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2020-12-31-accounts

MUSLIM HANDS Annual Report and Financial Statements For the Year Ending 31 December 2020

Company number 05080486

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CONTENTS

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Legal and Administrative Information

Trustees and statutory directors Dr Musharraf Hussain Mohammad Amin-ul Hassanat Shah Syed Lakhte Hassanain Sahibzada Ghulam Jeelani Saffi Ullah Mohammad Arshad Jamil Abdul Qaduier Khan Mohammad Zameer

Sub-Committees to the Board Programmes Committee Audit Committee Fundraising Committee Company number 05080486 (country of incorporation is England and Wales)

Charity registration number 1105056 (country of registration is England and Wales)

Registered office 148-164 Gregory Boulevard, Hyson Green, Nottingham, NG7 5JE Company secretary Dr Musharraf Hussain Auditor

Sayer Vincent LLP, Chartered Accountants and Statutory Auditors Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

Internal Auditor BDO LLP, Regent House, Clinton Avenue, Nottingham, NG5 1AZ Bankers National Westminster Bank plc, Hyson Green, Nottingham Santander UK plc, Manchester Business Centre, Manchester Al Rayyan Bank plc, Edgbaston House Birmingham

Solicitors

Freeth Cartwright LLP, Cumberland Court, Nottingham Knights PLC, 84 Friar Lane, Nottingham

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Assalamu Alaikum,

Over the past 27 years, Muslim Hands have dedicated themselves to humanitarian and development work. This began in 1993, when the horrors of the Bosnian conflict sent shockwaves through the UK, and a community in Nottingham came together to collect aid for those suffering.

2020 was a year of opportunities and challenges and we are extremely grateful to our donors for continuing to support those in need despite the pandemic. Their inspirational generosity allowed our teams and partners to build on the foundations of vital projects worldwide. We were able to carry on educating children in our schools, expand our work in Yemen beyond what anyone could have imagined, provide thousands of communities with life-saving water and so much more.

The fact that we were able to expand our development work during an economic crisis is a testament to the commitment of UK donors to global wellbeing. They facilitated a range of improvements to our WASH facilities, such as installing solar-systems in existing wells to improve accessibility to quality water. (This year, 1.5 million people have been supported through the establishment of 13,000 water wells, alhamdulillah). They also helped us maintain our pupils’ learning during the pandemic, funding multiple projects to support over 12,000 orphans and 127,000 school children through Muslim Hands’ educational programmes.

In 2020, our donors and our award-winning volunteer team also responded to growing concerns around food insecurity in the UK. Through The Open Kitchen in London, we targetted the most vulnerable members of the community, providing essential meals to hundreds of families a day. We also successfully partnered with FareShare UK to supply over 1 million meals through FareShare’s network of partners and organisations.

Through the generosity of our supporters, the commitment of our partners and the hard work of our teams and volunteers on the ground, we have been able to accomplish many successes in one of the most difficult years we have faced. We never could have envisaged the way the ‘Muslim Hands family’ would grow back in 1993 and this dedication to helping others has allowed us to provide emergency relief and transform the lives of millions worldwide.

In sha Allah, we will continue to grow and expand our programmes worldwide, building our network of partners, increasing local capacity and working alongside communities to meet their needs and improve their lives. By Allah, your support has helped millions of people and we look forward to working together to tackle the root causes of poverty and injustice!

Wassalamu Alaikum, Syed Lakthe Hassanain

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WHAT ARE s WHAT DO THEY MEAN FOR ? ~~&~~

WHAT DO THEY MEAN FOR OUR WORK?

WHAT ARE SDGS?

The Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity. Led by the United Nations Development Programme, this set of 17 goals imagines a future, just 15 years from now, free from poverty and hunger and safe from the worst effects of climate change.

Muslim Hands aims to ensure that the work we do is targeting these goals as part of a united global effort. Our approach is to work in line with the SDGs, while putting a special focus on children who are suffering from poverty, conflict and disaster.

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HIGHLIGHTS OF 2020 IMPACT NUMBERS

3.8+ MILLION People supported across 29 locations

94 Muslim hands schools

1.9+ MILLION Women supported

122 Goverment partnership schools

1.5+ MILLION Children supported

13,000 Wells built

12,000 Orphans sponsored

133 Religious institutions

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Afghanistan 123,385 beneficiaries Mexico Albania 1,463 beneficiaries Niger Bangladesh 292,105 beneficiaries Pakistan Gambia 49,663 beneficiaries Palestine India 4,425 beneficiaries Rwanda Indonesia 3,581 beneficiaries Senegal Kashmir (India) 61,453 beneficiaries Somalia Kashmir (Pakistan) 341,703 beneficiaries Sri Lanka Lebanon 55,5577 beneficiaries Sudan Malawi 36,679 beneficiaries Turkey Mali 276,458 beneficiaries United Kingdom Mauritania 12,607 beneficiaries Yemen

1,700 beneficiaries 157,394 beneficiaries 1,111,463 beneficiaries 105,859 beneficiaries 3,375 beneficiaries 142,203 beneficiaries 374,565 beneficiaries 66,862 beneficiaries 133,087 beneficiaries 123,957 beneficiaries 204,762 beneficiaries 189,564 beneficiaries

On the Frontline of Emergencies | 626,000 people supported

Emergencies have always been one of the most important areas of MH’s programme work. We understand that when an emergency hits, we need to ensure families and communities have access to basic needs quickly and effectively. This can be the difference between life and death. Muslim Hands has over 27 years of experience in responding to emergencies and has built a global network of partners and organisations in order to access the most remote areas effciently. This year alone, our supporters responded to over 12 emergencies worldwide. These included complex and protracted crises, such as the conflicts in Yemen and Syria, to other lesser-known emergencies, such as the floods in Pakistan. As a result, we were able to give relief to over 626,000 people.

SDG End poverty in all its forms everywhere | Target 1.3

Social protection is a human right, a social and economic necessity and plays a key role in preventing child labour. In Yemen, our efforts in extending social protection have underlined its importance in reducing poverty and vulnerability, redressing inequality and increasing inclusive growth. Therefore, our emergency programmes aim to implement appropriate social protection systems and measures for all.

Yemen

The situation in Yemen has continued to deteriorate due to the ongoing hostilities. Currently, Yemen is experiencing one of the largest humanitarian crises in the world. 24.3 million people are in need and over 4 million have been displaced. 16.2 million (over half the population) are food insecure and over 2 million children are still out of school. Since 2019, our supporters have been funding essential food, WASH and health programmes in Yemen. In 2020, we reached nearly 200,000 individuals.

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YEMEN CASE STUDY

My family is from Yemen, going back ten generations in a country that gave us so much promise but has now been left in pieces. Being the country manager of the Muslim Hands Yemen Office for over a year and residing in the UK, my time is split between both countries. Each visit over the past six years has been overcome with sadness, tears and heartbreak. The man-made catastrophe has not spared anyone. Many of my friends have lost someone from either the conflict, starvation or diseases like cholera and coronavirus. I have been working in the charity sector for nearly five years and I supported the opening of Muslim Hands’ first Yemen Office last year in the temporary capital of Aden. We have been working closely to coordinate with the UN and cluster NGO’s weekly, carrying out needs assessments and implementing projects in 18 of the 22 governates in Yemen. Through the generosity of our donors, Muslim Hands can implement projects in food security, child protection, education, WASH and health.

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SCHOOL MEALS
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Our supporters have been providing free school meals across three schools in Taiz city, reaching over 2,000 students daily. Our impact assessment has shown that through the provision of food at the schools, not only has the programme decreased malnutrition, it has also increased attendance and enrolment within the education programmes across the district.

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SAFE DRINKING WATER

Our teams on the ground found that due to the internal displacement of many communities, families did not have adequate access to safe drinking water facilities. We supported these communities by rehabilitating existing WASH facilities and infrastructure, ensuring that the needs of the population can be met. This included the installation of solar panels and new water access points.

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BREAD FACTORIES

Muslim Hands has been running two bread bakeries in Aden and Ma’rib. The bakeries provide 6,000 loaves of bread a day, helping to ensure that these communities have access to a core, staple food item. With multiple access points across the city, this project provides the most vulnerable members of society with the reassurance that their basic needs are being met.

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ETHIOPIA CONFLICT

In November 2020, more than 50,000 people fled conflict in Ethiopia’s Tigray region, escaping to eastern Sudan. Many of those who fled were sheltered in existing camps in the Gadrif and Kassal states. Working with local and state actors, Muslim Hands was able to provide 3,000 families with essential food and NFI provisions. Due to the ongoing risk of COVID-19 in those camps, we also worked within the local health infrastructure to provide families with essential PPE equipment.

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SINDH FLOOD EMERGENCY RESPONSE IN PAKISTAN

In August 2020, the monsoon rains affected communities in both rural and urban Sindh, causing 136 deaths and several injuries. Essential infrastructure, including roads, bridges and homes were severely damaged. Our donors provided cooked food, dry food, non-food items, health hygiene kits and safe drinking water in temporary shelters to the villages that were affected by the flooding. In total, we managed to reach 9,000 individuals within Karachi, Badin and Thatta.

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LEBANON BEIRUT EXPLOSION

Working with our partner in Lebanon, we responded to the explosion in Beirut through two phases. In the first phase, we supported 6,540 beneficiaries by providing them with food parcels and drinking water. The second phase focused on two projects: rehabilitating houses that were affected by the explosion and helping to run two mobile health clinics, providing free medications and prescriptions for patients. This project targeted the elderly within the areas impacted by the explosion, improving their access to healthcare services. These areas included Mar Mikhael, Gemayzi, Bourj Hammoud and Karantina regions. Through our partner, we provided an ambulance that serviced eight mobile clinics, distributing medications and offering primary healthcare services – an essential project after many of Beirut’s hospitals were destroyed.

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EMERGENCY

Winter Campaign

Our donors fund an annual winter relief campaign and this year we worked in Afghanistan, India-administered Kashmir, Lebanon, Mauritania, Palestine, Pakistan and Turkey, reaching nearly 22,000 individuals in total. This campaign involved distributing food and non-food

WINTER CASE STUDY

23-year-old Razia, a mother in Kabul, Afghanistan, is the

only breadwinner for her four young daughters. Razia has been solely responsible for her children since 2016 when her husband went to look for work in Iran. She hasn’t heard from him since then and has no idea if she is a widow and her children are orphans.

During winter, life gets extremely hard for Razia and her children. In Afghanistan, temperatures can drop as low as -15 degrees. Her daughters do not have proper shoes, let alone winter clothes and blankets to keep warm. They face heavy snowfall, icy rain and below-freezing temperatures without the most basic protection.

Razia recounted to our team a painful memory from a previous winter. Her home does not have electricity, so her neighbours had given them candles to use. Razia was so tired one evening that, when she lit one of the candles, she accidentally set a fire and was unable to control it. All their belongings burned - their clothes, blankets, everything. Our annual winter campaign lifts a huge burden off mothers like Razia, providing them with blankets and warm clothes, as well as basic foods like rice, pulses and cooking oil, helping them get thei families through the worst of the cold season.

items, such as clothes, blankets and heaters. These

winter kits were provided to widows, orphans, the elderly, people with disabilities and vulnerable families living within the target communities.

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EMERGENCY

SYRIA

In 2020, we implemented a bread distribution project in Idlib, Syria, to tackle two problems: families being unable to afford bread and a lack of employment opportunities in the local area. Over 2,000 bread packages a day have been distributed, reaching over 6,500 beneficiaries daily. The bread factory is also providing employment to fifteen members of the local community.

COVID-19 RESPONSE

As part of our global response to the pandemic, we supported health infrastructure in 12 locations. This included supplying emergency PPE to frontline health workers and medical practitioners, allowing them to safely deliver a vital response to COVID-19 outbreaks. Our PPE distribution reached over 123,000 health workers worldwide.

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127,000 STUDENTS

EDUCATION

Many educational institutions had to shut down for most of the academic year, due to COVID-19. The pandemic also resulted in the closure of our schools; however, maintaining pupils’ learning was essential. Therefore, our schools deployed a ‘School Home Learning Strategy’ to cope with the new learning conditions. This allowed teachers to communicate with pupils and their parents and guardians. Where possible,

we organised online teaching by our school teachers, using virtual meeting apps such as Zoom and re-designedschemes of work to suit an online learning environment. Working alongside the governmental education infrastructure, Muslim Hands ensured limited disruption to the education of tens of thousands of students who rely on us for education.

COVID-19 AND MUSLIM HANDS’ SCHOOLS

Establishment of STSs

(Specialist Technology Schools)

In 2020, Muslim Hands initiated an STS programme in Pakistan. Five Schools of Excellence (SOEs) were selected and given funds to implement the STS concept.

This programme uses digital technology to help children acquire the skills necessary to obtaining future jobs involving new technologies. This model creates a balance between traditional methodologies of teaching and new technology for digital learning skills. Schools were given funding for technological classroom advancements in learning, including computers, interactive whiteboards, tablets and software packages, all to support schools in their journey towards becoming a specialist technological school. The results from this intervention were impressive and SOEs have benefitted from this opportunity.

Teacher Training

selected to be part of this in-house training programme to increase capacity and ensure that teachers have access to good practice notes to continually improve their skillset. Muslim Hands believes that having dedicated and highlytrained teachers thoroughly improves the quality of education that is provided throughout our institutes, giving our students the best possible foundation for their future. SDG Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Target 4.1

Muslim Hands strives to ensure that girls and boys have access to completing a free, equitable and quality education. Target 4.c

We aim to not only substantially increase the supply of qualified teachers, but also provide our teachers with quality training programmes, ensuring that there is constant international cooperation within the countries we work in.

In Pakistan, Muslim Hands has now introduced Advanced Skills Teacher (ASTs) training. High-achieving teachers are

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12,000 ORPHANS

ORPHANS

ORPHAN SPONSORSHIP

This year, our donors supported our orphans programme in 16 countries across Asia, Africa, and the Middle East, sponsoring around 12,000 orphans. The primary purpose of the sponsorship is to allow orphan students to access education. Through this interventions, many orphan students have been able to graduate or start employment. We always ensure that there is a good gender balance of beneficiaries within our programmes; in 2020, around 47% of sponsored orphans were female and 53% were male.

ORPHAN CASE STUDY

Nahlia’s father passed away in a car accident when she was only nine years old. Her mother, already partially blind, became very ill after his death and Nahlia became the primary carer for her mother and her two elderly grandparents. They relied on handouts from family, neighbours and friends, living on less than £7 a week.

At aged 11, a generous donor sponsored Nahlia to become a student at our Omdurman School of Excellence in Sudan - and it transformed her life. Nahlia’s teachers encouraged her to make friends and join the sports and English clubs and her grades improved dramatically. At aged 17, Nahlia achieved a mark of 92% in her university exams and became the first woman in her family to attend university and graduate in medicine. She is now on her way to becoming a qualified doctor.

Thanks to our generous orphan sponsors and inspirational teachers, thousands of children like Nahlia are fulfiling their dreams every day.

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CASH TRANSFER PROGRAMME

This year, our sponsorships team introduced Cash Transfer Guidelines, to help build the capacity of our partner organisations. We provided online training courses to partner offices to ensure the guidelines were understood and followed in the implementation of the programmes. The impact of this training workshop has been extremely successful and we aim to carry out further training throughout 2021.

We also introduced a scholarship programme to support higher education students in continuing their studies. This programme provides students in colleges, universities and vocational training centres with bespoke support as needed.

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DISABILITY SUPPORT

Over 750 special needs students were supported in five Disability Education Centres across Pakistan. This programme provided the centres with essential equipment, such as braille textbooks and wheelchairs. This project guarantees that there is sufficient support available for all students and ensures that there are no obstacles in the way of their education.

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RELIGIOUS EDUCATION PROGRAMMES

Over 72,560 people supported | 133 religious institutions built

The spiritual and moral teachings of Islam are a gift that allows mankind to flourish. History bears witness to the transformative effects the faith has on individuals and societies when practised correctly.

For over 20 years, we have been committed to supporting the religious education of Muslims around the world, from rural villages in Africa to renowned Islamic institutes in Pakistan, to convert communities in Mexico. By focusing on the spiritual wellbeing of our beneficiaries, Muslim Hands has contributed to producing religiously literate, compassionate and altruistic individuals who are now benefiting the wider society.

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A masjid is at the heart of any local Muslim community. It provides a place for its worshippers to pray and contemplate, as well as a centre for educational

programmes, meetings, resolving disputes, conducting marriage ceremonies and other important services. Masjids help people learn more about Islam and nurture their moral and spiritual development.

Muslim Hands donors have been building masjids in rural areas where communities cannot afford to build their own. This year, we constructed masjids in locations across Asia and Africa, including Bangladesh, Niger, Sri Lanka, Malawi, Pakistan.

RURAL MASJIDS PROGRAMME

AL-AQSA LIGHTING

Masjid Al-Aqsa, located in Jerusalem, is the third holiest site in Islam. Our donors have been given many opportunities to help preserve this sacred site since 2008 and they have always responded with incredible generosity. This year, we embarked on a major renovation of the Qibali Masjid, the main masjid in the Al-Aqsa complex.

This project involves working with our partner to install a stateof-the-art lighting system, replacing the 30-year-old lighting system that had become a fire hazard. So far, we have rewired and installed a state-of-the-art LED lighting system in half the Masjid. Three out of four phases have been completed; once the renovation is finished, we will have rewired the lighting system of the entire Masjid, added new spotlights throughout the building and installed a new lighting system that is both safe and befitting of this important historical and religious site.

Since 2008, our supporters have been helping to maintain The Great Mosque of Djenne in Mali. It was first built in the 13th century and the current structure has stood there since 1907. As one of the most famous landmarks in Africa, the Great Mosque hosts both an Islamic Library and Heritage Centre, housing texts dating back to the 14th century. It is the largest mud-built structure in the world and is considered a UNESCO World Heritage Site. Muslim Hands regularly supports the staff who work here with their salaries, helping to maintain this great landmark of Islamic history and promote religious education. This year, we also supported the manuscript preservation which is taking place in the Djenne Library, asking our donors to fund new computers, printers, scanners and cameras to assist them with this difficult, yet crucial task.

DJENNE MASJID

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ADVOCACY

In 2020, Muslim Hands established its first-ever global advocacy campaign on child mental health in the developing world. We successfully carried out field research in Bangladesh, Malawi and Pakistan, analysing the current understanding of child mental health. Our campaign aims to address the importance of child and adolescent mental health and well-being in low-middle income countries (LMIC), looking at the importance of giving teachers and caregivers access to mental health training within schools. From our research, we have

developed a toolkit that aims to train teachers on what mental well-being is and how to address any concerns of mental health within students.

Our advocacy campaign aims to ask governments in LMIC to invest more in mental health and raise awareness of mental well-being amongst communities. We hope to be the first Muslim INGO that advocates for mental wellbeing within schools and the wider community.

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1.5m people supported Water Wells

WASH

Globally, 1 in 10 people do not have access to safewater and Muslim Hands is addressing this by designing and developing water wells for vulnerable communities worldwide. In 2020, we introduced a range of improvements to well designs and implementations, including installing solar-powered systems to improve accessibility and to clean water.

In the last year, our supporters have built 13,000 new water wells across the globe. This improvement in water access has improved health and hygiene, increased water usage and improved the education enrolment in rural villages, as well as reducing the risk associated with water collection. We strive to meet the specific needs of communities by offering a wide range of WASH programmes, such as domestic water access points, community water programmes and filtration plants.

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WASH Case Study

Batamo is a 26-year-old mother who lives in the village of Taliko, 17km from Bamako, the capital of Mali. Batamo and her 10-year-old daughter, Alou, used to spend hours every day walking to collect water from a mountain stream and then carrying the water down to their village. If they made this long journey during the day, Alou had to miss school. Alou was already falling behind and she didn’t have the time to build the foundation that would help her in further education and her later life. Batamo felt that she was neglecting her duties as a mother by taking Alou away from school and would often collect water at night instead, leaving her children and husband at home after dinner to walk into the mountains.

School WASH Improvements

A recent government study in Pakistan found that 62.5% of students are facing difficulty in getting enough water for handwashing facilities and many schools do not meet the student-to-toilet ratio. This lack of sanitation is the major factor for school dropouts, especially amongst young girls. To tackle this problem, our team carried out a WASH improvement programme across schools in the Punjab province of Pakistan.

When a generous donor constructed a water well in their village, it instantly transformed their lives. Alou can now go to school and her grades are improving. Batamo is so grateful that she will never have to ask her two younger children, Zoumana (aged 5) and Farima (aged 3) to miss school so they can help her collect water. Her three children will have the opportunity to attend school every day, paving the way for a brighter future. Batamo has more time to spend with her family, a simple happiness that she was unable to experience before the well was constructed.

Moreover, Batamo’s children are much healthier now that they are only consuming water from a safe well. Clean water and sanitation reduce the spread of waterborne diseases such as diarrhoea, often saving children’s lives.

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WASH

Muslim Hands identified 73 schools around the city of Lahore and thereafter constructed new washrooms and repaired and upgraded old washrooms. We also installed 35 new drinking points for cool water within the schools, while 28 of the schools were provided with safe hand washing points. Moreover, eight schools were selected to be provided with boreholes with electric water pumps and the sewerage system was upgraded in 18 schools.

In all 73 schools, we set up WASH clubs and ran training sessions to ensure both students and teachers were aware of the need for safe drinking water and hygiene practices.

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427,000 people supported

HEALTH

Good health is a fundamental right for all and a lack of access to affordable healthcare can have a detrimental impact on individuals and their families. In many of the countries we work in, the lack of a social security net and free access to healthcare means that families must choose between healthcare, food and employment.

Our health programmes support and build on existing infrastructure, addressing gaps within health services and systems. Our donors support a range of interventions worldwide, from individualfocused projects such as cataract eye camps, to community-based interventions such as malaria prevention programmes, to running clinics and basic health units like our Motherkind clinics.

SDG 3 Ensure healthy lives and promote well-being for all ages.

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One of our aims at Muslim Hands is to help reduce the global maternal mortality ratio and end preventable deaths of new-borns and children. To this end, our supporters are funding mother-and-child health centres in Afghanistan and Somalia, known as Motherkind clinics.

These local clinics provide comprehensive pre-natal and post-natal care; they train midwives, provide safe delivery, run vaccination programmes, supply medicines and vitamins and raise awareness through sessions on nutrition and hygiene. Our Afghanistan clinic alone assists around 360,000 people each year.

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NEONATAL HEALTH PROJECT IN PALESTINE

One of our key projects is the neonatal health project in Gaza (Palestine). A study conducted by UNRWA in 2016 revealed that the infant mortality rate in Gaza was 21.3 per 1000 live births, with neonatal mortality of 14 per 1000 live births. This problem is further exacerbated by the continuous and critical shortages of medicines and supplies in Gaza’s hospitals. Through our partners, we ran workshops for over 200 staff at neonatal units, training them on neonatal life support, the safe retrieval system, infection control measures and procedures and prevention of retinopathy of prematurity. In addition to this, six neonatal units at Gaza’s hospitals were supplied with lifesaving drugs, essential equipment and infection control supplies. This project provided a lifeline to the struggling neonatal health service within Palestine.

CATARACT EYE SURGERIES

It is estimated that 3 in 4 people who suffer from blindness could avoid going blind if affordable healthcare were easily accessible. Thus, millions of people are needlessly left without sight because they are unable to access simple surgery or treatment. For many of the communities that we work with, blindness means that they are unable to work, look after family members or play a role within their society. Muslim Hands runs cataract eye camps for vulnerable patients, providing them with a life-transforming surgery to safeguard their sight. This year, our donors have provided 11,600 individuals with this vital eye surgery.

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983,000 people fed

FOOD

Food insecurity is a global issue that affects 820 million people worldwide. Through providing nourishment, creating livelihoods and bringing communities together, food is central to an individual’s well-being. However, the changing climate, deep-rooted and long-running conflicts and economic instability are now making hunger even more widespread.

We work to tackle hunger in some of the world’s poorest countries. Our projects include providing both long-term, sustainable food solutions for communities (such as cattle rearing) and offering shortterm, lifesaving food parcels in response to emergencies.

SDG 2 End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Moreover, our Ramadan and Qurbani programmes ensure access to safe, nutritious food on a seasonal basis.

RAMADAN FEEDING PROGRAMME

This year, our annual Ramadan project reached more than 78,000 people, providing them with food parcels across 22 countries globally. Our iftar programme consists of three major interventions: family food parcels, cooked meals and community iftars which occur throughout the holy month.

In total, our supporters provided 2.3 million meals this Ramadan.

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SACRIFICE FOR THE SUFFERING
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QURBANI

Qurbani is a seasonal project and, this year, our teams distributed meat to 393,000 individuals across 25 locations. For many people around the world, Qurbani is their only opportunity to enjoy meat in the whole year. Muslim Hands ensures that the meat that is distributed is fresh, nutritious and provided during the days of Eid.

QURBANI CASE STUDY

This year, many Qurbani farmers have been financially impacted by coronavirus. Our team in Senegal interviewed a farmer to find out how coronavirus has affected his cattle-rearing business.

Abdul Rahman Toure is 60 years old and has been raising animals since 1981. He inherited it from his father, and his greatgrandfather also reared cattle. He was born into this family business. He didn’t go to school - cattle-rearing is his passion. On average, he sells around four to five animals per month, with most of his customers being butchers who buy cattle and sell the meat in the local markets. During Qurbani season, he sells around 80 animals – more than he sells in the other eleven months of the year. Qurbani is thus essential for Abdul Rahman to support the fourteen people that he provides for - not just his nine children, but his daughters-

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in-law and his grandchildren as well. The money he makes is used to buy them food, clothes and medicine and to pay school fees for the children.

This year has been one of the most stressful years for cattle owners like Abdul Rahman. Coronavirus has had a huge impact on him financially, and sometimes he sells one bull in the whole month. Restaurant owners who used to buy bulls from him are no longer operating, as their restaurants have closed; meanwhile his customers outside Senegal can’t buy from him, because the borders have been closed. Due to this, his income has dropped since the pandemic began and it is now much harder to provide food for his family. He can’t even afford to buy sanitiser and face masks for them.

Qurbani season is the most important time for farmers like Abdul Rahman. If Muslim Hands did not buy Qurbani animals from him, he wouldn’t be able to feed his family – or even take care of his cattle by purchasing food and medicine. Many of his animals would die.

This case study shows how our seasonal Qurbani programme not only benefits the recipients of meat, but also the wider community and local economy including cattle owners like Abdul Rahman.

LIVELIHOODS

Our livelihoods projects cater to the specific needs of the communities that we work with and can range from providing small businesses to ensuring families have access to sustainable sources of income, to the distribution of crops and equipment to farming families. We believe it is necessary to empower people to help themselves. Our supporters have provided livelihoods to over 4,000 individuals this year.

Small Businesses

We offer small loans for business ventures as well as business training to families, so they can run their businesses efficiently. With a secure income, they can afford to not only feed their families but also send their children to school, giving them a way out of poverty.

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FARMING

Our teams continue to provide livestock rearing and farming tools across many countries where communities rely on agriculture as a means of survival. With our help, rural families are growing their incomes while also protecting their local environment for generations to come. Through supplying people with the tools and practical skills to become self-supporting, our donors are reducing poverty, helping farmers to grow and sell more crops and giving them access to training and resources so they can set up their own cattle rearing. From Malawi to Sri Lanka, we have distributed farming equipment and provided goats, chickens and cows to help families become selfsufficient.

LIVELIHOODS CASE STUDY

Habib Hussein runs a series of beauty salons in Kachere, Malawi. A hard-working mother, she has attracted lots of customers within a short period and with the savings that she makes from her business, she now manages to pay her hospital bills. Habib’s health has been a challenge and if it were not for Muslim Hands’ livelihoods programme, she may not have made it through the year. This programme has enabled her to look after her children and cover her hospital expenses, empowering her and her family to work their way out of poverty.

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ENVIRONMENT

OLIVE TREES

Our olive tree scheme is one of the most popular projects amongst our donorbase and Muslim Hands have been distributing seeds and training local farmers for twenty years. This enables families to improve their livelihoods and increase their income. Our olive tree plantation in Palestine supports 300 families by providing them with 28 saplings each to help grow their olive trees, which they are then able to sell on. The olive trees become a pivotal part of these farmers’ income, which in turn helps their families to become self-sufficient.

FRUIT TREES

In Mirpur, Pakistan, Muslim Hands planted 13,000 fruit trees across nine regions. This project aimed to help farmers who previously only had picking rights, own their fruit trees and provide them with an income through selling surplus fruit. In some instances, fruit trees were planted in neighbourhoods for local communities to use, as well as giving a sustainable income to farmers who sell the fruits to local markets.

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UK PROGRAMMES

Poverty in the UK is increasing and there is a vital need for us all to do more to tackle the problem. Currently, there are 280,000 people regarded as homeless in England and an estimated 8.4 million people in the UK are living in food poverty, with BAME, disabled and older people being the worst affected. Civil society organisations play a crucial role in this service gap, assisting local governments in new and better approaches when addressing food poverty and other societal issues.

Thanks to the support of our donors, Muslim Hands has been able to intervene on key issues and support local community activities in partnership with local authorities and other NGO’s, strengthening trust and commitment so that we can work together flexibly for the benefit of our communities.

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OPEN KITCHENS

100,000 meals

The Open Kitchen in London provides an honest and transparent service and is open to anyone who needs to access free, hot meals in a safe, welcoming environment. Our Open Kitchen recently celebrated its second anniversary and continues to support the community of Hounslow in London, despite the isolation that has been brought about by the pandemic. We have introduced a home delivery service as well as outside distribution points for people to continue to access food and advice. Since its launch, over 100,000 nutritious meals have been distributed to low-income families, the elderly, refugees and rough sleepers.

COVID-19 TEMPORARY OPEN KITCHENS

Muslim Hands expanded its flagship project, the Open Kitchen, across the UK during COVID-19 to help community groups support vulnerable people living in poverty. During the first lockdown, our donors provided 12,000 meals across six cities in the UK, including Birmingham, Bradford, Edinburgh, Glasgow, Manchester and Stoke-On-Trent. We partnered with local community centres and religious institutes in order to run these temporary Open Kitchens.

During the second lockdown, our donors provided a further 13,000 meals across London, Nottingham, Glasgow, Manchester and Stoke-On-Trent. These temporary Open Kitchens gave nutritious food and hot meals to vulnerable people in the local areas.

OPEN KITCHEN CASE STUDY

Rico is one of the thousands who are living on the streets in Hounslow and who has been benefiting from the Open Kitchen. After losing his job in catering, where he had worked for over a decade, and with no income, home or family, Rico ended up begging for money and food just to get by. Two years after losing his job, he had hoped that he would find another role and get back on his feet, but this proved to be much more difficult than he imagined.

Winters are incredibly difficult for rough sleepers in London and finding shelter and food is a priority. The Open Kitchen not only addresses the concerns of food poverty, it also transforms the way that people access support, creating a safe, welcoming space that is always open to those who need it. Rico hopes that with The Open Kitchen, he will have the help he needs to get back on his feet. ‘The Open Kitchen will benefit not only me but so many homeless people in London. To have somewhere where we can get two meals a day and sit down in a comfortable setting like everyone else will change our lives’.

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FARESHARE PARTNERSHIP

MIGHTY MEALS

1 MILLION MEALS

In response to the pandemic, FareShare Midlands and Muslim Hands formed a partnership to collaboratively fight food poverty and food waste across the Midlands. Surplus food equivalent to over 1 million meals has been redistributed across to frontline charity organisations across the region. The scheme provides all the essentials that families need to make nutritious meals and it was created with the vision that no food should be wasted, and no person should go hungry.

Every day, we redistribute enough food for around 10,000 meals. The food is redistributed from FareShare Midlands’ new depot and we target refugees, lowincome families and those who have been forced into hardship because of the pandemic. The new depot has provided an opportunity to reach more communities and groups in the area and allowed FareShare to extend its School Holiday Provision in the summer of 2020, reaching 3,485 students per week and 36 Community

Food Members (CFMs) with food for local children.

This partnership has provided support for people living in the most financially deprived areas of Nottingham, as well as being a vital lifeline for newly vulnerable families experiencing loss of income because of unemployment.

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YMWA

The Young Muslim Writers Awards is a project which serves to increase literacy and creative writing amongst children within the BAME community in the United Kingdom. The writing competition allows children from Muslim communities to explore avenues of expressing themselves creatively, whilst enhancing their writing and reading skills. 2020 welcomed the 10th anniversary of YMWA, which featured inspiring speeches from judges and partners, as well as readings from the winners. During a feedback survey following the competition, 80% of respondents said being shortlisted in the Young Muslim Writers Awards made them more confident to share their writing with other people and in other competitions.

YMWA OUTREACH PROGRAMME

At the beginning of 2020, the decision was made to deliver online workshops and training across the country. Over the course of the

year, nine events were delivered, including short story, screenplay, poetry and journalism workshops. These workshops targeted children through their schools as well as partnerships with libraries and other extracurricular institutes.

Muslim Hands Capacity Building and Learning At Muslim Hands, we realise that the work that we are doing can only be achieved through strong implementing partners. Using our experience and knowledge of the sector, we work alongside these partners to build physical and skills capacity. Over the last year, we have invested heavily in the introduction of a Muslim Hands Project Management Toolkit as well as improvements to the learning and training platforms that we use. All of this is to ensure that the work which our partners implement is of high quality and meets the requirements of the communities that we are assisting.

Africa Conference

In November 2020, Muslim Hands conducted a region-wide Africa conference using the online platform Zoom, which lasted for three days. This conference was established to allow our partners and implementing offices to share ideas and knowledge on various topics. It provided an opportunity to meet our partners within Africa and exchange discourse regarding future strategies and plans, as well as review the learning from past projects and initiatives. This was achieved through a series of workshops hosted by the UK Programmes Team, as well as ‘learning forum’ presentations hosted by each partner on various development subjects.

Project Management Toolkit

In 2020, we introduced the Project Management Toolkit (PMT) to ensure there was an adequate process and structure for projects at Muslim Hands. The toolkit ensures that all Muslim Hands programmes follow the correct procedures by providing our partners with tools and templates for the effective implementation and management of Muslim Hands projects. Alongside the toolkit, we have also started a process of external training to ensure that the staff implementing Muslim Hands’ programmes are sufficiently trained within the PMDPro and FMDPro certification. Over 62 partner staff have now successfully enrolled in these programmes.

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Due to the nature of the work that we do, ensuring that risks in our projects are sufficiently managed is of utmost priority. The introduction of risk assessment and risk mitigation reports provides Muslim Hands with the knowledge to understand the risk associated with both the partner and Muslim Hands, while ensuring that mitigation plans are followed through. This not only safeguards the organisations that are involved, but also ensures that the projects are implemented effectively and there are no negative impacts on the community and the individuals that we are supporting.

RISK MITIGATION REPORTS

The Muslim Hands Programme Quality Framework (PQF) ensures that our programmes are designed and implemented to take into account key programme quality aspects. We have taken learnings from international good practice notes and other frameworks, and our PQF consists of five pillars: Experience, Learning, Accountability, Capacity and Resources, and Monitoring. These aspects contribute to making sure our programmes are high in quality and that we are supporting communities effectively.

PROGRAMME QUALITY FRAMEWORK

In 2020, Muslim Hands focused on expanding our portfolio of partnerships with major institutions and donors. Despite COVID-19, we continued to build new partnerships and strengthen existing ones. We have been able to establish partnerships with large donors such as UN institutions, allowing us to improve the quality of our programmes, adopt higher standards and reach some of the most vulnerable communities around the world in an impactful way.

Partnerships

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PAKISTAN

At the beginning of the year, we established a project partnership agreement with the European Commission on Humanitarian Aid and Civil Protection (ECHO) and secured funding to reach out to people affected by the severe cold weather in Ziarat, Baluchistan.

Through this intervention, we were able to reach out to 295 households by distributing Cash for Food and Cash for Work, as well as rehabilitating shelters which were damaged due to heavy rains and snowfall. We also rehabilitated water facilities and drinking water supply schemes and supplied hospitals with PPE kits to help respond to COVID-19.

In total, we were able to reach 10,000 individuals, including local communities and government stakeholders.

In Pakistan, we also managed to build partnerships at the local level with UNOCHA, UNICEF, the British Council and other institutions for the provision of Education, WASH, Food Security and livelihood interventions in different parts of the country.

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AFGHANISTAN

Muslim Hands were able to submit a proposal to UNICEF for the ‘Education Cannot Wait’ and ‘Global Partnership for Education’, which were

successfully shortlisted. This project will be carried out in 2021. In addition to securing funds, we aim to share knowledge and experience with the wider NGO community, by attending various online webinars and events organised by think tanks and donor groups.

TURKEY

In Turkey, we successfully established partnerships with several organisations, including Doctors Worldwide, Hayrat Aid and Diyanet Foundation.

Through Diyanet Foundation, we

implemented WASH projects in Pakistan, Sri Lanka and Mali. Also, we implemented food distribution projects worth more than £1.3 million, reaching more individuals than ever before.

Our partnership with Hayrat Aid provided support to our WASH projects and food distribution projects in Mali, Gambia and Pakistan.

Finally, Doctors Worldwide initiated WASH projects and eye camps across Pakistan, Mali and Niger. From this, 2,820 surgeries were successfully carried out and we managed to reach more than 8,000 beneficiaries across all countries.

Palestine

Meetings were held with representatives of the United Nations Relief and Works Agency for Palestine refugees (UNWRA). Through this partnership, Muslim Hands will be supporting the Palestinian communities through primary and vocational education projects, health care and emergency response activities.

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FUNDRAISING

At Muslim Hands, we raise funds from the public by mobilising our teams to engage in organising charitable collections, events, challenges and direct marketing. In 2020, we did not engage any Professional Fundraisers to solicit from the public. Muslim Hands continued its membership with the Fundraising Regulator, complying with its guidelines through the training and development of all fundraisers.

To protect vulnerable people in the course of fundraising, we take appropriate measures which include screening contact details against the TPS, using our own ‘do not contact’ list, allowing all individuals the opportunity to opt out of communications and limiting the number of direct marketing communications to an average of two per quarter. Furthermore, communication is often limited to recent donors of a similar campaign. In addition to this, under GDPR where a supporter opts out of receiving communication from Muslim Hands, the request is actioned within 48 hours. Within the year, there were no complaints received in the course of fundraising.

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Financial Review

This year, Muslim Hands raised £32.4m – the sum of £23.5m was donated for non-emergencies, £4.8m for emergencies and £4.1m coming from Gift Aid. The total income received in 2020 was up from the level of income raised in the previous year (£22.7m).

2020
2019
2018
Donations from Supporters
£m
£m
£m
Donations for Non-Emergencies
23.5
16.7
15.4
Donations for Emergencies
4.8
3.3
3.1
Gift Aid
4.1
2.7
2.6
Total Income
32.4
22.7
21.1

The charity invested £2.8m to generate £28.3m. The net return was £25.5m The charity invested 10% to generate a return of 90%. The charity aims for an investment target of 10% in the current year. This is further broken down into 1/2 unrestricted / restricted ratio respectively.

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Financial Review

During the year, Muslim Hands spent over £27.6m. This helped us reach a larger number of beneficiaries particularly in areas affected by conflict or natural disasters. The funds used included appeal funds raised in prior years.

2020
2019
2018
£m
£m
£m
Cost of generating funds
2.9
2.6
2.5
Charitable Activities
21.4
16.2
18.5
Where Most Needed
2.9
1.3
1.3
Orphans
2.1
1.4
2.6
Education
3.3
3.1
3.3
Health
1.3
0.9
0.8
Emergency
2.6
3.3
2.9
WASH
4.8
2.2
2.2
Food
3.4
2.4
2.1
Masjids
1.0
1.5
0.9
Support Costs and Staff
3.3
2.8
2.9
Total Resources Expended
27.6
21.6
21.3		 2020
2019
2018
£m
£m
£m
Cost of generating funds
2.9
2.6
2.5
Charitable Activities
21.4
16.2
18.5
Where Most Needed
2.9
1.3
1.3
Orphans
2.1
1.4
2.6
Education
3.3
3.1
3.3
Health
1.3
0.9
0.8
Emergency
2.6
3.3
2.9
WASH
4.8
2.2
2.2
Food
3.4
2.4
2.1
Masjids
1.0
1.5
0.9
Support Costs and Staff
3.3
2.8
2.9
Total Resources Expended
27.6
21.6
21.3		 2020
2019
2018
£m
£m
£m
Cost of generating funds
2.9
2.6
2.5
Charitable Activities
21.4
16.2
18.5
Where Most Needed
2.9
1.3
1.3
Orphans
2.1
1.4
2.6
Education
3.3
3.1
3.3
Health
1.3
0.9
0.8
Emergency
2.6
3.3
2.9
WASH
4.8
2.2
2.2
Food
3.4
2.4
2.1
Masjids
1.0
1.5
0.9
Support Costs and Staff
3.3
2.8
2.9
Total Resources Expended
27.6
21.6
21.3
£m £m
Cost of generating funds
Charitable Activities
Where Most Needed
Orphans
Education
Health
Emergency
WASH
Food
Masjids
Support Costs and Staff		 2.9
21.4
2.9
2.1
3.3
1.3
2.6
4.8
3.4
1.0
3.3		 2.6
16.2
1.3
1.4
3.1
0.9
3.3
2.2
2.4
1.5
2.8

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Expenditure

The management of the charity is undertaken responsibly to safeguard and protect the funds the charity is entrusted with from loss, corruption, fraud and the charity has invested in the strength of its systems, offices and people. Therefore, £3.3m was invested in the organisation allowing the charity to effectively use the funds and operate with accountability.

In 2020, the charitable activities expended were £27.7m.

During programmes’ implementation, there are a number of factors which can impact the project achievement targets, including donors’ commitments, availability of funding, socio-economic conditions of the donors or target beneficiaries, interventions by the respective government institutions, UN Agencies and the coverage of other humanitarian actors focusing on the same pool of target beneficiaries.

Muslim Hands is always committed to the poor and marginalised and vulnerable segments of society irrespective of race, religion and gender. Most of our implementation is ongoing so if targets are not met, we continue to work with the same communities the following year. Our partnerships, networking, policy level advocacy and lobbying components of the programme also support the target beneficiaries.

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Principal Sources of Funding

The principal source of funding is from individual donors from within the UK who respond to appeals via mail, email, website or other forms of fundraising through the radio or television.

Reserves

From its inception, Muslim Hands has raised funds for specific projects (restricted funds) and funds which are not specified for a particular project (unrestricted funds) which would be utilised where most needed and applied at the discretion of the trustees to further the charity’s purposes.

Over recent years, Muslim Hands voluntary income has seen steady growth. A significant proportion of this income is restricted funds for specific projects the majority of which is short-term aid responding to the basic needs (including food, water, clothing, shelter and basic education) of beneficiaries in areas blighted by conflict and areas that have suffered natural disasters.

Given the charity’s present level and nature of activities the unrestricted funds not committed or invested in tangible and intangible fixed assets (“the free reserves”) charity should not be less than £600,000.

The current reserves held by the charity is £1,400,000. At this level the Trustees feel that they would be able to continue the current activities of the charity in the event of a significant drop in funding. Muslim Hands have addressed the shortfall in this through new budgets and systems to limit variances.

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Reserves

Muslim Hands depends on unrestricted funds to fund its long-term developmental programmes particularly in regions which have not received media coverage in recent months and years which has led to increased demand on unrestricted funds. In light of this and the donor giving patterns of recent years Muslim Hands has continued with its plan initiated to:

1. Increase capacity to work in emergency zones;

2. Simultaneously consolidate the geographical and thematic spread of long-term projects and projects offices;

3. Developing closer working relationships with grass root organisations in countries where we carry out projects;

4. Diversifying the donor base

These measures will bring further efficiencies and savings but still allow MH to increase the reach to beneficiaries, and they will also be instrumental to the success of the strategy.

The reserves position at present offers the Trustees assurance that the Charity is able to continue its current activities. The Charity needs to continue to be able to respond quickly to appeals for the relief of suffering in varied communities around the world.

The Charity is presently achieving this aim and further aims to increase its unrestricted reserves position year on year.

Nature of Funds

The Trustees confirm that, on a fund-by-fund basis, the assets are available and are adequate to fulfil the obligations of the Charity.

During this period, the Charity awarded grants totalling £21,851,980 (2019: £16,224,649). The Charity’s policy is to make gifts of this nature to individuals and organisations which further the objectives of the Charity. The majority of the grants are to other Muslim Hands entities in various countries around the world who implement projects on behalf of the Charity thereby assisting the Charity in fulfilling its objectives.

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Grant Making Policy

Muslim Hands invites proposals from existing partners. The applications received are scrutinised to ensure they meet MH criteria with respect to its objectives and monitorable results.

Programmes monitoring and evaluation is carried out by MH staff to ensure adherence to MH objectives, programmes quality and financial sustainability. The Trustees further obtain assurance by making visits to the programmes. The partners provide quarterly narrative and financial reports with explanations for variances.

Investment Policy Surplus funds are usually kept in an Al Rayyan Deposit Account to ensure the best return for the Charity.

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Going Concern

MH continnued to scenario plan its cashflow and the variation in impact of increased and reduced cash scenarios. The Charity increased its rolling cashflow projections from 12 months to 24 months to better understand the going concern status of the Charity. The scenario planning showed that the Charity will continue and the surge in funds in 2021 supports this projection. It further allowed the Charity to consider the impact of a shortage in funding and the potential mitigators that would be required. With the success of fundraising this year, the Charity is confident of its continuation as a going concern is confident of its continuation as a going concern.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Muslim Hands was legally established as an international NGO in 1993 by a trust deed and registered with the Charity Commission under registration number 1029742 on 6th December 1993. In 2004, Muslim Hands changed its structure, registering as a company limited by guarantee at Companies House in England on 22nd March 2004 and with the Charity Commission on 22nd July 2004 under registration number 1105056. The funds in the original trust were transferred to the newly incorporated company and thereafter the original trust was de-registered on 8th November 2006. Muslim Hands has been operating under the company structure to this day.

As the Charity is constituted as a company limited by guarantee it is therefore governed by a memorandum and articles of association. Eligibility for membership of the Charity and membership of the Board of Trustees is governed by the memorandum and articles of association. Currently, all of the Members of the Charity also serve as directors of the company who are the Trustees of the Charity. The Charity is not a member of a wider network or umbrella group save for being the founding entity for other legal entities established in other jurisdictions and who operate under the name and logo of Muslim Hands.

The Trustees of the Charity are legally responsible for the Charity and set the strategic direction, with operational matters delegated to a Senior Management Team including the CEO. The Senior Management Team are supported by dedicated staff. The current Senior Management Team comprises of Syed Lakhte Hassanain as CEO with Shahid Bashir as Deputy CEO, Tariq Nasir, Shakil Sidat, Yasrab Shah, Munawar Patel, Irfan Khan, Raja Arslan Nusrat and Syed Ali Haider as Executive Directors. The Trustees set the salaries for the CEO and the Senior Management Team’s salaries are set by the CEO. The salaries are benchmarked according to similar roles in the sector based on research conducted internally, furthermore they are adjusted according to the prevailing rate of inflation at the time.

In order to ensure its effectiveness, the Board recruited two additional trustees with professional and diverse skills. The process of recruiting Trustees involves determining the optimum skills, knowledge and experience mix for the current operational climate and needs, identifying potential Trustees, promoting and explaining the activities of the Board to potential Trustees and the decision to appoint new Trustees is then taken by the Board of Trustees. The induction of new Trustees would include an explanation of the function of the Board of Trustees and appointing a mentor for the new board member. An overview of the organisation and its activities is also provided. The Board has commenced a process of giving short training sessions for Trustees at their meetings.

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Along with Programmes Committee which was established by the Trustees for better control and Governance, two additional committees have been launched as subcommittees of the Board to provide assurance to the Board that Muslim Hands has effective and appropriate systems that will ensure the delivery of the strategic aims. The Fundraising Committee will provide expert insight and assurance to the Board that Muslim Hands has an effective Fundraising Strategy in place with appropriate risk management. The Audit Committee will review the audited financial statements of Muslim Hands and recommend them to the Board and review the Muslim Hands risk register and reports on internal controls and its compliance. Each committee is formed with two external members and one MHUK Trustee who is also the committee chair. Muslim Hands has been dependent on volunteer support in order to fulfil its objectives, vision, mission and to carry out its activities. The Trustees would like to thank all those who have volunteered their time to Muslim Hands.

Muslim Hands has been dependant on volunteer support in order to fulfil the objectives, vision, mission and to carry out its activities. The Trustees would like to thank all those who have volunteered their time to Muslim Hands.

Objectives, Vision, Mission

MUSLIM HANDS’ OBJECTIVES ARE:

The relief of poverty and sickness anywhere in the world, and in particular amongst those affected by natural disasters or by wars and other conflicts, by the provision of financial or other assistance including medicines, hospitals, shelter and food;

To advance education amongst those in need anywhere in the world, with particular regard to orphans; and

The advancement of Islamic faith through education and the promotion of interreligious harmony through dialogue and cooperation with other faiths and traditions.

The fulfilment of the above objectives is enshrined in our mission statement

‘To be at the forefront in delivering relief from poverty, sickness and the provision of education worldwide. To provide an ethical service for the collection and distribution of funds in an effective, efficient, transparent and wholly accountable manne’.

Our vision is:

‘Inspired by the values of our faith, Muslim Hands is working towards tackling the root causes of poverty and creating a fairer world for everyone. We believe that every human being has the right to an education, access to clean water and food and the means to support themselves, their family and their community’.

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Public Benefit Statement

All our charitable activities focus on furthering our charitable objectives for the public benefit. The section of this report above entitled ‘Aims, objectives’ sets out the aims and charitable objectives of the Charity.

The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set, The Trustees have concluded that:

PRINCIPAL RISKS AND UNCERTAINTIES

The trustees have during the year considered the material risks facing the charity and have put in place mitigating controls to address those risks.

The continuing success of the charity is dependent on continuing to receive sufficient support and donations from the community. Trustees mitigate this risk by ensuring that income and expenditure are closely monitored and reviewed. Trustees identified the impact of Covid-19 on the risks faced by the charity and the need to align risk management to mitigate the threats the virus posed to the operations of the charity. The risk management actions below have embedded actions to limit the impact of Covid-19 related risks.

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Principal Risks and Uncertainties

During 2020, the Trustees identified the following key risk and the measures taken to address the key identified risks:

Risk Management Actions
Programmes not delivered - Due Diligence Framework
as expected by MH standards - Staff member trained to do due diligence checks
- Director of Governance signs off of all Due Diligence checks
-Board sign off of any Due Diligence checks escalated
by Director of Governance
- Monthly Review meetings reassess Partner RAG ratings.
Partners may be put ‘on hold’
- Legal counsel and Programme Finance team review
and approve the funding agreements
- Muslim Hands Policies are shared with Partners
- Education and training of partners regarding importance/
expectations.
Violation or abuse of - Muslim Hands Safeguarding policies for:
benefciaries and safeguarding children and for vulnerable adults, Safeguarding Code of Conduct
- Muslim Hands are part of ‘Keep Children Safe Network’,
provider of online training facilities.
- Partner offce staff complete ‘Keep Children Safe Network’ training
- Muslim Hands Whistleblowing policy in place
- Programme Quality Framework includes a complaint programme
which involves interviews with benefciaries
- Programme Quality Framework includes safeguarding spot checks
- Reporting of Safeguarding issues to Management and Board
Cashfow to meet charitable - Board oversight of spending in advance
and operational commitments of approval of fundraising budget and targets
- Board oversight of performance and likely year end position
- Reporting of scenarios and the impact on cash fow
- Periodic review of Financial Sustainability
Loss/ theft of data including - GDPR policies including Data Breach Action Plan, data breach form in place.
non-compliance with data
protection regulation		 - Monitoring GDPR compliance
- Outsourced DPO service by Bulletproof Ltd
- Monitoring of IT controls
- Encryption-in-transit protects both systems and data
- Procedures for penetration testing and system security checks
Strategic Alignment - Project Toolkit checklist
of Programmes - Partner offce carries out a Project Needs and Benefciary Selection
Assessment
- Scoring requirement inbuilt into Projects System
- Programmes Director reports quarterly to the Programmes Committee
on progress with implementation of the corporate strategy

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Internal Audit and Risk Assurance

The MH Board of Trustees is advised by an Audit Committee made up of Trustees and independent members who bring a broad range of expertise in this area. The Audit Committee meets at least four times a year and its terms of reference includes scrutiny and oversight of the way MH is managing risk. An independent Internal Audit function reports to the Audit Committee. The internal audit is provided by BDO LLP. They support with the risk register and carry out a riskbased audit programme, which follows an audit plan approved by the Audit Committee. The Senior Management Team regularly undertakes strategic and operational reviews to identify organisational risks and come up with plans to mitigate them. The team is then responsible for implementing those action plans, with the Audit Committee monitoring progress.

PLANS FOR THE FUTURE

Income Diversification

Muslim Hands has continued to grow steadily since its inception, reaching an increasing number of vulnerable and suffering communities year after year. To continue the mission of aiding more people as effectively and efficiently as possible, Muslim Hands will be focusing on organisational restructuring and internal development, placing stronger emphasis on forming partnerships with grassroots level delivery partners overseas and at home and increasing our income from trusts and institutional funders. Muslim Hands’ skill and experience in establishing and running educational projects is a long-standing and recognised strength, and it will be the primary area of focus going forward. Muslim Hands will be focusing building on these strengths and gaining sector-wide recognition and funding for its work.

Inhouse Systems

Muslim Hands is currently completing the first phase of the development of its webbased CRM system. The new versions of the financial management and programmes systems are work in progress and will add to the level of data processing and reporting of impact on its activities, encouraging better collaboration and increased learning and oversight with our partners.

New Strategy

Muslim Hands has launched its new five-year strategy following the success of its previous strategy. The strategy focuses on continuing the success story of Muslim Hands as it embarks on its next phase of growth in serving the poor and destitute. The strategy aims to strongly align MH activities with elements of the UN Sustainable Development Goals focusing on the alleviation of hunger, improving the health of the most needy, providing quality education, and clean water. The strategy leads Muslim Hands on it journey in strengthening processes and accountability for continued oversight of the work delivered on the ground and to further increase sustainability of its programme.

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UK Programmes

Muslim Hands is planning to expand its UK Open Kitchen Programme to more towns and cities across the UK over the next three years. The interest that it has generated from supporters and the impact that it has had on the local public has demonstrated the value that this programme adds to the community that it serves. The positive outcome of this programme has provided the Charity with the confidence that it can have a positive impact in other localities.

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Statement of Trustees’ Responsibilities

The Trustees (who are also directors of Muslim Hands for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards FRS 102.

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees, individually, are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company›s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ annual report which includes the strategic report has been approved by the Trustees on 29/09/2021 and signed on their behalf by

SL Hassanain. Trustee

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Independent Auditor’s Report

Opinion

We have audited the financial statements of Muslim Hands (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 Muslim Hands’ 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.

In our opinion, the financial statements:

• Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 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

Basis for opinion

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

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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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’ annual report, including the strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The trustees’ annual report, including the strategic 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report including the strategic 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

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation

of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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 are set out below.

Capability of the audit in detecting irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: • We enquired of management, which

59

included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:

• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

• We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.

• We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

• In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

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

Jonathan Orchard (Senior statutory auditor)

Date 29 September 2021

for and on behalf of

Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Because of the inherent limitations of an audit, there is a risk that we will not detect all

60

Financial Statements

Muslim Hands

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

For theyear ended 31 December 2020
Note
Income from:
3
3
4
12
Reconciliation of funds:
Grants payable and operational
Total income
Expenditure on:
Raising funds
Net income / (expenditure) for the year
Total expenditure
Net income / (expenditure) before net gains /
(losses) on investments
Charitable activities
Donations
Bank Interest
Total funds brought forward
Net gains / (losses) on investments
Total funds carried forward
Transfers between funds
Net income / (expenditure) before other
Gains / (losses) on revaluation of fixed assets
Actuarial gains / (losses) on defined benefit
Other gains / (losses)
Net movement in funds		 Unrestricted

£
11,995,658
34,389		 Restricted
£
20,428,713
-		 2020
Total
£
32,424,371
34,389		 Unrestricted
£
7,805,589
37,808		 Restricted
£
14,928,824
-		 2019
Total
£
22,734,413
37,808
12,030,047 20,428,713 32,458,760 7,843,397 14,928,824 22,772,221
2,996,745
3,232,419		 -
21,424,399		 2,996,745
24,656,818		 2,575,215
3,029,242		 -
15,965,553		 2,575,215
18,994,795
6,229,164 21,424,399 27,653,563 5,604,457 15,965,553 21,570,010
-
5,800,883		 -
(995,686)		 -
4,805,197		 -
2,238,940		 -
(1,036,729)		 -
1,202,211
5,800,883
(4,605,282)		 (995,686)
4,605,282		 4,805,197
-		 2,238,940
(1,399,848)		 (1,036,729)
1,399,848		 1,202,211
-
1,195,601
-
-
-		 3,609,596
-
-
-		 4,805,197
-
-
-		 839,092
-
-
-		 363,119
-
-
-		 1,202,211
-
-
-
1,195,601
4,120,334		 3,609,596
7,782,691		 4,805,197
11,903,025		 839,092
3,281,242		 363,119
7,419,572		 1,202,211
10,700,814
5,315,935 11,392,287 16,708,222 4,120,334 7,782,691 11,903,025

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

32

61

Financial Statements

Muslim Hands

27th September 2021

62

Financial Statements Staterneni of cash IIryw5 For rhe ear ended 51 December 2020 Nofe 2020 2019 cash flovts from 0￿ratIng ac[1￿11@S Nei cash prcNided by i (used operatlng actiwtles 6.318.424 I,SS4.868 Cash flow5 frfffii Investlng actI￿tIes." Purchase of fixed assets NÈI Gash pr(￿Ided by i (used In) In￿5￿n9 acu￿1105 Cash now5 frfffii ftnancln9 act1￿1￿5." Repayments of borrowillg 135,3981 134,2531 Nei cash pr(￿Ided by i (used flnandng aCUVftles {35,398) 134,2531 Change In tash and tash *qulvalents In the year 6.249.305 1,448.445 Cash amd ia5h equivalents ai the twinnlng of the year 10,509.568 9,061,123 Cash and cash equ1v￿ents at the end of the year 16,758.873 10,509.568

Financial Statements Musllm Hands Notes to the flnanclal statements l Accountlng pollclts a) Statutory Informatlon Muslim Hands is a charitable company limited by guarantee and is incorporated in the Llnited Kingdom. The registered office address is 148 - 164 Gregory Boulevard, Nottingham. NG7 SJE. b) Basls of preparatlon The financial staiements have been prepared In accordance wlth Accountlng and Reporting by Charlties-. Statement of Recommended Practice applicable ro charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- Icharities SORP FRS 1021. the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. Assets and Ilabllitles are inltlally recognlsed at hlstorlcal cost or transactlon value unless otherwise stated In the relevant accountlng pollcy or note. cl Publlc b•n•flt •ntlty The charitable company meets the definitlon of a public beneflt entity under FRS 102. d) Golng conc*rn The tru5rees consider that there are no material uncertainties aboui the charitable company'5 ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date ihat have a significant risk of causing a material adjustment to rhe carrying amounts of assets and liabilities wirhin ihe next reporting period. e) Income Income is recognised when the charlty has entitlement to the funds. any performance conditions attached io the Income have been mei. it is probable that the income will be recelved and ihat the amount can be measured reliably. D Donatlons of glfts. 5ervlces and facllltles Donated professional seNices and donated facllitles are recognised as Income when the charity has conirol over the iiem or received the service. any conditions associated with the donarion have been met. the receipt of economic benefit from the use by the charity of rhe item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 1021. volunieer time is not recognised so refer to the trustees. annual report for more information about their conrriburion. On recelpt. donated gifts. professlonal servtces and donated facllltles are recognlsed on the basls of the value of the glft to the charity whlch Is the amount the charity would have been wllling to pay to obtaln servlces or faclllties of equlvaleni economlc beneflt on the open market.. a correspondlng amount Is then recognlsed In expendlture In the perlod of recelpt. g) Interest reolvable Interest on fund5 held orb deposit Is Included when receivable and the amount can be measured reliably by the charlty., th15 Is normally upon notification of the interest paid or payable by the bank. h) Fund a¢¢ountln9 Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meet5 these criteria is charged io the fund. Unrestricted funds are donations and other income received or qenerated for the charitable purposes. Desionaied funds are unrestricted funds earmarked by the trustees for particular purposes.

Financial Statements Fwt ar •n￿￿ 31 Dacomblr 2020 I fvAcwNJng polill5 Icothr•J•dJ O aid irr•u+•rabl• VAT E¥p2ThSture Is recognised once there 15 1 le9al or con5trLKt￿eob1l9IrbJn to pa￿￿10 athird party. It 15 that sÈtdÈmlt￿lll ￿ tÈqUIt￿ and thÈ am(wtht Ob1gatH￿ bÈ rdiabty. Exporrtlit￿e is classifi4d undorthe follMrs ￿a￿T￿¥s. Costs of rwsing fund5 relue to ihe (0515 IfKuThed by ihe tharrtatle ccryany in indLKirq parDe5 to ￿￿e luntary contntrxrtions to 1¢ as vrtll as c05t of any actMbQS ith a fLMdr￿Sin9 purpos4 Expendr(ure on churtthe actiV1tie5 Indudes gra1￿ payable to operatNi￿ k¥¢grarnmES fijrtheriry piwpose5 of the thuity theif aSSO￿ted swwjrt Costs oth0r0x￿Thaiturn rnprosènts ¢hos Itoms IllirJ into ary cthr rKo¥th VATIS (tr4ry4d as a c05t apinsttho aCb%ityfortiich 4ynditufo¥As inoirrn locaknon of SUFPJrt co#s Expenthwre Is ￿lOCated to the thE c05t relatos threctty to thatacDwty. costol I dire(tK>n and ad￿N￿lS[[a￿0n of earh •t¢Mty. roryfising the ovethead r95ts 01t1￿ fvrLtIOn 15 ApF￿l￿n￿d (1 l(AI¢Mifv4 bAS1S is an ÉstimitÈ. ba￿d on 5￿ff ofthe amoLlt tritArtablè to ￿(h The lor tly5 ue da55rfied giwrq. w￿re Inform•th the arAI wtsjècrs of is to Prtefftti￿ ￿NefiC￿ne$. Ihe rosis a55KKed t￿5 publKity are to thuitsble expeTrJiiure. Where Such inlormaDon the wm5. objectNe5 and kyojects oi the charty is ￿s0 prowded to F•Jtefiti￿ doTrJr5. athvty costs arÈ and chantat4¢ a¢tsvrtiS b•sis ol arna oi litètwe o¢wi&l eath actifft. Fundraisi Dir¢(t CP0tstt 8rA Supwt Costs aro r￿lL￿￿tOd tooxh of th• athiti•son th• basistMth is an •stimath. bas4d on staff of the arnurrt attnknat4e bj eath attl￿ty FundNsity Direct Chafflthe G(omaThcÈ G)sts 45% ith c0n5fTtUtw￿ and 5tsvAcry requirelrnnts an& 1ndL￿e costs as50C4ffod ￿Eh the of t chamy'5 a(fTrne5. k) Graffls CThnts paytho ar to third parts in ￿rt￿rInce of tho charity's objects. &rglo or mIti-￿ar 9rarrts 4 acwmed ftjrw￿n ethrthe rEopieni hA5 a re4y)natye tkey￿1•1 re[￿￿ a gTrrt ar•1 th? rru5the5 h 4grÈèd thÈ gtknt MtPJut cor￿lt￿. (thÈ tÈtiwÈrt has a rÈa$￿aL4 Éxwtsti¢￿ that tsyMII a 913ht nd th# coThYirJon attathiry ro thE grnrrt 15 OUt51de of the cortrol of the Ch￿ty. 0￿5￿)n$ 9rants madÈ ￿￿n the intè)ti(n to makè a grart has thÈ bJt thorn uncortwnty ab)ut •it￿r th tmifg ofthft ¥ant c th of9rani payabl Rertsl dhatyes thaty&l ￿ a strgM li￿ ￿$ tyrtt trm fl1￿ Itasé. T•¥4ib￿ fixd ass• em5 of equipwnt are capitltsedtho the purthase wice txceed5 £500. Depr•iatirffj costs are alioced tv acllmties the basis of thE use of the rared ￿Sets in Its)5e attr¥ityes. are revievrtd lor Inwrrn￿r if clrvjmsian￿3 duto carrwty may x£4•d ttsir nAt r￿1$1￿￿￿ ¥￿￿0 and in u5•. IVTrrè fixÈd havè bÈon any xcÈss tho aftxwrt and tr* hstoiiccost af tho assatwill

Financial Statements Fwtht ar tnd•d 31 Do(embw 2020 l AcctyJrrtirJ IcothNtd) n) Twryiblo fixod a55ets <cCqrt￿Wd) precjaDcffl 15 YO￿dEd at re5 dcul#ed to dLwn the c05t cl eath asset to it5 estimued rul￿1 ¥￿ue its expecd useful lrfe. The res in use arE 15 follar￿. Freehold Pry Ccryuter and Ew'pTh•ert FiXtu￿S Fthng5 2X St￿ght lir 25% $￿Yht lint 1 5% red￿Ing bthnce o) Detrknrs Trèjè and otPr dètrtors ¥e wnised at the seiuement amLj7td￿ after arrrftrade dis(fMrt cthred. Prepaynents are valfftd at thè aft￿)￿￿1 wepad iiet of any trnde discoufjts d￿. Cash It bAnk in hand Cash it bank ahd cash in hand Includes osh aTra s￿rt tttm higNy Iquid IrNt5trtnts a short matutityrfthrto nw)rths or bess from Il date of xquisrtiw or opeThr¥ clthe deFv5¢ or similar accounL Credrtfrf5 aTh4 prwisions are recryjnised where the rwity ￿ a present rtjltyaion resultiThJ from a pasi ewen¢ tha¢ill pr0￿bty result In the tsan5fer of funds to a thinl wty and the Thunt due to thE Obli￿tIOn an bE rrnaswed or estim3¢ed ￿lIab￿. CieditNs and t¥o¥isicffj ¥e iecc#Jr5ed attheir s￿e￿￿nI awtsjnt after 11(Mr¥ arty itsle thscothts duè. Tho tharity onty has financi￿ asvts arKI fin￿￿1th1￿•s of a ￿nd that qU￿lfy as ba5ir in5tfUnVffl5. 8a5iC ifistrUrr￿￿t5 1rNti￿ty TKoynised at transattion ￿llt 5ubsequEnty r￿ule0 ai trir seulerr*wrt val th the exce&rt￿n of bank ILWt5 vthith Lre 5ubsequenty mEa5ured d Lrnoth5ed cost Usiny the interest

Financial Statements ended 31 Decombw 2¢)20 2020 2019 C•A I1￿11￿ P¥th•rs ¢R•i¥•d Part￿) Pakistan 6.064.474 3.645.794 9M.269 1.119.S93 659.709 3.715.397 2.078.652 534.311 775.253 403.417 gladosh Nigv r 11 Alghani5ts0 Turkéy SOM￿1￿ 5Q3.2H 141.888 433.366 2.210.636 22B.783 1.458.$70 ns.947 17.214 271.265 1.588.320 244.952 680.171 829.716 Ual¥ shmirlhknstanl Non IAuslim Patners GaTri Sn Lank Lobanon 248.498 M5.S86 221.445 26.354 149.365 203.318 262.330 a￿.?68 67.644 1268.60T 914.439 233.418 111.805 269.517 57.631 .689.4 15.139.977 S￿a Kashmir nndil) maunl￿a Seneg Turkey 245.209 212.505 273.302 475.017 97.28 20.457.554 (Mtrr less than £5Q.¢x￿ in 1.194.426 1.084.672 th ofth• 21.851.900 16224.649 Athjl list of iThJlvJL￿ 9iaMs ¥J w4eas thara￿ fixthd is a￿lI1￿e frcffi ow pnI￿p¥ offKe. JI (4 the Wuslim Hands" Overse￿ chafity opEraDons COntr￿led lovel hrrt not been con501bJthl into thiso flnanu￿ srAtQnnts. In a numbor of cAs•s. om Qr mrfft LIK TIustQ45 Slt on lo￿ boards bul th• c4ws•a5 tpraDon5 havt lo￿ Teg15tration. courtry leytl waN)n5 t￿ated a5 IrthpErthrt partrth. TF•e is NJ inrenbon on bEh￿10f thE ix Lwnl ￿ contrd ary Coun￿ e¥En th thuE cornn￿n BDard menthr3.

Financial Statements totho fin￿ti￿ Ji la Analysis of •xP•nd￿rn I￿rT￿rtY0￿0 Cranrs Pa￿le Cost ofAIsir oprnti(rt)al G(Amar 2020TX 2019Tth Crarts F4yat4 tr4cts 21 sraff costs (Note PrerniseS COSts crfritq tOSts ProtessioThil fee5 PU￿1[a￿On5. adv￿rt￿lry and ￿￿Jrt andaccoLYtsICV Trustees exFQn5e5 21.ISI.9BO 21.851.980 2.773.464 163.268 932.413 239.990 1.6SS.978 35.520 950 16.224.649 2.648,433 J74.249 16.327 91.316 114.99S 1.655.978 372,234 16.a27 92.186 19.999 746.691 104.996 733,599 332,199 1.385.894 22.289 27,716 35.520 950 2.754.885 241.860 24.J61212 295.606 537.466 1437.4661 27.653.563 21.57QOIO TO￿ oxwr4Jthr•ZOZO 2.YY6.745 24.656.8IB 27.653.563 T(￿ 2019 2.575.215 1&994.795 21.570.010 ts ￿lL￿a￿¢)￿ Indudo5 ￿ I1￿￿0￿ra11￿Jgwnrn￿r￿ tho C1￿[Y had had to con51derthoio5t bsthtfrt OfdtsiI￿ record keeping. 1411 catwes hm been ￿￿X3¢ed on abasis COnSiStentWithth2 use Orres￿rc¢s. Ib Athjij Iwioriwr C05t of ￿sir￿j rarirA41 c￿￿MIT￿t lund5 prw 2019 Tof 2018To Crart5 2) Staff tosts (P4th 51 P￿rnises costs (￿lcO costs PtDfQ55la￿aI Pu¥ications. ad￿rt￿Ir￿j and postage r( 4nd4ccowtyicv T[U51￿5 EXPEn5Q5 16224.649 1.560.911 16.224.649 2.648.403 16.126.675 2.182.904 184,8S4 1.054,538 115.576 1.203,626 23,160 14.536 314.191 75.457 603.657 202.619 54.485 7.993 733.599 332.199 1.385.194 22.289 27.716 1.385.894 22.289 27.716 2.37S.627 18.747.951 44&a92 21.570.010 21.205.879 199.588 246.804 1446.J921 WIT￿thre2919 2.575.215 18.9Y.795 21.570.010 Tr￿ ex￿*￿￿e 2018 2.554.185 IB.651.6Y 21.205.879

Financial Statements Noies ro Ihe St￿emem$ For th aTended 31 Decerr*er2020 Net iThcome i ¢exptnditurel f¢r Ihe ytAr Thi5 15 Stated after charging lueditingl. Z020 2019 Audrtors, re￿neratI￿ Itxcludlng VAD. 16.300 18.L¥)O Under-pr¢)vi5w inthe priixvear Dwre£￿tknn rfungiblefixed assets 100.356 109,106 An41ysis ol stthc05r5, tVJ5tet rem￿ne￿￿On ind ¢xpw5eJ, the 0>5101 key pETronnel Staff c05fs ￿Ere a5 follThYs. 2020 2019 S￿arles and wage5 seiurity cost5 Emky￿S pensthn £ontrftsJtlons to denned contdtrAthn scheme 2.478.133 240.863 S4.468 2.374,549 224,997 48,957 Z.773.464 2.648,483 ThE alrye nuMbErdeMpl￿e5 l¢m a h￿d counl b￿5) arwlv5￿J bylurKEion vJa5." 2020 40. 2019 Direct charitable operatK)ns 4Z 46 39 48 fvknajtmtnt administratlon ofTneChai 96 95 The ￿ty0p￿tates adefined corrtribution p￿510￿ 5the￿￿.. 2020 £54.46812019". £48.957) ￿ t￿enCharged in the5tsternent of Fin￿￿ A(tswties during the year in relation IQ Ihis pension scherne Tht empwe bthtfirs ltit1￿•￿4 pensv)n ￿¥￿iSSiOn At ihe year em iht Charffywa5 £S,870 12019.. £7.J79} Lakhte HassaNIn. t￿rIng the year £102 12019 £6.9111 of ex￿￿Se5 forreimbut5ement of trwdel and sub515tence in COn￿ettI0￿ ￿7th the CharitY5 b￿SIneSS V￿re to 4 Tru5rees12019. 4 Tru5teesl. Tuation No tLwraEii)n tax has betn pr￿ded In Ehefinan¢l￿ 5taiements as I4uSlim H?￿a5 is aytgisltred Cha[￿ana IS V•ithin tht exempDLYI gtanEed by Section 505 ofthe Incl)￿￿ and Cotporatian Taxes Act 1988. 69

Financial Statements Muslim Hand5 Notts to the flnllncl￿ statefflents For CornrMrter& oin equipm￿[ Freehdd land & building5 Fixturt5 and fittin￿5 MDtLY VehKle5 T¢Kal C05t At l January 2020 Additior6 Ill 1.418.688 588.807 28.902 154.361 4.819 12.840 2.Y69.691 33.721 Ai 81 De(embEr 2020 1.41B.688 612.709 359.180 12.540 2.403.412 Ctsrnulated dtpre<ladon At l January 2020 Charg¢forth¢¥ur 238.789 28.374 501.425 39.681 257.165 30.983 4.052 l.<hll.431 100.356 At 31 ￿ernber 2020 267.163 541.1 288.148 5.370 1.101.787 Ntl book y￿ue AT 31 Dtttmbor 2020 71.603 71.032 7.470 At 31 December 2019 1.179,894 82,582 97.196 8.788 I,J68,260 Includod in the ffjet Yalueof freth￿d land and bJildirrfJ5 of £1,151,520 IZ019." £1,179.8941 15 £nil re￿￿￿9 to rw-depreaaied land. 2020 2019 (￿herdebt0rS prepa￿￿$ ac<ured Inc¢me 880.191 79.332 643.397 147.075 959.523 790.472 All of the charit*s finanu& in51tumem5. both aSSetsa￿ lithlitie5. are ￿￿aSure￿ at amurti5ed cD5t The (atrwng ￿lle5 of these ab(rrfe n¢ in note5 10 and I I b￿(￿J. Credftor5". I￿1￿9 duE YAlhln onE 2020 2019 Bank loan5 Ttade uEditot5 Accr￿5 and deferred incornt (Xher credltors 34.878 163.439 Z.014.279 26.638 3J.833 206.081 417.397 Z.239.234

Financial Statements P4oteJ to the nmncld st4tefflents Forlhe ar ended Ji fkcerrl>Er 2020 10 Credrior5." amownr5 f￿lIng due Aft£r we )￿Ar 2020 2019 72.S65 107.964 The bAnk loan 15 repaylbleas fvlky•45" Within oneyear Between one ar￿ tiw years two and ffft After fivd 34,B78 35,939 36.626 33,833 34.863 107.443 141.797 The bank loan 15 secured chargE over the freemd kwrtyto ¥%thich rt relate5. The IDJn is rewyknle in morthly ins￿Tr￿nts and ￿arS interestat 2.5%0￿r b3se rate. I l Analy515 of nEt assets beiiitEn fuTrd5 2020 restricted Restntsed T¢xII fvnds Tangibk fixed assets Net cutrenf ￿set5 Long lerm I￿￿111t1es 1.301.625 4.086.874 1,501.625 15.479.162 172.56$) 11,392.288 Net 4SM15 at 31 Lkiembor 2020 5.315.934 11,392,288 16.708,222 Anaty5i5 rfDct a55et5 bets￿¢￿ fvno15 2019 Gene unTesthcttd ResTdaed Total funds Tangible fixed a5sers Net current a5seis Lon9 rerm l￿bIlItIeS 1.368.260 2.660.038 1107.9641 1.368.260 10.642.729 (107.964) 7,782,691 Net assets It 31 C*cember 2019 4.120.334 7.782,691 11.903.025

Financial Statements Not1 toth• finay￿￿ statThnts For rhe r +ndd 31 Decern￿r 2020 12a IAo¥•m•rrt5 In lund5 2020 A31 Af i January 2020 Income Expenditure Transfe 2020 2020 2020 2020 Alyhanistan Alnca Albania Azerbwj ngL•d45h lurrn• Corrtral Africu Ripublk Ch•chnya Chin Cuba 2.082 23B.188 3.937 17.012 70.780 676.034 42.954 39.035 18.252 2.zl 5 1.976 178.213 12.988 258 1503244) 343.704 20.7S5 251.176 4.195 17.06J 118.883 950.981 42.9S4 39.040 la.692 2.215 2.031 128271) 2B.271 802.173 274.947 365.523 440 Errtre• EthiopKJ Europ• R•fugo• Cwis15 Gambia Guln•a ￿$S￿a 13.692 18.936 956 10.691 15.397 23.621 29.942 18.936 2.436 22.929 IB.55T 121.226 54.901 108.531 43.4S5 15.4•A 163.442 395.020 17.41T 205.301 11.3Q9 7.177 93.262 71.7S2 1248.4981 IZ.4661 133.622 14.704 10.997 25.847 14.928) IndoTrui• 55.408 40.248 15.444 58.426 252.796 3.207 Jap Kashrnir- Ihdla Ka5hrnir- Pakijts KoThya Leb4no by• ma(￿don1 330.239 405.003 1245.2091 1785.9471 19.986 523.168 846 11.307 7.172 5.820 2J6.094 1221.445) I J9.806 227.332 346.324 1228.7831 8&893 1.936.064 30.222 M+xico mIJd￿ East Nop Nig Non >p•ofir hkiJtan 2.344 2.655 1.965 300 2.687.140 20.364 2.655 2.OH 36.IH l.S39.369 371.036 2.073.785 9.371 6.379 34.J99 1.965 4.170 26.294 18.977 65.486 323.568 1.346.800 7.177 2.491 2.605.169 40.507 79 317.940 S.829.752 2.775.132 2.969.078 29.783 644 287.536 22 1659,7091 377,613 16.064.474> 13.645.794> 138.562) 3.640.014 12.569 5.735 192 3.943 4.165 26.018 54 65.486 I B9.005 486.260 6.S64 2.493 816.055 78.306 SNirra L•on• 143J.3661 180.037 SOm￿lI1Thd SDuth SDuth Sud Srl Lan Asia Subcontyvd4nt S￿dIn Syn• T￿zIn14 Uzb*kistan 276 186.582 1445.586) 277.927 453.653 934.048 613 1%8.2691 589.575 75.857 32ia.145 362.909 11.458.$701 11.758.190) 34.580 1.357.482 Oth•r Lrrtatlo r￿trit￿d futhds 7.782.691 20.428.713 4.605.282 rArnI￿ fvnds 4.120.334 12.030.047 14.605.282) 5.315.944

Financial Statements Forthe ar ended 31 December 2020 12b Movements In funds 1019 At31 D¢¢embr 2019 At l January 2019 Incorne Expenditure Tran5fer5 2019 2019 2019 Restrfcted fiJnds'. AfghaD15tan Afrfra Albanla Azerbaua Bangladesh Burrna Central Afrlcan Republlc Chechnya Chlna Cuba Egypt Erftrea Ethlopla Europe Refugee Crfsls Gulnea Blsua 2.392 221.958 3.790 16,856 22.866 1,208.428 42.954 39.035 152.924 16.230 147 156 687,574 318,054 158,584 2.082 238,188 3,937 17,012 70,779 676,034 42,9S4 39,035 18,252 2.215 1.976 63.991 378 7,205 13,692 18,936 10,690 18,397 18.936 15,567 109 1.907 56.305 390 18.288 135.845 29.017 Iffidon¢sl4 157.6441 55,409 103,531 40,248 15.444 58,4Z5 252.796 16.2ZO 11,307 7,172 5,820 Zl,144 2,344 2,655 1.965 2,687,141 20.363 24,634 Jpan Kashmlr- Indla Kashmlr- Paklstsin Kenya Ubya acedanla Mala¥ Maurttanla MÈxlco MlddlÈ Easi Nepal Non country5peclfic Paklsran 15,444 308.814 742.482 101,604 322,896 15,040 62 7,172 69,507 22,960 7,954 2,655 1,934 2,880,233 1244,9521 33,148 36.032 20.028 73,957 6,319 3.537.187 1286.70SI 13.443,5741 2.538.231 1,909 138,967 1,907 12,078,652> 120,0031 Rwanda senegal 51erra Leont Somallland South Arrf Soyth Svda Sp4ln Subiontlnent Sudan 14,482 69,641 16,180 12,568 ZT,809 5,735 3,942 4,165 26,018 10,565 65.485 189.006 486,260 6,564 16,B93 2,493 816,055 4,248 4,376 267 17,299 65,485 1,360 770,188 5,983 480.379 984,673 241,578 Tanzanba UK UzbeWstan Yemen Oth•r L•¢aii•ns 90,879 1348.4871 274.501 2,493 293,350 1654.9471 1.977.302 Tot￿ rstrtctd fvThd$ 7,419,572 14,928,823 1,399,848 7.782.691 General fijnds 3.281,242 7,843,397 15,604.4571 4,1 ZO,334 Total funds 10.700,814 22.772.220 121.570.0091 11,903,OZ5 Purpose5 of re5ts1cred funds The Restrlcted Fund contains funds iestrlcted tc a partlcular locatlon and a group of up to ten funds restrlcted to each locatlcn. These funds Include Ernergencies. Orphans. Education. Food. Health. safe Water. Shelter. Field. Rlosgue and Environrnent. 13 R•¢pn¥lll4tlon pf n¢t Inrorn¢ l <¢xp¢ndKyr•l Iv nir wh op¢r4rlng 2020 2019 Ner Incorne I 1exp¢ndknr￿> far the reportlng perlod la5 p•rthi 5Ut•rnent of flnanclal attMtl•sl 4,805.197 100,3S6 1lncrea5elldecre￿e in debtor5 Nli wh P￿￿ded bv I Iu5ed Iv) opEr4tlng act1￿1115 6,318.4Z4 1,554.868

Financial Statements Notes to the nrw1cI￿ 5t4temenrs 14 Anaty5is of cash and cash eQu￿￿ents At31 Dtttmber 2020 At l Janu 2020 Cash Otherthar Cash at bankand in hand Short tem) deposrts 7.825.195 2.684.373 6.184.221 65.084 14.009.416 2,749.457 Toial cash egul￿ents 10.509.568 6.249,305 16.751,873 15 Operntlw lease £ommltnnts The total fvture minimum l&ue pawrrtrts under non-GInc￿lIbk Oper1￿ leases is as foll¢￿ forea restricied donation5from related parties. 17 UltiThiatt cantrdlir4 party The Iru5tee5 do nr)t CDnsider tt￿re to bean ultsmaie cDnirolling puty. 18 Le9￿ slatU5 of the charty The (Ninty 15 acompanylimited byguaranrtt and has rn shAre <awW. The Iiatsiityofeath Th￿ber in thetvui ofwiTrdiryJ up is limited io £1.