2022-07-31-accounts

ANNUAL REPORT YEAR ENDED 31 JULY 2022

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ANNUAL REPORT 2022

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“WE DON’T SEE WHERE THE VICTIMS COME
FROM, WE JUST SEE HOW WE CAN HELP THEM
AND IT IS THIS HUMANITY THAT BINDS US”
– IMAM QASIM
FOUNDER & CHAIRMAN
AL-KHAIR FOUNDATION
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ANNUAL REPORT 2022

STRATEGIC REPORT

DELIVERY

FINANCIALS

ANNUAL REPORT 2022

Al-Khair Foundation is a company limited by guarantee, incorporated on 3 July 2003

Al-Khair Foundation (‘the Charity’) is a Registered Charity (since 19 November 2008)

Registered Company Number:

04819971 (England and Wales)

Registered Charity Number:

1126808 (England and Wales) SC042234 (Scotland)

Registered Office:

109 -117 Cherry Orchard Road, Croydon, CR0 6BE, United Kingdom

Website:

www.alkhair.org

Trustees and Directors:

Imam Qasim Rashid AHMAD Dr Mohammed Jafer Hussain QURESHI Mohamed Ayyub SHAIKH Basil NADER Salman Ahmad BUKHARI (since 01 Nov 2021)

Key Management Personnel:

Imam Qasim Rashid AHMAD (Executive Chair) Shuaib YUSAF (CEO)

Bankers:

HSBC Bank Plc

91 High Street Thornton Heath CR7 8XE

Al Rayan Bank

Edgbaston House 3 Duchess Place Birmingham B16 8NH

Lloyds Bank plc

25 Gresham Street London EC2V 7HN

Auditors:

Elliot, Woolfe & Rose Audit and Advisory Services LLP (Chartered Accountants) Elizabeth House 54-58 High Street, Edgware, HA8 7TT

Legal Advisors:

Lee Bolton Monier Williams 1 The Sanctuary Westminster London SW1P 3JT

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ABOUT US
Al-Khair Foundation is a UK Registered Charity and INGO which provides emergency/
humanitarian relief and developmental support in some of the world’s most
impoverished and deprived areas. Established in 2003 by Imam Qasim Rashid
Ahmad, Al-Khair Foundation began as a school for excluded pupils and has steadily
grown into one of the largest Muslim charities in the United Kingdom. Today we
work in countries across Asia, Africa, Europe and the Middle East, alleviating the
suffering of vulnerable people and communities.
Over £225m has been spent to date on deserving beneficiaries.
Due in large part to the generosity and commitment of our ever-expanding donor
base, we have one of the largest aid delivery footprints in the INGO sector – helping
all those in need without reference to race, creed or political persuasion. While
we strive to be the first on the ground in times of crisis, we also understand the
importance of empowering our beneficiaries to improve and sustain their own
livelihoods. We therefore have a variety of active projects which cater for both the
short and long-term needs of our beneficiaries.
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Over £225m has been spent to date on deserving beneficiaries.

ANNUAL REPORT 2022

• At Al-Khair Foundation, we believe in Balance without Compromise, namely that we will not compromise on our core values or indeed upon the delivery of our aid.

• We envisage a world where peace and equality prevail, where poverty has been overcome, and where every person has the opportunity to reach their fullest potential.

Driven by our humanitarian and Islamic values, Al-Khair Foundation works around the world in collaboration with others to:

• Provide immediate relief in the event of emergency and develop local capacity and resilience to prepare for and mitigate the effect of such incidents.

• Address the root causes of poverty by promoting education and equipping communities with the skills needed to expand their own horizons and capacity.

• Empower the marginalised and vulnerable to sustain their own livelihoods and secure the future for their families and communities.

• Actively reduce risk of long term dependency on aid.

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6 ANNUAL REPORT 2022
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As a faith-based organisation, we are guided by the values and teachings of Islam. Our values are summarised as follows:

• A Commitment to Excellence

We are committed to excellence in everything we do, striving to be one of the best acute trusts in the country.

• Working Together

We are working together as one team devoted to meeting the needs of deserving beneficiaries.

• Securing a better future

We are continuously improving our performance and delivery and adapt our services to meet with the needs of our beneficiaries.

• Securing Trust

We nurture this with all our stakeholders through following the principles of Transparency, Accountability, and Efficiency in all that we do.

• Giving Respect

We extend the utmost respect to everyone we work with. This translates into our work, through the way in which we ensure our beneficiaries are consulted prior to implementing projects. We celebrate diversity and will always serve people regardless, amongst others, of their race, gender, creed, political affiliation, and without fear or favour – the only impetus being the need to serve.

• Integrity at our core

As a leading UK Muslim charity, we are accountable to our staff, partners, donors and, most importantly, our beneficiaries. We conduct ourselves in accordance with Islamic principles and also abide by all regulatory and statutory bodies, thereby ensuring our work is both ethical and compliant, and fulfils or exceeds all sector based best practice.

• Commitment and belief

With a skilled and dedicated workforce, supported by leading information technology systems, we are able to deliver efficient and effective and impacting projects on your behalf.

• Quality in our work

At Al-Khair Foundation we strive for brilliance, challenging ourselves to be the best in everything that we do. We provide emergency relief but also recognise the necessity of sustainability, hence a large proportion of our projects is geared towards effecting long-lasting change.

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VISION

In keeping with the sector, the Al-Khair Foudation has had to respond to the Coronavirus pandemic and the seismic economic and social changes globally. The trustees are please to report that the Charity has emerged safe and sound in large measure through prudent management and reorganization.

The Charity has and will continue to build on the strong reputation amongst donor communities, whilst remaining at the forefront of providing accountable humanitarian aid deliveries. AI-Khair Foundation will remain committed to growing and improving its international development projects through:

• Continuing pandemic support where needed to affected impoverished communities.

• Strong and decisive leadership.

• Effective organisational controls and operations.

• Adapting work practices to be pandemic control compliant.

• Focus on developing projects with the greatest impact.

• Fast, effective and efficient emergency responses.

• Increasing accountability to donors.

• Building productive and effective partnerships with other organisations.

• Strive to improve the standards of wellbeing globally.

• Incorporating sustainability and resilience into the DNA of our programme delivery.

• Enhancing the Charity’s green credentials to align with climate change initiatives.

The Trustees take this opportunity to thank AI-Khair Foundation’s generous supporters, volunteers and staff for their continuing faith in the Charity’s commitment and ability to deliver relief and development programmes where most needed.

GOVERNANCE AND MANAGEMENT

The Trustees are appointed and operate in accordance with the Charity’s Trust Deed and Governing Document. The Trustees are responsible for all matters pertaining to governance of the Charity and strategic policy making. The Charity’s management is responsible for implementing programmes and projects approved by the trustees in an efficient and transparent manner, thus fulfilling the stated aims of the Charity – such work is reviewed by and reported back to the Trustees.

The required demarcation is maintained between the governance and executive functions for optimal organisational efficiency.

The Charity’s operations are driven by “horizontal service functions” which serve several “vertical business units” thus leveraging maximum efficiency to reduce operation costs.

The organisation is made up of structured departments functioning as independent units with clear reporting lines. Data Protection procedures are in place and being continually reviewed for compliance. Systems for line management, appraisals, staff development and supervision are in place and continually refined, together with an accountability framework as well as grievance and complaints procedures. These procedures and frameworks are periodically reviewed with a view to improvement. All statutory and regulatory reporting is undertaken in a comprehensive and timely manner to the Charity Commission, HMRC and other stakeholders.

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PUBLIC BENEFIT

The Trustees confirm that they abide by the Charity Commission’s general guidance on public benefit, complying with Section IV of the Charities Act 2011 to have due regard to public benefit whilst in pursuit of its stated aims and objectives.

TRUSTEES RESPONSIBLITIES

The Trustees are responsible for preparing the Trustees’ Report and each annual financial statement in accordance with the law applicable to charities in England and Wales. The Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under the Charity Law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity, its income and application of resources of the Charity for that period. In preparing these financial statements the Trustees are required to:

1. Select suitable accounting policies and apply them consistently;

2. Observe the methods and principles in the Charities SORP;

3. Make judgments and accounting estimates that are reasonable and prudent;

4. State whether applicable accounting standards have been followed.

The Trustees are responsible for keeping adequate accounting records that sufficiently display the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and to show compliance with the Charities Act 2011.

The Trustees, being the ultimate custodians of the Charity, are responsible for taking all reasonable steps to ensure the prevention and detection of fraud and other irregularities. The Trustees have exercised due diligence and care in protecting the integrity of the Charity and have reviewed the financial accounts placed on the Charity’s website in line with UK legislation governing the preparation and dissemination of financial statements. The Trustees confirm that:

• So far as each trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware;

• The Trustees have taken all the steps as per their responsibility as to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is privy to such information.

POLICIES

The Charity maintains a full library of policies which are updated and approved periodically and ensures organisational adherence to them.

The Charity is an equal opportunities’ employer and applies objective criteria to assess merit. It aims to ensure that no job applicant or employee receives less favourable treatment on the grounds of age, disability, gender, marital status, pregnancy, race, religion or sexual orientation, amongst others.

The governance and executive functions pay particular regard to the risk profile and appetite of the organisation and align operations for full compliance with statutory and regulatory requirements.

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Al-Khair Foundation AID DELIVERY GLOBAL FOOTPRINT 2003-2022

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CHECHNYA
GAZA
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SOMALILAND
RWANDA
BURUNDI
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Togo
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Afghanistan Chad Iraq Mozambique Rwanda Togo Albania Chile Jamaica Myanmar Senegal Tunisia Angola Democratic Republic of the Jordan Namibia Sierra Leone Turkey Australia Congo Kenya Nepal Somalia Uganda Austria Ecuador Kosovo Niger Somaliland Ukraine Bangladesh Eritrea Lebanon Nigeria South Africa United Kingdom Benin Ethiopia Malawi North Macedonia South Sudan United States Bosnia and Ghana Malaysia Oman Sri Lanka of America Herzegovina Greece Mali Pakistan Suriname Uzbekistan Burundi Haiti Mauritania Palestine Syria Venezuela Bulgaria Hungary Mexico Phillipines Tanzania Yemen Central African India Poland The Gambia Zimbabwe Republic Indonesia

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When disaster occurs, Al-Khair Foundation is amongst the first on the ground. Our work helps to minimise casualties and provide relief to victims affected by natural disasters and armed conflict. In responding to humanitarian emergencies, the aim of the Charity is to provide immediate relief, alongside more long-term measures to aid the sustainable recovery of afflicted communities.

PALESTINE-GAZA

Al-Khair Foundation has an established base in Gaza from where it has administered relief efforts for many years. The Charity currently looks after orphans, renovates and builds homes, and transports desalinated water to refugee camps.

TURKEY

The heavy rains and mudslides in the northern regions of Turkey came after the devastating wildfires that ravaged the south of the country.

Al-Khair Foundation’s Turkey office organised the delivery of over 400 food packs in cooperation with the Turkish Red Crescent for the families who have been left with nothing following the severe rainfall in the country.

INDONESIA

Al-Khair Foundation provided 300 food packs (rice, eggs, corned beef, flour, cooking oil, tea, sugar, baby/kids food, milk, drinking water), 200 hygiene kits (soap, masks, multivitamin, calamine lotion, paracetamol), 200 recovery packs (mattress, blanket, pillow) and 450 hot meals.

Provided[200 recovery packs] (mattress, blanket, pillow) and 450 hot meals.

Case study

Rola Dahmann, a young student in Gaza City, remembers this mostrecent war as if it was yesterday. The apartment building where she lived with her family was destroyed. They had just moved when the war erupted.

"When we left, we didn't take anything. It just happened before Eid, and all of a sudden, everything was gone,"

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PAKISTAN

Al-Khair Foundation’s goal was to supply to the most vulnerable families in Pakistan, especially women and children, with enough winter supplies including bedding and warm clothing. The impact of this provision was to reduce the suffering caused by the harsh winters and protect them from illnesses thus minimising their health issues. A total of 2,000 beneficiaries were helped facilitated through 300 interventions in 4 districts of Khyber Pakhtunkhwa and Punjab Provinces.

A relief operation was performed by Al-Khair Foundation’s team in District Harnai, Balochistan province in response to a 5.9 magnitude earthquake. 250 food packs were distributed among the victims bringing relief to 2,000 individuals.

2,000 beneficiaries were helped through 300 interventions in 4 districts of Khyber Pakhtunkhwa and Punjab Provinces.

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BANGLADESH

In 2022, floods occurred in many parts of the country. However, the situations were more severe in Sylhet and Kishoreganj districts. Al-Khair Foundation supported the flood-affected people of Sylhet and Kishoreganj with 1,000 large food packs, 2,500 dry food packs, 7,000 cooked meals and provided shelter materials to families.

Al-Khair Foundation distributed warm clothes, blankets and other necessary items to the poor, homeless and other needy people. Around 7,000 winter packs were well received by households in Sylhet, Kishoreganj, Tangail, Sirajganj, Dinajpur, Kurigram, Rangpur, and Patuakhali.

Supported the flood-affected people with

1,000 large food packs,

2,500 dry food packs,

7,000 cooked meals

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AFGHANISTAN

The disaster and conflict affected internally displaced peoples, settled at different locations in the three provinces (Paktia, Khost, and Logar), have been provided with emergency assistance (300 tents) distributed by Al-Khair Foundation.

Al-Khair Foundation team in Kabul and Nangarhar provinces provided assistance to families, which included blankets, pillows and mattress packs. This assistance aimed to help the most vulnerable families through the distribution of 250 kits as per their needs in the harsh winter season so that they would be able to cope with the cold weather in winter and the possible risks will be reduced in the targeted and registered families.

Al-Khair Foundation has helped 400 earthquake affected families based on the rapid assessment which was conducted in Paktika Province. The assistance included clothes, kits, as well as food items distributed to the earthquake-affected families in the Paktika Province.

Al-Khair Foundation targeted 1,200 earthquakeaffected individuals for the provision of emergency assistance through cooked meals distributed to them. 400 individuals were provided with cooked meals in the Paktika Province.

Provided with emergency assistance (300 tents) distributed by Al-Khair Foundation.

1,200 earthquakeaffected individuals were targeted for the provision of emergency assistance

Helped 400 earthquake affected families based on the rapid assessment

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SOMALILAND

This year Somaliland experienced an unprecedented huge fire that engulfed and destroyed the largest market in Somaliland known as Waheen Market located in the centre of the capital city of Hargeisa. Waheen housed so many retail businesses and over half of the traders at the market were women, and 80% were small-time traders selling fruits, clothing, shoes, and household utensils, who depended on the daily income from the market for their livelihoods.

The Waheen Market fire response integrated project was implemented in Hargeisa by Al-Khair Foundation with the collaboration of the National Committee and Waheen Market Committee, reaching 1,500 poor household families affected by the market fire. The Charity responded by providing support to small and medium-sized businesses which supported many poor families in the form of restocking, and cash transfers so that they can re-establish the destroyed infrastructure and buy tools which their businesses depended on such as wheelbarrows, umbrellas, shelving units, and the goods and services they provided.

The Charity responded by providing support to small and mediumsized businesses which supported many poor families.

Ali Omar is an elderly man who owned a grocery shop at Market before the fire, and raised grandchildren. Due to the high cost of living he was struggling to put food on the table and pay school fees and clothing. Unfortunately, he lost everything to the fire which left him emptyhanded, worried and not knowing what to do with this situation. He was selected as one of the Waheen fire response projects and received the food, material and seed money to re-establish his grocery shop. He could not keep the tears from his eyes and is now back on his feet and praying.

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KENYA

More than two million people from 23 Arid and Semi-Arid counties in Kenya were affected by drought and were in dire need of food aid. The National Drought Management Authority had reported that at least 12 counties were on the alert drought phase.

Al-Khair Foundation rallied the support of 20 twenty Muslim organisations in Kenya to respond to the drought situation in Kenya. They delivered 1,000 food packs to four villages in the Tana River, and also distributed 1,800,000 litres of water to 16 villages in the Tana River. They also distributed 1,500 food packs in Marsabit county (Sololo) and 600 food packs in Wajir county (Buna), and additionally distributed 600 food packs in Garissa County. The above-mentioned distributions took place in November and in December 2021.

The Charity also delivered 1,300 food packs across four villages in Lamu mainland, Marafa, Widho, Salama, and Pangani areas.

The resilience of 8,000 families was nurtured to overcome the drought through the provision of food packs. The items within the food packs were carefully selected to ensure beneficiaries could prepare and consume balanced meals rich in the necessary nutrients and macronutrients.

Shanga Shakani is located on the island of Pate in Lamu County. The water is collected by the residents through djabiahs to minimise evaporation in extreme heat experienced on the islands. The Charity delivered two 10,000 litres water tanks, one to serve the dispensary and the other located in a madrassa near the sea to hold water being brought from Lamu island by our partners. 130 households dwelling on the island have improved health due to the reliable source of clean drinking water. There has been a marked reduction in cases of infection of new mothers as a result.

Kilifi County was particularly hard struck by the drought, with an estimated 145,000 families in desperate need of humanitarian relief. Al-Khair Foundation and Kilifi Water and Sewerage Company agreed to form a partnership to deliver water every week to five locations in Kaloleni Subcounty in October 2021 through water trucking. The arrangement was that a water truck will deliver water (17,000 Litres) to each site once a week.

Delivered 1,000 food packs to four villages in the Tana River,

Distributed 1,800,000 litres of water to 16 villages in the Tana River.

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GREECE

Al-Khair Foundation in partnership with Goodwill Caravan, supported their Legal Office for Refugees and Asylum Seekers in Greece over the period of September 2021 to February 2022. The legal office aids the most vulnerable refugees with family reunification, asylum applications and release from detention centres. The project helped over 400 beneficiaries over the course of the project. The project ensures refugees have access to basic rights and knowledge of their rights to help them to navigate through the complex asylum process. Al-Khair Foundation continues to support Goodwill Caravan for providing legal support to asylum seekers in Greece.

POLAND

Al-Khair Foundation provided essential assistance and support to Ukraine refugees coming to Poland and Hungary. The Charity partnered with a local registered organisation in Poland and acquired a passenger van to transport refugees from the border crossing points to refugee camps. The van was also used to provide and transport aid items in Ukraine.

With the assistance of our volunteers, we were able to procure a multipurpose vehicle branded with the Al-Khair Foundation logo and travelled 18,000km over 49 journeys across a period of 4 months.

To date we have provided food packs for refugees in Polish camps (including oil boxes, large boxes of baby food, boxes UTH milk, personal hygiene kits, boxes of tinned meat, sugar, Baby formula boxes, boxes of pasta, boxes tinned and dried fruits flour and rice). Also, palettes of water bottles, Medical Supplies to hospitals in Ivano- Frankisk, Mykolaiv and essential food items were also delivered to regions of Kyiv, Mykolaiv and nearby villages. Aid was also provided to a children’s summer camp (Chernivtsi) and other orphanages.

Helped over 400 Refugees over the course of the project in Greece

Al-Khair Foundation providing essential assistance and support to Ukraine refugees coming to Poland and Hungary.

ANNUAL REPORT 2022

Al-Khair Foundation, with the support of its various branches in UK (Birmingham, Bolton, Bradford, Glasgow and Leicester) fully engaged with the local councils, schools, YMCA, communities, communitybased organisations, including local businesses and supermarkets and other charities for reaching to all those in need of support.

The UK Programmes team delivered food packs, clothes, cooked foods, tin food, fresh fruits and vegetables etc. along with providing cooked food, sleeping bags and other essential items to over 300 homeless people on a weekly basis.

Some of Al-Khair Foundation branches are also organising classes for women in English and Arabic. Activities include sewing, crochet, knitting, dropin advice and form filling service and afternoon tea. These classes target non-working women and encourage them to integrate within the society and develop themselves.

The doors of the branches are open to help everyone like refugees, asylum seekers and people who are financially struggling. Al-Khair Foundation has received donations from Morrisons and Asda for essential food items to distribute to needy families. We received regular supplies for our food bank and had a grant from Asda to buy sewing machines and accessories to run the sewing classes. In the branch we accept the clients, who are referred by Leicester City Council, Red Cross and Family support workers from schools and other organisations.

Al-Khair Foundation’s volunteer teams have also helped Bolton Council in litter picking and keeping local areas clean. These are of fundamental importance being a high concern for local residents.

We help and support the refugees and asylum seekers in filling out forms and referring them to the appropriate authorities for their respective cases.

Mental health awareness and counselling meetings were facilitated through the branch offices via a qualified counsellor. Internal and external discussions have taken place and have recognised the need for raising awareness around mental health. We are in the process of arranging free courses for our local community in meeting these needs.

• The UK Programmes team delivered essential items to homeless people on a weekly basis.

Some of Al-Khair Foundation branches are also organising classes for women in English and Arabic.

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Al-Khair Foundation’s community outreach programmes Promote humanitarian efforts in support of wider communities in UK and globally.

In addition to delivering the community outreach programmes, the Branches are also instrumental in organising various fundraising local initiatives through collaboration with local supermarkets, local businesses, mosques and street collections, organising fundraising events, and food stalls amongst others. This not only helps the organisation in fundraising but enables Al-Khair Foundation branch staff to be fully engaged with the community in creating awareness regarding Al-Khair Foundation programme activities. These outreach activities keep the volunteers and community members, including women and children motivated to be part of a cause to alleviate poverty and make a difference without compromise.

During the year, Al-Khair Foundation also took the initiative of organising a series of events for reaching out to those who would like to be part of the events & challenges opportunities. The key objectives are:

a) Create awareness amongst wider UK communities about Al-Khair Foundation’s vision, role, ethics and achievements as an International Humanitarian Charitable Organisation.

b) Promote Al-Khair Foundation’s humanitarian efforts in support of wider communities in UK and globally.

c) Developing strong affiliations to integrate supporters beyond faith and community bounds.

d) Liaison with branches (local and international) for induction/ Registration of Volunteers for various Events and Challenges.

During the year, despite the challenges faced due to Covid situation, the Branches were able to successfully implement various events, by engaging over 30 volunteers who raised funds by participating in events like Sky Diving, Winter Ben Nevis Challenge and the Eid Bazaar at Oldham. The team has developed a calendar of events and has shared all these events and challenges on Al-Khair Foundation’s website and are encouraging the volunteers to participate and be part of a change.

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Water is vital to life, and should be accessible and affordable to all. Al-Khair Foundation works to ensure that people in every corner of the world may benefit from clean water, sanitation and hygiene facilities.

During the reporting period, Al-Khair Foundation installed 1,300 handpumps in Asia, 16 shallow wells, and 55 water wells also. The work is in progress on the remaining hand pumps on behalf of donors.

YEMEN

Over 80% of the population relies on humanitarian aid, and more than half of the population does not have access to clean water.

We responded to the water crisis in Yemen, by establishing 4 new water wells in the marginalised areas. As a result of establishing an artesian water well with an electric pump in the southern Kefah Area in Yemen, the well was able to use solar energy to power a pump that fills two 3,000 litre tanks. Approximately 500 families now have access to uncontaminated water through multiple taps at the base of the tanks. This enables them to fill jerry cans and bottles with clean water for drinking, washing and cooking.

The Charity also constructed shallow water wells with electric pumps in the Taz Governorate. The water well supplies potable water to approximately 600 displaced and vulnerable families in the Taz governorate where there is ageing infrastructure, and other harmful impacts of war and extreme poverty.

The well was able to use solar energy to power a pump that fills two 3,000 litre tanks

500 families now have access to uncontaminated water

“Now, we no longer struggle to get clean water. We can get as much as we need and the water source is only a few metres from our houses. We no longer have to walk a long distance, just to collect unsafe water. There was no functional water source in our area ,” says Abdulmajeed from Taz, which is known for its scarcity of clean water.

“Whenever we managed to get water, we had to spend a great deal of time and effort before we could use it. We would depend on water trucking to fill up the water tank at our health home, but we could barely afford the cost of this, so we struggled.”.

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MYANMAR

Work in Myanmar included building Artesian wells benefitting 19,000 people making it easier for them to bring potable water as they eliminated the hardship they had been previously suffering.

BANGLADESH

Bangladesh is one of the most overpopulated countries with almost 70% of people living in rural areas, suffering greatly from the scarcity of pure drinking water. Especially in these rural areas, almost 97% of the population depends on groundwater for mitigating their needs for drinking water. Al-Khair Foundation took initiatives to implement 156 tube wells and 20 deep tube wells in 7 districts (Kishoreganj, Mymensingh, Magura, Rajbari, Satkhira, Cox's Bazar, and Sylhet). 3,560 families benefitted through these installations, thus reducing the number of water-contaminated diseases and time-consuming water collection activities.

AFGHANISTAN

The communities were supported to construct or rehabilitate appropriate water supply systems, such as water wells, and water hand pumps. Approximately 50 households and 350 individuals were provided with safe and clean drinking water in the Kama district of Nangarhar. The water wells’ project was delivered successfully, by providing approximately 4,000 households with safe and clean water. The two solar wells are also directly benefiting 2,800 individuals’ daily water requirements.

Building Artesian wells benefitting 19,000 people

Afghanistan water wells’ project was delivered successfully, by providing approximately 4,000 households with safe and clean water.

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SOMALILAND

The Charity provided safe, clean water to hundreds of displaced, poor communities in three internally displaced people’s camps in Hargeisa suburbs, a special needs centre, and the Edna Hospital, to ensure beneficiaries obtain safe water for consumption. The Charity’s water truck also obtained safe and clean water from privately owned boreholes 40 km north-east of the city whose water is clean and is consumed by a greater percentage of the city population. There are identified water distribution points, each water point receives 10,000 litres per week by the Charity.

KENYA

The Charity delivered 2,100 water roller drums to households in Kilifi, Tana River, Lamu, and Kwale Counties. The delivery was part of a 3-phase delivery of roller drums in four counties across the country.

The Charity delivered 2,100 water roller drums to households in Kilifi, Tana River, Lamu, and Kwale Counties.

“Assalamu alaikum Warahmatullahi Wabarakatuh, my name is Salima Kassim Mumia and I want to thank the donors for this gift of water. We used to fetch water in faraway locations, especially during the dry season and this could take a toll on our children and the older women. We are happy that we have the gift of water and we are very grateful. I pray that may Allah continue to bless you so that you can bless others the way you have blessed us.’ Salima

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Water roller drums seek to address the challenges that women and school-going children face in search of water. Water roller drums provide unique benefits over traditional modes of carrying water; they allow users to transport five times more water which reduces the time spent looking for and collecting water.

Mpeketoni Community Water Project was started by the first President of Kenya who relocated some families from the mainland to Mpeketoni which is traditionally known to be fertile and with fresh water from Lake Kenyatta. As a response, the Kenya field office constructed a solar-powered water tower system consisting of a 75feet borehole, a 6-metre-high water tank tower with a 10,000-litre tank, a plumbing system to transfer water to three distinct water points, each 100 metres apart, and a solar power-pumping system to pump water to the tank and deliver water to the 3 distinct water points. This improved the food production as the water is now being serviced to continue irrigation practices. Consequently, it significantly improved the living standards of the 400 households as they use the water not only for their daily use but also to maintain subsistence farming and animal husbandry.

The Charity also distributed 180 ceramic water filters to residents of Harakoba.

Al-Khair Foundation supplied the donated 3,000-litre water tank from a donor that was placed on top of the existing concrete water tank. The tank was then connected to the water point via pipes which also connect a washroom area. Several taps were also fixed to make it easy for the residents.

Constructed a solarpowered water tower system consisting of a 75feet borehole, a 6-metrehigh water tank tower with a 10,000-litre tank.

The Charity also distributed 180 ceramic water filters to residents of Harakoba.

"Assalam Alaikum wa Rahmatullahi wa Barakatuh, I am Basra Ahmed, resident of Mokowe village in Lamu County. We are very grateful to Al-Khair Foundation for giving us these water roller drums. On behalf of the residents of Mokowe village, we want to thank the Foundation, because we used to have difficulties accessing water. For us women we used to get some challenges when we went to fetch water, we walked long distances carrying our jerrycan, but now even though we still walk long distances for water, it is easier to roll these drums. We are thankful to Al-Khair Foundation for solving our challenges and making our work easier. Thank you!”

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When families are tragically torn apart due to war, poverty or natural disaster, the Al-Khair Foundation is there to offer a helping hand and get them back on their feet.

GAZA

Al-Khair Foundation's team has been providing food vouchers to the affected and vulnerable families, who present these vouchers to local shopkeepers to buy food items. This approach not only maintains their dignity but gives them a sense of being in control. This approach also allows the shopkeepers to earn their living. As part of the ongoing project activities, Al-Khair Foundation teams also engage with local contractors, who provides the construction materials to the families, where families also contribute in-kind labour, for the construction/ repair of houses. These small initiatives keep the local economy moving at a small scale. The situation in Gaza is very challenging, so these small initiatives are making a difference to the daily lives of these families, providing them opportunities to sustain their livelihoods.

PAKISTAN

Distributed 100's of food vouchers and fresh meat to orphans

Al-Khair Foundation conducted a rapid needs assessment to help the individuals by distributing of 170 wheelchairs to the needy, deserving, and most deprived ones across 14 districts of Punjab, Khyber Pakhtunkhwa, Balochistan, and Azad Jammu & Kashmir. A total of 200 beneficiaries were helped during the distribution - this helped them to achieve a degree of independence.

These small initiatives by Al-Khair Foundation empowers the disabled individuals at local levels, as a result they are less dependent on other family members for their mobility. The individuals who received wheelchairs not only felt empowered but are able to do some small businesses (day to day selling of vegetables/ fruits, managing tuck shops, selling sweets, etc.).

Distribution of 170 wheelchairs to the needy, deserving, and most deprived ones

We have witnessed that with the support of our donors, Al-Khair Foundation is continuing to make a difference to the daily lives of most vulnerable families in remote locations, by making them feel a valued member of their society.

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BANGLADESH

Under the Charity’s thematic area of livelihood, we have undertaken a project to support the disabled population and the destitute, impoverished women, especially widows without any earning source by providing 200 wheelchairs to disabled individuals and 200 sewing machines to destitute women.

This project was initiated in the year 2021 to improve the lifestyle of the poor, disabled individuals especially women who do not have a proper earning source or any economic support, and to provide an earning source to the destitute, impoverished women. This project was delivered in the districts of Sirajganj, Sylhet, and Cox’s Bazaar.

KENYA

We distributed 15 street food carts to beneficiaries across Mathare urban slums. The project was funded by zakat donations. The project was structured in such a way that, the beneficiaries received business start-up and management training before they were given the food carts as well as start-up capital in form of food merchandise. The beneficiaries, therefore, owned the food carts along with the start-up merchandise based on the Islamic principles of zakat distribution.

SOMALILAND

In August 2021, Al Khair Foundation team carried out a full assessment of the Burao cattle farm and the borehole, in this assessment the team found out that the farm is suitable for camel farming, while the borehole was fully functional with abundant water.

The Al-Khair Foundation Somaliland staff began the implementation of the Al-Khair cattle farm project in September 2021. We started the animal farm establishment with camel rearing by purchasing 40 lactating camels and 100 young age male camels for the Qurbani charity project.

This is the first project of its kind to be implemented by AlKhair Foundation. Despite the drought's negative impact on camel milk production and meat, the project is making good progress and hopes to cover the intended objectives with success.

200 wheelchairs to disabled individuals and 200 sewing machines to destitute women.

Started the animal farm by purchasing 40 lactating camels and 100 young age male camels for the Qurbani charity project.

ANNUAL REPORT 2022

• Over 620,000 people

• have access to our Al-Khair Hospital in Gaza. In the year over 165,000 patients received treatments there.

The Charity provided over 5,000 free treatments in Bangladesh.

• are seen and

• 600 patients treated in Pakistan Gujar Khan health camps daily.

• In Kenya, over 2,000 mothers and children received free healthcare support in Dadab refugee camp and the project benefits 22,000 individuals

• In the year 10 mobile health units were established and 420 wheelchairs distributed in Pakistan.

• Medical camps were organised throughout the year in Gaza, Kenya, Bangladesh, Somaliland, India and Pakistan.

PALESTINE-GAZA

The five-storey Al-Khair General Hospital stands to be one of the fastest construction projects in the history of Gaza, providing professional healthcare provisions to around 620,000 people in the region. The hospital also provides specialised maternal healthcare facilities, with a capacity to treat over 120 women and children a day – in addition to a 100 person daily outpatient clinic.

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Ten-year-old Rafah Al Bardawil lives in the Al-Barajna Refugee camp in Lebanon and suffers from liver cancer. Rafah was in urgent need of surgical intervention to save her life, but unfortunately, the cost of the surgical operation exceeded $8,000 which the family could not afford.

Al-Khair Foundation provided a grant of $8,000 for Rahaf's surgical operation through a needy patient’s fund program in Lebanon.

“I am happier now, I play and I made new friends” said Rafah. “They told us we can play, defy the disease and defeat it”. Rafah’s mother said the Al-Khair Foundation has transformed her daughter’s life.

“She was depressed and lonely all the time, she likes drawing and now she feels her life has value,” she said.

“I am happy that I have recovered again,” Rahaf said, “with the help of Allah and those around me.”

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PAKISTAN

Al-Khair Foundation under its health support program initiative facilitated marginalised and most deprived communities of remote areas of Tehsil Gujjar Khan, District Rawalpindi, and Tehsil, Sohawa, Dina, and District Jhelum with the collaborative effort of the Health Department of Punjab. This health support program comprises both preventive and curative measures. Preventive measures include a vaccination programme of the health department that is basically on Covid-19, measles-rubella, and polio vaccinations. A total number of 2,000 individuals including men, women, children, and elders were vaccinated in 57 camps.

Moreover, on curative measures, Al Khair Foundation also provided free medical facilities for vulnerable communities at their doorstep by providing free pick and drop service through free ambulance service, free medical check-ups from specialised doctors, free medicines as per need and recommendations of doctors, and free tests as prescribed by doctors’ teams. A total number of 14,000 patients were treated. The health of mothers and children is of the utmost priority to Al-Khair Foundation, as a result, 1,400 mothers were facilitated through free ultrasound and sugar testing.

14,000 patients were treated in Pakistan.

1,400 mothers were facilitated through free ultrasound and sugar testing.

BANGLADESH

The 'Emergency Ambulance Service for Disasters Victims' project has been formulated to conduct emergency rescue operations for people affected by various natural and manmade disasters, transport them to hospitals to provide emergency treatment. The project has already benefitted 5,000 people through emergency interventions.

Al-Khair Foundation also provided free eye treatment camps and cataract surgery, and the Charity’s health projects have been providing medical support to the Rohingya community since 2020.

ANNUAL REPORT 2022

SOMALILAND

Balimatan health centre host community to reduce the incidents of maternal and child mortality/morbidity, deal with dehydration and malnutrition.

The Balimatan IDP camp, situated 80km south of Hargeisa is a high-density settlement of internally displaced people. It is home to 18,000 people who fled from their homes due to the droughts, which devastated and claimed their livelihoods. The host community shares a small health facility consisting of three rooms with limited resources. Therefore, the small health centre was unable to cope with the increasing number of cases. During the reporting year of 2021-2022, Balimatan health centre with the collaboration of the Charity and Somaliland Ministry of Health continued serving the IDPs and host community to reduce the incidents of maternal and child mortality/morbidity, deal with dehydration and malnutrition as well as introduce antenatal and post-natal care services.

KENYA

Dadaab is in the Garissa district in the North-eastern Province of Kenya and is home to approximately 300,000 refugees, primarily (97%) from Somalia. The Dadaab refugee complex has a population of 220,000 registered refugees and asylum seekers as of the end of July 2020.

Al-Khair Foundation has been operating a maternity wing in partnership with the Ministry of Health in Garissa where the Charity is currently offering maternity services to both refugee and host communities. 24,000 patients were treated, including 2,000 refugees.

Al-Khair Foundation Medical Centre in Kibera offers free maternal and child health services to residents of Kibera, Nairobi County, and surrounding estates. The Charity has provided services such as antenatal care, postnatal care, referrals, family planning sessions, immunisation, growth/ weight monitoring, deworming, and other consultations. An average of 12,000 patients were treated.

Al-Khair Foundation Kenya was part of the medical camp organised by Maahad Daawah Organisation, Kajiado County Government, and Angel Welfare and Education Trust (AWET). A total of 2,000 residents of Maili Tisa, Ngatatoek, Bisil, and Namanga within Kajiado County benefited from a free medical camp.

“Asalaam Alaikum, my name is Fatma Halidi from Makina, Kibera. This camp has helped; I was experiencing problems with acidity, and I have also gotten my second jab of the vaccine in this camp, and I want to thank everyone who has made this possible. Thank you.”

ANNUAL REPORT 2022

Education is key to breaking the cycle of poverty. Al-Khair Foundation strongly values the power of knowledge and spreads the joy of learning to people in all corners of the world.

Our project assisted in providing a brighter future for 700 children.

PALESTINE-GAZA

In September 2021, Al-Khair Foundation introduced a project named ‘Back to School’, targeted toward the children of Gaza. Education in Gaza has been seriously disrupted due to ongoing armed conflict which has destroyed academic facilities. Our project assisted in providing a brighter future for 700 children.

PAKISTAN

Al-Khair Foundation has adopted 5 schools in the Southern Punjab region and is constantly working for improvements. The Charity had conducted a gap analysis where it identified the areas for improvement. It has also identified that renovation of schools is of utmost importance as it develops the interest of the students as well as teachers. Currently, there are 45 teachers including 34 female teachers and 11 male teachers who have directly benefited from the Charity’s education intervention.

BANGLADESH

Al-Khair Foundation took the initiative to make students attend their first day of school in the festive mode in association with a U.S.-based charity organisation “Life”. At Kishoreganj districts, Al-Khair Foundation sponsored 500 primary school-going children with 11 school items (school bag, water bottle, tiffin box, pencil box, geometry box, colour pencils, sharpener, eraser, pencils, pens, and notebooks).

Seerah Conference Sylhet

On the occasion of Eid-e-Miladun Nabi (birth anniversary of the Holy Prophet Muhammad PBUH), a conference of Islamic scholars took place in the heart of Sylhet city. 2,000 madrasah students took part in this festive commemoration. Al-Khair foundation sponsored the whole event contributing to the food, accommodation, venue, and other costs.

Sponsored 500 primary school-going children with 11 school items

ANNUAL REPORT 2022

SOMALILAND

The Al-Khair school has been one of the leading charities providing Primary with supplementary Secondary education in Hargeisa, Somaliland since 2011.

The school has 45 teachers, including 9 administration staff with over 2,500 students. The school provides quality education for the students and in the last evaluation became one of the leading quality education schools in Somaliland. Since the school is registered at the Ministry of Education and Science, the school has been participating in the national examination for the last ten years and the academic performance of all students was outstanding. For the last academic year, 109 students graduated from the school, and the next year the school hopes that the number of graduating students will increase.

KENYA

The Charity’s Kenya Field Office staff distributed 50 Education School kits to pupils under Grade 3 in partnership with the Kibera Ramadhan Initiative. The pupils received a school bag, stationery, and educational toys to enhance their education. The project was commissioned in June 2022.

The school in Somaliland has 45 teachers with over 2,500 students.

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Our Muslim identity underpins everything that we do at Al-Khair Foundation. We follow the teachings of Islam and help others to fulfil their religious obligations as well.

RAMADAN PROJECTS

We are pleased to share that with the blessing of Allah, during Ramadhan, Al-Khair Foundation’s dedicated field teams/ hardworking and committed volunteers along with our trusted partners in non-field offices delivered a massive Ramadhan – 2022 Food Packs delivery, by distributing over 60,700 food packs against an initial plan of 23,100 in 36 countries providing over 11 million meals.

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Distributed over
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60,700 food packs against an initial plan of 23,100 in 36 countries

“Assalamu Alaikum, my name is Yusuf, and I want to thank Al-Khair Foundation for bringing us food. I also thank the Almighty Allah for this organisation. We are all in need and very willing to receive whatever comes from the organisation any day any time. We also want to thank the service providers who reach us in our locality. Assalamu Alaikum wa Rahmatullahi Wa Barakatuh.”

ANNUAL REPORT 2022

QURBANI PROJECTS

With the blessing of Allah, Alhamdolillah the 9 Al Khair Foundation field teams and other partner organisations successfully implemented the Religious dues Qurbani programme. The Charity organized Qurbani programmes in over 22 countries (including Kashmir) to benefit over 2.8 million individuals by providing them meat of healthy animals (goat/ sheep, cow and camels). This year Al Khair Foundation delivered Qurbani programme for an amount of £1.23 million with 3,015 Goats, 3,001 Cows and 175 Camels.

“As-salaam Alaikum my name is Mohammed Issa Somobwana an elder here at Kizingitini village and I would like to thank Al-Khair Foundation for remembering us not only during Ramadan but also during this period of Dhul hijjah with Qurbani meat too in our village and across other villages too. We thank them for their generous distribution of meat to our village. May Allah (SWT) reward those who made it possible. Shukran.” – Mohammed Issa Somobwana

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over 22 countries
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2.8 to benefit over million individuals , for an amount of £1.23 million with 3,015 Goats , 3,001 Cows and 175 Camels.

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Al-Khair Foundation renovates, constructs and provides shelter to communities affected by natural disasters and emergencies, putting a roof over the heads of those who are most vulnerable.

PALESTINE-GAZA

In Gaza, 16 homes belonging to needy families were renovated by the Charity through maintenance and repair effort. These 16 families were identified in Gaza through collaboration with the local community and the Charity then carried out maintenance, repair, and renovation projects for their homes.

In Gaza, 16 homes belonging to needy families were renovated.

Case study

Mahmood and his family have been living in a shelter made of metal sheets since their home was damaged in the 2021 conflict in Gaza. This winter, as temperatures plummet below five degrees Celsius, Mahmood’s family finds themselves without enough heating or blankets, struggling to survive the harsh weather. Unfortunately, their story is far from an isolated case.

Gaza is subject to import restrictions and poor access to construction materials. Economic conditions continue to deteriorate. “I have been suffering since 2021 especially when the winter comes…after the conflict, everything was destroyed. All the things that I had fixed and repaired in our home were destroyed,” says Mahmood.

Mahmood’s story highlights the struggle of many families in Gaza as well as those without adequate shelter around the world, including refugees and displaced people. With your support, we can help them get through the winter months. “I am not asking for a miracle. I just want to live like others”, he says.

Al-Khair Foundation managed to help people like Mahmood to repair and improve their homes, so their families are better protected from the wintry weather.

“You can’t imagine how happy we feel now when we got our home fixed and repaired,” he says. “Thanks to AlKhair Foundation and all the donors for changing my family's lives.”

ANNUAL REPORT 2022

INDONESIA

Masjid Laa Tahzan-

The Charity funded the building of Masjid Laa Tahzan in Lebak, Banten. This masjid was built in the Al Qudwah Boarding School area. It is one of the largest in Lebak, Banten and will benefited the community and also Qur’an learners and students there.

Masjid Al Raheem-

This masjid is built up in a waqf area that not only will provide a worship place but also the madrasa and school building to develop Islamic education for people around the area. The Charity funded the building of Masjid Al Raheem, Indramayu, West Java.

PAKISTAN

The Charity constructed 54 houses and benefitting 366 homeless.

Mosques are the centre of any community where people can congregate for their five daily prayers and Friday congregation sermons. A mosque serves as a place where Muslims can come together not only for prayers but for information, education, and meetings. Since the areas we worked in were remote they did not previously have access to any masjid.

Constructed 54 houses and benefitting 366 homeless in Pakistan.

Case study

Nousia Bibi, a beneficiary of 2-bedroom house and wheelchair

“My name is Nousia and my 12-year-old son is disabled since birth and I have to handle him with great difficulty. I have two daughters who are in Prep and Grade two 2. When it rains, water drips from the roof of our dilapidated house that has now become almost uninhabitable. Both of my brothers not only manage their financial woes but they are also taking care of my children. Al Khair Foundation is building a house on the 5-marla land which my father has given to me. This house has two rooms, a washroom, and a courtyard. It is not possible to continue to live in the current house due to its dilapidated structure. We sincerely thank Al Khair Foundation for helping us in our difficult time and we are grateful to them for building us a home to live in. May Allah bless them for this deed and reward the donors of Al-Khair Foundation.”

“Al Khair Foundation has also given this wheelchair to my son and it has comforted me a lot. Carrying him without a wheelchair was very difficult. Wherever we took our child, we had to carry him in the luggage cart. I’m highly thankful to the donors for donating this wheelchair”

ANNUAL REPORT 2022

BANGLADESH

The Charity funded the construction of two mosques complete with an ablution area, toilet, carpet and speaker system in Bangladesh. These have become community hubs benefitting the area.

Mullazim Hussain, Chaki Rang Pur, Chakwal beneficiary of two bedroom house Mullazim Hussain, resident of village Chaki Rang Pur in district Chakwal lives with his 6 children and wife. He was thankful to Al Khair Foundation for the construction of a two-bedroom house on his land.

ANNUAL REPORT 2022

SOMALILAND

Sahalay Mosque Construction-

Salahlay village/IDP Camp is situated 80 km southwest of the Capital city of Hargeisa.

In this intervention, the Charity’s Somaliland office built a small mosque in Salahlay district IDP settlement. The mosque accommodates 400 persons, and apart from its daily prayer services the mosque will also serve as a religious education centre for Islamic studies for many children from poor families who will benefit and receive free education from the mosque in the morning, afternoon and in the evening. By the grace of Allah, the host community contributed a chunk of land 12m x 15m in Salahlay and asked the Charity’s Somaliland office for the construction of the mosque.

BAYT UL HIDAYA MOSQUE

The Masjid construction project activities started in March 2022 and were completed successfully in July 2022. This religious project was implemented in the Salahlay district of the Howd region of Somaliland.

MOSQUE CONSTRUCTION PROJECTS

During the reporting period, Al-Khair Foundation field teams in various countries in Africa, Middle East and Asia region constructed 254 mosques of various sizes, from Grand Jamiah mosque to Medium and small mosques. The work is continued on the other mosques donated by our generous donors.

Al-Khair Foundation field teams in various countries in Africa, Middle East and Asia region constructed 254 mosques of various sizes.

“Alhamdulillah and thank you for providing us with this beautiful mosque. Our community is very grateful for the donor.”

ANNUAL REPORT 2022

Al-Khair Foundation appreciates our generous donors, who currently support 1-2-1 orphans sponsorship programme by donating towards the education of orphans.

In addition to this, our donors are also supporting over 500 children, who are becoming Hafiz under our Hifz programme in Bangladesh.

500 children are becoming Hafiz under our Hifz programme in Bangladesh.

ANNUAL REPORT 2022

PAKISTAN

Al-Khair Foundation, in collaboration with Sarwar Foundation installed two water filtration plants in Gujar Khan at Government Associate College for Women and MC Girls High School. The Charity also organised health camps as well in Gujar Khan on a regular basis. The filtration plants and medical camp were inaugurated by the former Governor of Punjab, Chaudhry Mohammad Sarwar in December 2021. Imam Qasim, the Chairman of the Al-Khair Foundation, Maulana Abdul Khabir Azad, Chairman Ruete-Hilal Committee and local dignitaries were also present at the ceremony.

ANNUAL REPORT 2022

for the year ended 31 July 2022

The financial statements of the Charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the accounting policies set out on pages 51-52 and comply with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the 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) [Charities SORP (FRS102)] and the Charities Act 2011 and Companies Act 2006.

RESULTS IN OVERVIEW

The total income for 2022 was £27.7m (2021: £26m), consisting of £20.6m (2021: £20.5m) restricted income and £7.1m (2021: £5.4m) unrestricted income. Despite the COVID-19 pandemic continuing in the financial year, our overall income has increased by 6% compared to the previous year’s income. We are thankful to our donors and supporters for their generous donations and support for our charity. We carried forward £4.5m of restricted funds for multiple projects in the next financial year.

The net overspend for the year £2m (2021: surplus £622k)

made up as follows:

• net outgoing from the unrestricted fund of £1.8m (2021: surplus £1.6m) covered from the previous year’s fund to finance unrestricted charitable projects.

• net outgoings of £200k (2021: net outgoings of £983k) on the restricted programme covered from the brought forward funds from the previous year.

Total reserves, therefore, reduced to £18.8m (2021: £20.8m), made up as follows:

• the unrestricted general fund of £13.3m (2021: £12.3m), which include £6.6m (2021: £6.6m) of unrestricted designated fund for fixed assets, leaving a free reserve balance of £6.7m (2021: £5.7m); which is above our reserve policy limits.

• unrestricted programme funds of £872k (2021: £3.7m) received from individual donors and held at the year-end to be spent on ongoing programmes in subsequent years.

• restricted funds of £4.6m (2021: £4.8m), reduced by £200k due to programmes carried out using the previous year’s unspent fund. The funds remaining at the end of the year are to be spent on new and ongoing programmes in future years.

INCOME

The Trustees are pleased to confirm that the Charity’s overall income increased by 6% to £27.7m (2021: £26m) compared to the previous year. Regular giving, campaigns, appeal income and income from Al Khair Foundation’s partners which together constitute voluntary donations increased significantly by 9% to £23.1m (2021: £21.3m). Trustees extend their gratitude to the generous community of our donors. We successfully secured over £2m of institutional grants during the year.

These results, coupled with the Charity’s aid-delivery model, continue to instil the required confidence to secure donor loyalty and support for the Charity’s activities.

We continued to maintain a satisfactory level of unrestricted funds for the Charity. During the financial year, the Charity raised £7m of unrestricted income (2021: £5.4m), a significant increase compared to the previous year’s income.

THREE YEARS INCOME TREND (£m)

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30
25
7
5
20
5
15
10 21 21
15
5
-
2020 2021 2022
Restricted Unrestricted
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EXPENDITURE

Total expenditure for the year ended 31 July 2022 was £29.7m (2021: £25.4m).

The expenditure on charitable objectives was £28.8m including primary and secondary school expenditure (2021: £24.7m) which was £4.1m more compared to the previous year. The expenditure for the year matched the additional income for the financial year.

The breakdown of charitable expenditure is shown in Note (5). The split between our Humanitarian and Development programme deliveries was 50:50 respectively (2021: 52:48).

The Charity recovered £1.4m (2021: £1.6m) of fundraising and support costs from gift-aid tax reclaim from HMRC.

ANNUAL REPORT 2022

for the year ended 31 July 2022

THEMATIC EXPENDITURE

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Economic
Rehabilitation ,
empowerment
2%
, 1%
Religious Humanitari
dues , 29% an relief ,
10%
\
Protection Education ,
and care , 35%
14%
WASH , Healthcare
6% , 3%
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NET ASSETS

The Charity’s balance sheet shows net assets of £18.8m, compared to £20.8m in the previous year, representing a decrease in operational working capital and reserves.

FINANCIAL RISK

The Trustees have the overall responsibility for ensuring the Charity has an appropriate system of controls, financial and otherwise, across the entire organisation to provide reasonable assurance that:

• Its assets are safeguarded against unauthorised use or disposition,

• Proper records are maintained, and that financial information is reliable,

• The Charity complies with all relevant laws and regulations.

Cash flow risks are minimised by setting an appropriate reserves’ policy, including adequate levels of working capital, and close monitoring of unrestricted funding flows from donors.

RESERVES POLICY

Unrestricted reserves are defined as general funds and are available to enable the Charity to meet its objectives. Net free reserves are defined as unrestricted reserves less any designated funds and the value of tangible fixed assets.

A reserves’ policy aims to ensure that a charity’s ongoing and future activities are reasonably protected from unexpected financial risk(s). These includes:

• unexpected increase or decrease in funding streams or costs,

• working capital required to meet cash flow needs,

• specific funds required to meet unexpected one-off expenditure impacts.

Following an Annual Review, the Trustees endorsed the reserves target of £3.5m, to provide against key risk items:

• hold a level of reserves to provide going concern continuity,

• increased competition in the charity sector and volatility of unrestricted income funding to guard against donation income downturns,

• emergencies requiring a rapid response (where affected fundraising would occur after the emergency),

• a minimum of six months’ operational costs in the event of a donation income downturn.

Currently, Charity’s total reserves stand at £18.8m, net free reserves stand at £6.7m (2021: £5.7m), designated/ tangible fixed assets fund at £6.6m (2021: £6.6m) and the unrestricted programme fund stands at £872k (2021: £3.7m).

On 31 July 2022, Charity’s restricted reserve funds were £4.6m (2021: £4.8m). The restricted funds are committed funds that will be spent on earmarked programmes in subsequent years. The Charity’s programme/projects’ delivery is such that funds are required to be held as cash and cash deposits. The Charity’s unrestricted free reserve funds are also held in cash and focus on the security of assets. As a result, these are not invested for long-term returns.

After reviewing the Charity’s forecasts and plans and its reserves, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operation for the foreseeable future. The Charity, therefore, continues to adopt the going concern basis in preparing its financial statements.

TRADING SUBSIDIARIES

The Charity’s wholly-owned subsidiaries carry out trading activities for the Charity. The accounts reflect nominal profit in each subsidiary's accounts (2021 nil). Such profit is usually transferred to the Charity.

The Trustees’ Report, including ongoing and proposed activities and strategies, was approved by the Board on 20 December 2022 and signed on its behalf on 20 December 2022 by:

Imam Qasim Rashid AHMAD

Trustee

ANNUAL REPORT 2022

for the year ended 31 July 2022

Opinion

We have audited the Consolidated Financial Statements of Al-Khair Foundation for the year ended 31 July 2022 which comprise the Statement of Financial Activities including Income & Expenditure, the Balance Sheet, the Statement of Cash Flows and notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

• give a true and fair view of the state of the group’s and company’s affairs as at 31 July 2022 and of the group’s incoming resources and application of resources including its income and expenditure and of the group’s cash flows, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

Basis of opinion

We conducted our audit in accordance with International Standards 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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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.

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the accounts are prepared is consistent with the accounts; and

• the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report exception

Conclusion relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or

• the trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 or the Charities Accounts (Scotland) Regulation 2006 (as amended) requires us to report to you if, in our opinion.

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the accounts are not in agreement with the accounting records and returns; or

ANNUAL REPORT 2022

for the year ended 31 July 2022

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the company is not entitled to claim exemption from preparing a strategic report due to it being a member of an ineligible group.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement, the trustees, who are also directors of the charitable company for the purposes of company law, are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud to error.

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

Auditor’s responsibilities for the audit of the accounts

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.

risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The

Stephen Seifert BA FCA (Senior Statutory Auditor)

For and on behalf of

Elliot, Woolfe & Rose Audit and Advisory Services LLP Chartered Accountants Statutory Auditor Elizabeth House 54-58 High Street, Edgware, HA8 7TT

Date: 21December 2022

ANNUAL REPORT 2022

CONSOLIDATED STATEMENT OF

(incorporating an income and expenditure account)

for the year ended 31 July 2022

Notes INCOME FROM Donations and legacies 2 Primary and Secondary school 3 Institutional Grants Other activities: Investment and other income 4 Total income EXPENDITURE ON Raising funds Primary and Secondary school Charitable activities Charitable activities Total expenditure 5 Net income / (expenditure) and net movement in the funds for the year Net movement in funds Reconciliation of funds Funds balances brought forward Funds balances carried forward	2022 Unrestricted Funds £ 6,945,706 - - 117,286	2022 Restricted Funds £ 16,177,314 2,095,774 2,340,165 -	2022 Total £ 23,123,020 2,095,774 2,340,165 117,286	2021 Unrestricted Funds £ 4,957,901 - - 479,569	2021 Restricted Funds £ 16,324,227 1,852,325 2,376,741 -	2021 Total £ 21,282,128 1,852,325 2,376,741 479,569
	7,062,992	20,613,253	27,676,245	5,437,470	20,553,293	25,990,763
	621,493 88,693 8,136,658	217,996 1,913,742 18,693,889	839,489 2,002,435 26,830,547	505,694 123,596 3,203,079	194,995 1,835,777 19,505,140	700,689 1,959,373 22,708,219
	8,846,844	20,825,627	29,672,471	3,832,369	21,535,912	25,368,281
	(1,783,852)	(212,374)	(1,996,226)	1,605,101	(982,619)	622,482
	(1,783,852)	(212,374)	(1,996,226)	1,605,101	(982,619)	622,482
	16,016,375	4,775,384	20,791,759	14,411,274	5,758,003	20,169,277
	14,232,523	4,563,010	18,795,533	16,016,375	4,775,384	20,791,759

The results for the year shown above all derive from continuing operations. There are no recognised gains or losses for the year other than those shown above. There are no material differences between the results for the year as stated above and those calculated on a historical cost basis.

The notes on pages 51 to 60 form an integral part of these financial statements.

ANNUAL REPORT 2022

for the year ended 31 July 2022

Notes Charity Group Charity ~~2022~~ ~~2022~~ ~~2021~~ £ £ £ Fixed assets Tangible assets 10 6,389,186 6,665,016 6,362,898 Investment in subsidiaries 11 251,001 - 251,001 6,640,187 6,665,016 6,613,899 Current assets Debtors 12 2,552,245 2,450,666 3,892,506 Cash at bank and in hand ~~10,477,663~~ ~~10,816,739~~ ~~11,144,056~~ 13,029,908 13,267,405 15,036,562 Creditors: falling due within one year 13 (1,002,082) (1,136,888) (948,754) Net current assets ~~12,027,826~~ ~~12,130,517~~ ~~14,087,808~~ Total assets less current liabilities 18,668,013 18,795,533 20,701,707 Net assets 18,668,013 18,795,533 20,701,707 The funds of the charity: Unrestricted income funds - Programme funds 950,711 871,676 3,624,423 - General funds 6,890,126 6,695,831 5,875,239 - Designated funds 6,640,187 6,665,016 6,613,899 Restricted income funds 4,186,989 4,563,010 4,588,146 Total charity funds 14 18,668,013 18,795,533 20,701,707	Charity ~~2022~~	Group ~~2022~~	Charity ~~2021~~	Group ~~2021~~
	£ 6,389,186 251,001	£ 6,665,016 -	£ 6,362,898 251,001	£ 6,636,453 -
	6,640,187	6,665,016	6,613,899	6,636,453
	2,552,245	2,450,666	3,892,506	3,550,440
	~~10,477,663~~	~~10,816,739~~	~~11,144,056~~	~~11,601,711~~
	13,029,908 (1,002,082)	13,267,405 (1,136,888)	15,036,562 (948,754)	15,152,151 (996,845)
	~~12,027,826~~	~~12,130,517~~	~~14,087,808~~	~~14,155,306~~
	18,668,013	18,795,533	20,701,707	20,791,759
	18,668,013	18,795,533	20,701,707	20,791,759
	950,711	871,676	3,624,423	3,696,703
				5,683,219 6,636,453 4,775,384
	18,668,013	18,795,533	20,701,707	20,791,759

THE ACCOMPANYING NOTES ON PAGES 51 TO 60 FORM AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. APPROVED BY THE BOARD ON 20 DECEMBER 2022 AND SIGNED ON ITS BEHALF ON 20 DECEMBER 2022

Imam Qasim Rashid AHMAD

Trustee

ANNUAL REPORT 2022

CONSOLIDATED STATEMENT

for the year ended 31 July 2022

Cash flow statement Net cash inflow from operating activities Payments to acquire tangible fixed assets Disposal of tangible fixed assets Increase in cash in the year Note to the cash flow statement Reconciliation of changes in movement in net funds to net cash inflow from operating activities Movement in net funds Add: Depreciation Decrease / (Increase) in inventories Decrease / (Increase) in debtors Increase / (Decrease) in creditors Net cash inflow / (outflow) from operating activities Analysis of change in net funds Cash at bank and in hand	Group 2022 £ (383,639) (401,333) - (784,972) (1,996,226) 372,770 - 1,099,774 140,043 (383,639) Opening balance 01 August Cash flow 2021 movement £ £ 11,601,711 (784,972)	Group 2021 £ (234,511) (2,180,267) -
		(2,414,778)
		1,937,904 442,839 (11,010) (353,118) (2,251,126)
		(234,511)
		Closing balance 31 July 2022 £ 10,816,739

The results for the year shown above all derive from continuing operations. There are no recognised gains or losses for the year other than those shown above. There are no material differences between the results for the year as stated above and those calculated on a historical cost basis.

The notes on pages 51 to 60 form an integral part of these financial statements.

ANNUAL REPORT 2022

for the year ended 31 July 2022

1 Accounting policies

a) Basis of preparation

The financial statements of the Charity, which is a public benefit entity under Financial Reporting Standard 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102), the 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) (Charities SORP (FRS102)) and the Charities Act 2011 and Companies Act 2006.

The Consolidated Statement of Financial Activities (SoFA) and Balance Sheet consolidate the Financial Statements of the Charity and it's subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. No separate Statement of Financial Activities has been presented for the Charity alone as permitted by Section 408 of the Companies Act 2006. The Charity has also taken the exemption under FRS102 1.12(b) to not include a parent only cash flow statement in these accounts. The Charity also has taken advantage of the exemption contained in FRS8, ‘related party transactions, where disclosure is not required in consolidated financial statements of intra-group transactions and balances eliminated on consolidation

The Accounting Policies are consistent with the previous year. After reviewing the group’s forecasts and projections, the trustees (who are the directors for the purposes of company law) have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.

b) Income

All incoming donations from individuals are included when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. All monetary donations and gifts are included in full in the statement of financial activities when received.

Gifts in kind are included as income and expenditure at market value discounted for the most prudent realisable amount.

Gift Aid claims are recognised when there is an

entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Investment income represents profit on bank deposits and is recognised when receivable.

c) Expenditure

Charitable expenditures are recognised in the year in which they are incurred on an accrual basis as and when a liability is incurred.

Charitable activities comprise those costs incurred by the charity in the delivery of its activities under its core objectives and services for its beneficiaries. It includes costs that can be allocated directly or indirectly necessary to support them.

Fundraising costs comprise costs incurred for generating donations and legacies from individuals and other incoming resources. They do not include the costs incurred in disseminating information to support the audit, legal advice and charitable activities.

Governance costs are those which relate to the provision of the governance infrastructure of the Charity. Included within this category are costs associated with the strategic management of the Charity’s activities and all Trustees’ costs. In accordance with FRS102, these costs are classified as Support Costs.

d) Amortisation and Depreciation

All fixed assets are initially recorded at cost. Depreciation is calculated to write off the cost of an asset, less its estimated residual value over the useful economic life on a straight-line basis as follows:

Goodwill	over 5 years
Freehold Property	over 50 years
Leasehold Property	over the lease
term
Freehold and Leasehold Improvements Plant and Machinery	over 10 years over 4 years
Fixtures, Fittings and Equipment	over 5 years
Motor Vehicles	over 4 years

According to the SORP 2015 (10.23), as the useful life of the Goodwill cannot be estimated reliably the Charity decided to amortise it in five years.

ANNUAL REPORT 2022

for the year ended 31 July 2022

h) Foreign Currency

e) Stocks

Stocks are valued at the affected prevailing rates at the end of the year. It consists of jewellery received for distribution to the needy during the year and distributed after the year-end.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currency are translated at the rates prevailing on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

f) Taxation

The Charity is exempt from corporation tax on its charitable activities.

i) Pension

g) Fund Accounting

Unrestricted funds comprise those funds which may be used towards meeting the charitable activities at the discretion of the Trustees.

The Charity has fully complied with the auto-enrolment legislation and all eligible employees are offered a Shariah compliant pension scheme through NEST. The charity contributes 3% of the salary to match the contribution paid by eligible employees.

Restricted funds are only used for particular restricted purposes within the objects of the Charity.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

ANNUAL REPORT 2022

for the year ended 31 July 2022

2 Donations and legacies Received in UK Received in Overseas Gift Aid - tax claim Gift in Kind received in UK Gift in Kind received in overseas	2022 Unrestricted £ 6,324,213 -	2022 Restricted £ 6,755,983 3,783,235	2022 Total £ 13,080,196 3,783,235	2021 Unrestricted £ 4,441,475 10,732	2021 Restricted £ 9,923,282 1,898,802	2021 Total £ 14,364,757 1,909,534
	6,324,213 621,493 - -	10,539,218 810,831 119,398 4,707,867	16,863,431 1,432,324 119,398 4,707,867	4,452,207 505,694 - -	11,822,084 1,114,653 433,453 2,954,037	16,274,291 1,620,347 433,453 2,954,037
	6,945,706	16,177,314	23,123,020	4,957,901	16,324,227	21,282,128

3 Primary and secondary school

2022 Unrestricted £ Fees income - Less: Discount - - Miscellaneous income - - 4 Investment and other income 2022 Unrestricted £ Bank deposit profit 2,944 Service fee received 96,313 Profit from sale of assets - Exchange Rate Gain 17,136 Furlough Grant Income 893 117,286 5 Expenditure on Raising funds Operation of primary and secondary school Charitable activities Rehabilitation Economic empowerment Humanitarian relief Education Healthcare WASH Protection and care Religious dues Total Charitable activities Total resources expended	2022 Unrestricted £ - -	2022 Restricted £ 2,267,799 (235,631)	2022 Total £ 2,267,799 (235,631)	2021 Unrestricted £ - -	2021 Restricted £ 2,106,654 (260,892)	2021 Total £ 2,106,654 (260,892)
	- -	2,032,168 63,606	2,032,168 63,606	- -	1,845,762 6,563	1,845,762 6,563
	-	2,095,774	2,095,774	-	1,852,325	1,852,325
	2022 Unrestricted £ 2,944 96,313 - 17,136 893	2022 Restricted £ - - - - -	2022 Total £ 2,944 96,313 - 17,136 893	2021 Unrestricted £ 1,497 106,906 285,954 49 85,163	2021 Restricted £ - - - - -	2021 Total £ 1,497 106,906 285,954 49 85,163
	117,286	-	117,286	479,569	-	479,569
		Direct costs £ 465,353 1,890,810 517,874 231,044 2,712,381 7,723,837 760,590 1,518,933 3,490,321 7,469,236	Human resources £ 352,308 22,932 33,755 18,284 116,684 245,019 48,493 77,042 260,298 461,088	Support costs £ 21,828 88,693 24,293 10,837 127,230 362,302 35,677 71,248 163,721 350,360	Total 2022 costs £ 839,489 2,002,435 575,922 260,165 2,956,295 8,331,158 844,760 1,667,223 3,914,340 8,280,684	Total 2021 costs £ 700,689 1,959,373 499,736 12,723 2,869,237 6,316,627 1,088,373 2,732,338 3,131,173 6,058,012
		24,424,216	1,260,663	1,145,668	26,830,547	22,708,219
		26,780,379	1,635,903	1,256,189	29,672,471	25,368,281

ANNUAL REPORT 2022

for the year ended 31 July 2022

5a Expenditure of raising funds

• Expenditure on raising funds includes all expenditure incurred by Al-Khair Foundation to raise funds for its charitable activities. It comprises the cost of advertising, on-air fundraising appeals and educational and charitable programmes’ presentation, social media marketing, producing publications and printing and mailing materials and costs, direct staff and overhead costs and an appropriate allocation for related support costs.

5b Expenditure on charitable activities

• Charitable activities include expenditure incurred in the execution of programmes through field offices and partner organisations in 22 countries around the world.

Allocation of support costs has been proportionate to the total of programme costs and corresponding thematic programme area.

• 6 Support costs

Support costs
Raising funds Operation of primary and secondary school Charitable activities Rehabilitation Economic empowerment Humanitarian relief Education Healthcare WASH Protection and care Religious dues Total Support costs	Office costs £ 19,384 78,761 21,572 9,624 112,983 321,732 31,682 63,270 145,388 311,127	Finance and IT costs £ 1,840 7,476 2,048 913 10,724 30,538 3,007 6,005 13,800 29,531	Governance costs £ 604 2,456 673 300 3,523 10,032 988 1,973 4,533 9,702	Total 2022 £ 21,828 88,693 24,293 10,837 127,230 362,302 35,677 71,248 163,721 350,360	Total 2021 £ 19,545 123,596 29,419 745 176,938 382,668 63,849 161,689 183,330 359,742
	1,115,523	105,882	34,784	1,256,189	1,501,521

7 Governance Costs External Audit fee Trustees travel Legal and other costs 8 Staff cost and number of employees The average monthly numbers of employees in the UK during the year were: Permanent Part time Supply 9 Employment costs Gross Pay Employer's national insurance Pension costs School teacher's remuneration are direct expenses and paid from school income (note 3 & 5)	2022 £ 21,000 4,791 8,993	2021 £ 21,000 3,206 8,785
	34,784	32,991
	2022 £ 38 34 28	2021 £ 43 35 22
	2022 £ 1,387,022 115,527 19,767	2021 £ 1,526,183 113,090 22,483
	1,522,316	1,661,756
	1,350,301	1,325,825

ANNUAL REPORT 2022

for the year ended 31 July 2022

Al-Khair Foundation UK has one staff who is related to the Charity’s trustees in the current financial year. The costs relating to such staff is £30,125 (2021: £0) which includes the organisation’s national insurance and pension contribution.

In addition to full-time permanent staff, AKF employed temporary call centre staff at a cost of £601,082 (2021: £628,758), this was to service incoming calls for donation income mainly during Ramadan and Qurbani time.

There was no payment made for staff settlement during the financial year of 2022 and 2021

The number of employees whose remuneration (wages and employer pension contribution) during the year amounted to over £60,000 was as follows:

	2022	2021
	Number	Number
£60,001-£70,000	1	0

The highest paid individual in the organisation is the Donor Relationship Manager who was paid £67,119 (2021: £56,223). The remuneration of the Chief Executive is set by the Board of Trustees; the remuneration of the Senior Management Team is set by the Chief Executive in consultation with the Chair of Trustees.

The key management personnel of the Charity are the trustees and the Senior Management Team. The short term employee benefits (as defined in FRS102 28.4: wages, pension and social security contributions) for the Senior Management Team for 2022 was £199,306 (2021: £184,312).

One member of the Board of Trustees received remuneration amounting to £29,375 (2021: £29,382) for his services under the required dispensation from the Charity Commission for executive duties as Executive Chairman of the Charity.

Expenses reimbursed to Trustees for travel undertaken on the Charity’s behalf amounted to £5,119 for 2 members (2021: £3,206 for 2 members). The Charity paid £2,047 (2021: £2,608) for Trustees’ Indemnity Insurance cover.

ANNUAL REPORT 2022

for the year ended 31 July 2022

10 Tangible fixed assets

Charity Cost At 01 August 2021 Additions Disposals As at 31 July 2022 Depreciation At 01 August 2021 Charge for the year Disposals As at 31 July 2022 Net book values As at 31 July 2022 As at 31 July 2021	Freehold Property	Leasehold Property & Improvement	Plant and Machinery	Fixtures Fittings and Equipment	Motor Vehicles	Total
	£ 6,376,499 256,647 -	£ 1,262,128 - -	£ 234,775 - -	£ 1,049,034 30,895 (19,713)	£ 90,988 - -	£ 9,013,424 287,542 (19,713)
	6,633,146	1,262,128	234,775	1,060,216	90,988	9,281,253
	873,225 162,715 -	581,482 45,415 -	234,775 - -	870,056 53,124 (19,713)	90,988 - -	2,650,526 261,254 (19,713)
	1,035,940	626,897	234,775	903,467	90,988	2,892,067
	5,597,206	635,231	-	156,749	-	6,389,186
	5,503,274	680,646	-	178,978	-	6,362,898

Group Cost At 01 August 2021 Additions Disposals As at 31 July 2022 Depreciation At 01 August 2021 Charge for the year Disposals As at 31 July 2022 Net book values As at 31 July 2022 As at 31 July 2021	Freehold Property	Leasehold Property & Improvement	Plant and Machinery	Fixtures Fittings and Equipment	Motor Vehicles	Total
	£ 6,376,499 256,647 -	£ 1,507,758 24,906 -	£ 1,140,757 36,881 -	£ 1,389,418 82,899 (19,713)	£ 145,504 - -	£ 10,559,936 401,333 (19,713)
	6,633,146	1,532,664	1,177,638	1,452,604	145,504	10,941,556
	873,225 162,715 -	724,760 72,470 -	1,039,311 42,053 -	1,140,683 95,532 (19,713)	145,504 - -	3,923,483 372,770 (19,713)
	1,035,940	797,230	1,081,364	1,216,502	145,504	4,276,540
	5,597,206	735,434	96,274	236,102	-	6,665,016
	5,503,274	782,998	101,446	248,735	-	6,636,453

ANNUAL REPORT 2022

for the year ended 31 July 2022

11 Investment - in Subsidiaries

		Channel I (UK) Limited	International Television Channel Ltd	Runners TV Ltd	Total 2022	Total 2021
		£	£	£	£	£
Ordinary shares of £1	each	250,000	1,000	1	251,001	251,001

Al-Khair Foundation owns the entire share capital of Channel I (UK) Limited, International Television Channel Limited and Runners TV Limited, all of which are incorporated in England and Wales.

12 Debtors and Prepayments

Trade Debtors Gift Aid Receivable Other Debtors Amount Due from Subsidiary Undertakings Prepayments	Charity 2022 £ 374,765 1,432,318 443,394 232,655 69,113	Group 2022 £ 374,765 1,432,318 574,470 - 69,113	Charity 2021 £ 1,156,872 1,620,344 445,063 626,103 44,124	Group 2021 £ 1,156,872 1,620,344 729,100 - 44,124
	2,552,245	2,450,666	3,892,506	3,550,440

13 Creditors: amounts falling due within one year

Trade Creditors Other Taxation and Social Security Other Creditors and Accruals	Charity 2022 £ 531,909 63,634 406,539	Group 2022 £ 614,382 75,873 446,633	Charity 2021 £ 514,919 50,280 383,555	Group 2021 £ 542,116 58,424 396,305
	1,002,082	1,136,888	948,754	996,845

ANNUAL REPORT 2022

for the year ended 31 July 2022

14 Restricted funds and Unrestricted funds

As at 01 August 2021 £ - 445,198 3,778,085 - - - - - 65,638 486,463	Incoming Resources £ 450,354 15,266 2,819,640 4,922,462 2,095,774 317,441 1,951,277 784,422 4,916,452 2,340,165	Resources Expended £ (557,957) (228,479) (1,545,415) (6,196,086) (1,913,742) (708,201) (1,539,140) (3,762,095) (4,374,512) -	Transfers £ 107,603 - (1,928,472) 1,273,624 (182,032) 390,760 (412,137) 2,977,673 - (2,227,019)	As at 31 July 2022 £ - 231,985 3,123,838 - - - - - 607,578 599,609
4,775,384	20,613,253	(20,825,627)	-	4,563,010
3,696,703 5,683,219 6,636,453	4,576,084 2,486,908 -	(8,846,844) - -	1,445,733 (1,474,296) 28,563	871,676 6,695,831 6,665,016
16,016,375	7,062,992	(8,846,844)	-	14,232,523

• Restricted funds are held for application on affected programmes subsequent to receipt.

• Unrestricted Programme funds balances are held for the Charity’s overall work (including humanitarian) subsequent to receipt.

• The general fund represents the amounts that Trustees are free to use in accordance with the Charity’s objectives.

• Designated funds are unrestricted funds that have been ring-fenced for replacement of fixed assets (net book value of tangible fixed assets that were originally funded out of unrestricted funds). Fixed assets acquired out of general funds, and transfer to the fixed asset fund, represents the difference between new assets and the depreciation charge for the year.

15 Net assets by funds Tangible fixed assets Net current assets 16 Analysis of change in net funds Cash at bank and in hand	Unrestricted £ 6,665,016 7,567,507	Restricted £ - 4,563,010	Total £ 6,665,016 12,130,517
	14,232,523	4,563,010	18,795,533
	Opening balance 1 August 2021 £ 11,297,167	Cash flow movement £ 1,612,158	Closing balance 31 July 2022 £ 12,909,325

ANNUAL REPORT 2022

for the year ended 31 July 2022

17 Commitments

Commitments
	Group and	Group and
	Charity	Charity
	2022	2021
Land and buildings	£	£
Operating leases expiring
– within one year	17,000	17,000
– within two to five years	68,000	68,000
– over five years	1,054,000	1,071,000

18 Subsidiary companies

The Charity has three wholly owned subsidiaries. Channel I (UK) Limited, International TV Channel Limited and Runners TV Limited, which are all registered in England and Wales.

These subsidiaries broadcast Islamic educational and religious programmes on free-to-air channels under the name of “IQRA TV” and “IQRA Bangla” via SKY satellite. All activities of the subsidiaries have been consolidated on a line by line basis in the Statement of Financial Activities.

Total trading income Cost of sales Gross profit Administrative expenses Profit before charitable donations and taxation Interest receivable Profit before charitable donations and taxation	2022 £ 2,243,672 (1,982,170)	2021 £ 2,220,477 (1,929,430)
	261,502	291,047
	(261,502)	(291,047)
	-	-
	-	-
	-	-

19 Contingent liabilities

There are no contingent liabilities at 31 July 2022 (2021: none)

20 Taxation

Al Khair Foundation is a registered charity and is not liable therefore to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. The irrecoverable VAT is charged to its associated expenditure.

21 Pension costs

We comply fully with auto-enrolment legislation, from July 2014 enrolling new employees into a Group Personal Pension Plan NEST comprising an employer payment of 3% against a 5% employee contribution.

Contributions to the scheme for the year were £19,767 (2021: £22,483) and as at 31 July 2022, there were 44 members in the scheme (2021: 44).

ANNUAL REPORT 2022

for the year ended 31 July 2022

22 Related party transactions

The Charity has taken advantage of the exemption given by FRS 102, Related Party Disclosures, from disclosing transactions with its wholly owned subsidiaries.

During the year ended 31 July 2022, the following Related Party Transactions were affected at the Charity,

The Charity donated £4,000 during the year (2021: £0) to Croydon Mosque and Islamic Centre (Reg. Charity 285030) where Shuaib Yusaf is both a Trustee of Croydon Mosque and Islamic Centre and also the CEO of the Charity.

The Charity paid a membership subscription of £25,000 to the Muslim Charities Forum (an advocacy body for the Muslim segment of the charity sector). Shuaib Yusaf is a trustee of the Muslim Charities Forum and is also the CEO of the Charity.

The Charity entered into an agreement with PakAID (a UK Registered Charity) for the delivery of Water, Sanitation and Hygiene (WASH), and poverty reduction programmes in Pakistan. Two of the PakAID trustees (Aisha Chaudhry and Almas Iqbal) are also employees of the Charity.

As reported in Note (9), a salary of £29,375 is paid to Imam Qasim for duties as the Executive Chairman of the Charity.

Mrs Fatima Bukhari received salary payments amounting to £30,125 during the year in respect of teaching and related services provided to Al Khair Primary School. Fatima Bukhari is the wife of Salman Bukhari, a trustee and director of Al Khair Foundation.

ANNUAL REPORT 2022

SINGE Al-Khair FOUNDA TION SIF46e 16482 -11-khair ANNUAL REPORT 2•21 61

109-119 Cherry Orchard Road Croydon, CR0 6BE, United Kingdom

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 www.alkhair.org

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ANNUAL REPORT 2022