**ANNUAL REPORT AND FINANCIAL STATEMENTS OF MUSLIM CHARITY HELPING THE NEEDY**
**FOR THE YEAR ENDED 31 OCTOBER 2022**
## **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**
|**8**|
|**EMERGENCIES**||
|Pakistan Floods
|9|
|Bangladesh Floods
Yemen Emergency
|10
11|
|Gaza Emergency
|12|
|Rohingya Emergency
|13|
|Lebanon Emergency
|14|
|Winter Emergency
|15|
|**FEED A CHILD**
|**16**|
|**CHILDREN OF THE WORLD**||
|Rescue A Child
|18|
|Hafz Sponsorship|19|
|Adopt A School
|20|
|**ZAKAT**||
|Homes For The Zakat Eligible|21|
|Zakat For Business Startups|22|
|Use Our Zakat Calculator
|23|
|**SADAQAH JARIYAH**|24|
|**HONOURING OUR MOTHERS**||
|Safe Deliveries
|25|
|Infant Incubators
|26|
|Ambulances
|27|
|**SAFE WATER**||
|---|---|
|Water Hand Pumps|28|
|Water Wells|29|
|Solar Water Wells|30|
|**MASJID CONSTRUCTION**|**31**|
|**OTHER PROJECTS**||
|UK Homeless Community|32|
|Gifts|33|
|Islamic Wills & Dates|34|
|Qurbani|35|
|Animal Sacrifce & Aqiqah|36|
|Fidyah & Kafarah|37|
|**NEWS**|**38**|
|**#TEAM MC**|**44**|
|**PLANS FOR THE FUTURE**|**46**|
|**FINANCIAL REVIEW**|**48**|
|**TRUSTEES’ RESPONSIBILITIES**||
|**STATEMENT**|**50**|
|**INDEPENDENT AUDITOR’S**||
|**REPORT**|**52**|
|**STATEMENT OF FINANCIAL**||
|**ACTIVITIES**|**56**|
|**STATEMENT OF FINANCIAL**||
|**POSITION**|**57**|
|**STATEMENT OF CASH FLOWS**|**58**|
|**NOTES TO THE FINANCIAL**|**59**|
|**STATEMENTS**||
|**DONATION FORM**|**70**|
|**OTHER WAYS TO DONATE**|**71**|
**02**
TABLE OF CONTENTS
## **A MESSAGE FROM OUR**
## **VICE CHAIRMAN**
## Dear Friends, Assalamu Alaykum,
I am so moved by your commitment and dedication to helping those most in need throughout the past year, despite all the challenges and difficulties we have faced.
With your commitment and trust in us, we have been able to help over 1.2 million vulnerable people in need during the past year, Alhamdulillah. None of this would have been possible without you.
This annual report highlights some of our recent achievements and activities and also documents our financial statements for the year ended 31 October 2022. I hope you enjoy browsing through this brochure, learning more about the impact you’ve made around the world. Please continue to support Muslim Charity.
## 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 October 2021.
**----- Start of picture text -----**
|||
|---|---|
|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 (Resigned 21 July 2022)|
|Mr Ali Qudar Raja|
|Mr Mohammed Yousaf|
|Mrs Anisah Iqbal (Appointed 21 July 2022)|
|Legal Advisors:|Lee Bolton Monier-Williams LLP|
|1 The Sanctuary, Westminster, London SW1P 3JT (UK)|
|Auditor:|KBM UK Limited, 1 Concord Business Centre|
|Concord Road, London W3 0TJ (UK)|
|Bankers:|TSB Bank|
|PO Box 373, Leeds, LS14 9GQ (UK)|
|HSBC|
|31 Carolgate, Retford, DN22 6DA (UK)|
**----- End of picture text -----**
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 day-to-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 Risk-Management 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, are focusing on to contribute to our global mission. It’s a bold ambition and there is much work being done. We are working 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 are undertaking 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 **1,204,244** PEOPLE ACROSS 10 COUNTRIES
HELPED **211,612** PEOPLE AFFECTED BY DISASTERS AND EMERGENCIES PROVIDED WATER TO **222,090** PEOPLE INSPIRED AND SUPPORTED **13,532** VULNERABLE CHILDREN DISTRIBUTED QURBANI MEAT TO **681,975** PEOPLE ACROSS 12 COUNTRIES KEPT **9,800** PEOPLE WARM IN WINTER
THE YEAR AT A GLANCE
**£50** Food Pack
Home Survival **£150** Pack
Build a home **£750** for a flood affected family
**(or £375 half a share)**
## **PAKISTAN FLOODS**
Thanks to your generous support, we helped 151,940 people affected by the worst flooding Pakistan has ever witnessed, where 33 million people lost their homes and thousands died. Together we provided cooked meals, food packs and clean drinking water. We are rebuilding homes for flood-affected families, of which 217 are complete, and 142 are under construction.
**09**
EMERGENCIES
**£50** Food Pack **£150** Medical Aid Home Repair **£250** Fund
## **BANGLADESH FLOODS**
7.2 million people were devastated by some of the worst monsoon flooding Bangladesh has ever witnessed. Your generous donations helped us support approximately 19,000 people by providing cooked meals, emergency food packs, clean water and life-saving medical care. We also supported 100 families to rebuild their homes, and will be reconstructing schools that were affected by the flooding.
EMERGENCIES
**10**
The crisis in Yemen is worsening, where 20 million people are desperately hungry and in urgent need. Thanks to you, in 2022, we helped 11,980 Yemenis by providing food to 7,200 people, assisting 1,300 children through our child nutritional programme, provided clean water to 340 families each day and distributed freshly baked bread to 200 families daily.
Nutritional kit for **£25** malnourished children
**£50** Food Pack
Feed 100 families **£100** with 1,500 loaves of bread
DONATE | www.muslimcharity.org.uk
**11**
EMERGENCIES
or call us on 03000 111 786
Emergency **£50** Food Pack
**£200** Medical Aid
Family survival **£300** packs for 3 families
Gaza is one of the most impoverished and vulnerable places on Earth after decades of conflict and blockade. To tackle poverty and save lives, your donations helped us to support 2,500 people by providing insulin to vulnerable children, rehabilitating damaged homes, distributing household items and food.
EMERGENCIES
**12**
**£50**
Food Pack
**£250** Support a childfriendly space
Shelter for **£450** a refugee family
Over 1 million Rohingya refugees are living in overcrowded, unsanitary, temporary camps in Bangladesh, without adequate food, clean water or quality healthcare. In 2022, your donations helped 12,412 people by providing clean water through our water supply project, building 52 shelters, and supporting 100 children in our child-friendly spaces.
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**13**
EMERGENCIES
**£50** Food Pack
**£100** Food, hygiene and survival kit
Shelter for **£1,000** a refugee Family
Lebanon, which is also plagued by economic crisis, is hosting 2.1 million Syrian refugees, and also 300,000 Palestinian refugees. 88% of refugees live in poverty, struggling to cope. In 2022, we provided food to 3,000 Syrian refugees in Lebanon, helped keep 1,800 people warm in winter, and built 17 shelters. We helped six Palestinian families to start a businesses, provided 50 families with cash grants, and repaired 2 water supply systems supporting more than 300 Palestinian families. We also supported vulnerable Lebanese families with aid.
EMERGENCIES
**14**
Every year, millions of people living in poverty, fleeing war or dealing with disaster struggle to survive in winter. Your donations helped us support 9,800 people across 5 countries with nutritious food, warm clothing, blankets, heating and fuel. We provided winter aid to thousands of people in Bangladesh, Pakistan, Lebanon, Gaza and right here at home in the UK.
**£10** Winter Blanket 30 hot meals for **£30** UK homeless **£50** Food Pack
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
Provision of meals can increase school enrolment, help grow and develop bright sparks.
**----- Start of picture text -----**
£30 Provides 60 school meals
Provides 120
£60 school meals
Provides 1,000
£500 school meals
Hungry for a life
**----- End of picture text -----**
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**17**
Rescue a **£50** child from the streets
Rescue a **£300** child every month
**(or £25 per month)**
Helps run **£1,000** our shelter
## **RESCUE A CHILD**
There are 150 million children living on the streets worldwide, and they face unimaginable dangers each day. In 2022, we rescued 269 children, including children born in brothels, providing safe, home environments. We also provided informal education to 150 children in Bangladesh, and 600 in Pakistan.
CHILDREN OF THE WORLD
**18**
## **OPRHAN & HAFIZ SPONSORSHIP**
Your donations are helping to care for some of the world’s most vulnerable children through our Orphan sponsorship programme, Hafiz sponsorship project and our work for children with special needs. In 2022, we sponsored 555 children across Bangladesh, Burma, Nepal, Pakistan, Palestine, Somalia and Lebanon. 17 children we supported this year have special needs, and are benefiting from our dedicated programmes.
Sponsor an **£360** orphan or Hafiz
**(or £30 per month)**
DONATE | www.muslimcharity.org.uk
or call us on 03000 111 786
**£25** School bags and books
Educate a **£180** child for one year
**(or £15 per month)**
Adopt a **£10,000** school
**(or £840 per month)**
## **ADOPT A SCHOOL**
258 million children do not go to school, and many schools are poorly built or unsafe. Your donations are helping to renovate and rebuild public schools and madrassahs in impoverished communities, helping children access quality education. In 2022, we rehabilitated four schools in Pakistan, one school in Kenya and built seven Islamic schools (madrassahs) in Kenya, Uganda and Pakistan.
CHILDREN OF THE WORLD
**20**
Construction **£2,000** of one home
**(or £1,000 half share)**
## **HOMES FOR ZAKAT ELIGIBLE**
Your Zakat donations are truly changing lives around the world. Our Homes for the Zakat Eligible project is ensuring that people everywhere have a safe place to call home, providing shelter, security and warmth. In 2022, we built 21 homes for Zakat eligible families in Pakistan and Bangladesh.
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**21**
ZAKAT
Zakat for **£250** business startup Zakat for **£500** business startup Zakat for **£1,000** business startup
## **ZAKAT FOR BUSINESS STARTUPS**
Your Zakat donations are helping vulnerable families in Pakistan, Bangladesh, India, Yemen, Uganda, and Kenya to establish their own successful businesses. This means vulnerable families can develop a long-term source of income, breaking cycles of poverty. In 2022, we helped 559 people establish businesses, helping thousands of people to thrive.
**22**
ZAKAT
**----- Start of picture text -----**
ZAKAT CALCULATOR
It’s very important that you calculate
how much Zakat you need to pay each
year. Our Zakat Calculator has made
things super easy - just 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
ZAKAT DONATE | www.muslimcharity.org.uk 23
or call us on 03000 111 786
**----- End of picture text -----**
Water Hand **£150** Pump
**£150** Safe delivery of a newborn
Community **£2,000** Solar Well
**(or £166 per month)**
Build a Masjid **£10,000** in Africa
Large Solar **£15,000** Well (Asia or Africa)
**(or £1,250 per month)**
Your Sadaqah Jariyah donations bring ongoing reward as we create long-term change in impoverished communities, tackling poverty. We provide clean drinking water through wells and help save lives. We build mosques to enrich their deep love for Islam, and help children flourish by renovating schools. You’re making the world of difference.
SADAQAH JARIYAH
**24**
## **SAFE DELIVERIES**
Every day, over 7,000 babies are born still-born, and 800 women die from pregnancy-related issues, mainly due to a lack of medical expertise and sanitation. Your donations are saving lives with safe deliveries and medical care for expectant mothers and babies. We supported 15,000 patients across two hospitals in Pakistan in 2022.
**£150**
Safe delivery of a newborn
**£600**
Safe delivery of 4 newborn babies
DONATE | www.muslimcharity.org.uk
**25**
HONOURING OUR MOTHERS
or call us on 03000 111 786
**£500**
Share towards an incubator
Full cost of **£2,500** one incubator
**(or £210 per month)**
## **INFANT INCUBATORS**
Every year, 15 million babies are born premature, and over 1 million sadly do not survive. Incubators could help save lives, offering vital care to premature babies. In 2022, your donations helped to provide 14 incubators in vulnerable communities, helping to save thousands of precious lives.
**26**
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. In 2022, we sent 3 ambulances to Uganda to support local hospitals and to serve those in remote locations, one ambulance in India and one in Pakistan.
Share towards **£500** an ambulance Cost of one **£12,000** fully-equipped ambulance **(or £1,000 per month)**
DONATE | www.muslimcharity.org.uk
or call us on 03000 111 786
Water Hand **£150** Pump
## **WATER HAND PUMPS**
A hand pump is a small but efficient mechanism which gives a family clean drinking water in their homes. Clean water saves lives, uplifts entire communities and empowers women and children. In 2022, we installed 6,314 handpumps. From all handpumps installed by Muslim Charity to date, we are helping 688,475 people every single year.
SAFE WATER
**28**
Water well in **£750** Pakistan or Bangladesh
**(or £65 per month)**
Water well **£3,000** in Africa
**(or £250 per month)**
## **WATER WELLS**
Water wells extract water from a depth of over 100 feet below the ground, and allow large volumes to be collected easily. We are able to provide water in dry climates supporting remote and isolated communities. Your donations in 2022 helped build 177 water wells, and we are supporting 357,120 people every year through all water wells we have installed to date.
DONATE | www.muslimcharity.org.uk
**29**
SAFE WATER
or call us on 03000 111 786
**£550**
One Small Solar Water Well
Community **£2,000** Solar Well
**(or £166 per month)**
Large Solar **£15,000** Well (Asia or Africa)
**(or £1,250 per month)**
## **SOLAR WATER WELLS**
In areas facing drought and extreme water scarcity, environmentally-friendly and sustainable Solar Water Wells are a great way to provide communities with clean and safe drinking water for years to come. In 2022, we installed 20 large solar wells and 80 small solar wells in Pakistan, 8 solar water wells in Kenya and Uganda. Approximately 38,520 people are benefiting from solar water wells we have installed to date.
SAFE WATER
**30**
A Masjid (mosque) is the heart of any Muslim community, bringing people to gather for prayer and come together in celebration, worship, mourning and to learn. In deprived communities, masjids are often nonexistent or are frail structures. In 2022, we built 7 masjids in Pakistan, 14 masjids in Uganda and 6 masjids in Kenya.
If you want to fundraise for and then inaugurate a Masjid with your own hands, get in touch with us: **info@muslimcharity.org.uk**
In Ramadan, Brother Jahedul Islam fundraised **£10,000** towards building a Masjid in Africa and last year he got to visit and inaugurate the newly built Masjid Ar Rahman in Kigayaza Village, Rakai District, Uganda
One prayer area **£100** (Masalla) for a Masjid
Small Masjid **£8,500** in Asia
**(or £710 per month)**
Small Masjid **£10,000** in Africa
**(or £840 per month)**
DONATE | www.muslimcharity.org.uk
or call us on 03000 111 786
30 hot **£30** meals for UK homeless
**£60** Two winter kits
## **UK HOMELESS COMMUNITY**
Approximately 219,000 people are homeless in the UK, and this figure rises each year. In the winter, homeless people are at huge risk, likely to fall ill and experience devastating hunger. In 2022, we supported 335 homeless people in Manchester city with hot food and essential winter supplies. Since 2018 we have helped over 1,500 vulnerable homeless people.
**32**
UK HOMELESS COMMUNITY
**----- Start of picture text -----**
Give an uplifting and inspiring gift to a family in need, in your name or that of a loved
one. Each gift helps a vulnerable person or family the opportunity to break out of
poverty and live a better life, and can be a great way for you to honour someone you
care about. You can gift somebody in need a wheelchair, or give someone a sewing
machine or eggs so they can build a livelihood.
Order your gift today: www.muslimcharity.org.uk/gifts
Egg laying
£80 chicken set
for a family
£150 Sewing Machine
£200 Goat for a family
GIFTS DONATE | www.muslimcharity.org.uk 33
or call us on 03000 111 786
**----- End of picture text -----**
## **HAVE YOU MADE YOUR ISLAMIC WILL?**
**“It is not permissible for any Muslim who has something to will to stay for two nights without having his last will and testament written and kept ready with him.”**
## **BUKHARI**
Get your FREE Islamic Will: **wills.muslimcharity.org.uk**
**AJWA & MEDJOUL DATES**
Order today: **www.muslimcharity.org.uk/shop**
ISLAMIC WILLS & DATES
**34**
## **QURBANI**
Annually, Muslims celebrate Eid-ul-Adha by carrying out Qurbani, commemorating the sacred sacrifice of Prophet Ibrahim. Muslim Charity facilitates your Qurbani each year, delivering fresh meat to impoverished communities, where many people haven’t eaten meat all year. Last year your Qurbani supported approximately 681,975 vulnerable people in 12 countries.
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**35**
QURBANI
Animal sacrifice **£60** (goat in Africa)
Animal sacrifice **£135** (goat in Pakistan)
## **ANIMAL SACRIFICE & AQIQAH**
We support donors to offer their animal sacrifices, whether that is in the form Aqiqah (sacrifice in gratitude on the birth of a child) or Sadaqah to seek blessings from Allah Almighty. We distribute the meat amongst poor and vulnerable communities, and they cook nutritional meals for their families. In 2022, we facilitated 366 animal sacrifices in Pakistan, Somalia and Uganda benefiting an estimated 9,150 people.
ANIMAL SACRIFICE & AQIQAH
**36**
## **FIDYAH & KAFFARAH**
## **FIDYAH**
If you are unable to fast during Ramadan for reasons such as illness or pregnancy, you must compensate by paying Fidyah, and providing two meals to a poor person for each day of fasting missed.
## **KAFFARAH**
If any fasts are intentionally missed or broken without a valid reason then Kaffarah must be paid. The person 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.
Fidyah per day **£5** of Ramadan Fidyah for full **£150** month of Ramadan (30 days) Kaffarah per fast **£300** that is intentionally missed or broken
**----- Start of picture text -----**
FIDYAH & KAFFARAH DONATE | www.muslimcharity.org.uk 37
or call us on 03000 111 786
**----- End of picture text -----**
## **OTHER NEWS**
**Muslim Charity partners with UNRWA to support Palestine Refugees with Insulin Donation**
Muslim Charity has partnered with the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) by contributing $75,000 to provide 630 Palestine refugee patients in Gaza with a two-month supply of insulin for the treatment of Type 1 diabetes. An estimated 52,000 Palestine refugees rely on the UNRWA health programme for the treatment of diabetes each year. Without this life-saving treatment, these patients are at risk of developing a wide range of debilitating or even life-threatening complications.
**38**
NEWS
UNRWA offers primary healthcare to Palestine refugees at its 22 health centres with about four million consultations a year, covering maternal healthcare, child healthcare, non-communicable diseases, and disease surveillance.
The Gaza Strip has been marred by repeated rounds of hostilities, a skyrocketing unemployment rate, electricity supply blackouts and a fifteen-year blockade, restricting the movement of goods and people. This has caused a large-scale dependency on UNRWA services, including health services.
“Palestine refugees have enough suffering; they face many challenges which burden their lives and prevent them from leading a healthy life. It is our role, with the support of donors, to enable them to access health care and take off some of these burdens. Thanks to Muslim Charity for supporting UNRWA with insulin analogues that will provide a two-month supply to 630 Palestine refugees, most of whom are children. This support is expected to enhance the disease control level of these children and gives hope to these children and their families,” said Thomas White, Director of UNRWA Affairs in Gaza.
Vice-Chairman of Muslim Charity, Bakhtyar Pirzada, said: “Type 1 diabetes is a serious and lifelong condition for which there is no known cure. Managing type 1 diabetes is very challenging as it impacts every aspect of a person’s life, and if the condition is not managed well, it leads to serious complications and threatens life. This becomes even more difficult and challenging when it is a child who suffers from the condition, and the trauma and burden upon refugees in this situation is unimaginable. The work of UNRWA in this context is very significant and we are delighted to be a partner in this project of providing insulin analogues for 630 patients.”
In confronting the challenging circumstances in Gaza, this project will take a huge burden off their shoulders and help Palestine refugees access healthcare and lead a long and healthy life.
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**39**
NEWS
## **Platinum Jubilee Benches unveiled for local communities of Bassetlaw, Nottinghamshire**
Muslim Charity, which is based in Retford, organised an unveiling ceremony for 6 x Queen’s Platinum Jubilee Commemorative Benches which will be going to the local communities of Tuxford, Ranksill, Ranby, Mattersey, Rampton and Woodbeck and Headon cum Upton in Nottinghamshire.
The ceremony was held at Muslim Charity’s headquarters at Eaton Hall, Retford, and was attended by Rt Hon Robert Jenrick MP (Newark), Brendan Clarke-Smith MP (Bassetlaw), Councillor Ant Coultate (Rampton), Councillor Gerald Bowers (Ranskill and Mattersey), Councillor John Ogle (Tuxford and East Markham), Councillor Mike Introna (Retford East), Victoria Ramsey (Archdeacon of Newark) and many other members of the local community including parish councillors and Church leaders.
**40**
NEWS
Earlier on in the year, Muslim Charity provided life-saving defibrillators to two Bassetlaw villages and as part of its continuing efforts to support local communities, with assistance from the offices of Rt Hon Robert Jenrick MP (Newark) and Brendan Clarke-Smith MP (Bassetlaw), the provision of benches that can cater for local villages was a need that was highlighted. As a result, Muslim Charity procured six benches which were manufactured by GD Steel in Belfast and shipped over from Northern Ireland ahead of the unveiling ceremony. The design of the benches commemorates the lifelong service of the Queen coinciding with the Platinum Jubilee this year and it also depicts the national flowers of England (rose), Wales (daffodil), Scotland (thistle) and Northern Ireland (shamrock) on the benches, a wonderful way of bringing people together from across the nation.
Commenting on the occasion, Bakhtyar Pirzada (Vice Chairman of Muslim Charity), said:
“In rural landscapes, villages and across walking routes, benches – which sometimes go unnoticed – play a crucial role in providing ease and comfort during that moment of rest and reflection. The jubilee benches which are unique in their design, additionally marking the Platinum Jubilee of Her Majesty, the Queen, will hopefully be a memorable addition to the local villages and a support for the residents and visitors of these villages. We are grateful to the parish councils and local representatives for their support in bringing this project to fruition in a beneficial and meaningful way.”
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**41**
NEWS
## **The Grapple Hub Glory at BJJ 24/7**
The Grapple Hub is a new project of Muslim Charity aiming to promote the sport of Brazilian Jiu Jitsu and grappling in the heart of the East End, Tower Hamlets, London. In is a safe space for people to enjoy themselves and have fun, and at the same time learn useful life skills and thereby help reduce the rates of delinquency and violent crime in the area.
Since opening its doors it has gone from strength to strength in relation to participants, community cohesion and of course competitions. Nine members from The Grapple Hub took part in the BJJ 24/7 competition at the UEL Sport Dock in Becton on 28th August 2022. Many of the club’s white belts were making their debuts while some of the other experienced competitors were dusting off their cobwebs in contrary to others looking to set the mark.
**42**
NEWS
To kick start the ‘comp mode’ Riaz made a brilliant start to the day by winning the first match for TGH in the under 64kg (Light Feather Division). He fought bravely for his next two matches to secure himself 4th place in his first competition. Salah Uddin was knocked out in the first round of the same weight category but promises to be back in action with hard work and dedication. Power house Pearse also continued the pace winning his debut match with a staggering 25 points victory. Pearse lost his second match to a tough competitor but redeemed himself with an epic ‘Arm bar’ submission finish in his 3rd match to secure bronze (3rd place) for the TGH. A lot of learning has also been made for Musaddik who also debuted at the 70kg (Feather weight) category, he walked away having fought bravely with injuries and less mat time. Kamran finished with a ‘white belt whitewash’ securing double gold in both GI / No GI in the Ultra Heavyweight division (100.5kg +) with a total of 4 wins.
Staying true to the club’s motto “we don’t give up” Abdul Hannan was off to a bad start in the Blue Belt under 64kg category. He successfully defended 4 submission threats at the same time putting on a display for the audience. Having a bye in the bronze medal match secured, Abdul Hannan made a 3rd place finish. Shah Minhaj also fought bravely having signed up for the Ultra-Heavyweight GI, No GI and absolute. The former absolute champ walked away with silver with bye straight to the finals.
Azharul Khan held the fort in the Blue Belt division winning Gold in the GI under 76kg (Lightweight Division). He lost his first match in the No GI in close contest with the opponent securing a 3-1 finish in the final seconds. Still in high spirits Azharul fought back against a vicious leg locker through pressure and control securing a place in the final with his first opponent. It was a moment of revenge or retreat, Azharul fought bravely, with crowds cheering for both participants, the chants became louder and louder as the minutes ticked off. His opponent won in a close contest securing Azharul with Silver in the No GI after the total of 5 matches combined.
DONATE | www.muslimcharity.org.uk or call us on 03000 111 786
**43**
NEWS
In June 2022, a group of 28 cyclists took part in the Tour De Pakistan cycling challenge from Gilgit to Khunjerab Pass in aid of our Children of the World campaign
**TEAMMC** is our family of volunteers – the backbone of our organisation.
Our volunteers arrange 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.
TEAMMC
**44**
A group of sisters from the TEAMMC Cycling Club cycled from London to Brighton in March 2022 in aid of our “Honouring Our Mothers” campaign.
**----- Start of picture text -----**
A group of brothers from London fundraised
for various projects in Bangladesh and
visited them in February 2023 to see the
impact of their efforts.
**----- End of picture text -----**
Join the incredible TEAMMC today and help raise funds to support those most in need around the world.
**www.muslimcharity.org.uk/TeamMC**
TEAMMC
**45**
## **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:
**46**
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.
PLANS FOR THE FUTURE
**47**
## **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 £7.54 million. This is an increase of £1.89 million from the previous year’s income of £5.65 million, which was an increase of £1.53 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 (April/May 2022) and Qurbani / Eid-ul-Adha (June/July 2022). The increased resources enabled us to make a positive difference to the lives of needy families and communities around the world.
We have observed a continuation of changing trends in donor behaviour particularly in relation to mediums of donating, such as the gradual reduction over the years 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 customised 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.
**48**
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 £5.52 million, which was significantly more than the previous year
figure of £4.14 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 2023.
**49**
FINANCIAL REVIEW
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
**50**
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:
- so far as they are aware, there is no relevant audit information of which the charity’s auditor is unaware; and
• 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 30th July 2023 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
**51**
## **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 2022 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:
- give a true and fair view of the state of the charity’s affairs as at 31 October 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## 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.
**52**
INDEPENDENT AUDITOR’S REPORT
## 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:
- the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report has been prepared in accordance with applicable legal requirements.
## 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:
- adequate 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.
INDEPENDENT AUDITOR’S REPORT
**53**
## 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 and non-compliance with laws and regulations, was detailed below:
- The engagement partner ensured that they engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the charitable company through discussion with Trustees and other management and review of appropriate industry knowledge.
- We assessed the extent of compliance with laws and regulations identified above through making enquiries of management and reviewing all relevant correspondence.
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
INDEPENDENT AUDITOR’S REPORT
**54**
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our 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.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying
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 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 (UK)
INDEPENDENT AUDITOR’S REPORT
**55**
## **STATEMENT OF FINANCIAL ACTIVITIES**
(including income and expenditure account)
|||||2022||2021||
|---|---|---|---|---|---|---|---|
||||Unrestricted|Restricted|Total|Total||
||||funds|funds|funds|funds||
|||Note|£|£|£|£||
||Income and endowments|||||||
||Donations and legacies|5|1,706,681|5,812,288|7,518,969|5,632,149||
||Investment income|6|13|–|13|34||
||Other income|7|19,800|–|19,800|19,800||
|Total income|||1,726,494|5,812,288|7,538,782|5,651,983||
||Expenditure|||||||
||Expenditure on raising funds:|||||||
||Costs of other fundraising activities|8|317,753|–|317,753|286,087||
|Expenditure on
charitable activities||9, 10|–|5,521,817|5,521,817|4,135,675||
|Governance cost||11|178,320|–|178,320|139,020||
||Total expenditure||496,073|5,521,817|6,017,890|4,560,781||
|||||||||
|Net income|||1,230,421|290,471|1,520,892|1,091,202||
||Transfers between funds||(135,071)|135,071|–|–||
||Net movement in funds||1,095,350|425,451|1,520,892|1,091,202||
||Reconciliation of funds|||||||
||Total funds brought forward||458,456|1,589,245|2,047,701|956,499||
||Total funds carried forward||1,553,806|2,014,786|3,568,592|2,047,701||
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**56**
STATEMENT OF FINANCIAL ACTIVITIES
## **STATEMENT OF FINANCIAL POSITION**
||||2022||2021||
|---|---|---|---|---|---|---|
|||Note|£|£|£||
||Fixed assets||||||
||Tangible fxed assets|16||8,438|7,261||
||Current assets||||||
||Debtors|17|54,657||27,801||
|Cash at bank and in hand|||3,540,766||2,168,432||
||||3,595,423||2,196,233||
||Creditors: amounts falling
due within one year|18|35,269||155,793||
|Net current assets||||3,560,154|2,040,440||
||Total assets less current liabilities|||3,568,592|2,047,701||
|Net assets||||3,568,592|2,047,701||
||Funds of the charity||||||
||Restricted funds|||2,014,786|1,589,245||
||Unrestricted funds|||1,553,806|458,456||
|Total charity funds||19/20||3,568,592|2,047,701||
These financial statements were approved by the board of trustees and authorised for issue on 30th July 2023, and are signed on behalf of the board by:
**Mr M. I. H. Pirzada** Chairman & Trustee
STATEMENT OF FINANCIAL POSITION
**57**
**STATEMENT OF CASH FLOWSSTATEMENT OF CASH FLOWS**
|||2022|2021|2021|2021|
|---|---|---|---|---|---|
|||£|£|||
|Cash fows from operating activities||||||
|Net income||1,520,892|1,091,202|||
||Adjustments for:|||||
||Depreciation of tangible fxed assets|3,653|2,940|||
||Investment income|(13)|(34)|||
||Website & donation processing fees|34,238|55,577|||
||Accrued (income)/expenses|(174)|2|||
||Changes in:|||||
||Trade and other debtors|(26,856)|2,056|||
||Trade and other creditors|(120,350)|(305,035)|||
||Cash generated from operations|1,411,390|846,708|||
||Website & donation processing fees|(34,238)|(55,577)|||
||Investment income|13|34|||
||Net cash from operating activities|1,377,165|791,165|||
||Cash fows from investing activities
Purchase of tangible assets|(4,831)
(4,831)|(521)
(521)|
||
||Net cash used in investing activities|||||
||Net increase in cash and cash equivalents|1,372,334|790,644|||
||Cash and cash equivalents at beginning of year|2,168,432|1,377,788|||
||Cash and cash equivalents at end of year|3,540,766|2,168,432|||
**58**
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 sub-classes: restricted income funds or endowment funds.
**59**
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:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- legacy income is recognised when receipt is probable and entitlement is established.
- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## 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:
- Expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
- Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
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
**60**
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 cash-generating 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.
## 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.
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.
**61**
NOTES TO THE FINANCIAL STATEMENTS
## 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|2022|
|||£|£|£|
|**Donations**|||||
|Donations||1,041,037|5,812,288|6,853,325|
|**Gifts**|||||
|Gift Aid||665,644|–|665,644|
|||1,706,681|5,812,288|7,518,969|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2021|
|||£|£|£|
|**Donations**|||||
|Donations||750,017|4,400,062|5,150,079|
|**Gifts**|||||
|Gift Aid||482,070|–|482,070|
|||1,232,087|4,400,062|5,632,149|
|6. Investment income|||||
||Unrestricted|Total Funds|Restricted|Total Funds|
||Funds|2022|Funds|2021|
||£|£|£|£|
|Investment income - saving|13|13|34|34|
## 7. Other income
|7. Other income|||||
|---|---|---|---|---|
||Unrestricted|Total Funds|Unrestricted|Total Funds|
||Funds|2022|Funds|2021|
||£|£|£|£|
|Rental Income|19,800|19,800|19,800|19,800|
**63**
NOTES TO THE FINANCIAL STATEMENTS
## 8. Costs of other fundraising activities
||Unrestricted|Total Funds|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|2022|Funds 2021|2021|
||£|£|£|£|
|Printing and Stationery|2,483|2,483|1,842|1,842|
|Advertising|8,200|8,200|5,875|5,875|
|Motor and Travel|3,202|3,202|5,514|5,514|
|Consultancy Fees|32,733|32,733|28,974|28,974|
|Other ofce costs|20,113|20,113|21,650|21,650|
|Support Costs(note 10)|251,022|251,022|222,230|222,230|
||317,753|317,753|286,087|286,087|
## 9. Expenditure on charitable activities by fund type
||Restricted|Support Cost|Total Funds|Total Funds|
|---|---|---|---|---|
||Funds|2022(note 10)|2022|2021|
||£|£|£|£|
|Qurbani|906,148|28,651|934,799|534,083|
|Orphans|841,296|26,600|867,897|548,387|
|Masjid|462,429|14,621|477,050|680,415|
|Water|1,192,822|37,715|1,230,537|946,344|
|Iftar/Food|325,250|10,284|335,534|160,587|
|Emergency|926,410|29,291|955,701|739,720|
|Health|194,647|6,155|200,801|76,232|
|Education|292,341|9,243|301,585|284,211|
|Livelihood|211,236|6,679|217,914|165,696|
||5,352,578|169,239|5,521,817|4,135,675|
**64**
NOTES TO THE FINANCIAL STATEMENTS
## 10. Analysis of support costs
|10. Analysis of support|costs|||||
|---|---|---|---|---|---|
||Fundraising|Charitable|Governance|
Total Support|Total Support|
||Activity|Activity|Activity|Cost 2022|Cost 2021|
||£|£|£|£|£|
|Salaries and wages|124,310|62,155|62,155|248,620|234,252|
|Postage & stationery|1,998|171|114|2,284|3,404|
|Telephone|11,617|8,132|3,485|23,235|13,905|
|Repairs and renewals|17,292|5,764|5,764|28,821|2,345|
|Operating lease – P&M|763|109|218|1,090|1,143|
|IT & computer expenses|17,119|10,271|6,848|34,238|55,577|
|Light and heat|5,172|3,103|2,068|10,344|2,436|
|Website & donation
processing fees|65,011|78,620|7,555|151,186|136,076|
|Depreciation|2,557|913|183|3,652|2,938|
|Food & entertainment|-|-|-|-|827|
|Subscription|4,014|-|7,792|11,807|7,619|
|Sundry expenses|1,168|-|2,255|3,423|766|
||251,022|169,239|98,438|518,698|461,289|
## 11. Governance Cost
|11. Governance Cost||||
|---|---|---|---|
||Unrestricted|Total Funds|Total Funds|
||Funds|2022|2021|
||£|£|£|
|Legal & professional fee|27,441|27,441|6,663|
|Insurance|10,002|10,002|6,747|
|Accountancy fee|39,191|39,191|36,690|
|Audit fee|4,320|4,320|4,320|
|Foreign exchange loss|(1,072)|(1,072)|(1,290)|
|Support Cost(note 10)|98,438|98,438|85,889|
||178,320|178,320|139,020|
**65**
NOTES TO THE FINANCIAL STATEMENTS
## 12. Net income/(expenditure)
Net income is stated after charging/(crediting):
|Net income is stated after charging/(crediting):|||
|---|---|---|
||2022|2021|
||£|£|
|Depreciation of tangible fxed assets|3,653|2,940|
|Operating lease rentals|1,090|1,143|
|13. Auditors remuneration|||
||2022|2021|
||£|£|
|Fees payable for the audit of the fnancial statements|4,320|4,320|
## 14. Staff costs
|14. Staf costs|||
|---|---|---|
|The total staf costs and employee benefts for|||
|the reporting period are analysed as follows:|||
||2022|2021|
||£|£|
|Wages and salaries|357,174|316,346|
The average head count of employees during the year was 14 (2021: 13). The average number of full-time equivalent employees during the year is analysed as follows:
||2022|2021|
|---|---|---|
||No.|No.|
|Number of staf|14|13|
## 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.
**66**
NOTES TO THE FINANCIAL STATEMENTS
## 16. Tangible fixed assets
|16. Tangible fxed assets|||||
|---|---|---|---|---|
||Fixtures|Motor|||
||and fttings|vehicles|Equipment|Total|
||£|£|£|£|
|**Cost**|||||
|At 1stNovember 2021|19,077|6,250|83,016|108,343|
|Additions|–|–|4,831|4,831|
|**At 31st October 2022**|19,077|6,250|87,847|113,174|
|**Depreciation**|||||
|At 1stNovember 2021|17,424|4,767|78,891|101,082|
|Charge for the year|331|371|2,951|3,653|
|**At 31st October 2022**|17,755|5,138|81,842|104,735|
|**Carrying amount**|||||
|**At 31st October 2022**|1,322|1,112|6,005|8,438|
|At 31stOctober 2021|1,653|1,483|4,125|7,261|
|17. Debtors|||||
||||2022|2021|
||||£|£|
|Prepayments and accrued income|||15,857|8,001|
|Rent deposit|||16,800|16,800|
|Other debtors|||22,000|3,000|
||||54,657|27,801|
|18. Creditors: amounts falling due within one||year|||
||||2022|2021|
||||£|£|
|Trade creditors|||27,300|22,564|
|Accruals and deferred income|||6,700|6,874|
|Social security and other taxes|||1,269|1,355|
|Qard-e-Hasanah for the Eaton Girls School Project|||–|125,000|
||||35,269|155,793|
**67**
NOTES TO THE FINANCIAL STATEMENTS
## 19. Analysis of charitable funds
## Restricted funds
|Restricted funds||||||
|---|---|---|---|---|---|
||At 1stNov|Incoming||Outgoing|At 31stOct|
||2021|resources|Transfer|resources|2022|
||£|£|£|£|£|
|Qurbani|998|1,132,820|-|934,799|199,019|
|Orphans|525,544|773,115|-|867,897|430,763|
|Mosques|-|431,355|45,695|477,050|-|
|Water|457,968|1,440,523|-|1,230,537|667,954|
|Food|99,744|499,813|-|335,534|264,023|
|Emergency|504,992|856,964|-|955,701|406,255|
|Health|-|223,537|15,386|200,801|38,121|
|Education|-|310,237|-|301,585|8,651|
|Livelihood|-|143,925|73,989|217,914|-|
||1,589,245|5,812,288|135,071|5,521,817|2,014,786|
- Restricted funds represent donation received and held in trust for a particular purpose and must be applied to object specified by the donor. Charity has designed and implemented necessary checks and control system to ensure that funds received for any particular purpose applied correctly and in line with terms of the trust. Charity has developed a robust monitoring mechanism to ensure effective and efficient implementation of various charitable projects to reduce poverty and suffering.
- Grant making procedures involve selecting reputable and well-known overseas charitable organisations to form a partnership with an aim to deliver effective and speedy relief work to those in need. Charity management continuously monitors the work of each partner organisations on various stages of project implementation and only release allocated funds where partner organisation demonstrates effective implementation of agreed charitable objectives.
- Donation received into emergency fund is mainly utilized to provide relief work in the events of natural calamity, war or famine. Any surplus donation after delivering the necessary relief work against the intended purpose is than applied to other charitable projects.
## Unrestricted funds
|Unrestricted funds||||||
|---|---|---|---|---|---|
||At 1stNov|Incoming||Outgoing|At 31stOct|
||2021|resources|Transfer|resources|2022|
||£|£|£|£|£|
|General donation|458,456|1,726,494|(135,071)|(496,073)|1,553,806|
**68**
NOTES TO THE FINANCIAL STATEMENTS
## 20. Analysis of changes in net debt
||20. Analysis of changes in net debt||||
|---|---|---|---|---|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2022|
|||£|£|£|
||Tangible fxed assets|8,439|–|8,439|
||Current assets|1,580,637|2,014,786|3,595,423|
||Creditors less than 1 year|(35,269)|–|(35,269)|
||Net assets|1,553,806|2,014,786|3,568,593|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2021|
|||£|£|£|
||Tangible fxed assets|7,261|–|7,261|
||Current assets|606,988|1,589,245|2,196,233|
||Creditors less than 1 year|(155,793)|–|(155,793)|
||Net assets|458,456|1,589,245|2,047,701|
|21. Financial instruments|||||
The carrying amount for each category of financial instrument is as follows:
||2022|2021|
|---|---|---|
||£|£|
|Financial assets measured at fair value through income and expenditure|||
|Financial assets measured at fair value
through income and expenditure|3,540,766|2,168,432|
|Financial assets that are debt instruments measured at amortised cost|||
|Financial assets that are debt instruments
measured at amortised cost|38,800|19,800|
|Financial liabilities measured at fair value through income and expenditure|||
|Financial liabilities measured at fair value
through income and expenditure|35,269|155,793|
## 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.
**69**
NOTES TO THE FINANCIAL STATEMENTS
## **DONATION FORM**
## Your Details:
Name: Mr / Mrs / Ms
Address:
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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
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## The Direct Debit Guarantee:
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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
**70**
DONATION FORM
## **OTHER WAYS TO DONATE**
**TELEPHONE:** To make a credit/debit card donation over the telephone please call us on **03000 111 786**
**WEBSITE:** You can donate online using our mobile-friendly website quickly and securely by visiting **www.muslimcharity.org.uk**
**TEXT MESSAGE:** 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.
**POST:** Complete the donation form on the previous page and send it to us: **Muslim Charity, Eaton Hall, Retford, Nottinghamshire, DN22 0PR (UK)**
**CHEQUE:** You can send us a cheque making it payable to “Muslim Charity” and sending to the above-mentioned address
**BANK TRANSFER:** 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 **03000 111 786** and inform us so we can send you a receipt and allocate your donation to the correct project.
DONATE | www.muslimcharity.org.uk
OTHER WAYS TO DONATE
**71**
or call us on 03000 111 786
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Muslim Charity, Eaton Hall, Retford, Nottinghamshire, DN22 0PR (UK)
Charity Registration No.: 1078488