent during 2024.

Expenditure on Cross-Cutting Themes increased by £730k. This increase was largely driven by higher spending on the UN Women project (£298k) and unrestricted projects (£214k). Below is the breakdown of total expenditure by category:

In 2024, a total of £411k appeal funds were utilised to co-fund various humanitarian projects. This includes £244k from the Crisis Appeal Programme, £11k from the By Her Side Appeal, £121k from The Times & Sunday Times Appeal, and £35k from the Earthquake Appeal. Further disbursement of appeal funds is anticipated in 2025.

Reviews of Foreign Exchange transactions identified a total exchange loss of £153k, comprising £142k in unrealised losses, £45k in realised losses and £34k in gains on retranslation of opening balances. The appreciation of the Afghani (AFN) against the United States Dollar (USD) by 0.50% and 1.79% against GBP and 6.10% against Euro respectively which was largely attributed to stringent measures enforced by the Da Afghanistan Bank (DAB). These measures included restrictions on deposit withdrawals, capital outflows, and the prohibition of non-AFN currencies in local transactions.

Risks, uncertainties and management thereof:

Ban on Afghan women working for NGOs

Through 2024, a Taliban 2022 decree prohibiting Afghan women from working with NGOs remained in place, and the situation regarding the rights, roles, and mobility of female staff remained uncertain, challenging our ability to implement gender-inclusive programmes, retain qualified female personnel, and adhere to donor requirements relating to safeguarding, inclusion, and gender equity. Despite these constraints, through careful solutions, female staff in both Afghanaid's head office and provincial offices were able to continue in their vital roles. Female field staff continued to work from home and travel directly to field sites, where they engaged directly with female project participants, further demonstrating Afghanaid’s ability to navigate these challenging circumstances.

Throughout 2024, Afghanaid strengthened trust-building engagement and dialogue with local Taliban authorities and secured incremental but meaningful improvements in women’s access and participation. This has satisfied donors of commitment and capacity to implement gender-inclusive programmes.

Banking sector

Whilst Afghanistan’s banking sector has made considerable progress at the national level over the past 12 months, the sector continues to exhibit systemic vulnerabilities. These include limited liquidity at the provincial level and access to formal banking services remains limited in many rural and district areas, compelling banks and NGOs to utilise Money Service Providers (MSPs) for programme implementation and cashbased interventions. The risk averse nature of international banks and weak correspondent banking networks hinders transfers of funds into Afghanistan.

Afghanaid has taken deliberate and prudent steps to reduce dependence on informal financial mechanisms by transitioning from international and local Hawala transfers to formal banking channels. Our usage of Afghanistan International Bank (AIB), Crown Agents Bank, WU Convera, and the UN Money Transfer System has significantly reduced our reliance on Hawala transfers. We have also established new banking relationships with StoneX, and Ebury, thereby reducing dependency on Barclays and enhancing the speed and reliability of fund transfers into Afghanistan. These strategic measures have lowered cross-border transaction costs, and bolstered the confidence of UK-based banking institutions. Domestically, we have expanded the utilisation of Azizi Bank and Afghanistan International Bank for salary disbursements in Kabul and provincial capitals, for beneficiary cash distributions at both provincial and district levels, and for vendor payments where banking access permits. We continue to hold the majority of our cash in London only transferring cash to Kabul in support of short term operational needs.

The above robust action has mitigated risk of banking and liquidity issues impinging programme delivery and also ensuring that donors are confident of our governance framework.

Currency volatility

Currency volatility continues to present a financial risk, with the Afghani (AFN) often experiencing sharp and unpredictable fluctuations against major international currencies. This volatility exposes Afghanaid to both realised and unrealised foreign exchange (FX) losses, particularly due to the organisation’s multi-currency operating model. While the AFN remains the functional currency for in-country transactions, Afghanaid's financial reporting is conducted in Pounds (GBP). This structural mismatch increases exposure to exchange rate fluctuations, as the bulk of income is received in foreign currencies while the majority of expenditure is incurred in AFN.

Afghanaid is currently undertaking a comprehensive review of its FX risk framework in 2025, with the support of the statutory auditors Crowe. Afghanaid maintains low cash level in AFN to reduce the risk of a major cash devaluation. Contractual negotiation with donors and partners focus on the minimization of currency risk.

Bureaucratic impediments

We continue to face a complex and restrictive regulatory environment shaped by the evolving policies and practices of the Taliban authorities. Bureaucratic hurdles affect project design, and registration, and the negotiation of project memorandums of understanding with the relevant Ministry. Ministries attempt to interfere in donoragreed cost structures present the greatest challenge. These constraints have implications for financial planning and sustainability. The inability to secure timely MoU approvals can delay the launch of projects, impacting annual spending, critical service delivery to vulnerable communities, and potentially jeopardising donor confidence and future funding.

Afghanaid has refined its approach to engagement with line ministries, investing in early and structured dialogue with authorities and designing projects that reflect both donor expectations and the practical realities on the ground in Afghanistan.

Funding

The global ODA-funding landscape for 2025 has been impacted by policy shifts in major donor countries, most notably the USA, but also among Afghanaid’s traditional institutional donors, including the UK, Sweden, Germany, and the EU. This will intensify competition for scarce funding, favouring NGOs with lower operational costs and/or offering greater value for money, and NGOs with substantial unrestricted income streams. Afghanaid has a diverse and comprehensive range of donors. Afghanaid has also signed a significant £22 million, three-year grant with FCDO, pending new funding being available, and the EU has committed an additional £5 million to extend one of their existing grants by another two years from 2026.

We anticipate above referenced projects income of £17.810 million for 2026, comprising £8.805 million in committed income and £9.005 million in potential income. which will generate Head Office cost recoveries totalling £1.716 million. Additionally, we forecast a further £500k in unrestricted fundraising income, derived from individual giving, community events, trusts, and major donors. Moving forward, Afghanaid is planning to increase unrestricted and lightly restricted funding (Appeal funds) to meet shortfalls in institutional restricted funding.

We will continually evaluate whether our current footprint and thematic focus areas align with the future funding climate in the sector. We will scale operations in line with funding levels and will work closely with key donors to demonstrate our ability to continue to deliver high-quality humanitarian and development programming, while ensuring the meaningful engagement of women, and thus maintaining donor confidence in the value of continuing funding.

Security

Afghanaid recognises significant improvements in nationwide physical security compared to the Republican era. However, low level security incidents, particularly in Kabul, orchestrated by armed opposition groups, present a small but continuing risk to our operations, as does the likely increase in crime, as the economy falters. Further threats encompass civil unrest, natural and man-made disasters, workplace accidents, safeguarding incidents, and cyber-attacks. Unfortunately, the International NGO Security Organisation (INSO), which we largely relied on for most security incident reporting and analysis, was expelled from Afghanistan during 2024, temporarily reducing NGOs’ access to triangulated and reliable security related information. Afghanaid maintains robust security policy and protocols as well as strong security infrastructure and remains vigilant and adaptive in a volatile security environment, to ensure staff safety and operational continuity. To actively manage security and safety risks, in 2025, Afghanaid has registered and established an ongoing relationship with UNDSS to fill the gap left by the expulsion of INSO. Regarding Cyber Security, in 2024 Crowe concluded a penetration test to assess Afghanaid’s exposure to cyberattack and proposed corrective actions. To date, 80% of the corrective measures have been implemented, others are planned for 2025, and depending on affordability, 2026.

Afghanaid’s Executive Team is responsible for ensuring that risk management processes are embedded in the day-to-day operations through effective implementation of policies and procedures. The Trustees are ultimately responsible for risk management and the effectiveness of Afghanaid’s internal control systems. Afghanaid has an established Risk Management Committee, comprising of the Directorate, as well as the Heads of Compliance, Safeguarding, and Gender and Inclusion. The Committee provides in-depth review and support in the areas of Risk, Due Diligence, Safeguarding and Fraud and Corruption, anti-money laundering and counter terrorism, to ensure more attention and time is devoted to these areas of our risk framework, and to provide summary reports to the Board of Trustees on a regular basis. The organisational risk register is maintained by the Director of Operations, reviewed quarterly by the Directors, and reviewed on a semi-annual basis by the Finance Committee and the Board of Trustees.

Going Concern

The trustees are required to consider whether it is appropriate for Afghanaid’s accounts to be prepared on a ‘going concern’ basis. These accounts have been prepared on a going concern basis, the assumption underpinning this being that Afghanaid will continue in operational existence for the foreseeable future and has neither the intention nor need to significantly curtail the scale of its operations. In an assessment to support going concern for the 2024 Financial Statements, a detailed review of income and expenditure for 2025-2026 was conducted together with cash flow projections. Regular reassessments will continue to be carried out as necessary and the organisation could adjust operating expenditure in the event that funding is curtailed whilst still maintaining core operating capabilities and, if necessary, draw down on reserves. The trustees are satisfied with the measures implemented to mitigate the risks in Afghanistan’s operating environment. For these reasons, the trustees continue to adopt the going concern basis in preparing the financial statements.

Factors which support this assumption include the following:

1.Further awards from a range of donors have been agreed in the 2025 financial year along with a viable pipeline of future multi-year funding.
2.Continued strong cash management and cash flow projections.
3.The expectation is that we will be able to deliver our programmes. We will adjust core operating costs should our programme activities be severely impacted by either restrictive operating guideline imposed by the authorities or security considerations.

Whilst the risks associated with operating in Afghanistan have the potential for a significant impact on the operations of the organisation, the trustees believe, they are not however considered material uncertainties in relation to Afghanaid’s ability to continue as a going concern.

Reserves

At 31 December 2024, Afghanaid had total reserves of £2.044m, made up of £1.894m of unrestricted reserves and an expendable endowment fund of £150k. This is a decrease from the total reserves of £2.512m as at 31 December 2023.

The total of unrestricted reserves is made up as follows:

General Funds

An amount that allows Afghanaid to pursue its agreed purpose and strategy, specifically to meet short term funding gaps and thereby maintain capacity, to cover short-term working capital needs and potential co-financing requirements. At the end of 2023 this reserve was £884k and decreased to £813k at the end of 2024. The £71k reduction was mainly due to foreign exchange losses.

Fixed Asset Reserve

An amount to cover funds invested in tangible and intangible fixed assets, totalling £25k at the end of 2024 (£34k at the end of 2023).

Appeal Funds

At 31 December 2024, Afghanaid had a designated unrestricted reserve of £527k (2023 £919k) representing appeal funds carried forward at the end of the year amounting to £80k (2023 £307k) from Crisis Appeal Programme, £139k (2023 £150k) By Her Side Appeal, £308k (2023 £429k) The Times & Sunday Times Appeal, and £ nil (2023 £33k) Earthquake Appeal.

Designated Contingency Funds

Working in a complex and insecure environment, such as Afghanistan, makes it important for us to cover the costs which might arise from the risk of having to cancel or seriously curtail planned programmes, or the cost arising from closing and/or relocating all or parts of our operations to the extent that these costs cannot be recovered from donor contracted funding. The trustees believe the costs of winding down the organisation (designated contingency fund) are £530k (£525k in 2023), and this amounts to the minimum reserves level.

The trustees review the reserves policy annually and have decided that a range of £1.5 million to £2 million in respect of general funds and contingency funds is appropriate for the charity. The reserves are primarily used to support working capital needs, to meet the cost of unanticipated severe curtailment of programmes or to clear the liabilities linked with closing part of or, in extreme but unlikely circumstances, the whole organisation, and pay off the accumulated liabilities not recoverable from any unrestricted funding sources.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Afghanaid for the purposes of company law) are responsible for preparing the trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each of the trustees is aware:

there is no relevant audit information of which the charitable company’s auditor is unaware; and

each of the trustees has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees fully subscribe to the tenets of Charity Governance Code which is anchored on seven principles, namely organisational purpose; leadership; integrity; decision-making, risk and control; board effectiveness; diversity; and openness and accountability. The trustees are aware that the Charity Governance Code is not a regulatory requirement but recommends best practice and assists in making well considered decisions, which are in the best interest of the charity.

Auditors

Crowe UK LLP was appointed auditor for the year. In accordance with the provisions of the Companies Act, it is proposed that it be re-appointed auditor for the ensuing year.

The Trustees’ Report, incorporating the Strategic and Directors’ Report, was approved by the trustees on

15th July 2025 ______ and signed on their behalf by:

__________ Christopher Kinder

Chairman Board of Trustees

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF AFGHANAID

Opinion

We have audited the financial statements of Afghanaid (‘the charitable company’) for the year ended 31 December 2024 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2024 and of its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, and the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the

going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 45, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44 (1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006

and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members including significant component audit teams. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, Taxation legislation, and Employment legislation. We also considered compliance with local legislation for the group’s overseas operating segments.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Board of Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Dipesh Chhatralia Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

28 July 2025

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024

		Note	Unrestricted Funds	Restricted Funds	Endowment Funds	2024 Total Funds	2023 Total Funds
			£	£	£	£	£
Income and endowments from:
Donation and Legacies		4a	328,913	-	-	328,913	796,015
Gift in kind Charitable activities Investments			-	1,414,127		1,414,127	1,607,723
	4b		1,010,163	12,968,550	-	13,978,713	16,995,087
			26,757	-	-	26,757	13,780
Other			147,139	-	-	147,139	11,940
Total Expenditure on: Raising funds Rural Rehabilitations & Emergencies Total Net income/(expenditure) Other recognised gains: Gains/ (losses) on foreign exchange retranslation Net Movement in Funds Reconciliation of funds:	1,512,972 14,382,677 - 15,895,649 19,424,545 219,586 - - 219,586 161,002 1,608,071 14,382,677 - 15,990,748 16,160,839 5 1,827,657 14,382,677 - 16,210,334 19,494,540 (314,685) - - (314,684) (69,995) (153,093) - - (153,093) (518,080) 16 (467,778) - - (467,778) (588,075) -
Total funds brought forward Total funds carried forward			2,361,876	-	150,000	2,511,876	3,099,951
		16	1,894,098	-	150,000	2,044,098	2,511,876

COMPANY NUMBER: 3034888

BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2024

		As at		As at
	Notes	31 December 2024		31 December 2023
		£	£	£
Fixed Assets:
Intangible assets	9		15,783	28,298
Tangible assets	10		8,756	5,530
Total fixed assets			24,539	33,828
Current Assets:
Debtors	11	1,110,983		2,395,558
Cash at bank and in hand	12	6,761,578		5,047,738
Total current assets		7,872,561		7,443,296
Creditors: Amounts
falling due within one year	13	5,853,002		4,965,248
Net Current Assets			2,019,559	2,478,048
Total Net Assets			2,044,098	2,511,876
The funds of the charity:
Endowment Fund			150,000	150,000
Restricted Appeal Funds				-
Unrestricted Funds
Designated Contingency Funds			530,000	525,000
Appeal Funds			526,986	919,404
Fixed Assets Reserve			24,539	33,828
General Funds			812,573	883,644
Subtotal			1,894,098	2,361,876
Total charity funds	16		2,044,098	2,511,876

Approved by the trustees, and authorised for distribution, on _____signed on their behalf 15th July 2025 by:

Christopher Kinder Chairman

Duncan Wood Treasurer

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

	As at 31	As at 31
	December 2024	December 2023
Cash flows from operating activities:	£	£
Net cash provided by operating activities	1,848,778	(2,145,940)
Cash flows from investing activities:
Interest received	26,757	13,780
Purchase of tangible fixed assets	(8,602)	-
Net cash (used in ) / provided by financing activities	18,155	13,780
Change in cash and cash equivalents during the reporting	1,866,933	(2,132,160)
period
Cash and cash equivalents at the beginning of the	5,047,738	7,697,978
reporting period
Change in cash and cash equivalents due to exchange rate	(153,093)	(518,080)
movements
Cash and cash equivalents at the end of the	6,761,578	5,047,738
reporting period
Net income/(expenditure) for the reporting period:	(314,685)	(69,995)
Adjustments for:
Returns on investment	(26,757)	(13,780)
Depreciation and amortisation of fixed assets	18,509	28,430
Revaluation of tangible fixed assets	(618)	(10,039)
(Increase) / decrease in debtors	1,284,575	3,492,834
Increase / (decrease) in creditors	887,754	(5,573,390)
Net cash flow from operating activities	1,848,778	(2,145,940)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 1: CHARITY INFORMATION

Afghanaid is a company limited by guarantee, which is incorporated in England and Wales. Afghanaid is a registered charity in England and Wales, and Scotland, and is a public benefit entity. The address of the registered office is Omnibus Business Centre, 39-41 North Road, London N7 9DP.

Company Name: Afghanaid, LBG
Company No. 3034888
Charity Nos. 1045348 (England and Wales)

SC044614 (Scotland)

NOTE 2: CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of Afghanaid’s accounting policies, which are described in note 3, trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the trustees and management, the following are the most significant accounting estimates and areas of judgement:

The treatment of deferred income balances related to restricted contracts as monetary liabilities.
The judgement that expenditure incurred on performance related grants is a reliable basis for estimating the right to receive payment for the work received.
The judgement that, subject to evidence to the contrary, all expenditure incurred under a signed funding agreement is recoverable from funders.
The judgement that there is no provision required for disallowed expenditure under donor funding agreements.
Gifts-in-kind received during the reporting period have been valued at fair value of these gifts based on donor published commodities rates.

NOTE 3: ACCOUNTING POLICIES

The principal accounting policies which have been adopted have been set out below:

1.Accounting Convention

The accounts (financial statements) have been prepared under the historical cost convention and in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland and UK Generally Accepted Practice.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 3: ACCOUNTING POLICIES (CONTINUED)

2. Branch accounting

Operations in Afghanistan are treated as a branch of Afghanaid and their results are included herein.

3. Preparation of the accounts on a going concern basis

The trustees are required to consider whether it is appropriate for Afghanaid’s accounts to be prepared on a ‘going concern’ basis. These accounts have been prepared on a going concern basis, the assumption underpinning this being that Afghanaid will continue in operational existence for the foreseeable future and has neither the intention nor need to significantly curtail the scale of its operations. In an assessment to support going concern for the 2024 Financial Statements, a detailed review of income and expenditure for 2025 and 2026 was conducted together with cash flow projections. Regular reassessments will continue to be carried out and the organisation could adjust operating expenditure in the event that funding is curtailed whilst still maintaining core operating capabilities and, if necessary, draw down on reserves. The trustees are satisfied with the measures implemented to mitigate the risks in Afghanistan’s operating environment. For these reasons, the trustees continue to adopt the going concern basis in preparing the financial statements. More information is included within the risks and uncertainties section of the trustees’ report.

4. Functional/Presentation Currency

The functional currency of Afghanaid and its branches is considered to be Afghanis because that is the currency of the primary economic environment in which the charity operates i.e. Afghanistan. However, in accordance with FRS 102, the financial statements are presented in Pound Sterling (GBP), which is the reporting currency.

5. Income

All incoming resources are included in the Statement of Financial Activities (SOFA) when Afghanaid is entitled to the income, when it is probable that the incoming resource will be received and the amount can be quantified with reasonable accuracy.

The following specific policies apply to categories of income:

Grants from governments, institutional donors and trusts & foundations: due to the fragile nature of the areas that we work, entitlement to programmatic income is recognised when the underlying expenditure has been incurred. For those agreements related to specific conditions, income is recognised in the SOFA when the conditions have been substantially met and expenditure incurred. For those agreements with unconditional entitlement, income is recognised based on expenditure incurred. Where income is received in advance of its recognition in the SOFA it is deferred as a liability until probability exists that the entitlement to that income has been incurred. Where entitlement occurs before incoming resources are received, the income is accrued.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 3: ACCOUNTING POLICIES (CONTINUED)

Performance based contracts: where Afghanaid provides goods and/or services in return for a fee as part of its charitable activities such contractual income is recognised as income in the SOFA to the extent that Afghanaid has provided the goods and/or services thereby earning the right to consideration by its performance.

Appeals income: Appeals income is raised from individual giving, trusts, and major donors and is recognised as income in the SOFA when it is received. The funds will be used according to implementation plans developed in response to the needs specified in the appeal, and must be approved by directors according to their authority limits.

Investment income is recognised when receivable.

Gift in kind: Gifts-in-kind represent non-monetary contributions in the form of donated goods, services and facilities made by benefactors to support the organisation's mission and activities. An equivalent amount is included in the SOFA at fair value of these gifts, which is determined using average market price rates published by the World Food Programme (WFP)

Other income, including proceeds from the sale of assets, is recognised in the period it is receivable and to the extent that Afghanaid has provided the goods or services.

6. Expenditure

Resources expended are accounted for on an accruals basis and have been classified under headings that aggregate all costs related to the category. Cost of raising funds relates to direct costs incurred in obtaining future funding, including an allocation of salaries and resources used. Direct charitable expenditure comprises all expenditure directly relating to the objects of the charitable company.

Support costs comprise all administrative services supplied centrally, identifiable as wholly or mainly in support of the emergency and rural rehabilitation programmes as well as governance costs related to the management of Afghanaid's assets, organizational management and compliance with constitutional and statutory requirements. These have been apportioned to the charitable activities and costs of raising funds on the basis of staff time spent on each area.

7. Intangible Fixed Assets

Software and website development costs are capitalised within intangible assets as they can be identified with a specific project anticipated to produce future benefits. Once brought into use they will be amortised on the straight-line basis over the anticipated life of the benefits (generally four years), arising from the completed project.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 3: ACCOUNTING POLICIES (CONTINUED)

Tangible Fixed Assets

Depreciation is provided on a straight-line basis on all tangible fixed assets at rates calculated to write off the cost of each asset over its expected useful life as follows:

Motor vehicles 4 years Office equipment 4 years Plant and machinery 5 years

Items of equipment are capitalised where the purchase price exceeds £3,979 (US$ 5,000). Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

8. Financial Instruments

Afghanaid has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. Financial assets held at fair value at the Balance Sheet date comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors.

9. Fund Accounting

Restricted funds are donations and grants for which the donor has specified an intention to support a particular aspect of Afghanaid's charitable activities, together with investment income accruing directly to those restricted funds. Only expenditure which meets the criteria agreed by the donor is charged against each fund. Surpluses are held until they can be fully expended on the activity to which the restriction applies. In the case of grant funds, unspent balances are usually returnable at the end of the grant period.

Endowment funds are resources held by Afghanaid on trust, comprising monetary and other assets which represent capital. Expendable endowment funds are held for the purpose specified by the donor. The balance of expendable endowment funds is maintained to provide working capital for the charity, structured as a stability fund to meet cash flow needs while preserving resources for core expenses. This grant acts as a reserve, accessible as required, with the expectation of replenishment during favourable conditions.

All other funds are unrestricted income and may be used for any of the organisation's charitable purposes.

General reserve: an amount that allows Afghanaid to pursue its agreed purpose and strategy, specifically to meet short term funding gaps and thereby maintain capacity, to cover short term cash flow needs and potential co-financing requirements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 3: ACCOUNTING POLICIES (CONTINUED)

Designated funds are amounts set aside from the general fund which are being held at the discretion of the Afghanaid Board of Trustees.

10) Foreign Currency Transactions

Transactions in foreign currencies are recorded using the monthly average rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are not retranslated. Gains or losses on transactions are included in the Statement of Financial Activities. Where exchange differences are directly attributable to a particular fund, they have been included in the movements against that fund.

11) Leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 4A: DONATIONS AND LEGACIES

	Unrestricted Funds Restricted Funds Total 2024 Unrestricted Funds Restricted Funds Total 2023
	£ £ £ £ £ £
Donations from Crisis Appeal	17,043 - 17,043 30,661 - 30,661
Donations from The Times & Sunday Times Appeal	- - - 253,830 - 253,830
Earthquake Appeal	1,851 1,851 68,654 - 68,654
Others	310,019 - 310,019 442,870 - 442,870
TOTAL	328,913 - 328,913 796,015 - 796,015

NOTE 4B: GRANTS & CONTRACTS FOR RURAL REHABILITATION & EMERGENCIES

	Unrestricted Funds £	Restricted Funds £	Total 2024 £	Unrestricted Funds £	Restricted Funds £
Government Grants & Contracts (Note 4b.1 & 4b.2)
European Commission	-	3,869,764	3,869,764	-	813,373	813,373
UK Foreign, Commonwealth, and Development Office (FCDO)	-	-	-	-	4,101,719	4,101,719
Swedish International Development Cooperation Agency (SIDA)	-	4,047,502	4,047,502	-	3,674,959	3,674,959
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)	-	1,032,763	1,032,763	-	179,031	179,031
Sub total	-	8,950,029	8,950,029	-	8,769,082	8,769,082

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Mulilateral Grants & Contracts
United Nations World Food Programme (WFP)	-	1,118,286	1,118,286	-	1,952,250	1,952,250
United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA)	-	620,003	620,003	-	3,549,255	3,549,255
United Nations Food and Agriculture Organization (FAO)	-	414,820	414,820	-	1,056,600	1,056,600
United Nations Office for Projects Services (UNOPS)	880,860	-	880,860	1,184,717	-	1,184,717
United Nations Women (UN Women) Sub total	-	298,193	298,193		91,741	91,741
	880,860	2,451,302	3,332,162	1,184,717	6,649,846	7,834,563

Search for Common Ground (SfCG)	-	392,323	392,323	-	152,133	152,133
US- Avaaz	-	117,448	117,448	-	-	-
Trusts & Foundations Grants	-	214,515	214,515	-	190,612	190,612
Other Grants & Contracts Sub total TOTAL	129,303	842,933	972,236	47,023	1,674	1,674
	129,303	1,567,219	1,696,522	47,023	344,419	391,442
	1,010,163	12,968,550	13,978,713	1,231,740	15,763,347	16,995,087

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 4B.1: INCOME FROM GOVERNMENT GRANTS & CONTRACTS (2024)

Income from governments during the reporting period include:

Government/Agency	Nature	Amount £	Unfulfilled conditions
European Commission	Inclusive Livelihoods Recovery and Community Resilience	3,869,764	None
Swedish International Development Cooperation Agency (SDC)	Grants for Community Based-Eco-Disaster Risk Reduction/ Climate Change Adaptation.	4,047,502	None
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) TOTAL	Grants for Forest Landscape Restoration and Transitional Development Assistance.	1,032,763	None
		8,950,029

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 4B.2: INCOME FROM GOVERNMENT GRANTS & CONTRACTS (2023)

Income from governments during the reporting period include:

Government/Agency	Nature	Amount £	Unfulfilled conditions
European Commission	Inclusive Livelihoods Recovery and Community Resilience	813,373	None
UK Foreign, Commonwealth, and Development Office (FCDO)	Grants for Emergency Rural Livelihoods Recovery	4,101,719	None
Swedish International Development Cooperation Agency (SIDA)	Grants for Community Based-Eco-Disaster Risk Reduction	3,674,959	None
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) TOTAL	Grants for Forest Landscape Restoration and Transitional Development Assistance.	179,031	None
		8,769,082

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 5: EXPENDITURE

NOTE 5: EXPENDITURE
	Raising funds		Rural Rehabilitations & Emergencies		2024 Total		2023 Total
	£		£		£		£
Staff costs	100,860		3,768,233		3,869,093		4,263,356
Sub-Grants/Sub-Contracts to Implementing Partners (note 5.1 & 5.2)	-		5,455,896		5,455,896		3,784,461
Direct costs	101,535		4,710,224		4,811,759		9,233,233
Gift in kind	-		1,414,127		1,414,127		1,607,723
Support costs (note 5.3)	17,191		642,268		659,459		605,767
Total	219,586		15,990,748		16,210,334		19,494,540
NOTE 5.1: EXPENDITURE
		Grants to Implementing Partners		Support Costs		Year ended 31 December 2024		Year ended 31 December 2023
		£		£		£		£
Basic Services		244,100		-		244,100		35,456
Economic Opportunities, Sustainable Livelihoods & Food Security		1,813,809		-		1,813,809		399,200
Climate Change and Disaster Risk Reduction		2,519,273		-		2,519,273		2,704,576
Emergency Humanitarian Assistance		878,714		-		878,714		645,229
Common Costs, Cross-cutting Themes & Other Unallocated		-		642,268		642,268		596,819
Total		5,455,896		642,268		6,098,164		4,381,280

NOTE 5.2: SUB GRANTS PER PARTNER (excluding support costs)

	Year ended 31 December 2024 (£)	Year ended 31 December 2023 (£)
Concern Worldwide Afghanistan	1,679,854	670,382
Action Aid – Afghanistan	348,696	513,845
Save the Children Afghanistan (SCI)	1,174,041	965,204
Deutsche Welthungerhilfee.V (WHH)	658,727	199,810
Coordination of Humanitarian Assistance (CHA)	650,736	392,215
Rural Rehabilitation Association for Afghanistan (RRAA)	318,187	288,470
The Liaison Office (TLO)	159,671	667,790
Handicap International (HI)	131,277	71,382
Efforts Organization for Women Advocacy (EOWA)	-	15,363
Women’s Activities and Social Services Association	100,950	-
Danish Refugee Council (DRC)	180,816	-
Others (Various with below £5k)	52,941	-
Total	5,455,896	3,784,461

100% of grants are to institutions; no grants are paid to individuals (2023: £ nil).

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 5.3: ANALYSIS OF SUPPORT COSTS

	Raising funds	Rural Rehabilitations & Emergencies	Year ended 31 December 2024	Year ended 31 December 2023
			Total	Total
	£	£	£	£
Staff costs	11,773	319,357	331,130	186,554
Governance	1,639	65,513	67,152	61,730
Administrative costs	3,779	257,398	261,177	357,483
Total	17,191	642,268	659,459	605,767

NOTE 6: NET INCOME FOR THE YEAR IS STATED AFTER CHARGING:

	Year ended 31 December 2024	Year ended 31 December 2023
	£	£
Amortisation and depreciation	18,509	28,430
Trustees' travel expenses	1,026	1,669
Auditors' remuneration:
Afghanistan – Other Auditors	10,997	11,475
United Kingdom – Crowe U.K. LLP	36,960	35,220
Operating lease payments:
Land and buildings	208,787	217,105
Other assets	3,978	4,209

NOTE 7: STAFF COSTS

NOTE 7: STAFF COSTS
	Year ended 31 December 2024	Year ended 31 December 2023
	£	£
Staff costs were as follows:
Gross salaries - Afghanistan	3,265,873	3,603,314
Gross salaries – UK	421,791	324,774
Pension and Social security costs	512,559	521,822
Total	4,200,223	4,449,910

No trustee received any remuneration for their services in 2024 (nil in 2023), and no redundancy or termination payments were made during 2024 (£nil in 2023).

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Number of employees who earned more than £60,000 during the period:

	Year ended 31 December 2024	Year ended 31 December 2023
£60,000 - £69,999	3	1
£70,000 - £79,999	-	2
£80,000 - £89,999	5	3
£90,000 - £99,999	1	1
£100,000 - £109,999	1	1
£110,000 - £119,999	-	2
£120,000 - £129,999	1	-
£150,000 - £159,999	-	1
£160,000 - £169,999	1	-

In addition to the amounts disclosed above, Afghanaid have incurred security costs of £80,231 (2023: £63,846) and employer national insurance contributions of £11,672 (2023: £6,839).

	Year ended 31 December 2024	Year ended 31 December 2023
Key Management Personnel Remuneration	£803,324	£806,149
Key management personnel costs include salaries as well as all associated benefits for the following key management positions: Managing Director Director Operations Director Programme Development and Impact Learning Programme Implementation & Quality Director Deputy Director Climate Action Deputy Director of Programme Performance and Monitoring Deputy Director Human Resources

Staff Numbers Staff numbers indicate the average head count during the reporting period.	Staff Numbers Staff numbers indicate the average head count during the reporting period.	Staff Numbers Staff numbers indicate the average head count during the reporting period.
United Kingdom	No. in 2024	No. in 2023
National Staff	10	8
Afghanistan
International Staff	12	12
National Staff-Fixed Term	297	358
National Staff- Freelance	88	213
National Staff- Consultant	14	2
Total	421	593

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 8: TAXATION

As a charity, Afghanaid is exempt from tax on income and gains under sections 466 to 493 of the Corporation Tax Act 2010, to the extent that all income is applied for charitable purposes. No tax charges have arisen in the charity in the current or prior year.

NOTE 9: INTANGIBLE FIXED ASSETS

Cost		Software
		£
At 01 January 2024		118,087
Additions in the year		-
Disposals in the year	-
Forex Movement During the year	2,411
At 31 December 2024	120,498

Amortisation
At 01 January 2024	(89,789)
Charge for the year	(13,032)
Disposals in the year	-
Forex Movement During the year	(1,894)
At 31 December 2024	(104,715)

Net Book Value
At 31 December 2024		15,783
At 31 December 2023		28,298

NOTE 10: TANGIBLE FIXED ASSETS

	Motor Vehicles (£)	Office Equipment (£)	Total (£)
Cost			Total
At 01 January 2024	573,238	221,823	795,061
Additions in the year	-	8,602	8,602
Forex movement during the year	10,469	(49,092)	(38,623)
At 31 December 2024	583,707	181,333	765,040

Depreciation
At 01 January 2024	(573,238)	(216,293)	(789,531)
Charge for the year	-	(5,477)	(5,477)
Forex movement during the year	(10,469)	49,193	38,724
At 31 December 2024	(583,707)	(172,577)	(756,284)

Net Book Value
At 31 December 2024	-	8,756	8,756
At 31 December 2023	-	5,530	5,530

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 11: DEBTORS

NOTE 11: DEBTORS
Cost	2024	2023
	£	£
Prepayments	35,279	38,495
Grants receivable	772,487	908,238
Accrued income	211,021	1,329,676
Other debtors	92,196	119,149
Total Debtors	1,110,983	2,395,558
NOTE 12: CASH & CASH EQUIVALENTS
Cost	2024	2023
	£	£
Cash at bank	6,747,846	5,033,195
Cash in hand	13,732	14,543
Total Cash & Cash Equivalents	6,761,578	5,047,738

NOTE 13: CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2024	2023
	£	£
Trade creditors	244,515	615,275
Deferred income (Note 13.1)	4,029,006	3,095,016
Grants payable	619,233	128,453
Accruals	266,262	339,118
Taxation and social security	284,942	402,541
Other creditors	409,044	384,845
Total Creditors	5,853,002	4,965,248

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 13.1: DEFERRED INCOME

NOTE 13.1: DEFERRED INCOME
Award Name	Balance at 01 January 2024	Receipts	Release to SOFA	Balance at 31 December 2024
	£	£	£	£
Afghanistan Resilience Consortium Project (SIDA)	14,371	4,623,759	(4,047,500)	590,630
Inclusive Livelihoods Recovery & Community Resilience (EU)	1,291,815	2,567,321	(3,087,390)	771,746
Forest Landscape Restoration for Food Security (GiZ)	116,233	217,685	(321,948)	11,970
Women's SHGs (Ignite)	151,307	160,822	(199,383)	112,746
Food Security, Climate and Resources (GiZ)	344,787	477,677	(710,815)	111,649
Emergency Food Assistance-Daikundi (FAO)	372,784	128,700	(501,484)	-
Emergency Water Source Repair (UNOCHA)	374,151	-	(374,151)	-
Disaster Resilience and Community Development (Hilton Foundation)	392,079	-	(392,079)	--
Programme to Renew Collaborative Civic Space (FCDO)	-	792,331	(792,331)	-
Resilience Building Programme- Samangan (WFP)	-	330,487	(330,487)	-
Strengthening the Resilience of Afghan Women (UN-Women)	-	298,193	(298,193)	-
Food Security Project Daikundi (FAO)	-	257,064	(257,064)	-
Emergency Livelihood Support (FAO)	-	148,926	(148,926)	-
Winterization Support to EQ-Affected People in HRT (US-Avaaz)	-	117,448	(117,448)	-
Climate Change Adaptation Rural Livelihoods (European Union)	-	2,798,586	(782,374)	2,016,212
Winterization Assistance in Ghor (UNOCHA)	-	405,278	(40,592)	364,686
Others	37,489	578,264	(566,385)	49,367
Total Deferred Income	3,095,016	13,902,541	(12,968,550)	4,029,006

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 14: OPERATING LEASE COMMITMENTS

NOTE 14: OPERATING LEASE COMMITMENTS	NOTE 14: OPERATING LEASE COMMITMENTS	NOTE 14: OPERATING LEASE COMMITMENTS
Afghanaid has total commitments under non-cancellable operating leases as follows
	2024 (£)	2023 (£)
Land and Buildings
Within one year	44,801	42,851
Other assets
Within one year	3,978	4,209
Total Operating Lease Commitments	48,779	47,060

NOTE 15: ANALYSIS OF NET ASSETS BETWEEN FUNDS (2024)

	Expendable Endowment Funds	Unrestricted Funds	Restricted Funds	Total Funds 2024
	£	£	£	£
Total fixed assets	-	24,539	-	24,539
Current assets	150,000	7,722,561	-	7,872,561
Current liabilities	-	(5,853,002)	-	(5,853,002)

Net assets at 31 December 2024	150,000	1,894,098	-	2,044,098
NOTE 15: ANALYSIS OF NET ASSETS BETWEEN FUNDS (2023)
	Expendable Endowment Funds	Unrestricted Funds	Restricted Funds	Total Funds 2023
	£	£	£	£
Total fixed assets	-	33,828	-	33,828
Current assets	150,000	7,293,296	-	7,443,296
Current liabilities	-	(4,965,248)	-	(4,965,248)

Net assets at 31 December 2023	150,000	2,361,876	-	2,511,876

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 16: FUNDS MOVEMENT (2024)

	At 1 January 2024 £	Income £	Expenditure £	Gains, (Losses) £	Transfers £	At 31 December 2024 £
Endowment Funds:	150,000	-	-	-	-	150,000
Total Restricted Funds (Note 16.1)	-	14,382,677	(14,382,677)	-	-	-

Total Unrestricted Funds
Designated Contingency Funds	525,000	-	-	-	5,000	530,000
Appeal Funds (Note 16.2)	919,404	18,894	(411,352)	40	-	526,986
Fixed Assets Reserve	33,828	-	(9,723)	434		24,539
General Funds Subtotal Total Fund	883,644	1,494,078	(1,406,582)	(153,567)	(5,000)	812,573
	2,361,876	1,512,972	(1,827,657)	(153,093)	-	1,894,098
	2,511,876	15,895,649	(16,210,334)	(153,093)	-	2,044,098

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 16.1: RESTRICTED FUNDS MOVEMENT (2024)

	At 1 January 2024 £	Income £	Expenditure £	At 31 December 2024 £
Climate Change Adaptation and Rural Livelihoods (EU)	-	782,374	(782,374)	-
Community Assistance Recovery & Empowerment (Hilton Foundation)	-	392,323	(392,323)	-
Community Based Eco-DRR (CBED)-Phase II (Sida)	-	4,047,502	(4,047,502)	-
Emergency Food Assistance-Daikundi (UNOCHA)	-	501,484	(501,484)	-
Forest Landscape Restoration Food Security (GiZ)	-	321,948	(321,948)	-
Inclusive Livelihoods Recovery & Community Resilience (EU)	-	3,087,390	(3,087,390)	-
Renew Collaborative Civic Space (FCDO)	-	792,331	(792,331)	-
Resilience Building Program-Ghor (WFP)	-	787,799	(787,799)	-
Resilience Building Program-Samangan (WFP)	-	330,487	(330,487)	-
Water And Women (GiZ)	-	710,815	(710,815)	-
Gift in Kind	-	1,414,127	(1,414,127)	-
Other (Various with income below £300k)		1,214,097	(1,214,097)	-
TOTAL	-	14,382,677	(14,382,677)	-

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 16.2: APPEAL FUNDS MOVEMENT (2024)

NOTE 16.2: APPEAL FUNDS MOVEMENT (2024)	NOTE 16.2: APPEAL FUNDS MOVEMENT (2024)
		At 1 January 2024 £	Income £		Expenditure £		Gains, (Losses) £		Transfers £		At 31 December 2024 £
Crisis Appeal Program Funds		307,053	17,043		(243,968)		60		-		80,188
By Her Side Appeal Funds		150,090	-		(11,440)		-		-		138,650
The Times & Sunday Times Appeal Funds		428,788	-		(120,640)		-		-		308,148
Earthquake Appeal		33,473	1,851		(35,304)		(20)				-
Total Fund		919,404	18,894		(411,352)		40		-		526,986
Endowment Funds: Total Restricted Funds Total Unrestricted Funds Designated Contingency Funds Appeal Funds (Note 16.4) Fixed Assets Reserve General Funds Subtotal Total Fund NOTE 16.3: FUNDS MOVEMENT (2023)	At 1 January 2023 £			Income £		Expenditure £		Gains, (Losses) £		Transfers £		At 31 December 2023 £
	150,000			-		-		-		-		150,000
	445,069			17,371,070		(17,854,439)		38,300		-		-

	450,000			-		-		-		75,000		525,000
	960,443			353,145		(378,073)		(16,111)		-		919,404
	52,219			-		(24,900)		6,509				33,828
	1,042,220			1,700,330		(1,237,128)		(546,778)		(75,000)		883,644
	2,504,882			2,053,475		(1,640,101)		(556,380)		-		2,361,876
	3,099,951			19,424,545		(19,494,540)		(518,080)		-		2,511,876

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 16.4: APPEAL FUNDS MOVEMENT (2023)

	At 1 January 2023 £	Income £	Expenditure £	Gains, (Losses) £	Transfers £	At 31 December 2023 £
Crisis Appeal Program Funds	528,347	30,661	(250,949)	(1,006)	-	307,053
By Her Side Appeal Funds	163,975	-	(13,885)	-	-	150,090
The Times & Sunday Times Appeal Funds	268,121	253,830	(77,783)	(15,380)	-	428,788
Earthquake Appeal Total Fund	-	68,654	(35,456)	275		33,473
	960,443	353,145	(378,073)	(16,111)	-	919,404

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

NOTE 17: RELATED PARTIES

There were no related party transactions in 2024 (Nil 2023).

END

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2024-12-31-accounts

Annual Report 2024

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Table of contents

Reference and Administrative Information Statement from the Managing Director Report of the Trustees

Governance and Management

Strategic Report

Basic Services for All

Success Story

Climate Change Adaptation and Disaster Risk Reduction

Economic Opportunities, Sustainable Livelihoods and Food Security

Emergency Humanitarian Assistance Programming

Cross Cutting Themes

Gender and Inclusion

Good Governance and Community Development

Conflict Mitigation and Peacebuilding

2025 Programme Plans

Afghanaid People

Staff Profiles

Our Donors and Supporters

Communications

Financial Review

Statement of Trustees’ Responsibilities

Independent Auditor’s Report to the Members and the Trustees of Afghanaid

REFERENCE AND ADMINISTRATIVE INFORMATION

STATEMENT FROM THE MANAGING DIRECTOR

REPORT OF THE TRUSTEES

Governance and Management

Appointment of Trustees

Policies and Procedures on Training of Trustees

Organisational Decision-Making

Pay and Remuneration

Public Benefit

Safeguarding

Subcontracting and Grant Making Arrangements

Fundraising

STRATEGIC REPORT

History

Present Day

Programmes

OUR PROGRAMMES IN 2024

Basic Services for all

Climate Change and Disaster Risk Reduction

Mohammad Amin’s story

Promoting peace and prosperity through natural resource management

Across Afghanistan, repeated droughts have made life and livelihoods increasingly challenging, igniting conflicts over shared resources.

Economic Opportunities, Sustainable Livelihoods and Food Security

Abdul Razaq’s story

Revitalising rural livelihoods

Emergency Humanitarian Assistance

Sayed Nasir’s story

Supporting families in the wake of disaster

Cross Cutting Themes

Gender and Inclusion

Restrictions on women’s rights in Afghanistan continued to worsen, severely limiting women’s mobility, education and participation in public life, making it even more difficult for them to access livelihood opportunities, support services, and decision-making spaces.

Amina’s story

Rewriting the future through entrepreneurship

Good Governance and Community Development

Conflict Mitigation and Peacebuilding

2025 PROGRAMME PLANS

Afghanistan begins 2025 amidst continued humanitarian needs across the country, driven by economic difficulties and sombre agroclimatic forecasts.

AFGHANAID PEOPLE

Staff Spotlight

Fariha Frotan

Agricultural Officer

Staff Spotlight

Shakirullah Rasheed Engineer

OUR DONORS AND SUPPORTERS

In 2024, Afghanaid received humanitarian and development funding from the following institutional donors:

We also received funding from the following Trusts and Foundations and corporate donors:

COMMUNICATIONS

FINANCIAL REVIEW

Risks, uncertainties and management thereof:

Ban on Afghan women working for NGOs

Banking sector

Currency volatility

Bureaucratic impediments

Funding

Security

Going Concern