2020-12-31-accounts

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Islamic Relief Worldwide Annual Report and Financial Statements 2020

Cover photo: By Majdi Samaan/Islamic Relief Worldwide

“Our life was good, until the bombing forced us to leave. There were many injured people – we ran for our lives,” says Abu Ahmed, recalling the day conflict reached his village, Anjara, in the countryside near Aleppo, Syria. He and his family fled to Idlib governorate, leaving behind the farming livelihood upon which they had depended.

“We were unemployed, there were no jobs and we relied on aid and food baskets from organisations. We were living in a state of lethargy – until this project came, and we felt hopeful and energised,” explains Abu Ahmed. He began renting some land, using the seeds and fertiliser he received from Islamic Relief to restart his livelihood.

“We got on our feet, cultivating and working on the land as before. We are self-reliant again. We moved out of our tent and into a house,” says the father-of-seven. He is thankful that they no longer endure the dire conditions in overcrowded camps, where coronavirus is spreading. “My grandchildren come here to play – seeing the green fields makes them happy. We do not need to mix much with people, and the open air reduces the risk of being infected with coronavirus. I thank Islamic Relief for such projects, which present a glimmer of hope that we can continue life. Thank God, we have not lost hope.”

© Islamic Relief Worldwide 2021

This publication including text, photos and design, unless stated otherwise is subject to copyright. The contained text may be used free of charge for the purposes of advocacy, campaigning, education and research, provided that the source is acknowledged in full. Islamic Relief Worldwide requests that all such use be registered with us to monitor the impact for advocacy purposes. For usage in any other circumstances, translation or adaptation, permission must be sought and a fee may be charged. For further information, please email irw@irworldwide.org

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2019

Message from the Chair of Trustees	4
Message from the Chief Executive	5
Our vision and strategy	6
Our global reach	8
2020 in numbers	10
Our income in 2020	12
Our expenditure in 2020	13
Humanitarian	14
Development	28
Campaigns	37
Partnerships	44
Some of our valued partners	50
Structure, governance and management	54
Executive management team and trustees’ responsibilities	60
Principal risks and uncertainties	64
Financial review	66
Independent auditor’s report to the members and trustees	70
of Islamic Relief Worldwide
Group statement of fnancial activities and income and expenditure	74
account for the year ended 31 December 2020
Parent charitable company statement of fnancial activities and	75
income and expenditure account for the year ended 31 December 2020
Group and charity balance sheets as at 31 December 2020	76
Group cash fow statement for the year ended 31 December 2020	77
Notes to the fnancial statements	78
Corporate directory	100

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

In the name of Allah, Most Merciful, Most Compassionate.

MESSAGE FROM THE CHAIR OF TRUSTEES

Assalamu alaykum Peace be with you

We look back on 2020 as an extraordinary year for us all. It was a year in which the Covid-19 pandemic killed hundreds of thousands of people and wreaked economic havoc, decimating livelihoods and stopping normal life in its tracks.

As this Annual Report and Financial Statements record, 2020 was also an extraordinary year for Islamic Relief – a year of huge challenges and yet also one of significant achievements in the face of adversity.

The pandemic has had a profound effect on the communities who rely on us for life-saving aid and on those who give so generously to support our work. It has restricted our operations, sometimes severely, and personally affected many of our staff, our donors and their families.

Despite these challenges, we have stepped up to deliver a major programme of coronavirus health education, prevention and economic support on top of all our other projects. We have stood by the people we serve in some of the world’s poorest communities and in areas of devastating crisis such as Syria and Yemen. Meanwhile our donors have stood by us at a time of real economic uncertainty.

Despite the challenges created by the pandemic, our supporters continued to support us, may Allah reward them. My warmest thanks to them for their incredible generosity, which meant that the annual income of Islamic Relief Worldwide reached £149 million in 2020 – a striking increase of nearly 14 per cent. This enabled us to touch the lives of 13.8 million people in 39 countries last year – a new record.

I want to pay tribute to the dedicated staff and volunteers who have remained in the frontline of our aid delivery through the pandemic. I also want to commend our fundraisers for their adaptability and inventiveness, switching to innovative virtual events and digital marketing when the mosques closed and more traditional ways of giving were cut off.

It is my privilege to have taken up the position of Chair of Islamic Relief Worldwide in August 2020 as part of far-reaching governance reforms that have been six years in the making. In place of a small, self-appointed Board of Trustees we now have a larger Board that is elected by a newly established International General Assembly whose members include representatives of our member offices across five continents.

I owe a debt of gratitude to my predecessor Lamia El Amri, who served with distinction as Chair for five years from 2015 and more recently supported me as Vice Chair, navigating us through these governance changes. We now have a Board that is more globally representative and diverse, and this will be enhanced further when we add openly recruited independent trustees to the Board in 2021-22.

May Allah continue to bless us with the means and the opportunity to serve humanity sincerely and tirelessly, to the very best of our ability.

Dr Ihab M. H. Saad

Chair of the Board of Trustees, Islamic Relief Worldwide

TRUSTEES’ STRATEGIC REPORT

Our trustees are pleased to present their annual report with the audited consolidated financial statements of Islamic Relief Worldwide and its subsidiaries for the year ended 31 December 2020.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

MESSAGE FROM THE CHIEF EXECUTIVE

Assalamu alaykum Peace be with you

From natural disasters to conflict, from sudden calamities to crises that emerge over a period of years, Islamic Relief has been responding to humanitarian emergencies for decades. It was not until 2020, however, that we faced our first pandemic.

As severe restrictions on movement were introduced in many places to reduce the spread of coronavirus, we strained every sinew to step up our programmes. We were determined to remain by the side of vulnerable people as the Covid-19 crisis pushed so many of them further into poverty and suffering.

Islamic Relief adapted our operations to reduce the risk of transmitting the virus. But our dedicated aid workers continued working alongside communities to deliver lifesaving and life-changing projects to those in need. More than 2.3 million people in war-torn Yemen relied on our regular food aid, while a £30 million emergency programme helped 1.25 million people in Syria. We responded to scores of disasters, including earthquakes in Turkey, tropical storms in Bangladesh and the Philippines, explosions in Lebanon, and flooding in Afghanistan, Somalia and Sudan.

We also delivered transformative development projects such as one in Iraq that has helped Christian and Yazidi communities to rebuild livelihoods shattered by violence, and a major programme putting women and young people at the heart of local peacebuilding efforts in Pakistan, Kenya and the Philippines. Projects worth £27.5 million responded to the climate emergency in 19 countries, and we campaigned outspokenly for climate action and gender justice. Our orphan sponsorship programme supported a record 72,000 vulnerable children worldwide.

In addition our £15 million coronavirus response contributed to the fight against the virus in 26 countries, protecting millions of vulnerable people from its worst effects. Drawing on lessons learned from the Ebola outbreak, we worked with the World Health Organization and other international aid agencies to develop and share guidance on safe religious practice for Muslim communities. Recognising that no community was left unscathed, we also gave a helping hand to families in crisis in the UK, Ireland and Spain.

Meanwhile, we managed to cut costs through a comprehensive financial resilience plan and our incredible supporters continued to give generously, taking our income to an extraordinary £149 million. This included over £15 million raised in the UK during Ramadan alone.

Sadly 2020 was also the year in which ill health forced my predecessor as CEO, Naser Haghamed, to announce his resignation. His compassion, sincerity and tireless efforts have done much to ensure the charity’s continued growth. I am honoured to be entrusted with the challenge of building on his significant legacy and leading Islamic Relief into a new chapter. The path ahead includes developing a bold new global strategy to broaden and deepen our positive impact around the world.

As I introduce this report to you I am acutely aware that the Covid-19 crisis is not yet over, and nor is the suffering caused by crises that began long before the virus demanded the world’s attention. 2021 marks the tenth anniversary of conflict in Syria – ten desperate years in which countless lives have been lost and millions of people have struggled to survive and keep hope alive.

Waseem Ahmad

Chief Executive Officer, Islamic Relief Worldwide

It is estimated that this year around 13 million people could need humanitarian aid as continued conflict and Covid-19 overwhelm an already exhausted population.

The challenges may seem enormous, the barriers to positive change insurmountable, but 2020 – the year in which the word ‘unprecedented’ became a cliché through overuse – has shown us that it is always possible to do what has never been done before. The international community must act now to end the crisis in Syria, the war in Yemen, and every other humanitarian catastrophe seared onto the conscience of the world. It can always be done. At Islamic Relief we hold that hope in our hearts and in our prayers as we continue to do all we can to secure a safe and just world for all, insha’Allah.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

OUR VISION AND STRATEGY

Inspired by the Islamic faith and guided by our values, we envisage a caring world where communities are empowered, social obligations are fulfilled and people respond as one to the suffering of others.

We provide lasting routes out of poverty, empowering people to transform their lives and serving all communities without prejudice.

Our five-year strategy for 2017-2021 has four global goals that aim to ensure we respond effectively to humanitarian emergencies, contribute significantly to the UN Sustainable Development Goals and advocate for positive social change. These goals are based on four key areas of work we present in this report: humanitarian, development, advocacy and partnerships.

OUR GLOBAL GOALS

1 Reducing the humanitarian impact of conflicts and natural disasters

Empowering communities to emerge from poverty and vulnerability

Mobilising people and funds to support our work

Strengthening the Islamic Relief federation

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

Tannu lives in Hyderabad, India. Her husband began beating her on learning she was pregnant with their second daughter. The motherof-two escaped her abusive marriage but struggled to provide for her children. In 2020 she took a tailoring training course offered by Islamic Relief, which also gave her a new sewing machine. “I endured, thanks to the exposure and awareness I received at the training centre supported by Islamic Relief,” says Tannu. She now earns a reliable living as a seamstress and, after receiving advice on her rights, has secured financial support from her ex-husband.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

OUR GLOBAL REACH

In 2020 we supported over 13 million people

----- Start of picture text -----
United Kingdom
1,613
Kosova
34,767
Bosnia and Russian Federation
Herzegovina (Chechnya)
40,347 49,900
Macedonia
12,171
Spain
9,592 Albania
Greece 32,530 Turkey
200 87,636
Syria
Tunisia Lebanon 166,564 1,250,000
34,497
Occupied Afghanistan
Palestinian 484,777
Territory Jordan
506,468 98,941
Iraq
31,270
Mali
687,850 755,765Niger Chad Sudan Yemen
380 800,055
3,666,231
South Ethiopia
517,850
Sudan
284,279
Somalia
996,976
Number of people reached Central Kenya
African 158,550
through our projects in 2020
Republic
6,381
001 - 9999
Mozambique
10,000 - 49,999 Malawi 7,210
386,650
50,000 - 99,999
100,000 - 249,999
250,000 - 499,999
South
Africa
500,000 - 999,999 24,100
1,000,000 +
----- End of picture text -----

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

----- Start of picture text -----
Pakistan
962,259
Nepal
259,464
China
----- End of picture text -----

----- Start of picture text -----
Pakistan
962,259
Nepal
259,464
China
5,750
India
106,361
Bangladesh
Philippines
801,108
55,236
Myanmar
319,624
Sri Lanka
113,086
Indonesia
56,868
----- End of picture text -----

Number of people reached through global programmes**

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||| |---|---| |Emergency|7,297,571| |Development|2,432,524| |Seasonal|4,307,291| |Advocacy|30,000| |Orphan sponsorship|72,064| |Multiple|34,151| |(across several countries)|

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

** The figures in this table are included within the country figures on the map.

TOTAL: 13,847,457

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

371 emergency projects reached 7.2 million people in 30 countries

Water, sanitation and hygiene projects served over 692,000 people

£30 million invested in life-saving emergency programming in Syria 122 Covid-19 prevention and support projects assisted 1.5 million people Over 310,000 people across 15 countries received winter survival items

364 development projects reached 2.1 million people

Over 3.3 million people in 28 countries received qurbani meat

3.6 million people helped in war-torn Yemen, where Islamic Relief is the main implementing partner for the UN World Food Programme 934,000 individuals in 31 countries benefited from our Ramadan food packs Around 180,000 children and adults given access to education Over 735,000 people supported to earn an income 18 multi-year advocacy projects in operation

OUR INCOME IN 2020

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WHERE THE
MONEY CAME
FROM
----- End of picture text -----

----- Start of picture text -----
Five-year trend:
Our income 2016 -2020
----- End of picture text -----

----- Start of picture text -----
160
140
120
100
80
60
40
20
0
2016 2017 2018 2019 2020
Waqf investment income
Voluntary income from members of the
Islamic Relief federation
UK donations (including DEC and DFID/FCDO)
Trading (charity shops and clothes recyling)
Institutions (UN and others)
£Millions
----- End of picture text -----

Where the money came from	£’000	Percentage
Islamic Relief USA	38,148	26%
Voluntary income from the UK	36,314	24%
Islamic Relief Canada	19,913	13%
Institutions	12,472	8%
Islamic Relief Sweden	11,494	8%
Islamic Relief Germany	10,264	7%
International fundraising	5,048	3%
Islamic Relief Switzerland	3,601	2%
Trading	2,850	2%
Islamic Relief South Africa	2,727	2%
Islamic Relief Australia Islamic Relief Malaysia	1,353 1,171	1% 1%
Disasters Emergency Committee (DEC)	1,030	1%
Islamic Relief Mauritius Waqf investment income	998 511	1% <1%
Islamic Relief Ireland Islamic Relief Bosnia and Herzegovina	365 292	<1% <1%
Islamic Relief Spain	207	<1%
Islamic Relief Italy	193	<1%
Islamic Relief Norway	38	<1%
Total	148,990	100%

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

OUR EXPENDITURE IN 2020

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WHE RE THE
MON EY WAS
SPENT
----- End of picture text -----

----- Start of picture text -----
Five-year trend:
Our expenditure 2016-2020
140
120
100
80
60
40
20
0
2016 2017 2018 2019 2020
Charitable expenditure
Other expenditure
(includes fundraising and trading)
£Millions
----- End of picture text -----

Where the money was spent	£m	Percentage
Protecting life and dignity	57.9	44.7%
Caring for orphans and children in need	27.0	20.8%
Providing access to health and water	13.6	10.5%
Sustainable livelihoods	8.6	6.7%
Publicity and raising funds	8.5	6.5%
Support costs	5.1	3.9%
Supporting education	3.8	3.0%
Trading activities	2.5	1.9%
Campaigning for change	1.5	1.2%
Legal and statutory compliance (governance)	0.6	0.5%
Investment management	0.4	0.3%
Total	129.5	100.0%

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

HUMANITARIAN

In a year of significant pandemic challenges we were a lifeline to people in crisis

Islamic Relief delivered over 370 emergency projects in 30 countries in a year that was defined by the Covid-19 pandemic in so many ways.

Rapidly adapting our operations, we continued to assist families suffering amid conflict and natural disasters and helped protect millions of people in 20 countries from the devastating consequences of coronavirus.

Islamic Relief also built community resilience, helping over 127,000 individuals to better protect themselves when disaster strikes.

371 humanitarian interventions reached 7.2 million people in 30 countries

£15 million Covid-19 response helped around 1.5 million individuals in 26 countries

Over 1.25 million people assisted by emergency projects in Syria More than 2.3 million people relied on monthly food aid in Yemen Over 3.3 million people in 28 countries benefited from qurbani meat

Humanitarian relief in 2020

JANUARY

As conflict spikes in northern Mali, Islamic Relief reaches over 1,100 fleeing families with emergency shelter and two weeks’ worth of food. In Jakarta, Indonesia, people use the tarpaulin we provide to patch up homes damaged by fierce floods and landslides. Islamic Relief staff are also on the ground in 15 countries giving out desperately needed survival items such as blankets, food and fuel to help over 310,000 vulnerable people to survive the harsh winter weather.

This month we respond when a powerful earthquake and aftershocks strike Elazig in Turkey, and in October swing into action again when a quake devastates Izmir. Over 11,300 survivors of the quakes receive aid items such as blankets and facemasks or vouchers to buy food and other essentials.

DISASTER: Heavy rain, snowfall and avalanches pummel remote communities in Balochistan and AJK, Pakistan.

IMPACT: Over 100 people lose their lives, livestock die and food stocks spoil. Homes, and water and sanitation facilities lie in ruins.

RESPONSE: We clear snow, equip health camps with medical supplies, and provide food baskets, survival items and cash grants – assisting over 34,000 people.

Children with their family’s winter survival packs, distributed by Islamic Relief in Balochistan, Pakistan.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

FEBRUARY

A project assisting communities in Tonj East, South Sudan, devastated by flooding late in 2019, is nearing completion. Islamic Relief has been providing vulnerable people with food and vital items like mosquito nets and soap alongside livelihood support. In addition 7,500 people have access to clean water from the 15 water boreholes we have repaired. We have also installed latrines and handwashing facilities through the project, which – when it comes to completion in March – will also have provided food aid to over 7,700 vulnerable people.

To support the physical and mental health of women and girls affected by flooding in Tonj East, South Sudan, we give them dignity kits containing sanitary products.

DISASTER: As the humanitarian situation in northwest Syria rapidly deteriorates, in just one week three hospitals supported by Islamic Relief are attacked.

IMPACT: So far this year more than 900,000 people, mostly women and children, have fled in the biggest wave of displacement since the Syrian crisis began in 2011. Around 400,000 people have been killed and 11 million people have fled their homes, many repeatedly. The economy is collapsing, abject poverty and malnutrition are rife, and Covid-19 will shortly threaten to overwhelm an already struggling healthcare system.

RESPONSE: This year Islamic Relief invests £30 million in emergency programming in Syria, reaching around 1.25 million people. Our food parcels are a lifeline for over 770,000 internally displaced people, while around 1.2 million individuals benefit from healthcare support. Personal protection equipment, sterilisation solutions and other medical equipment enable 84 health facilities to deliver life-saving and life-changing treatment throughout the coronavirus pandemic. In addition, emergency programming worth around £42 million provides a safety net for nearly 207,000 Syrian refugees facing dire poverty in neighbouring Iraq, Jordan and Lebanon.

“We live in very difficult conditions,” says Magda, 40, speaking from a camp for widowed women in northwest Syria. She and her four young children are among over 22,000 people relying on the food supplies we distribute in the crisis-stricken country this year. “Thank you very much for your efforts to relieve our suffering. I hope this crisis ends and we return to our villages and live in peace.”

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

MARCH

LIFE-SAVING AID THROUGHOUT THE PANDEMIC

The World Health Organization declares a pandemic as coronavirus continues to spread across the globe. We launch a £15 million response programme, which assists 1.5 million people in 26 countries by the end of the year.

Promoting good practices and information

Islamic Relief makes sure vulnerable people have basic items such as soap and facemasks to help protect themselves from the virus. We develop and promote guidance on safe religious practice, including burials and prayer. We take to the radio airwaves and use print, social media and sermons to raise awareness and tackle misinformation among at-risk communities.

A mother collects cleaning products, facemasks and water containers distributed by Islamic Relief in Daynile camp near Mogadishu. Our Covid-19 response in Somalia gives over 63,000 vulnerable people access to healthcare services and medicines, hygiene kits and handwashing facilities.

In Herat, Afghanistan, we distribute vital public health information to reduce coronavirus transmission. Understanding that gender-based violence and child protection incidents are rising amid the pandemic, we provide counselling and dignity kits to vulnerable women and give children some respite through recreation packs. Also working in Nangarhar, Kabul, and Kandahar, by the end of the year we reach over 81,000 people in the country.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

Supporting and strengthening healthcare systems

Coordinating with disaster and health authorities, we support health facilities with training, personal protection equipment, and medical equipment such as ventilators. Islamic Relief disinfects public places, checks the temperatures of people crossing country borders, and adapts its programming to align with national Covid responses.

In Yemen we equip our staff with personal protection equipment, ensure rigorous social distancing, and adapt all our food distribution sites to provide awareness messages and hand sanitation points. We also support quarantine centres by distributing hygiene items and ready-to-eat meals, and strengthen health facilities and isolation centres by providing medicine, training and monthly incentives to health workers.

Meanwhile our health interventions in Syria pivot to give medics and aid workers vital safety items like masks and gloves, and provide hospitals with life-saving equipment such as ventilators and oxygen nebulizers.

Staff at Medenine Hospital take receipt of equipment for intensive care units, and machines to help provide care to patients who are critically ill with Covid-19. The hospital is among 11 supported by Islamic Relief during the first wave of the virus in Tunisia.

Responding to longer-term and secondary impacts

Recognising that Covid-19 is more than a health crisis, we help some of the world’s most vulnerable people cope with its devastating effects. We provide emergency food security interventions and cash transfers, and continue transformative work to improve access to education, livelihoods, and to provide a safety net to families in crisis.

An Islamic Relief aid worker prepares food vouchers which are a lifeline for thousands of people unable to earn a living amid restrictions to curb the spread of the deadly virus in Gaza. Islamic Relief food packs and hygiene kits reach around 37,500 people in the enclave, and we also give vital equipment to hospitals, health centres and quarantine centres, and disinfect public spaces.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

APRIL

As the holy month begins, Islamic Relief is distributing Ramadan food parcels in 31 countries. The pandemic has made coordinating the annual programme more complicated than usual, but we are determined that hungry families will still receive the food they need.

Adapting to local social distancing rules and restrictions on movement, we avoid crowds at our collection

points and safely hand-deliver parcels to people at home where necessary. In some places we work with national postal services to deliver food parcels to households, or give vouchers to families so they can collect their own food from designated suppliers.

Working closely with local communities, we ensure the food reaches those most in need without discriminating in any way. This year

we reach over 934,000 vulnerable individuals, many of whom are also benefiting from other Islamic Relief humanitarian and development interventions.

In Juba, South Sudan, mother-of-five Susan and her young son take their family’s Ramadan food pack home. Filled with wholesome food staples, the parcel is one of nearly 165,000 distributed by Islamic Relief around the world this year.

“In the slums, Covid-19 has made life harder. There is no work,” says Zuleka, 33. She and her three children live with her aunt and uncle on the outskirts of Nairobi, Kenya. They are among nearly 19,000 vulnerable people in Kenya to benefit from a Ramadan food parcel this year. “Alhamdulillah! The food pack gave us great relief. The family was assured of an iftar meal for at least two weeks.”

Children with items from their family’s Ramadan food parcel, one of over 2,500 distributed in Sri Lanka this year.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

MAY

Cyclone Amphan leaves a trail of destruction as it barrels across parts of Bangladesh. Fears of coronavirus hamper evacuation efforts but our trained volunteers help people get to safety and support rescue efforts. In the aftermath, Islamic Relief provides cash support, food, hygiene kits and support with Covid-19 safety. We also renovate dozens of contaminated water sources, reaching over 43,000 people in two districts.

One of over a million people in Bangladesh affected by Cyclone Amphan, a woman crouches outside her ruined home.

DISASTER: Heavy rains continue to fuel widespread flooding in Kenya.

IMPACT: The Kenyan government announces that nearly one million people are affected by the disaster, which has so far taken 285 lives and shattered livelihoods. In Garissa, some 7,000 people are in urgent need of aid.

RESPONSE: We provide families with unconditional cash support worth 6,000 Kenyan shillings (around £48) each, while 400 families receive hygiene supplies and other survival items, and 250 households receive energy-saving stoves, known as jikos.

“My farm’s produce was destroyed by the floods. We cannot pay for school fees or medicine for the children,” says Abdullahi, who has been farming in Garissa, Kenya, for over 30 years. He and his family receive hygiene and survival items as well as cash support from Islamic Relief.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

JUNE

At a United Nations pledging event, we warn that six years of conflict have brought Yemen to the brink of famine. This year over 2.3 million people rely on the monthly food parcels or vouchers we distribute in partnership with the UN’s World Food Programme (WFP). Up until March, we distributed them every month but in April this was reduced to every two months following cuts to the funding of WFP from donor governments. Islamic Relief implements extensive humanitarian programming in the country but much more is needed. This year we commit an additional £7.7 million in emergency funds but the humanitarian response to the crisis remains critically underfunded by the international community.

A boy collects a WFP food parcel distributed by Islamic Relief in war-torn Yemen, where more than 20 million people rely on food aid to survive.

DISASTER: Covid-19 is already ravaging Bangladesh when the monsoon season begins, triggering unusually intense flooding.

IMPACT: By July a third of the country is under water. An estimated 1.5 million people are affected, with homes, vital infrastructure and farmland ruined.

RESPONSE: An early warning system we developed in collaboration with other humanitarian organisations helps 200,000 people to protect themselves from floods. In the wake of the disaster we distribute food, temporary shelter, and hygiene kits. We also continue supporting communities facing coronavirus. Promoting good hygiene, installing latrines and wells, and giving cash grants to those who’ve lost their livelihoods, we help around 55,000 people.

Our cash grants are a lifeline to families that lose their livelihoods to floodwaters in Bangladesh.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

JULY

As Muslims around the world mark Eid al-Adha, we deliver our biggest ever qurbani programme. Our donors have once more given generously and we have adapted our operations to safely distribute qurbani meat in 28 countries. Altogether, over 3.3 million vulnerable people benefit.

A family receive their 5 kg parcel of qurbani meat, one of over 48,000 households to benefit from our qurbani distributions in Malawi this year.

DISASTER: The humanitarian crisis in Somalia is worsening as its people face the devastating impact of Covid-19, flash floods and locust infestations.

IMPACT: Some 3.2 million people need humanitarian assistance. Displaced women and children, who are particularly affected by movement restrictions to slow the spread of the virus, are particularly vulnerable. Safe water and sanitation, healthcare and support to help combat Covid-19 are desperately needed.

RESPONSE: With the support of the Disasters Emergency Committee (DEC), we launch a major response to tackle coronavirus transmission. We provide free healthcare and train health workers in managing Covid-19. We install handwashing stations and distribute facemasks, hand sanitiser and hygiene kits in camps for internally displaced people. Our cash transfers enable people to buy essential items. Health workers, volunteers, and faith and community leaders use our training to promote good hygiene practices to reduce the spread of the virus.

“The Islamic Relief team provide medical consultations and medicine free of charge,” says Mustaph, 50, who lives with his wife and 11 children in Daynile camp, Mogadishu, Somalia. “They have given us free masks and awareness sessions on Covid-19, showing how to practise social distancing.”

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

AUGUST

“Our animals were stolen, some people were tortured, others kidnapped,” says Najirwa, who fled Inadiatafane Commune in Mali when conflict escalated in May. Like hundreds of others she is seeking safety in Inazane village but food and shelter are in desperately short supply. “Islamic Relief is the first charity to have come to us,” adds the 60-year-old. Najirwa receives soap and facemasks as well as tarpaulin and wood to make a makeshift shelter. She also learns how to reduce the risk of contracting coronavirus. When our emergency intervention ends this month, we will have reached over 230 families.

DISASTER: Lebanon is going through unprecedented difficulties, with the Covid-19 pandemic adding to the strain of a severe economic crisis and failing political system. This month sees an explosion in Beirut destroying the country’s seaport.

IMPACT: Hundreds lose their lives and thousands are badly injured in the blast, which also destroys 300,000 homes. Forty per cent of people in Lebanon live below the poverty line, with migrants and refugees among the poorest. Now they are pushed even closer to the edge of survival as the price of food and other essentials shoots up in the wake of the disaster.

RESPONSE: Within hours of the explosion, Islamic Relief is removing rubble and distributing food in overflowing hospitals. In the months ahead our food parcels reach over 23,000 people, and thousands of families receive hygiene items and personal protection equipment to reduce coronavirus transmission. In 2020 we also repair houses and schools, support 16 health facilities in Beirut, and help local people rebuild their livelihoods.

Our orphan sponsorship programme is a lifeline for Jihan, a Syrian widow living in Lebanon with her five children. With food prices shooting up after the Beirut blast, the 43-year-old was among over 9,200 people to benefit from food and hygiene packs provided by our International Waqf Fund.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

SEPTEMBER

In Niger a community activist shares Covid-19 prevention messages provided by Islamic Relief. Our response to flooding in the Tillabery region also raises awareness of good hygiene and nutrition practices, genderbased violence, child protection and climate change. In the aftermath of the floods, which destroyed homes, crops and stores of food, over 1,500 families rely on our food vouchers and survival items like soap and blankets.

Fires at Moria Reception and Identification Centre leave thousands without shelter.

DISASTER: Coming after months of coronavirus quarantine, a spate of fires in Europe’s largest refugee camp force 10,000 people to sleep out in the open in Lesvos, Greece.

IMPACT: Over 12,500 people, including many children, are being held in squalid conditions at the severely overcrowded Moria Reception and Identification Centre. “We barely had access to a razor, soap, or even a shower. We were only allowed out of our cell for an hour per day,” says Basel*, 45, who is from Afghanistan. Detained in Moria for seven months, he is desperately missing his wife and children who are in mainland Greece. In the wake of the fires, he spends several nights sleeping on the streets until residents are moved to a new site at Kara Tepe. The further trauma ignites a mental health crisis among residents.

RESPONSE: We provide Jewish nonprofit HIAS Europe with six months of funding to increase psychosocial services for residents, including mental health first aid. Refugees also receive support to access vital legal and social support. Among them is Basel, who receives legal support which, by the end of the year, enables him to return to his family in Athens.

*Name changed to protect identity.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

OCTOBER

“Our house was the first to collapse,” says Tahani (left), describing in sign language the August night floodwaters submerged Wad Ramli village, Sudan. “We left everything behind, we had to walk a long way in the dark until we were rescued. It was like doomsday. We lived our whole life in that house and now it is gone.” The 42-year-old and her sisters are now living in a camp on the outskirts of Khartoum. “We don’t have anywhere to go, we are emotionally drained and sad and anxious.” Together with over 800 other families, they receive hygiene kits and information about good hygiene. Our emergency intervention also distributes mosquito nets, blankets and water chlorination tablets – reaching over 5,100 people in total.

We also launch an emergency response in Karachi, Pakistan, where monsoon floods have destroyed homes, livelihoods and vital infrastructure. Through the intervention, due for completion in early 2021, we aim to assist over 7,600 people through cash grants, water filtration plants, and a campaign to eradicate disease-spreading mosquitos.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

NOVEMBER

In Afgoye, Somalia, a man collects survival items distributed by Islamic Relief through our response to widespread flooding brought on by this year’s heavy Deyhr, seasonal rains. We also provide cash support and safe drinking water in an emergency project that assists over 13,000 people.

At least 1.6 million people are affected as super typhoon Goni pummels the Philippines with gusts of up to 190 miles per hour. Flooding and mudslides prove fatal for some and destroy thousands of homes. Islamic Relief responds with food packs and hygiene kits for over 900 affected families in 13 villages.

DISASTER: Thousands of people flee their homes as fighting intensifies in Ethiopia’s autonomous Tigray region.

IMPACT: Many families cross the border into Sudan, where they face dire conditions in camps with inadequate food, water, shelter and sanitation provision. By the end of the year, tens of thousands of refugees are seeking safety across the border.

RESPONSE: Islamic Relief teams race into action, reaching over 3,000 families with emergency aid including food packs and hygiene kits.

In Sudan’s Um-Rakoba camp, Islamic Relief aid workers hand food supplies to a refugee family from Tigray, Ethiopia.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

DECEMBER

In Charikar, Afghanistan, 45-year-old Noor and his daughter stand amid the rubble of their home, which was destroyed by summer flash floods. They are among more than 10,400 people assisted with food parcels and survival items distributed by Islamic Relief as part of an emergency response which ends this month.

In Myanmar’s Rakhine state, many people forced from their homes face dire conditions in overcrowded camps, where makeshift shelters offer little

protection. But new shelters built by Islamic Relief in camps and villages are now giving over 650 families safe and dignified accommodation. Our emergency response includes constructing new washrooms and giving food packs to over 25,500 families in camps and villages, as well as providing cash grants to 1,000 households and mobile health clinic services to over 3,300 people.

An extensive disaster resilience programme is nearly complete in

Sigi, Indonesia, an area devastated two years ago by earthquakes and a tsunami. Islamic Relief is supporting communities in building shockresistant infrastructure such as schools and providing training to better protect themselves from future disasters. We are also working with the government to develop better disaster management and recovery systems through the programme, which we are now expanding to cover Palu city.

In Nga Pon Chay village, children collect water from one of scores of wells built by Islamic Relief in Rakhine state, Myanmar.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - HUMANITARIAN

DEVELOPMENT

We supported communities to emerge from poverty and vulnerability

This year we provided access to healthcare, education, water and sanitation, and created livelihood opportunities by working with communities in 33 countries, benefiting over 1.6 million people.

Our development programmes are not just about providing access to essential services – they also address the multiple challenges communities face and empower them to lift themselves out of poverty.

364 development projects supported our work towards the UN Sustainable Development Goals, reaching 2.1 million people

Over 735,000 people supported to earn an income

Water, sanitation and hygiene projects served over 692,000 people

£55 million spent on development programming

Around 180,000 children and adults given access to education

105,000 people have accessed over £60 million worth of loans since our Islamic microfinance programme began in 1994

RESTORING LIVELIHOODS LOST TO CRISIS IN SYRIA

Previously living in dire poverty, Abu Ziyad can now provide for his grandchildren.

“I fled my house because of bombing in my village in which I lost my son. I am now caring for my orphaned grandchildren. We lived through extremely difficult days,” says Abu Ziyad, who was first uprooted by the crisis in Syria several years ago. He has since been displaced four more times, leaving him struggling to earn a living. Years of crisis have devastated livelihoods, while spiralling food costs leave more people unsure where their next meal is coming from.

“Islamic Relief provided us with ewes. We milk the ewes and make cheese

SUPPORTING YAZIDI AND CHRISTIAN COMMUNITY RESILIENCE

Participants in small business training provided by Islamic Relief in Hamadaniya and Sinjar, Iraq.

“Before Islamic Relief intervened, we were in a dire need,” says 20-year-old Nasra from Sinjar, in Ninewa, Iraq. “I’m the sole breadwinner and responsible for taking care of my whole family, including my disabled mother and brother. Our home was destroyed by an armed group in 2015 and we were forced to leave Sinjar.”

Islamic Relief has been supporting

emergency response in Syria, which reached millions of people this year.

and milk, and sell the produce,” explains Abu Ziyad, who currently lives with his family in Maarat Misri. They are among nearly 3,000 families in northern Syria we have helped to earn a reliable living again.

“We now have a significant income, and I can afford to feed the family,” Abu Ziyad says. “Before, we could only afford to drink milk once a week. Now, thanks to God, my grandchildren drink milk every morning. This also helps me and my family to earn a living without mixing with others, reducing the risk of contracting the virus.”

We gave them livestock and agricultural support, including animal fodder and vaccines, seeds and fertilisers. They also received training in farming techniques and advice on marketing and selling their produce, This was delivered as part of our

vulnerable communities uprooted “The training offered by Islamic by violence in Iraq. Working Relief was very beneficial, as closely with Yazidi and Christian it improved my knowledge and communities in Sinjar and experience of raising livestock and Hamadaniya, we provided training earning a profit. Most importantly, and agricultural equipment to I now have a source of income support 250 families to build raising sheep and I am able to reliable livelihoods. support my family,” Nasra explains.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

PEACEBUILDING WITH COMMUNITIES

This year we continued delivering a major programme to prevent conflict and build peace in Pakistan, Kenya and the Philippines. To minimise the disruption to face-toface peacebuilding work caused by Covid-19, we scaled up our community radio programmes and engaged women and youth participants by mobile phone. This helped us to address rising tensions quickly and maintain the peace gains of the programme.

Funded by the Swedish Government’s International Development Cooperation Agency (SIDA), this project engages local communities in fragile places to help them build social cohesion, manage the impact of disasters and build sustainable livelihoods and partnerships for development with local government. Misinformation about coronavirus fuelled rising tensions this year, so we worked with communities to debunk the myths and help people better protect themselves and others from the virus.

We centre the programme on improving the participation of women and young people in local dispute resolution, conflict prevention and peacebuilding processes because they are often the most excluded. Their economic and social marginalisation can end up fuelling conflict, but our holistic approach helps women and youth build sustainable livelihoods that generate a good income.

The Triple Nexus approach at the heart of the programme:

Enhance community conflict prevention and peacebuilding processes
Help communities to prepare for disasters and manage their response when they occur, to prevent conflict arising in the aftermath
Build viable livelihoods for the most economically vulnerable to reduce the impact of conflict and prevent further participation in conflict.

To share best practice, we developed a simple, free practitioner’s guide outlining our holistic approach to sustainable and inclusive peacebuilding.

Footage from our

peacebuilding programme was used in a documentary which we premiered at this year’s Geneva Peace Week in collaboration with Imam Ali’s Popular Students Relief Society, GWED-G and Diakonia. We also shared best practice from the programme at USAID’s Center for Faith and Opportunity Initiatives (CFOI) summit, in which we highlighted our work engaging faith leaders in Kenya in peacebuilding.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

YOUTH AND WOMEN’S GROUPS IN PAKISTAN

THE CHALLENGE: Temporarily displaced people in Pakistan’s tribal areas have returned home to rebuild their lives, but their way of life has changed forever with the merger of the tribal districts into neighbouring provinces. Disputes were traditionally settled by a small group of older men in a Jirga, which sometimes resulted in biased, unpopular decisions, but people now have access to the formal justice system and other government services.

OUR APPROACH: Islamic Relief set up community organisations, women’s organisations and youth groups to help communities in the newly merged districts collectively prioritise their development needs, discuss disputes and liaise with local government. Their collective voice directly influences local government and law enforcement agencies. We trained 12 youth groups – made up of 180 young men and women – on a range of social cohesion and dispute resolution topics, and provided extensive support.

PEACE COUNCILS IN KENYA

THE CHALLENGE: In Mandera county, Kenya, key drivers of conflict include competition over limited natural resources such as water and pasture – which are becoming more scarce as a result of the changing climate – as well as boundary disputes and elections. People in the area face the threat of attack by armed groups based in neighbouring Somalia, and most belong to one of a number of clans, between which violent disputes over natural resources are increasingly common.

OUR APPROACH: Islamic Relief worked with local government and the clan system to build better relationships between law enforcement agencies, clan elders and young people. Together, we have set up 45 women and youth

PROGRESS ACHIEVED: “The

In a newly merged district of Pakistan, mediation by young people from Akakhel tribe ended a violent feud. The 18-30 year olds are part of a youth group formed by the Islamic Relief project.

resolution of disputes used to take years and in that time a lot of damage was done,” says a member of the youth group, explaining that they quickly became very active and efficient mediators of local disputes. “It is a great success for us which will further pave the way for our acceptance in decision-making processes.”

PROGRESS ACHIEVED: The work

peace councils across all seven subcounties. Islamic Relief trained all 678 members in dispute resolution and conflict prevention. We also set up a network of peers across different clans, who use WhatsApp to communicate incidents quickly before they escalate.

of Mandera’s youth peace councils has significantly reduced inter-clan conflict in previous conflict hotspots. Their efforts have also successfully reduced human rights abuses against young Kenyan Somali men by law enforcement officers and improved relations between law enforcement agencies and young people.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

“I HAVE A ROLE IN BUILDING PEACE”

“We did not know what peace is,” says Munisa, 21, who lives in the Bangsamoro Autonomous Region of Muslim Mindanao, the Philippines. “I felt hopeless and saw no future for me.”

The region had experienced decades of conflict as armed groups clashed with government forces. In 2020, Munisa joined the Islamic Relief programme, which supports young people to get involved in the push for peace following the Bangsamoro peace agreement. She joined 50 other young people at peace camp, learning to strengthen social cohesion in their communities and tackle the drivers of conflict. Many more young people took part in community-based sessions.

“It rekindled my spirit. I thought Allah may have a plan for me. Perhaps I have a role to play in the building of

----- Start of picture text -----
Munisa and other young people received
training on dialogue, negotiation, mediation
skills and advocating for peace.
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peace,” adds Munisa, who became one of 30 youth peace advocates building bridges between communities in three districts.

share only correct information. We use social media and text messages to minimise the fear of our relatives and friends and guide them.”

“We help verify information every time there is a rumour about conflicts and the security situation, and we

Prior to Covid-19 social distancing restrictions, young people at peace camp create peace messages to help resolve conflict, build trust among people of different faiths and address stigmatising narratives.

STRENGTHENING COMMUNITIES AGAINST COVID IMPACTS

We understood from the outset that the coronavirus pandemic would deepen the poverty and suffering experienced by vulnerable communities. Launching our SocioEconomic Recovery Framework, we shone a spotlight onto ways in which to boost their socio-economic resilience through the crisis and beyond. The interventions we delivered this year included installing food banks so farmers in Mali could bring in harvests when lockdowns lifted – improving their access to food and livelihoods. Meanwhile, we helped poor entrepreneurs in Pakistan to continue earning a living from small businesses such as roadside stalls, tailoring and market gardening by giving them grants or cancelling their debt.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

lessons out in the open, with a thatch roof offering scant protection.

PROVIDING SAFE, HIGHQUALITY EDUCATION IN MALI

Islamic Relief then built a new school and playground in Siramana village, which made learning much easier and safer. “Now the teachers can easily teach, with the right equipment, and all children have a place to sit,” says the deputy headteacher, Sayon

“When there was a snake, we were afraid and ran away from school. Sometimes, the roof even fell down,” says 12-year-old Mamadou from the Circle of Kati, Mali. Just over a year ago, students in his village had to take

Konaté, explaining that the quality of education has improved thanks to the teacher training Islamic Relief also provided.

“Now with the new school we are so happy. We can stay and study. It makes me happy. When I grow up I would like to be a police officer to catch thieves,” adds Mamadou. He is one of 500 children benefiting from an extensive Islamic Relief covering six villages. As well as constructing three schools, we helped widowed women and vulnerable young people earn a reliable living. Through the project, which also gave communities child friendly spaces and a dedicated maternity centre, we are helping transform outcomes for nearly 3,900 vulnerable people.

Mamadou is attending lessons in one of three new schools built by Islamic Relief in Circle of Kati, Mali.

IMPROVING HEALTH AND WELLBEING IN GAZA

Children with physical or mental health issues often struggle to get the support they need in povertystricken Gaza, with its overstretched health and education systems. Islamic Relief is helping to change that with a project which diagnoses health issues in children and provides life-changing treatment and rehabilitation services.

“Janaa’s health increased our household difficulties and also affected our movements and economic situation. I was always afraid that she might hurt herself,” says her mother, describing the impact of Janaa’s curved spine and inability to walk. Islamic Relief provided Janaa with a stand which is helping with her spine. “The stand helps her to stand up and to fix her back and her body… I feel that

she is now able to stand steadily.” A doctor examines a child as part of The project has now helped over an Islamic Relief health project that 30,000 children like Janaa to thrive has reached 30,000 children in Gaza. in school and at home, as well as improving their self-esteem and psychological wellbeing.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

BOOSTING FOOD SECURITY IN SOUTH SUDAN

Akon grows vegetables using the drip irrigation system repaired by Islamic Relief in Warrap, South Sudan.

Akon has been cultivating her own vegetables since receiving seeds and training from Islamic Relief. “This variety of vegetables will certainly improve the health and diet of my family,” says the motherof-nine, who now grows food throughout the year.

Her family are among 2,000 helped by an Islamic Relief food security project in Warrap, South Sudan. The

TREATING MALNOURISHED CHILDREN IN NIGER

Hashiru was just ten months old when his village health centre referred him to Islamic Relief’s intensive nutrition recovery centre at Baleyara District Hospital in Tillabery, Niger. Diagnosed with malnutrition, he was struggling to regain his health despite receiving nutritional supplements.

“I was told my son was not improving and had to be transferred to the [district] hospital,” says his mother, Hawa. UNICEF estimates that 15 per cent of children in Niger are acutely malnourished, and the west African country has one of the highest child mortality rates on the planet.

Malnourished children in Baleyara needing specialist care could only access treatment in the capital city, one hour’s drive away. But now Islamic Relief’s ambulance takes children like Hashiru for treatment much closer to home, at our nutrition centre.

“My son is better now,” says his mother, after spending five days

scheme repaired a drip irrigation system, which now produces thousands of litres of water per hour for vegetable plots. Now able to sell surplus vegetables, families like Akon’s have increased their

income. In addition they are less at risk from intercommunal violence, since the project has eased tensions between communities in the area.

Hashiru with his mother, Hawa, at Islamic Relief’s intensive nutrition recovery centre in Baleyara, Niger.

at the life-saving centre with the infant. Training parents like Hawa to recognise and prevent malnutrition and practise good hygiene has also been a critical component in improving outcomes for children.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

POWERING WOMEN’S SELF RELIANCE IN BANGLADESH

Climate change is causing natural disasters to become increasingly intense and frequent, with often devastating effects on the world’s poorest people. Among them is Geeta, who lives in Satkira, Bangladesh, an area prone to disasters such as drought, flooding, and tropical storms. As an older woman and a widow, she faced barriers to earning a living and was already struggling to make ends meet when Cyclone Bulbul damaged her home in 2019.

This year Geeta took part in a cashfor-work opportunity offered through an Islamic Relief recovery programme serving 200,000 families affected by the cyclone. The mother-of-four used the BDT 4,800 (around £44) she earned to buy a goat, and Islamic Relief gave her some vegetable seeds.

Now enterprising Geeta has three goats, two ducks, some chickens and a vegetable plot. She earns a reliable living selling surplus vegetables, milk and eggs and is proud to be supporting herself.

In disaster-prone Satkira, Bangladesh, Geeta is now earning a reliable living.

TRANSFORMING FUTURES IN MALAWI

Jane and her four children live in Chikwawa, Malawi, and have benefited from a transformative development programme implemented by Islamic Relief.

“With the training that Islamic Relief provided, I have gained knowledge and skills in crop management and can manage my crops for a

high yield. Agribusiness training has also helped to improve my skills in selling farm produce,” says Jane, who lives in Gangu village. Islamic Relief training showed her farming techniques to adapt to the changing climate, increase her yield, and protect the environment from further harm.

Working with communities facing recurring flooding and drought, Islamic Relief brought Jane and other local people together in

farmers’ groups. We provided sustainable irrigation systems, gave 400 families livestock and essential farming equipment, and ensured the local school had a supply of clean water.

“I do not know where my family would be without Islamic Relief. We now have enough to eat and our children to longer go to school with an empty stomach,” says Jane.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

SUPPORTING DROUGHTAFFECTED COMMUNITIES IN PAKISTAN

The world’s poorest communities are bearing the brunt of climate change. “We live in the suburbs of Quetta and our area has been facing a drought-like situation for many years. Children are malnourished due to a lack of clean drinking water and food. We can’t do much about it... we are a big family, and have been struggling,” says mother-of-three Bibi, describing how long spells of drought have affected her family’s agricultural livelihood.

An Islamic Relief project has helped communities cope with the worst effects of the changing climate. In Quetta and Chagai, we have built vital new water sources such as ponds, reservoirs and dams. Community members were also given drought-resilient seeds and

MICROFINANCING SUSTAINABLE DEVELOPMENT

Since 1994 we have provided Islamic microfinance to people who would otherwise be excluded from financial services. With our interestfree Shariah-compliant loans, entrepreneurs start up or expand small businesses – lifting themselves out of poverty. This year our active loan portfolio of £7 million helped over 16,000 people, taking the total social investment circulated since inception to over £60 million.

Following work supporting people living with disabilities, in 2020 our microfinance institution in the Chechen Republic won the Russian competition for the best sociallyoriented organisation for the fourth year running. Fund Barakat is the only Shariah-compliant microfinance institution in the Russian Federation.

To add much needed momentum to financial inclusion and economic

plants as well as training in the latest irrigation techniques. Bibi is now growing her own vegetables to eat and sell. “It’s a very nice feeling being able to provide for my family and feed my children amid this difficult situation... I now feel like I can support others thanks to the help of Islamic Relief,” she says.

The project has given nearly 35,500 drought-affected people reliable access to water. Farmers’ yields have increased, improving livelihoods and ensuring families know where their next meal is coming from.

Mother-of-three Bibi, who took part in a climate adaptation project in Quetta, Pakistan, waters her vegetables.

recovery efforts, especially in the light of Covid, this year we also entered into a strategic partnership with the SEEP Network. Through the Minimum Economic Recovery Standard, it supports strategies that promote economic inclusion, develop resilient markets, and

enhance the livelihood potential of the world’s poorest people by creating opportunities for vulnerable populations, especially women.

A women’s group in Bhola, Bangladesh, administer their savings and loan scheme.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - DEVELOPMENT

CAMPAIGNS

We mobilised people and funds to support our work and campaign for social justice

We rapidly adapted our fundraising strategies in light of the challenges of Covid-19, successfully pivoting to digital activities. Our donors around the world continued to give generously, and once again our income increased, reaching £149 million in another record-breaking year. Our Ramadan campaign in the UK alone raised £15 million.

Our campaigns pushed gender justice and the climate emergency to the fore, and shone a spotlight on the plight of young people in povertystricken Gaza and Nepal. Multi-year advocacy projects worth £6.4 million were in operation this year. And as the impacts of the pandemic deepened, we also offered a helping hand to families in crisis in the UK, Ireland and Spain.

Over £15 million raised in the UK during Ramadan

18 dedicated advocacy projects in operation

Events in 13 countries tackled gender-based violence

£27.5 million invested in projects responding to the climate emergency across 19 countries

16 DAYS OF ACTIVISM ON GENDER-BASED VIOLENCE

Public awareness forums in Somalia highlighted faith teachings against genderbased violence, and the use of sexual violence as a weapon of war.

Covid-19 meant many of the events to mark this year’s 16 Days of Activism against gender-based violence were held online, with attendance at ‘real world’ events limited to ensure social distancing. Thirteen countries hosted events such as rallies, workshops, plays and meetings with government officials. A Zoom drawing contest shone a spotlight on domestic violence in Bosnia and Herzegovina, while a girls’ basketball match engaged local authorities in promoting the rights of girls in Mali.

Preparations to launch the world’s first Islamic Gender Justice Declaration in 2021 continued. Running a stall at the Women of the World (WOW) festival, we introduced the ground-breaking initiative to hundreds of people. Islamic Relief campaigners also participated in Care International’s largest ever March for Women this year.

gendered analysis and response.

This year we completed a review of progress against the pledges made in our ambitious Gender Justice Policy, which focuses on embedding a gender focus throughout our programming. It found that nearly one-third of our programmes clearly target women and girls. Some directly contribute to meeting their practical needs and securing improvements in areas such as participation in decision-making, gender-based violence, and access to livelihoods and education. We put in place a plan to take forward the recommendations of the review, which include prioritising longer-term interventions and strategic approaches shown to be most effective in improving gender equality and the rights of women and girls, including intersectional

In addition we continued efforts to improve gender equality in the workplace, which also enables us to better represent and serve communities. A gender audit undertaken this year revealed encouraging progress, including feedback that the majority of women who work for Islamic Relief feel we enable them to juggle the demands of their professional and private lives. However, the audit revealed more is needed to improve the representation of women in leadership positions, and to continue raising gender awareness. In light of its recommendations we are reviewing our internal policies and systems, to move closer to fulfilling our commitment to gender equality.

“THERE IS HOPE FOR CHANGE”

“Girls in Somalia are like everyone else. They want to learn, have fun with their friends, and be happy,” says Mona*, a survivor of female genital mutilation / cutting (FGM/C) and sexual abuse. The bright 14-year-old now leads her school’s gender club, pointing out that, “there is hope for change and it starts with us. I take every opportunity to raise awareness.”

Name changed to protect her identity.

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“WE URGE WOMEN TO SEEK PROTECTION”

Rabi is an activist using the training she received from Islamic Relief to tackle gender-based violence in Baleyara, Niger. Incidents of early marriages are slowly decreasing, says the mother-of-13, describing a recent intervention when a girl was about to be married. “Another woman and I approached the family and stopped the wedding. The girl is still in school.” Her community also has a better understanding of domestic violence and the local support available for survivors. “We urge women to seek protection and report the case to police.”

“WE NEED SUPPORT AND OPPORTUNITIES”

This year we published ‘Dreams on Hold: The Plight of Palestinian Youth in Gaza’, a report informed by a research study we carried out with the Training and Management Institute (TAMI). It makes the case for increased support to help young people overcome the significant socioeconomic and mental health challenges they face in Gaza, where occupation and blockade are having devastating effects.

“Support and opportunities are all we need,” says Salman, 26. One of Gaza’s entrepreneurial youth, he has turned his embroidery hobby into a profitable small business and is calling for more backing to help young people fulfil their potential.

So far over 4,500 people in Rautahat have benefited from the innovative project, which was highlighted this year in research published by Islamic Relief. ‘Hidden in Plain Sight: a study of child labour and human trafficking in Rautahat, Nepal’ explores the complex factors underpinning trafficking and child labour and shares best practice from the project. *Name changed to protect his identity.

TACKLING EXPLOITATION

Sang*, 14, was working three jobs to help support his family before a project in Rautahat, Nepal, helped him change his life – and his future. Teaming up with local partner the Rural Development Centre, we identify children at risk of human trafficking and child labour and support them with education, protection and earning a living. Sang received skills training and is now on track to a life free from exploitation.

Kiran and her son, 14-year-old Sang, who was working three jobs to help support the family before Islamic Relief helped them to change their circumstances.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - CAMPAIGNS

Cameron, who fled conflict-torn Iraq, is currently living in a camp run by Islamic Relief in Bosnia.

A SAFETY NET FOR REFUGEES

“I fled Iraq because of the war. We no longer felt safe and life there is very difficult. I faced many dangers during the trip… harsh weather as well as long and difficult delays,” says Cameron, who was helped by one of our dedicated Islamic Relief projects serving displaced individuals.

and we have everything we need. We also receive training courses in the camp around Covid-19 and how to prevent it.”

As well as providing practical, lifesaving support to people uprooted from their homes, Islamic Relief makes sure decision-makers hear their voices in order to positively influence change.

“I now live in an Islamic Relief camp in Bosnia. The people here are good

INTERNATIONAL FUNDRAISING

In 2020, our international fundraising department secured 54 projects worth over £4.2 million. Investing in digital marketing – including Google and Facebook advertising and email marketing –generated in excess of £3.3 million in online donations. This amounted to around half of the incredible £6.2 million total income raised this year. In addition a live campaign on Al Jazeera Live TV increased the charity’s visibility.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - CAMPAIGNS

RESPONDING TO THE CLIMATE EMERGENCY

This year Islamic Relief continued to respond to the global climate emergency, spending £27.5 million on projects across 19 countries. We helped communities adapt to the effects of climate change and bring about long-term social resilience, making sure that the needs of the most vulnerable were considered. In disaster-prone communities we provided essential training and helped local people prepare for, and cope with, disasters. We also worked with local and national governments to implement disaster risk strategies.

Islamic Relief campaigned against the causes of climate change, supporting international efforts to eliminate greenhouse gas emissions. We conducted research on environmental policy and legislation, which contributed to technical consideration of adaptation by the UN and the Intergovernmental Panel on Climate Change (IPCC). We also threw our weight behind campaigns for urgent action to support vulnerable communities by joining 86 organisations in endorsing the Call for Action on Adaptation and Resilience.

In Moyale, Kenya, new beekeeper Amina enjoys the first taste of honey harvested from her hives. Many people in her area had made charcoal to earn a living – a practice that is particularly harmful to the environment. She is among 21 members of local bee keeping groups who have increased their income through a project helping pastoral communities adapt to climate change and conserve the environment. After receiving training and equipment including bee hives, Amina’s group harvested over 120kg of pure honey. Sold at local markets, the honey fetched around 72,000 Kenyan shillings (about £478), whilst the enterprise supports bee populations that are vital for pollinating crops, pasture and trees.

LIFTING SPIRITS AMID THE PANDEMIC

The Covid-19 pandemic has had devastating effects across the globe, with many struggling with their mental and physical health and facing financial hardship. Islamic Relief has been doing all we can to support vulnerable people. In Ireland, for example, our dedicated

volunteers teamed up to deliver the ‘Even a Smile’ toy campaign in partnership with Dublin’s Crumlin Children’s hospital. They collected over 500 toys, giving them to children in hospital to help bring some joy during difficult times.

Volunteers bring Islamic Relief food parcels to one of our distribution points, Al-Fath mosque in Leganés, Madrid.

“This aid has a huge impact. Thank you all very much,” says Ahmad, who lives in Spain with his family. Coronavirus cost the father-of-two his job, leaving the household without an income – so the food parcel Islamic Relief provided was a lifeline. He was among 10,000 Islamic Relief donors in Spain to receive food support after losing their livelihoods to the virus.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - CAMPAIGNS

FUNDRAISING AND ACTIVITIES IN THE UK

This year Islamic Relief UK went through an organisational review to ensure our structure was fit for purpose for the priorities set by our new UK director, Tufail Hussain. We affirmed that our primary purpose is to raise funds for international work; to support projects in the UK; and to carry out advocacy on a range of issues, including climate change and gender justice.

Our Ramadan campaign raised a record-breaking £15 million, thanks to the support of generous individuals, organisations and partnerships. The My Ten Nights partnership raised a staggering £1.5 million and the Indian Muslim Welfare Society – a coalition of mosques – raised £60,000 for our work in Myanmar, Yemen and Syria. Over 700 people set up fundraising pages through our Ramadan peer-topeer fundraising campaign, raising around £500,000.

Islamic Relief staff and volunteers

at Care International UK’s March for Women, held before Covid-19 social distancing restrictions were introduced in the UK.

WE WENT DIGITAL IN 2020

As mosques were closed during Ramadan, we created an online space where Muslims could access live Jummah reminders and Qur’an classes – the Virtual Mosque. We also shared content around protecting mental health, children’s activity kits, local prayer timetables and Ramadan timetables.

For Dhul Hijjah, we held joint

Facebook Live events with six other members of the Islamic Relief global federation to engage a global audience. Our partnerships with social media influencers and digital publishers helped us raise the outstanding sum of £600,000.

Charity Week also became virtual this year due to Covid-19. Volunteers raised £878,000 through virtual auctions and the 2020 Challenge where supporters could do any

activity incorporating the number 20. One volunteer, Rehaan Aatif, climbed a hill 20 times a day for 20 consecutive days at Dundonald Castle in Scotland.

Our digital innovation culminated in two awards this year: a Special Commendation in Third Sector’s Digital Innovation Award category for our mobile videogame, Virtue Reality, and Best Use of Search in the Third Sector in the UK Search Awards.

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STRONG RELATIONSHIPS FOR TRANSFORMATIVE PROJECTS

Our partnership with Green Lane Mosque in Birmingham helped us raise over £2 million for projects in Yemen, Syria, Lebanon, Pakistan, Myanmar, Palestine, Somalia and Bangladesh. Muslim Community Events, a national grassroots group of volunteers sponsored by local businesses, raised over £33,000 for Yemen through online sales of meals in Bolton, Blackburn, Rochdale, Heywood, Oldham and Manchester. We also launched a £250,000 housing project in Malawi in partnership with the Malawi Asian Organisation, and this year handed over the first 50 houses to local families.

Built in Malawi in partnership with the Malawi Asian Organisation, one of 50 new homes is handed over to local families.

In one of a series of projects targeting vulnerable families in the UK this year, Islamic Relief and the Green Lane Mosque prepare food parcels for distribution in Birmingham.

A substantial grant helped FareShare to provide over 1,000 tonnes of food to people in need during the pandemic. We also supported Give a Gift in Leeds so they could provide over 500 individuals and 150 families with weekly food parcels or vouchers. As usual, our volunteers responded to calls for support, delivering much needed aid. In the Midlands, Leicester based supermarket PakFood donated essential groceries for food packs distributed by Cambridge Mosque. Meanwhile our support for organisations such as Refugee Action and the Coventry Refugee & Migrant Centre boosted their ability to provide vital advocacy, befriending and support services.

WE SUPPORTED VULNERABLE PEOPLE IN THE UK

This year we invested around £842,000 to support vulnerable people in the UK, which included a widespread response to the Covid-19 pandemic. We partnered with the National Zakat Foundation to fund their Hardship Grant which supported nearly 500 families across the UK during the pandemic. We also supported food banks and community kitchens through the Felix Project.

FareShare volunteers preparing food for people in need.

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PARTNERSHIPS

In a year of unprecedented challenge, we pivoted rapidly to ensure Covid-19 did not prevent us from fulfilling our mission to tackle poverty and suffering worldwide

Our financial resilience plan delivered £2.5 million in cost savings, while our digital fundraising strategy helped ensure our vital work continued amid the pandemic with a record fundraising year.

We continued progressing our localisation agenda, strengthening the capacity of local partners to deliver effective aid and development. We also continued much needed collaborative interfaith programming whilst strengthening protection and inclusion for some of the world’s most vulnerable.

£2.5 million secured through Covid-19 financial resilience plan Cash programming boosted to 120 projects featuring cash and vouchers

72,000 orphans worldwide supported by expanded sponsorship programme

ENSURING ORGANISATIONAL RESILIENCE

This year Islamic Relief pivoted to ensure the unprecedented and rapidly emerging challenges presented by the pandemic did not jeopardise our support for vulnerable people worldwide. Mobilising our Security and Incident Management Committee, we introduced robust business continuity plans to ensure our operations aligned with national coronavirus rules and adapted to emerging practical challenges.

We also implemented a financial resilience plan, with a range of measures to reduce expenditure. Among these were suspending international travel, furloughing some of our UK-based staff, and halting recruitment of new staff. Colleagues gave generously to a voluntary staff hardship fund, designed to support colleagues in difficulties. In addition we postponed or repurposed projects where this would not have an immediate detrimental impact on those we serve. Altogether we achieved around £2.5 million in savings.

It was also vital to overhaul our approach to raising funds for our programming. Our increased focus on digital marketing saw many of our fundraising activities and events move online and, as donors continued to give generously, 2020 was another record-breaking year for Islamic Relief’s income.

The safety and wellbeing of Islamic Relief colleagues was a top concern this year. We instituted working from home for office-based staff and our new safety guidelines boosted protection for colleagues working directly in communities. We made sure all colleagues had access to physical and mental health support such as counselling, webinars, and support with managing stress.

“The vulnerable people I am helping here are like a family to me. They need us more than ever – so our lifesaving work must continue,” says Ahmed, an Islamic Relief aid worker in Syria.

as well as supporting orphans and sustainable livelihoods, and distributing qurbani meat. The £377,000 return on investment raised in 2019 was spent across 17 projects.

STRENGTHENING ISLAMIC RELIEF FOR THE FUTURE

Islamic Relief is actively developing sustainable funding streams that safeguard our programming into the future, including waqf, an Islamic form of permanent endowment, through the International Waqf Fund. This year the independent entity trademarked its brand in the UK and EU and launched an English and Arabic website and social media. It worked in 13 countries this year, delivering nine projects responding to the pandemic,

In addition this year we strengthened a crucial asset: our faith based organisational identity, which drives us forward in service of humanity, underpinning everything we do. We held a global consultation on our identity, which is shaping our identity as we work towards developing our next fiveyear Global Strategy, due to be finalised in 2021.

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DEEPENING OUR POSITIVE IMPACT

Islamic Relief is increasingly breaking with traditional approaches in which communities only participate in a response by aid agencies. For example, in the Philippines this year, a project delivered in collaboration with local non-governmental organisation A Single Drop for Safe Water empowered communities to respond to the Covid-19 pandemic. Supporting local authorities and communities to prioritise issues and develop their own solutions, it also helps them network with suppliers of assistance from a position of power. As a winner of the Start Network innovation challenge this year, the project will receive tailored technical support to deliver on a wider scale and the potential to access a project development budget.

Islamic Relief also worked to increase the difference we make for people with disabilities. Despite representing at least 15 per cent of the world’s population, people with disabilities in humanitarian contexts are rarely recognised in needs assessments, or consulted about their needs.

At the 2018 Global Disability Summit we committed to tackle their exclusion from education and livelihoods, to contribute to antistigma and discrimination efforts, and to engage with organisations of persons with disabilities. Two years later, our programming in Bangladesh, Chechnya and Gaza in particular benefit from collaboration with organisations of persons with disabilities, and we have improved feedback mechanisms in Afghanistan and Indonesia.

This year we introduced new project planning and monitoring, as well as evaluation and accountability processes to improve consistency and guidance. In addition we broadened the impact of ground-breaking InterAgency Standing Committee (IASC) guidelines for the inclusion of persons with disabilities by translating them into Arabic.

through strengthening capacity, preparedness and establishing diverse local partnerships.

STRIDING FORWARD

In Nairobi, Kenya, Islamic Relief colleagues from east Africa develop plans to strengthen the capacity of field offices as part of the localisation agenda being rolled out through our pioneering STRIDE-II programme. In 2020 we held a series of virtual and in-person workshops involving more than 20 field offices. They focused on increasing our impact by developing the capacity of field offices and local actors

Also this year our new Localisation Taskforce – made up of fundraising offices, international programmes, and senior practitioners and specialists from the UK, east and west Africa, the Middle East, and Asia – completed research on localisation in Islamic Relief. It also developed a position paper and plans for the charity to take localisation forward.

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EMPOWERING LOCAL OFFICES AND PEOPLE

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A young girl in Kosova rests
atop her family’s winter
survival items, distributed
by Islamic Relief in 15
countries this year.
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Islamic Relief has provided humanitarian and development support in the Balkans region since the 1990s. A period of peace and growth within the region has seen a growing number of local donors wanting to give back to the organisations that supported them in their moment of need.

To meet this need, our local teams have invested more time in local fundraising activities to raise more funds to continue to support individuals locally and internationally. Our field offices in Kosova and Bosnia and Herzegovina are now providing a platform for a new generation of young volunteers to learn new skills and invigorate local fundraising.

Vulnerable families in Afghanistan’s Ghazni province received cash support this year through a child protection project which included interventions such as counselling and vocational training.

cash to people in crisis. A growing and critical part of humanitarian action, cash programming enables those we help to direct their own recovery, prioritise their needs and support local markets. This year we analysed our use of cash and vouchers assistance, and the learning from this will shape organisational strategy. We also trained staff and supported 120 projects featuring cash and vouchers.

As part of efforts to get more appropriate aid to more people, more quickly – in line with the Agenda for Humanity – we have committed to strengthen our capacity to provide

“Islamic Relief has for years been seen by the communities we serve as an organisation of hope,” says Luljeta Gashi, who heads up our orphans department in Kosova. “From our early focus on life-saving interventions, we have evolved into greater focus on development projects, fundraising and orphan welfare. As a child, I lost my father during the war and Islamic Relief’s orphan sponsorship was a lifeline for me and my family, so I know firsthand how transformative it can be.

DEVELOPING TALENT

Our Humanitarian Academy for Development (HAD) made a pioneering contribution to empowering local communities to deliver aid by supporting 27 Iraqi, Syrian and Yemeni non-governmental organisations to continue their programmes throughout the pandemic and to respond to Covid-19.

Altogether 335 Islamic Relief staff accessed remote mentoring, coaching and training provided by HAD, our training and learning division. In addition, HAD spearheaded the development of a robust new induction programme for trustees and a governance development programme.

HAD accredited the training of 55 volunteers in the UK, including 25 trained to respond to domestic emergencies such as floods. It also piloted virtual internship, recruited four graduate field trainees, and ensured Islamic Relief staff could continue to develop their skills through e-learning modules, which were accessed over 5,600 times by almost 600 different learners.

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CARING FOR VULNERABLE CHILDREN

In Al Mafraq, Jordan, 70 children from Syria received remedial lessons in Arabic, English and mathematics this year. The children, who face uncertain futures as refugees, were struggling academically or had already dropped out of school.

As the pandemic deepened the vulnerability of many children worldwide, Islamic Relief pressed forward efforts to strengthen child protection measures and approaches. A member of the Alliance for Child Protection in Humanitarian Action steering committee, we worked around the clock to help develop guidance for organisations, practitioners, communities and individuals on working with children and families amid Covid-19 restrictions.

As co-chair of the Joint Learning Initiative on Ending Violence against Children Hub, we supported formal

and informal child protection systems which proved critical during 2020. We also highlighted the need for children’s participation, drawing on one of our projects to tackle violence and abuse perpetrated against children living on the streets in Pakistan.

In 2020 we reached more children than ever through our life-changing orphan sponsorship scheme, which by the end of the year was supporting 72,000 vulnerable children in 27 countries. Having lost their father, or even both parents, orphaned children are without a key source of support and protection. Islamic Relief gives the families of orphaned children a regular stipend through which to meet their children’s basic needs and send them to school. This year we also provided access to an emergency medical fund, covering the cost of medical emergencies.

Fourteen-year-old Alassana (right), with his mother and sister at their home in Bamako, Mali. For six years Islamic Relief’s orphan sponsorship programme has been a lifeline for the family, and this year the teenager received life-changing surgery to remove a painful hernia. Alassana was one of 169 people to receive free medical treatment through an Islamic Relief health project serving orphaned children and their families. “I don’t know how to thank you for your endless support for my son, you gave us hope,” says his mother, Kadiatou.

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INTERFAITH PARTNERSHIPS

This year we continued to champion interfaith approaches to humanitarian relief and development. In a joint webinar with Tearfund and the Joint Learning Initiative on Faith and Local Communities (JLI), we shared our experience as part of the interfaith Bridging the Gap Consortium. Focused on localisation, we trained two local faith organisations in South Sudan to deliver an integrated livelihoods, water, sanitation and hygiene project.

We also launched two podcasts exploring the role of faith actors in promoting lasting peacebuilding during the pandemic, featuring voices from around the world. They were produced with partners including World Vision International, Religions for Peace, Partnership for Religion and Development (PARD), World Evangelical Alliance, and Side by Side. At the Multifaith Advisory Council’s celebration of the 75th Anniversary of the United Nations we joined other organisations in discussing the challenges of Covid-19 and the key role of interfaith work in achieving the Agenda for Sustainable Development 2030. Covid-19 was also top of the agenda when our chief executive joined counterparts from World

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In South Sudan, an interfaith
event held through the
Bridging the Gap Consortium
focused on faith and
humanitarian response.
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Jewish Relief, Christian Aid and Quakers in Britain on the Faith Week panel.

inter-religious conference to protect the rights of children affected by migration. Islamic Relief also collaborated with other faith-based partners including Lutheran World Federation, World Vision and the World Council of Churches to advocate for refugee and migrant children to be integrated and protected from discrimination and xenophobia.

This year we also worked closely with interfaith groups to promote the rights of refugees. We were nominated to co-chair an interfaith taskforce with UNHCR and other faithbased organisations, highlighting commitments made through the Global Compact on Refugees. We facilitated a session at UNICEF’s

STRENGTHENING GOVERNANCE

We took decisive steps this year to strengthen our governance in the light of offensive social media posts from 2013-15 by three senior individuals that came to light in 2020 and prompted the opening of a fact-finding review by the Charity Commission. In January 2021 the Commission informed our Board of Trustees it was content to close its ‘Compliance Case’, having satisfied itself that Islamic Relief had taken “swift action” in immediately requiring the individuals to resign and putting new safeguards in place.

The actions we took included developing an extensive new social media policy; introducing third-

party vetting of senior leaders; and embarking on a new programme of diversity and inclusion training. We fully accept the conclusions of the Charity Commission and are committed to enacting its recommendations in full.

We also set up an Independent Commission to look into our governance led by Dominic Grieve QC, former Attorney-General for the UK Government, and Sir Clive Jones, a former chair of the Disasters Emergency Committee (DEC). The Independent Commission concluded that Islamic Relief Worldwide is a “highly effective” charity working exclusively under its

humanitarian principles, and made 19 recommendations to strengthen our governance and other areas, which are now being implemented. Its full report is available on our website.

Dominic Grieve QC led an Independent Commission set up in 2020.

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SOME OF OUR VALUED PARTNERS

The organisations that appear on this page encompass many of our key partners in 2020, from major institutional funders to programme implementation and advocacy partners, and key stakeholders we consult with.

Arab Fund for Economic and Social Development (AFESD)

Bond CAFOD (Catholic Agency for Overseas Development)

Care

CHS Alliance

Climate Action Network International Disasters Emergency Committee (DEC) Finn Church Aid

Foreign, Commonwealth & Development Office (FCDO) Gender and Development Network (GADN) Global Affairs Canada

HIAS

Humanitarian Coalition

IASC

ICVA

International Islamic Charity Organization International Organization for Migration (IOM)

Islamic Development Bank

Joint Learning Initiative (JLI)

Jordan Hashemite Charity Organization (JHCO) Lutheran World Federation

Network for Religious & Traditional Peacebuilders (NRTP)

NGO Voice

Qatar Charity

Qatar Red Crescent

Radiohjälpen

Reach Out To Asia (ROTA)

Sheikh Abdullah Al Nouri Charity Society

Sida (Swedish International Development Agency Cooperation)

Start Network

Trócaire

UN Office for the Coordination of Humanitarian Affairs (OCHA) UN Refugee Agency (UNHCR)

UN World Food Programme (WFP) UNFPA (United Nations Population Fund) Unicef

United Nations Development Programme (UNDP)

United Nations Entity for Gender Equality and the Empowerment of Women (UN Women)

US Agency for International Development (USAID) World Vision

Zakat House

THANK YOU TO OUR SUPPORTERS

Islamic Relief’s vital work would not be possible without our incredible donors, who – despite the challenges of the Covid-19 pandemic – continued to give generously to help vulnerable people around the world.

“The feeling one gets when we help some of the world’s most vulnerable people is difficult to express with words. We are fulfilling one of the purposes we were created for as humans, which is to serve humanity. During the coronavirus pandemic, we all felt helpless while watching the news and hearing about the suffering of people around the world. Islamic Relief offered us the opportunity to be part of the emergency response and provide relief to families who were affected the most by Covid-19.

“There are no words to describe how I feel knowing that by supporting Islamic Relief, I have been able to reach someone in need, somewhere around the world. It is a feeling that will always be in my heart.”

Miriam Gaisar Seco, Madrid, Spain

“I have read a lot of information circulating about the misuse of funds, and how some charities spend up to 80 per cent of their funds on overhead costs and staff salaries, rather than helping those in need. It made me feel very worried about whether we could trust charities to ensure our money reaches those in need. My wife and I really wanted to support some people in need and decided it would be better to do so through an organisation but we were unsure who we could trust.

“Our imam asked me to develop a system where we could track donations for transparency and to ensure that the funds reach people on the ground. I did a lot of research into charities. I learnt about Islamic Relief, and have developed complete trust in them. I know Islamic Relief are highly trustworthy and they deliver our funds to people in need with excellence and integrity. I pray that Allah gives Islamic Relief strength and patience to continue helping those in need until we come to the point where no one else needs help.”

Kurtović Emir i Elma, Bosnia and Herzegovina

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - PARTNERSHIPS

during the Bosnian War, which began in 1992. Islamic Relief provided lifesaving aid throughout the devastating conflict, and ever since has been helping survivors to rebuild their lives in Bosnia and Herzegovina. Selamun returned in 1998, but found that the war had destroyed livelihoods in Stolac, his hometown. “Life was hard. For 20 years we struggled to live normally.” Then he received one of over 200 greenhouses Islamic Relief provided to struggling families. The father-of-two now earns a decent living throughout the year growing vegetables. “Thank you, God bless you. You helped us a lot.”

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Karim was born in February 2020, at a new maternity centre built by Islamic Relief in Dialakoro village, Mali.

“If there is no maternity centre it may lead to a stillborn baby, or even the death of the mother,” says his mother, Worodjé. “The birth of Karim was good because I was able to deliver in a very welcoming environment. The new maternity centre was a joy for me. We had an ambulance, we had mosquito nets and the place was clean.”

STRUCTURE, GOVERNANCE AND MANAGEMENT

ISLAMIC RELIEF WORLDWIDE’S GOVERNANCE REFORM PROGRAMME

Founded in 1984, Islamic Relief has grown into one of the world’s largest relief and development charities, with offices and operations in dozens of countries assisting millions of vulnerable people every year.

It has therefore been crucial to evolve our governance arrangements to meet the changing needs of the Islamic Relief family and the challenging environment in which we operate. In 2014 we formally began an ambitious programme to overhaul our global governance so the Islamic Relief family can be better equipped to manage the growing scale and scope of our operations while remaining true to the vision of our founders.

In 2020 these reforms reached an exciting milestone, with the creation of our first ever International General Assembly (IGA). The highest body of the Islamic Relief Worldwide governance structure, the IGA is made up of representatives elected by and from those Islamic Relief member offices which have committed to our new membership agreement. The new membership will include independent members that reflect the broad range of stakeholders committed to support the Islamic Relief mission.

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Independent
Islamic Relief International
members
Worldwide General
Election Appointments
Board of Assembly
Family Members
Trustees (IGA)
Boards
Membership Accreditation Committee (MAC)
Governance Committee
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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

WHAT DOES THE IGA DO?

The core of the IGA’s role is:

To elect members of the IGA to Islamic Relief Worldwide’s global Board of Trustees (BOT). The IGA and the BOT will be made up of country members who will make up three-quarters of the total membership and independent members brought in to provide additional specialist skills and ensure greater diversity and accountability.
To approve any changes to the Islamic Relief Worldwide governing documents, membership policies, the mission and strategy, as well as being the final arbitrator on issues of membership.
To appoint the Chair and members of a new Membership Accreditation Committee (MAC). An IGA subcommittee, the MAC is responsible for managing membership accreditation thus strengthening accountability to the entire Islamic Relief family.
To appoint the Chair of the Governance Committee, which is responsible for proposing best practices across the Islamic Relief Family. It also reports on adherence to agreed standards, policies, and procedures across all member offices.

WHAT ARE THE KEY BENEFITS THIS NEW GOVERNANCE MODEL DELIVERS?

It enables the Islamic Relief family to further cement and formalise the interdependence between Islamic Relief members and Islamic Relief Worldwide. It allows us, collectively and collaboratively, to maintain our focus on the best interests of those that need our support the most. It will also build a stronger and more cohesive Islamic Relief family that pulls in the same direction, based on our unifying values drawn from Islam and humanitarian principles.
It reflects our common mission and the vision and values we share; it is aimed at guaranteeing shared ownership and joint decision-making, as well as accountable and transparent relationships.
The new approach to governance and its accompanying Constitution, rules and standards provides us with an opportunity to embed a more efficient and effective way of working across the globe.
This governance model will also enable the family to have a consistent and transparent approach to many issues and challenges the organisation faces such as our code of conduct, safeguarding and other areas to ensure that the entire family is protecting its beneficiaries and employees through shared policies and mechanisms.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

MEET OUR BOARD OF TRUSTEES

The Board of Trustees’ members are elected by the International General Assembly. The first seven members elected to the new Board in 2020 represent seven countries across five continents. Each trustee is a volunteer, chosen because they have a diverse range of skills, knowledge and experience that will help us respond to key challenges. The term in office is four years, with the possibility of serving for one more term only.

Dr Ihab Saad – Chair

Member of the Board of Trustees for Islamic Relief USA

A professor of Civil Engineering and Construction, Dr Saad has a degree in Civil Engineering from Cairo University and a Master’s degree and PhD from the University of Kentucky. He has taught and consulted in multiple countries over the past 30 years, and his work has been published in journals. He joined the Board of Islamic Relief USA in 2005 and was Chair from 2011 to 2014. He stepped down in 2017 and re-joined in 2019.

Haroun Atallah – Member

Member of the Board of Trustees for Islamic Relief Switzerland

Mr Atallah is the Finance and Support Services Director for the International Development Law Organization. A former CEO of Islamic Relief Worldwide and Corporate Services Director at Transparency International, he is a chartered accountant, auditor and aid worker.

He contributes to humanitarian research, particularly on the impact of counter-terrorism measures on charitable activities. He also trains and advises government agencies and international non-governmental organisations on accountability, governance, corporate finance and strategic development.

Lamia El Amri – Vice Chair

Chair of the Board of Trustees for Islamic Relief Sweden

Mrs El Amri is a Muslim women’s rights activist and former elected representative on Stockholm City Council who is now a senior manager at the Swedish Labour Agency.

She joined the board of Islamic Relief Worldwide in 2013, becoming Vice Chair in 2015 and Chair in 2017. She served until August 2020 before being elected under the new governance arrangements to continue on the Board in the role of Vice Chair for a nine-month transitional period.

Nurhayati Hassan – Treasurer

Member of the Board of Trustees for Islamic Relief Malaysia

A certified coach and a certified financial planner, Ms Hassan is a licensed financial adviser. Previously, she was a human resources consultant specialising in corporate talent assessment and succession planning. She also has a background in investment banking, including research and analysis, corporate finance and strategic planning.

She holds an MBA in Management from Golden Gate University, and a degree in Accounting with Computing from the University of Kent. She is a member of the Financial Planning Association of Malaysia and the Malaysian Association of Certified Coaches.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

Dr Aarif Pathan – Member

Member of the Board of Trustees for Islamic Relief Canada

Dr Aarif Pathan works in family medicine. After graduating from the University of Alberta, he completed his residency in family medicine at the University of Western Ontario before serving in the Department of Internal Medicine at William Osler Health Corporation.

A long-time Islamic Relief volunteer, he joined the Board of Islamic Relief Canada in 2019. He is passionate about promoting healthcare and mentoring youth in underprivileged communities.

Dr Nora Amath – Secretary

Chair of the Board of Trustees for Islamic Relief Australia

Dr Amath, author of The Phenomenology of Community Activism, is an adjunct Research Fellow at Griffith University. She focuses on multiculturalism, social inclusion, diversity, and leadership. Her work has been published in professional journals.

Dr Amath works at the Islamic Women’s Association of Australia as the National Manager of Refugee Settlement and the CAMS Statewide Coordinator. She is also a member of the Minister’s Queensland Multicultural Advisory Council. In 2006 she received the Australian Muslim Woman of the Year Award.

Dr Muhammad Osman – Member

Member of the Board of Trustees for Islamic Relief South Africa

Dr Osman is a medical doctor and a PhD candidate at Stellenbosch University.

His research focuses on tuberculosis, and his work is published in journals. He graduated from the University of Cape Town, and completed a Postgraduate Diploma in Health Management and MSc Epidemiology as a Fogarty Fellow at Columbia University.

Dr Osman is dedicated to youth development. He joined the Board of Trustees for Islamic Relief South Africa in 2020.

WHAT DOES THE ISLAMIC RELIEF WORLDWIDE BOARD OF TRUSTEES DO?

Oversees the governance of Islamic Relief Worldwide in accordance with its statutory obligations, making sure that we satisfy our regulatory requirements.
Acts at all times in a manner most likely to support the charity in meeting our aims and objectives.
Oversees the development of the organisational strategy and the setting of priorities and objectives.
Approves the executive management structure of the organisation together with delegated authorities.
Evaluates performance and progress, and approves relevant new policies and procedures.
Appoints the CEO, evaluates the performance of the executive management team and is involved in making appointments to, and dismissals from, this team.
Approves the remuneration policy of the organisation and sets the remuneration for senior management.

HOW DO WE SUPPORT OUR TRUSTEES?

New trustees benefit from a mentor and comprehensive induction. They receive a full overview of our strategic and operational functions, as well as a welcome pack, which includes a copy of the Memorandum and Articles of Association, the financial statements, Board minutes, the Charity Commission guidance ‘The Essential Trustee’ and recent publications.

We actively encourage trustees to identify any training they may need, and our CEO keeps them up-to-date with training opportunities and changes in regulatory standards. We continually evaluate the Board’s effectiveness. The Board of Trustees receives regular performance reports, annual financial reports, plans and budgets. The Board is committed to continuous improvement and will put in place a periodic third-party review and assessment of its effectiveness and its way of working.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

INDEPENDENT COMMISSION

Our new Board of Trustees’ first act was to establish an Independent Commission to assess the vetting of our trustees and senior executives, taking a 'deep dive' into the issue of how our trustees and senior executive are vetted and screened, as well as reviewing and redefining expectations of conduct, following media reports of offensive past social media posts by senior Islamic Relief leaders.

The Commission was chaired by Dominic Grieve QC, former UK Attorney General and former Chair of Parliament’s Intelligence and Security Committee. He was assisted by Sir Clive Jones CBE, former chair of the Disasters Emergency Committee (DEC), a coalition of the UK’s 14 leading humanitarian agencies, of which Islamic Relief is a member.

In January 2021 the Commission generated a robust and relevant set of recommendations for Islamic Relief to put in place. Islamic Relief accepts the Commission’s findings and has developed a comprehensive action plan to make sure we are doing all we can to act on its recommendations at pace. The Commission’s full report is available on our website.

KEY PERSONNEL

The CEO is accountable to the Board of Trustees and, along with other senior staff, is responsible for our day-today management. The CEO chairs the executive management team, which is made up of directors. Divisional directors make sure that the policies and strategies agreed by the Board of Trustees are implemented, and they also support the work of other staff and volunteers. A full list of trustees and key personnel is given in the corporate directory on page 100.

REMUNERATION POLICY

We strive to attract and retain talented individuals based on their passion, commitment, values, knowledge, skills and experience. Whilst the financial dimension is not the foremost basis for engagement, we look to pay our team appropriate salaries. As such, our remuneration principle is to be market relevant, not market driven – so we position ourselves in the median quartile of benchmarking exercises. Our remuneration model is designed to be cost-effective and sustainable, and in line with our determination to be ‘lean’, to maximise the amount we spend on our programme work. We also recognise that attracting and retaining the best talent requires sufficient flexibility to allow for a caseby-case consideration for particularly exceptional talents, hard-to-fill roles and top performers. By using the steps within a set grade range, we can apply this flexibility while maintaining the integrity of the wider grading system.

ARTICLES OF ASSOCIATION AND RULES (BYLAWS):

We have the following key governing documents that are now in place and effective in relation to establishing and implementing the new governance structure for the Islamic Relief family:

Memorandum of Association and Articles of Association – which together effectively form Islamic Relief Worldwide’s Constitution. These documents include the new objects clause: a document that reflects the breadth of our activities, size and complexity.
Bylaws – the rules that define the principles set out in the Constitution and provide details of governance procedures.
Licence Agreement – the document that confirms that Islamic Relief partners can use the name and logo of Islamic Relief in their respective geographical areas.
Members Agreement – a contractual agreement between Islamic Relief partners and Islamic Relief Worldwide that cements and defines the terms of our mutually beneficial relationship.
Membership Accreditation Committee – a set of rules for the Membership Accreditation Committee aimed at defining terms for the selection of IGA members and providing for constant evaluation of the implementation of the agreed criteria.
Independent Members criteria and selection process.

TIC INTERNATIONAL LTD

TIC International is a trading subsidiary of Islamic Relief Worldwide. It supports our fundraising activities by recycling clothes and running charity shops across the UK.

The registered address of TIC International Ltd is 19 Rea Street South, Birmingham B5 6LB

INTERNATIONAL WAQF FUND

This is a subsidiary of Islamic Relief Worldwide and also a registered charity that undertakes waqf (Islamic endowment) activities (see page 68 for more information).

The registered address of International Waqf Fund is 22 Sampson Road North, Birmingham B11 1BL. Islamic Relief Worldwide exercises control over International Waqf Fund having the right to appoint and remove the trustees of International Waqf Fund.

ISLAMIC RELIEF MAURITIUS

Islamic Relief Mauritius is incorporated as a branch of Islamic Relief Worldwide with local directors appointed to oversee operations. The entity’s transactions and balances are included within the accounts of Islamic Relief.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

THE ISLAMIC RELIEF GLOBAL FAMILY

Based in Birmingham, UK, Islamic Relief Worldwide is the international office of the Islamic Relief federation. We oversee global standards, coordinate and monitor project implementation, identify new areas for fund development, oversee the response to emergencies and disasters by members of the Islamic Relief federation and support them as needed with marketing and media materials. We also coordinate engagement and ongoing relations with multi-lateral institutions, represent the federation in international forums and develop and coordinate the global strategy.

Registered as independent legal entities, Islamic Relief Worldwide’s members raise funds for international humanitarian projects, implement local programmes and deliver advocacy and other activities in their own contexts.

In these accounts we have included funds transferred to us from the following, legally recognised under Company Law, members of our IGA:

Islamic Relief Australia
• Islamic Relief Canada • Islamic Relief Germany • Islamic Relief Italy • Islamic Relief Malaysia • Islamic Relief South Africa • Islamic Relief Sweden • Islamic Relief Switzerland • Islamic Relief USA

Non-voting members also attend our IGA, and, while they do not yet meet the criteria for full membership, fully share in the Islamic Relief strategy and activities. The following are non-voting members:

Islamic Relief Kenya
• Islamic Relief Pakistan

Some independent organisations are affiliated to Islamic Relief Worldwide through our Licence Agreement. These affiliates, some of which are independent legal entities, deliver projects on behalf of the Islamic Relief family and include:

Islamic Relief India
Islamic Relief Ireland
Islamic Relief Norway
• Islamic Relief Russian Federation
Islamic Relief Spain
Islamic Relief Turkey

Countries in which we have what we call ‘field offices’, delivering humanitarian and development aid, and sometimes engaging in advocacy and external relations locally:

Afghanistan
Albania
Bangladesh
Bosnia and Herzegovina
Chad*
Ethiopia
Indonesia
Iraq
Jordan
Kosova
Lebanon
Malawi
Mali
Nepal
Niger
Occupied Palestinian Territory
The Philippines
Somalia
South Sudan
Sudan
Tunisia
Yemen

Countries in which we work through and with other partners to deliver projects include:

Central African Republic
China
Greece
Macedonia
Mozambique
Myanmar
Sri Lanka
Syria

*During 2020, Islamic Relief stopped operating in Chad

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

EXECUTIVE MANAGEMENT TEAM AND TRUSTEES’ RESPONSIBILITIES

Trustees must keep adequate accounting records that are sufficient to:

The trustees, who are also the company directors of Islamic Relief Worldwide, are responsible for preparing the trustees’ report. This includes the group strategic report and the financial statements, preparing these in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires our trustees to prepare financial statements for each financial year. They must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group, and of the incoming resources and application of resources, including income and expenditure, of the charitable group for that period.

show and explain the charitable company and the group’s transactions;
disclose with reasonable accuracy at any time the financial position of the charitable group;
enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed.

The trustees are also responsible for safeguarding the assets of the charitable company and the group and, therefore, have to take reasonable steps to prevent and detect fraud and other irregularities.

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

select suitable accounting policies and then apply them consistently;
observe the methods and STATEMENT ON DISCLOSURE principles in the Charity OF INFORMATION TO THE Commission Statement of Recommended Practice (SORP); AUDITORS

Under Section 418 of the Companies Act 2006 the trustees’ report must contain statements to the effect that, in the case of each of the persons who are trustees at the time, the report is approved:

make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
So far as they are aware, there is no relevant audit information of which our auditors are unaware.
They have taken all the steps that they should have taken to make themselves aware of any relevant audit information, and to establish that our auditors are aware of that information.
prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the charitable group will continue in operation.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

PUBLIC BENEFIT

We develop strategic plans to make certain that we deliver maximum public benefit and achieve our strategic objectives, which fall under purposes defined by the Charities Act 2011. The trustees have carefully considered the Charity Commission’s general guidance on public benefit in setting our objectives and planning our activities.

EMPLOYEES

We support our employees and actively develop their skills. We encourage all our colleagues to engage with the organisation’s strategy and objectives, and to give their suggestions and views on performance and strategy. Islamic Relief Worldwide is an equal opportunities employer and we are proud to recruit and promote staff based on aptitude and ability, without discrimination. Our staff benefit from training and career development policies and provision, as well as regular supervision and an annual appraisal.

VOLUNTEERS

Our volunteers provide crucial support for our work and we continue to be assisted by a committed and passionate network of volunteers, who we actively manage. During 2020, our network of dedicated volunteers contributed significant hours supporting our shops, administration, fundraising and campaigning activities.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

AUDITORS

A resolution to reappoint Grant Thornton LLP as auditors will be put to the members at the Annual General Meeting.

FUNDRAISING STRUCTURE

Islamic Relief Worldwide raises funds through various channels including online platforms and through its International Fundraising and Partner Development departments, which help new member offices establish and grow, as well as strengthen links with institutional donors around the world. We also have a structure in place that governs fundraising in the UK through one of our fundraising divisions, Islamic Relief UK. The overall objectives are agreed with the Board and disseminated to Islamic Relief UK. The Board and Islamic Relief UK then plan accordingly, setting Key Performance Indicators for their teams and delivering in accordance with the Fundraising Regulator’s Code of Fundraising, to which the charity adheres. The performance of the fundraising teams is monitored on a regular basis by management, and reports are issued to the Board periodically.

FUNDRAISING APPROACHES

The charity adheres to all relevant statutory regulations including the Data Protection Act 2018 and the Charities Act 2011. We are registered with the Fundraising Regulator and strive for best practice in fundraising by adhering to the Code of Fundraising Practice, and are committed to their Fundraising Promise. Islamic Relief is also a member of the Institute of Fundraising. Our fundraising utilises a number of different approaches, which include the following:

Major-donor giving
Corporate giving
Community fundraising
Charity shops
Sponsored challenges
Live TV appeals
Events
Volunteer activities
Direct mail
Digital fundraising

In response to the challenges of the Covid-19 pandemic, this year we cancelled face-to-face events and increased our focus on digital fundraising methods. Most of our activities were carried out by our own staff and volunteers. Islamic Relief Worldwide also engaged thirdparty organisations to fundraise on our behalf, subject to contractual agreements and requirements to meet the same standards observed by Islamic Relief Worldwide in their fundraising practices.

CHARITY WEEK

Through our student-led Charity Week campaign we worked with volunteers and students from 318 higher and further education student societies to raise awareness and funds. The fundraising and Charity Week teams ensured that comprehensive training was given to every student society and volunteer through workshops that were delivered locally by the regional teams and filtered down to every participant. Our regional fundraising teams provided support for the range of events and activities taking place across the country and closely monitored these activities to ensure best practice.

CODE OF FUNDRAISING PRACTICE

During the course of the year the charity performed ongoing reviews of its compliance with the Fundraising Regulator’s Code of Fundraising Practice. We also implemented further processes and safeguards to improve fundraising standards.

PROTECTION OF VULNERABLE PEOPLE

Islamic Relief Worldwide abides by the Fundraising Regulator’s Code of Fundraising Practice and ensures our staff and volunteers are fully briefed about the protection of vulnerable people. Before any external facing fundraising activity is undertaken, staff and volunteers are briefed about best practice and made aware of the need to identify, respect, support and protect vulnerable people.

COMPLAINTS HANDLING

There may be times when we do not meet the high standards we set ourselves; for such instances we have a complaints policy in place. The policy is published on our website and a complaint can also be lodged through the website. Complaints are captured centrally, dealt with in accordance with the process laid down in the policy and reported to the Fundraising Regulator through the annual return. We received 107 fundraising-related complaints in 2020, all of which were investigated and addressed in accordance with the complaints policy.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

Trustees’ indemnity insurance, indemnifying each trustee against liability to third parties, has been in place throughout the year ended 31 December 2020 and up to the date of approval of this report.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

TRUSTEES’ COMPLIANCE WITH THEIR STATUTORY DUTIES

The trustees of Islamic Relief Worldwide are required to state how they have complied with their duties “to have regard to matters in Section 172(1) of the Companies Act 2006”. The matters alluded to are given as headings below and in each section we have detailed how the trustees have complied.

THE LIKELY CONSEQUENCE OF ANY DECISION IN THE LONG TERM The charity operates under a fiveyear Global Strategy and in order to meet this, the Board of Trustees has to pay due regard to the longterm consequences of its decisions. Throughout the life of the strategy its implementation is regularly monitored through bi-annual progress reports, which help inform the long-term decision-making that is required to achieve the objectives set out in our strategy.

THE INTERESTS OF THE CHARITY’S EMPLOYEES

The trustees fully appreciate the work of our colleagues and involve them to the greatest extent possible so that their interests are served. An example of this is policies being put out for general consultation before they are brought to the Board of Trustees for approval. Another example is that of the Gender Equality Steering Group, which is chaired by a Trustee who is supported by a co-chair from amongst our staff. The Group is made up of individuals from across the Islamic Relief Worldwide workforce, representing all sections of the organisation.

The Chair of the Board of Trustees and the Chief Executive Officer hold regular organisation-wide webinars in which staff are encouraged to express their views and concerns. The Chair then reports back to the rest of the Board so that appropriate actions can be taken to address any staff concerns and suggestions.

Islamic Relief Worldwide intends to formalise and strengthen the organisational identity that will underpin the development of the new strategy, with consultation extending to every staff member.

THE NEED TO FOSTER THE CHARITY’S BUSINESS RELATIONSHIPS WITH SUPPLIERS, CUSTOMERS AND OTHERS The trustees recognise the value in fostering relationships with all the charity’s stakeholders; it leads to loyalty, mutual respect, trust and openness.

Although our vetting processes for onboarding partners and suppliers are necessarily rigorous we try to build their capacity whenever possible by offering advice and sharing policies and procedures.

Islamic Relief Worldwide would not exist were it not for the generosity of our donors, so we exert a great deal of effort in keeping in touch with them in the manner that they prefer and informing them of what their contributions have achieved.

We try to give our volunteers the most rewarding experience possible, not least because we know that such an experience may lead to them becoming in future a committed employee, donor or advocate. Most of the volunteers support our fundraising efforts, others volunteer at the charity shops, get involved in campaigning, join our call centre operation, deliver cakes or act as brand ambassadors. We value the time and commitment of individuals and offer our recognition through initiatives such as our annual Volunteer Award Ceremony. We have also developed a number of volunteer development programmes that attract young adults and working professionals alike to develop the leadership and life skills needed to be effective volunteers. Our flagship programme, AimIR, allows learners to earn a Level 3 certificate in Leadership and has been awarded a prestigious Princess Royal Training Award (2018).

THE IMPACT OF THE CHARITY’S OPERATIONS ON THE COMMUNITY AND THE ENVIRONMENT

The Board of Trustees have fully committed the organisation to the Core Humanitarian Standards. These standards “put communities and people affected by crisis at the centre of humanitarian action”. The charity

fully subscribes to this ethos, which we enact in all of our programme delivery. Indeed the standards are also adhered to by all of our support departments, such as Finance, HR and External Relations and Advocacy.

We are committed to tackling climate change and spend considerable resources advocating and campaigning in this regard, so it is incumbent on us to pay due regard to the impact our operations have on the environment. Accordingly, all our programmes are now designed to ensure that due attention is paid to their environmental impact. We are endeavouring to reduce our carbon footprint by seeking to cut back on air travel and making our new headquarters more energy efficient.

MAINTAINING A REPUTATION FOR HIGH STANDARDS OF BUSINESS CONDUCT

The trustees are fully aware that the charity’s reputation for high standards of business conduct has played a major part in our growth over the past years. Accordingly, the Board of Trustees consider it imperative that this reputation is maintained. To this end we employ rigorous vetting procedures when recruiting staff and the standards of behaviour expected from them, as set out in the Code of Conduct, are inculcated in them at their induction and subsequently reinforced. We have fostered a culture which abhors bribery and corruption.

Our procurement and ethical vetting procedures ensure that values are a key part of our selection of suppliers. Islamic Relief Worldwide requires all suppliers to adhere to our Code of Conduct which encompasses the Modern Slavery Act 2015, the International Labour Standards as defined by the

International Labour Organisation and the United Nations Global Compact’s 10 principles which covers human rights, labour, the environment and anti-corruption. In this way we aim to attract and do business with partners who strive for the same the high standards, cementing our reputation still further.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

STREAMLINED ENERGY AND CARBON REPORTING REQUIREMENTS (SECR)

This new statutory reporting requirement is intended to encourage the implementation of energy efficiency measures, with both economic and environmental benefits, supporting organisations in cutting costs at the same time as reducing carbon emissions.

Islamic Relief campaigns to mitigate climate change, supporting international efforts to eliminate greenhouse gas emissions, so we welcome this new reporting obligation. The charity conducted research on environmental policy and legislation, which contributed to technical consideration of adaptation by the United Nations and the Intergovernmental Panel on Climate Change (IPCC). We also threw our weight behind campaigns for urgent action to support vulnerable communities, by joining 86 organisations in endorsing the Call for Action on Adaptation and Resilience.

We take our responsibilities seriously, and so have engaged specialist consultants Enica to determine our carbon footprint. The consultant’s findings are set out in the table below:

SECR Scope No	Energy Source	Energy Usage (kWh)	Emission (tCO2e)	Proportion of Total
Scope 1	Natural Gas	381,419	70.1	15.8%
Scope 2	Grid Electricity	532,042	124.0	28.0%
Scope 1	Transport (IRW owned)	542,518	125.9	28.4%
Scope 3	Transport (non IRW owned)	31,204	7.2	1.6%
Scope 3	Rail & Air Travel (without RF)*		115.3	26.1%
TOTAL			442.5

RF – Atmospheric Radiative Force

When set against the organisation’s income in the year the above represents a Carbon Intensity Ratio of 2.97 tCO2e per £1m of income.

METHODOLOGY

ENERGY MANAGEMENT

The methodology used was in accordance with the Government’s Environmental Reporting Guidelines (March 2019). The Department for Agriculture and Rural Affairs’ (DEFRA) kgCO2e conversion factors for 2020 were used for converting energy (kWh) to tCO2e.

The total emissions across all our operations in the UK have been taken into consideration in the calculation of the charity’s Carbon Intensity Ratio. Islamic Relief has a mixture of 20 operating sites in the UK which encompass three office blocks, 12 shops and an extensive factory unit. The energy consumption data for gas and electricity was taken from the main billing meters across all the sites.

CO2 emissions from all modes of transport utilised by the organisation have also been included in this exercise and cover -

Islamic Relief owned transport (cars and vans)
‘Grey mileage’ from rented cars and vans and staff using their own vehicles on organisational business
Public transport; including flights to and from the UK.

Energy efficiency projects implemented during 2020 were improvements to the boiler management controls at the Sampson Road offices in Birmingham and an LED lighting upgrade at the Lower Marsh offices in London. These projects are expected to deliver an estimated 20,600 kWh annual energy saving over the next five years. Other energy-saving technologies are being incorporated in the new Trafalgar House offices.

This exercise of determining the charity’s Carbon Intensity Ratio has itself highlighted opportunities to improve this, and the organisation is fully committed to doing so over the coming years.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

PRINCIPAL RISKS AND UNCERTAINTIES

Islamic Relief Worldwide

is committed to providing humanitarian aid and relief to those who need it the most. This commitment means we must operate in countries affected by war, conflict, humanitarian and environmental disasters and general uncertainty. It gives rise to significant risks and uncertainties, which we have managed through our considerable experience in this field, supported by a robust framework of systems, processes and oversight.

The Islamic Relief Worldwide Board of Trustees is advised by an Audit and Finance Committee (AFC) made up of trustees and independent members who bring a broad range of expertise in this area. The AFC meets at least four times a year, and its terms of reference include scrutiny and oversight of the way our executive are managing risk.

An independent Internal Audit function reports to the AFC. This function maintains the risk register and carries out a risk-based audit programme, which follows an audit plan approved by the Audit and Finance Committee.

The executive management team regularly undertakes strategic and operational reviews to identify organisational risks and come up with plans to mitigate them. The team is then responsible for implementing those action plans, with the Audit Committee monitoring progress.

In order to underpin the process of risk management, Islamic Relief Worldwide has invested in specialist software that covers every field office as well as its operations in the UK. The principal risks and uncertainties facing Islamic Relief Worldwide, and the mitigating actions taken to meet them, are:

SAFEGUARDING

The pandemic made it necessary for humanitarian organisations to re-examine measures and protocols addressing safeguarding and Protection from Sexual Exploitation, Abuse and Harassment (PSEAH) requirements. Islamic Relief Worldwide adapted our procedures, so we were able to continue to prevent and respond to safeguarding concerns. We held a series of webinars and training sessions to support our country offices to make the changes needed. Challenges included difficulties in reporting concerns safely and in a way which is Covid compliant; limited engagement with communities for awarenessraising; and the availability of service providers to whom referrals could be made. There was also a need for in-depth training, which had to be adapted and delivered online rather than face-to-face. However, Islamic Relief made significant strides forward. Adhering to minimum standards, we promoted safeguarding and protection messages via new methods including radio broadcasts and community-based mechanisms.

We held our first ever Global Partners’ Safeguarding Summit, a remote event bringing together representatives of Islamic Relief family members from around the world. This contributed to mainstreaming the important role of safeguarding in our organisational culture. We continue to develop our reporting, and – committed to transparency – ensure that it uses easy-to-understand language and can be accessed by people of all ages and abilities. In line with our commitment to transparently reporting all safeguarding incidents, including incidents related to the people we serve and any cases of sexual harassment, we are once again publishing figures regarding safeguarding cases reported to us.

In doing so, we have adopted a broad definition of ‘safeguarding’: all complaints of harm related to sexual exploitation, abuse or harassment by Islamic Relief Worldwide employees, contractors, volunteers or others. Where multiple complaints were made against one individual which were similar in nature, we conducted a single investigation so we did not lose valuable time, avoided having people relive unpleasant experiences unnecessarily, and made sure the investigation process was not compromised by being over-stretched.

In 2020, a total of 22 cases were reported and logged as safeguarding cases by Islamic Relief Worldwide, 12 of which were from employees reporting safeguarding concerns related to other colleagues. Of the investigations which concluded this year, we took formal HR action against four individuals, including dismissal in one instance. The people we serve reported 10 cases of harm relating to third parties (including family members) unconnected to Islamic Relief Worldwide; and one against Islamic Relief Worldwide, which, upon investigation, was found to be a malicious, unfounded accusation. In each case, we ensured the appropriate authorities and/or support systems were involved or made available. We also provided support and health intervention to survivors and their families, where we were permitted to do so.

DATA PROTECTION COMPLIANCE AND GDPR

General Data Protection Regulation (GDPR) has been embedded into all of our fundraising practices and all staff training has been completed. GDPR compliance is a key consideration at the planning stages of all fundraising and marketing activities.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

COVID-19 PANDEMIC

2020 saw the full implications of a worldwide pandemic caused by Covid-19. This had far-reaching implications for our operational methodology across our global offices; whilst also requiring us to prioritise responding to the significant and urgent need for assistance. Both financial and personnel resource had to be re-deployed to adapt to the prevailing situation. A combination of financial austerity and prioritisation safeguarded Islamic Relief’s financial position in 2020. However, the full impact of Covid-19 creates a persisting risk for 2021.

We maintain a Covid response committee, chaired by the CEO. Mitigation plans put in place by the organisation continue. They include a move to homeworking, a precautionary reduction of spending until the full economic impact of the pandemic becomes clearer, and securing financial support offered by the UK government where appropriate.

A move to virtual events and other innovative forms of fundraising has secured Islamic Relief Worldwide’s community donor income, but this remains an uncertain economic environment as the full implications of Covid-19 continue to play out.

STAFF SAFETY AND WELLBEING

Our staff work in many unstable parts of the world, in countries that are caught up in conflict and/or are experiencing natural disasters. Such environments present risks to the safety of our staff. The safety and wellbeing of our employees being of paramount importance, we have a number of mitigating measures in place. These include policies and procedures on health and safety and security. Security training is mandatory for all staff being deployed and we continually monitor the security situation in each country in which we work, ensuring adequate measures are in place to keep our staff as safe as possible.

GOVERNANCE AND REPUTATION BANK DE-RISKING

The banking system is a key component of the charity being able to deliver on its humanitarian and development commitments. If Islamic Relief Worldwide is not able to transfer money securely, legally, reliably and through trusted financial institutions, it simply cannot fulfil its purpose. The obstacles and delays we face when moving funds to provide timely assistance to those in need have a direct impact on people’s lives. We will continue to work alongside civil society groups across the world to set out our concerns regarding the banking and finance sector, as well as inviting government to ensure funds for humanitarian work reach beneficiaries unhindered. Islamic Relief Worldwide was represented on a UK government convened multi-sector committee looking into the impact of bank derisking on the delivery of aid.

For any charity the conduct of senior leaders is critically important, since trust and reputation are hard won and easily lost. In 2020 it was discovered that the past behaviour of two serving Islamic Relief Worldwide Trustees and one Director, in relation to social media posts from the 2013-15 period, fell short of the high standards expected in the Charity’s Code of Conduct and risked undermining the organisation’s reputation. The views they expressed do not represent or reflect our values, and decisive action was taken requiring all three individuals to resign immediately.

The circumstances and our response were considered in a review by the Charity Commission, and it declared itself satisfied with Islamic Relief Worldwide’s “swift action”, which included action taken to make the vetting of senior leaders more rigorous. The action taken by us included setting up an Independent Commission to examine our governance, headed by Dominic Grieve QC (former UK Attorney General) and assisted by Sir Clive Jones (former Chair of the Disasters Emergency Committee).

We feel uniquely placed to inform these discussions because of our experiences as a Muslim international non-governmental organisation, and are encouraged by the recognition at governmental level of the need to act. We are grateful for the extremely strong relationships we have with our current financial service providers.

This commission concluded that Islamic Relief Worldwide was a “highly effective” charity and working exclusively under its humanitarian principles. The Independent Commission made 19 recommendations to further strengthen our governance and other areas, and its full report is available on our website.

CYBER SECURITY

With increasing use of technology, cyber threats continue to pose a significant risk to the confidentiality, integrity and availability of Islamic Relief information systems and data. This can breach compliance and compromise the right to personal privacy for our staff, supporters and the communities we serve. We continue to work with our technology suppliers and cyber security specialists to ensure risks are managed through proactive security event monitoring, threat prevention and remediation, and cyber security awareness training for staff. Regular coordination with peer organisations to share sector relevant best practice is also a key part of our commitment to protecting our information resources. As an organisation entrusted to manage payments from collection to dispersion, we maintain validation of our compliance with the Payment Card Industry Data Security Standard (PCI-DSS). To meet evolving threats, we will continue to invest in, and build, our information security capacity and assurance capabilities in 2021 and beyond.

The Board of Trustees publicly committed to implementing all the recommendations of both the Charity Commission and the Independent Commission. A number of the recommendations have already been put in place. We have updated our code of conduct, developed and rolled out an extensive Personal Social Media Policy for staff and trustees, and used specialist external vetting to rescreen over 100 leaders across the Islamic Relief global family.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

FINANCIAL REVIEW

The Covid-19 pandemic affected most of humanity and wreaked economic havoc across the globe. Given the unprecedented circumstances, we would like to pay tribute to our supporters whose donations surpassed even the record amount we received in 2019.

Government restrictions around the world due to the pandemic and our regard for the health and safety of our staff and beneficiaries led to a slowdown in programme implementation. Accordingly, our charitable expenditure was only slightly above the previous year. This, coupled with the fact that a significant amount of income was received towards the end of the year, has resulted in an unusually large surplus of £19.5m in 2020 (2019: £3.0m).

The surplus has been added to our Restricted, Unrestricted and Endowment Funds and carried forward for expenditure in future years. The increase in these funds is reflected in the high levels of the organisation’s bank balances. Comprehensive records are maintained in order to ensure that the carried forward funds continue to be spent in accordance with the donors’ wishes.

INCOME AND FUNDRAISING

In total the charity’s income increased by 13.7 per cent to £148.9m (2019: £131m). This was driven by a significant increase in voluntary donations particularly in funds received from UK donors and from Islamic Relief members, most notably Islamic Relief USA. Despite no in-kind donations being received in 2020; non-Middle East institutional income was marginally ahead of last year whilst funding from the Middle East institutions continued to decline.

Voluntary donations, which are made up of regular giving, campaigns, appeal income and income from Islamic Relief members, jumped to £133.2m (2019: £113.5m). The major

constituent of voluntary donations is income from Islamic Relief members which went up 11.2 per cent to £90.7m (2019: £81.5m).

Funding from each of the Islamic Relief members either stayed at a comparable level to that received in 2019 or registered an increase. However, arguably the most notable increase in donations was that from individuals in the UK where income went up by 35.9 per cent to £36.3m (2019: £26.7m). As in 2019, the Disasters Emergency Committee (DEC) launched only one campaign in 2020, the Coronavirus Appeal, and accordingly funding through the organisation remained steady

at £1.0m (2019: £1.2m). Income from international fundraising grew considerably; up 21.9 per cent from the figure of £4.1m achieved in 2019 to £5.0m in 2020.

Unfortunately we received no in-kind donations in the year (2019: £2.1m). Despite this; total institutional income fell only slightly to £12.5m (2019: £13.7m). Within this figure income from non-Middle Eastern institutions increased marginally to £10.8m from £10.6m, helped by £2.9m of funding from UN bodies (2019: £1.7m), whilst income from Middle Eastern institutions fell to £1.7m from £3.1m.

Total resources

After total resources expended of £129.4m (£128.0m in 2019), reserves stood at:

Reserve	Amount
Restricted	£39.5m (2019: £23.7m)
General	£12.4m (2019: £9.4m)
Endowment	£8.0m (2019: £7.4m)
Total	£59.9m (2019: £40.5m)

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

CHARITABLE EXPENDITURE

As well as being a humanitarian disaster itself the Covid-19 pandemic aggravated many of the issues in fragile states around the globe. It pushed most other crises out of the headlines and placed serious hurdles against the delivery of humanitarian and development programmes. Throughout the period Islamic Relief Worldwide continued to bring humanitarian relief, disaster risk reduction, healthcare, education, water and sanitation and livelihoods to wherever needed. The charity championed the rights of those suffering the most, empowering them to speak out and campaigning for positive change. We carried out all this work whilst ensuring the safety of staff and those we serve, in the face of the pandemic and, in fragile states, other dangers too.

Total charitable expenditure increased slightly in the year to £115.4m, a record figure, ahead of the £113.2m achieved in 2019. The marginally higher expenditure, matched with a greater increase in income, has generated a surplus that has been carried over to be spent on charitable activities as swiftly and effectively as possible in following years.

Given the backdrop of the Covid-19 pandemic much of the increase in total charitable expenditure is down to access to healthcare and water programmes where spending increased by 23.1 per cent to £14.4m, up from 2019’s figure of £11.7m.

Our work to reduce the impact of conflicts and natural disasters continued to account for the greatest proportion of charitable expenditure. Although the expenditure on such humanitarian work fell to £58.7m (2019: £60.2m), the figure still represented more than half of all charitable spend (2020: 50.9 per cent, 2019: 53.2 per cent).

Expenditure on caring for orphans and vulnerable children slightly increased to £27.1m (2019: £26.4m) and continued to account for nearly a quarter of all programme expenditure. Spending on sustainable livelihoods has grown by 4.7 per cent to £9.0m (2019: £8.6m). Expenditure on programmes supporting education held steady at £4.2m whilst expenditure on campaigning for change remained at £1.9m.

The tragedies in Syria and Yemen continued unabated and meant that the Middle East remained a geographical focus for the charity’s work. Our charitable expenditure in the region remained at £42.7m and accounted for 37.0 per cent of all charitable expenditure (2019: 37.8 per cent).

Expenditure in the Asia region remained consistent at £26.2m (2019: £26.7m) and continued to account for almost a quarter of charitable spend (2020: 22.7 percent, 2019: 23.6 per cent), particularly due to the ongoing humanitarian situation in Myanmar and the consequent effects in neighbouring Bangladesh.

In both east and west Africa charitable expenditure fell again this year, though marginally. Expenditure in east Africa at £17.9m (2019: £18.6m) represented 15.5 per cent of total expenditure (2019: 16.5 per cent). West Africa continues to be a region sorely neglected by the donor community - our own charitable expenditure there decreased slightly to £15.5m (2019: £15.9m) representing 13.5 per cent of total expenditure (2019: 14.1 per cent).

Islamic Relief Worldwide’s

programmes in Europe are mainly run in the Balkan countries and expenditure increased to £13.0m (2019: £9.0m) and represented 11.2 per cent of our total expenditure (2019: 8.0 per cent).

All of the expenditure detailed above has, as always, been in accordance with donors’ wishes both in terms of region and sector.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

TIC INTERNATIONAL LIMITED

TIC International Ltd (TIC) is a wholly owned trading subsidiary of Islamic Relief Worldwide. The company has two divisions; a clothes recycling business and a network of charity shops. TIC undertakes the valuable environmental and economic service of recycling items that might otherwise end up in landfill and making them available to its customers at affordable prices. In 2020, even under the limitations placed on the operations due to the Covid-19 pandemic, 1,387 tons of unwanted clothing was processed for re-sale. All the profits generated by the company are donated to Islamic Relief Worldwide, a fact which serves to further enhance TIC’s laudable work. In 2020 £241,285 of prior year taxable profits were donated to Islamic Relief Worldwide (2019: £144,181).

The Covid-19 pandemic greatly impacted both divisions of the company. TIC followed all government directives and advice in this regard throughout the year; the clothes recycling factory and the charity shops operating only when allowed to do so. Accordingly both stayed closed for a good portion of the year resulting in a substantial loss of revenue.

In addition the company made its recycling factory and its shops as safe as possible against the coronavirus for both its staff and customers but this added to the costs of operating.

Due to the operational interruptions caused by the Covid-19 pandemic total income fell markedly down to £2.8m from the £3.4m achieved in 2019. Total income consists of £1.3m turnover from clothes recycling (2019: £1.9m), shop income of £0.8m (2019: £1.5m) and 0.7m of grant income including 0.5m of furlough payments received in the year (2019:nil).

There appears to be quite a ‘pent up’ demand for the factory’s output and at the shops. In view of this the company is optimistic that great strides will be made in 2021 to put TIC back on the path of growing profits and improving profitability. Key to this will be the various initiatives that were planned for 2020 but will now be implemented in 2021.

The company is grateful to its staff for their forbearance through these very uncertain times and looks forward to becoming fully operational in the second half of 2021 and welcoming back its generous donors and loyal customers.

INTERNATIONAL WAQF FUND

International Waqf Fund (IWF) is a subsidiary of Islamic Relief Worldwide (IRW), which undertakes waqf (Islamic endowment) activities. IRW transferred its waqf activities to IWF with effect from 1st January 2019. In 2020 IWF continued to forge a distinct identity as a charity specialising in waqf. IWF aims to expand the donor base beyond IRW’s traditional supporters. Although the charity’s efforts were greatly hampered by the effects of the Covid 19 pandemic, total income increased to £728,100 (2019: £698,295), with much of this increase accounted for by the increase in endowment income from £295,504 to £321,427.

As a result of the uncertain economic climate caused by the Covid 19 pandemic the Trustees decided not to make any additional investments during the year. Accordingly, the endowment donations were added to the previous year’s donations and the Endowment Fund reached £616,931 at the year-end (2019: £295,504). With expenditure slightly ahead of unrestricted income; the Unrestricted Fund dipped to £75,719 (2019: £77,746).

We are very grateful to our supporters for their trust and generosity at a time when the pandemic affected us all emotionally, physically and economically.

The company is grateful to the government and local authorities for the help they extended through this difficult time in the form of “furlough” payments and grants. In total these amounted to £744,235 and enabled TIC to generate a profit of £49,124 (2019: £217,692) with both divisions staying in surplus in an unprecedented year.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

RESERVES

The total group reserves increased by 47.9 per cent to stand at £59.9m (2019: £40.5m) as at 31 December 2020. Reserves consist of endowments, restricted reserves and general reserves.

Restricted reserves represent donations and grants for specific projects that are unspent at the balance sheet date and which will be spent on the specified programmes in the coming financial years. The surplus of restricted income over expenditure drove the £15.8m increase in such reserves to £39.4m (2019: £23.7m).

General reserves (also known as unrestricted reserves) are not restricted to specific projects and are maintained to ensure that the delivery of our vital programmes is not disrupted by unforeseen circumstances, such as a fall in income or rise in expenditure. The level of general funds increased by 31.6 per cent to £12.4m (2019: £9.4m) due to increased unrestricted income coupled with a tight control of unrestricted expenditure.

Our current endowments are invested in UK property. Returns from these investments are used for humanitarian and development work as specified by the donors to this fund. The endowment fund grew to £8.0m (2019: £7.4m) due to fresh donations and the reinvestment of a permissible portion of investment returns.

The movement in reserves, compared over the last three years, is summarised below:

	Dec 2018	31 Dec 2019	31 Dec 2020	2019/2020
				change
Reserve	£’000	£’000	£’000	%
Unrestricted	8,005	9,394	12,362	31.6%
Restricted	22,502	23,690	39,433	66.5%
Endowments	7,001	7,398	8,040	8.7%
Total	37,508	40,482	59,835	47.8%

Islamic Relief Worldwide has a policy that sets the level of general reserves such that it meets our operating expenses in the event of a sudden drop in income or the incurring of unexpected expenditure. This policy is regularly reviewed, assessing risks and reflecting on changes in factors such as investment, income and also our

financial obligations and commitments. Such a review was undertaken in 2020 and the current target level of reserves of five months of the core operational budget was deemed to be sufficient at the time. These funds are to be held in current and medium-term cash forms. The disruptive and wide ranging effects of the Covid-19 pandemic in 2020

highlight the value in maintaining a generous level of general reserves.

At the year end general reserves stood at £12.4m, representing eight months’ operational budget and comfortably above the target level as determined in 2020.

GOING CONCERN

In view of the financial performance, the reserves position and the level of cash at bank and in hand as at the balance sheet date, the Board of Trustees has a reasonable expectation that Islamic Relief Worldwide will have the resources to continue in operational existence for the foreseeable future. The Trustees believe there are no material uncertainties that call into doubt our ability to continue as a going concern. The annual financial statements have

therefore been prepared on the basis that the charity is a going concern.

This Trustees’ Annual and Strategic Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Trustees on 11 July 2021, including approving in their capacity as Directors, the Trustees’ Strategic Report and Directors' Report contained therein, and is signed as authorised on its behalf by:

Dr Ihab M. H. Saad

Chair of the Board of Trustees, Islamic Relief Worldwide

16 July 2021

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF ISLAMIC RELIEF WORLDWIDE

OPINION

We have audited the financial statements of Islamic Relief Worldwide (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020, which comprise the Group and Parent Charitable Company Statements of Financial Activities and Income and Expenditure Account, the Group and Charity Balance Sheets, the Group Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 December 2020 and of the group’s and the parent charitable company’s incoming resources and application of resources, including the group’s and the parent income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

BASIS FOR OPINION

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. 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 group and parent 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

We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent charitable company and group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based

on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the parent charitable company or group to cease to continue as a going concern.

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the parent charitable company’s and group’s business model including effects arising from macro-economic uncertainties such as Brexit and Covid-19, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the parent charitable company’s and group’s financial resources or ability to continue operations over the going concern period.

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 the parent charitable company’s and group’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.

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.

The responsibilities of the trustees with respect to going concern are described in the ‘Responsibilities of trustees for the financial statements’ section of this report.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

OTHER INFORMATION

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTER ON WHICH WE ARE REQUIRED TO REPORT UNDER THE COMPANIES ACT 2006

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report or the Directors’ Report included in the Annual Report.

OPINION ON OTHER MATTERS RESPONSIBILITIES OF PRESCRIBED BY THE TRUSTEES FOR THE COMPANIES ACT 2006 FINANCIAL STATEMENTS

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

As explained more fully in the Executive Management Team and Trustees’ Responsibilities set out on page 60, 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.

the information given in the Strategic Report and the Directors’ Report, prepared for the purposes of company law, included in the Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
the Strategic Report and the Directors’ Report included in the Annual Report have been prepared in accordance with applicable legal requirements.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

proper and adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company’s 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.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

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.

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

USE OF OUR REPORT

This report is made solely to the charitable company’s members and trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006, Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and 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 and trustees 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 its members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

· We obtained an understanding of the legal and regulatory frameworks that are applicable to the group through our general not for profit and charity sector experience, discussions with management and the internal legal counsel. We determined that the following laws and regulations were most significant: Charities SORP 2019, FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Act 2006 (as amended), Companies Act 2006, Data Protection Act 2018 and The Charities (Protection and Social Investment) Act 2016.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

We enquired of management concerning the group’s policies and procedures relating to:
the identification, evaluation and compliance with laws and regulations;
the detection and response to the risk of fraud; and
the establishment of internal controls to mitigate risks related to fraud or noncompliance with laws and regulations.
We enquired of management whether they were aware of any instances of non-compliance with laws and regulations and corroborated the results of our enquiries to relevant supporting documentation.
We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included:
identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
challenging assumptions and judgements made by

management in its significant accounting estimates;

identifying and testing journal entries, in particular manual journal entries;
The assessment of the
appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation;
knowledge of the industry in which the client operates; and
understanding of the legal and regulatory requirements specific to the entity including, the provisions of the applicable legislation, the regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules and the applicable statutory provision.
The team communications in respect of potential noncompliance with laws and regulations and fraud included the potential for fraud in revenue recognition, improper use of

charitable funds and serious incident reports submitted to the Charities Commission in the period; and

In assessing the potential risks of material misstatement, we obtained an understanding of:
the group’s operations, including the nature of its revenue sources to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risk of material misstatement; and
the group’s control environment, including:
- management’s knowledge of relevant laws and regulations and how the group is complying with those laws and regulations;
- the adequacy of procedures for authorisation of transactions; and
- procedures to ensure that possible breaches of law and regulations are appropriately resolved.

William Devitt

Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants, Birmingham 5 August 2021

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 2020

Group statement of financial activities and income and expenditure account for the year ended 31 December 2020

	Unrestricted	Restricted	Endowments	Total	Total	Notes
	Funds	Funds	Funds	2020	2019
	(£m)	(£m)	(£m)	(£m)	(£m)
Income and endowments from:
Donations and legacies	16.0	116.1	1.0	133.1	113.5	2
Other trading activities	2.8	-	-	2.8	3.4	3
Investments	-	-	0.5	0.5	0.5	4
Charitable activities	-	12.5	-	12.5	13.6	5a,b
Total	18.8	128.6	1.5	148.9	131.0

Expenditure on:
Raising funds:
Costs of generating	-	10.7	-	10.7	11.2	10a
voluntary income
Fundraising trading: cost of	2.8	-	-	2.8	3.2	10a
goods sold and other cost
Investment management cost	-	-	0.5	0.5	0.4	10a
Charitable activities	13.3	102.1	-	115.4	113.2	10a
Total	16.1	112.8	0.5	129.4	128.0
Net income (expenditure)	2.7	15.8	1.0	19.5	3.0
Transfers between funds	0.4	-	(0.4)	-	-	26
Subsidiary funds brought	(0.1)	-	-	(0.1)	-
forward on consolidation
Net movement on funds	3.0	15.8	0.6	19.4	3.0
Reconciliation of funds:
Total funds brought forward	9.4	23.7	7.4	40.5	37.5
Total funds carried forward	12.4	39.5	8.0	59.9	40.5

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

Parent charitable company statement of financial activities and income and expenditure account

	Unrestricted	Restricted	Endowments	Total	Total	Notes
	Funds	Funds	Funds	2020	2019
	(£m)	(£m)	(£m)	(£m)	(£m)
Income and endowments from:
Donations and legacies	16.0	116.1	0.0	132.1	113.1	2
Investments	-	-	0.5	0.5	0.5	4
Charitable activities	-	12.5	-	12.5	13.6	5a,b
Total	16.0	128.6	0.5	145.1	127.2

Expenditure on:
Raising funds:
Costs of generating	-	10.7	-	10.7	11.2	10a
voluntary income
Investment management cost	-	-	0.1	0.1	0.1	10a
Charitable activities	13.3	102.1	-	115.4	113.2	10a
Total	13.3	112.8	0.1	126.2	124.5
Net income (expenditure)	2.7	15.8	0.4	18.9	2.7
Transfers between funds	0.4	-	(0.4)	-	-	26
Subsidiary funds brought	(0.1)	-	-	(0.1)	-
forward on consolidation
Net movement on funds	3.0	15.8	0.0	18.8	2.7
Reconciliation of funds:
Total funds brought forward	9.2	23.7	7.3	40.2	37.5
Total funds carried forward	12.2	39.5	7.3	59.0	40.2

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

Group and charity balance sheets as at 31 December 2020

	2020 total funds	2020 total funds	2019 total funds	2019 total funds	Notes
	Group	Charity	Group	Charity
	(£m)	(£m)	(£m)	(£m)
Fixed assets
Intangible assets	0.0	0.0	0.0	0.0	13
Tangible assets	9.6	9.4	6.2	6.0	14,15
Investments	0.2	1.0	0.2	1.0	16
Total fxed assets	9.8	10.4	6.4	7.0

Current assets
Stocks and work in progress	0.2	-	0.2	-	17
Debtors due within one year	7.0	6.4	13.7	13.2	18
Cash at bank and in hand	71.0	70.7	37.0	36.5
Total current assets	78.2	77.1	50.9	49.7

Liabilities
Creditors: amounts falling due
within one year	24.6	25.0	13.3	13.2	19
Net current assets	53.6	52.1	37.6	36.5
Total assets less current liabilities	63.4	62.5	44.0	43.5
Creditors: amounts falling due after	3.5	3.5	3.5	3.5	19
more than one year
Total assets less total liabilities	59.9	59.0	40.5	40.0

Total funds
Unrestricted funds general	12.4	11.6	9.4	8.9	24
Restricted income funds	39.5	39.4	23.7	23.7	25
Endowment funds	8.0	8.0	7.4	7.4	26
Total funds	59.9	59.0	40.5	40.0

The financial statements on pages 74 to 77 were approved by the board and signed on its behalf by

Haroun Atallah

Member of the Board of Trustees for Islamic Relief Worldwide 16 July 2021

The notes to the accounts on pages 78 to 99 form part of these financial statements.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

Group cash flow statement for the year ended 31 December 2020

	2020	2019
	(£m)	(£m)
Reconciliation of net income/(expenditure) to net cash fow
from operating activities
Net income/(expenditure) for the reporting period as per the statement
of fnancial activities (excluding cash fow from endowments)	18.8	2.6
Adjustments for:
Depreciation	0.4	0.4
Amortisation	0.0	0.0
(Gains)/losses on investments	0.0	(0.4)
Decrease/(Increase) in stocks	0.0	(0.1)
Decrease/(Increase) in debtors	6.7	(2.6)
(Decrease)/Increase in creditors	11.3	6.0
Loss/(Gains) on foreign exchange	(2.7)	0.5
Net cash provided by (used in) operating activities	34.5	6.4

Cash fows from investing activities
Purchase of property, plant and equipment	(3.8)	(0.7)
Proceeds from the sale of property, plant and equipment	0.0	1.0
Net cash provided by (used in) investing activities	(3.8)	0.3

Cash fows from fnancing activities
Endowment (waqf)	0.6	0.4
Net cash provided by (used in) fnancing activities	0.6	0.4

Net increase/(decrease) in cash and cash equivalents	31.3	7.1
Cash and cash equivalents at the beginning of the reporting period	37.0	30.4
Change in cash and cash equivalents due to exchange rate movements	2.7	(0.5)
Cash and cash equivalents at the end of the reporting period	71.0	37.0

Consisting of:
Cash at bank and in hand	71.0	37.0

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

Company status

Islamic Relief Worldwide is a charitable company limited by guarantee, without share capital and governed by its Memorandum and Articles originally dated 14 March 1989 and amended as a Memorandum of Association on 9 August 2010 and the Objects amended on 16 March 2020. The company was registered as a charity with the Charity Commission on 6 April 1989. The Principal Address and Registered Office is 19 Rea Street South, Birmingham, B5 6LB. Islamic Relief Worldwide is considered to be a public benefit entity.

1. Principal accounting policies

a. Basis of preparation

The accounts (financial statements) have been prepared in accordance with the Charities SORP 2019 FRS 102 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended 2014).

b. Going concern

The Trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Financial Review. Assessments for Going Concern include long term cash flow forecasts and scenario planning.

c. Consolidation and group financial statements

The group financial statements consolidate those of Islamic Relief Worldwide, its trading subsidiary TIC International Limited, registered in England and Wales (company registration number: 2796175, 100 per cent shareholding) and the charity International Waqf Fund, a limited company by guarantee (company

registration number: 8612172,

registered charity number: 1162805). The results of TIC International Limited and International Waqf Fund have been incorporated on a line-by-line basis, in accordance with current legislation.

Islamic Relief Worldwide also controls Islamic Relief UK (company registration number: 5483053). It is registered in England and Wales and during the year the company remained dormant.

Note 7 gives the full details of the income and expenditure of the trading subsidiaries.

d. Fund accounting

Unrestricted funds: All donations are considered unrestricted unless specifically stated by the donor. Unrestricted funds comprise the accumulated surplus or deficit on the statement of financial activities which are available for use at the discretion of the trustees of Islamic Relief Worldwide in furtherance of the objectives of the charity.

Restricted funds: These are assigned by the donor, or the terms of the appeal, specified by a particular country or project. The donation and income deriving from them will be used in accordance with the specific purposes.

Endowment (waqf) funds: These are funds that have been given to Islamic Relief Worldwide subject to the restriction that they are to be held as capital or spent on a long-term charitable asset. Waqf is employed to generate a return while the original investment remains intact. Waqf returns are used to cater for long-term projects. Waqf is the Islamic equivalent of endowments.

e. Incoming resources and investment income

Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received and that the amount can be measured reliably.

Donations: This comprises all incoming resources from donations and income from fundraising partners on the basis of that which is remitted to Islamic Relief Worldwide in the UK.

Charitable income: Where related to performance and specific deliverables these are accounted for as the charity earns the right to consideration by its performance.

Other trading activities: This comprises income generated by TIC International Limited from its trading activities, its charity shops and the sale of merchandise.

Investment income: This comprises income generated by Waqf investment and rents receivable Income generated from Waqf forms part of the endowment funds.

f. Resources expended

All expenditure is accounted for on an accruals basis and is recognised where there is a legal or constructive obligation to pay. Expenditure has been classified under headings that aggregate all costs related to that category.

Costs of generating funds: These are costs incurred in attracting voluntary income and those as stated below under the headings ‘Costs of generating voluntary income’ and ‘Fundraising trading’.

Costs of generating voluntary income: The costs incurred in seeking voluntary contributions.

Fundraising trading: This comprises the group’s trading activities, namely the costs associated with the trading activities of TIC International Limited.

Charitable activities: These are costs associated with the provision of humanitarian relief and development programmes as elaborated on in the trustees’ report section, ‘Our global reach.’ These include both the direct costs and support costs relating to these activities.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

Governance costs: These are costs associated with the governance arrangements of Islamic Relief Worldwide. Included within this category are strategic costs as opposed to the day-to-day management of Islamic Relief Worldwide’s activities.

Support costs: Support costs for a single activity are allocated directly to that activity. Where support costs relate to several activities, support costs have been allocated to each of the activities (stated in Note 10) on the basis of the number of direct staff supported during the period in the relevant activity. Governance support costs are allocated on the basis of support activities provided on clearly interpreted governance matters.

Investment management cost: This incorporates costs related to the administration of waqf and costs relating to the promotion of the concept of waqf from unrestricted funds; therefore, this element is not charged to capital.

g. Operating leases

Rentals paid under operating leases are charged to income as incurred.

h. Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate ruling at the balance sheet date, and the gains or losses are included in the income and expenditure account. Foreign exchange gains and losses incurred in respect of humanitarian projects overseas are included in the charitable activities expenditure.

The company’s functional and presentational currency is GBP.

i. Fixed assets and depreciation

Except for items costing below £500, which are expensed on acquisition, all expenditure of a capital nature is capitalised.

Depreciation is calculated to write off the cost of tangible fixed assets, less their residual values, over their expected useful lives using the straightline basis.

The expected useful lives of the assets to the business are reassessed periodically in the light of experience.

Freehold buildings over 50 years straight-line basis
Fixtures and fittings over four years straight-line basis
Office equipment over four years straight-line basis
Motor vehicles over five years straight-line basis
Plant and machinery over eight years straight-line basis
Depreciation is not charged on land

j. Intangibles

Intangible assets represent the organisation’s registered trademarks. They are stated at cost, less any impairment loss. The useful life of the trademark is estimated to be 10 years. They are amortised and tested for impairment annually where indicators of impairment are identified.

k. Stocks

Stocks and work in progress are stated at the lower of cost and net realisable value. Net realisable value is based upon estimated selling prices less further costs expected to be incurred for completion and disposal.

l. Investments

Investments consist of unlisted investments, subsidiary undertakings and property. Investments are measured at cost less impairment.

m. Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value.

n. Debtors

Debtors are measured at the settlement amount after any trade discount offered.

o. Creditors and provisions

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

p. Taxation

As a registered charity, the company is exempt from taxation of its income and gains to the extent they fall within the charity exemptions in the Corporation Taxes Act 2010 or Section 256 Taxation of Chargeable Gains Act 1992.

The company is unable to recover Value Added Taxation charged on its purchases which is included in the related expense or asset in the accounts.

q. Volunteers

Islamic Relief Worldwide appreciates the hard work and dedication of its volunteers across the world. Almost 1,000 volunteers engaged in a number of activities including campaigning and domestic programmes. The contribution of volunteers is not recognised in the accounts as it is impractical to value given the absence of a reliable measurement basis.

r. Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates.

Significant judgements: There are no significant judgements having a material effect on the financial statements.

Significant estimates: There are no significant estimates having a material effect on the financial statements.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2. Donations and legacies

	Unrestricted	Restricted	Endowment	Total	Total	Notes
	funds	funds	funds	2020	2019
	£’000	£’000	£’000	£’000	£’000
Donations, appeals and
fundraising events
United Kingdom*	14,741	21,497	76	36,314	26,672
Islamic Relief members	532	90,234	-	90,766	81,513	6
International fundraising**	714	3,381	952	5,047	4,100
Disasters Emergency Committee***	-	1,030	-	1,030	1,183
Total	15,987	116,142	1,028	133,157	113,468

Figure includes:

£1,130,138 of Aid Match funding from the Foreign, Commonwealth and Development Office (formerly Department for International Development) towards an integrated development project in Sudan. The project aims to reduce hunger and vulnerability through the redevelopment of rural villages in Blue Nile and Greater Kordofan, providing water and sanitation, healthcare, education and livelihoods.

Gift Aid tax recovered on donations made by UK taxpayers.

** International fundraising includes countries in the Middle East and emerging markets in which Islamic Relief does not have a permanent presence.

***The Disasters Emergency Committee (DEC) is an umbrella organisation of 14 humanitarian aid agencies, including Islamic Relief, that work together in times of crisis. For further information, visit: www.dec.org.uk

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

3. Other trading activities

	Total	Total
	2020	2019
Trading subsidiaries	£’000	£’000
TIC
Income from charitable shops	718	1,219
Clothes recycling income	2,131	2,219
Subtotal	2,849	3,438

4. Investments

	Total	Total
	2020	2019
	£’000	£’000
Return on waqf	511	479
Total	511	479

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

5a. Charitable income by institution – non Middle East and Emerging Markets

Protecting life	Protecting life	Empowering
	and dignity	communities	Total	Total
	2020	2020	2020	2019
	£’000	£’000	£’000	£’000
Institutions
Islamic Relief Netherlands	1,942	2,038	3,980	3,215
United Nations OCHA	172	1,555	1,727	741
Islamic Relief Belgium	382	752	1,134	1,394
Save the Children	951	70	1,021	498
United Nations Development Programme	8	920	928	769
Care International UK	0	339	339	-
Stichting Zoa	0	275	275	421
World Vision Germany	0	264	264	-
Catholic Agency for Overseas Development	229	0	229	-
United Nations Children Fund (UNICEF)	0	218	218	287
USAID	164	0	164	-
CARE Deutschland (CARE Germany)	126	0	126	132
Charity Commission	0	98	98	-
Danish Refugee Council (DRC)	78	0	78	-
Finn Church Aid	32	36	68	55
UNAIDS	45	5	50	-
Trocaire	46	0	46	107
Catholic Relief Services (CRS)	8	0	8	-
Oxfam	0	6	6	-
Swedish International Development Agency	3	0	3	-
Secours Islamique France	-	-	-	752
Scottish Government International Development Fund	-	-	-	97
Columbia University	-	-	-	33
European Commission	-	-	-	15
Subtotal	4,186	6,576	10,762	8,516
In-kind donations
Globus Relief	-	-	-	2,044
Total	4,186	6,576	10,762	10,560

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

5b. Charitable income by institution – Middle East and Emerging Markets

Protecting life	Protecting life	Empowering
and	dignity	communities	Total	Total
	2020	2020	2020	2019
	£’000	£’000	£’000	£’000
Name
Qatar Charity	665	0	665	565
International Islamic Charitable Organisation Kuwait	381	241	622	185
Sheikh Abdullah Al Nouri Charity – Kuwait	133	38	171	376
Kuwait Zakat House	0	126	126	586
Arab Fund for Economic and Social Development	0	68	68	-
Islamic Development Bank	23	0	23	639
Qawafl for Relief & Development	18	0	18	-
Hufadh Association Charity	17	0	17	-
Qatar Red Crescent	-	-	-	475
Reach Out to Asia – Qatar	-	-	-	139
Organization of Islamic Cooperation Humanitarian Funds	-	-	-	70
Islamic Cultural Centre Panama	-	-	-	15
Subtotal	1,237	473	1,710	3,050

In-kind donations
Islamic Cultural Centre Panama	-	-	-	53
Total in-kind donations	-	-	-	53
Subtotal (including In-kind donations)	1,237	473	1,710	3,103

Total all institutions	5,423	7,049	12,472	13,663

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

6. Donations disclosure by member

	Protecting life	Empowering
	and dignity	communities	Total	Total
	2020	2020	2020	2019
	£’000	£’000	£’000	£’000
Name
Islamic Relief USA	15,138	23,010	38,148	28,998
Islamic Relief Canada	7,533	12,381	19,914	19,583
Islamic Relief Sweden	5,853	5,641	11,494	13,212
Islamic Relief Germany	5,365	4,900	10,265	10,404
Islamic Relief Switzerland	1,480	2,122	3,602	3,154
Islamic Relief South Africa	1,281	1,446	2,727	1,695
Islamic Relief Australia	659	694	1,353	1,633
Islamic Relief Malaysia	463	708	1,171	721
Islamic Relief Mauritius*	409	589	998	1,306
Islamic Relief Ireland	143	222	365	246
Islamic Relief Bosnia and Herzegovina	292	0	292	144
Islamic Relief Spain	50	156	206	234
Islamic Relief Italy	147	46	193	150
Islamic Relief Norway	25	13	38	25
Islamic Relief Singapore	-	-	-	8
Total	38,838	51,928	90,766	81,513

All members are separate legal entities reporting locally in their respective countries. These amounts represent those transmitted to Islamic Relief Worldwide to be applied to Islamic Relief Worldwide projects.

Islamic Relief Mauritius is incorporated as a branch of Islamic Relief Worldwide with local directors appointed to oversee operations, and its transactions and balances are included within the accounts of Islamic Relief Worldwide.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

7. Results from trading subsidiaries

	TIC	International	Total	Tic	International	Total
	International	Waqf	2020	International	Waqf	2019
	Limited	Fund		Limited	Fund
	£'000	£'000	£'000	£'000	£'000	£'000
Subsidiary trading income	2,131	1,012	3,143	2,219	413	2,632
Income from charitable	718	-	718	1,219	-	1,219
shops managed by TIC
International Limited
Total	2,849	1,012	3,861	3,438	413	3,851

Operating and	2,800	408	3,208	3,220	324	3,544
administrative costs
Net proft/(loss) for the year	49	604	653	218	89	307

Amounts gift aided to	241	-	241	144	-	144
Islamic Relief Worldwide
Retained in subsidiary	-	604	604	74	89	163

The assets and liabilities
of the subsidiaries were:
Fixed assets	215	2	217	269	2	271
Current assets	926	651	1,577	1,162	104	1,266
Current liabilities	(173)	(49)	(222)	(127)	(17)	(144)
Total net assets	968	604	1,572	1,304	89	1,393

Aggregate share capital	968	604	1,572	1,304	89	1,393
and reserves

In 2020 a Gift Aid payment of £241,285 (2019: £144,181) was received from TIC International Ltd representing the taxable profits generated by the Company in 2019

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

8. Governance

	Activities undertaken	Activities undertaken
	directly 2020	directly 2019
	£’000	£’000
External audit and statutory accounts	92	92
Legal and consultancy	224	308
Trustee expenses and board meeting costs	29	55
Internal audit	268	315
Total	613	770

9. Trustees’ remuneration

9. Trustees’ remuneration
	2020	2019
	£’000	£’000
Trustee expenses and board meeting costs
Meetings	18	12
Travel	11	42
Telecommunications	0	1
Total	29	55

The number of Trustees claiming expenses	7	6

Apart from expenses, trustees are not remunerated. Neither the trustees, nor any persons connected with them, have received any remuneration, either in the current year or the prior year.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

10a. Total resources expended

	Total support	Activities
	costs	undertaken directly	Total	Total
	2020	2020	2020	2019
	£’000	£’000	£’000	£’000
Costs of generating funds
Fundraising and publicity costs	2,199	7,539	9,738	9,844
Campaigns and events costs:
Protecting life and dignity	80	847	927	1,285
Empowering communities	6	61	67	92
Campaigning for change	1	7	8	11
Islamic Relief Mauritius	-	8	8	9
Total costs of generating voluntary income	2,286	8,462	10,748	11,241
Fundraising trading – subsidiary costs	334	2,466	2,800	3,220
Investment management costs	80	408	488	396
Total	2,700	11,336	14,036	14,857

Cost of charitable activities
Campaigning for change	400	1,503	1,903	1,934
Protecting life and dignity	256	58,477	58,733	60,247
Empowering communities
- Access to healthcare and water	780	13,610	14,390	11,702
- Caring for orphans and children	166	26,988	27,154	26,377
- Supporting education	390	3,859	4,249	4,364
- Sustainable livelihoods	393	8,633	9,026	8,593
Total	2,385	113,070	115,455	113,217

Total resources expended	5,085	124,406	129,491	128,074

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

10b. Support costs

	Costs of	Fundraising	Investment	Cost of	Total	Total
	generating	trading	management	charitable	costs	costs
voluntary income		subsidiary costs	costs	activities	2020	2019
	£’000	£’000	£’000	£’000	£’000	£’000
Costs of generating funds
Subsidiary	-	334	-	-	334	387
Management and administration	772	-	28	805	1,605	1,939
Finance	258	-	9	269	536	536
Human resources	239	-	8	250	497	569
Information technology	528	-	18	551	1,097	873
Facilities	489	-	17	510	1,016	1,151
Total	2,286	334	80	2,385	5,085	5,455

Support costs have been allocated to each of the above activities on the basis of the number of direct staff supported during the period in the relevant activity. Governance support costs are allocated on the basis of support activities provided on clearly interpreted governance matters.

11. Net incoming resources

11. Net incoming resources
	2020	2019
	£’000	£’000
This is stated after charging/(crediting):
Auditors’ remuneration including non-audit services	92	92
Depreciation	397	360
Operating leases rental other than plant and machinery	294	269
Exchange (gain)/loss	753	1,338
	2020	2019
	£’000	£’000
Fees payable to company’s auditors for the audit of
the company’s annual accounts	68	68
Fees payable to company’s auditors for the audit of
the company’s subsidiaries pursuant to legislation	11	12
Tax compliance/advisory	13	12
Total fees	92	92

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

12. Staff costs and emoluments

	Group 2020	Group 2019
	£’000	£’000
Gross Salaries	13,036	13,610
Employer’s National Insurance	987	1,035
Employer’s pension	561	599
Total	14,584	15,244
	Group 2020	Group 2019
	Number	Number
Average number of employees
Engaged in raising funds	234	235
Engaged in charitable activities	128	131
Engaged in support activities	103	103
Total	465	469

Employee numbers do not include trustees as they are not paid employees, and also do not include staff employed by Islamic Relief affiliates.

	2020	2019
The number of employees with emoluments between £60,000 to £70,000 per annum	2	0
The number of employees with emoluments between £70,000 to £80,000 per annum	4	4
The number of employees with emoluments between £80,000 to £90,000 per annum	3	3
The number of employees with emoluments between £90,000 to £100,000 per annum	1	0
The number of employees with emoluments between £100,000 to £110,000 per annum	0	1	*

Total redundancies for the year ended 31 December 2020: £38,550 (2019: £8,178)

Key management remuneration

Executive management team remuneration during the year totalled £935,768 (2019: £797,716). Chief Executive Officer remuneration during the year totalled £90,628 (2019: £89,621)

Aggregate pension contribution included in total remuneration figure £55,974 (2019: £42,016).

Chief Executive Officer Aggregate pension contribution included in Chief Executive Officer remuneration figure £7,260 (2019: £8,673).

The individual remunerated in the £100-110k band in this report for 2019, and previously in the £90-100k band in our Annual Report and Accounts for 2018, was a specialist financial consultant engaged on an interim basis who has now left the organisation.

	Gross	Employer's National	Employer's
	Salaries	Insurance	Pension
	£’000	£'000	£'000
Analysis of key management remuneration
2020	785,869	93,925	55,974
2019	686,535	69,165	42,016

The key management personnel consist of the CEO and 8 executive directors in 2019 The key management personnel consist of the CEO and 9 executive directors in 2020

**There were no Other Benefits received by key management and no salary for any individual exceeded £100,000 in 2020.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

13. Intangible assets: Group and Charity

	2020
Group trademarks	£’000
Cost
At 1 January 2020	188
At 31 December 2020	188
Accumulated amortisation
At 1 January 2020	(175)
Charge for the year	(4)
At 31 December 2020	(179)
Net book value
At 31 December 2020	9
At 31 December 2019	13

Trademarks are depreciated over their economic life of 10 years.

14. Group tangible assets

	Freehold land &	Plant and	Fixtures, fttings and	Motor
	buildings	machinery	ofce equipment	vehicles	Total
Group	£’000	£’000	£’000	£’000	£’000
Cost
At 1 January 2020	7,697	612	4,108	239	12,656
Additions	3,616	5	146	13	3,780	*
Disposals	-	-	(23)	(13)	(36)
At 31 December 2020	11,313	617	4,231	239	16,400

Accumulated depreciation
At 1 January 2020	2,056	550	3,613	207	6,426
Charge for the year	156	36	192	13	397
Disposals	-	-	(23)	0	(23)
At 31 December 2020	2,212	586	3,782	220	6,800
Net book value
At 31 December 2020	9,101	31	449	19	9,600
At 31 December 2019	5,641	62	495	32	6,230

Freehold property is valued at historical cost and depreciated. Freehold properties include properties held by Islamic Relief Worldwide for its own use and that of its trading subsidiary.

Within additions for the year, significant additions amount to £3.5m that relates to the redevelopment and refurbishment of Trafalgar house.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

15. Charity tangible assets

	Freehold land and	Fixtures, fttings and	Motor
	buildings	ofce equipment	vehicles	Total
Charity	£’000	£’000	£’000	£’000
Cost
At 1 January 2020	7,477	3,942	124	11,543
Additions	3,616	145	0	3,761
Disposals	-	(23)	-	(23)
At 31 December 2020	11,093	4,064	124	15,281

Accumulated depreciation
At 1 January 2020	1,936	3,529	119	5,584
Charge for the year	142	192	4	338
Disposals	-	(23)	-	(23)
At 31 December 2020	2,078	3,698	123	5,899
Net book value
At 31 December 2020	9,015	366	1	9,382
At 31 December 2019	5,541	413	5	5,959

All assets are used for charitable purposes and there are no inalienable or heritage assets.

16. Investments

16. Investments
	Total Group	Total Charity
	£’000	£’000
As at 1 January 2020	169	1,045
Increase/(decrease) in value	-	-
As at 31 December 2020	169	1,045

The above note includes the following significant investments:

An investment in Islamic Relief Worldwide’s subsidiary TIC International Limited (£860,309), which provides clothes recycling services. TIC International Limited is incorporated in the United Kingdom.

An investment property located in Bradford, UK, which was kindly gifted to Islamic Relief. The property’s value is included in the valuation at the time of the donation (£62,000). The trustees are satisfied that the current value of the Bradford property represents market value.

An investment property located in Arbroath, UK, which was kindly gifted to Islamic Relief. The property’s value is included in the valuation at the time of the donation (£55,000). The trustees are satisfied that the current value of the Arbroath property represents market value.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

17. Stocks and work in progress

	Group	Group
	2020	2019
	£’000	£’000
Donated clothing	185	186

18. Debtors

18. Debtors
	Group	Charity	Group	Charity
	2020	2020	2019	2019
	£’000	£’000	£’000	£’000
Trade debtors	364	37	439	-
Amounts owed from group undertakings	-	47	-	89
Prepayments and accrued income	908	908	794	794
Other debtors	5,691	5,472	12,449	12,273
Total	6,963	6,464	13,682	13,156

Other debtors include a £0.75 million Gift Aid claim and amounts owed by members for costs incurred on their behalf for operational matters.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

19. Creditors

	Group	Charity	Group	Charity
	2020	2020	2019	2019
	£’000	£’000	£’000	£’000
Creditors: amounts falling due within one year
Trade creditors	1,095	989	1,496	1,352
Amounts owed to group undertakings	-	645	-	-
Accruals and deferred income*	18,128	18,128	2,500	2,541
Tax and social security	261	230	254	230
Other creditors**	5,038	4,953	8,998	8,982
Unpaid pension contributions	82	82	78	78
Total	24,604	25,027	13,326	13,183

Creditors: amounts falling due after more than	one year
Bank loan > 1 year ***	3,500	3,500	3,500	3,500
	Balance as at			Balance as at 31
	1 January 2020	Deferred	Released	December 2020
	£’000	£’000	£’000	£’000
Deferred income
Islamic Relief members	1,440	17,732	(1,440)	17,732
International fundraising	149	308	(149)	308
Total	1,589	18,040	(1,589)	18,040

*Deferred income comprises income received in advance that the donor has specified must be used in future accounting periods.

**Other creditors represents amounts due to Islamic Relief independent implementing partners for projects committed to and implemented during 2020.

*** This is a Shariah compliant ‘murabaha’ facility with Al-Rayan Bank, repayment due 29 February 2024. As security for its obligations to the Bank under the terms of the facility, Islamic Relief Worldwide has provided a charge over its offices at 16 Lower Marsh St, London.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

20. Financial instruments

	2020	2019
	£’000	£’000
Financial assets measured at amortised cost
Debtors	6,054	12,888
Cash	71,018	37,028
Total	77,072	49,916

Financial liabilities measured at amortised cost
Creditors	9,652	14,039
Accruals	89	912
Total	9,741	14,951

21. Commitments

	Group	Charity	Group	Charity
	2020	2020	2019	2019
	£’000	£’000	£’000	£’000
Operating leases other than plant and machinery
Less than one year	294	294	269	269
Between 2–5 years	989	989	958	958
More than 5 years	1,311	1,311	1,425	1,425
Total	2,594	2,594	2,652	2,652

As at 31 December 2020, the group had no capital commitments (2019: £nil).

22. Pension costs

The charity operates a group personal pension scheme. As of 2014 it became a statutory requirement for all employees to be made a part of the pension scheme and the charity makes a contribution to this. Employees can opt out of the scheme if they choose.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

23. Analysis of assets and liabilities representing funds

	Unrestricted	Restricted	Endowment
	Funds	Funds	Funds	Total
At 31 December 2020	£’000	£’000	£’000	£’000
Group
Tangible and Intangible fxed assets	1,735	-	8,040	9,775
Current Assets	38,110	40,053	-	78,163
Liabilities	(27,483)	(620)	-	(28,103)
Total	12,362	39,433	8,040	59,835
	Unrestricted	Restricted	Endowment
	Funds	Funds	Funds	Total
At 31 December 2019	£’000	£’000	£’000	£’000
Group
Tangible and intangible fxed assets	-	-	6,412	6,412
Current Assets	25,636	24,274	986	50,896
Liabilities	(16,242)	(584)	-	(16,826)
Total	9,394	23,690	7,398	40,482

24. Unrestricted funds

	General reserve	General reserve
	2020	2019
	£’000	£’000
Balance as at 1 January 2020	9,394	8,005
Net incoming resources	2,703	1,006
Subsidiary Funds bought forward on consolidation	(144)	-
Movement from endowment funds*	409	383
Balance as at 31 December 2020	12,362	9,394

*This is a movement of the returns generated to unrestricted funds for humanitarian projects.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

25. Restricted income funds

	Opening balance	Income	Expenditure	Total 2020	Total 2019
	£’000	£’000	£’000	£’000	£’000
Appeal funds
Protecting life and dignity	8,210	65,119	56,373	16,956	8,210
Caring for orphans and children in need	179	29,073	27,040	2,212	179
Supporting education	2,726	4,020	3,823	2,923	2,726
Providing access to healthcare and water	9,333	17,859	14,151	13,041	9,333
Sustainable livelihoods	3,241	12,543	11,483	4,301	3,241
Total	23,689	128,614	112,870	39,433	23,689

Restricted funds are funds subject to specific trusts, which have been declared by the donors at the time of donation or created through legal process. All restricted funds of Islamic Relief Worldwide have been used to implement specific humanitarian projects in particular areas of the relief stated above.

Zakat funds (annual religious payments by able Muslims to help the poor) have been used to cover shortfalls in zakat-eligible emergency, health, sustainable livelihood and water and sanitation projects implemented in various countries. Further shortfalls were covered using unrestricted funds.

26. Endowment funds

	Balance as	Balance as	Total	Return on	Total	Total	Transfer	Balance	Balance
	at	1 January	incoming	investments	available	resources		as at 31	as at 31
		2020	resources		resources	expended		December	December
								2020	2019
		£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Endowment funds
Protecting life		363	1	0	364	3	19	342	363
and dignity
Empowering		7,036	1,027	511	8,574	486	390	7,698	7,036
communities
Total		7,399	1,028	511	8,938	489	409	8,040	7,399

Waqf funds are permanent endowment funds that are held within the charity to generate further funds. These are currently invested in the properties of Islamic Relief Worldwide.

Waqf investments give a seven per cent (notional and internally allocated) annual return on capital, from which projects are implemented for the purpose of waqf shares. A proportion of the return is also added back to the capital to ensure growth for reinvestment in future years.

In 2020, income from these waqf investments amounting to £510,937 will finance future long-term sustainable humanitarian development projects. Of this, £490,937 has been transferred to unrestricted funds to finance future humanitarian development projects.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

27. Related parties

Some of the Trustees of Islamic Relief Worldwide were also Trustees of the following Islamic Relief members in the period; Islamic Relief Australia, Islamic Relief Canada, Islamic Relief Germany, Islamic Relief Malaysia, Islamic Relief South Africa, Islamic Relief Sweden, Islamic Relief Switzerland and Islamic Relief USA. The income from these related parties in 2020 is given in note 6. The amounts due from these related parties as at 31 December 2020 were as follows - Islamic Relief Australia £478,164, Islamic Relief Canada £1,343,460, Islamic Relief Germany £342,895, Islamic Relief Malaysia £39,846, Islamic Relief South Africa £ 267,776, Islamic Relief Sweden £461,119 and Islamic Relief USA £1,817,865. The amounts due to these related parties as at 31 December 2020 were as follows - Islamic Relief Switzerland £44,903.

In 2020 a Gift Aid payment of £241,285 (2019: £144,181) was received from TIC International Ltd representing the taxable profits generated by the Company in 2019.

28. Analysis of changes in debt

	At the start	Cash-fows	Foreign Exchange	Other non-	At the end
	of the year		movements	cash changes	of the year
	£'000	£'000	£'000	£'000	£'000
Cash	37,028	31,275	2,715	-	71,018
Loans falling due after more than one year	(3,500)	-	-	-	(3,500)
Total	33,528	31,275	2,715	-	67,518

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

29. Statement of financial activities and income and expenditure account comparatives for prior year

	Unrestricted	Restricted	Endowment	Total	Notes
	funds	funds	funds	2019
	£m	£m	£m	£m
Income and endowments from:
Donations and legacies	11.9	100.9	0.7	113.5	2
Other trading activities	3.4	-	-	3.4	3
Investments	-	-	0.5	0.5	4
Charitable activities	0	13.6	-	13.6	5
Total	15.3	114.5	1.2	131.0

Expenditure on:
Raising funds
Costs of generating voluntary income	-	11.2	-	11.2	10a
Fundraising trading: cost of goods sold	3.2	-	-	3.2	10a
and other costs
Investment management cost	-	-	0.4	0.4	10a
Charitable activities	11.1	102.1	-	113.2	10a
Total	14.3	113.3	0.4	128.0

Net income (expenditure)	1.0	1.2	0.8	3.0
Transfers between funds	0.4	-	(0.4)	-	26
Net movement on funds	1.4	1.2	0.4	3.0
Reconciliation of funds:
Total funds brought forward	8.0	22.5	7.0	37.5
Total funds carried forward	9.4	23.7	7.4	40.5

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

30. Prior Period Adjustment

Under new governance rules; in order to be considered part of the “Islamic Relief Family” ie considered part of a network of connected organisations; Partners had to sign up to a Licensing Agreement in order to become “Members”. Last year all but Islamic Relief Belgium & Islamic Relief Netherlands signed the agreement, accordingly they cannot be considered part of the Islamic Relief Family and classified as third party institutions. A prior period adjustment has been effected by management in regard the classification of income received from Islamic Relief Netherlands and Islamic Relief Belgium from "members" to "institutions". The total movement of income between categories is £5.1m in 2020 and £4.6m in the 2019 comparative figures. The net impact on Statement of Financial Activity is nil.

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020 - FINANCIAL STATEMENTS

CORPORATE DIRECTORY

England and Wales charity registration number

328158

Scotland charity registration number

SC042020

Company registration number

02365572

Address of principal office

19 Rea Street South, Birmingham B5 6LB

Board of Trustees

Dr Ihab Mohammad Hamdy Saad Chair of Board of Trustees (22 August 2020)

Mrs Nurhayati Binti Hassan Vice Chair and former Treasurer (appointed 24 May 2021)

Mrs Lamia El Amri Vice Chair (appointed 22 August 2020) and former Chair of the Board of Trustees (resigned 24 May 2021)

Dr Aarif Ahmed Pathan (appointed 16 October 2020)

Mr Haroun Atallah (appointed 7 December 2020)

Dr Muhammad Osman (appointed 5 October 2020)

Dr Nora Shikeen Amath (appointed 22 August 2020)

Dr Almoutaz Tayara (resigned 22 August 2020)

Mr Heshmat Khalifa Ahmed Khalifa (resigned 16July 2020)

Mr Moegamat Tahir Salie (resigned 22 August 2020)

Dr Mohamed Amr Attawia (resigned 22 August 2020)

Company Secretary

Dr Ihab Mohammad Hamdy Saad (appointed 11 June 2021)

Mr Khaleel Desai (resigned 12 May 2021)

Executive management team

Mr Waseem Ahmad Chief Executive Officer (appointed 17 May 2021)

Mr Martin Cottingham Director of External Relations and Advocacy

Mr Adnan Hafiz Interim Director Network and Resources Development Division (appointed 8 October 2020)

Mr Sultan Hussain Interim Director of Finance and Corporate Services

Mr Tufail Hussain Islamic Relief UK Director

Dr Ahmed Nasr Interim Director of International Programmes Division (appointed 17 May 2021)

Dr Hossam Said Managing Director of Humanitarian Academy for Development

Mr Naser Haghamed Chief Executive Officer (resigned 29 January 2021)

Mr Tayeb Abdoun Director of the Network and Resources Development Division (resigned 7 October 2020)

Mr Khaleel Desai Head of Governance (resigned 12 May 2021)

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

Auditors

Grant Thornton UK LLP

The Colmore Building 20 Colmore Circus Birmingham B4 6AT

Bankers

Barclays Bank Plc

One Snow Hill Snow Hill Queensway Birmingham B3 2WN

Solicitors

Stone King LLP

13 Queen Square Bath BA1 2HJ

Squire Patton Boggs LLP

7 Devonshire Square London EC2M 4YH

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

Disclaimer

Whilst we take reasonable efforts to ensure that the information in this publication is accurate and up-to-date at the date of printing, Islamic Relief Worldwide does not make any representations, warranties or guarantees, whether express or implied, in respect of the accuracy, completeness or usefulness of the information. To the fullest extent permitted by applicable law, Islamic Relief Worldwide specifically disclaims any liability for errors, inaccuracies or omissions in this publication and for any loss or damage resulting from its use or your reliance upon it.

Where this publication contains information from third-party sources, this information is provided ‘as is’ and should not be interpreted as any form of approval of its accuracy, completeness or usefulness by Islamic Relief Worldwide.

If this publication is translated in any other language, the English version shall always prevail in case of any discrepancy or inconsistency between the English version and any translation.

The information and contents of this publication and any non-contractual disputes or claims that may arise from it are governed by English law. The exclusive jurisdiction of the courts of England and Wales will apply.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

“Whoever saves a life, saves the whole of mankind” (Qur’an, 5:32)

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2020

Islamic Relief Worldwide 19 Rea Street South Birmingham B5 6LB United Kingdom

Tel: +44 121 605 5555 Fax: +44 121 622 5003

irw@irworldwide.org www.islamic-relief.org

Registered Charity No. 328158 Registered Company No. 02365572

Cover photo: By Majdi Samaan/Islamic Relief Worldwide

© Islamic Relief Worldwide 2021

CONTENTS

MESSAGE FROM THE CHAIR OF TRUSTEES

Assalamu alaykum Peace be with you

Dr Ihab M. H. Saad

TRUSTEES’ STRATEGIC REPORT

MESSAGE FROM THE CHIEF EXECUTIVE

Assalamu alaykum Peace be with you

Waseem Ahmad

Chief Executive Officer, Islamic Relief Worldwide

OUR VISION AND STRATEGY

OUR GLOBAL GOALS

OUR GLOBAL REACH

TOTAL: 13,847,457

OUR INCOME IN 2020

OUR EXPENDITURE IN 2020

HUMANITARIAN

Humanitarian relief in 2020

JANUARY

FEBRUARY

MARCH

LIFE-SAVING AID THROUGHOUT THE PANDEMIC

Promoting good practices and information

Supporting and strengthening healthcare systems

Responding to longer-term and secondary impacts

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DISASTER: Thousands of people flee their homes as fighting intensifies in Ethiopia’s autonomous Tigray region.

RESPONSE: Islamic Relief teams race into action, reaching over 3,000 families with emergency aid including food packs and hygiene kits.

DECEMBER

DEVELOPMENT

RESTORING LIVELIHOODS LOST TO CRISIS IN SYRIA

SUPPORTING YAZIDI AND CHRISTIAN COMMUNITY RESILIENCE

PEACEBUILDING WITH COMMUNITIES

The Triple Nexus approach at the heart of the programme:

YOUTH AND WOMEN’S GROUPS IN PAKISTAN

PEACE COUNCILS IN KENYA

PROGRESS ACHIEVED: “The

PROGRESS ACHIEVED: The work

“I HAVE A ROLE IN BUILDING PEACE”

STRENGTHENING COMMUNITIES AGAINST COVID IMPACTS

PROVIDING SAFE, HIGHQUALITY EDUCATION IN MALI

IMPROVING HEALTH AND WELLBEING IN GAZA

BOOSTING FOOD SECURITY IN SOUTH SUDAN

TREATING MALNOURISHED CHILDREN IN NIGER

POWERING WOMEN’S SELF RELIANCE IN BANGLADESH

TRANSFORMING FUTURES IN MALAWI

SUPPORTING DROUGHTAFFECTED COMMUNITIES IN PAKISTAN

MICROFINANCING SUSTAINABLE DEVELOPMENT

CAMPAIGNS

We mobilised people and funds to support our work and campaign for social justice

16 DAYS OF ACTIVISM ON GENDER-BASED VIOLENCE

“THERE IS HOPE FOR CHANGE”

“WE URGE WOMEN TO SEEK PROTECTION”

“WE NEED SUPPORT AND OPPORTUNITIES”

TACKLING EXPLOITATION

A SAFETY NET FOR REFUGEES

INTERNATIONAL FUNDRAISING

RESPONDING TO THE CLIMATE EMERGENCY

LIFTING SPIRITS AMID THE PANDEMIC

FUNDRAISING AND ACTIVITIES IN THE UK

WE WENT DIGITAL IN 2020

STRONG RELATIONSHIPS FOR TRANSFORMATIVE PROJECTS

WE SUPPORTED VULNERABLE PEOPLE IN THE UK

PARTNERSHIPS

ENSURING ORGANISATIONAL RESILIENCE

STRENGTHENING ISLAMIC RELIEF FOR THE FUTURE

DEEPENING OUR POSITIVE IMPACT

STRIDING FORWARD

EMPOWERING LOCAL OFFICES AND PEOPLE

DEVELOPING TALENT

CARING FOR VULNERABLE CHILDREN