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← National Zakat Foundation (Nzf)

2024-12-31-accounts

Impact Report and financial statements for the year ended 31 December 2024 , N ~

National Zakat Foundation (NZF)

Charity number: 1153719 Company number: 08536743

Contents

Introduction 4
SECTION 1 Impact at a glance 8
Impact report About us 12
How do we help? Our charitable activity 14
The service we provide 16
How we raised and spent funds 18
Thank you 20
Our supporter community 21
Bringing Zakat to life in 2025 and beyond 22
SECTION 2 Our people 26
How we operate Our organisational structure 27
How we manage the money givers trust us with 28
Our approach to operations 30
How we are governed 31
How we manage our fnances 34
Our leadership team 36
Statement of Trustees’ responsibilties 37
SECTION 3 Independent auditor’s report to the members 40
Financial of National Zakat Foundation (NZF)
statements Statement of fnancial activities 44
Balance Sheet 45
Statement of cash fows 46
Notes to the fnancial statements 47

This Impact Report includes the Trustees’ annual report as required by the SORP and a Directors’ report as required by company law

Impact report and financial statements 2024

3

Introduction

Assalamu alaikum. Peace be upon you.

It is with great honour that we present this annual report of National Zakat Foundation as we mark the start of our 14th year of operation. By the grace of God, 2024 marked a milestone year in which we collected the highest amount of Zakat and assisted more individuals than at any other time in our history.

The cost-of-living crisis has become embedded in many communities across the country. Rent increases caused a surge in applications to our Housing Fund while people cite ill-health as a cause for hardship. The economic situation of the UK’s Muslim population mirrors that of the rest of the nation’s poorest - it’s getting worse.

The positive impact of your Zakat is palpable — recipients have told us that not only have they found immediate relief but they have also grown closer to the community and strengthened in faith. Our partnerships with major international humanitarian charities, particularly Islamic Relief in 2024, further enabled us to extend our reach within the UK, ensuring that the Zakat given supports our fellow Muslims locally.

To enhance the efficiency and effectiveness of our distribution, we have implemented several improvements this year.

Yet, it is through generous Zakat contributions that we have been able to offer much-needed support to those seeking relief from hardship, housing assistance, or opportunities to enhance their livelihoods through education and employment.

4

We continued our streamlined registration process for the Hardship Fund, allowing applicants to register swiftly and submit detailed applications with the necessary documentation. Our experienced Grants Officers have played a crucial role in guiding applicants through this process to accurately reflect their financial situations. We also introduced technology to automatically verify identification and assess bank statements, bringing the latest developments in artificial intelligence in aiding our Grants Officers and increasing the speed with which we can process applications and help those in need.

We further developed our new initiative of distributing Zakat through community partners. We added a further six Mosques in 2024 to begin distributing in 2025 to our Community Zakat Programme (CZP). This model leverages local community hubs where applicants can receive face-to-face assistance with their applications and access additional services. The initial results of this programme have been encouraging, demonstrating a successful model for promoting solidarity and support within the community. We intend to roll this out to other parts of the country.

Looking forward, our goal is to build a National Zakat System, where all Muslims in the United Kingdom live with the comfort of knowing that they are part of a community that is there for them if they fall into hard times.

Mobilisation: whereby we educate people of their responsibility to their own communities, and empower them to educate, fundraise and serve. To this end, we started our new community engagement team.

Knowledge: whereby NZF champions the cause of Muslim economic welfare on the national stage. To this end, we recently released our economic impact report, demonstrating the great economic value to British society from Muslims localising Zakat.

NZF Worldwide continues to work closely with NZF UK. The countries within the NZF family are building a mutual network of support, sharing expertise in relevant areas. NZF UK is pivotal within this network. We are glad to welcome NZF Germany to our ever-growing global family.

On behalf of NZF, we extend our deepest gratitude to our donors, partners, and dedicated team for your unwavering support and commitment to the mission of Zakat. Together, we are making a significant difference in the lives of many, fostering a stronger, more resilient Muslim community in the UK.

Sincerely and with much appreciation,

To move to this future, we are developing work in three areas:

Connectivity: whereby we create Zakat solutions that connect givers and recipients to their local communities to truly localise the Zakat experience. This is what we will develop by growing our Community Zakat Programme, where Zakat applicants can walk into a local mosque or community centre for a respectful Zakat assessment and immediate receipt of a Zakat grant.

Sohail Hanif

Chief Executive

Sultan Choudhury Chair of the Board of Trustees

Impact report and financial statements 2024 5

Section 1 Impact Report

6 National Zakat Foundation (NZF)

Impoct reFK)rt and finonciol statements 2024

SECTION 1: Impact report

Impact at a glance

Since NZF began, 13 years ago:

Givers have supported over 106,000 people Total Zakat distributed £45.6 million

----- Start of picture text -----
£50m
£40m
£30m
£20m
£10m
£0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
----- End of picture text -----

The impact of your Zakat in building a thriving, closer Muslim community[1]

Has the help from NZF made you feel closer to the Muslim community?

Has the help from NZF increased your faith?

Has the money we gave helped you to get your finances back on track?

Zakat recipients rated the impact on average 4.75 out of 5 – that’s 95.0%!

Zakat recipients rated the impact on average 4.71 out of 5 – that’s 94.2%!

Zakat recipients rated the help on average 4.64 out of 5 –

that’s 92.8%!

1 NZF asks feedback from recipients 3 months after they have received the cash transfer to understand the impact. We use emojis to help recipients with language and literacy barriers respond to questions with ease. Recipients rate each question out of 5.

8 National Zakat Foundation (NZF)

SECTION 1: Impact report

In 2024: number of people in need helped

----- Start of picture text -----
How your Zakat helped people in
need across the UK in 2024:
25,945 people
in need helped
Scotland
839 £6.32m Zakat
distributed to people in need
North
Northern East
Ireland
837
890
North
West
3,813
Yorkshire &
the Humber
2,306
East
Midlands
West
1,122
Midlands
Wales
2,135 Eastern
366
1,544
London
10,288
South
West
South
622
East
1,183
----- End of picture text -----

Impact report and financial statements 2024 9

SECTION 1: Impact report

Impact at a glance continued

You gave help in these areas

Hardship Relief

Work & Education

Community Zakat Programme

Grants for vulnerable Muslims to pay for basic essentials and safe and secure housing.

Support to help people back in to work.

Supporting people in need through their local community organisations for direct access.

How you’ve helped in 2024, by fund

Hardship (inc Housing)
Empowerment
Community Zakat Programme
Total		 £
Your Zakat distributed, by fund
%
5,556,449
88
3
9
100
207,954
551,600
6,316,003		 People in need you’ve helped, by fund
No. of people
%
22,485
87
1
282
12
3,178
100
25,945

10 National Zakat Foundation (NZF)

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We use all Zakat for charitable activity.

We do not use Zakat to raise funds or for core costs.

How much of your Zakat is spent on getting it to those in need?

For every £1 of Zakat given, it costs 10p to check applicants and get it to an eligible recipient. Givers choose how to cover this cost.

25% chose to pay extra, so all 75% covered their distribution their Zakat went directly to a cost through the Zakat they recipient. gave.

£1 Zakat to those in need

90p Zakat direct to those in need

+

10p added to cover their Zakat cost

10p to cover their Zakat cost

Impact report and financial statements 2024

11

SECTION 1: Impact report

About us

The challenge

Those who are geographically nearest to us have a special right on us. Zakat is not simply charity, rather Zakat is an institution. It reminds Muslims they are one family, one ummah. Zakat is meant to build real ties in communities, so no-one feels alone and alienated wherever there is a group of believers. This emphasis of caring for those near us through our Zakat is agreed upon by all schools of law - they differ only in whether they consider this an obligation or a Sunnah.

Zakat is not only a religious obligation but also a powerful tool for social and economic justice.

1. Strengthening Local Communities:

By allocating Zakat funds within the giver’s own community, the impact is direct and immediate. This approach helps to address poverty, inequality, and other social issues at a local level, thereby strengthening community bonds and ensuring that the needs of the most vulnerable are met effectively.

2. Boosting Local Economy:

When Zakat is distributed locally, it circulates within the community, supporting local businesses and services. This circulation can boost the local economy by increasing overall spending and investment, which can lead to job creation and economic stability.

3. Fulfilling Religious Obligations Ethically:

Islam encourages Muslims to look after their neighbours. By focusing Zakat contributions on the local community, donors can fulfil their religious duty in a manner that aligns with the ethical teachings of Islam, promoting a sense of responsibility and empathy within the community.

4. Enhancing Transparency and Trust:

Local distribution of Zakat can enhance transparency and build trust among contributors. Donors are more likely to see the outcomes of their contributions, which can encourage continued generosity and participation in Zakat programs.

5. Empowering Local Decision-Making:

Local administration of Zakat funds allows for decisions to be made by those who are closest to the recipients and understand their unique circumstances. This localised decision-making process ensures that Zakat has the most meaningful impact.

6. Creating a Sustainable Model of Charity:

Muslim poverty in the UK is a critical issue that requires urgent attention. Despite the overall economic growth in the country, a significant proportion of the Muslim population experiences high levels of poverty and socioeconomic disadvantage. According to the Muslim Census nearly 50% of Muslims live in poverty against 18% of the whole population. This creates barriers to opportunity such as unemployment and lower educational attainment, alongside discrimination. Tackling this issue is important not only for promoting social justice and equality but also for fostering community cohesion and economic stability. Addressing Muslim poverty can help break the cycle of deprivation, enabling individuals to contribute more effectively to society and reducing the social costs associated with poverty, such as healthcare, welfare and housing.

12 National Zakat Foundation (NZF)

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What NZF does

NZF aims to strengthen the UK’s Muslim community through effective collection and distribution of local Zakat. Through our three funds - Hardship Relief, Housing and Empowerment – we lift people out of poverty, keep them in their homes and provide a pathway in to work.

Our systems allow Muslims to give their Zakat confidently and efficiently to eligible recipients in the UK. Alongside our central distribution to applicants we are increasing our face-to-face presence working with community Zakat partners across the UK to assess and distribute Zakat directly to those in need.

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How do we help? Our charitable activity

Our charitable activities are:

Zakat Charity Partners

Hardship Relief and Housing Funds

NZF distributes your Zakat directly to Muslims living in hardship in the UK by providing funds to cover basic essentials, such as food, clothing, and household goods. Our Housing Fund also provides additional grants to help Muslims in the UK to remain in affordable, habitable and safe accommodation.

In 2024, we combined our Hardship Relief and Housing teams, to ensure that beneficiaries fully benefit from what NZF has on offer, whilst streamlining the Zakat process to make grants more accessible for eligible beneficiaries. By upgrading our CRM platform, we have also decreased waiting and processing times for Zakat, through elements of automation, with efforts being made to incorporate AI into our application form in 2025 to further facilitate the application process.

In 2024, Zakat givers helped 20,599 people in need across the UK through NZF’s Hardship Relief Fund. 76% of all 2024 Zakat was distributed through this fund.

Zakat givers also supported 1,886 people in need across the UK through the Housing Fund. 17% of all 2024 Zakat was distributed through this fund.

We are grateful that in 2024, Islamic Relief gave NZF £500,000 of Zakat to help UK Muslims in hardship. This was the fifth time Islamic Relief has partnered with NZF as part of their strategy to help Muslims in the UK. Islamic Relief also gave an additional £300,000 of Zakat to implement our joint Palestine Support Program, which supported zakat-eligible arrivals from Palestine with a series of stipend payments to help them settle in the UK. We are also grateful for a £90,000 Zakat grant from Muslim Aid which we will distribute to needy Muslims in the UK. In 2024, NZF also began a partnership with

“The NZF hardship fund is an essential lifeline and provides an immediate helping hand to the most vulnerable families on home ground. Islamic Relief UK is proud to partner with NZF”

Tufail Hussain, Director of Islamic Relief UK

Money Wellness to provide free budgeting and debt advice to UK Muslims. `

As we look ahead to 2025 and beyond, NZF remains committed to expanding the range of services on offer to our beneficiaries through partnering with established organisations to utilise their expertise and experience.

Community Zakat Programme

2024 saw the expansion of our Community Zakat Program. Through CZP we provide emergency cash support to individuals in hardship. The aim is to empower community organisations to provide Zakat at a local level, building a Zakat system for the community. This allows individuals in these areas direct access to Zakat distribution hubs, access to a larger support network and wrap-around services that the partners may offer.

In 2024 we added multiple new partners including Green Lane Masjid, Sultan Bahu Trust, Al Emaan Centre, Acton and Purley Mosque. They distributed £316,650 in Zakat with 2160 applications approved and 2925 people supported. Applicants were able to access other services such as counselling, foodbank, and volunteering opportunities which gave them confidence and skills to use when applying for employment. Partners were able to also sign posts to other organisations and charities which could further support individuals such as immigration services or welfare advice support.

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Through these collaborative efforts and community-led initiatives, NZF has not only extended a lifeline to those in need but has also cultivated a culture of support and solidarity within local neighbourhoods. By harnessing the expertise and networks of our local partners, we have been able to establish a grassroots-led Zakat program that is deeply embedded within the fabric of the communities it serves.

This approach not only ensures greater accessibility and responsiveness to the needs of the most vulnerable but also fosters a sense of belonging and empowerment among community members.

As we look ahead to 2025 and beyond, NZF remains committed to nurturing and expanding our community-led Zakat program, ensuring that every individual has access to the support they need to lead dignified and fulfilling lives. By empowering local communities, fostering partnerships, and building networks of support, NZF is paving the way for a brighter and more resilient future for all.

Empowerment Programme

Towards the end of 2024, NZF launched a newly founded Empowerment Programme, building on the foundation and the learnings from the former Work & Education Fund. Under the Work & Education fund in 2024, NZF distributed just over £225,000, supporting 124 recipients to do vocational and academic courses to give them better prospects in the work environment.

The reason for moving from Work and Education to the Empowerment Programme was that through research, we identified that

by working with specific specialised partners, we could have a greater impact for our applicants, and push our givers’ Zakat further. Applicants could be upskilled and go from being dependent on Zakat to being able to support themselves and their family. Through our review we identified that our applicants needed more holistic support to get into the work environment beyond just a grant.

The development of the Empowerment Programme saw NZF liaise with industry experts and organisations to see what kind of programme was needed to truly empower our applicants. We assessed what specific skill sets were needed in the UK and identified that we could address the skills gap by working with specialised partners who would engage with the community to deliver programmes within:

By the end of 2024, we identified seven partners who went through rigorous governance and suitability checks and were approved to work with NZF to deliver the Empowerment programme. There will be support for applicants in not only completing the programme but also to help them into employment after completion of training. By partnering with training providers, recruiters, and mentors, we ensure applicants receive the support needed to transition from Zakat recipients to earners—and ultimately, Zakat givers.

SECTION 1: Impact report

The service we provide

We provide a suite of services for both givers and recipients of Zakat

Calculate:

We help Zakat givers calculate how much Zakat they need to give based on their financial situation. We do this through a variety of calculation services including our easy-to-use online calculator, a historical Nisab calculator, one-to-one consultations with Zakat experts, responses to individual queries through a dedicated email supported by a Scholar and online webinars.

Knowledge:

On our website we have an up-to-date knowledge bank with hundreds of answers to common and specific Zakat questions. We also provide three free PDF Zakat guides – for general calculation, for Zakat on businesses and for those with missed Zakat. In 2024 we developed Zaki, a chatbot that uses knowledge from our existing knowledge bank to answer questions in a conversational format. Our community engagement continued to offer both in-person and online workshops to community organisations, corporate networks and mosques. In 2024, well over 50 workshops were delivered across the country.

Give:

Through our Give App – givers can pay Zakat, Zakat-ul-fitr, Sadaqah, Riba and Fidya/ Kaffarah. We allow payments via Card, Google and Apple Pay, Paypal, BitPay for Cryptocurrency payments and GoCardless for Direct Debits. We also allow for bank transfers and have a method by which payers can inform us of their bank transfers so we can add them to our CRM to ensure our data is accurate.

After a Zakat payment, givers can decide which of our three funds they wish to support and split their payment across the funds if they so wish. They can also choose to leave messages for recipients.

Track:

Live maps on our website show where Zakat has been received from and distributed to across the UK. We send out a personal email to let Zakat givers know when their Zakat has been distributed to those who need it.

SECTION 1: Impact report

Distribute:

Apply: Those in need of Zakat apply online to NZF for help all year round. Mosques, charities, other organisations and individuals often let potential Zakat recipients know they can apply to NZF and support them in the process. Potential applicants can fill in an online selfassessment tool to quickly check if they meet the eligibility criteria, before completing the full application. This saves applicant and grants officers time regarding applications that do not meet our eligibility criteria.

Check: The NZF team then conducts meticulous checks to ensure applicants are eligible for Zakat. We have improved efficiency in the verification process for applicants with more up-to-date and more robust financial checks for applicants via open banking, and tighter fraud security, including automated checks on applicant ID.

Decide: Our Grants Officers work with applicants on a personal level to make sure they have the right support. They aim to get back to applicants as quickly as possible with a decision.

Support: For recipients of the Hardship Fund, Grants Officers usually give cash Zakat grants directly to the successful eligible applicant, by bank transfer where possible, or for collection from the national network of Post Offices. Where that is not possible, we send support in the form of digital supermarket vouchers. For recipients of the Empowerment Fund, Grant Officers offer funding for training and education to help applicants get into work and serve their communities. In addition, for all funds, Grants Officers refer applicants to any additional funding or help they might be eligible for.

Signposting, referrals and extra support:

Money wellness: In 2024 we officially partnered with Money Wellness – a financial wellbeing organisation that supports people struggling with debt and financial worries. Throughout the year we referred well over 100 applicants to Money Wellness where they received tailored guidance.

Signposting: Our website hosts a detailed list of organisations that applicants can use as either extra support or for when they have not been successful in their application to NZF. This list of organisations includes those specifically for migrants, domestic abuse victims and the elderly.

Impact report and financial statements 2024 17

SECTION 1: Impact report

How we raised and spent funds

Income:

Our funds are comprised of Zakat from individuals and businesses, charitable donations (Sadaqah, Riba and Fidyah/Kaffarah contributions), institutional grants and Gift Aid.

In 2024, we generated total income of £10,173,392 (2023: £8,954,901). Total expenditure was £8,887,428 (2023: £9,740,156). We had net incoming resources (total voluntary income less total expenditure) in 2024 of £1,285,964 (2023 net incoming resources: -£785,255).

The main source of our income was Zakat, comprising £8,011,147 (2023: £7,108,873). Most Zakat givers gave one-off payments rather than regular contributions. While givers gave 67% (2023 was 75%) of the annual value of Zakat income in Ramadan, people in need apply for Zakat throughout the year. This means there is a gap in timing between Zakat income and Zakat grants across the accounting period. We commit to distribute Zakat to individuals in need within a lunar year (11.5 months) of any individual Zakat giver’s payment to NZF – on average, we distribute an individual’s Zakat within five to six months.

Despite the cost-of-living crisis affecting givers, in 2024 we exceeded the Zakat income level achieved in 2023 by over 13% (2023 vs 2022 was over 15%). The increase in 2024 reflects a growing individual donor base, growing 10% from 13,400 to 14,800 givers.

Partnerships with NZF are increasingly an attractive proposition for international charities due to the efficiency, reach and expertise NZF offers in delivering Zakat to those in need in the UK. Islamic Relief contributed £550,000 Zakat funds during 2024 for NZF to distribute in the UK

(2023: £300,000). Islamic Relief contributed a further £399,916 to support refugees from Gaza.

Throughout the year, we continued to raise Sadaqah funds to support the work of the organisation – this made a vital contribution towards enabling NZF to grow and achieve our vision. We received £707,709 (2023: £519,901) of unrestricted Sadaqah funds in the year which, along with £1,006,397 (2023: £1,024,544) of Gift Aid, was critical to cover non-distribution costs of the charity and to raise funds. NZF received £342,647 (2023: £170,193) of Riba also used for non - distribution costs. There were no In-Kind (non-cash) Donations in 2024.

Expenditure:

We continue to consult and listen to our givers. We distribute donations to people applying to funds in line with what givers ask for at the time of donating. All Zakat grants were given to eligible individuals in need who applied to a specific fund for Zakat. Applicants were able to apply to one or more of the following funds:

Hardship Relief (includes Housing) Community Zakat Programme Empowerment (formerly Work and Education).

Of the £6,316,003 (2023: £7,601,982) of Zakat/ Zakat ul Fitr grants we distributed in 2024: 88% or £5,556,449 (including 100% of the Zakat ul Fitr grants) was distributed directly to eligible people in need by the Hardship Relief Fund, these recipients also include the Housing Fund from 2023 (2023: 75%); £551,600 by the Community Zakat Programme which was part of the Hardship

18 National Zakat Foundation (NZF)

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Relief Fund in 2023; and 3.3% or £207,954 by the Work and Education Fund (2023: 8%). All unspent funds from 2024 to be carried over and spent in the early part of 2025.

Total direct charitable expenditure was £1,640,744 (2023: £1,264,106). The majority of the expense is the distribution service which checks Muslims who apply for help are genuinely in need and takes great care to get the Zakat directly to them. Costs are covered by Zakat and Sadaqah funds. Each Zakat giver gave 10% of the value of their giving to contribute to the costs of their distribution service, choosing for this contribution to come either from Zakat or Sadaqah. The remainder of the charitable expenditure is Zakat education and calculation, funded by Sadaqah.

We incurred support and governance costs of £336,153 (2023: £261,878) during the year. Support and governance costs equated to 3.8% (2023: 2.7%) of total spending. With a fully remote workforce and no physical office, we continued to save on rent and related utility costs. Governance costs relate to audit fees, professional fees, license fees and compliance costs, and related staff costs (see note 5). As per the Charities Commission regulation, no trustees received any remuneration.

The capital expenditure for a new CRM to improve the experience for Zakat givers came to £82,789.

Cash Reserves:

Our Zakat grant cash reserves at the end of December 2024 remained high enough to enable sufficient distribution of Zakat to people in need until Ramadan 2025, when most givers give their Zakat.

Our non-grant reserves are also higher than anticipated, due to positive movements in our unrestricted fundraising efforts driving a surplus position.

Cash deposits form the bulk of our cash reserves. Almost all cash deposits at yearend are for non-grant expenditure. This is to enable us to earn returns and generate nongrant income to further the work of NZF and to mitigate against inflation.

Due to high demands from applicants we are continuing to maintain higher liquidity (cash deposits) to enable us to distribute more quickly, therefore grants funds cannot be deposited for

lengthy periods.

The cost of raising funds was a further 6.7% (2023: 6.3%) of total spending, covered entirely by Sadaqah and Gift Aid funds. This is lower than average for charities of this size.

19 Impact report and financial statements 2024 19

SECTION 1: Impact report

Thank you

Zakat givers, organisations, and partners have enabled NZF to support many people in hardship.

Recipients who have received this support and felt the power of Zakat directly often ask us to share their genuine thanks with those who make it possible - the Zakat givers who have chosen to give through NZF.

On behalf of all recipients and from us at NZF, thank you.

Individuals, organisations, agencies, community groups, and mosques have helped those in need to access our services through signposting and by submitting applications on their behalf.

In addition, our work is strengthened by partnerships.

We look forward to building upon existing relationships and forging new ones in 2025 and beyond.

Together, we have helped Muslim recipients get their finances back on track, feel closer to the Muslim community, and strengthen their faith.

National Zakat Foundation (NZF)

20

SECTION 1: Impact report

Our supporter community

Thank you to all our supporters, referrers and partners, including but not limited to:

CZP Partners

Al Madinah Mosque Bradford Foundation Trust Acton Mosque Purley Mosque Al Emaan Centre Leicester Zakat Foundation Sultan Bahu Trust

The Work and Education Fund/ Empowerment Programme:

Association of Muslims Schools Markfield Institute of Higher Education FareShare Midlands Refugee Council New Citizens' Gateway Holt Green Training Cambridge Muslim College

Major Funders:

Kindgiving Foundation Zouq Foundation Islamic Finance Guru Islamic Relief USA (Bill Gates Foundation)

HRF/HOU Partners

Post Office Amaliah Money Wellness BEAM Ihsan Compassion Fund MIND NHS Talking Therapies Maryam Support Line Islamic Relief Muslim Aid British Palestinian Committee Red Cross Migrant Organise C4WS Homeless Project

Impact report and financial statements 2024 21

SECTION 1: Impact report

Bringing Zakat to life in 2025 and beyond

2024 saw much change within our systems and processes, with the implementation of a new organisation-wide CRM platform. We began to lay the foundations for AI assisted applications, assessing applicant vulnerability more accurately, and enhanced application support.

On the donor side, we began to build and design a new Zakat calculator, an in-house tool for scheduling donations, a Zakat question chatbot and reviewed our entire knowledge bank.

2025 is the year these changes will be coming to fruition, with both givers and applicants accessing either new or refreshed services.

Throughout 2024 we continued to see an increase in demand for our services. Thousands of needy Muslims turned to NZF every month, which prompted us to scrutinise our offering and think of ways to be more efficient. The cost-of-living crisis in the UK and economic uncertainty still lingers, which underlines our need to increase income in 2025 through fundraising and institutional partnerships. One of these partnerships is a match-funding agreement with the Bill and Melinda Gates Foundation relating to our Muslim Women’s Fund – which is fundraised for in partnership with Muslim women’s lifestyle platform Amaliah.

Our vision for a unified National Zakat system is set to move further into reality in 2025 where we aim to onboard more partners to our groundbreaking Community Zakat Program. We aim to build on our strategic directives in Connectivity, Mobilisation and Knowledge to cement nascent projects and establish robust systems that facilitate the network of solidarity and support we are trying to build.

22 National Zakat Foundation (NZF)

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We aim in the coming year to develop our volunteer network, and continue to engage with mosques, charities, media and grassroots organisations across the UK. Our commitment to our givers and recipients will remain strong, with strong oversight from our external Quality and Sharia Auditor Mufti Amjad Mohammed. Through regular audits and learning constantly from user feedback, we will refine our offering through 2025 and beyond.

“Assalam Alaikum. I received the Zakat money today and I can’t thank you enough for your help. May Allah grant you janet el firdawss to all of you. To everyone involved in this foundation. Jazakoum allah khayran. Ramadham Mubarek to you all”

[unedited message from grant recipient]

God willing, we will continue to bring Zakat to life in the UK, and adhere to our values as we do so.

Section 2 How we operate

24 National Zakat Foundation (NZF)

Impoct reFx)rt and finonciol stotements 2024 25

SECTION 2: How we operate

Our people

We seek to maximise the potential of all employees at National Zakat Foundation and cultivate high levels of employee engagement.

We do this through:

Employee engagement surveys

Our employees participate in quarterly employee engagement surveys, giving valuable feedback on what it is like to work at National Zakat Foundation. During 2024, 98% of participating employees agreed or strongly agreed that “the mission of NZF inspires” them. Employees know they can give feedback or put forward ideas at any time and we have formal and informal mechanisms in place to facilitate this.

Safeguarding

We expect all employees, volunteers, partners, interns and consultants to conduct themselves in a way that preserves the dignity and respect of every individual. We have a Safeguarding Policy and Code of Conduct that reflects

this and we train the team regularly on safeguarding. We have thoroughly reviewed and updated our policy, and have made public our Safeguarding Commitment. We have zero tolerance for harassment, bullying or exploitation in any form.

Equal opportunities and diversity

We have an Equality and Diversity policy in place to ensure we give candidates, existing employees and volunteers equal opportunities to succeed. We recruit the best person we can find for the role, ensuring they have the right skills, knowledge and experience to help us achieve our mission.

We encourage employees to develop themselves professionally to match their circumstances and aspirations. We support flexible working practices wherever possible.

We strive for continuous improvement. In 2022, we formed a Diversity Working Group with participants from a variety of backgrounds and designations in the organisation. The group helped the Board assess diversity at NZF from the perspective of staff, givers and recipients. The group found the team have a positive balance of gender, social mobility range, and lived experience of being recipients and givers and of the charity sector. The gender pay gap

was analysed and shared with the Board. We have recognised the gender pay gap has increased since 2023, there has been a fall in the female to male pay ratio. We recognise that this shift highlights the need to proactively address the underlying dynamics influencing gender representation, particularly at senior levels. Looking ahead, we are committed to building a more inclusive organisational culture by investigating the root causes of gender disparities, particularly in leadership and higher pay quartiles. We will enhance our data analysis to better understand the nuances of pay differences and identify any systemic barriers to female progression.

Employees’ remuneration

The Board determines the salary of the Chief Executive. The Board approves the principles for salaries of all employees.

The Chief Executive proposes salary principles for the organisation and the salaries of key management personnel to the Board, which amends as appropriate and approves. There were significant changes in key management personnel in 2024. From September 2024, the role of Chief Strategy and Transformation Officer and Chief Financial Officer were removed and the role of Director of Operations and Director of Finance and Governance were introduced.

We set and review salaries based on a combination of benchmarking, seniority of the role, experience and NZF’s overall budget. Salaries are reviewed shortly after Ramadan each year. Any salary changes are effective from the following month.

Employee benefits are considered appropriate to ensure the calibre of team given the growing demands on and consequent size of NZF, while recognising NZF is a charity which exists first and foremost for recipients and givers. These benefits comprised optional salary sacrifice and basic healthcare schemes.

We have a comprehensive people system for managing the team with access to unlimited professional HR advice. Policies and processes are easily accessible by employees.

26 National Zakat Foundation (NZF)

SECTION 2: How we operate

Our organisational structure:

----- Start of picture text -----
Advisors to Board of
the boar d Trust ees
Chief
Executive
Director of Director of
Director of
Marketing & Finance &
Fundraising Governance Operations
Head of
PR & A dvocacy Fundraising Head of Finance Head of People Quality
& Community Assurance Officer
Engagement
CRM & Data
Analyst
Head of Engagement Mosque Finance Officer Head of
Marketing Officer Technology
IT Support Officer
Marketing & Fundraising Business Support Head of
Comm unications
Officer Co-ordinator Manager Programmes
Community Zakat Empowerment Applicant Head of Giver
Programme Programme Services M anager Services
Manager Manager
Community Zakat CaseworkerProgramme Empowerment CaseworkerProgramme Senior Grants Officer x2 Reporting Officer
Grants Officer Customer
x7 Services Officer
Customer
Services Support
Officer
----- End of picture text -----

Impact report and financial statements 2024 27

SECTION 2: How we operate

How we manage the money givers trust us with

Managing risk

The Trustees assess all major risks to which the charity is exposed and review the systems and procedures established to manage those risks. The Charity has a Serious Incident policy in place and ensures that employees and Trustees have been trained on adhering to the policy. Trustees continue to ensure that all risks are managed appropriately. Trustees review systems and procedures for risk management throughout the year. In 2022, the Board introduced a separate Risk & Governance Committee, ensuring focus on the further development of risk management. In 2022, the Risk Management Policy was significantly updated, and all team members, middle management, and above developed and owned their own risk register.

The most significant risks are:

Financial: Risk of insufficient funds to cover the cost of managing the organisation.

This risk of not covering the cost of the distribution service – the service of checking applications and distributing Zakat to people in need – is mitigated by ensuring that each giver covers the direct cost of getting their Zakat to recipients, either through their Zakat or through an additional Sadaqah donation.

Historically, sufficient funds including Gift Aid have been generated to cover non-distribution costs of the organisation and the cost of raising funds.

The organisation’s strategy and its key elements (e.g. budgetary review and treasury management) are subject to regular review and oversight by the Finance and Audit Committee and Board, supported by operational updates and key operational metrics.

28 National Zakat Foundation (NZF)

SECTION 2: How we operate

People: Risk of insufficient leadership expertise or skilled staff.

Our people are our most valuable asset. We continue to create the conditions for our employees to thrive. We monitor diversity and inclusion as well as employee engagement. We provide ongoing opportunities for personal and professional development. We have put in place staff training. We have added new senior roles. We have filled experience gaps with external advisors. We have reviewed compensation to ensure it is in line with what skilled employees can expect.

Technology: Risk of failure of key IT systems.

The likelihood of this risk is being mitigated through operational systems, controls and improvements. Operational systems include full cloud capability, enabling effective remote working, online giving and online applying. Controls within this area include deployment of approved comprehensive IT policies and procedures to safeguard data and mitigate any breaches. Other mitigating actions include the continued enhancement of NZF’s technological infrastructure – notably, the successful implementation of a new CRM system, which now plays a central role in supporting service delivery and organisational data management. This system is regularly reviewed to ensure it continues to mitigate against IT system failures and supports efficient operations. In addition, NZF has cyber insurance to mitigate the impact of the risk.

Reputation and GDPR: The risk of incidents that damage reputation and/or negatively impact operations.

We carefully assess recipients of Zakat grants to ensure eligibility and likely impact, taking an approach that is proportionate to the size of the Zakat grant. We carefully assess suppliers to ensure they are viable, low-risk and can support us with quality work. We involve the Board where financial amounts are significant. We have put GDPR-compliant systems in place which are well above the minimum standard required and conduct an annual GDPR check. We have an external GDPR advisor.

Safeguarding: Risk of not protecting vulnerable people from harm.

This risk is mitigated by ensuring NZF has a safeguarding policy and training rolled out for both employees and Trustees, a policy which ensures reinforcement of good culture and good practice. We thoroughly reviewed and updated our policy in 2024. We maintain training on safeguarding, have a designated safeguarding lead, and ensure that community partners have a safeguarding policy in place. We will continue to provide safe places, encourage reporting of any issues, and take consistent action as required.

Impact report and financial statements 2024 29

SECTION 2: How we operate

Our approach to operations

We made continuous improvements in the use of our Customer Relationship Management (CRM) system for applicant and payer records. We also further embedded the use of our Accounting System, Accounts IQ.

Our public fundraising approach

Almost all our funds come from the public and our aim is to ensure we raise funds in a respectful and compelling way that is consistent with our values. We support measures that will improve public trust and support for the sector.

We actively encourage supporters to contact us with any feedback. No complaints relating to fundraising activities have been received by the charity during this financial period. We have in place procedures that would be followed in the event of a complaint being received, and these procedures are made publicly available on our website.

Charity Clarity provides an independent rating of charities. They reviewed NZF and gave a rating of 3.92 out of 5. The average rating on their website is 2.92.

We are registered with the Fundraising Regulator and pay an annual levy as required. We work diligently to comply with the Code of Fundraising Practice.

The Director of Communications and Head of Fundraising and Community Engagement managed most income-generation activities, guided and monitored by the CEO, with overall oversight by the members of the Board. In 2024, we did not use external professional fundraisers.

We have set standards for the operation and management of our fundraising activities. We contact a small number of our supporters by telephone each year who agree to be contacted in this way. Individuals who conduct this work are required to do so in a respectful manner and in accordance with our standards and sector regulation.

Our processes and controls ensure that vulnerable people and other members of the public are protected from unreasonable intrusion on a person’s privacy, and that no fundraising activities are unreasonably persistent or place undue pressure on a person to give money or other property.

https://charityclarity.org.uk/charities/nationalzakat-foundation/

General Data Protection Regulation

The General Data Protection Regulation (GDPR) became law in May 2018. The regulation sets out the responsibilities all organisations have in relation to the personal data they collect and hold and is designed to enhance the rights of individuals in controlling their own personal data.

We take privacy seriously. We’re committed to protecting personal data, and to ensuring that we’re compliant with the changes introduced by GDPR. We have put in place policies and procedures to comply with GDPR in the areas of data protection policies, data mapping, data retention and cleansing, data processing, supporter data privacy, consent and preference management. We hold an annual GDPR review.

We believe that every member of staff has a role to play, and we have regular training to ensure we’re all familiar and compliant with the new requirements.

30 National Zakat Foundation (NZF)

SECTION 2: How we operate

How we are governed

The Board of Trustees governs the organisation in line with its Articles of Association, vision, mission, values, charitable objectives and provides overall policy direction. The Board is responsible for compliance with the legal and statutory requirements of a UK charity and of a registered company.

The Board is currently made up of four members. The Board meets, at minimum, four times a year.

In addition, the Board has several working groups, consisting of Trustees and expert Advisors, whose purpose is to support management and advise the Board in their areas of expertise. These include the Finance and Audit Committee (FAC) which meets regularly to promote and safeguard the highest standards of integrity, financial reporting and internal control, and oversees capital spend projects.

The Board also has a Risk & Governance Committee which meets at least twice a year to provide oversight of the organisation’s governance and risk-management processes. A Technology Committee provides guidance, support and oversight of the Technology function including infrastructure, the CRM, digital product development and data analysis. A Marketing Working Group brings expertise in marketing, fundraising and communications to advise on the organisations fundraising and outreach activities. In 2024, a new Applicant Services Advisory Group was set up with external advisors reviewing our application process and framework.

People managers then align their objectives with these and set objectives for their direct reports. The Chief Executive and team leaders ensure that employees who have direct contact with recipients are regularly supported, trained and assessed to ensure their communication is in line with the charity’s values.

Organisational purpose: Public benefit

The Trustees confirm that they have complied with the duty under the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit. The Trustees consider these when reviewing the aims and objectives of National Zakat Foundation, and in planning activities for the future. The Trustees consider that the aims and activities of the charity are for public benefit.

The Trustees confirm that the aims of the charity continue to be charitable; that the work of the charity is in line with its objects; that the aims and the work done give identifiable benefits to the charitable sector and both directly and indirectly to individuals in need; that the benefits are for the public and are not unreasonably restricted in any way; and that there is no detriment or harm arising from any of the activities.

Trustees are rotated over a medium-to longterm basis, to provide fresh ideas and to avoid complacency in the role. One long serving Trustee left in the summer of 2024.

The Chief Executive Officer and his team make operational decisions and run the charity. The CEO is responsible for enacting the organisational objectives agreed with the Board.

“NZF’s commitment to streamline processes and facilitate giving is stronger than ever connecting even more zakat givers with those who desperately need it in our local communities.”

Anisa Hanif, Senior Legal Counsel at Mubadala Investment Company

Impact report and financial statements 2024 31

SECTION 2: How we operate

How we are governed continued

Board effectiveness

Trustees are recruited based on relevant expertise – skills, experience and qualifications – and alignment of their values with NZF’s values. Before appointment, potential Trustees meet with the Chair of the Board and the Chief Executive. The Board has defined a clear pathway for appointing new trustees which allows opportunity to assess their skills and suitability before they are invited to serve as trustees. Potential trustees will serve initially as advisors to a working group of which they may become a member after attending two working group meetings. The pathway allows progression to serve as an advisor to the Board and finally to serve as a Board member after attending two to three Board meetings. Progression at each stage is decided by the Chair of Trustees after consultation with the Board.

Trustees access internal and external training as required. The number of Trustees is within the range recommended by the Governance Code.

We are working on ensuring the profile of Trustees is broadly representative of the givers and recipients we serve, and that Trustees are empathetic. This means that we have an advisor with lived experience of poverty.

Our Trustees undergo a comprehensive induction programme and are offered training and development opportunities throughout their trusteeship.

Openness and accountability

We make our charity’s impact visible to givers and stakeholders through our website and update it on an ongoing basis. We regularly share stories of our recipients on our website and in external messaging.

We fully disclose details of our Trustees and their biographies on our website.

We have a disclosure policy available on our website, detailing what information we hold and how we process it, to provide confidence that we are securely handling private and often sensitive beneficiary and donor data.

Integrity

NZF’s Board of Trustees has established a solid foundation in governance in which all Trustees are clear about their roles and legal responsibilities, are committed to supporting the charity to deliver its objects most effectively for its beneficiaries and contribute to the charity’s continued improvement. We welcome the Charity Governance Code as a positive step toward improving governance and excellence in resource management in the sector.

We have a monthly Shariah audit undertaken by Mufti Amjad Mohammed, an external Shariah and Quality Auditor on behalf of the Markaz al-Ifta’ wa’l-Qada’.

Both the Board and the Finance and Audit Committee take feedback from the Shariah audit and regularly implement aspects for improved governance.

We have a Serious Incidents policy which requires the recording of any material incidents that occur within the organisation or in the delivery of our services.

We have a conflicts of interest policy, and detail potential conflicts within this report. In addition, each Trustee confirms annually that they are eligible to hold their position.

We meticulously account for all our income from all sources, including Gift Aid.

“Zakat plays a pivotal role in responding to the call of the poor and needy in the UK. Being such an important pillar that has real potential to tackle poverty, NZF’s presence has given it the credibility it deserves by addressing many of the socio-economic issues our society is crying out for today.”

Councillor Saima Ashraf, Advisor to Board and Deputy Leader of the London Borough of Barking & Dagenham

32 National Zakat Foundation (NZF)

SECTION 2: How we operate

Diversity

We recognise the benefits diversity can bring. The charity has an Equality and Diversity policy which extends across the organisation. We aim to promote good governance by helping the Board assess diversity at NZF from the perspective of staff, givers and recipients, and recommend improvements if identified.

Trustees and employees are from a range of backgrounds. We currently have three male trustees and one female trustee. The charity is BAME-led.

Environmental impact

We are constantly striving to reduce the charity’s impact on the environment.

Giving is almost all online - through the website, Paypal, and online bank transfers.

Most charitable activity continues to be online. Individuals in need apply online. Zakat grant recipients are financially supported through online bank transfers or digital vouchers. Educational events are equally held online and offline in community settings. We have started a small-scale programme of engagement with community partners so applicants have the opportunity to apply face-to-face.

All giver and applicant records are stored online. All Board papers are provided to Trustees online and stored online.

Most meetings are held online. All staff are based remotely. Our IT systems continue to work well to enable employees to work effectively. The team meet face-to-face minimum monthly to ensure team bonds remain strong.

NZF Worldwide

NZF Worldwide grants NZF UK an exclusive licence to use the intellectual property rights associated with the National Zakat Foundation brand in the UK.

NZF Worldwide is committed to:

Facilitate cooperation between NZF entities across the globe to improve efficiency, effectiveness and asset creation

In 2024, NZF Worldwide furthered the democratisation of its development, giving every country’s chairperson a role on the nonexecutive advisory board of NZF Worldwide, to improve alignment and coordination between the countries.

NZF Worldwide also held an annual summit, in 2024, involving all country NZFs. CEOs and chairs from all NZF entities came together to plan collaboration in services and infrastructure, to amplify the global impact of the NZF family and facilitate growth into new countries.

To enhance compliance architecture, NZF Worldwide introduced an Islamic jurist with excellent and extensive Zakat management experience, Mufti Amjad Muhammed, as its Chief Shariah Officer.

Impact report and financial statements 2024 33

SECTION 2: How we operate

How we manage our finances

Reserves policy

The Reserves policy is regularly reviewed by both the Finance and Audit Committee and the Board.

The Trustees have reviewed the reserves of the charity.

The charity’s total funds at the year-end amounted to £4,214,804 of which £2,118,953 were unrestricted general funds and £2,095,851 of the reserves were restricted funds.

The restricted funds were for distribution to Zakat-eligible individuals. The Zakat distribution reserves at year end were similar to the previous year. While givers gave 67% of the annual value of Zakat income in Ramadan, people in need apply for Zakat throughout the year. This means we need to retain sufficient Zakat distribution reserves at year end to give grants to individuals in the first part of the following year, before we receive that year’s Ramadan income.

Each year, substantial Sadaqah and other funds are raised to improve the financial health of the organisation and ensure that sufficient funds are generated beyond the initial reserves level. The Trustees consider that unrestricted general reserves are at a level that cover and exceed three months of non-distribution costs (operations salaries, office charges and cost of raising funds, less the costs of depreciation/ amortisation). This makes the threshold for 2024 £678k. This is considered a sufficient threshold for this purpose at the current time and in line with reserves policy.

Investment policy and performance

National Zakat Foundation holds the majority of all short-term investments as non-interestbearing cash deposits. The objective of our investment policy is to limit risk as far as is possible while earning such profit as is available on very secure deposits. Accordingly, our investment policy is to invest in short-term deposits and to hold cash only at those banks with a high credit rating.

Investment income in 2024 was £15,307 (2023: £24,866).

SECTION 2: How we operate

In assessing the Charity’s going concern assumption, we have carefully evaluated several key factors that reflect the organisation’s size and nature. This includes a thorough analysis of forecasts and budgets to ensure financial stability and sustainability. Additionally, we have scrutinised the timing of cash flows, which is crucial for maintaining liquidity and meeting the Charity’s obligations in a timely manner.

Going concern

The Trustees are required to consider whether it is appropriate for the NZF accounts to be prepared on a ‘going concern’ basis.

The going concern assumption is a fundamental principle in the preparation of financial statements, under which an entity cash flows, which is crucial for maintaining is ordinarily viewed as continuing in business in a timely manner. for the foreseeable future, under IAS 570, as a minimum 12 months after signing of the accounts. basis up until the end of June 2026.

Trustees have considered the going concern

Impact report and financial statements 2024 35

SECTION 2: How we operate

Our leadership team

TRUSTEES

Sultan Choudhury OBE (Chair)

Anisa Hanif Azim Kidwai – finished term July 2024 Shiraz Hussain Dr Shorful Islam

CHIEF EXECUTIVE

Sohail Hanif

AUDITOR

Sayer Vincent 110 Golden Lane London EC1Y 0TG

BANKERS

Al Rayan Bank Lloyds Bank

SOLICITORS

Bates Wells 10 Queen Street Place London EC4R 1BE

CHARITY NUMBER

1153719

COMPANY REGISTRATION NUMBER

08536743

REGISTERED OFFICE

Kemp House 152-160 City Road London EC1V 2NX

36 National Zakat Foundation (NZF)

SECTION 2: How we operate

Statement of Trustees’ responsibilities

The Trustees (who are also directors of National Zakat Foundation) for the purpose of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustees are aware:

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by Section 415A of the Companies Act 2006.

The financial statements 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 Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) – effective 1 January 2016.

On behalf of the Board

Sultan Choudhury OBE

Chair of Trustees

18 June 2025

Impact report and financial statements 2024 37

Section 3 Financial statements

38 National Zakat Foundation (NZF)

Impoct reFK)rt and finonciol strj ents 2024 39

SECTION 3: Financial statements

Independent auditor’s report to the members of National Zakat Foundation (NZF)

Opinion

We have audited the financial statements of National Zakat Foundation (NZF) (the ‘charitable company’) for the year ended 31 December 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

Have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on National Zakat Foundation (NZF)’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

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

We have nothing to report in this regard.

40 National Zakat Foundation (NZF)

SECTION 3: Financial statements

Opinions on other matters prescribed by the Companies Act 2006

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

The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

The trustees’ annual report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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

The financial statements are not in agreement with the accounting records and returns; or

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

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

The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Impact report and financial statements 2024 41

SECTION 3: Financial statements

Independent auditor’s report to the members of National Zakat Foundation (NZF) continued

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:

We inspected the minutes of meetings of those charged with governance.

We reviewed any reports made to regulators.

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

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

42 National Zakat Foundation (NZF)

SECTION 3: Financial statements

Use of our report

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

Jonathan Orchard

(Senior statutory auditor)

17 July 2025

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG

SECTION 3: Financial statements

Statement of financial activities for the year ended 31 December 2024

Note Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds 2024 Funds Funds 2023
£ £ £ £ £ £
INCOMING RESOURCES
Incoming Resources from
Generated Funds:
Donations and Legacies
Hardship Relief 2 - 6,151,015 6,151,015 - 4,776,514 4,776,514
Housing 2 - 1,046,123 1,046,123 - 1,313,056 1,313,056
Work & Education 2 - 264,737 264,737 - 473,352 473,352
Other 2 2,696,210 - 2,696,210 2,367,113 - 2,367,113
Investment Income 3 15,307 - 15,307 24,866 - 24,866
TOTAL INCOMING RESOURCES 2,711,517 7,461,875 10,173,392 2,391,979 6,562,922 8,954,901
RESOURCES EXPENDED
Raising Funds 4 661,758 - 661,758 639,689 - 639,689
Charitable Activities
Hardship Relief 4 996,234 5,556,449 6,552,683 837,914 5,752,903 6,590,817
Community Zakat Programme 4 260,903 551,600 812,503 194,789 1,273,478 1,468,267
Work and Education 4 203,521 207,954 411,475 199,396 575,601 774,997
Zakat Education and Calculation 4 449,009 - 449,009 266,386 - 266,386
TOTAL RESOURCES EXPENDED 2,571,425 6,316,003 8,887,428 2,138,174 7,601,982 9,740,156
Net Income/(Expenditure) 140,092 1,145,872 1,285,964 253,805 (1,039,060) (785,255)
Reconciliation of funds:
Total funds brought forward 15 1,978,861 949,979 2,928,840 1,725,056 1,989,039 3,714,095
Total funds carried forward 2,118,953 2,095,851 4,214,804 1,978,861 949,979 2,928,840

44 National Zakat Foundation (NZF)

SECTION 3: Financial statements

Balance Sheet as at 31 December 2024

Company number: 08536743
Note 2024 2023
£ £
FIXED ASSETS
Tangible assets 10 5,335 8,632
Intangible assets 11 139,913 76,976
145,248 85,608
CURRENT ASSETS
Debtors 13 335,490 167,303
Investments 12 111,351 269,736
Cash at bank and in hand 3,654,026 2,444,748
Short-term deposits 76,630 67,610
4,177,497 2,949,397
LIABILITIES
Creditors: amounts falling due within one year 14 (107,941) (106,165)
TOTAL NET CURRENT ASSETS OR LIABILITIES 4,069,556 2,843,232
TOTAL NET ASSETS OR LIABILITIES 4,214,804 2,928,840
THE FUNDS OF THE CHARITY
Unrestricted funds
General funds 16 2,118,953 1,978,861
Restricted funds
Restricted zakat funds, restricted sadaqah 16 2,095,851 949,979
and grants
TOTAL FUNDS 4,214,804 2,928,840

The financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and in accordance with the Financial Reporting Standard (FRS102) (effective 01 January 2016).

Approved by the Board on 18 June 2025 and signed on its behalf by:

Sultan Choudhury OBE

Chair of Trustees

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SECTION 3: Financial statements

Statement of cash flows for the year ended 31 December 2024

2024 2023
£ £
Reconciliation of net income/(expenditure) to net cash fow from operating activities
Net income/(expenditure) for the reporting period 1,285,964 (785,255)
(as per the statement of fnancial activities)
Adjustments for:
Depreciation/Amortisation charges 33,373 26,244
(Gains)/losses on investments - -
Dividends, interest and rents from investments (15,307) (24,866)
Loss/(proft) on the sale of fxed assets - -
(Increase)/decrease in stocks - -
(Increase)/decrease in debtors (168,187) (46,470)
Increase/(decrease) in creditors 1,776 590
Net cash provided by (used in) operating activities 1,137,619 (829,757)
Cash fows from operating activities: 1,137,619 (829,757)
Net cash provided by (used in) operating activities
Cash fows from investing activities:
Dividends, Gains and rents from investments 9,020 7,537
Purchase of Intangibles (91,537) (67,947)
Purchase of property, plant and equipment (1,476) (6,298)
Purchase of investments (275,544) (150,000)
Cash held for Investment Purposes - 150,000
Proceeds from sale of investments 440,216 -
Movements of cash to short-term deposits (9,020) (57,506)
Net cash provided by (used in) investing activities 71,659 (124,214)
Change in cash and cash equivalents in the reporting period 1,209,278 (953,971)
Cash and cash equivalents at the beginning of the reporting period 2,444,748 3,398,719
Change in cash and cash equivalents due to exchange rate movements - -
Cash and cash equivalents at the end of the reporting period 3,654,026 2,444,748

46 National Zakat Foundation (NZF)

SECTION 3: Financial statements

Notes to the financial statements for the year ended 31 December 2024

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.

1.1 Legal status

National Zakat Foundation (NZF) is a company limited by guarantee, company number 08536743 registered in England & Wales, and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £10 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

NZF’s Charity Commission registration number is 1153719 and its registered address is Kemp House, 124 City Road, London, EC1V 2NX.

1.2 Basis of preparation

The financial statements are prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Charities SORP (FRS102, effective 1 January 2016), the Financial Reporting Standard applicable in the UK and the Republic of Ireland.

The National Zakat Foundation meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Preparation of the accounts on a going concern basis

After making enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. The trustees are not aware of any material uncertainties about the charity’s ability to continue and accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees’ Responsibilities on page 37.

1.3 Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described in this note, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

In the view of the Trustees the only significant estimations are those linked to the allocation of support costs across our charitable and non-charitable activities. Allocations of this nature inherently require estimation of time spent on certain activities and other resources use judgements.

Impact report and financial statements 2024 47

SECTION 3: Financial statements

Notes to the financial statements continued

1.4. Volunteers

Volunteers support the work of National Zakat Foundation in two ways:

Contributing professional services

Professionals contribute their services at a reduced or pro bono rate. This includes financial skills, human resources support and legal advice.

The value of services provided by these volunteers has been included in the financial statements.

Raising awareness

Volunteers across the UK help spread the message both online and offline about National Zakat Foundation so more people know what the organisation does and why it exists. This may involve sharing social media posts, distributing flyers at events or facilitating Zakat workshops/seminars.

Due to the difficulty in valuing the total contribution of volunteer time and skills, the value of services provided by volunteers has not been included in the financial statements.

1.5. Income

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.

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

1.6. Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT incurred and is reported as part of the expenditure to which it relates.

Charitable activity comprises those costs incurred by the charity in the delivery of its activities and services for its grant recipients and other beneficiaries. These include those that can be allocated directly to such activities. Costs of raising funds comprises the costs associated with attracting voluntary income.

1.7. Support costs and governance costs

Support costs are those costs incurred directly in support of expenditure on the objectives of the charity. Governance costs are a component of support costs, and include audit fees, professional fees, licence fees and compliance costs, and related staff costs. Support costs are allocated on the basis of the amount of direct time attributable to each area.

48 National Zakat Foundation (NZF)

SECTION 3: Financial statements

1.8 Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Where unrestricted funds have been designated, the likely timing of the expenditure is before the start of the following Ramadan.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

1.9 Financial instruments

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value (including transaction costs) and are subsequently re-measured where applicable at amortised cost.

1.10 Investments

Investments are a form of basic financial instrument with expected maturity of less than one year. Investments are initially recognised at the transaction value. Subsequent re-measurement is at amortised cost, at the undiscounted amount of cash or other consideration expected to be received.

1.11 Cash at bank and in hand and on deposit

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash held on deposit includes short term investments with a maturity of up to four months held in a deposit account; these represent a portion of Zakat funds which are released over the course of the Zakat distribution cycle to ensure that distribution of Zakat occurs throughout the year.

1.12 Tangible and intangible fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation/amortisation. Depreciation/amortisation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Leasehold improvements - Straight line over 5 years
Fixtures, fttings and equipment - Straight line over 3 years
Intangible assets - Straight line over 3 years

All items of expenditure greater than £750 are capitalised if they meet the definition of a fixed asset as stated within FRS102.

1.13 Operating leases

The charity classifies the lease of office equipment and office space as operating leases. Rental charges are charged on a straight-line basis over the term of the lease.

Impact report and financial statements 2024 49

SECTION 3: Financial statements

Notes to the financial statements continued

2. VOLUNTARY INCOME

Unrestricted Restricted Total Funds Unrestricted Restricted Total Funds
Funds Funds 2024 Funds Funds 2023
£ £ £ £ £ £
Zakat 638,964 7,372,183 8,011,147 624,376 6,484,497 7,108,873
Zakat-ul-Fitr - 57,360 57,360 - 43,889 43,889
Fidyah & Kafarah - 32,332 32,332 - 34,536 34,536
Sadaqah 707,709 - 707,709 519,901 - 519,901
Riba 342,647 - 342,647 170,193 - 170,193
In-Kind Donations - - - 27,500 - 27,500
Income for NZF services 493 - 493 599 - 599
Gift Aid 1,006,397 - 1,006,397 1,024,544 - 1,024,544
2,696,210 7,461,875 10,158,085 2,367,113 6,562,922 8,930,035

Zakat: We use 100% of Zakat for charitable activity. (2023:100%) We do not use Zakat to raise funds or for nondistribution related expenditure. Of the £8,011,147 Zakat, £638,964 of Zakat (2023: £624,376) is used or will be used to cover the cost of distributing the Zakat.

Zakat-ul-Fitr: The use of funds is restricted to providing cash grants for food for the poor and needy.

Fidyah and Kaffarah: The use of funds is restricted to providing cash grants for the poor and needy.

The remaining unrestricted funds are used to cover other direct charitable expenses, support and governance costs as well as the cost of raising funds.

3. INVESTMENT INCOME

Total Funds Total Funds
2024 2023
£ £
Income on deposits 9,020 7,537
Return on Investments 6,287 17,329
15,307 24,866

Investment income comes from a Sharia compliant property debt platform.

50 National Zakat Foundation (NZF)

SECTION 3: Financial statements

4. ANALYSIS OF EXPENDITURE - Expenditure by activity

Hardship Community Work and Zakat Total direct Cost of Total Total
Relief Zakat Education Education cost of Raising 2024 2023
£ Programme £ and charitable Funds £ £
£ Calculation activity £
£ £
Zakat and
Zakat ul Fitr
grants 5,556,449 551,600 207,954 - 6,316,003 - 6,316,003 7,601,982
Direct
employees
cost 517,209 131,328 116,040 112,427 877,004
 145,462 1,022,466 886,938
Direct costs 297,153 94,363 52,974 319,250 763,740
 449,066 1,212,806 989,358
Support &
governance
costs 181,872 35,212 34,507 17,332 268,923 67,230 336,153 261,878
Total 6,552,683 812,503 411,475 449,009 8,225,670
 661,758 8,887,428 9,740,156

Prior Year

Hardship Housing Work and Zakat Total direct Cost of Total Total
Relief £ Education Education cost of Raising 2023 2022
£ £ and charitable Funds £ £
Calculation activity £
£ £
Zakat and
Zakat ul Fitr
grants 6,958,556 67,825 575,601 - 7,601,982 - 7,601,982 3,830,183
Direct
employees
cost 487,125 71,450 106,299 68,597 733,471
 153,467 886,938 690,674
Direct costs 272,267 28,083 64,132 166,153 530,635 458,723 989,358 1,012,388
Support &
governance
costs 170,090 3,688 28,965 31,636 234,379 27,499 261,878 154,843
Total 7,888,038 171,046 774,997 266,386 9,100,467
 641,767 9,740,156 7,540,985

Impact report and financial statements 2024 51

SECTION 3: Financial statements

Notes to the financial statements continued

Expenditure by income type

Hardship Community Work and Zakat Total direct Cost of Total Total
Relief Zakat Education Education cost of Raising 2024 2023
£ Programme £ and charitable Funds £ £
£ Calculation activity £
£ £
Zakat and
Fidyah/
Kafarah 5,499,089 551,600 207,954 - 6,258,643 - 6,258,643 7,558,093
Zakat ul Fitr 57,360 - - - 57,360 - 57,360 43,889
Zakat - for
distribution
service 484,542 54,377 20,500 - 559,419 - 559,419 766,509
Sadaqah,
Riba, Gift
Aid and
other
income 511,692 206,526 183,021 449,009 1,350,248 661,758 2,012,006 1,371,665
Total 6,552,683 812,503 411,475 449,009 8,225,670 661,758 8,887,428 7,540,985

Prior Year

Hardship Community Work and Zakat Total direct Cost of Total Total
Relief Zakat Education Education cost of Raising 2024 2023
£ Programme £ and charitable Funds £ £
£ Calculation activity £
£ £
Zakat and
Fidyah/
Kafarah 6,914,667 67,825 575,601 - 7,558,093 - 7,558,093 5,501,936
Zakat ul Fitr 43,889 - - - 43,889 - 43,889 36,039
Zakat - for
distribution
service 625,838 82,028 58,643 - 766,509 - 766,509 557,220
Sadaqah,
Riba, Gift
Aid and
other
income 303,644 21,193 140,753 266,386 731,976 639,689 1,371,665 1,445,790
Total 7,888,038 171,046 774,997 266,386 9,100,467 639,689 9,740,156 7,540,985

52 National Zakat Foundation (NZF)

SECTION 3: Financial statements

5. ANALYSIS OF SUPPORT COSTS AND GOVERNANCE COSTS

2024 £ 2023 £
Support Costs
Ofce administration 112,407 57,588
Ofce Services excl depreciation 38,413 39,278
Depreciation 10,469 5,456
Ofce services 48,882 44,734
Governance (incl External Audit) 174,864 159,556
Total 336,153 261,878
2024 £ 2023 £
Governance costs
Audit Fees 13,230 12,600
Auditor Fees for other services 1,200 1,200
Other professional fees 25,774 9,341
License fee and compliance costs 37,349 58,100
Staf costs 97,311 78,316
Total Governance costs 174,864 159,557

During 2024, other professional fees consisted of legal fees and external accountancy services. Audit Fees for other services in 2024 relates to tax preparation of the 2023 accounts.

6. ZAKAT GRANTS PAID TO ORGANISATIONS

The charity did not pay any Zakat grants to organisations in 2024. (2023:nil)

7. NET INCOMING RESOURCES

NET INCOMING RESOURCES
2024 £ 2023 £
Net incoming resources for the period is stated after charging:
Gains on disposal of fxed assets - -
Losses on disposal of fxed assets - -
Depreciation and other amounts written of fxed assets 33,373 26,245
Operating lease charges - -
Auditors remuneration (excluding VAT):
- Audit fees 11,025 10,500
- Other fees 1,000 1,000

All VAT is irrecoverable, therefore the full cost to NZF of the services received from the auditors is £14,430 (2023: £13,800).

Impact report and financial statements 2024 53

SECTION 3: Financial statements

Notes to the financial statements continued

8. STAFF AND TRUSTEE INFORMATION

Employment costs: 2024 £ 2023 £
Wages and salaries 1,047,004 904,402
Redundancy 12,692 -
Social security costs (employers NI) 100,388 77,699
Employer pension contribution 39,686 22,527
Total 1,199,770 1,012,330
2024 2023
The number of employees with emoluments between £60,000 to £70,000 per annum 2 0

Employees costs exclude amounts paid to external consultants in 2024 of £95,766 (2023 £67,837).

Trustee costs

The charity Trustees were not paid and did not receive any other benefits from employment with the charity in the year (2023: £nil). In 2024, £805 was claimed for travel expenses by a trustee (2023: £nil). No charity trustee received payment for professional services or other services supplied to the charity (2023: £nil).

Key Management Remuneration

Employee benefits of Key Management Personnel totalled £271,570 (2023: £192,362) including Employers NI. The employees’ component of this cost is included within employment costs above; the consultant component is included within the consultants’ payments above.

Employee numbers:

The average number of persons employed by National Zakat Foundation whether on a full time or part time basis during the period was as follows:

2024 2023
FTE FTE
Total number of Staf 30.6 26.4
2024 2023 2024 2023
Average employee numbers by team No. No. FTE FTE
Services 24 21 19.7 17.0
Operations 6 4 4.8 4.5
Marketing 5 7 6.0 4.9
Total 35 32 30.6 26.4

The average employee numbers above reflect the number of staff as well the full time equivalent (FTE) average headcount.

54 National Zakat Foundation (NZF)

SECTION 3: Financial statements

9. TAXATION

The National Zakat Foundation is a registered charity and, as such, is exempt from taxation on its income to the extent it is applied to its charitable purposes.

10. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Fixtures,
fttings and
equipment Total
£ £
Cost
At 1 January 2024 25,661 25,661
Additions in year 1,476 1,476
Disposals in year - -
At 31 December 2024 27,137 27,137
Depreciation
At 1 January 2024 17,029 17,029
Charge for the year 4,773 4,773
Eliminated on disposal - -
At 31 December 2024 21,802 21,802
Net book value
At 31 December 2024 5,335 5,335
At 31 December 2023 8,632 8,632

Impact report and financial statements 2024 55

SECTION 3: Financial statements

Notes to the financial statements continued

11. INTANGIBLE ASSETS

INTANGIBLE ASSETS
Total
£
Cost
At 1 January 2024 270,891
Additions in year 91,537
Disposals in year -
At 31 December 2024 362,428
Amortisation
At 1 January 2024 193,915
Charge for the year 28,600
Eliminated on disposal -
At 31 December 2024 222,515
Net book value
At 31 December 2024 139,913
At 31 December 2023 76,976

12. INVESTMENTS

Analysis of movement 2024 £ 2023 £
Investments at 01 January 269,736 252,407
Purchase of Investment at cost 275,544 150,000
Returns on Investments 2,345 17,329
Disposal Proceeds (436,274) (100,000)
Cash held for Investment Purposes - 100,000
Release of Cash held to Purchase Investment - (150,000)
Investments at 31 December 111,351 269,736

13. DEBTORS

2024 £ 2023 £
Accrued Income 20,447 13,790
Prepayments 4,976 16,775
Other debtors 310,067 136,738
335,490 167,303

56 National Zakat Foundation (NZF)

SECTION 3: Financial statements

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024 £ 2023 £
Trade creditors 74,861 65,428
Accruals and deferred income 25,266 29,544
Other creditors 7,814 11,193
107,941 106,165

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2024 2023
£ £ £ £
Fund balances at 31 December as represented by:
Tangible and intangible fxed assets 145,247 - 145,247 85,608
Net Current assets 1,973,706 2,095,851 4,069,557 2,843,323
Total 2,118,953 2,095,851 4,214,804 2,928,840

Prior Year

Prior Year
Unrestricted Restricted Total Funds Total Funds
Funds Funds 2023 2022
£ £ £ £
Fund balances at 31 December as represented by:
Tangible and intangible fxed assets 85,608 - 85,608 37,607
Net Current assets 1,893,253
 949,979 2,843,232 3,676,488
Total 1,978,861 949,979 2,928,840 3,714,095

Impact report and financial statements 2024 57

SECTION 3: Financial statements

Notes to the financial statements continued

16. ANALYSIS OF FUNDS

1 January Incoming Outgoing Transfers 31 December
2024 Resources Resources £ 2024
£ £ £ £
Unrestricted designated - - -
General Funds 1,978,861 2,711,517 (2,571,425) - 2,118,953
Total Unrestricted Funds 1,978,861 2,711,517 (2,571,425) - 2,118,953
Zakat funds 949,979 7,372,183 (6,226,311) 2,095,851
Zakat-ul-Fitr - 57,360 (57,360) -
Fidyah and Kafarah - 32,332 (32,332) -
Total Restricted Funds 949,979 7,461,875 (6,316,003) - 2,095,851
Total Funds 2,928,840 10,173,392 (8,887,428) - 4,214,804
Prior Year
1 January Incoming Outgoing Transfers 31 December
2023 Resources Resources £ 2023
£ £ £ £
Unrestricted designated - - -
General Funds 1,725,056 2,391,979 (2,138,174) - 1,978,861
Total Unrestricted Funds 1,725,056 2,391,979 (2,138,174) - 1,978,861
Zakat funds 1,989,039 6,484,497 (7,523,557) 949,979
Zakat-ul-Fitr - 43,889 (43,889) -
Fidyah and Kafarah - 34,536 (34,536) -
Total Restricted Funds 1,989,039 6,562,922 (7,601,982) - 949,979
Total Funds 3,714,095 8,954,901 (9,740,156) - 2,928,840

58 National Zakat Foundation (NZF)

SECTION 3: Financial statements

17. OPERATING LEASE COMMITMENTS

The charity did not have any operating lease commitments in 2024 (2023: nil).

18. RELATED PARTIES

Azim Kidwai was a Trustee of NZF in 2024 (resigned 8th July 2024), CEO of Mercy Mission and a Director of NZF Worldwide.

In 2024, NZF paid £24,000 (2023: £24,000) to NZF Worldwide in License Fees as part of a brand licensing agreement and £24,000 (2023: £28,494) to NZF Worldwide as part of a Service Level Agreement. A further £30,000 was paid in 2024 in relation to 2023 expenditure.

In return, in 2024, NZF Worldwide helped develop a global strategy which will inform development of our governance framework, conducted training in fundraising and organised a global brand strategy workshop. This was done to explore how NZF can share resources globally within the NZF family in order to improve efficiencies and reduce costs.

In line with the Service Level agreement, NZF Worldwide researched calculation matters and managed Zakat calculation queries throughout the year, and specifically in the Ramadan period. NZF Worldwide delivered two months of Zakat consultancy to NZF UK in the Ramadan period ensuring that donors to NZF UK have calculation support in relation to their Zakat payments.

Income of £64,582 was received through Mercy Mission in 2024 (2023: £709,672).

Sultan Choudhury OBE is a trustee of NZF and also a director of OFFA (OFFA Holdings Limited). During 2024, NZF entered into two investment arrangements through OFFA, a related party.

As at end of the year, £111,272 was held with OFFA as investments and income of £3,943 was received in the year.

In 2024, total Trustee donations amounted to £3,828 (2023: £4,688).

Impact report and financial statements 2024 59

Building a stronger UK Muslim community through local Zakat

National Zakat Foundation (NZF) is a registered charity in England and Wales (1153719)