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2025-08-31-accounts

Ad Duha Foundation CIO

Trustees’ Annual Report

For the year ended 31 August 2025

1. Objectives and Activities

The charity’s objectives are to promote Islamic education and spiritual development, primarily through maktab classes and community-based educational programmes. The charity also organises events and provides support for personal and community learning.

Ad Duha Foundation CIO exists to promote Islamic education, spiritual development and community benefit through maktab classes, educational programmes, youth activities, family support, community outreach and the development of a dedicated masjid and community hub.

During the year, the charity’s main activities included:

A major focus of the year was the new building project. The charity is working to develop a larger space for prayer, maktab, Islamic education, youth work, sisters’ programmes, family support and wider community use.

Fundraising activities during the year included a charity dinner, Jumu‘ah collections, masjid collections, food sales and crowdfunding links shared with the congregation. These activities helped support the charity’s ongoing services and the new building project.

The trustees have had regard to the Charity Commission’s public benefit guidance. The trustees believe the charity’s activities provide public benefit by supporting education, strengthening families, providing positive spaces for young people, supporting community wellbeing and developing facilities for long term community use.

2. Achievements and Performance

During the year, the Foundation served over 150 children in its maktab classes, expanded its teaching team, and delivered educational events and workshops. Significant improvements were made in the use of digital tools for online and hybrid learning.

During the year ended 31 August 2025, Ad Duha Foundation CIO continued to expand its educational, spiritual and community work.

The charity served over 150 children through its maktab classes and strengthened its teachingteam, improving the quality, structure and consistency of Islamic education delivered to children and families.

A wide range of programmes were delivered for adults, young people, sisters and families,

including:

These services helped meet practical, emotional, spiritual and social needs within the community.

A significant achievement during the year was progress on the new building project. The charity purchased the new building and began working towards transforming it into a masjid and community hub. Initial assessments identified structurally unsound portacabins, badly damaged roofing and poorly supported internal walls, requiring major replacement, demolition and reconfiguration work.

Demolition and clearance work began during the year, much of which was carried out by volunteers. This helped reduce costs and maximise the impact of donations. Volunteers stripped the building, cleared internal and external debris, removed internal walls, dismantled portacabins and prepared the site for future development.

Unit 4 presented a particular challenge due to its solid construction, however volunteers successfully broke through and cleared the space. Several internal walls were removed to create one large open hall,forming a spacious area for sisters’ prayer and activities.

The portacabin roof was removed and the structure carefully dismantled. Waste from demolition was managed through skips to ensure safe and efficient disposal. To further optimise the budget, all salvageable timber was diverted for recycling or repurposed, ensuring a cost-effective and responsible removal process.

The roof was completely refurbished to provide a safe and lasting structure, with protective materials installed to guard against moisture and preserve the work completed so far. Exterior works also began,including the removal of the old front signage, marking the beginning of the building’s outward transformation.

Fundraising efforts increased during the year, alhamdulillah:

Donations, collections, food sales and donor engagement supported both ongoing activities and the new building project.These contributions directly supported maktab provision, community programmes, youth and family services and the development of future facilities.

The charity improved its use of digital tools for:

Overall, the trustees are pleased with the progress made during the year. The charity continued to serve children and families, delivered a broad range of community activities,

strengthened donor engagement and made meaningful progress towards establishing a dedicated masjid and community hub.

3. Financial Review

During the year ended 31 August 2025, the charity generated total income of £755,243 (2024: £217,763) and incurred total expenditure of £172,534 (2024: £110,059), resulting in a net surplus of £582,709 (2024: £107,704).

During the year, the charity acquired a freehold land and building at a cost of £717,611. The property has been purchased to support and further the charity's long-term charitable objectives by providing a permanent base for its activities and future development.

At 31 August 2025, the charity held total funds of £847,210 (2024: £264,501), including fixed assets of £720,168 and cash balances of £648,075. The property purchase was partly financed through an interest-free Qardh Hasan loan of £521,000, with the remaining balance funded from the charity's own resources.

The trustees are satisfied that the charity remains in a strong financial position and has sufficient resources to continue delivering its charitable objectives.

4. Reserves Policy

The trustees have established a reserves policy to ensure that the charity maintains sufficient funds to manage its ongoing commitments and unforeseen expenditure.

The charity aims to hold free reserves equivalent to at least three months’ operating costs, currently estimated at approximately £25,000. This level of reserves is considered adequate to cover essential costs such as rent, utilities, staff costs, and other running expenses in the event of a temporary shortfall in income.

The reserves are intended to provide the charity with financial stability and flexibility, enabling it to continue delivering its charitable activities without interruption.

The trustees review the reserves level annually and may adjust the target amount as necessary based on changes in the charity’s activities and financial position.

5. Structure, Governance and Management

The charity is governed by a constitution as a Charitable Incorporated Organisation (CIO). The Board of Trustees oversees strategic direction and compliance. Day-to-day operations are managed by staff and volunteers.

6. Trustees

The trustees during the year were:

7. Statement of Responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with the Charities Act 2011.

Signed on behalf of the trustees,

Azhar Mohammed

Chair of Trustees Date: 29/06/2026

Ad Duha Foundation CIO - 1180615

Statement of Financial Activities (SoFA) for the year end Aug 2025

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Unrestricted Funds (£) Restricted Funds (£) Total AUG 2025 (£)
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Income
Donations 692993 0 692993
Maktab Fees 62250 0 62250
Total Income 755243 0 755243
Expenditure
Charitable Activities (Total Expenses) 172534 0 172534
Total Expenditure 172534 0 172534
Net Income 582709 0 582709
Total Funds Brought Forward 264501 0 264501
Total Funds Carried Forward 847210 0 847210

Ad Duha Foundation CIO - 1180615 Accruals Accounts for the year end Aug 2025

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AUG AUG
Category 2025 (£) 2024 (£)
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Category
2025 (£) 2024 (£)
Income
Donations 692993 176569
Fees 62250 41194
Total Income 755243 217763
Expenses
Advertising -4,055 -553
Bank charges -1,213 0
Broadband -506 -504
Cleaning -2,250 -1,870
Depreciation -514 -1,192
Donations -11,377 -8,744
Equipment hire -359 -454
Event Expenses -1,157 -11,438
Insurance -222 -202
Light and Heat -20,852 -8,475
Other Legal and Professional -2,740 -131
Purchases -7,509 0
Rent -30,000 -33,119
Repairs & Maintanence -4,586 -1,415
Software -951 -2,014
Staff Costs -60,469 -34,576
Stationery & Printing -1,711 -4,085
Subscription -1,508 -281
Sundry -3,923 -7
Wages -16,021 -686
Website -611 -313
Total Expenses -172534 -110059
Net Surplus 582709 107704

Ad Duha Foundartion CIO Balance Sheet As at 31 August 2025

Fixed assets
Computers - B/f
Computers - Depreciation B/f
Computers - Depreciation during the year
Equipment - Additions
Equipment - Depreciation B/f
Equipment - Depreciation during the year
Land & Buildings - Additions
Debtors
Prepayments
Bank
Current a/c
Paypal A/c
Creditors
PAYE & NI
Qardh E Hasana
Net assets
Charity funds
Surplus Brought Forward
Net Surplus for the year
Total funds
Aug
2025
£
1,700
-1,169
-133
398
3,175
-635
-381
2,159
717,611
717,611
720,168
0
0
637,537
10538
648,075
648,075
-33
-521,000
-521033
847,210
£
264,501
582,709
847,210
847,210
Aug
2024
£
1,700
-1,169
0
531
3,175
-635
0
2,540
0
0
3,071
24,813
24,813
236,617
0
236,617
236,617
0
0
0
0
264,501
£
156,797
107,704
264,501
264,501

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Ad Duha Foundartion CIO
Notes to Accounts
As at 31 August 2025
Note Description
1. Accounting Policies The accounts have been prepared on an accrual basis in accordance with the Charities SORP (FRS 102).
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Note
1. Accounting Policies
Description
The accounts have been prepared on an accrual basis in accordance with the Charities SORP (FRS 102).
2. Income Income includes donations and fees received for maktab classes.
3. Expenditure Expenditure includes teaching costs, rent, utilities, events costs, donations to other charities
4. Staff Costs The charity employed 2 staff during the year. No pensions or benefits were paid.
5. Trustee Remuneration No trustee received any remuneration or expenses.
6. Reserves Policy The trustees have established a reserves policy to ensure that the charity maintains sufficient funds to manage its ongoing commitments and unforeseen expenditure.
The charity aims to hold free reserves equivalent to at least three months’ operating costs, currently estimated at approximately £25,000. This level of reserves is considered adequate to cover essential costs such as rent, utilities, staff costs, and other running expenses in the event of a temporary shortfall in income.
The reserves are intended to provide the charity with financial stability and flexibility, enabling it to continue delivering its charitable activities without interruption.
The trustees review the reserves level annually and may adjust the target amount as necessary based on changes in the charity’s activities and financial position.

Independent examiner's report on the accounts

Section A Independent Examiner’s Report

Report to the trustees/ Charity Name AD DUHA FOUNDATION members of On accounts for the year AUGUST 2025 Charity no 1180615 ended (if any) Set out on pages

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31/08/2025

Responsibilities and As the charity trustees of the Trust, you are responsible for the preparation basis of report of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Signed: F.Munshi Date: 29/06/2026 Name: Falaknaaz Munshi T/a FAZ Accountants Ltd Relevant professional ICAEW qualification(s) or body (if any):

Address: Office 208, 69 Steward Street, Birmingham B18 7AF

Section B Disclosure

Only complete if the examiner needs to highlight matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners).

1

IER

Give here brief details of N/A any items that the examiner wishes to disclose .

2

IER