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2021-10-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS OF MUSLIM CHARITY HELPING THE NEEDY

FOR THE YEAR ENDED 31 OCTOBER 2021

TABLE OF CONTENTS

VICE CHAIRMAN’S MESSAGE 3
REFERENCE AND ADMINISTRATIVE
DETAILS
 4
STRUCTURE, GOVERNANCE
AND MANAGEMENT 5
OBJECTIVES AND STRATEGIC
ACTIVITIES FOR THE PUBLIC BENEFIT 7
THE YEAR AT A GLANCE
 9
EMERGENCIES 10
Yemen Emergency
 10
Gaza Emergency
 12
Rohingya Emergency
 14
Lebanon Emergency
 16
Winter Emergency
 18
FEED A CHILD
 20
CHILDREN OF THE WORLD
Rescue A Child
 22
Supporting Special Children
 24
Orphan Sponsorship
 26
Hafz Sponsorship
 27
Combating Child Sexual Exploitation
 28
Adopt A School
 29
ZAKAT
Eye Cataract Surgery
 30
Homes For The Zakat Eligible 31
Zakat For Business Startups
Use Our Zakat Calculator
 32
33
SADAQAH JARIYAH 34
HONOURING OUR MOTHERS
Safe Deliveries 38
Infant Incubators 39
Ambulances 40

SAFE WATER

SAFE WATER
Water Hand Pumps
 42
Wate Wells 44
Water Tankers 45
Solar Water Wells
 46
MASJID CONSTRUCTION 48

OTHER PROJECTS

UK Homeless Community
 50
Gifts 52
Islamic Wills 54
Ajwa And Medjoul Dates
 55
Qurbani
 56
Aqiqah And Animal Sacrifce
 58
Fidyah & Kafarah
 60
NEWS 62
#TEAM MC 64
DONATION FORM 66
OTHER WAYS TO DONATE 67
PLANS FOR THE FUTURE 68
FINANCIAL REVIEW 70
TRUSTEES’ RESPONSIBILITIES
STATEMENT 72
INDEPENDENT AUDITOR’S
REPORT 74
STATEMENT OF FINANCIAL
ACTIVITIES 78
STATEMENT OF FINANCIAL
POSITION 79
STATEMENT OF CASH FLOWS 80
NOTES TO THE FINANCIAL 81
STATEMENTS

Cover Photo: A child smiles to camera at the site of our Bread Bakery project where we serve fresh bread every day to families in the IDP Camps, Aden, Yemen.

A MESSAGE FROM OUR

VICE CHAIRMAN

Dear Friends, Assalamu Alaykum,

The compassion and generosity shown by donors and supporters has been inspiring for all of us and indeed greatly beneficial to those less privileged around the world. Once again, I find myself humbled and incredibly moved by your consideration and kindness.

The past year has been another difficult year, and despite all the challenges posed by the Covid-19 pandemic globally, your generosity has continued and so the work of helping the needy has also continued. Together, we have supported almost 1.7 million vulnerable people in need during the past year, and we are sincerely grateful for your commitment and continued trust.

This annual report highlights some of our recent achievements and activities and also documents our financial statements for the year ended 31[st] October 2021. I hope you enjoy browsing through this brochure, bringing to light the incredible work that would not be possible without you.

Ma’as Salaam,

Bakhtyar H. Pirzada, Vice Chairman

DONATE | www.muslimcharity.org.uk

03

VICE CHAIRMAN’S MESSAGE

or call us on 03000 111 786

REFERENCE AND ADMINISTRATIVE DETAILS

The trustees, who are also directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31[st] October 2021.

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||| |---|---| |Charity Number:|1078488| |Company Number:|03867865| |Registered Office:|Muslim Charity, Eaton Hall, Retford,| |Nottinghamshire DN22 0PR (UK)| |Trustees:|Mr Muhammad Imdad Hussain Pirzada| |Mr Bakhtyar Haider Pirzada| |Mrs Ghulam Fatima| |Mrs Aneesa Hussain| |Mr Ali Qudar Raja| |Mr Mohammed Yousaf| |Legal Advisors:|Lee Bolton Monier-Williams LLP| |1 The Sanctuary, Westminster, London SW1P 3JT| |Auditor:|KBM UK Limited, 1 Concord Business Centre| |Concord Road, London W3 0TJ| |Bankers:|TSB Bank| |PO Box 373, Leeds, LS14 9GQ| |HSBC| |31 Carolgate, Retford DN22 6DA|

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REFERENCE AND ADMINISTRATIVE DETAILS

04

STRUCTURE, GOVERNANCE AND MANAGEMENT

Board of Trustees

Key Personnel

The Board of Trustees sets our future aims and priorities, focusing on strategic planning and governance and also evaluates our performance and progress in our work to alleviate poverty and suffering.

The Board of Trustees appraises the Senior Management Team and can make appointments to it as well as dismissals. The Board of Trustees also makes sure that we satisfy the regulatory requirements on us as a charity, and works with key stakeholders.

Recruiting and Appointing Trustees

All of our trustees are volunteers, chosen because they have the diverse range of skills, knowledge and experience that we need to respond to the challenges of today. Stakeholders and partners may nominate trustees and sometimes we will make a personal approach to potential candidates.

The UK Director is accountable to the Board of Trustees and – along with other senior staff – is responsible for our dayto-day management. The UK Director chairs the Senior Management Team, which is made up of the Programmes, Fundraising and Finance Departments and all the policies are implemented through our staff and volunteers.

Governing Document

Muslim Charity Helping The Needy refers to the charity incorporated as a company limited by Guarantee in England and Wales, with a governing document known as the Memorandum and Articles of Association originally incorporated on 25 October 1999 and amended by Written Resolutions passed by the Company Members on 29 November 1999 and 15 January 2019 respectively.

STRUCTURE, GOVERNANCE AND MANAGMENT

05

Responsibilities of Directors and Trustees

The Annual Report and Financial Statements are prepared according to the relevant law and regulations and approved by the Company Directors.

The directors keep adequate accounting records and these show and explain our transactions. The records also disclose our financial position with reasonable accuracy at any time, and enable directors to ensure that the financial statements comply with the Companies Act 2006 and the Charity Commission Statement of Recommended Practice (SORP) 2015.

Grant Making Policies

We provide grants to projects if the request meets our charitable objectives and

criteria. Project grant making is managed according to a designated process which is documented in our “Operational RiskManagement Framework”. We aim to treat all grant applications professionally, equally and fairly. We make the final decision as to eligibility to receive a grant, at our discretion.

Public benefit

objectives, which fall under purposes defined by the Charities Act 2006.

Employees

We support and develop the skills of our employees. We encourage all of our colleagues to engage with the strategy and objectives, and to give their suggestions and views on performance and strategy. We are an equal

opportunities employer and are proud to recruit and promote our staff based on their aptitude and ability, without discrimination. The majority of staff benefit from policies focusing on training and career development as well as regular supervision and appraisals.

Where We Work

Muslim Charity responds to humanitarian emergencies as declared by lead International humanitarian agencies and governments along with its

developmental projects in countries such as Kenya, Somalia, Uganda, Occupied Palestinian Territories, Lebanon, Nepal, Bangladesh, Pakistan and India. Muslim Charity is striving to reach out to vulnerable communities in many other countries of the world as well.

We develop strategic plans to make certain that we provide maximum public benefit and achieve our strategic

STRUCTURE, GOVERNANCE AND MANAGMENT

06

OBJECTIVES AND STRATEGIC ACTIVITIES FOR THE PUBLIC BENEFIT

The objects of the charity are set out below:

  1. To relieve poverty, distress and suffering amongst people in any part of the world (including starvation, sickness, or any physical disability or affliction) primarily, but not exclusively, when arising from any public calamity (including famine, earthquake, pestilence, war or civil disturbance).

  2. To advance education in the United Kingdom, in particular (but not exclusively) the teaching of Islamic studies, for the benefit of the people of the Islamic faith.

Our Vision 2023 strategic plan outlines the specific areas where we, as Muslim Charity, will focus over the coming years to contribute to our global mission. It’s a bold ambition and there is much work to do. We will work alongside the families, communities, volunteers, supporters, and in partnership with others who share our ambitions, to create significant, meaningful and much-needed change.

Vision 2023 is an ambitious but realistic strategic plan which identifies five Operational Goals, defines specific objectives and outlines a set of workstreams we will undertake with our staff, supporters and partners. We want to harness the passion, commitment and talent of our trustees, staff, networks, beneficiaries and volunteers to create and define an effective way of encouraging philanthropy to support people in need within the UK and around the world.

OBJECTIVES AND STRATEGIC ACTIVITIES FOR THE PUBLIC BENEFIT

07

THE YEAR AT A GLANCE

YOU HELPED

1,668,868 PEOPLE ACROSS 17 COUNTRIES

BUILT

24 MASJIDS

PROVIDED WATER TO

1,007,6777 PEOPLE

SUPPORTED

9,188 VULNERABLE CHILDREN

BUILT AND RENOVATED 16 SCHOOLS

DISTRIBUTED QURBANI MEAT TO 262,225[PEOPLE ACROSS 15 COUNTRIES]

THE YEAR AT A GLANCE

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DELIVERED
RAMADAN
6,915 FOOD PACKS
SET UP 201 BUSINESSES
WITH YOUR ZAKAT, GIVING
PEOPLE ACCESS
1,050 TO A LIVELIHOOD
HELPED 28,001
PEOPLE WITH SAFE
DELIVERIES & HEALTHCARE
KEPT 10,814
PEOPLE WARM IN WINTER
HELPED 306,860
PEOPLE AFFECTED BY
DISASTERS AND CONFLICT
RESPONDED TO
FOUR EMERGENCIES
SUPPORTED
1,224 STREET CHILDREN
AND CHILDREN FROM BROTHELS
WITH EDUCATION AND SHELTER
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09
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THE YEAR AT A GLANCE

EMERGENCIES

Over six years of conflict in Yemen has left the country on the brink of collapse. 4.3 million people are displaced and over 1 million are malnourished. Babies and children are dying every day from hunger.

Thanks to you, we have helped 29,450 people in Yemen over the past year.

EMERGENCIES

10

We have provided:

Food to 16,600 people

Nutritional supplements to 1,300 malnourished children

Clean water to 9,000 people

Daily fresh bread to 1,200 people over 13 months totalling 468,000 loaves of bread distributed

Cooked meals in Ramadan to 1,350 people

Feed 100 families £100 with 1,500 loaves of bread.

Free medical £500 camp for one day.

DONATE | www.muslimcharity.org.uk

or call us on 03000 111 786

In May 2021, Gaza witnessed 11 days of relentless conflict, which resulted in severe destruction and the loss of 256 lives, including 66 children and 40 women. Thousands of people became homeless.

EMERGENCIES

12

We have provided:

Food packs for 5,950 people Cooked meals to 76,550 people Medical assistance to 25,000 people

A total of 130,000 loaves of bread distributed to displaced families in the aftermath of the conflict 13,000 people with household items, water and support to improve and rebuild their homes

Clean water £50 Food Pack. £150 to 10 families.

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

13

EMERGENCIES

Over a million Rohingya refugees are living in overcrowded, unsanitary, temporary camps in Bangladesh with a lack of food, clean water and healthcare.

EMERGENCIES

14

Since 2017 we have provided:

480 family shelters

3,256 food packs

2 ambulances

1,700 winter packs

3 large water reservoir systems

£50 Food Pack.

Support our £250 Child-Friendly Space.

1,656 Non-Food Item (NFI) kits

1,120 dignity kits

28 deep water wells

65 toilets and shower rooms Child friendly centre for informal education

£100 Food, hygiene and survival kit.

Shelter for a £450 refugee family.

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

15

EMERGENCIES

SYRIAN REFUGEES

11 years of war in Syria has created over 11 million refugees. Over 1.5 million are in Lebanon, where 88% live in poverty. Lebanon is facing a deep financial crisis due to conflict and Covid-19.

16

EMERGENCIES

This year we have provided:

Food to 4,175 people

£50 Food Pack.

368 winter packs Shelters for 17 families in Arsal refugee camp

£100 Food, hygiene and survival kit. Shelter for a £1,000 refugee family.

Household items and hygiene kits to 175 families

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

17

EMERGENCIES

The harsh winds, snow and sub-zero temperatures leave millions in poverty around the world at huge risk. Without food, shelter or heating, millions fear they may not survive.

Over last winter, Muslim Charity supported 10,814 people across six countries with nutritious food, warm clothing, blankets, heating and fuel. We provided winter aid to thousands of people in Bangladesh, Pakistan, Yemen, Lebanon, Gaza and the UK.

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EMERGENCIES 18
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£10 Winter Blanket.

£30 30 hot meals for UK homeless.

£50 Food Pack.

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

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EMERGENCIES

Provision of meals can increase school enrolment, help grow and develop bright sparks.

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£50 100 school
meals.
£100 200 school
meals.
£500 1,000 school
meals.
a
Hungry for life
----- End of picture text -----

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FEED A CHILD DONATE | www.muslimcharity.org.uk 21
or call us on 03000 111 786
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RESCUE A CHILD

There are 150 million children living on the streets worldwide, at huge risk of exploitation, abuse, forced labour and child marriage.

In Bangladesh, we reunite street children with their families, or refer them to permanent safe shelters, and ensure they go to school.

In Pakistan we run child protection centres which offer safety and education, as well as working with their families.

We also support children from brothels in Bangladesh and Pakistan, who are shunned and isolated.

22

RESCUE A CHILD

Some highlights from 2021:

£25 Rescue a child from the streets. Rescue four £100 children from the streets.

£300 Rescue a child every month.

(or £25 per month)

We rescued 166 street children in Bangladesh

12 children given ongoing sponsorships 52 Children were rescued from the brothel in Daulatdia, Bangladesh

600 children received informal education and psychosocial support in our child protection centres in Pakistan

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DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

RESCUE A CHILD

SUPPORTING SPECIAL CHILDREN

150 million children worldwide suffer from a physical or mental disability and 90% of disabled children worldwide are not in school.

Disabled children from poor families are particularly vulnerable, as they lack the understanding and means to give them the care they need, putting them at greater risk and isolation.

In the past year, we have supported children in Kharian and Karachi, Pakistan, through our sponsorship programme, giving them additional support with their education and wellbeing.

CHILDREN OF THE WORLD

24

£30 Support meals for children.

Support learning £60 material for children.

£90 Support children’s therapy sessions.

25

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

CHILDREN OF THE WORLD

ORPHAN SPONSORSHIP

There are 140 million orphans worldwide, and those living in poverty are struggling immensely. Many orphan families are unable to cope, and children lose out on the opportunity to go to school and thrive.

Our one-to-one orphan sponsorship programme gives children education, healthcare and security. Last year, we supported 324 children across 7 countries: Bangladesh, Burma, Nepal, Pakistan, Palestine, Somalia & Lebanon.

Sponsor an £360 orphan.

(or £30 per month)

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Sponsor a Hafiz-
£360 e-Qur’an student
for one year.
(or £30 per month)
Sponsor a Hafiz-
£1,080 e-Qur’an student
for 3 years.
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Our Hafiz Sponsorship programme provides children from poor and vulnerable backgrounds with an opportunity to study the holy Qur’an and become a Hafiz.

Through our partners, we provide children with an ideal learning environment with qualified teachers of the Qur’an, food, health checks and clothing during their period of Hifz education.

Last year, we have supported 137 children to memorise the Qur’an in Pakistan, Somalia, Myanmar and Nepal.

DONATE | www.muslimcharity.org.uk

or call us on 03000 111 786

COMBATING CHILD SEXUAL EXPLOITATION

Child sexual abuse is one of the most alarming and grotesque things that happens. In Pakistan, this is a growing issue, and remains largely unreported. In 2018, an estimated 3,832 child sexual abuse cases were reported.

In 2021, we launched a pilot project in Multan, Pakistan and worked with 13 schools and local communities to deliver messages around sexual exploitation through interactive theatre. We also delivered workshops and distributed material among local government authorities, police and civil society.

Support us in sensitising children £120 on child sexual exploitation.

(or £10 per month)

Support us in sensitising communities £240 on child sexual exploitation.

(or £20 per month)

28

CHILDREN OF THE WORLD

ADOPT A SCHOOL

Globally, 258 million children are unable to go to school.

Many poor families cannot afford to send their children to school, and schools are unsafe and without basic facilities or teachers.

We renovate and rebuild public schools and madrassahs to promote education and offer children the chance to thrive.

In 2021, we built and renovated:

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£25 Schoolstationery. £10,000 Adopt aschool.
(or £840 per month)
£180 Educate a child
for one year.
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(or £15 per month)

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

EYE CATARACT SURGERIES

Cataracts are a leading cause for almost half of all cases of blindness around the world. 80% of all blindness is curable, but for those living in remote and poor locations, accessing quality eye care is often impossible. Curing blindness can help people thrive and live lives of dignity, and help communities break cycles of poverty.

Since 2019 we have provided 520 cataract surgeries in Pakistan in District Bhakkar and Karachi, Sindh.

Support £40 one Cataract Surgery.

Support £80 2 Cataract Surgeries.

Support £400 10 Cataract Surgeries.

In the past year, we have also completed 155 cataract surgeries in Sylhet, Bangladesh.

Construction £2,000 of one home.

HOMES FOR THE ZAKAT ELIGIBLE

We believe one of the best uses of Zakat is for sustainable, long-lasting change for families and communities. Our Homes for the Zakat Eligible project allows us to do so much more with Zakat. We provide decent housing for families and a safe, dedicated space to call home.

We aim for families to be empowered and self-reliant.

In 2021, we built 10 homes for Zakat eligible families in Pakistan.

DONATE | www.muslimcharity.org.uk

31

ZAKAT

or call us on 03000 111 786

ZAKAT FOR BUSINESS STARTUPS

We help vulnerable families in Pakistan, Bangladesh, India, Yemen, Palestine, Uganda, Kashmir and Kenya establish their own businesses based on their skills and local context.

Through our project, we help vulnerable families create reliable income for the long-term.

In 2021, we helped 201 Zakat eligible people establish businesses: 57 in Pakistan; 27 in Bangladesh; 14 in Yemen; 11 in Gaza; 25 in Uganda; 14 in Jammu and Kashmir; 50 in Kenya, and 3 in India.

Zakat for £250 business startup contribution

Zakat for £500 business startup contribution

32

ZAKAT

USE OUR ZAKAT CALCULATOR

Our Zakat Calculator is a very simple and easy way for you to work out how much Zakat you need to pay and fulfil this beautiful obligation. All you need to do is enter your information, and our clever calculator works out exactly how much you need to pay, and shows you what great things your Zakat can achieve.

Use our online Zakat calculator: www.muslimcharity.org.uk/zakat

33

DONATE | www.muslimcharity.org.uk

ZAKAT

or call us on 03000 111 786

Through our Sadaqah Jariyah projects, we support vulnerable communities in some of the most hard-to-reach areas.

In impoverished communities, we provide clean drinking water through wells. We build mosques to enrich their deep love for Islam, and help children flourish by renovating schools.

Your Sadaqah Jariyah donations facilitate long-term change, changing the lives of communities for the better, bringing you ongoing reward in this life and the next.

£15 per month

£15 Support per month water solutions. Safe delivery £150 of a newborn.

One share in £100 a Masjid.

Water hand pump.

£150

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SADAQAH JARIYAH DONATE | www.muslimcharity.org.uk 35
or call us on 03000 111 786
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Fulfil an £500 immediate need of a Masjid.

Water well £750 in Asia.

Water well £3,000 in Africa. Community £2,000 solar well.

(or £166 per month)

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Large Solar
Build a Masjid
£8,500 £15,000 Well (Asia or
in Asia.
Africa).
(or £1250 per month)
Build a Masjid
£10,000
in Africa. Masjid and
£20,000 Madrassah
Complex.
Medium Solar
£10,000
Well (Asia).
(or £833 per month)
SADAQAH JARIYAH DONATE | www.muslimcharity.org.uk 37
or call us on 03000 111 786
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Safe delivery of £150 a newborn.

SAFE DELIVERIES

Every 2 minutes, somewhere around the world, a woman dies during childbirth or from pregnancy-related complications. Every day, over 7,000 babies are born still-born, and most deaths of mothers and babies are due to a lack of medical expertise and sanitation.

Muslim Charity is supporting hospitals in Pakistan to offer safe deliveries and medical care for expectant mothers and babies.

We supported 10,000 patients across two hospitals in Pakistan in 2021.

38

HONOURING OUR MOTHERS

Infant £2,500 incubator.

(or £210 per month)

INFANT INCUBATORS

Every year, 15 million babies are born premature, and over 1 million sadly do not survive. 75% of these deaths are preventable with simple solutions.

Since 2013, we have worked with hospitals across the most vulnerable areas of Pakistan, Bangladesh, India, Lebanon, Kenya and Yemen and provided 150 neonatal incubators helping save the lives of approximately 8,000 babies each year.

Last year alone we delivered five incubators.

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

39

HONOURING OUR MOTHERS

AMBULANCES

Ambulances can truly save lives during emergencies. However in many remote and impoverished locations, ambulances are rare, and people reach hospitals too late.

We have provided 29 ambulances across Pakistan, Bangladesh and Somalia. Each ambulance is fully equipped with oxygen apparatus, obstetrical kits, stretchers, wheelchairs, bandages, emergency kits and equipment needed for a trained paramedic.

In 2022, we sent 3 NHS ambulances to Uganda to support local hospitals and to serve those in remote locations.

Our ambulances help over 10,000 people each year.

40

HONOURING OUR MOTHERS

One share One fully- £500 towards an £12,000 equipped ambulance. ambulance. (or £42 per month) (or £1,000 per month)

41

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

HONOURING OUR MOTHERS

WATER HAND PUMPS

A hand pump is a small but efficient mechanism which gives a family clean drinking water in their homes. Hand pumps provide households with as much water as they need, whenever they need it, each day for drinking, cleaning and cooking.

So far, we have installed 21,225 water hand pumps, benefiting 628,203 vulnerable people in Pakistan and Bangladesh. Last year alone, we installed 7,469 handpumps.

42

WATER HAND PUMPS

£150

Water hand pump.

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

WATER WELLS

Water wells extract water from a greater depth of over 100 feet below the ground, and allow large volumes to be collected over long periods of time.

So far, Muslim Charity has facilitated the installation of 1,305 water wells, benefiting an estimated 314,293 beneficiaries and counting across Pakistan, Bangladesh, Kenya and Somalia. Last year we built 247 water wells.

Water well in £750 Pakistan or Bangladesh.

Water well £3,000 in Africa.

(or £65 per month)

(or £250 per month)

WATER WELLS

44

WATER TANKERS

In areas of conflict where disaster has hit, water supplies can become contaminated or destroyed.

In Gaza less than 4% of fresh water is drinkable and war has left people displaced and without income. In Yemen, 4.3 million have fled their homes and are struggling without water.

Last year, we provided 9,000 displaced Yemenis with clean water. We have supplied clean drinking water to households, schools and hospitals in Gaza, reaching approximately 10,000 people.

£45

Safe water for a family for one month.

£300 One water tanker.

(or £25 per month)

DONATE | www.muslimcharity.org.uk

45

WATER TANKERS

or call us on 03000 111 786

SOLAR WATER WELLS

In areas facing drought and extreme water scarcity, environmentally-friendly and sustainable solar powered electric pumps provide a great long-term solution.

Installing a Solar Water Well is a fantastic Sadaqah Jariyah, providing ongoing reward for you, and providing an entire community with a regular and large supply of clean water for all their needs, harvesting and animals.

In 2021, we installed 13 solar water wells in Pakistan, 1 in Kenya and 1 in Uganda, benefiting over 17,000 people.

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£500 a solar water well. One share towards £2,000 Communitysolar well.
(or £42 per month) (or £166 per month)
Large solar
Medium solar
£10,000 £15,000 well (Asia or
well (Asia).
Africa).
(or £833 per month) (or £1,250 per month)
----- End of picture text -----

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SOLAR WATER WELLS DONATE | www.muslimcharity.org.uk 47
or call us on 03000 111 786
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Renovate £4,000 an existing Masjid.

(or £333 per month)

£8,500 Small Masjid in Asia.

(or £710 per month)

One prayer £100 area (Masalla) for a Masjid.

Fulfil an £500 immediate need of a Masjid.

Small Masjid £10,000 in Africa.

(or £840 per month)

Masjid and £20,000 Madrassah Complex in Asia or Africa.

(or £1,666 per month)

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MASJID CONSTRUCTION
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A Masjid is the heart of any Muslim community. It allows people to gather for prayer and come together in celebration, mourning and to learn.

In deprived communities, masjids are often non-existent or are frail structures.

We construct Masjids to allow Muslims to worship and flourish as well as to promote education and progress.

Last year alone, we built 4 Masjids in Pakistan, 13 Masjids in Uganda and 7 Masjids in Kenya.

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

UK HOMELESS COMMUNITY

Approximately 219,000 people are homeless in the UK, and this figure rises each year. During the Covid-19 pandemic, the homeless community has been at greater risk than ever, and unemployment and lockdown has forced more people into poverty and homelessness.

We support people who are homeless in Manchester with warm clothing, cooked meals, hot drinks and sleeping bags. Since 2018, we have helped 1,250 vulnerable people and our teams continued this work in 2021.

50

UK HOMELESS COMMUNITY

£30 30 hot meals. £60 Two winter kits.

DONATE | www.muslimcharity.org.uk

51

UK HOMELESS COMMUNITY

or call us on 03000 111 786

Through our Gifts campaign, you can give a gift to a person living in poverty, on behalf of yourself or a loved one.

Each gift helps someone break out of poverty, generate their own income and live a better life. You can gift somebody in need a wheelchair to become independent, or give someone a sewing machine so they can open their own tailoring business.

52

GIFTS

Order your gift today: www.muslimcharity.org.uk/gifts

DONATE | www.muslimcharity.org.uk

53

GIFTS

or call us on 03000 111 786

Get your FREE Islamic Will by visiting: wills.muslimcharity.org.uk

ISLAMIC WILLS

As a Muslim, your wealth must be distributed after you die according to the Shariah (Islamic law). Without an Islamic will, your assets will be distributed according to UK law, not Islamic law.

In Islam, you can give up to one third of your estate to charity that will benefit you in the next life.

Your Will must comply with both English and Islamic law for it to be fully valid.

ISLAMIC WILLS

54

AJWA AND MEDJOUL DATES

This year, make your Ramadan extra special by buying your Medjoul or Ajwa Dates from Muslim Charity, and provide meals to vulnerable children in school around the world.

These date boxes make the perfect gift, and will also provide the ideal Iftar time staple, in line with the beautiful sunnah of our Prophet Muhammad (peace be upon him).

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Medjoul Dates From Premium Ajwa Dates
Palestine (800g) From Madinah (500g)
Each box is packed with fresh, These dates are grown in the
juicy and delicious medjoul blessed city of Madinah and by
dates ethically-sourced from purchasing them you will be
Palestine farms in Jericho, providing free school meals
West Bank. to children.
----- End of picture text -----

Order your dates today for only £10 a box:

www.muslimcharity.org.uk/dates

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

55

DATES FOR PALESTINE

QURBANI

Annually, Muslims celebrate Eid-ul-Adha by sacrificing halal animals, commemorating the virtuous sacrifice of Prophet Ibrahim. Muslim Charity has been doing Qurbani on behalf of its donors for over 20 years, whereby the meat from the sacrificed animals is distributed to poor and needy communities.

Last year your Qurbani reached approximately 262,225 vulnerable people in 15 countries. For many of these people, this is the only meat they have eaten all year.

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QURBANI

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AQIQAH AND ANIMAL SACRIFICE

Muslim Charity supports donors to offer their animal sacrifices, whether that is in the form Aqiqah (sacrifice in gratitude on the birth of a child) or Sadaqah.

Once the goat or sheep has been sacrificed, the meat is distributed amongst poor and vulnerable communities, where they get an opportunity to cook nutritional meals for their families.

Last year, we facilitated 443 animal sacrifices in Pakistan, Somalia and Uganda benefiting an estimated 15,528 people.

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AQIQAH AND ANIMAL SACRIFICE

£60

£135

Animal sacrifice (goat in Somalia).

Animal sacrifice (goat in Pakistan).

DONATE | www.muslimcharity.org.uk or call us on 03000 111 786

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AQIQAH AND ANIMAL SACRIFICE

£5 Fidyah per day of Ramadan.

FIDYAH AND KAFFARAH

Fidyah

If a Muslim is unable to fast during Ramadan for reasons such as illness or pregnancy, they must compensate by feeding a poor person for each day of fasting that they missed. This is called Fidyah and is valued at the cost of two meals a day.

Fidyah is calculated at £5 per day (£150 for the full month of Ramadan).

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FIDYAH AND KAFFARAH

Kaffarah

If someone intentionally misses or breaks a fast with no valid reason then they must compensate for this in one of two ways. They must either fast for 60 days or, if they are unable to do so, they should feed 60 poor people with two meals for one day. This is called Kaffarah and is the average cost of two meals a day.

The cost of Kaffarah is £300 per missed fast.

£5

Fidyah per day of Ramadan.

£150

£300

Fidyah for full month of Ramadan (30 days). Kaffarah per fast that is intentionally missed or broken.

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or call us on 03000 111 786

NEWS

Muslim Charity provided two defibrillators to the Ranby and Sutton-Cum-Lound community upon discovering that a lack of the equipment was having severe impacts on the local community. The use of defibrillators following a sudden cardiac arrest can boost survival rates drastically. Muslim Charity worked with local MP to hand over and deliver the defibrillators for the community.

Top Picture

Right to left: Brendan Clarke-Smith (MP for Bassetlaw), Denise Depledge (Councillor for Sutton), David Thorpe (Headmaster, Ranby House), Bakhtyar Pirzada (Vice Chairman, Muslim Charity), Gerald Bowers (Councillor for Ranskill) and Maroof Pirzada (UK Director, Muslim Charity) at the handover ceremony of a defibrillator at the Ranby House School in Ranby, Retford.

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NEWS

Muslim Charity held a workshop for 70 police officers in Pakistan from Punjab Police and Traffic Wardens, on the best practices of the Punjab Destitute and Neglected Children Act 2004 and Zainab Alert Response and Recovery Act (ZARRA ACT) 2020. The aim was to raise awareness and to hold discussions around child wellbeing and elimination of child sexual exploitation.

Our TEAMMC BJJ Club took part in the All Stars Europeans Tournament at the University of East London. This was the first competition the club participated in following months of training and all the sweat and sparring paid off, as our team won 8 medals!

Muslim Charity delivered emergency medical equipment in Bangladesh to assist treatment of those affected by Covid-19, amid new surges and immense pressures on the healthcare system. We delivered 10 oxygen cylinders with flow meters, 7 oxygen concentrators and 17 pulse oximeters to our partner organisation, ASH Foundation.

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NEWS

TEAMMC is our family of volunteers, our backbone, our strength, and a group of committed individuals without whom our work would not be possible.

Our volunteers are involved in a range of exhilarating events from skydiving to cycling challenges, and from running marathons to driving rickshaws.

They organise fundraising and awareness-creating activities amongst friends, families and communities and are a voice for those in need.

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TEAMMC
TEAMMC 64
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If you want to join the TEAMMC movement, please sign up here:

www.muslimcharity.org.uk/TeamMC

To see upcoming events and challenges, visit:

www.muslimcharity.org.uk/events

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or call us on 03000 111 786

DONATION FORM

Your Details:

Name: Mr / Mrs / Ms

----- Start of picture text -----
Address:
Postcode:
Phone: Email:
We’d like to keep you updated about our projects and fundraising activities. Please advise whether you are happy to
be contacted by ticking the relevant boxes:
Email SMS Phone
Single Donation: Amount: £
Towards Project: Where Most Needed Other:
Zakat Sadaqah Lillah Fidya Fitrana
Payment Method: Credit/Debit Card Cheque (payable to Muslim Charity)
Card Number:
Expiry Date: Security Code (last 3 digits on back of card):
Gidt Aid It: Yes No Date:
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If you are a UK taxpayer we can inI would like Muslim Charity to treat all donations I have made in the past, this donation and all my crease your donation by 25% under future donations until I notify otherwise as Gift Aid donations. I am a UK taxpayer and understand the Gift Aid scheme at n extra cost that if I pay less Income Tax and/or Capital Gains Tax than the amount of Gift Aid claimed on all my donations in that tax year it is my responsibility to pay any difference. Please inform Muslim Charity to you. Simply tick the yes box. if you want to cancel the declaration, change your name or address or no longer pay sufficient tax.

Regular Donation by Direct Debit

Amount: £10 £30 Other: £ On the: 1st of the month 15th of the month Name(s) of Account Holder(s): Account Number: Sort Code: Signature(s): Date: Instruction to your Bank or Building Society Please pay CAF re Muslim Charity Org UK Direct Debits from the account detailed in this instruction subject to the safeguards assured be the Direct Debit Guarantee. I understand that this instruction may remain with CAF re Muslim Charity Org UK and if so, details will be passed electronically to my Bank/Building Society. 2 7 4 2 4 1 Service User Number

Please pay CAF re Muslim Charity Org UK Direct Debits from the account detailed in this instruction subject to the safeguards assured be the Direct Debit Guarantee. I understand that this instruction may remain with CAF re Muslim Charity Org UK and if so, details will be passed electronically to my Bank/Building Society.

The Direct Debit Guarantee:

This guarantee is offered by all Banks and Building Societies that accept instructions to pay Direct Debits. If there are any changes to the amount, date or frequency of your Direct Debit, CAF re Muslim Charity Org UK will notify you ten working days in advance of your account being debited or as otherwise agreed. If you request CAF re Muslim Charity Org UK to collect a payment, confirmation of the amount and date will be given to you at the time of the request. If an error is made in the payment of your Direct Debit, by CAF re Muslim Charity Org UK or your Bank or Building Society, you are entitled to a full and immediate refund of the amount paid from your Bank or Building Society - If you receive a refund you are not entitled to, you must pay it back when CAF re Muslim Charity Org UK asks you to. You can cancel a Direct Debit at any time by writing to your Bank or Building Society. Written confirmation may be required. Please also send a copy of your letter to us.

Bank Donations:

To donate via bank, please leave your Donor ID as reference, and pay into following account: Muslim Charity (HSBC), Sort Code: 40-38-11, Account Number: 41369989

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DONATION FORM

OTHER WAYS TO DONATE

To make a credit/debit card donation over the telephone please call us on 03000 111 786 or 0207 100 4930

You can donate online using our mobile-friendly website quickly and securely by visiting www.muslimcharity.org.uk

Please text RAMADAN to 70480 to donate £10 , or, if you wish to donate another amount, please include the number you wish to donate in your text e.g. text RAMADAN 5 to 70480 to donate £5 or RAMADAN 15 to 70480 to donate £15 . Any whole pound amount from £1 to £20 can be donated in this way.

Texts cost your chosen donation amount plus one standard network rate message.

Complete the donation form on the previous page and send it to us: Muslim Charity, Eaton Hall, Retford, Nottinghamshire, DN22 0PR (UK)

You can send us a cheque making it payable to “Muslim Charity” and sending to the above-mentioned address

You can send money directly into the Muslim Charity bank account:

Bank Name: HSBC Account Name: Muslim Charity Account Number: 41369989 Sort Code: 40-38-11 IBAN: GB68 HBUK 403811 41369989 SWIFT/BIC: HBUKGB4151E

If you make a bank transfer please remember to call us on 0207 100 4930 or email us info@muslimcharity.org.uk and inform us so we can send you a receipt and allocate your donation to the correct project.

DONATE | www.muslimcharity.org.uk

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OTHER WAYS TO DONATE

or call us on 03000 111 786

PLANS FOR THE FUTURE

In the years ahead, we aim to continue the organisation’s growth and impact by focusing on the key operational goals that are outlined in our Vision 2023 strategic plan.

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PLANS FOR THE FUTURE

Operational Goal 1: Investing in People

We depend on our trustees, staff and volunteers and we must value, understand and inspire them. For people to be able to deliver the Vision 2023 strategic plan, Muslim Charity will be an agile, flexible organisation with skilled and motivated trustees, staff and volunteers.

Operational Goal 2: Strengthening Accountability

Muslim Charity’s Vision 2023 will best be realised by being more accountable in the ways we govern ourselves and treat each other. Accountability, both to the communities living in poverty and to our supporters, donors and other external stakeholders, is an ethical and effective basis for our relationships and will contribute significantly to greater organisational impact and trust.

Operational Goal 3: Income Strategy

There is huge potential for fundraising success in the short and long terms if we build on the success of our brand identity and remain honest and true to our values. This will require continuing and building on the successes we have achieved so far as well as entry to new markets, increased

networking and innovation with affiliates and encouraging and empowering our volunteer groups in order to create a bigger impact to the lives of the needy that we serve. This will secure more and larger revenues from institutional donors and greater net income from individual supporters; and will strengthen individual affiliates and provide the right balance of flexible resources required to achieve our organisational objectives.

Operational Goal 4:

Improved Governance and Development of Operational Structure

The implementation of Vision 2023 requires provision of adequate resources, vertical and horizontal approaches to coordinate and bridge the departments along with building alliances with external stakeholders.

Operational Goal 5: Improved Process and Systems

Through our Vision 2023 strategic plan we aim to build strong financial, administration, risk management and IT systems in order to bring about positive change and make a greater impact to the people and communities we serve around the world.

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PLANS FOR THE FUTURE

FINANCIAL REVIEW

The financial statements are prepared in accordance with accounting policies as set out in the financial statements.

No material uncertainties that may cast a doubt on the ability of the charity to continue as a going concern have been identified by the trustees.

Income

The total income for the year was £5.65 million. This is an increase of around £1.53 million from the previous year’s income of £4.12 million, which was an increase of £1.59 million from the year preceding that. The increased donations from our supporters reflects our unshakeable commitment to supporting vulnerable and needy communities around the world and the trust placed in us by our supporters and donors.

In terms of our annual fundraising calendar, we received increased activity and donations during the periods of Ramadan (May/April 2021) and Qurbani / Eid-ul-Adha (July 2021). The increased resources enabled us to make a positive difference to the lives of needy families and communities around the world.

In comparison to previous years, we have observed a continuation of changing trends in donor behaviour particularly in relation to mediums of donating, such as the reduction of donations being received by traditional forms such as cheque and telephone donations to an increase in donations received through our website and online mediums.

The trust we have established with our donors and the feedback we provide to them (both customized individual feedback for specific tangible projects such as our Safe Water programme and collective general feedback) has meant that we have seen repeat donations and new donors come forward to support our interventions for the needy.

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FINANCIAL REVIEW

Expenditure

Muslim Charity has undertaken a number of measures to improve the productivity of its charitable activities over the years. The most significant shift in this regard was implementing charitable projects through establishing partnerships with bona fide partner organisations. This transition in our project implementation approach has drastically improved the productivity of our charitable activities and at the same time has helped us to bring our overhead costs down. The process we adopt in identifying and working with partner organisations is established in detail in our “Operational Risk-Management Framework”.

The charitable activities undertaken during the year were £4.14 million, which was significantly more than the previous year

figure of £3.26 million, revealing our firm and unshakeable commitment of ensuring the end users and beneficiaries benefit from our work thereby causing a greater positive impact in their lives.

Reserve Policy

The Trustees recognise the need to hold sufficient reserves to allow protection of core activities in the event of any income shortfalls. The policy aims to have sufficient free reserves to enable Muslim Charity to withstand any unexpected drop in donations and hold at least the equivalent of six months headquarters and other fixed operating costs. The Trustees are pleased they have met their reserve policy and will review it again during 2022.

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TRUSTEES’ RESPONSIBILITIES STATEMENT

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

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

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TRUSTEES’ RESPONSIBILITIES STATEMENT

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

Each of the persons who is a trustee at the date of approval of this report confirms that:

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

The trustees’ annual report and the strategic report were approved on 21[st ] July 2022 and signed on behalf of the board of trustees by:

Registered office:

Muslim Charity

Eaton Hall, Retford

Nottinghamshire DN22 0PR (United Kingdom)

Signed on behalf of the trustees:

Mr M. I. H. Pirzada Chairman & Trustee

TRUSTEES’ RESPONSIBILITIES STATEMENT

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MUSLIM CHARITY

Opinion

We have audited the financial statements of MUSLIM CHARITY: HELPING THE NEEDY (the ‘charity’) for the year ended 31 October 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 charity 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 charity’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.

INDEPENDENT AUDITOR’S REPORT

74

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

INDEPENDENT AUDITOR’S REPORT

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Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

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INDEPENDENT AUDITOR’S REPORT

auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’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 charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr. Mohammed Afzaal Bhatti

(Senior Statutory Auditor)

For and on behalf of: KBM UK Limited 1 Concord Business Centre Chartered Certified Accountants & Statutory Auditor Concord Road London, W3 0TJ

INDEPENDENT AUDITOR’S REPORT

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STATEMENT OF FINANCIAL ACTIVITIES

(including income and expenditure account)

2021 2020
Unrestricted Restricted Total Total
funds funds funds funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 1,232,087 4,400,062 5,632,149 4,091,244
Investment income 6 34 - 34 1,414
Other income 7 19,800 - 19,800 24,210
Total income 1,251,921 4,400,062 5,651,983 4,116,868
Expenditure
Expenditure on raising funds:
Costs of other trading activities 8 286,087 – 286,087 214,839
Expenditure on
charitable activities		 9, 10 – 4,123,675 4,135,675 3,264,179
Governance cost 11 139,020 - 139,020 125,992
Total expenditure 425,106 4,135,675 4,560,781 3,605,011
Net income 826,815 264,387 1,091,202 511,857
Transfers between funds (549,091) 549,091 – –
Net movement in funds (277,724) 813,478 1,091,202 511,857
Reconciliation of funds
Total funds brought forward 180,732 775,767 956,499 444,642
Total funds carried forward 458,456 1,589,245 1,047,701 956,499

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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STATEMENT OF FINANCIAL ACTIVITIES

STATEMENT OF FINANCIAL POSITION

2021 2020 2020
Note £ £ £
Fixed assets
Tangible fxed assets 16 7,261 9,680
Current assets
Debtors 17 27,801 29,857
Cash at bank and in hand 2,168,432 1,377,788
2,196,233 1,407,645
Creditors: amounts falling
due within one year		 18 155,793 460,826
Net current assets 2,040,440 946,819
Total assets less current liabilities 2,047,701 956,499
Net assets 2,047,701 956,499
Funds of the charity
Restricted funds 1,589,245 775,767
Unrestricted funds 458,456 180,732
Total charity funds 20 2,047,701 956,499

These financial statements were approved by the board of trustees and authorised for issue on 21[st] July 2022, and are signed on behalf of the board by:

Mr M. I. H. Pirzada Chairman & Trustee

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STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWSSTATEMENT OF CASH FLOWS

2021 2020 2020
£ £
Cash fows from operating activities
Net income 1,091,202 511,857
Adjustments for:
Depreciation of tangible fxed assets 2,940 3,950
Government grant income – (39,973)
Investment income (34) (1,414)
Online donation processing fees 55,577 27,409
Accrued income 2 (18)
Changes in:
Trade and other debtors 2,056 17,431
Trade and other creditors (305,035) 370,407
Cash generated from operations 846,708 889,649
Online donation processing fees (55,577) (27,409)
Investment income 34 1,414
Net cash from operating activities 791,165 (863,654)
Cash fows from investing activities (521) (240)
Purchase of tangible assets
Net cash used in investing activities (521) (240)
Cash fows from fnancing activities
Government grant income – 39,973
Net cash from fnancing activities – 39,973
Net increase in cash and cash equivalents 790,644 903,387
Cash and cash equivalents at beginning of year 1,377,789 474,402
Cash and cash equivalents at end of year 2,168,432 1,377,789

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STATEMENT OF CASH FLOWS

NOTES TO THE FINANCIAL STATEMENTS

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Eaton Hall, Retford, Nottinghamshire, DN22 0PR.

Resources expended

Resources expended are recognised in the year in which they are incurred.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

Incoming resources

Voluntary income is derived by way of donations and gifts and is included in full in the Statement of Financial Activities when Muslim Charity: Helping The Needy is entitled to the receipt and the amount can be measured with reasonable certainty. Gifts in Kind which Muslim Charity: Helping The Needy accepts full responsibility for distribution are included in income at their market value when it is distributed and under Charitable Activities at the same value and time. The value of services provided by volunteers has not been included.

Governance costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management.

Going concern

There are no material uncertainties about the charity’s ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity’s purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two subclasses: restricted income funds or endowment funds.

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NOTES TO THE FINANCIAL STATEMENTS

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and Fittings - 20% reducing balance Motor Vehicles - 25% reducing balance Equipment - 33% reducing balance

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NOTES TO THE FINANCIAL STATEMENTS

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cashgenerating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to

satisfying the revenue recognition criteria, they are recognised as a liability.

they are recognised as a liability.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

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NOTES TO THE FINANCIAL STATEMENTS

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Limited by guarantee

The charity is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the charity being wound up the liability in respect of the guarantee is limited to £10 per member of the charity.

5. Donations and legacies

5. Donations and legacies
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
Donations 750,017 4,400,062 5,150,079
Gifts
Gift Aid 482,070 – 482,070
Grants
Government grant income – – –
1,232,087 4,400,062 5,632,149
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Donations 588,002 3,112,289 3,700,292
Gifts
Gift Aid 350,979 – 350,979
Grants
Government grant income 39,973 – 39,973
978,954 3,112,289 4,091,244

6. Investment income

6. Investment income
Unrestricted Total Funds Restricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Investment income - saving 34 34 1,414 1,414

7. Other income

7. Other income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Rental Income 19,800 19,800 24,210 24,210

85

NOTES TO THE FINANCIAL STATEMENTS

8. Costs of other trading activities

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020 2020
£ £ £ £
Printing and Stationery 1,842 1,842 1,622 1,622
Advertising 5,875 5,875 4,125 4,125
Motor and Travel 5,514 5,514 3,475 3,475
Consultancy Fees 28,974 28,974 7,529 7,529
Other ofce costs 21,650 21,650 17,613 17,613
Support Costs(note 10) 222,230 222,230 180,474 180,474
286,087 286,087 214,839 214,839

9. Expenditure on charitable activities by fund type

9. Expenditure on charitable activities by fund type
Restricted
Funds
£
Support Cost
2021
£
Total Funds
2021
£
Total Funds
2020
£
Qurbani
514,303
19,780
534,083
507,967
Orphans
528,077
20,310
548,387
745,269
Masjid
655,215
25,200
680,415
323,226
Water
911,295
35,049
946,344
336,841
Iftar/Food
154,640
5,948
160,587
53,443
Emergency
712,324
27,396
739,720
464,431
Health
73,408
2,823
76,232
148,197
Education
273,684
10,526
284,211
635,981
Livelihood
159,559
6,137
165,696
48,823
3,982,505
153,169
4,135,675
3,264,179

86

NOTES TO THE FINANCIAL STATEMENTS

10. Expenditure on charitable activities by activity type

Fundraising Charitable Governance
Total Support		 Total Support
Activity Activity Activity Cost 2021 Cost 2020
£ £ £ £ £
Salaries and wages 117,126 58,563 58,563 234,252 218,186
Postage & stationery 2,978 255 170 3,404 1,936
Telephone 6,953 4,867 2,086 13,905 10,524
Repairs and renewals 1,407 469 469 2,345 2,873
Operating lease – P&M 800 114 229 1,143 2,165
IT & computer expenses 27,789 16,673 11,115 55,577 27,409
Light and heat 1,218 731 487 2,436 1,826
Rates – – – – 601
Online donation processing fees 58,514 70,763 6,800 136,076 82,600
Depreciation 2,057 735 147 2,938 3,952
Food & entertainment 538 – 290 827 1,097
Subscription 2,591 – 5,029 7,619 16,162
Sundry expenses 262 – 505 766 4,672
222,230 153,169 85,889 461,289 374,004

11. Governance Cost

11. Governance Cost
Unrestricted Total Funds Total Funds
Funds 2021 2020
£ £ £
Legal & professional fee 6,663 6,663 10,567
Insurance 6,747 6,747 5,748
Accountancy fee 36,690 36,690 40,830
Audit fee 4,320 4,320 4,320
Foreign exchange loss -1,290 -1,290 -17,124
Support Cost (note 10) 85,889 85,889 81,651
139,020 139,020 125,992

87

NOTES TO THE FINANCIAL STATEMENTS

12. Net income

12. Net income
Net income is stated after charging/(crediting): 2021 2020
£ £
Depreciation of tangible fxed assets 2,940 3,950
Operating lease rentals 1,143 2,165
13. Auditors remuneration
2021 2020
£ £
Fees payable for the audit of the fnancial statements 4,320 4,320
14. Staf costs
The total staf costs and employee benefts for
the reporting period are analysed as follows:
2021 2020
£ £
Wages and salaries 316,346 218,186
The average head count of employees during the year was
13 (2020: 11). The average number of full-time equivalent
employees during the year is analysed as follows: 2021 2020
No. No.
Number of staf 13 11

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

15. Trustee remuneration and expenses

The Trustees received no remuneration or expenses for acting as trustees. During the year the total of expense reimbursed to the trustees, incurred in the course of acting as members of the charity, amounted to £Nil.

88

NOTES TO THE FINANCIAL STATEMENTS

16. Tangible fixed assets

16. Tangible fxed assets
Fixtures Motor
and fttings vehicles Equipment Total
£ £ £ £
Cost
At 1stNovember 2020 19,077 6,250 82,495 107,822
Additions – – 521 521
At 31st October 2021 19,077 6,250 83,016 108,343
Depreciation
At 1stNovember 2020 17,011 4,272 76,859 98,142
Charge for the year 413 495 2,032 2,940
At 31st October 2021 17,424 4,767 78,891 101,082
Carrying amount
At 31st October 2021 1,653 1,483 4,125 7,261
At 31stOctober 2020 2,066 1,978 5,636 9,680
17. Debtors
2021 2020
£ £
Prepayments and accrued income 8,001 9,957
Other debtors 19,800 19,900
27,801 29,857
18. Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 22,564 20,603
Accruals and deferred income 6,874 6,872
Social security and other taxes 1,355 1,351
Qard-e-Hasanah for the Eaton Girls School Project 125,000 432,000
155,793 460,826

19. Government grants

The amounts recognised in the financial statements for government grants are as follows: 2021 2020 £ £ Recognised in income from donations and legacies: Government grants income – 39,973

89

NOTES TO THE FINANCIAL STATEMENTS

20. Analysis of charitable funds

Restricted funds

Restricted funds
At 1stNov Incoming Outgoing At 31stOct
2020 resources Transfer resources 2021
£ £ £ £ £
Qurbani – 535,082 – 534,083 998
Orphans 412,580 661,351 – 548,387 525,544
Mosques – 480,231 200,184 680,415 –
Water 119,592 1,284,720 – 946,344 457,968
Food 65,115 195,216 – 160,587 99,744
Emergency 178,480 1,066,232 – 739,720 504,992
Health – 49,774 26,458 76,232 –
Education – 56,671 227,539 284,211 –
Livelihood – 70,785 94,910 165,696 –
775,767 4,400,062 549,091 4,135,675 1,589,245

Unrestricted funds

Unrestricted funds
At 1stNov Incoming Outgoing At 31stOct
2020 resources Transfer resources 2021
£ £ £ £ £
General donation 180,732 1,251,921 (549,091) (425,106) 458,456

90

NOTES TO THE FINANCIAL STATEMENTS

21. Analysis of changes in net debt

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2021 2020
£ £ £ £
Tangible fxed assets 7,261 – 7,261 9,680
Current assets 606,988 1,589,245 2,196,233 1,407,645
Creditors less than 1 year (155,793) – (155,793) (460,826)
Net assets 458,456 1,589,245 2,047,701 956,499

21. Financial instruments

21. Financial instruments
The carrying amount for each category
of fnancial instrument is as follows: 2021 2020
£ £
Financial assets measured at fair value through income and expenditure
Financial assets measured at fair value
through income and expenditure		 2,168,432 1,377,788
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments
measured at amortised cost		 19,800 19,900
Financial liabilities measured at fair value through income and expenditure
Financial liabilities measured at fair value
through income and expenditure		 155,793 460,826

22. Related parties

Muslim Charity: Helping The Needy has an established charitable trust under the name of Muslim Charity, registered in Pakistan, registration number RJSC/JG/280. The results of the charitable trust registered in Pakistan have been incorporated in these accounts.

The UK Director of Muslim Charity: Helping the Needy, Mr M. G. Pirzada, was paid a remuneration of £21,000 in the current year. Mr M. G. Pirzada is the son of Mr M. I. H. Pirzada who is a Trustee, and brother of Mr B. H. Pirzada who is also a Trustee. The appointment of Mr M. G. Pirzada has been taken with the written consent of the Charity Commission.

91

NOTES TO THE FINANCIAL STATEMENTS

03000 111 786 | info@muslimcharity.org.uk www.muslimcharity.org.uk

Muslim Charity, Eaton Hall, Retford, Nottinghamshire, DN22 0PR (UK)

Charity Registration No.: 1078488