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← Muslim Hands

2024-12-31-accounts

REPORT 2024

ANNUAL REPORT AND FINANCIAL STATEMENTS for the year ended 31 December 2024

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Contents

MONITORING SECTION

2

Message from the Chairman

Assalamu Alaikum,

What a tumultuous year it was. The world witnessed millions of people navigating conflict, war, climate change, and food insecurity. For the past 30 years, Muslim Hands has been on the frontlines, saving lives and easing the suffering of millions, many of whom are too often unheard.

Throughout 2024, we remained on the ground in Gaza and Sudan, we provided essential food, water, shelter, and medicine. The global food crisis continued to worsen, leaving many families uncertain where their next meal would come from. Currently, 343 million people are facing acute hunger across 74 countries. Of these, 65 percent live in fragile, conflict-affected, or war-torn regions. Climate change is a leading cause of rising global hunger, destroying lives, crops, and livelihoods. In addition, slow global growth and mounting economic pressures further exacerbate food insecurity.

Our bread factories across Syria, Yemen, and other food insecurity projects, such as Qurbani, Iftar and Afghanistan Tandoori combated global hunger across multiple locations.

Meanwhile, people across Britain continue to feel the effects of the cost-of-living crisis. Many families are struggling with debt and are unable to feed their children. In response to these growing crises, Muslim Hands opened our third Open Kitchen in Manchester to help ease the burden and support the local communities. When we opened Nottingham Open Kitchen in 2021, we served just 50 hot meals a day . Since the cost of living, that number has grown significantly. Currently, we now serve 130 hot meals every day. The Open Kitchen has become a vital part of the community seven days a week, and we continue working tirelessly to support its most vulnerable members.

As we reflect on our achievements and our remarkable impact, we remain steadfast in our commitment throughout 2025 to support those in need, combat global hunger, and empower the next generation through our work at Muslim Hands’ Schools.

None of this would be feasible without the generosity of our donors and supporters. Their continued kindness enabled us to reach millions of beneficiaries in 2024. With their unwavering support, we can expand our reach, widen our impact, and give a voice to those too often forgotten.

Wassalamu Alaikum,

Syed Lakthe Hassanain

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Legal and Administrative Information

Trustees and statutory directors

Trustees and statutory directors
Trustees and statutory directors Mohammad Amin-ul Hassanat Shah
Syed Lakhte Hassanain
Sahibzada Ghulam Jeelani
Saffi Ullah
Mohammad Arshad Jamil
Abdul Qudeir Khan
Iftikhar Ahmed
Sub-Committees to the Board Programmes Committee
Audit Committee
Fundraising Committee
Remuneration Committee
Nomination 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 Iftikhar Ahmed
Auditor Sayer Vincent LLP, Chartered Accountants and Statutory Auditors
110Golden Lane, London, EC1Y 0TG
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
Crown Agents Bank
Solicitors Freeth Cartwright LLP, Cumberland Court, Nottingham
Knights PLC, 84 Friar Lane, Nottingham

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INTRODUCTION :

What a year it has been. The year started on a sad note; we continued to witness the destruction and heartbreak in Gaza. Millions of our brothers and sisters are continuing to be impacted by the ongoing conflict.

While Gaza continued to dominate the news, other conflicts were quietly raging around the rest of the world. Conflict in Sudan was having a devastating and detrimental impact on millions of Sudanese. The Rohingya community continued to face persecution. Meanwhile, the countries across the Sahel region were facing political instability, escalating conflict and violence, and food insecurity, with the effects of climate change further exacerbating displacement.

703 million people in the world—almost one in ten don’t have clean water close to home, while 1.5 billion people in the world—almost one in five— don’t have a decent toilet. This year we have provided 1,631,307 beneficiaries with clean water and sanitation.

Muslim Hands school facilities grant children the right and opportunity to learn. Our education facilities have provided 151,244 students with free education. Our livelihood project is a way out of poverty, as it economically empowers widows, mothers, and the elderly. Our livelihoods project has supported 97,504 widows and mothers.

As we wrap up 2024 and enter 2025, Muslim Hands have quite a few new and exciting projects on the horizon, which will support millions of beneficiaries.

This is the 2024 annual report of the Muslim Hands trustees.

It is presented together with a Trustees’ Responsibilities Statement on page 42 , the Independent Auditor’s Report on page 43 and the financial statements for the year ending 31 December 2024 on page 44.

The financial statements for the year ending 31 December 2024 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.

Throughout the last year, our teams and partners assisted beneficiaries by providing urgent humanitarian relief. As 2024 concludes, we have helped 8,156,637 beneficiaries in 21 countries, supporting them during hardship and instability and giving them much-needed respite.

As we enter 2025, amid the increasing frequency of climate disasters, the rise in global hunger, and ongoing conflict and war, Muslim Hands remains committed to prioritising those requiring urgent humanitarian assistance and providing vital relief where it’s needed most.

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REVIEW OF MUSLIM HANDS’ ACHIEVEMENTS AND PERFORMANCE FOR 2024

In an increasingly complex world, strategic planning and unified efforts are more crucial than ever. Muslim Hands has consistently stood at the forefront of humanitarian initiatives, navigating adversity with resilience and determination.

Over the past year, we have faced both challenges and triumphs, each experience strengthening our resolve to pursue innovative, sustainable solutions that meet the evolving needs of those we serve. As we delve into this critical review, we embrace both our successes, and the lessons learned from setbacks.

Each experience, whether a breakthrough or a roadblock, provides valuable insights to refine our strategies and maximise our impact. Our commitment to transparency and accountability drives us to continually improve, ensuring that our interventions are both effective and enduring.

The path to a brighter future requires dedication, a culture of learning, and collective action. By leveraging innovative approaches and our deeprooted commitment to humanity, we can create a world where hope, dignity, and opportunity flourish for all. As we embark on this journey together, let us draw strength from our shared values and reaffirm our pledge to leave a lasting, positive impact on the lives of those in need.

Muslim Hands’ key priorities for the organisation include the following:

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FUNDRAISING \ REFS A

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Muslim Hands wants to thank its generous donors and hardworking volunteers for helping us raise money for causes across the globe and at home here in the UK.

Through events, partnerships, TV appeals and direct marketing activity we’ve connected thousands of donors to the causes they’re passionate about – from building wells in Pakistan, running lifesaving bread factories across Yemen to providing hot cooked meals in war torn Gaza.

As part of our membership with the Fundraising Regulator, we are committed to honest, transparent and respectful fundraising practices – and make sure our fundraisers, whether that be employees or volunteers, are trained on all the guidelines.

If you’ve donated to us recently or opted in to hearing from us at an event or via our website, you’ll occasionally hear from us – this could be via email, SMS, post or sometimes through a telephone call. We respect your rights to opt out from this type of contact at any time.

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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 339,215 beneficiaries Bangladesh 114,866 beneficiaries Gambia 11, 885 beneficiaries India 104,163 beneficiaries Indonesia 1,102 beneficiaries Kashmir (India) 100,0040 beneficiaries Kashmir (Pakistan) 1,409, 379 beneficiaries Lebanon 11,076 beneficiaries Malawi 11,153 beneficiaries Mali 292,559 beneficiaries

6,040 beneficiaries

Mauritania

Niger Pakistan Palestine Rwanda Senegal Somalia

Sri Lanka

Sudan

Turkey

United Kingdom

Yemen

48,310 beneficiaries 1,041,501 beneficiaries 3,029,621 beneficiaries 2,536 beneficiaries 15,540 beneficiaries 279,760 beneficiaries 96,028 beneficiaries 66,028 beneficiaries 106,673 beneficiaries 118,989 beneficiaries 928,903 beneficiaries

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. . 7 f At f a ; } RESPONSE \ / my bi ya n mil Amat me & [– Total Emergency Aid Beneficiaries] 3,358,156 EMERGENCY

This year, the world witnessed numerous conflicts that impacted millions of lives. While the devastation and heartbreak in Gaza grew, the ripple effects were felt in Lebanon and Yemen. Meanwhile, the people of Sudan were severely impacted by ongoing civil war.

Across the African continent, countries remained on the frontline of climate change and food insecurity, highlighting the urgent need for humanitarian assistance.

Throughout 2024, Muslim Hands and our partners provided emergency relief 3,358,156 beneficiaries. With many conflicts ongoing and millions facing the direct effects of climate change, our work is more vital than ever.

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GAZA

Since the conflict broke out in 2023, Muslim Hands has been working directly with our partners on the ground, supporting those whose lives were shattered by this war.

Muslim Hands has partnered with UN agencies to fund three large desalination plants at three UN schools in Gaza City, Rafah, and Dier al Balah. The Water for Life project ensured that safe drinking water was distributed to a large number of people in the chosen areas, including the most vulnerable, such as women, children, and the elderly.

WINTER IN GAZA

With our partners on the ground, Muslim Hands distributed vital aid to protect children from the harsh cold. In Gaza, we provided clothes and footwear kits to 19,500 children (aged 0-17). The kits supported the health and wellbeing of children. Each kit distributed included the following items for each age group:

COOKED MEALS

Muslim Hands has partnered with the World Food Programme (WFP) to provide hot and nutritious cooked meals throughout Gaza. These hot meals were provided to displaced people in informal shelters and camps, people with disabilities, women, and children. Each meal contains a minimum of 1,500 calories.

The Azabs are sheltering in the ruins of their family home. After being displaced multiple times, they finally returned here as a last resort. The sole breadwinner, Suliman, used to work at an ice cream factory, but since it was bombed the family relies solely on the bread and hot food provided by donors like you. Suliman’s four children, the youngest only six years old, now spend their days waiting in line for water and food.

‘There is no other choice. If they don’t, we will not eat,’ explains Suliman. The war exposed my family to the hunger and degradation that I worked my life to protect them from.’ Muslim Hands supported Azab and his family during Ramadan, during which they received food packs.

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LEBANON

Attacks on Lebanon in September 2024 displaced one million people across Lebanon.

Working with our partner on the ground, we distributed emergency kits to those who had lost their homes. Each emergency kit included food, clean water, hygiene products and blankets.

SUDAN

We were on the ground distributing humanitarian aid to families affected by the ongoing war. We have assisted 37,486 Sudanese beneficiaries, providing vital resources to the most vulnerable families.

We distributed food parcels, and non-food items in Madani locality (Al Jazeera State), Al Damar, Shandi, Atabra, and Khartoum States. Each food parcel contains 10 kg of wheat, 5 kg of sugar, 5kg of lentils, 5 kg of red beans, 5 kg of rice, 2 litres of oil, and 2 kg of salt.

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AFGHANISTAN

Afghanistan is facing a severe crisis, with 23.7 million people requiring urgent humanitarian aid. The country is plagued by decades of conflict, food insecurity, economic instability and the effects of climate change. According to the World Food Programme, 12.4 million Afghans face acute food insecurity.

The Tandoor project located in Kabul and nearby localities addressed the issue of food insecurity. Beneficiaries received ten loaves of flatbread daily. In total, we distributed 2,240,000 loaves of bread.

In July 2024, intense seasonal rains, heavy windstorms and flash flooding resulted in fatalities and infrastructure damage. Our flood emergency response provided food and non-food items to 15506 beneficiaries.

Zakira was one of the beneficiaries impacted by the flooding in Ghor Province. The heavy flood in their area brought significant challenges to Zakria’s life. The loss of his home and possessions, compounded by the inability to meet basic needs for his family, were primary hardships. The harsh weather conditions further exacerbated their difficulties, making survival more difficult. Additionally, the absence of financial support left them without resources for daily food consumption and other essential expenses, intensifying their struggle to rebuild and restart their lives. These combined factors created a daunting situation for Zakria and his family, requiring urgent assistance to overcome the aftermath of the devastating flood. Muslim Hands provided Zakria and his family with crucial resources, including a tent, carpet, and kitchen equipment.

These provisions offered them a sense of security and enabled them to meet their basic needs. The tent provided immediate shelter, protecting them from the harsh weather conditions and offering a semblance of privacy and normality. The carpet added a layer of comfort and warmth to their temporary living space, making it more habitable. Zakira was extremely grateful for the support he received from Muslim Hands: “your generous support fills us with hope during these challenging times. We are deeply grateful that you have not forgotten us in our hour of need. Your assistance is invaluable for our survival and ongoing recovery.”

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ACTION

THIRD PHASE OF THE RESOURCE RECOVERY CENTRE IN MIRPUR

The resource recovery centre in Mirpur is one of our environmentally friendly projects. Currently, in its third phase, the Solid Waste Management project collects solid waste directly from the beneficiaries’ doorsteps.

The objectives of door-to-door solid waste management services go beyond waste collection and transportation. The initiative aims to reduce waste generation, increase diversion from landfills, enhance public health, and safeguard the ecosystem. The project’s main goal is to foster a cleaner, healthier, and more sustainable environment for both communities and the planet.

From a socio-economic perspective, the project generates employment, elevates public sanitation standards, increases property values, and empowers communities. Additionally, the doorto-door service aims to enhance the segregation process for compost formation, diminish greenhouse gas emissions, and follow the principles of a circular economy. The waste is collected thrice a week in summer and twice weekly in winter through specialised vehicles.

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ACTION

DEVELOPMENT OF GREEN SOCIETY IN PAKISTAN

Our innovative, climate-friendly project aims to foster a greener society in Mirpur.

This initiative uses the Miyawaki method to regenerate the area, a technique that involves planting native species that naturally occur in the region to create a diverse forest ecosystem. The project will increase vegetation cover by planting fruit bearing trees such as sweet lime, lemon, plum, and persimmon.

Ansar is one of the beneficiaries supported by this project. He told our team.

“Our family can now access to fresh, nutritious produce. Planting the fruit trees has significantly improved our diet, ensuring we receive essential vitamins and minerals for optimal health. The fruit harvest has also reduced our reliance on purchased groceries, saving us valuable resources. Moreover, this project has opened up new economic opportunities. We can now sell our excess produce at local markets, generating a steady income stream. This has enabled us to break the cycle of poverty, invest in our children’s education, and improve our overall wellbeing.”

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Pat) BEEKEEPING FOR WOMEN IN SYRIA

Bees play a crucial role in pollinating over 70% of crops, making them an integral part of Earth’s ecosystems. With global bee populations threatened by unethical farming practices, climate change and excessive use of agrochemicals, this beekeeping project ensures bees are protected while providing communities with livelihood opportunities.

Through this project, three families were provided with beekeeping kits, with each family receiving 13 beehives, 1,500 bees, two beekeeping suits, and two smokers. The beneficiaries were selected based on a set of criteria developed by the monitoring and evaluation team. We prioritised the poorest families, those affected by the earthquake and living in camps, those with previous experience in beekeeping, and those headed by women.

temperature is moderate and suitable for beekeeping. The selected beneficiaries already had experience in beekeeping, but because of the earthquake in Syria in February 2023, they lost their bees after their homes and everything they owned were destroyed. Since then, they have had no source of income to support themselves. Thanks to this intervention, they can get back on their feet by continuing with their livelihood.

“We give so much gratitude to the donor for this project. This was our main business before the earthquake however we then lost it all. But the donor has now come and compensated the loss. May Allah reward you.” - Beneficiary

The project was implemented in the Darkush area in Idlib, one of the mountainous areas where the

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SUPPORTING SOMALI FARMERS

We are working with local communities in Somalia that have been directly impacted by drought. The project aims to facilitate the resettlement and rehabilitation of displaced Somalis by restoring their livelihoods, enhancing resilience to future environmental challenges, and promoting selfsufficiency.

This project comprises of two main components: restocking and resettling. Restocking involves providing livestock to help communities rebuild their herds, while resettling focuses on relocating communities to areas with better access to essential resources. These approaches are designed to combat food insecurity, increase income and strengthen resilience in the face of both environmental and social challenges.

The drought has had a devastating impact on Aamina’s life: We lost the farm, nearly 40 camels, and 200 shoats,” she recalls. With so much gone, the family’s livelihood has been severely impacted, leaving them to rely on whatever small resources they can manage. Aamina shares that they moved from place to place, always searching for better pastures and water. They also use underground water reservoirs to store water, but these reserves don’t last long, especially during extreme drought. “We have nothing,” Aamina says. “With the children and their father unwell, support from Muslim Hands was greatly appreciated. The project has offered much-needed respite.”

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FISHING PROJECT IN SRI LANKA

Our fishing project in Sri Lanka has provided 50 fishermen in the Kuchchaweli and Muthur regions of the Trincomalee district with modern canoes and fishing nets.

Fishing is a primary source of income, and many of these fishermen have outdated and unsafe boating equipment. By supplying new, high-quality fishing gear, the project aims to enhance their fishing productivity and support economic stability.

Fuwath, 37, is a dedicated fisherman belonging to a family with generations of experience in the fishing industry. In the 1990s, during the civil war, his family lost many assets, severely impacting their financial stability. Just as they were recovering, the 2004 tsunami struck, causing further devastation and destroying their boats, fishing gear, and other economic resources.

Tragedy struck again when he suffered an accident that resulted in a broken hand, leaving him unable to work and pushing his family into financial uncertainty. Receiving a canoe from Muslim Hands has been life-changing for him. Before Muslim Hands’ intervention, he struggled to support his family. Now that he has received the canoe, he can go to sea and catch fish, which he can consume and sell on the markets: “I am deeply grateful to the donors and Muslim Hands for their generous provision of the canoe, which has significantly improved my ability to support the family.”

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INSECURITY

We helped food insecure beneficiaries 917,980

SUPPORTING BENEFICIARIES DURING RAMADAN

During Ramadan 2024; we witnessed millions around the world being impacted by war and destruction while others navigated food insecurity, climate disaster, and economic instability.

Our donors supported the distribution of 6,121,398 meals to beneficiaries across 21 countries, including 2,662,650 meals to beneficiaries in Gaza. During the Holy Month, our local teams worked around the clock to ensure families received the food parcels and cooked meals on time; their hard work made this campaign an astounding success. During Ramadan, we partnered with the World Food Programme to provide one million hot meals to beneficiaries in Gaza. We held our first Open Iftar event in collaboration with Notts County Foundation. The event aimed to unite people of different backgrounds

and celebrate the diversity of our local communities.

Majida and her family reside in Camp 8E in the Rohingya refugee camp, Cox’s Bazar, a place where poverty and hardship are constant companions. The family living conditions are dire, with their small shelter providing little protection, as the cramped quarters make it difficult for the family to find any privacy or comfort. During Ramadan, the family finds having a decent Suhoor and Iftar challenging. Thousands of widows like Majida reside in Cox’s Bazar, one of the world’s largest refugee settlements; it is estimated that 1.24 million people are cramped into makeshift settlements. Necessities like food and clean water are scarce, and the lack of proper healthcare exacerbates their precarious situation. Majida’s children suffer from various diseases, but they are unable to receive adequate medical treatment. With no source of income and being a widow, Majida struggles to provide for her children. Majida feels hopeless and frustrated about her situation; like

many Rohingya, she feels abandoned by their government and the international community, as their plight often goes under the radar. She fears for their safety, security, and the uncertainty of their future. Majida wishes she could enjoy social and economic freedoms without fear of persecution or discrimination; “I would be able to live with dignity and security, providing for myself and my children without relying on aid or facing the daily hardships of life in a refugee camp.” She is eternally thankful for Muslim Hands’ dedication to the Rohingya community, “we are deeply grateful to the generous donors for their support and assistance. Your kindness gives us hope for a better future and the opportunity to rebuild our lives. May Allah bless you abundantly for your compassion and generosity.”

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rine DISTRIBUTING HIGH QUALITY QURBANI MEAT

Muslim Hands distributed Qurbani meat in 25 locations, prioritising orphans and widows. For our UK Qurbani, we continued our partnership with Hill Farm Finest, giving donors the option of enjoying organic grass-fed meat from their own sacrifice whilst also supporting disadvantaged people using our Open Kitchens.

SUPPORTING THE SUDANESE COMMUNITY WITH QURBANI

Since the conflict began in 2023, Aldaiya and her family have faced constant upheaval. They fled Khartoum after armed militia forcefully began occupying their property. Leaving their house and abandoning everything they held dear was one of the toughest decisions they had to make. Their journey in search of safety was perilous, crossing numerous checkpoints and encountering abuse along the way; the young children were terrified. Like so many across Sudan, the ongoing conflict put an end to Aldaiya’s

livelihood. She sold perfumes at the local market and earned enough to support her family. But now, sadly, she is struggling to feed her family, often going to bed on an empty stomach.

”We are unable to purchase food and medication, and we cannot even send our children to school. Our biggest worry is the ongoing conflict and the consequence it may have on our children. The last time the family consumed meat was about a month ago, and as they do not have the means to purchase meat daily, during this Holy Month. “We are thankful for Muslim Hands intervention, as we now can eat meat for the first time in over a month.”

MUSLIM HANDS BREAD FACTORY

In Ramadan 2020, we campaigned to open our first-ever Yemen Bread Factory to tackle hunger and malnutrition in the war-torn country. We opened our first premises in Aden in September of that year.

.We now operate five bread factories in Yemen, located in South Aden, North Aden, North Ma’rib, South Ma’rib, and

Seiyun. These factories support 25,000 widows, orphans, and people with disabilities. The bread is distributed through school feeding programmes and camps for internally displaced people. Each bread factory ca produces 10,000 loaves daily, with every beneficiary receiving two loaves weighing 60 grams each. Muslim Hands’ vision is to ensure that food reaches vulnerable populations when and where it is needed most.

SYRIA

Our donors continued to support a mega bread factory in Afrin producing over 100,000 loaves and feeding 50,000 people daily.

Khansa, 40, is a widow living in Idlib camp with her family for the last three years. Five people, including four girls, live in this small tent. One of her children has epilepsy. She used to work as a tailor; however, as no electricity is available in the camp, she cannot work and earn an income to support her family. She is thankful for the bread they receive and expresses her gratitude to the kind-hearted donors. She believes that this project has elevated some of the worries that her family was facing.

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151,244[children received education] EDUCATION

MUSLIM HANDS’ SCHOOL OF EXCELLENCE

Our Muslim Hands Schools of Excellence and Model Schools have provided free education to 151,244 students this year. At Muslim Hands, we strongly emphasise the importance of the Sustainable Development Goals, which advocate for “inclusive and equitable quality education and lifelong learning opportunities for all.” Offering free education is crucial as many parents around the world lack the means to pay for their children’s schooling, and often, children work from a young age to contribute to household income.

Our educational facilities across Asia, Africa, and the Middle East support disadvantaged children, inspiring them to pursue their dreams and ambitions. We recognise that free, accessible education is a fundamental human right, and the generosity of our donors is making this a reality for some of the most disadvantaged families around the globe.

Elias, 12, is a student at Muslim Hands’ School of Excellence Aden, Yemen. His family lives in a displacement camp called Al Shadadi. Their tent is basic, consisting of two small rooms and a single bathroom. The family’s financial situation is dire. Elias’ father works as a guard, earning just $10 a month. This is their only source of income, barely covering their most basic needs.

The family struggles to afford essentials like clothing, medicine, and, most importantly, food. Attending the School of Excellence has removed some of the worries that they face daily. Not only has attending our school given Elias hopes to succeed in his education, but his family knows thathe will eat a nutritious school meal every day. Elias loves to draw and wants to become a famous painter in the future.

SUPPORTING THE NEXT GENERATION OF HIFZ STUDENTS

We run Hifz sponsorship projects in Somalia, Pakistan and Bangladesh that support Hifz students. Our sponsors ensure that Hifz students receive quality care while they learn and memorise the Holy Quran; this allows children from financially deprived families to complete the memorisation. All our sponsored Hifz students receive:

The absence of paternal support and guidance has not deterred him from his dream. However, the family’s financial situation, living in a rented single-room house with basic amenities, adds to their struggles. Muhammed H has a strong passion for Islamic studies and dreams of deepening his knowledge and understanding of the faith. His ultimate goal is to serve the community and inspire the next generation to pursue religious education.

Muhammad expresses his gratitude to the generous donor for providing him with the opportunity to memorise the Holy Quran: ”I am sincerely grateful for your generous contribution. Your support has allowed me to embark on this journey of memorising the Holy Quran, and I am truly thankful for this precious opportunity.”

PROVIDING A STREET CHILD WITH LEGAL PROTECTION

Currently, an estimated 166 million children under 5 remain unregistered across the world. They are denied even the most basic human rights, depriving them of healthcare and education. This project aims to provide thousands of street-connected children across Pakistan, Bangladesh, Mali, Niger and Sri Lanka with legal identification, giving them access to the most basic rights currently denied to them.

Muhammed aspires to become a religious scholar – yet financial constraints have prohibited him from achieving his dreams. Despite the loss of his father, Muhammed, an orphan, has shown remarkable resilience in navigating life’s challenges.

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PROJECTS

[– Total health projects beneficiaries ] 998,161

MOTHERKIND CLINIC – HELPING MOTHERS AND BABIES IN SOMALIA AND AFGHANISTAN

In 2020, the World Health Organisation estimated that around 287000 women died during and following pregnancy and childbirth. On average, a woman dies from pregnancy/childbirth every two minutes. Most maternal fatalities are preventable if mothers have access to basic healthcare and knowledge.

The Motherkind Clinics are combatting these issues head-on. In Afghanistan and Somalia, which have some of the highest maternal mortality rates in the world, our centres are strategically located, providing medical assistance to thousands of IDPs and vulnerable women each month. This year, our donors have supported 75,420 beneficiaries at the MKC Afghanistan, while our Clinic in Somalia has supported 29,500 beneficiaries.

Halimo is one of our patients at our Motherkind Clinic in Somalia. Halimo describes the clinic as a blessing for the community.

”Muslim Hands donors haves supported us during an extremely tough time. Our village has no health facilities; the Motherkind Clinic is a lifeline for us. Not only does the clinic treat the sick and the unwell, including our children, but it also holds awareness sessions. These sessions are vital for us as they educate us on how to keep ourselves and our families healthy.”

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AFGHANISTAN EYE CAMP

According to the World Health Organisation, Afghanistan has a massive backlog of cataract operations, especially in rural villages. Our cataract operation in Afghanistan provides surgeries and eye care services to those in need in Herat Province. The project focuses on delivering high-quality health services, including cataract surgeries for 200 patients in Afghanistan, while ensuring that vulnerable individuals receive the necessary care. The project involves screening patients, conducting surgeries, and providing post-operative care to ensure successful outcomes.

PROVIDING URGENT MEDICAL CARE WITH MOBILE HEALTH CLINIC

To provide urgent medical care, Muslim Hands has set up mobile clinics across remote villages in Pakistan. Our professional medical staff have been going out in vans stocked with essential medicine and equipment to support and target vulnerable members of isolated communities. The mobile clinic has become a lifeline for many.

Shazia Bibi and her family have been struggling with untreated health issues and inadequate medical care. Kal Sar, District Neelum, Azad Jammu and Kashmi, faced considerable healthcare challenges due to its remote location, limited access to medical facilities, and economic hardships.

Shazia explained to us the daily challenges they faced without medical care, ”In case of any illness in our families, we have to travel for a long to get treatment while the cost of traveling is more than the cost of treatment.”

Shazia hopes donors and Muslim Hands understand the profound impact of their support has had in the community and why it is important to address how vital it is on critical healthcare to those who desperately need it.

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safe water beneficiaries 1,631,307

Approximately two billion people lack access to safe drinking water, and about half of the world’s population experiences severe water scarcity for at least part of the year. Water scarcity can have severe consequences on the vulnerable, including food insecurity, health issues, and economic losses. Climate change is intensifying the problem, making it more challenging to address the issue of water scarcity.

In 2024, Muslim Hands has been providing clean water to 1,631,307 communities affected by water scarcity.

SAFE WATER FOR REMOTE VILLAGES IN SOMALIA

Feysal is one of the beneficiaries that Muslim Hands has supported through the Rehabilitation water well project in Baidoa. His family was directly impacted by drought, losing most of their livestock and experiencing crop failure. To survive, Feysal had to leave for Baidoa in search of humanitarian assistance.

Conflict, economic instability and climate shocks are exacerbating the humanitarian crisis in Somalia, with 6.9 million people in need of humanitarian assistance and 3.8 million people internally displaced.

Watching his family struggle is unbearable for Feysel, “We reside in makeshift rooms that are vulnerable to flooding, sandstorms and even strong winds that can easily blow them away. I want a steady income to give my family the stability they need.”

Now that most of the nearby wells have dried up, Faysel spends on average six hours fetching water. This includes walking the distance and standing in a queue to collect the water. The long waiting time is causing fatigue among the women and elderly people in the community, causing tension around the water wells and leading to fights among the community.

Feysal is grateful for Muslim Hands and the donors, “ seeing my family struggling to access humanitarian assistance worried me daily. We had to walking long distances to fetch water since the water points nearby are often crowded and take long hours to get 20 litres of water. But with the Rehabilitation of the water well, all the hardship we encountered has disappeared. I would like to express my gratitude for supporting us and proving us with ulean water.”

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TWO LARGE BOREHOLES IN YEMEN

The primary objective of this large-scale water project is to strengthen the water supply system in Ma’rib City by drilling two additional boreholes. Muslim Hands launched this project to mitigate the acute water shortages, enhance the system’s resilience, and ensure safe and adequate access to drinking water for the city’s rapidly growing population of people displaced by conflict in other areas of the country.

The drilling of these new boreholes was designed as a complementary intervention to reinforce water sources and ensure a more sustainable supply of potable water. The reservoir and boreholes have significantly improved access to safe water for both IDPs and host communities, reducing residents’ struggle to secure water and contributing to improved public health.

The intervention will lead to a more sustainable water supply and increase available water quantity, ensuring that people have improved access to safe drinking water, reducing health risks, and promoting better hygiene practices.

Muslim Hands had previously constructed a 2,000 cubic meter water reservoir, which became the central storage facility for water distribution in Ma’rib City.

CONSTRUCTION OF WATER PONDS IN PAKISTAN

Muslim Hands has constructed water ponds to address food insecurity, water scarcity, support sustainable water management, restore ecosystems, and enhance climate resilience in the arid regions of District D.I Khan, Khyber Pakhtunkhwa. The project includes constructing water ponds to meet domestic, agricultural and livestock needs, delivering health and hygiene sessions, raising climate awareness, and plantation around the ponds to conserve water and improve the environment. These integrated actions aim to strengthen community adaptation to climate challenges.

Building the capacity of local communities involved training programmes on efficient water use and conservation techniques. These efforts improve water access, ensure resource sustainability and equip communities to adapt to water scarcity challenges. Active community engagement ensures residents play a vital role in decisionmaking and project implementation. This approach fosters ownership, builds trust, and enables tailored solutions that empower communities to manage resources effectively and address challenges. Sustainable practices focus on raising climate awareness and promoting water conservation through methods like efficient irrigation and rainwater harvesting. These measures are designed to safeguard natural resources, enhance sustainability, and build resilience to the impacts of climate change.

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EDUCATION

BUILDING MOSQUES

Muslim Hands constructs mosques in remote villages around the world, including Sri Lanka, Niger and Pakistan. The project aims to provide the beneficiaries with a clean space for prayer and worship. The mosques serve as pivotal centres where isolated communities gather for communal activities. They also fulfil essential roles, such as offering Quranic teachings and providing crucial services like marriage and funeral arrangements.

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The Open Kitchen is a hub for local communities. It is a place where people can receive a hot meal seven days a week and a safe and welcoming space where they can find friendship and support.

This project aims to tackle food insecurity and other issues affecting the most vulnerable people in Britain. Our first Open Kitchen was opened in 2018 in response to growing food insecurity in London and in December 2021, we set up our second kitchen in Nottingham. In August 2024, we opened our third Open Kitchen in Manchester.

In the past year, we have witnessed a substantial increase in beneficiaries visiting our centre – and we have heard many distressing stories of families trying to survive the cost-of-living crisis. Visitors constantly stress the pressure

they face - we hear heartbreaking stories from individuals who don’t know when their next meal will be or if they can afford their heating bills.

Many of our beneficiaries have undiagnosed mental health conditions, which have been exacerbated by their unstable living condition. The Open Kitchen has become a lifeline for many throughout this crisis.

We provide daily hot meals, including vegetarian options . Each meal includes one bottle of water and two snacks. We also provide toys and clothes for children, sleeping bags during our winter campaign, baby milk and sanitary products. Our Open Kitchen offers advice on mental health, employment and housing support.

Our beneficiaries are from all walks of life, including homeless individuals, lowincome families and refugees.

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Supporting aspiring authors and journalists

Since 2006, the Young Muslim Writers Awards have inspired young people from ages 5 to 16 across the UK to explore and excel in creative writing. This annual competition encourages participants to submit various creative pieces, including short stories, poems, screenplays, and journalism.

The submission is judged by respected figures from the arts and media industries. In 2024, we had 432 eligible entries from 385 individual entrants, and we shortlisted 50 entries across 11 categories. We also host writing workshops throughout the year. These workshops allow children to meet authors, receive guidance on honing their writing skills and foster a love for creative expression. This year, we held seven workshops and one assembly.

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Sustainable Development Goals ee

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
of SIME ge
ACTION EQUALITY
12. RESPONSIBLE
CONSUMPTION
6. CLEAN WATER
& PRODUCTION
& SANITATION
a Sa OA,
7. AFFORDABLE
11. SUSTAINABLE
& CLEAN ENERGY
CITIES &
COMMUNITIES
10. REDUCED 8. DECENT WORK
INEQUALITIES & ECONOMIC
9. INDUSTRY, GROWTH
INNOVATION
& INFRASTRUCTURE
----- End of picture text -----

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Financial Review

This year, Muslim Hands raised £33.4m – the sum of £21.9m was donated for nonemergencies, £7.3m for emergencies and £4.2m coming from Gift Aid. The total income received in 2024 was down from the level of income raised in the previous year (£35.1m).

2024 2023 2022
Donations from Supporters £m £m £m

Donations for Non-Emergencies		 21.9 23.4 22.6

Donations for Emergencies		 7.3 7.9 6.3
Gift Aid 4.2 3.8 4.2
Total Income 33.4 35.1 33.1

The charity invested £4.4m to generate £33.4m. The net return was £29m.

The charity invested 13.2% to generate a return of 86.8%.

The charity aims for an investment target of 10% in the current year.

This is further broken down into 1/2 unrestricted/ restricted ratio respectively.

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Financial Review

During the year Muslim Hands spent over £39.4m. 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.

2024
2023
2022
£m
£m
£m
Cost of generating funds
4.4
3.9
3.7
Charitable Activities
29.7
24.3
26.7
Where Most Needed
1.3
0.8
1.4
Orphans
2.3
2.2
3.1
Education
5.6
4.5
4.5
Health
1.2
1.3
0.8
Emergency
9.3
6.0
5.0
WASH
3.4
3.3
6.2
Food
5.4
4.9
4.1
Masjids
1.2
1.3
1.6
Support Costs and Staff
5.4
4.8
5.0
Total Resources Expended
39.4
33.0
35.4		 2024
2023
2022
£m
£m
£m
Cost of generating funds
4.4
3.9
3.7
Charitable Activities
29.7
24.3
26.7
Where Most Needed
1.3
0.8
1.4
Orphans
2.3
2.2
3.1
Education
5.6
4.5
4.5
Health
1.2
1.3
0.8
Emergency
9.3
6.0
5.0
WASH
3.4
3.3
6.2
Food
5.4
4.9
4.1
Masjids
1.2
1.3
1.6
Support Costs and Staff
5.4
4.8
5.0
Total Resources Expended
39.4
33.0
35.4		 2024
2023
2022
£m
£m
£m
Cost of generating funds
4.4
3.9
3.7
Charitable Activities
29.7
24.3
26.7
Where Most Needed
1.3
0.8
1.4
Orphans
2.3
2.2
3.1
Education
5.6
4.5
4.5
Health
1.2
1.3
0.8
Emergency
9.3
6.0
5.0
WASH
3.4
3.3
6.2
Food
5.4
4.9
4.1
Masjids
1.2
1.3
1.6
Support Costs and Staff
5.4
4.8
5.0
Total Resources Expended
39.4
33.0
35.4
£m £m
Cost of generating funds
Charitable Activities
Where Most Needed
Orphans
Education
Health
Emergency
WASH
Food
Masjids
Support Costs and Staff		 4.4
29.7
1.3
2.3
5.6
1.2
9.3
3.4
5.4
1.2
5.4		 3.9
24.3
0.8
2.2
4.5
1.3
6.0
3.3
4.9
1.3
4.8

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Expenditure

The management of the charity is undertaken responsibly to safeguard and protect the funds the charity is entrusted with from loss, corruption, fraud and the charity has invested in the strength of its systems, offices and people. Therefore, £5.4m was invested in the organisation allowing the charity to effectively use the funds and operate with accountability.

In 2024 the charitable activities expended were £29.7 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 FIGURES DETAILS
Emergency 3,212,095 Projects include our Syria housing project
and Yemen Bread factory. We also provided
emergency intervention in Afghanistan and
India Kashmir.
Education 157,864 Our MH School of Excellence, Model
School, religious educational and
orphans programmes.
WASH 1,624,005 Tube wells, boreholes, water filtration units,
rain harvesting and Girl-friendly toilet.
Health 998,161 Our Motherkind Clinic in Afghanistan and
Somalia. Basic health units, Cataract Eye
Surgery and Covid intervention in India.
Food 1,314,285 Qurbani and Ramadan. Our Open Kitchen in
Nottingham and Hounslow.
Livelihoods 26,200 Sewing Machine, Hope shop Project and
chicken farming project.

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PRINCIPAL SOURCES OF FUNDING

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

who respond to appeals via mail, email, 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.

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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 2024 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.

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Structure, Governance and Management

Muslim Hands was

legally established as an international NGO in 1993 by a trust deed and registered with the Charity Commission under registration number 1029742 on 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, Yasrab Shah, Munawar Patel, Umer Bhatti, Arslan Nusrat and Syed Ali Haider as Executive Directors. The trustees set the salaries for the CEO and the Senior Management Team’s salaries are set by the CEO. The salaries are benchmarked according to similar roles in the sector based on research conducted internally. Furthermore, they are adjusted according to the prevailing rate of inflation at the time.

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, Remuneration Committee, a Nomination Committee and a Fundraising committee for better control and governance. The Programmes Committee is a sub-committee 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.

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4a 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:

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’.

“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”.

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:

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Public Benefit Statement

All our charitable activities focus on furthering our charitable objectives for the public benefit. The section of this report 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:

• The aims of the charity continue to be charitable.

• The aims and work done give identifiable benefits to the charitable sector both directly and indirectly.

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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 2024, 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

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Internal Audit and Risk Assurance

The MH Board of Trustees is advised by an Audit Committee comprising trustees and independent members who bring a broad range of expertise. The Committee meets three times a year, and its terms of reference include scrutiny and oversight of MH’s risk management..

The Internal Audit function reports to the Audit Committee and is delivered by MH’s Internal Audit Department, staffed by qualified auditors.

The Department primarily conducts programme-focused audits across MH’s overseas charitable expenditure, supports the maintenance of the risk register, and delivers a risk-based audit programme under an audit plan. Internal Audit shares its findings with the Audit Committee and senior management for review and action, with management responsible for implementing agreed actions and progress tracked back to the Committee.

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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.

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Statement of Trustees’ Responsibilities

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

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of 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 25/09/2025 and signed on their behalf by

Syed Lakhte Hassanain. Trustee and Chairman

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Independent Auditor’s Report

OPINION

We have audited the financial statements of Muslim Hands (the ‘charitable company’) for the year ended 31 December 2024. 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

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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:

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43

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) ADD DATE HERE San Vinack We

26 September 2025

for and on behalf of Sayer Vincent LLP, Statutory Auditor

110 Golden Lane, LONDON, EC1Y 0TG

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.

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44

Statement of Financial Activities

Muslim Hands

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

For the year ended 31 December 2024

----- Start of picture text -----
2024 2023
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations 13,689,087 19,643,576 33,332,663 12,970,455 22,072,739 35,043,194
Bank Interest 70,706 - 70,706 84,332 - 84,332
Total income 13,759,793 19,643,576 33,403,369 13,054,787 22,072,739 35,127,526
Expenditure on:
Raising funds 3 4,381,199 - 4,381,199 3,903,430 - 3,903,430
Charitable activities
Grants payable and operational 3 6,995,271 28,029,490 35,024,761 5,500,710 23,553,501 29,054,211
Total expenditure 11,376,470 28,029,490 39,405,960 9,404,140 23,553,501 32,957,641
Net income / (expenditure) before net gains /
(losses) on investments 2,383,323 (8,385,914) (6,002,591) 3,650,647 (1,480,762) 2,169,885
- - - - - -
Net gains / (losses) on investments
Net income / (expenditure) for the year 4 2,383,323 (8,385,914) (6,002,591) 3,650,647 (1,480,762) 2,169,885
Transfers between funds 12 (3,501,680) 3,501,680 - (4,981,853) 4,981,853 -
Net income / (expenditure) before other
recognised gains and losses (1,118,357) (4,884,234) (6,002,591) (1,331,206) 3,501,091 2,169,885
Gains / (losses) on revaluation of fixed assets - - - - -
- - - - - -
Actuarial gains / (losses) on defined benefit
- - - - - -
Other gains / (losses)
Net movement in funds (1,118,357) (4,884,234) (6,002,591) (1,331,206) 3,501,091 2,169,885
Reconciliation of funds:
Total funds brought forward 4,356,063 16,015,956 20,372,019 5,687,269 12,514,865 18,202,134
Total funds carried forward 3,237,706 11,131,722 14,369,428 4,356,063 16,015,956 20,372,019
----- 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.

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45

Balance Sheet

Muslim Hands

Muslim Hands
Balance sheet
Company no. 05080486
As at 31 December 2024
Note
Fixed assets:
7
Tangible assets		 £ 2024
£
1,207,607		 2023
£
£
1,234,874
Current assets:
8
Short-term Deposits
Debtors
Cash at bank and in hand		 4,293,875
-
11,082,350		 1,207,607 1,234,874
4,339,499
2,891,122
13,951,791
Liabilities:
9
Creditors: amounts falling due within one year		 15,376,225
(2,214,404)		 21,182,412
(2,045,267)
Net current assets 13,161,821 19,137,145
Total assets less current liabilities 14,369,428 20,372,019
14,369,428 20,372,019
10
Total charity funds
Restricted income funds
Unrestricted income funds
The funds of the charity:		 11,131,722
16,015,956
3,237,706
4,356,063
14,369,428
20,372,019
a

Approved by the trustees on 25 September 2025 and signed on their behalf by

Syed Lakhte Hassanain Trustee

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46

Statement of Cash Flows

Muslim Hands

Statement of cash flows

----- Start of picture text -----
For the year ended 31 December 2024
Note 2024 2023
£ £ £ £
Cash flows from operating activities 13
Net cash provided by / (used in) operating activities (5,695,242) (320,462)
Cash flows from investing activities:
Purchase of fixed assets (65,321) (56,593)
Net cash provided by / (used in) investing activities (65,321) (56,593)
Cash flows from financing activities:
- -
Repayments of borrowing
- -
Net cash provided by / (used in) financing activities
Change in cash and cash equivalents in the year (5,760,563) (377,056)
Cash and cash equivalents at the beginning of the year 16,842,913 17,219,969
Cash and cash equivalents at the end of the year 14 11,082,350 16,842,913
----- End of picture text -----

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47

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

1 Accounting policies

Muslim Hands is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is 148 - 164 Gregory Boulevard, Nottingham, NG7 5JE.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 September 2015) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other income received or generated for the charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

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48

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the overhead costs of the central function is apportioned on the following basis which is an estimate, based on staff time, of the amount attributable to each activity. The salaries for this are classified within charitable giving.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Fundraising 17%
Direct Charitable 83%
Support costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time,
of the amount attributable to each activity
Fundraising 54%
Direct Charitable 45%
Governance Costs 1%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Grants Payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

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49

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

2% straight line 25% straight line 15% reducing balance

o) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

p) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

q) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

r) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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50

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

Elderly
Emergency Aid
Livelihoods
General
Children
Education
Current year
Governance costs (note 3)
Children
Education
Governance costs (note 3)
Shelter
Safe Water
Grant payable
Wages and salaries
Other costs including salaries
Environment
Food
Health
Orphans
Masjid
Prior year
Health
Livelihoods
Masjid
Orphans
Shelter
Safe Water
General
Elderly
Emergency Aid
Environment
Food
Wages and salaries
Other costs including salaries
Grant payable		 Unrestricted
funds
£
1,676,562
-
-
-
-
-
-
-
-
-
-
-
-
1,676,562
802,632
3,843,435
672,641
6,995,271
Unrestricted
funds
£
760,540
-
-
-
-
-
-
-
-
-
-
-
-
760,540
809,395
3,330,417
600,358
5,500,711		 Restricted
funds
£
(1,457,935)
125,179
5,608,612
11,696
9,317,750
6,765
5,338,743
1,161,503
811,322
1,235,438
2,310,294
140,817
3,419,306
28,029,490
-
-
-
28,029,490
Restricted
funds
£
(692,187)
77,720
4,533,020
19,710
5,956,433
157,641
4,943,783
1,278,505
480,934
1,329,169
2,200,879
4,676
3,263,218
23,553,501
-
-
-
23,553,501		 Total 2024
£
218,627
125,179
5,608,612
11,696
9,317,750
6,765
5,338,743
1,161,503
811,322
1,235,438
2,310,294
140,817
3,419,306
29,706,052
802,632
3,843,435
672,641
35,024,761
Total 2023
£
68,354
77,720
4,533,020
19,710
5,956,433
157,641
4,943,783
1,278,505
480,934
1,329,169
2,200,879
4,676
3,263,218
24,314,041
809,395
3,330,417
600,358
29,054,211

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51

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

At the end of the year
Non Muslim Hands Partners
Lebanon
Syria
Kashmir (India)
Bangladesh
Indonesia
Kashmir (Pakistan)
Mauritania
Senegal
Cost
Muslim Hands Partners (Related Parties)
Pakistan
Sudan
Niger
Afghanistan
Somalia
Mali
Turkey
Malawi
Palestine
Yemen
Other grants less than £50,000 in the year
Gambia
Sri Lanka		 2024
£
5,449,149
828,300
356,810
1,113,227
1,846,882
316,329
609,449
1,015
169,310
175,398
702,687
2,358,667
282,833
2,720,019
1,183,371
18,113,445
148,635
113,480
305,557
6,608,916
725,558
7,902,146
26,015,591
3,690,461
29,706,052		 2023
£
4,557,513
881,825
231,428
961,055
1,013,049
315,567
534,519
76,901
321,609
223,275
797,369
2,727,792
283,684
1,276,430
807,406
15,009,423
208,200
-
487,091
4,025,181
1,608,245
6,328,717
21,338,140
2,975,901
24,314,041

A full list of individual grants and the projects that are funded is available from our principal office.

All of the "Muslim Hands" overseas charity operations are controlled at a local level and have not been consolidated into these financial statements. In a number of cases, one or more UK Trustees sit on the local boards but the overseas operations have local registration. All country level operations are treated as independent partners. There is no intention on behalf of the UK board to control any country level entities even where there are common Board members, they are related parties.

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52

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

Elderly
Emergency Aid
Livelihoods
General
Children
Education
Current year
Governance costs (note 3)
Children
Education
Governance costs (note 3)
Shelter
Safe Water
Grant payable
Wages and salaries
Other costs including salaries
Environment
Food
Health
Orphans
Masjid
Prior year
Health
Livelihoods
Masjid
Orphans
Shelter
Safe Water
General
Elderly
Emergency Aid
Environment
Food
Wages and salaries
Other costs including salaries
Grant payable		 Unrestricted
funds
£
1,676,562
-
-
-
-
-
-
-
-
-
-
-
-
1,676,562
802,632
3,843,435
672,641
6,995,271
Unrestricted
funds
£
760,540
-
-
-
-
-
-
-
-
-
-
-
-
760,540
809,395
3,330,417
600,358
5,500,711		 Restricted
funds
£
(1,457,935)
125,179
5,608,612
11,696
9,317,750
6,765
5,338,743
1,161,503
811,322
1,235,438
2,310,294
140,817
3,419,306
28,029,490
-
-
-
28,029,490
Restricted
funds
£
(692,187)
77,720
4,533,020
19,710
5,956,433
157,641
4,943,783
1,278,505
480,934
1,329,169
2,200,879
4,676
3,263,218
23,553,501
-
-
-
23,553,501		 Total 2024
£
218,627
125,179
5,608,612
11,696
9,317,750
6,765
5,338,743
1,161,503
811,322
1,235,438
2,310,294
140,817
3,419,306
29,706,052
802,632
3,843,435
672,641
35,024,761
Total 2023
£
68,354
77,720
4,533,020
19,710
5,956,433
157,641
4,943,783
1,278,505
480,934
1,329,169
2,200,879
4,676
3,263,218
24,314,041
809,395
3,330,417
600,358
29,054,211

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53

Notes to the Financial Statements

Muslim Hands

Notes to the financial statements

For the year ended 31 December 2024

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 2024
Total expenditure 2023		 Cost of raising
funds
£
-
1,289,998
12,264
95,856
37,297
2,910,382
-
-
4,345,797
35,402
4,381,199
3,903,430		 Grants payable
and
operational
programmes
£
29,706,052
2,028,565
220,750
1,725,399
671,353
-
-
-
34,352,120
672,641
35,024,761
29,054,211		 Governance
costs
£
-
541,026
12,264
90,606
37,297
-
21,600
5,250
708,043
(708,043)
-		 2024 Total
£
29,706,052
3,859,590
245,278
1,911,861
745,948
2,910,382
21,600
5,250
39,405,960
-
39,405,960
-		 2023 Total
£
24,314,041
3,753,300
246,106
1,683,717
427,694
2,510,724
22,060
-
32,957,641
-
32,957,641

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
Governance costs
Total expenditure 2023
Total expenditure 2022		 Cost of raising
funds
£
-
1,243,232
12,305
84,186
21,385
2,510,724
-
-
3,871,832
31,598
3,903,430
3,746,356		 Grants payable
and
operational
programmes
£
24,314,041
2,018,048
221,496
1,515,345
384,924
-
-
-
28,453,853
600,358
29,054,211
31,603,161		 Governance
costs
£
-
492,020
12,305
84,186
21,385
-
22,060
-
631,956
(631,955)
-		 2023 Total
£
24,314,041
3,753,300
246,106
1,683,717
427,694
2,510,724
22,060
-
32,957,641
-
32,957,641
-		 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

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54

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2024

4
5
The average number of employees (on a head count basis) analysed by function was:
Direct charitable operations
Fundraising and publicity
Management and administration of the Charity
Under-provision in the prior year
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Employer's pension contributions to defined contribution scheme
Audit
Staff costs were as follows:
Salaries and wages
Social security costs
Depreciation of tangible fixed assets
Net income / (expenditure) for the year
Auditors' remuneration (excluding VAT):
This is stated after charging / (crediting):		 2024
£
21,600
-
92,589
2024
£
3,389,104
346,999
123,487
3,859,590
2024
No.
50
56
9
115		 2023
£
22,060
-
87,883
2023
£
3,311,176
332,062
110,061
3,753,299
2023
No.
55
43
9
107

The charity operates a defined contribution pension scheme: 2024 £123,487 (2023: £110,061) 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 £681,240 (2023: £822,586).

Emoluments between: £60,000-£69,999 - Two (Five in 2023).

£70,000 - £79,999 - Six (Five in 2023).

Emolument for seven key management personnel totalled £601,458 (£579, 958 in 2023)

During the period, Syed Lakhte Hassanain, a Trustee of the Charity, was paid £71,872 (2023: £76,539) 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 £0 (2023: £1,120) by Syed Lakhte Hassanain.

During the year £5,025 (2023 £4,582) of expenses for reimbursement of travel and subsistence in connection with the Charity's business were paid to 4 Trustees (2023: 4 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.

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55

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2024

At 31 December 2024
At 31 December 2023
Eliminated on disposal
At 31 December 2024
At 31 December 2024
At 1 January 2024
Charge for the year
At 1 January 2024
Additions in year
Disposals in year
Cost
Accumulated depreciation
Net book value		 Freehold land &
buildings
£
1,418,683
-
-
1,418,683
352,282
28,374
-
380,656
1,038,027
1,066,401
Computer &
office equipment
£
223,422
56,114
279,536
125,462
49,461
174,923
104,614
97,961
Fixtures and
fittings
£
156,014
9,207
-
165,221
85,501
14,754
-
100,255
64,966
70,513
Motor Vehicles
-
-
-
-
-
-
-
-
-
-		 Total
£
1,798,119
65,321
1,863,440
563,245
92,589
655,834
1,207,607
1,234,874

Included in the net book value of freehold land and buildings of £1,094,772 (2023: £1,123,146) is £nil relating to non-depreciated land.

8 Debtors

Prepayments and accured income
Other debtors		 2024
£
4,268,860
25,015
4,293,875		 2023
£
4,293,776
45,723
4,339,499

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.

Accruals and deferred income
Trade creditors
Other creditors
Other Creditors - Grant Payable		 2024
£
678,046
1,347,435
144,521
44,402
2,214,404		 2023
£
376,220
1,590,144
125,110
(46,207)
2,045,272

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56

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2024

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.

Analysis of net assets between funds 2023
Tangible fixed assets
Net current assets
Net assets at 31 December 2023
Tangible fixed assets
Net current assets
Net assets at 31 December 2024		 General
unrestricted
£
1,207,607
2,030,099
3,237,706
General
unrestricted
£
1,234,874
3,121,189
4,356,063
Restricted
£
-
11,131,722
11,131,722

Restricted
£
-
16,015,956
16,015,956		 Total funds
£
1,207,607
13,161,821
14,369,428
Total funds
£
1,234,874
19,137,145
20,372,019

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57

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2024

11a Movements in funds 2024

nded 31 December 2024
nts in funds 2024
Theme
Opening Incoming Original Transfers Closing
Balance Funds Expenditure Balance
£ £ £ £ £ £
Children 28,253 15,319 - 125,179 - 88,452 6,845
Education 915 422,900 - 5,608,612 - 5,286,315 101,518
Elderly 44,980 20,291 - 11,696 - - 53,575
Emergency 5,320,487 6,331,966 - 9,317,757 - - 941,792 1,392,904
Environment 1,092,870 148,182 - 6,765 - - 1,234,287
Food 46,197 2,925,181 - 5,338,743 - 2,393,168 25,803
General 3,633,503 1,527,204 1,448,309 - - 2,848,477 3,760,539
Health 875 392,425 - 1,161,503 - 846,713 78,510
Livelihoods 7,507 144,244 - 811,322 - 685,064 25,493
Mosques 2,633,844 975,840 - 1,225,813 - 187,041 2,570,912
Orphans 234,838 3,487,225 - 2,310,294 - - 1,551,146 (139,377)
Shelter 1,502,413 130,773 - 140,817 - 39,441 1,531,810
WASH 1,469,280 3,122,029 - 3,419,306 - -
683,100		 488,903
Grand Total 16,015,963 19,643,578 (28,029,498) - 3,501,680 11,131,722
Unrestricted Reserves 4,356,056 13,759,793 (11,376,463) - (3,501,680) 3,237,706
Total 20,372,019 33,403,371 (39,405,962) - - 14,369,428

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58

Notes to the Financial Statements

Notes to the financial statements

For the year ended 31 December 2024

11b Movements in funds 2023

nts in funds 2023
Theme
Opening Incoming Original Wages Transfers Closing
Balance Funds Expenditure Balance
£ £ £ £ £ £
Children 35,698 23,634 - 77,720 - 46,641 28,253
Education 96,065 401,986 - 4,533,020 - 4,035,885 915
Elderly 39,151 25,539 - 19,710 - - 44,980
Emergency 4,959,698 7,092,222 - 5,956,433 - -
775,000		 5,320,487
Environment 1,009,542 157,762 - 157,641 - 83,208 1,092,870
Food 118,079 2,352,054 - 4,943,783 - 2,519,848 46,197
General 1,763,024 1,118,079 692,187 - 60,214 3,633,503
Health - 61,225 466,019 - 1,278,505 - 874,586 875
Livelihoods 30,276 235,410 - 480,934 - 222,755 7,507
Mosques 2,031,673 1,778,676 - 1,329,169 - 152,663 2,633,844
Orphans 249,910 4,141,652 - 2,200,879 - - 1,955,846 234,838
Shelter 1,256,209 250,880 - 4,676 - - 1,502,413
WASH 986,771 4,028,829 - 3,263,220 - -
283,100		 1,469,280
Grand Total 12,514,871 22,072,741 (23,553,503) - 4,981,853 16,015,963
Unrestricted Reserves 5,687,263 13,054,787 (9,404,140) - (4,981,853) 4,356,057
Total 18,202,134 35,127,528 (32,957,643) - - 20,372,019

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 they are received for projects within the location and theme restricted by donors.

In delivering on our charitable objectives, we have continued to respond to the evolving needs of our beneficiaries and offices we support. A key aspect of this work has been the ability to commit resources early in the lifecycle of projects by transfer of funds - often before dedicated donations are secured.

12 Reconciliation of net income / (expenditure) to net cash flow from operating activities

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		 2024
£
(6,002,591)
92,589
45,624
169,137
(5,695,242)		 2023
£
2,169,885
87,883
(3,437,026)
858,796
(320,462)

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59

Notes to the Financial Statements

For the year ended 31 December 2024
Notes to the financial statements
13
Analysis of cash and cash equivalents
Cash at bank and in hand
Short term deposits
Total cash and cash equivalents		 At 1 January
2023
£
13,951,791
2,891,122
16,842,913
Cash flows
£
(2,869,441)
(2,891,122)
(5,760,563)		 Other changes
£
-
-
-		 £
11,082,350
-
11,082,350
At 31
December
2024

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		 2024
2023
£
£
51,333
65,000
-
65,000
-
-
51,333
130,000
Property

15 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 and Yemen. 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 £35,919 for the period (2023: £33,417). The Chairman's son also employed was MH Syed - paid £12,695 (2023: £4,729)

Tariq Nasir is a governor of Figtree Primary School which receives a total grant of £34,000 for the year.

A donation of £19,190 was made to Karimia Institute in 2024, Tariq Nasir is a Trustee at Karimia Institute. A payment of £14,000 was made to Radio Dawn in 2024 - Saffi Ullah, a Trustee of MH, is a director at Radio Dawn A payment of £350 was made to Third Sector Governance Assist Ltd - Abdul Qudeir Khan is a Trustee of the Charity and his nephew is the director of Third Sector There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

16 Ultimate controlling party

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

17 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.

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60