OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-12-31-accounts

REPORT 2022

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2022

CLICK ON PAGE NUMBER

Contents

06 Strategic Report 30
30		 RELIGIOUS EDUCATIO
Restoring and building mosqu
07 Fundraising
08 Where we work 30 Supporting our shared heritag
09 EMERGENCY RESPONSE 31 UK PROGRAMMES
10 Flooding in Pakistan 31 Open Kitchens see big increas
11 Flooding in Bangladesh 32 Muslim Hands Cost-of-living c
12 Drought in Somalia 32 Empowering children with cre
13 Healthcare for Rohingya refugees 33 MONITORING SECTIO
14 Clean water and food in Yemen 33 General Sponsorship monitori
15 CLIMATE ACTION 34 Yemen bread factory monitori
– ENVIRONMENT 35 Mali livelihood project monito
16 Combatting Desertification in Taguilalett 36 Core Humanitarian Standard
17 HEALTH PROJECTS 37 Sustainable Development Goa
17 Conflict and health in Yemen 38 HIPD Partnerships
17 Mothers on the frontline 39 Financial Review
18 Giving disabled students hope 41 Expenditure
18 Healthcare in rural villages 44 Structure, Governance and Ma
19 PROVIDING EDUCATION 45 Objectives, Vision and Mission
20 Supporting orphan students 46 Public Benefit Statement
20 Hifz 47 Principal Risks and Uncertaint
21 TACKLING FOOD INSECURITY 48 Internal Audit and Risk Assura
22 Ramadan 49 Plans for the Future
23 Qurbani Distribution 50 Statement of Trustees’ Respon
24 LIVELIHOODS 51 Independent Auditors’ Report
24 Vocational Training 54 Statement of Financial Activiti
25 Women-centric livelihood projects 55 Balance Sheet
26 Farming tools for the community 56 Statement of Cash Flows
27 MICROGRANTS: 57 Notes to Financial Statements
EMPOWERING ENTREPRENEURSHIP
General Sponsorship monitori
Yemen bread factory monitori
Mali livelihood project monito
Core Humanitarian Standard
Sustainable Development Goa
HIPD Partnerships
Financial Review
Expenditure
Structure, Governance and Ma
Objectives, Vision and Mission
Public Benefit Statement
Principal Risks and Uncertaint
Internal Audit and Risk Assura
Plans for the Future
33
34
35
36
37
38
39
41
44
45
46
47
48
49		 ng
ng
ring
ls
nagement

ies
nce

2

Message from the Chairman

Assalamu Alaikum,

For thirty years, Muslim Hands has remained at the forefront of addressing major humanitarian crises and engaging in developmental work. All our work over the last three decades, from providing emergency relief to running schools, sponsorships and other long-term projects, has only been possible because of the generosity of our donors and the hard work of our teams.

Now, we are rebuilding homes in both locations. Muslim Hands also remained dedicated to addressing ongoing emergencies in Somalia, Yemen and Afghanistan through a variety of interventions, which this report will detail.

Through our two Open Kitchens in London and Nottingham, we targeted the most vulnerable communities in the UK by providing cooked food and other support services to hundreds of families and individuals. supply over a million meals through a vast network of partner organisations.

We are extremely grateful for the tremendous support we received, despite the challenging economic circumstances faced by our donors. The trust placed in Muslim Hands by our generous supporters enabled us to respond effectively to emergencies and continue our regular developmental work. 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 in the years to come, in sha Allah.

Wassalamu Alaikum,

In 2022, Muslim Hands responded to new and ongoing emergency situations across the world. When extreme floods submerged much of Pakistan and a devastating earthquake hit Türkiye and Syria we provided essential aid to the affected populations.

Over the past year, our developmental work, encompassing education, orphan sponsorship, WASH (Water, Sanitation and Hygiene), income generation and health, has directly benefited 9,166,398 individuals.

Syed Lakthe Hassanain

BACK TO CONTENTS

3

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 Mohammed Zameer (Resigned 06 December 2022) Abdul Qudeir Khan 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 (Engagement completed October 2022) Bankers National Westminster Bank plc, Hyson Green, Nottingham Santander UK plc, Manchester Business Centre, Manchester Al Rayyan Bank plc, Edgbaston House Birmingham Barclays Bank, Churchill Place, Leicester Solicitors Freeth Cartwright LLP, Cumberland Court, Nottingham Knights PLC, 84 Friar Lane, Nottingham

BACK TO CONTENTS

4

INTRODUCTION

This year marks Muslim Hands’ 30th anniversary. For the past three decades, our donors have been at the centre of supporting disadvantaged communities across the world.

Our organisation was born out of a grass-roots response to the devastation of the Bosnian war, where we collected money, clothes and medicine and drove them to the people of Bosnia.

Since then, we have worked in over 30 countries providing short and longterm relief to communities impacted by poverty, conflict, and natural disasters.

This year, with the help of our amazing supporters, we launched some exciting new initiatives, including our microgrant project – which supports people from disadvantaged communities to establish or expand businesses, and our climate action project in Mauritania, which is building resilience in communities affected by desertification.

This is the 2022 annual report of the Muslim Hands trustees.

It is presented together with a Trustees’ Responsibilities Statement on page [page 58] ., the Independent Auditor’s Report on pages page 56 and the financial statements for the year ending 31 December 2022 on pages page 62

The financial statements for the year ending 31 December 2022 have been prepared in accordance with the accounting policies set out in the note to the financial statements. The financial statements comply with the Charity’s Governing Document, the Charities Act 2011 and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

BACK TO CONTENTS

5

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

In 2022, Muslim Hands made significant progress in implementing robust systems to support its five-year strategy, provide ongoing capacity building support to its charitable partners and foster improved accountability through effective evidence and information management.

This was made achievable by monitoring and evaluation of the strategy’s implementation, ensuring alignment with organisational objectives. Furthermore, efforts were made to empower partner offices to effectively cascade and integrate the organisational strategy, to improve the precision in targeting beneficiaries needs. This year, Muslim Hands successfully laid the foundation for a data-driven approach, strengthening its partners’ ability to deliver impactful programmes,

foster growth and enhance overall organisational performance.

Muslim Hands implemented a comprehensive, tailor-made capacity building programme for its partners, aimed at enhancing their capabilities and enabling effective implementation of the strategy the benefits of this include improving oversight and control of funding through standardisation of MH grant management systems, financial reporting and compliance.

Muslim Hands also went through the development and implementation of a highly sophisticated Strategy Tracker, which serves as a comprehensive tool to monitor the progress of programmes across partner offices. Muslim Hands firmly believes that the Strategy Tracker represents a significant leap forward for the organisation, empowering us to establish and monitor results, track progress, and make informed decisions more effectively for optimal resource allocation.

Throughout 2022, the Strategy Tracker played a pivotal role in providing Muslim Hands, its partners and trustees with

real-time access to essential information and a holistic view of progress across all stakeholders. This centralised platform facilitated streamlined communication and enabled all parties to have instant access to vital data from a single, easily accessible location. Looking ahead, Muslim Hands is committed to further enhancing the Strategy Tracker by incorporating additional features. By integrating additional elements, the Strategy Tracker will remain a dynamic tool that continues to evolve and adapt to meet the emerging needs of the charity, manage risks, safeguard beneficiaries and improve the charities learning process.

Muslim Hands acknowledges

the significance of research and development in guiding the organisation towards a learning culture that prioritises evidence-based practices and an impact-oriented approach. With the introduction of the new MEAL framework, a “Results Monitoring” mechanism was piloted and scaled up to assist in evaluating its programmes worldwide to determine whether they are achieving the desired results. Muslim Hands aims to utilise the evidence from these findings to review its work each year and plan accordingly.

BACK TO CONTENTS

6

FUNDRAISING

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Our teams raise funds from the public by organising charitable collections, events, challenges, TV appeals and through direct marketing.

Muslim Hands continued its membership with the Fundraising Regulator – complying with its guidelines through training and development of all fundraisers.

and using our own ‘do not contact’ list, allowing all individuals the opportunity to opt out of communications, limiting the number of direct marketing communications to an average of two per quarter. Furthermore, the communication is often limited to those who have donated recently to 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. There were 7 complaints received in the course of fundraising during the stated period.

To protect vulnerable people in the course of fundraising, we take appropriate measures which include screening contact details against the TPS

BACK TO CONTENTS

7

Where we work

Muslim Hands partners with

independent charities across the world to deliver its charitable programmes. Muslim Hands establishes its partnerships with a series of Trademark Licenses for MH branded partners and Collaboration Agreements with all partners. The partners are reviewed periodically as part of the Charity's partner Due Diligence. Their capacity is assessed to ensure they have reliable Governance arrangements, the ability to deliver programmes and to ensure that there is reliable financial management of charitable funds.

The partnerships are overseen on an ongoing basis by methods including sharing some common trustees for oversight, in-depth monitoring and evaluation to evidence the following: end use of funds, programmes quality and compliance to policy. Muslim Hands also carries out physical verification by visiting partners throughout the year. During visits Muslim Hands' teams check the existence of programmes, their delivery and completion and crosscheck partners’ records, reports and Photographic/ Videographic evidence submitted. During the visits, they

also conduct quality checks with the support of specialists for programme quality and safety. Furthermore, Muslim Hands has an outsourced Internal Audit department which provides independent assurance on its Control Environment including the implementation of Programmes. Recent locations visited for monitoring include Afghanistan, Gambia, Indonesia, Lebanon, Mauritania, Malawi, Mali, Pakistan, Somalia, Turkey and Yemen. The partners where Muslim Hands deliver its programmes are based in the locations listed below.

Afghanistan 228,876 beneficiaries Bangladesh 170,922 beneficiaries Gambia 53,825 beneficiaries India 57,935 beneficiaries Indonesia 765 beneficiaries Kashmir (India) 265,414 beneficiaries Kashmir (Pakistan) 961,852 beneficiaries Lebanon 30,796 beneficiaries Malawi 85,803 beneficiaries Mali 360,071 beneficiaries Mauritania 8,602 beneficiaries

Niger Pakistan Palestine Rwanda Senegal Somalia Sri Lanka Sudan

Turkey

United Kingdom

Yemen

130,264 beneficiaries 974,044 beneficiaries 795,366 beneficiaries 2,690 beneficiaries 316,007 beneficiaries 1,140,640 beneficiaries 101,373 beneficiaries 56,100 beneficiaries 158,685 beneficiaries 447,395 beneficiaries 2,818,973 beneficiaries

BACK TO CONTENTS

8

RESPONSE EMERGENCY

[– Total Emergency Aid Beneficiaries ] 3,574,485

Muslim Hands (MH) has successfully worked in emergency zones over the past 30 years, providing humanitarian relief to beneficiaries who have escaped war and conflict.

At Muslim Hands, we have always emphasised the importance of immediate response, whether it is providing urgent food parcels in Afghanistan or providing blankets and water to those impact by wildfires.

In 2022-23, many communities around the world were impacted by extreme weather patterns and natural disasters. Bangladesh and Pakistan experienced some of the severest floods in their history and Somalia, its worst drought in forty years. Meanwhile, Rohingya refugees in Cox Bazar were once again left vulnerable to fires and monsoon rains.

BACK TO CONTENTS

9

FLOODING IN PAKISTAN

In 2022, one-third of Pakistan was submerged under water during extreme monsoon flooding. The floods displaced at least 7.7 million people, and 2.1 million homes were damaged. Meanwhile, 1.2 million livestock were killed.

Your donations provided food parcels, clean water and hygiene kits. We also set up medical camps to combat waterborne diseases and malnutrition amongst the survivors.

After we completed our emergency response phase – we moved on to our Rebuild Pakistan project. Through this intervention, we have already constructed 50 homes. Our target is to construct 110 homes for families in Balochistan and Jaffarabad, and a further 50 homes are being built in Badin, Sindh.

The houses we are constructing will be in line with Sphere standards. The covered area of each home is 295 square feet and each person will be allocated 5.5 metres of land. Each property will be made from brick in order to ensure that it withstands monsoon flooding and earthquakes. Each home has one family room [12 feet x 14 feet], a kitchen [5 feet x 9 feet], and a bathroom [5 feet x 5 feet] with a septic tank. All rooms will have electric fittings, which include lights, a ceiling fan, and a switchboard.

Kabeer Ahmed, 22, is one of the beneficiaries that we are supporting with rebuild homes project. He sadly lost his property during the monsoon rain.

Kabeer said, “I lived in a house with two rooms, a small kitchen, and a boundary wall which were demolished by the flood. I am homeless now, and I fear for my 11-month-old son. We do not have clean water, blankets, or food, and our livestock perished. We cannot afford the construction expenses, and with Muslim Hands’ support, we can start afresh in our new property.”

BACK TO CONTENTS

10

BANGLADESH

Meanwhile, extreme floods in Bangladesh impacted the lives of over 4 million people. Heavy monsoon rains led to rivers bursting their banks and the hardest-hit district, Sylhet, was completely submerged.

Our team in Bangladesh distributed emergency relief parcels, which included food supplies, water purification tablets and other essential non-food items. The parcels were distributed to beneficiaries residing in Zakiganj Upazila and Sunamgonj.

Jayfor Ali, a brick field worker, lost his only source of income because of the monsoon rains. When the brickfield he worked on was flooded, he was left unemployed.

Jayfor told us, “We were worried about our future. We didn’t know what we would do.”

Our team in Bangladesh provided Jayfor with an emergency relief parcel which included food and non-food items to support him and his family as they tried to rebuild their lives.

BACK TO CONTENTS

11

DROUGHT IN SOMALIA

While Pakistan and Bangladesh were grappling with floods, Somalia faced its worst drought in decades.

The country is in a dire humanitarian crisis. Around 8.3 million people require urgent humanitarian assistance. It is estimated that more than 1.4 million children in Somalia, nearly half of the country’s under-five population, are suffering from acute malnutrition. Roughly 1.3 million people are internally displaced and 80% of the displaced are women and children. The Muslim Hands Motherkind maternal health clinic has seen an influx of mothers and young children suffering from malnutrition.

The crisis in Somalia is now worse than the 2011 famine, when almost 260,000 people lost their lives, at least half of them children. Our donors have been providing emergency food parcels,

clean water, and specialist medical care to women, children and elderly people residing in displacement camps around the capital of Mogadishu.

Muslim Hands have also been tackling water shortages in rural villages by constructing two large wells in Berdalle and Marko. This project aims to prevent 50,000 people from being displaced from their lands because of the ongoing drought.

Amina Abdi Ibrahim is 30 years old, and her son Hussain Ali is 18 months arrived at our Motherkind clinic severely malnourished. Amina lived in the rural area of Saplaal and left to join a Mogadishu displacement camp nearly a year ago. She lost everything during the drought, including her livestock. It took her ten days by foot to travel to Mogadishu.

She told our team, “We have nothing at home, no water. If we do have food, it’s only a small amount of rice.”

Amina is one of many mothers receiving medical care through our Motherkind Clinic, and her family also benefitted from our emergency food parcels.

BACK TO CONTENTS

12

REFUGEES

[– Total Rohingya Beneficiaries ] 29,750

Muslim Hands has been working in Cox Bazar since 2017. Fleeing from persecution, more than 773,000 Rohingya—including more than 400,000 children— have sought refuge in the world’s largest displacement camp.

We have supported Rohingya refugees through various initiatives. We have established a women’s centre, children’s centre, and installed solar lights to make navigating the camp safer for women and girls and built shelters to house those who have lost their homes in successive fires and monsoon flooding. This year, our main focus was on providing free health care through our dedicated health camp.

The camp offers lifesaving and

comprehensive primary health services for the Rohingya community, with a special focus on women and children. We have also been providing access to child protection services and psychosocial support activities for girls and boys.

Safa, 12, arrived in Bangladesh when she was just seven years old. Safa is one of the beneficiaries that our donors have supported through the Muslim Hands health clinic. Her family’s home is made out of bamboo and tarpaulin. The floor is muddy and they often fear the monsoon rain will wash their house away.

Safa developed a skin irritation

because of the lack of hygiene facilities available to her, “Living in this unhealthy environment is dangerous for my siblings and me, but this intervention has eliminated some of the worries we have been facing.”

The clinic provided Safa with free medicine which she uses daily for her skin.

BACK TO CONTENTS

13

[beneficiaries in Yemen] 2,818,973[– Total]

This year marks the eighth anniversary of the Yemen war. 4.5 million people remain displaced,17 million are food insecure and 21.6 million need urgent humanitarian assistance.

Muslim Hands has been on the ground in Yemen since 2015. In 2022, we were at the forefront of providing clean water to millions of Yemenis, including:

We have also been supporting our students by providing education through our School of Excellence, established in 2021. In Yemen, 2,700 schools have been destroyed or partially damaged by the conflict in Yemen. Our Muslim Hands School of Excellence in Aden ensured that 330 children received a quality education and free school meals in a safe, welcoming space this year.

As well as providing meals through our own school, we also support other organisations through our school feeding programme in Marib. Currently, around 2.2 million children are malnourished in Yemen and our interventions aim to tackle child malnutrition head-on. In the past year we have distributed over 65,000 nutritious meals to our orphan students. The children receive a 125 ml pack of milk, bread, cheese, and two pieces of seasonal fruit.

We also feed entire communities through our network of bread factories in north and south Aden, north and south Marib, and Seiyun.

In 2022, our donors provided over 45,000 loaves of freshly baked bread daily to orphans, widows, elderly people and people with disabilities.

Abdul Qadir Mohammad, 14, has Down syndrome. Her father does not have a fixed income, and what he earns is insufficient to sustain the family. For Abdul Qadir and her family, the bread they receive is a lifeline and means their small income can be used to provide other essentials.

BACK TO CONTENTS

14

ACTION

ENVIRONMENT

The disastrous effect of climate change is being felt around the world. This year we witnessed extreme heatwaves across Europe, drought and famine across the Horn of Africa, and unprecedented monsoon flooding in Pakistan and Bangladesh.

Recently, the United Nations Environment Programme released the Emissions Gap Report, and the findings were leaked. The UN assessment highlights that there is “no credible pathway” to keep the rise in global temperatures below the key threshold of 1.5C. Scientists believe going beyond 1.5C would have a detrimental impact worldwide.

Meanwhile, many of our beneficiaries were directly impacted by the climate crisis.

At Muslim Hands, we emphasise Sustainable Development Goal 13, which states the importance of urgent action to combat climate change and its impact. Our Climate Action campaign strives to teach those who are bearing the brunt of climate change how to be resilient against this crisis.

One of our Climate Action projects established in 2022, is combatting desertification in Taguilalett, Mauritania. We have also been working in Niger and Pakistan, providing livelihoods to beneficiaries affected by climate change.

BACK TO CONTENTS

15

COMBATTING DESERTIFICATION IN TAGUILALETT

Around 90 percent of Mauritania lies in the Sahara Desert, making it particularly vulnerable to the effects of lengthy periods of drought and decreased rainfall.

The Sahel region is especially susceptible to climate shocks, as the temperature there has risen by 1°C since the 1970s, almost twice the global average. Desertification, the process in which fertile land becomes a barren desert—is a significant problem throughout Africa, but it is sweeping across Mauritania at an alarming rate.

Desertification has shattered lives across the country. Whole villages have been buried in sand and many Mauritanians suffer from health conditions, including respiratory and kidney problems and eye and skin irritations.

Lack of fertile land for crops and livestock means increased food insecurity, which has caused malnutrition, particularly among women and children. Currently, almost 17

percent of the population lives below the extreme poverty line, with an astonishing one in four children living in poverty.

Our flagship climate action project in Mauritania aims to offer respite to the community in Taguilalett, south- west Mauritania. Muslim Hands aims is planting 20,000 trees to halt desertification. The trees (and shrubs) include acacias, Leptadenia and panicums (herbaceous). The trees are planted four metres apart – with shrubs in-between.

While the project focuses on protecting the community from desertification, we are also working closely with ten women’s cooperative groups and providing them with training so they can effectively cultivate the fertile land that will be created as a result of a combined approach of tree planting, drip irrigation, and crop cultivation. Ten women from the cooperatives and four local volunteers will be trained in gardening techniques, specialising in market gardening.

The combatting desertification project will support 4000 Mauritanians. It strives to give the community muchneeded respite and protect women like Beye from the ever-moving sand:

Widow, Beye Hacen, 68, lost her home to desertification in the 1990’s. It was completely buried in sand, including four rooms, a toilet and a kitchen. She first moved to a nearby house, but it was not her own, so she moved to another and then another again. Now, she lives in a Barakha (a local type of house with a roof made of metal sheets, but no walls). This temporary accommodation has been lent to her to live in for now, but after so much upheaval, she doesn’t know what her future holds.

BACK TO CONTENTS

16

PROJECTS

[– Total health projects beneficiaries ] 443,418

CONFLICT AND HEALTH IN YEMEN

The health situation in Yemen is dire - only 50% of all health facilities are fully functioning.

Those that are functioning lack qualified staff, medicine, and medical equipment. In 2022, our health clinics in Marib and Aden were a lifeline for 340,000 individuals in the two governorates extending South and North of Yemen.

MOTHERS ON THE FRONTLINE

Muslim Hands’ MotherKind clinics in Somalia and Afghanistan have supported mothers and their children since 2011.

The maternal mortality rate in Somalia is one of the highest in the world, with a ratio of 692 deaths per 100,000 live births, while in Afghanistan maternal mortality rates are the highest in Asia, with 620 fatalities per 100,000 live births.

The free maternal health clinics offer first-class pre-and post-natal care,

including access to qualified midwives and doctors, vaccinations, treatment for malnutrition, labour wards and free medicines and vitamins. We also hold regular awareness-raising sessions on nutrition and hygiene and counselling sessions for those dealing with traumatic experiences.

Nasrin, 25, came to the Motherkind clinic in Afghanistan seeking treatment for her malnourished child. Before the establishment of the clinic, she had no access to healthcare in her neighbourhood. Our Motherkind clinic provided free medicine to her child - she expressed her joy at the clinic’s ability to address her family’s health issues free of charge and without traveling outside the area.

BACK TO CONTENTS

17

PROJECTS

GIVING DISABLED STUDENTS HOPE

According to UNICEF, 240 million children living with disabilities are denied their fundamental rights, and 49% are likely to have never attended school.

While discrimination is a key factor – many schools lack adequate funding to support students. In 2022, we introduced our child sponsorship scheme for students with disabilities receiving specialised care and educational support in Yemen, Somalia, and Pakistan.

The sponsorships ensure that these children receive the tailored support they need to not only survive but thrive in challenging circumstances.

Jabir, 15, attends a deaf school in Somalia. His family struggled to find him a special needs school. With the support of his generous sponsor, Jabir has learned sign language so he can now communicate fully with his peers and participate in lessons. Now, Jabir aspires to be a pilot, a dream he thought was out of his reach for him before he started at the school.

HEALTHCARE IN RURAL VILLAGES

As half of the world lives in rural, remote areas, many people continue to live without local healthcare services.

In 2022, we operated six basic health units across Pakistan. The health units provide quality healthcare services, including free medical check-ups and free medicine to communities that reside in rural and remote areas.

One of the patients at our basic health unit in Rawalakot, AJK told us, “I lived in a house with two rooms, a small kitchen, and a boundary wall which were demolished by the flood. I am homeless now, and I fear for my 11-month-old son. We do not have clean water, blankets, or food, and our livestock perished. We cannot afford the construction expenses, and with Muslim Hands’ support, we can start afresh in our new property.”

BACK TO CONTENTS

18

EDUCATION

83,026[children received education]

Education is a fundamental human right - yet millions of children around the world are not in school. Reasons for this include poverty, conflict, war and living in remote, inaccessible areas.

Many parents do not have the means to pay for their child’s education and for those living in poverty, children are sent out to work at a young age to contribute much needed funds to the family income. Providing a free, accessible education to children is one of the most effective ways of lifting them and their communities out of a cycle of poverty. This is why education is at the heart of our work.

As well as running our own network of schools providing a quality education to disadvantaged children in over 10 countries, we also support education initiatives throughout Asia, Africa and the Middle East.

BACK TO CONTENTS

19

STUDENTS

Muslim Hands orphan sponsors support children who have lost one or both parents in 18 countries. All orphans sponsored through Muslim Hands are receiving an education and for many of the children we support, the sponsorship includes daily school meals, health checks and transportation.

Muhammad, 16, is one of our Hifz sponsorship students. His mother could not afford to send him to school after the death of his father. This sponsorship has provided him with a safe space in which to learn the Holy Qur’an from qualified, supportive teachers. He is happy that his dream to become a Hafiz-e-Qur’an is coming true.

In 2022 we launched our new Hifz sponsorship programme In Somalia and Pakistan. The project teaches disadvantaged children how to read and memorise the Qur’an. The sponsorship allows them to further their Islamic studies, opening up opportunities for them as future teachers and leaders. Students begin their studies at the age of nine, and it takes around three to six years to complete the course.

FOOD INSECURITY

We helped food insecure beneficiaries 1,769,550

The climate crisis, wars and economic instability have exacerbated food insecurity in the last twelve months. It is estimated that 828 million people are unsure of where their next meal is coming from. Conflict is the primary sources of food insecurity – around 70% of people without adequate food live in countries affected by conflict. Climate disaster also fuels food insecurity, destroying crops and livelihoods and driving millions of people to starvation.

In 2022, many of our beneficiaries faced unprecedented hardship - Muslim Hands has been actively working in the world’s poorest countries to tackle the issue of food insecurity.

Our projects include short-term solutions such as providing food parcels to long-term interventions like our bread factories.

In Afghanistan, a country ravaged by years of violence and instability, the number of people suffering from acute malnutrition has risen from 14 million to 23 million since the collapse of the economy in 2021. In 2022, Muslim Hands’ tandoor bread factory in Afghanistan provided 700 of the most vulnerable people battling food insecurity with fresh bread daily.

BACK TO CONTENTS

21

IFTAR

We distributed iftar food to beneficiaries 100,000

In Ramadan 2022, we provided hope to communities inflicted by hardship. In total, our donors provided an amazing 2 million meals. Our teams distributed lifesaving food parcels, including essentials such as dates, lentils, rice and beans, as well as daily hot meals.

Six-year-old orphan Shamil lost his father to brain cancer in 2017. Due to the economic instability in Sri Lanka, Shamil’s mother was struggling to make ends meet. The Ramadan food parcel we provided ensured the family did not have to worry about purchasing food staples for the entire month.

BACK TO CONTENTS

22

We distributed Qurbani to beneficiaries 657,426 DISTRIBUTION

For Qurbani 2022, we distributed meat to beneficiaries across 25 locations. The fresh meat was distributed in emergency locations like Yemen, Syria and Somalia and throughout communities struggling with food insecurity and poverty.

For the first time, we also partnered with Hill Farm finest to offer a special organic UK Qurbani, which proved very popular with our donors. Two-thirds of the freerange grass-fed hogget was delivered directly to the donor’s front door. The remaining one-third was distributed to lowincome families, refugees, and homeless people at our Open Kitchen in Hounslow.

BACK TO CONTENTS

23

[– Total livelihoods beneficiaries ] 54,250

VOCATIONAL TRAINING

The Muslim Hands Technical Training Centre and College of Computer Sciences in Wazirabad has been providing technical training services to the local community since 1994. In the past year, the college has provided vocational training to 400 students.

One of those students was 21-year-old Qasmin. Qasmin worked at the local hospital as an assistant, but he did not have the necessary skills to apply for a promotion. However, after completing the course, he took a test for a computer operator position and passed: “I am very thankful to Muslim Hands for accepting me onto the course and for supporting me with my dreams.”

BACK TO CONTENTS

24

[– Total beneficiaries] 29,336 LIVELIHOOD PROJECTS

Globally, only 1 in 3 businesses are owned by women. In South Asia, only 18% of businesses are owned by women, while in SubSaharan Africa, only 29% of women are business owners.

Our livelihood programmes for women promotes Sustainable Development Goal 5 to achieve gender equality and empower all women and girls.

In Afghanistan, Mauritania, Mali and Niger, where business opportunities for women are few and far between, our sewing machine project is an important income generation scheme that not only provides women with the skills training they need to support their families, but also gifts them a sewing machine and material so they can put those skills into action.

Meanwhile, our Hope Shops in Somalia provided 10 displaced women with a sustainable income in 2022. We also provided shops to women in Mali, Sri Lanka and Pakistan.

Recently, we supported Leylo, an IDP from Somalia. We provided her with a Hope Shop. Before our intervention, Leylo used to earn as little as $1,50 a day, not enough to sustain her family.

She told our team: “I could not believe my eyes when Muslim Hands built a shop for me. Now because of their intervention, we can eat three times a day. I earn $5 a day selling sweets, food, and detergents. My children are back in school, and they are healthy again. For the first time, I am excited for the future.”

BACK TO CONTENTS

25

LIVELIHOOD BENEFICIARIES

[beneficiaries] 54,250

The Improving Agricultural Yield for Local Farmers project in Niger has provided women farmers in Fabidji commune of the Dosso region with seeds and farming tools

Our aim was for the farmers in Fabidji commune of the Dosso region to have a sustainable income and better yields, and to become more resilient to future climate disasters impacting their livelihood.

Sahada is one of the beneficiaries we supported with our sustainable livelihood project. After her husband’s illness, Sahada’s family were plunged into extreme poverty. They barely had enough food to eat and they could not afford to send the children to school.

Our donors provided Sahada with seeds and farming tools for a sustainable livelihood, including new, easily marketable crops such as soybeans and watermelon.

Meanwhile, our livelihoods enhancement project in Pakistan’s District Charsadda and Nowshera has provided families affected by the extreme monsoon weather of 2022 with 100 income generation shops and provisions for 100 farmers.

BACK TO CONTENTS

26

Starting a business can be a daunting process but launching your business in a developing country is much more complex, with additional challenges and obstacles.

At Muslim Hands, we believe in empowering communities to support themselves in order to make long-term, sustainable progress in tackling poverty. That is why we launched our Micro Grant scheme in Yemen, Sri Lanka, Pakistan and Gambia; a Zakat-eligible project which allows donors to support an entrepreneur directly.

The donor can read through individual cases and support whichever beneficiary they desire. Each grant application is assessed based on needs and urgency and uploaded onto the Muslim Hands website for our donors to look through.

By paying out a small grant, the recipient does not have the added stress of paying a loan back and can focus on growing their business.

BACK TO CONTENTS

27

safe water beneficiaries 2,104,899

A staggering 771 million people around the world still don’t have access to clean water close to home. Our clean water projects have reached millions of people in some of the most remote places in the world.

Our current WASH projects are running in:

SOLAR-POWERED WELLS IN MALI

In 2022, we began constructing a solar-powered borehole that will supply 100 direct water connections through overhead water tanks.

In accordance with WASH guidelines and SPHERE standards, the overhead water tank will have the storage capacity to meet the daily water requirements of people in the village of N’Teguedo . The water tank is connected to 100 water points where people can collect water safely. It will supply around 30 litres of water. Each borehole will have an approximate depth of about 140-200 meters. The water points will reach over 1,500 beneficiaries.

Diako, 87, is one of the beneficiaries who will be benefiting from the project. Diako’s village suffers from a lack of clean water. Many villagers cannot cultivate their fields because of low rainfall. The water point will not only provide clean water for drinking, but it will also support their agricultural livelihoods.

BACK TO CONTENTS

28

MENSTRUAL HYGIENE

In 2022, we launched our innovative WASH project in Karachi, in line with Sustainable Development Goal (SDG) 6, which aims to achieve universal access to sanitation and hygiene for all by 2030 - with special priority on the needs of girls and women.

The project consisted of us constructing female- friendly washrooms for menstruation hygiene management for girls in public schools. We also arranged bi-monthly orientation sessions with students in elementary and secondary schools on personal hygiene management.

With around 79 percent of Pakistani women suffering from a lack of access to the resources needed for proper menstrual hygiene management and the stigma around the topic of menstruation, this project, which has supported nearly 6,000 girls, is an important step towards removing the obstacles many face.

Our school WASH project has assisted 16-year-old Alina, who had some concerns regarding sanitation at her school. The main issue she highlighted was the damaged door of the restroom. When she was menstruating, she was afraid to change her pads, as someone might see her through the damaged door.

Due to not changing pads for a lengthy period, she developed painful rashes. After constructing the toilets at her school, Alina, feels more comfortable going to the bathroom – “I feel safe and secure after the completion of the newly constructed washrooms.”

BACK TO CONTENTS

29

EDUCATION

40[ mosques built for rural communities]

RESTORING AND BUILDING MOSQUES

In 2022, we built and rehabilitated 40 mosques in rural and remote locations in Mali, Pakistan, Sri Lanka and Bangladesh.

The intervention aimed to provide worshippers with a clean place to pray, and to provide a communal space for isolated communities to come together. The mosques also serve as educational facilities and provide important services, such as dispute resolution and marriage and funeral arrangement.

SUPPORTING OUR SHARED HERITAGE

The Djenne Mosque, located in Mali’s historic city of Djenne was constructed in the 13th century and is one of the oldest mosques in the world

A classic example of Sudano-Sahelian architecture, it was designated a World Heritage Site by UNESCO in 1988. We have supported the mosque since 2008.

Our interventions include improving the general state of the mosque, ensuring better working conditions for the staff and maintaining the Islamic library.

In 2022, we supported 1,550 beneficiaries connected with Djenne Mosque.

BACK TO CONTENTS

30

SEE BIG INCREASE IN DEMAND

In 2022, communities across Britain faced soaring inflation and the hardest hit were lowincome families. As food and energy prices rose to an all-time high, people across the country were in survival mode, trying to navigate this crisis.

The Open Kitchen has become a lifeline for many throughout this cost-of-living crisis. Both the Nottingham and London Open Kitchens have seen a substantial increase in users visiting the centres. The London Open Kitchen alone witnessed a 25% rise in visitors in 2022.

In 2022, we distributed a total of 129,627 hot, nutritious meals to our Open Kitchen beneficiaries.

Anna, one of our regular visitors, highlighted how the cost-of-living crisis has greatly impacted her family. She explained that the wages she has been earning as a cleaner at a local school have remained the same for the last four years, while food prices have increased drastically.

At first, she was ashamed to come to the Open Kitchen and feared the stigma around attending a food bank, “Before coming here, I suffered from depression and constantly worried about the price of food.”

However, she believes that the centre has been a lifeline for her, “This place has eliminated some of the worries people in the community have been facing, including me.”

While the hot meals are the kitchens’ main staple, we also provide household essentials like milk, sugar, coffee, beans, porridge, nappies, baby formula and baby clothes.

BACK TO CONTENTS

31

This year, in partnership with Fareshare Midlands, we released our Cost-of-Living crisis report, which includes in-depth research from our own Open Kitchens, as well as insights from many other organisations on the frontline of the battle against rising food insecurity in the UK.

Since we launched the Young Muslim Writers Awards (YMWA) in 2006, we have been working towards raising the standards of children’s literacy and creative writing for 5 – 16 years olds across the UK

As only 0.4% of journalists in the UK are Muslim, the YMWA wants to encourage more young Muslims to pursue a career in journalism and the creative industries.

Our competitions encourage the children to explore creative writing, particularly short stories, poems, screenplays, play scripts, and journalism. The material submitted is assessed by renowned poets, authors and other notable figures from the arts and media industry. The project also delivered creative writing workshops across Britain for children to meet with accomplished authors and develop their writing skills.

In 2022, YMWA held its first in-person awards ceremony since the pandemic. The ceremony was held in London and celebrated 35 young writers nominated across 13 categories. The aspiring writers submitted their work across short stories, poetry, journalism and screenplay categories. The event included a stunning performance by Eleanor Martin from the Khayaal Theatre Company.

BACK TO CONTENTS

32

SPONSORSHIP MONITORING

Our General Orphan Sponsorship Programme was one of the thematic areas that underwent monitoring and evaluation this year. The study conducted by our team investigated the sponsorship programme from 2017 through 2022.

For the monitoring report, we had seven objectives:

information available for the multicountry context and utilise it for the equity-based programme design.

For the report, we surveyed 338 orphans and their guardians. Among those we surveyed, 87.5% were female and 12.5% were male. While this project has enhanced the lives of the beneficiaries, the report has highlighted some areas for improvement that Muslim Hands needs to consider. One of the main conclusions that was highlighted was that the cash assistance was not a sufficient amount in all locations. As countries worldwide face economic difficulties, one price structure for all orphans may negatively impact the quality of programmes in some of the countries we work in.

Furthermore, our orphans sponsored by the programme are often too scattered across large areas for the project staff to have any negotiating power with the local schools, due to the minimal number of sponsored orphans studying at any one school. This makes monitoring, coordination, and mobilisation difficult and costly. Another observation was that we publish profiles of orphans on the Muslim Hands website. This action can be classified as a safeguarding risk.

While this project solely focuses on orphans, Muslim Hands needs to consider including and supporting beneficiaries that are refugees and IDPs.

Provisions for additional support must be included for orphans struggling with their education. Furthermore, Community members need to be involved at the program design level, as most respondents stated they were only informed once the projects were initiated. Another of our action points is the orphans sponsored by the program are often too scattered for the project staff. Moving forward, we aim to strategise, review, and manage in order to resolve these issues.

BACK TO CONTENTS

33

BREAD FACTORY MONITORING

The monitoring of our bread factory in Yemen gathered data about the project’s effectiveness and impact, whether the intervention was on track and if it could meet the objectives in the project proposal.

In the evaluation, we assessed whether the project was value for money, evaluated the relevancy, efficiency, effectiveness, impact and coherence of the implemented project in the targeted areas and highlighted strengths and weaknesses of the interventions and opportunities for further improvements. The evaluation covered three governorates, five bread factories and 23 distribution points.

Overall, the outcome of the evaluation was positive. The quality of the bread was to a required standard. All the surfaces (e.g., preparation surfaces, work benches, and chopping boards) were in good condition and properly cleaned and disinfected. And the factory’s equipment was regularly cleaned and maintained.

One of the challenges Muslim Hands faced during this project’s implementation was security risks. However, Muslim Hands worked closely with local communities and authorities to ensure that security risks were minimised, and to successfully implement this project.

BACK TO CONTENTS

34

LIVELIHOOD PROJECT MONITORING

Muslim Hands has been

supporting Malian women through several livelihood projects. Many of the women we have been helping are widows residing in the Bamako region.

In this monitoring report, we evaluated projects, including:

  1. Cash distributions for shop installations

  2. Kiosk distributions for shop installations

While the livelihood project was having a great impact on the women who received support, there were areas for improvement.

The report found that 59% of the Households have said that their situations across multiple dimensions of poverty have improved after the project support. However, one of our main shortcomings was that the overall management, oversight and implementation of the project did not match the project documentation.

One of the recommendations was that

the management and oversight of the projects from Muslim Hands’ head office needs to be improved and the management team in the UK needs to be more engaged with the project implementation, challenges and results.

Another recommendation was that the project designs should prioritise coordination with other stakeholders so that the beneficiaries can access additional information, support and benefits.

  1. Cutting, sewing and embroidery training

  2. Distribution of farming and agricultural tools to women farmers

BACK TO CONTENTS

35

Core Humanitarian Standard

The Core Humanitarian Standards (CHS) aim to showcase good humanitarian action. The CHS is there to help and support organisations design, implement, assess, improve, and recognise quality and accountability in assistance and programmes.

THE STRUCTURE OF THE CHS

----- Start of picture text -----
and people affected by the crisis.
• Supporting Quality Criteria.
1
• Actions to be undertaken to
Humanitarian
fulfill the Commitments 9 response is 2
• Organisational Responsibilities Resources are appropriate Humanitarian
and relevant
to support the consistent and managed and used response is
systematic implementation responsibly for effective and
their intend and
of the Key Actions timely
purpose
throughout the
8 3
organisation
Staff are supported Humanitarian
to do their job Communities response strengthens
effectively and are local capacities and
treated fairly and and people avoids negative
equitably effects
By applying the CHS affected
nine Commitment, staff
will have a benchmark on 7 by crisis 4
how best to operate. Humanitarian Humanitarian
actors response is based
continuously learn on communication,
Beneficiaries will know that and improve participation
they will get the assistance 6 5 and feedback
they require, and donors will Humanitarian
Complaints
have better insight into how response is are welcomed
coordinated and
their funding is being spent. and addressed
complementary
MUSLIM HANDS
A R
I M m
D
I
ND
P
•
p
A
A
T
••
C
a
S
R
N O
r
A RE
Y T t
RI H
y I
A
i
U
t T A
T
I
a
M
N
i I l
A
A
L i
N
N n
M
I
I
T
t
U
A a T
A
H
y
R
I
Y
E
m
R A
M
O N
C S
U u •
T
•
• A
H H
N
D
D
A
R
R
A
N N
D
D
•
N
• e E
A •
U
T
u
S C
E T
N O
e t
A R
C
E
c R r
I
R
H
A
N A a
U
n
T
I
l
M
E
N
e L i
A
A
t I
N
D
M
d
I
T
T
U
y
A
N
H
n Y
E IR
E e
R A
O N
P •
S
p
C
•
T
E
A
e
• N
D I
D
d I
DR A
N n
----- End of picture text -----

MUSLIM HANDS AND THE CORE HUMANITARIAN STANDARD

Muslim Hands priority is to ensure that we continue to meet the CHS commitments by putting individuals and communities at the centre of everything we do. CHS certification emphasises the importance of accountability and transparency - it certifies that our work is carried out to the highest standard.

Receiving a CHS will showcase that we are designing programmes that create a positive impact on individuals and communities.

Muslim Hands was recently audited by an independent consultant - who assessed six offices - Pakistan, Bangladesh, Niger, Gambia, Yemen, and Somalia - along with our headquarters in the UK.

While the independent consultant has concluded - that there are areas for improvement – he highlighted many positive aspects.

As the progress is at such an early stage, Muslim Hands has taken many steps to ensure that we meet the requirement of Core Humanitarian Standard.

BACK TO CONTENTS

36

Sustainable Development Goals

WHAT ARE SUSTAINABLE DEVELOPMENT GOALS?

WHAT DO THEY MEAN FOR OUR WORK?

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 free from poverty and hunger and safe from the worst effects of climate change.

Muslim Hands aim 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.

----- Start of picture text -----
17. PARTNERSHIPS
FOR THE GOALS 1. NO POVERTY
16.PEACE,
JUSTICE & STRONG
INSTITUTIONS
3. GOOD HEALTH
15. LIFE & WELLBEING
ON LAND
14. LIFE 4. QUALITY
BELOW WATER EDUCATION
13. CLIMATE 5. GENDER
ACTION EQUALITY
12. RESPONSIBLE
CONSUMPTION
6. CLEAN WATER
& PRODUCTION
& SANITATION
7. AFFORDABLE
11. SUSTAINABLE
& CLEAN ENERGY
CITIES &
COMMUNITIES
10. REDUCED 8. DECENT WORK
INEQUALITIES & ECONOMIC
9. INDUSTRY, GROWTH
INNOVATION
& INFRASTRUCTURE
----- End of picture text -----

BACK TO CONTENTS

37

HIPD Partnerships

2022 UNITED NATIONS CLIMATE CHANGE CONFERENCE (COP27)

In November 2022, Muslim Hands had the privilege of attending the 27th session of the Conference of the Parties of the United Nations Framework Convention on Climate Change (COP 27). Held in the Egyptian city of Sharm El Sheikh, this gathering brought together over 100 heads of state. We actively participated in the event, seizing the opportunity to contribute to discussions and collaborate with likeminded individuals and organisations. Our presence at COP 27 signifies our unwavering commitment to combatting climate change and striving for a sustainable future.

PAKISTAN

VOCATIONAL TRAINING

In 2022, Muslim Hands finalised a threeyear project agreement with Schneider Foundation and the Technical Education and Vocational Training Association (TEVTA) Sindh and Balochistan. The primary objective of this agreement is to rehabilitate and upgrade a total of 40 electrical training laboratories located across the provinces of Sindh and Balochistan. Through this joint effort, we aim to enhance the quality and accessibility of educational facilities in these regions, ultimately benefiting students and promoting educational advancement.

BASIC UNITS

In collaboration with the Turkish Cooperation and Coordination Agency (TIKA), Muslim Hands was able to utilise a refurbished basic health unit generously donated by TIKA, along with one month’s supply of medicines. The operation and maintenance of this unit were effectively managed by integrating it into Muslim Hands’ core health programme. The total value of these units amounted to PKR 30,000,000, equivalent to USD 150,000. Through this initiative, Muslim Hands and TIKA combined their efforts to maximise the impact of the health unit and reach 500 beneficiaries with vital medical care.

TURKEY

In 2022, we maintained our strong partnerships with esteemed organisations, such as Diyanet Foundation, Doctors Worldwide and Hayrat Aid. Collaborating with Diyanet Foundation, we successfully executed impactful WASH projects in Pakistan, along with food distribution initiatives valued at over £1.6 million. Additionally, through our partnership with Hayrat Aid, we provided clean water and food in Gambia, Mali, Niger, Sri Lanka and Pakistan.

Furthermore, our partnership with Doctors Worldwide enabled us to initiate vital WASH projects and conduct eye camps across Pakistan, Mali and Niger. These efforts directly benefited over 9,000 individuals, ensuring improved access to clean water and essential eye care services.

BACK TO CONTENTS

38

Financial Review

This year, Muslim Hands raised £33.1m – the sum of £22.6m was donated for nonemergencies, £3.1m for emergencies and £4.2m coming from Gift Aid. The total income received in 2022 was down from the level of income raised in the previous year (£37.1m).

2022
2021
2020
Donations from Supporters
£m
£m
£m
Donations for Non-Emergencies
22.6
29.4
23.5
Donations for Emergencies
6.3
3.1
4.8
Gift Aid
4.2
4.6
4.1
Total Income
33.1
37.1
32.4

The charity invested 3.7m to generate 28.9m.

The net return was 25.2m.

The charity invested 13% to generate a return of 87%.

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.

BACK TO CONTENTS

39

Financial Review

During the year Muslim Hands spent over £35.4 m. 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.

2022
2021
2020
£m
£m
£m
Cost of generating funds
3.7
2.8
2.9
Charitable Activities
26.7
26.2
21.4
Where Most Needed
1.4
2.1
2.9
Orphans
3.1
2.7
2.1
Education
4.5
4.5
3.3
Health
0.8
1.1
1.3
Emergency
5.0
3.5
2.6
WASH
6.2
5.0
4.8
Food
4.1
5.7
3.4
Masjids
1.6
1.6
1.0
Support Costs and Staff
5.0
4.4
3.3
Total Resources Expended
35.4
33.5
27.6		 2022
2021
2020
£m
£m
£m
Cost of generating funds
3.7
2.8
2.9
Charitable Activities
26.7
26.2
21.4
Where Most Needed
1.4
2.1
2.9
Orphans
3.1
2.7
2.1
Education
4.5
4.5
3.3
Health
0.8
1.1
1.3
Emergency
5.0
3.5
2.6
WASH
6.2
5.0
4.8
Food
4.1
5.7
3.4
Masjids
1.6
1.6
1.0
Support Costs and Staff
5.0
4.4
3.3
Total Resources Expended
35.4
33.5
27.6		 2022
2021
2020
£m
£m
£m
Cost of generating funds
3.7
2.8
2.9
Charitable Activities
26.7
26.2
21.4
Where Most Needed
1.4
2.1
2.9
Orphans
3.1
2.7
2.1
Education
4.5
4.5
3.3
Health
0.8
1.1
1.3
Emergency
5.0
3.5
2.6
WASH
6.2
5.0
4.8
Food
4.1
5.7
3.4
Masjids
1.6
1.6
1.0
Support Costs and Staff
5.0
4.4
3.3
Total Resources Expended
35.4
33.5
27.6
£m £m
Cost of generating funds
Charitable Activities
Where Most Needed
Orphans
Education
Health
Emergency
WASH
Food
Masjids
Support Costs and Staff		 3.7
26.7
1.4
3.1
4.5
0.8
5.0
6.2
4.1
1.6
5.0		 2.8
26.2
2.1
2.7
4.5
1.1
3.5
5.0
5.7
1.6
4.4

BACK TO CONTENTS

40

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, £5.0 m was invested in the organisation allowing the charity to effectively use the funds and operate with accountability.

In 2022 the charitable activities expended were £26.7 m.

The following table provides some details of the various programmes we implement, the number of beneficiaries supported and achievements in respect of each project category: -

During programmes implementation there are several factors that can affect whether a project achieves its targets. This includes availability of funding, socioeconomic conditions of the donors or target beneficiaries and interventions by the respective government institutions, UN Agencies and the other humanitarian actors focusing on the same areas. 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 program also support the target beneficiaries.

THEMATIC
Emergency
Education
WASH
Health
Food
Livelihoods
FIGURES
3,574,485
83,026
2,104,899
443,418
1,769,550
54,250
DETAILS
Projects include our Syria housing project
and Yemen Bread factory. We also provided
emergency intervention in Afghanistan and
India Kashmir.
Our MH School of Excellence, Model
School, religious educational and
orphans programmes.
Tube wells, boreholes, water fltration units,
rain harvesting and Girl-friendly toilet.
Our Motherkind Clinic in Afghanistan and
Somalia. Basic health units, Cataract Eye
Surgery and Covid intervention in India.
Qurbani and Ramadan. Our Open Kitchen in
Nottingham and Hounslow.
Sewing Machine, Hope shop Project and
chicken farming project.

BACK TO CONTENTS

41

PRINCIPAL SOURCES OF FUNDING

The principal source of funding is from individual donors from within the UK

who respond to appeals via mail, email, social media, 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”) held by the charity should not be less than £600,000. 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. 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 it 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.

BACK TO CONTENTS

42

NATURE OF FUNDS

The trustees confirm that, on a fund-byfund basis, the assets are available and are adequate to fulfil the obligations of the charity.

GRANT MAKING POLICY

During the period the Charity awarded grants totalling £26.7m (2021: £26.2m).

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.

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 a Al Rayyan Deposit account to ensure the best return for the Charity.

GOING CONCERN

As a response to the financial risks posed by the Cost of Living Crisis MH began to scenario plan it’s cashflow and the variation in impact of increased and reduced cash scenarios.

Furthermore, the charity increased it’s 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 2022 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.

BACK TO CONTENTS

43

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 6 December 1993.

In 2004, Muslim Hands changed its structure, registering as a company limited by guarantee at Companies House in England on 22 March 2004 and with the Charity Commission on 22 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 deregistered on 8 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 are legally responsible for the charity and set the strategic direction with operational matters delegated to the Senior Management Team. The Senior Management Team are supported by dedicated staff. The current Senior Management Team comprises of Syed Lakhte Hassanain as CEO with Shahid Bashir, Tariq Nasir, Shakil Sidat, Yasrab Shah, Munawar Patel, Irfan Khan 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.

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.

The charity trustees have now established a Programmes Committee, an Audit Committee and a Fundraising committee for better control and governance. The Programmes Committee is a subcommittee of the board and provides assurance to the board that Muslim Hands has an effective programmes strategy in place with appropriate systems that will ensure the delivery of the strategic aims.

The Audit Committee’s general objectives are to review the audited financial statements of Muslim Hands and recommend them to the board. In addition, to review Muslim Hands risk register and reports on internal controls and its compliance.

The Fundraising Committee provides expert insight and assurance to the Board that Muslim Hands has an effective Fundraising Strategy in place with appropriate risk management.

The committees are formed of two external members and one MHUK trustee who is also the Committee Chair. Muslim Hands has been dependant on volunteer support in order to fulfil its objectives, vision and mission and to carry out its activities. The trustees would like to thank all those who have volunteered their time to Muslim Hands.

BACK TO CONTENTS

44

VISION AND MISSION

MUSLIM HAND’S 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.

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 manner”.

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. themselves, their family and their community’.

The trustees review the aims, objectives and activities of the charity each year. This report will look at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity’s aims, objectives and activities remain focused on its stated purposes.

Our aims and objectives are a reflection of our beliefs. At Muslim Hands, we believe that:

BACK TO CONTENTS

45

Public Benefit Statement

All our charitable activities focus on furthering our charitable objectives for the public benefit. The section of this report entitled Objectives, Vision and Mission 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: 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:

BACK TO CONTENTS

46

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.

During 2022, the trustees identified the following key risks and the measures taken to address them:

Risk
Management Actions
Programmes
not delivered
as expected by
MH standards
• Due Diligence Famework.
• 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 expectations.
• Field monitoring visits are regularly undertaken to verify the delivery of aid.
Violation or abuse
of benefciaries
and safeguarding
• Muslim Hands’ safeguarding policies for children and vulnerable adults and
safeguarding code of conduct.
• 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
and operational
commitments due
to emerging cost
of living crisis
• Board oversight of spending in advance 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.
• Budget Re-forecasting to ensure changing fnancial conditions are well managed.
Cyber Security
• GDPR policies including Data Breach Action Plan, data breach form in place.
• Monitoring GDPR compliance.
• Outsourced DPO service by Bulletproof Ltd.
• Single Sign On and Multi Factor Authentication with controlled conditional access.
• Enabled Encryptions deployed over SCCM.
• Maintaining third-party cyber security defence and anti-virus software.
• Timely patches for server and desktop systems.
• Monitoring of IT controls.
• Robust IT Policies.
• Adopting VLAN.
• Encryption-in-transit protects both systems and data.
• Procedures for penetration testing and system security checks.
• Business Continuity and Disaster Recovery Planning.
Strategic
Alignment of
Programmes
• Project Toolkit checklist
• 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
• Project Risk Management undertaken for all projects

BACK TO CONTENTS

47

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 was

provided by BDO LLP. They support with the risk register and carry out a risk-based 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.

BACK TO CONTENTS

48

Plans for the Future

INCOME DIVERSIFICATION

Muslim Hands has continued to grow steadily since its inception, reaching an increasing number of disadvantaged 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 restructure and internal development, stronger emphasis on forming partnerships with grass-roots level delivery partners overseas and at home and increasing our income from trusts and institutional funders. Muslim Hands’ educational and training projects are a long standing and recognised strength, and they will be the primary area of focus going forward.

INHOUSE SYSTEMS

Muslim Hands is continuing the development of the next generation, web-based CRM, financial management and programmes systems to 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 begun its new strategy following the success of its previous strategy.

The strategy has focused on continuing the success story of Muslim Hands as it embarks on its next phase of growth in serving those in need both abroad and here in the UK.

UK PROGRAMMES

Muslim Hands is planning to expand its UK Open Kitchen programme to more towns and cities over the next three years.

The interest that our kitchens have generated from supporters and the impact they have had on the local communities they serve has demonstrated their value.

BACK TO CONTENTS

49

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 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 stated 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 for taking reasonable steps towards 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 18/09/2023 and signed on their behalf by

SL Hassanain. Trustee and Chairman

BACK TO CONTENTS

50

Independent Auditor’s Report

OPINION

We have audited the financial statements of Muslim Hands (the ‘charitable company’) for the year ended 31 December 2022 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).

In our opinion, the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on 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.

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.

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:

and

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

BACK TO CONTENTS

51

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:

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:

BACK TO CONTENTS

52

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance 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.

Jonathan Orchard (Senior statutory auditor)

for and on behalf of Sayer Vincent LLP, Statutory Auditor

Date: 22 September 2023

108-114 Golden Lane, LONDON, EC1Y 0TL

Invicta House,

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.

BACK TO CONTENTS

53

Statement of Financial Activities

Muslim Hands

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

For the year ended 31 December 2022

----- Start of picture text -----
2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations 13,061,356 20,075,988 33,137,344 12,683,898 24,415,916 37,099,814
Bank Interest 46,809 - 46,809 29,328 - 29,328
Total income 13,108,165 20,075,988 33,184,153 12,713,226 24,415,916 37,129,142
Expenditure on:
Raising funds 3 3,746,356 - 3,746,356 2,840,369 - 2,840,369
Charitable activities
Grants payable and operational 3 4,970,576 26,632,587 31,603,163 4,450,483 26,179,013 30,629,496
Total expenditure 8,716,932 26,632,587 35,349,519 7,290,852 26,179,013 33,469,865
Net income / (expenditure) before net gains /
4,391,233 (6,556,599) (2,165,366) 5,422,374 (1,763,097) 3,659,277
(losses) on investments
Net gains / (losses) on investments - - - - - -
Net income / (expenditure) for the year 4 4,391,233 (6,556,599) (2,165,366) 5,422,374 (1,763,097) 3,659,277
Transfers between funds 12 (6,871,111) 6,871,111 - (2,571,162) 2,571,162 -
Net income / (expenditure) before other
(2,479,878) 314,512 (2,165,366) 2,851,212 808,065 3,659,277
recognised gains and losses
Gains / (losses) on revaluation of fixed assets - - - - -
Actuarial gains / (losses) on defined benefit - - - - - -
Other gains / (losses) - - - - - -
Net movement in funds (2,479,878) 314,512 (2,165,366) 2,851,212 808,065 3,659,277
Reconciliation of funds:
Total funds brought forward 8,167,147 12,200,353 20,367,500 5,315,935 11,392,288 16,708,223
Total funds carried forward 5,687,269 12,514,865 18,202,134 8,167,147 12,200,353 20,367,500
----- End of picture text -----

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 funds are disclosed in Note 13 to the financial statements.

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

All income and expenditure derives from continuing activities.

BACK TO CONTENTS

54

Balance Sheet

Muslim Hands

Balance sheet

----- Start of picture text -----
Company no. 05080486
As at 31 December 2022
2022 2021
Note £ £ £ £
Fixed assets:
Tangible assets 7 1,266,163 1,249,679
1,266,163 1,249,679
Current assets:
Debtors 8 902,473 1,338,202
Short-term Deposits 2,822,629 2,778,553
Cash at bank and in hand 14,397,340 16,356,599
18,122,442 20,473,354
Liabilities:
Creditors: amounts falling due within one year 9 (1,186,471) (1,319,519)
Net current assets 16,935,971 19,153,835
Total assets less current liabilities 18,202,134 20,403,514
Creditors: amounts falling due after one year 10 - (36,014)
18,202,134 20,367,500
The funds of the charity: 12
Restricted income funds 12,514,865 12,200,353
Unrestricted income funds 5,687,269 8,167,147
-
Total charity funds 18,202,134 20,367,500
----- End of picture text -----

Approved by the trustees on 18 September 2023 and signed on their behalf by

Syed Lakhte Hassanain Trustee

BACK TO CONTENTS

55

Statement of Cash Flows

Muslim Hands

Statement of cash flows

For the year ended 31 December 2022

Note
£
£
13
(1,769,666)
(115,851)
(115,851)
(29,666)
(29,666)
(1,915,183)
19,135,152
14
17,219,969
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net cash provided by / (used in) financing activities
Change in cash and cash equivalents in the year
2022
Repayments of borrowing
Cash flows from operating activities
Cash flows from financing activities:
Net cash provided by / (used in) investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Purchase of fixed assets		 £
£
2,455,694
(42,865)
(42,865)
(36,550)
(36,550)
2,376,279
16,758,873
19,135,152
2021

BACK TO CONTENTS

56

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2022

3a
Grants payable (Note 2)
Staff costs (Note 5)
Premises costs
Office costs
Professional fees
Publications, advertising and postage
Audit and accountancy
Trustees expenses
Governance costs
Total expenditure 2022
Total expenditure 2021
Analysis of expenditure (current year)		 Cost of raising
funds
£
-
1,241,700
8,947
61,041
26,912
2,379,109
-
-
3,717,709
28,647
3,746,356
2,840,369		 Grants payable
and
operational
programmes
£
27,366,694
1,947,977
161,045
1,098,742
484,424
-
-
-
31,058,882
544,279
31,603,161
30,629,496		 Governance
costs
£
-
449,616
8,947
56,662
26,912
-
26,409
4,380
572,926
(572,926)
-
-		 2022 Total
£
27,366,694
3,639,293
178,939
1,216,445
538,248
2,379,109
26,409
4,380
35,349,517
-
35,349,517
-		 2021 Total
£
26,690,997
3,027,364
167,444
1,104,201
542,765
1,915,294
21,800
-
33,469,865
-
33,469,865

Costs allocation includes an element of judgement and the Charity had had to consider the cost benefit of detailed calculations and record keeping. All categories have been allocated on a basis consistent with the use of resources.

3b Analysis of expenditure (prior year)

Grants payable (Note 2)
Staff costs (Note 5)
Premises costs
Office costs
Professional fees
Publications, advertising and postage
Audit and accountancy
Trustees expenses
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of raising
funds
£
-
807,807
8,372
55,210
27,138
1,915,294
-
-
2,813,821
-
26,548
2,840,369
2,996,745		 Grants payable
and
operational
programmes
£
26,690,997
1,801,115
150,700
993,781
488,489
-
-
-
30,125,082
-
504,414
30,629,496
24,656,818		 Governance
costs
£
-
418,442
8,372
55,210
27,138
-
21,800
-
530,962
-
(530,962)
-
-		 2021 Total
£
26,690,997
3,027,364
167,444
1,104,201
542,765
1,915,294
21,800
-
33,469,865
-
-
33,469,865
-		 2020 Total
£
21,851,980
2,773,464
163,268
932,413
239,990
1,655,978
35,520
950
27,653,563
-
-
27,653,563

BACK TO CONTENTS

57

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2022

----- Start of picture text -----
|||| |---|---|---| |4|Net income / (expenditure) for the year| |This is stated after charging / (crediting):| |2022|2021| |£|£| |Auditors' remuneration (excluding VAT):| |Audit|26,409|21,800| |Under-provision in the prior year|-|-| |Depreciation of tangible fixed assets|93,018|94,810|

----- End of picture text -----

Staff costs were as follows:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Salaries and wages|3,208,241|2,686,066| |Social security costs|326,202|257,933| |Employer's pension contributions to defined contribution scheme|104,850|83,228| |3,639,293|3,027,227| |The average number of employees (on a head count basis) analysed by function was:| |2022|2021| |No.|No.| |Direct charitable operations|46|53| |Fundraising and publicity|58|49| |Management and administration of the Charity|9|9| |113|111|

----- End of picture text -----

The charity operates a defined contribution pension scheme: 2022 £104,850 (2021: £83,229) has been charged in the Statement of Financial Activities during the year in relation to this pension scheme.

The total employee benefits including pension contributions and national insurance of the key management personnel were £705,608 (2021: £613,167).

There were six employees with emoluments between £60,000 - £69,999 and three above £70,000 (three above £60,000 in 2021). During the period Syed Lakhte Hassanain, a Trustee of the Charity, was paid £74,315 (2021: £65,805) for his services to the charity as an employee. These payments are approved by the Charity Commission.

At the year end the Charity was owed £2,320 (2021: £4,070) by Syed Lakhte Hassanain.

During the year £4,380.09 (2021 £313.46) of expenses for reimbursement of travel and subsistence in connection with the Charity's business were paid to 4 Trustees (2021: 2 Trustees).

6 Taxation

No corporation tax has been provided in the financial statements as Muslim Hands is a registered charity and is within the exemption granted by Section 505 of the Income and Corporation Taxes Act 1988.

BACK TO CONTENTS

58

Notes to the Financial Statements

Notes to the financial statements

Notes to the financial statements
For the year ended 31 December 2022

7
Cost
Accumulated depreciation
Net book value
Tangible fixed assets
Eliminated on disposal
At 31 December 2022
At 31 December 2022
At 1 January 2022
Charge for the year
At 1 January 2022
Additions in year
Disposals in year
At 31 December 2022
At 31 December 2021		 Freehold land &
buildings
£
1,418,683
-
-
1,418,683
295,537
28,374
-
323,911
1,094,772
1,123,146
Computer &
office equipment
£
652,930
74,374
(545,766)
181,538
582,448
44,124
(545,766)
80,806
100,732
70,482
Fixtures and
fittings
£
361,824
41,477
(261,995)
141,306
312,123
20,520
(261,995)
70,648
70,658
49,701
Motor Vehicles
12,840
-
(12,840)
-
6,490
-
(6,490)
-
-
6,350		 Total
£
2,446,277
115,851
(820,601)
1,741,527
1,196,598
93,018
(814,251)
475,365
1,266,163
1,249,679

Included in the net book value of freehold land and buildings of £1,094,772 (2021: £1,123,146) is £nil relating to non-depreciated land.

8
Debtors
Prepayments and accured income
Other debtors		 2022
£
792,494
109,980
902,474		 2021
£
1,306,141
32,061
1,338,202

All of the charity's financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in notes 10 and 11 below.

Trade creditors
Other creditors
Accruals and deferred income
Bank loans		 2022
£
-
185,091
892,162
109,217
1,186,470		 2021
£
35,957
277,717
1,005,845
-
1,319,519

BACK TO CONTENTS

59

Notes to the Financial Statements

Notes to the financial statements

Notes to the financial statements
For the year ended 31 December 2022

10
The bank loan is repayable as follows:
After five years
Bank loans
Between one and two years
Between two and five years
Within one year
Creditors: amounts falling due after one year		 2022
£
-
-
-
-
-
-		 2021
£
36,014
35,957
36,014
-
-
71,971

The bank loan is secured by a legal charge over the freehold property to which it relates. The loan is repayable in monthly instalments and bears interest at 2.5% over base rate.

11 Analysis of net assets between funds 2022

Analysis of net assets between funds 2021
Tangible fixed assets
Net current assets
Long term liabilities
Net assets at 31 December 2021
Tangible fixed assets
Long term liabilities
Net current assets
Net assets at 31 December 2022		 General
unrestricted
£
1,266,163
4,421,106
-
5,687,269
General
unrestricted
£
1,249,679
6,953,482
(36,014)
8,167,147
Restricted
£
-
12,514,865
-
12,514,865

Restricted
£
-
12,200,353
-
12,200,353		 Total funds
£
1,266,163
16,935,971
-
18,202,134
Total funds
£
1,249,679
19,153,835
(36,014)
20,367,500

BACK TO CONTENTS

60

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2022
12a Movements in funds 2022
Theme
Opening Incoming Original Transfers Closing
Balance Funds Expenditure Balance
£ £ £ £ £ £
Children 34,725 32,318 - 42,054
 - 6,529 31,518
Education 273,993 304,671 - 4,496,529
 - 2,440,008 (1,477,857)
Elderly 17,135 29,276 - 7,260
 - - 39,151
Emergency 3,567,279 5,641,469 - 5,024,681
 - - 646,560 3,537,507
Environment 1,056,776 168,814 - 216,049
 - 9,255 1,018,796
Food 883,662 2,413,913 - 4,056,727
 - 792,039 32,887
General 313,450 713,287 - 151,007
 - - 2,193,066 (1,317,336)
Health 90,070 438,809 - 832,965
 - 171,776 (132,310)
Livelihoods 107,352 365,963 - 760,572
 - - (287,257)
Mosques 1,798,090 1,533,084 - 1,613,049
 - 47,364 1,765,489
Orphans 1,633,864 4,000,993 - 3,080,097
 - - 669,640 1,885,120
Shelter 1,219,467 158,044 - 121,302
 - - 1,256,209
WASH 1,204,493 4,275,347 - 6,230,295
 - 42,295 (708,160)
Grand Total 12,200,356 20,075,988 (26,632,587) - 6,871,111 12,514,868
Unrestricted Reserves 8,167,144 13,108,165 (8,716,932) - (6,871,111) 5,687,266
Total 20,367,500 33,184,153 (35,349,519) - - 18,202,134

BACK TO CONTENTS

61

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2022
12b Movements in funds 2021
Theme
Opening Incoming Original Wages Transfers Closing
Balance Funds Expenditure Balance
£ £ £ £ £ £
Children 110,240 30,728 - 110,449
 - 4,206 34,725
Education 312,393 427,733 - 3,955,763
 - 3,489,630 273,993
Elderly 28,850 25,165 - 36,880
 - - 17,135
Emergency 4,058,767 3,123,118 - 3,452,750
 - - 161,856 3,567,279
Environment 790,768 266,008 - 99,669
 - 99,669 1,056,776
Food 747,330 3,875,891 - 5,526,914
 - 1,787,355 883,662
General 902,437 2,826,669 - 1,778,026
 - - 1,637,630 313,450
Health 117,181 441,746 - 1,082,679
 - 613,822 90,070
Livelihoods 136,741 243,918 - 293,308
 - 20,001 107,352
Mosques 1,365,631 2,901,792 - 1,528,989
 - - 940,344 1,798,090
Orphans 1,881,475 4,182,066 - 2,538,724
 - - 1,890,953 1,633,864
Shelter 272,140 1,635,996 - 784,113
 - 95,444 1,219,467
WASH 668,336 4,435,087 - 4,990,748
 - 1,091,818 1,204,493
Grand Total 11,392,289 24,415,917 (26,179,012) - 2,571,162 12,200,356
Unrestricted Reserves 5,315,934 12,713,225 (7,290,853) - (2,571,162) 8,167,144
Total 16,708,223 37,129,142 (33,469,865) - - 20,367,500

Purposes of restricted funds

The Restricted Fund contains funds restricted to a particular location and a group of up to thirteen funds restricted to each location. These funds include Emergencies, Orphans, Education, Elderly, Livelihoods, Food, Health, Safe Water, Shelter, Field, Mosque and Environment.

The Restricted Funds received by donors are used on charitable projects within the restrictions provided by the donors. These funds are utilised within the year the are received for projects within the location and theme restricted by donors.

13
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by / (used in) operating activities
Reconciliation of net income / (expenditure) to net cash flow from operating activities		 2022
£
(2,165,366)
93,018
435,729
(133,048)
(1,769,667)		 2021
£
3,659,277
94,810
(378,679)
(919,715)
2,455,693

BACK TO CONTENTS

62

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2022

14
Analysis of cash and cash equivalents
Cash at bank and in hand
Short term deposits
Total cash and cash equivalents		 At 1 January
2022
£
16,356,599
2,778,553
19,135,152
Cash flows
£
(1,959,259)
44,076
(1,915,183)		 Other changes
£
-
-
-		 £
14,397,340
2,822,629
17,219,969
At 31
December
2022

15 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Over five years (Cancellable)
Less than one year
One to five years		 2022
2021
£
£
65,000
65,000
130,000
195,000
-
-
195,000
260,000
Property

16 Related party transactions

The Charity works in close co-operation with other Muslim Hands charities worldwide. The relationship of these charities to Muslim Hands in the UK is described in Note 2.

Muslim Hands in the UK has common trustees with Muslim Hands Pakistan, Bangladesh, Yemen and Iraq. Muslim Hands in the UK also has 2 common trustees with Muslim Hands Niger, Mali, Mauritania, Malawi, Sri Lanka, Indonesia, Afghanistan, Somalia, and Nigeria. Muslim Hands in the UK also has one common trustee with Muslim Hands France, South Africa, USA and Canada. Grants made to these charities during the year are disclosed in note 2 of these accounts. M N Syed the son of Syed Lakhte Hassanain, a Trustee of the Charity, is employed by Muslim Hands and was paid a salary of £31,715 for the period (2021: £28,501). The Chairman's sons also employed were H Syed - paid £4,430 (2021:£1,213), and MH Syed - paid £14,592 (2021:£9,436)

Tariq Nasir is a governor of Figtree Primary School which receives a grant of £17,000 per annum.

Dr Musharraf Hussain is a Senior Manager in Karimia Institute which received a grant of £59,866 in the year.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

17 Ultimate controlling party

The trustees do not consider there to be an ultimate controlling party.

18 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

BACK TO CONTENTS

63