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2022-12-31-accounts

Islamic Relief Worldwide ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT 2022

© Islamic Relief Worldwide 2023

Cover photo: Junaid Saeed / Islamic Relief Pakistan

“The unprecedented floods destroyed everything we had,” says Sher, in the aftermath of the disaster in Pakistan this year.

Islamic Relief gave him materials to rebuild his home in Sardar Abdur Rasheed village, Balochistan. In addition, a cash grant helped meet the household’s other urgent needs.

This publication – including text, photos and design – is subject to copyright unless stated otherwise. 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. 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

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

CONTENTS

CONTENTS
Message from the Chair of Trustees 4
Message from the Chief Executive 5
Our vision and strategy 6
Our global reach 8
2022 in numbers 10
Our income in 2022 12
Our expenditure in 2022 13
Humanitarian 14
Development 28
Campaigns 38
Partnerships 46
Some of our valued partners 54
Structure, governance and management 55
Trustees’ compliance with their statutory duties 58
The Islamic Relief global family 59
Trustees’ responsibilities 60
Principal risks and uncertainties 62
Streamlined energy and carbon reporting requirements (SECR) 64
Financial review 65
Independent auditor’s report to the members of Islamic Relief Worldwide 68
Group statement of fnancial activities and income and expenditure 72
account for the year ended 31 December 2022
Parent charitable company statement of fnancial activities and 73
income and expenditure account for the year ended 31 December 2022
Group and charity balance sheets as at 31 December 2022 74
Group cash fow statement for the year ended 31 December 2022 75
Notes to the fnancial statements 76
Corporate directory 101

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Our global reach
46
8
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Partnerships

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

IN THE NAME OF ALLAH, MOST MERCIFUL, MOST COMPASSIONATE.

MESSAGE FROM THE CHAIR OF TRUSTEES

Assalamu alaykum Peace be with you

My third year chairing the Board of Trustees of Islamic Relief Worldwide has been both challenging and fulfilling. I am extremely proud of what has been achieved by our hard-working staff and volunteers, the resourceful and resilient communities we serve, and those who continue to give so generously to support the cause.

Our global income reached a record £234 million in 2022. This represents a 28 per cent increase on the previous year, and a doubling of our income just 10 years ago.

More importantly, we were able to channel this record income into touching more lives than ever before, reaching an incredible 17.3 million people worldwide this year.

We could not have achieved this unprecedented reach without the extraordinary philanthropy of our donors. I am thankful for their generous and selfless giving against a backdrop of global economic stagnation, rising inflation and escalating cost-of-living pressures. Their continuing support speaks volumes for their passion and compassion, and for the trust they place in us to fulfil our mission.

This Annual Report brings to life the wide-ranging work that Islamic Relief does across Africa, Asia, the Middle East and Eastern Europe, to help those affected by humanitarian crises and to lift communities out of poverty. It is work that requires initiative, innovation and real determination at a time when global hunger is on the increase and climaterelated disasters are becoming more frequent and severe.

In the Horn of Africa, for example, five successive failed rainy seasons have resulted in the worst drought in decades. This has left around 14 million people in Somalia, Ethiopia and Kenya – the three countries worst affected – unsure where their next meal is coming from and in need of humanitarian aid. The war in Ukraine has made the crisis worse, pushing up the price of fuel and staple foods.

Our £3.8 million ($5.2 million) Global Hunger Prevention and Response Programme helped communities in eight African countries to tackle hunger in a multifaceted and integrated way. That meant not only providing food, but also supporting health and nutrition programmes, as well as restoring water sources and investing in livestock health and drought-resistant seeds. We aim to stand by families in the long term, helping them to establish or rebuild sustainable livelihoods.

In a changing world, the Islamic Relief family is changing too. In countries in North America and western Europe where our primary focus has historically been fundraising and awareness raising, our member offices now have significant domestic aid programmes to help those in need on their doorsteps. In the southern hemisphere, where aid delivery has been our historic focus, an increasing number of our country offices are now also fundraising in their own communities to reinforce their work.

It is my privilege to chair a diverse Board of Trustees that is elected by the global membership of the Islamic Relief family in a federated structure. Our nine trustees – five men and four women – come from seven countries across five continents.

In 2023 I am looking forward to the addition of our first publicly recruited independent board members, as part of a commitment to further strengthen our diversity, transparency and wider accountability. We are also launching an exciting new long-term strategy for the organisation that sets out to strengthen not only our humanitarian and development work but also our campaigns for change and the coordination and collaboration we are building across our federation.

With your continuing support, Islamic Relief will continue to do all we can to build a future free from poverty and suffering.

Dr Ihab M. H. Saad

Chair of the Board of Trustees, Islamic Relief Worldwide

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

MESSAGE FROM THE CHIEF EXECUTIVE

Assalamu alaykum Peace be with you

This has been a year of once-in-a-generation and once-ina-lifetime humanitarian crises. Afghanistan has suffered its worst drought for 30 years, and East Africa, its most severe drought this century. Pakistan is still reeling from the worst floods in living memory, while Europe has seen the worst refugee crisis since World War II.

It is testimony to the unfailing generosity of Islamic Relief’s donors, the hard work of our staff and volunteers, bilateral and multilateral donors and other strategic partners that we have been able to rise to these challenges.

In Afghanistan, Pakistan and East Africa alone, over 70 million people needed humanitarian aid in 2022 – more than the entire population of the United Kingdom. Behind these mind-boggling statistics are the heart-breaking stories of individual families, families we are standing beside as they rebuild their lives and livelihoods.

My journey with Islamic Relief began as a local aid worker in my native Pakistan over two decades ago. I witnessed the devastating impact of this year’s floods at first-hand on a visit to some of the areas worst affected. Amid the devastation, I was proud to see the speed and effectiveness of Islamic Relief Pakistan’s response. By the end of the year, we had assisted over 1 million people, raising over £10 million in funds around the world to support our efforts on the ground.

The continuing strength of our institutional funding partnerships has underpinned the strength of our humanitarian response in Pakistan. Among those who directly or indirectly funded our relief efforts in Pakistan were the aid departments of the UK, Canadian and Swedish governments – the Foreign, Commonwealth and Development Office (FCDO), Global Affairs Canada, and Sida. In partnership with UNICEF, we provided clean water to over half a million people. A further partnership with the United Nations Development Programme (UNDP) is set to help us rebuild shattered livelihoods in the coming months.

We also formed a new partnership with UNDP in Afghanistan, delivering a £19m million ($23 million) project that created employment for 158,000 people, supported 1,200 women entrepreneurs and provided 200,000 impoverished and drought-afflicted farmers with much-needed new irrigation infrastructure. The expertise and experience of our Treasury team and our strong relationships with banks have been pivotal in helping us to deliver aid to those who need it most in hard-to-reach places like Afghanistan, while complying with the complexity of international sanctions. In Yemen, we continue to be one of the leading partners of the UN’s World Food Programme (WFP), delivering vital food aid and cash vouchers to nearly 2.4 million people.

What matters is not just the number of people we are assisting, but also the long-term impact of our work and what the communities we serve think of what we are doing. In Syria, for example, we have provided constant support almost since the conflict began in 2011 to displaced people inside the country and refugees in neighbouring Jordan, Iraq, Turkey and Lebanon. Since 1994 we have provided lifechanging microfinance to over 100,000 people worldwide. Since 2017 we have been certified annually to the coveted Core Humanitarian Standard, independently verifying the quality of our aid delivery in the eyes of the communities who receive it.

It is also important that Islamic Relief invests increasingly in advocacy, speaking out on the root causes of poverty and suffering and campaigning for positive change. In 2022 we published research to highlight the impact of climate change on poor communities in Indonesia and Pakistan and advocate for increased and better-targeted climate finance. We marked World Refugee Day by joining the Lutheran World Federation and HIAS in organising Welcoming the Stranger – a major international interfaith conference to promote the vital work faith communities and organisations do in supporting refugees and displaced people. Later in the year, we participated in events in 11 countries as part of the annual UN-led 16 Days of Activism Campaign for the Elimination of Gender-Based Violence.

As this report testifies, the tremendous support we receive from so many people enables Islamic Relief to touch millions of lives worldwide. Jazak’Allah Khair, thank you for your continued support.

Waseem Ahmad

Chief Executive Officer, Islamic Relief Worldwide

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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 current global strategy has four global goals that aim to ensure we respond effectively to humanitarian emergencies, contribute significantly aadvocate for positive social change. These goals are based on four key areas of work we present in this report: humanitarian, development, campaigns and partnerships.

OUR GLOBAL GOALS

Reducing the humanitarian impact of conflicts and natural disasters 1 Empowering communities to emerge from poverty and vulnerability 2 Mobilising people and funds to support our work 3 Strengthening the Islamic Relief federation 4

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Abu Kamal, 45, lives in the countryside outside Idlib, Syria. The country’s prolonged crisis has uprooted the father of four, alongside millions of other people.

“I was working in a factory but I had to leave my work and my village to escape the violent bombing and harsh conditions. I moved near the TurkishSyrian border and lived in a camp there with my children for several years.

“The living conditions were harsh and we were not able to adapt to camp life. After I returned to my village, I found my house had been damaged but I was able to restore some of it. However, there were no jobs.

“Thanks to Allah, Islamic Relief provided us with sheep and fodder. Now I take care of these sheep and we produce milk, cheese and yoghurt. We rely on ourselves to earn a living, whereas in the past we relied on aid and food baskets.”

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

OUR GLOBAL REACH

IN 2022 WE SUPPORTED OVER 17.3 MILLION PEOPLE

COUNTRY

TOTAL

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||| |---|---| |Yemen|3,560,269| |Niger|2,013,734| |Afghanistan|1,239,724| |Pakistan|1,214,985| |Somalia|1,134,739| |Sudan|1,088,452| |Syria|999,392| |Occupied Palestinian Territory (Gaza)|993,710| |Bangladesh|892,202| |Mali|878,934| |Ethiopia|723,424| |Kenya|460,106| |Malawi|333,822| |South Sudan|298,769| |Kosova|141,733| |Jordan|135,267| |North Macedonia|124,179| |United Kingdom|123,194| |Sri Lanka|108,387| |Türkiye|96,735| |The Philippines|87,714| |Lebanon|86,474| |Nepal|84,377| |Indonesia|79,476| |Tunisia|78,450| |Iraq|66,251| |Myanmar|66,119| |South Africa|50,742| |Albania|48,092| |India|39,109| |Bosnia and Herzegovina|32,386| |Russian Federation (Chechnya)|22,002| |Madagascar|9,262| |Spain|5,036| |Italy|1,946| |Moldova|838| |Malaysia|810|

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Number of people reached through global programmes

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||| |---|---| |Humanitarian|9,849,300| |Development|2,834,443| |Advocacy|26,339| |Orphan sponsorship|92,841| |Seasonal|6,407,464| |Grand total|19,210,387|

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The figures in this table are included within the country figures on the map. The grand total in this table (19.2 million) is different to the total number of people reached (17.3 million) because some people have been reached by more than one Islamic Relief intervention. For example, a child enrolled in our orphan sponsorship scheme may also benefit from a development project to build a well in their village.

NUMBER OF PEOPLE 1 - 9999 10,000 - REACHED THROUGH 49,999 OUR PROJECTS IN 2022

50,000 - 99,999

100,000 - 250,000 - 500,000 - 1,000,000 + 249,999 499,999 999,999

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

THE TOP THREE

Yemen Niger Afghanistan 3,560,269 2,013,734 1,239,734

CHECHNYA:

Four hundred children living with disabilities in the Chechen Republic are benefiting from access to speech therapy, sports and counselling.

SOMALILAND:

Nour, 66, is the head of Warcimran village in Togdheer Region, a part of Somaliland ravaged by prolonged drought. Islamic Relief has been digging and repairing water boreholes, trucking water into communities, and supporting families with survival items.

INDONESIA:

“I would like to thank Islamic Relief for helping to rebuild our economy. Now, we have an income to help our families.”

Nursiana is among 26 women now earning living by cultivating honey thanks to an Islamic Relief intervention to help communities struggling in the aftermath of an earthquake and tsunami in 2018.

TOTAL PEOPLE REACHED: 17.3 MILLION

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022 2022 NUMBERS IIL

17.3 MILLION PEOPLE DIRECTLY ASSISTED

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

OUR INCOME

%
29%
19%
16%
13%
6%
6%
4%
2%
2%
1%
1%
1%
>1%
>1%
>1%
>1%
>1%
>1%
>1%
>1%
0m
10m 20m 30m 40m 50m 60m 70m
£
Islamic Relief USA
UK donations (including DFID)
Islamic Relief Canada
Institutions (UN and others)
Islamic Relief Sweden
Islamic Relief Germany
International fundraising
Islamic Relief Switzerland
Trading (charity shops and clothes recycling)
Islamic Relief South Africa
Islamic Relief Australia
Disasters Emergency Committee (DEC)
Islamic Relief Mauritius
Islamic Relief Malaysia
Waqf investment income
Islamic Relief Bosnia and Herzegovina
Islamic Relief Ireland
Islamic Relief Spain
Islamic Relief Italy
Islamic Relief Norway
67.0m
44.2m
37.1m
29.7m
13.8m
13.3m
9.1m
5.5m
3.8m
3.2m
1.8m
1.3m
1.2m
0.8m
0.6m
0.6m
0.5m
0.4m
0.2m
0.1m
OUR TOTAL INCOME:
£234.2 MILLION
WHERE THE MONEY CAME FROM
WHERE THE
MONEY CAME
FROM

Five-year trend: Our income 2018 -2022

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240
210
180
150
120
90
60
30
0
2018 2019 2020 2021 2022
£Millions
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Institutions (UN and others)

Trading (charity shops and clothes recyling)

UK donations (including DEC and DFID/FCDO)

Voluntary income from Islamic Relief partners

Waqf investment income

TOTAL

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

OUR EXPENDITURE

%
57.8%
17.1%
6.2%
5.6%
5.3%
3.1%
1.9%
1.7%
0.8%
0.4%
0.2%
0m 10m 20m 30m 40m 50m 60m 70m 80m 90m 100m 110m 120m
WHERE THE
MONEY WAS
SPENT
Humanitarian
Caring for orphans and children
Raising Funds and Publicity
Healthcare, water, sanitation
and hygiene
livelihoods support
Support costs
Supporting education
Trading Activities
Campaigning for Change
Legal and statutory compliance
(governance)
Investment Management
WHERE THE MONEY WAS SPENT
111.8m
33.0m
11.9m
10.8m
10.3m
6.0m
3.6m
3.2m
1.6m
0.7m
0.4m
OUR TOTAL EXPENDITURE:
£193.3 MILLION

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Five-year trend: Our expenditure 2018 -2022
200
180
160
140
120
100
80
Charitable expenditure
60
Other expenditure
40 (includes fundraising and
trading)
20
TOTAL
0
2018 2019 2020 2021 2022
£Millions
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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

HUMANITARIAN

2022 WAS A YEAR IN WHICH THE EFFECTS OF CLIMATE CHANGE

WERE STARK, WITH MANY COUNTRIES AROUND THE WORLD HIT BY DEVASTATING NATURAL DISASTERS.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

January

Lebanon’s economic crisis continues to deepen, and an astonishing 80 per cent of its population begin the year living below the poverty line. Amid eye watering levels of inflation, the price of essential items has increased by 800 per cent. Many people are out of work, and even the previously comfortably off struggle to make ends meet. Electricity, communications, fuel and medicine are in short supply. To ease the suffering, Islamic Relief provides food packages to struggling families throughout Lebanon, and also helps renovate homes and improve the living conditions of families, including orphaned children.

“The situation is so bad in Lebanon, I have been without work for two years,” says Walid, who lives in Beirut, Lebanon. The father-offive mourns the loss of two daughters, who died when their home’s dilapidated balcony collapsed. He cannot afford to keep his home in a good state of repair, or even to pay for basic essentials. “Life is expensive. We have no electricity, no water, no food.” Islamic Relief has helped Walid and other vulnerable families make essential repairs to their homes.

Disaster: Heavy rainfall in Gaza triggers severe flooding, affecting thousands of people.

Impact: Ponds overflow, water pumps stop working, and sink holes appear in streets and roads. Hundreds of homes are damaged and waterborne diseases threaten thousands of people.

Response: Islamic Relief distributes bedding, winter clothes and hygiene kits; and provides cash transfers to support almost 5,500 vulnerable people affected by the floods.

Flooding in Gaza affects thousands of people.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

February

Ukrainian refugees in Moldova receive food parcels.

A major escalation in conflict in Ukraine begins, taking thousands of lives and destroying vital infrastructure such as hospitals, roads, water and electricity facilities. The violence triggers what will become Europe’s largest refugee crisis since World War II as millions of people flee the country. Calling for an end to the fighting, the global Islamic Relief family provides life-saving humanitarian aid: the £580,355 ($700,000) we give to trusted international partners equips vulnerable families, many fleeing to bordering Moldova, with vital survival items such as food and hygiene kits

The crisis also has a devastating impact around the world: disrupted trade routes make staple foods increasingly scarce and expensive, pushing many more people in the poorest countries into poverty and hunger.

In Bardaqli camp in northern Idlib, Syria, Islamic Relief distributes essential items including blankets, sponges and contraception to displaced people.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

March

In Sana’a governorate, boys collect water from a facility repaired by Islamic Relief as part of our response to the dire and deepening crisis in Yemen.

March marks the seven-year anniversary of the Yemen crisis, which has shattered millions of lives. Hospitals and schools have been bombed and half of the country’s health facilities have shut down. Rising unemployment and the cost of living has pushed food and other essentials beyond the reach of many families: a staggering 17.4 million people face food shortages and half of all children under five years old are malnourished. Millions of people have fled their homes and 21 million people – more than two thirds of the population ––urgently need humanitarian aid.

As one of the biggest partners to the UN World Food Programme (WFP) in Yemen, we give essential food supplies to over 2.3 million vulnerable people this year. We provide access to clean drinking water and distribute food, fuel and blankets during the cold winter months. In addition our Orphan Sponsorship Programme provides reliable financial and education support to thousands of children facing extreme hardship in Yemen.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

“I wish and pray for all women to achieve their dreams”

“I am the local engineer for the project, which will create a flood barrier that is vital to protect the houses in this village from flooding,” explains Sakina, who lives in Bamyan, Afghanistan. The project she is working on is part of a landmark partnership between Islamic Relief and the United Nations Development Programme (UNDP). Together we aim to boost food production, inject cash into the local economy and support female entrepreneurs in some of Afghanistan’s poorest places.

In 2022, almost 23 million Afghans – more than half the population – suffered from critical food and cash shortages. As part of our response to the growing hunger crisis, Islamic Relief launched a landmark partnership with the United Nations Development Programme (UNDP). The Area Based Development Emergency Initiative (ABADEI) project is designed to create employment, rebuild critical agricultural infrastructure, boost food production and support female entrepreneurs in some of Afghanistan’s poorest places.

The project provides employment opportunities for more than 158,000 people who could not rely on getting enough food. Covering six provinces, this cash-for-work intervention enables labourers to meet their family’s basic needs as they work to repair and improve over 1,200 kilometres of irrigation infrastructure, flood defences and

Many of the women have significantly boosted their profits and production as a result.

bridges. Their efforts provide irrigated water to more than 98,400 hectares of agriculture land, directly benefitting 200,081 poor farmers. In the long term, these efforts will enable more than 1 million people to gain reliable access to sufficient food.

“Being an Afghan woman who works outside the home is very difficult,” Sakina says. “I am the only woman working among 300 men, but I will continue working and doing my best. I wish and pray for all women to achieve their dreams and for Afghan girls to have the freedom to learn, work and improve themselves. I thank Islamic Relief for supporting my work here. (Many) of your staff are also women, which shows Islamic Relief’s respect for us.”

Islamic Relief also supports Afghans facing hunger, including earthquake survivors, by providing unconditional cash to help meet acute nutritional requirements. Through this initiative, we directly support over 2 million men, women and children.

Women face multiple challenges to earn an income in Afghanistan. The women’s empowerment component of the partnership has supported just over 1,600 small businesses owned by women. It has provided training, grants and networking opportunities to help entrepreneurs develop their products and access new markets.

Late in 2022, the authorities in Afghanistan bar most women from working in humanitarian organisations, with immediate and devastating consequences for vulnerable people throughout the country. Islamic Relief joins other organisations in calling for a swift reversal of the ban.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

April

Successive failed rainy seasons have resulted in the worst drought in decades in the Horn of Africa, with many young children dying from hunger and illness. Around 14 million people in Somalia, Ethiopia and Kenya are now in urgent need of aid, with hundreds of thousands of people fleeing their homes to search for food and water. Many are now living in overcrowded camps.

The war in Ukraine has made the crisis even worse as the price of staple foods and fuel soars. In the Horn of Africa many countries previously imported most of their wheat from Ukraine, so the effect is dire.

With the region on the verge of famine, Islamic Relief responds by providing poor families with food and cash; vaccinating and feeding livestock to keep them healthy; repairing water supplies and providing sanitation facilities; supporting health workers to care for severely malnourished children; and helping farmers develop new irrigation systems and use drought-resistant seeds.

Fifty-five-year-old community elder Yusuf has lived his whole life in War Imran village, in the Togdher region of Somaliland. His village has endured two terrible years of drought in which thousands of livestock – vital for local livelihoods – have died.

In Somalia’s Bari region, a woman collects water from a facility provided by Islamic Relief. The drastic rise in food prices has made life here even tougher. Previously, £59 used to be enough to feed a family of six for a month, but now basic food supplies cost at least £85 a month.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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May
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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

June

In Barmal district, Afghanistan, an earthquake leaves families with only makeshift shelters.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

July

This month communities in Balochistan, Pakistan, suffer heavy monsoon rains and flash flooding. Over 180 people lose their lives and hundreds more are injured. Homes, buildings, farms and livestock are destroyed. Communities are also having difficulty accessing clean drinking water and are at risk of water-borne diseases. In Quetta, the provincial capital, and in other communities, Islamic Relief emergency teams are on the ground providing 3,000 families with cash grants which they use as they wish to cover their most essential needs. Islamic Relief also works with local government to support relief efforts.

Boys in Sri Lanka collect qurbani meat provided by Islamic Relief in time for Eid al-Adha this month. Our qurbani distribution reaches over four million people across 28 countries and follows our largest ever Ramadan programme, which ploughed over £13.4 million into reaching 1.57 million people in 33 countries, including 23,000 people in Sri Lanka.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

August and September

“At least we are not

out in the open now: the tent protects us from the blazing heat during the day,” says father-of-five Ubaid, who received shelter and other survival items from Islamic Relief. His family home in Killi Batto village, Pakistan, has been uninhabitable since the floods. “Losing your house is painful. We were already poor, the floods made us poorer.”

In one of the most devastating natural disasters in living memory, massive flooding triggered by a ‘monster monsoon’ and glacial melting, hits Pakistan. One-third of the country is submerged, affecting 33 million people. Over 1,700 people die and nearly 13,000 others are injured. More than 2.2 million people lose their home and many now live out in the open, without food or water. Dangerous diseases such as diarrhoea, malaria, and typhoid spread rapidly in flooded communities and – with over 2,000 health facilities thought to be damaged – access to vital healthcare is difficult for months.

Other essential infrastructure has been badly hit, with more than 13,000 kilometres of roads damaged and 400 bridges destroyed. Livelihoods are also ruined: more than 4.4 million acres of crops and orchards have been affected, while over 1.1 million livestock have died. The total cost of the damage is thought to exceed $10 billion.

Islamic Relief have been on the ground providing vital humanitarian aid from the very start. We provide food packs, kitchen sets, hygiene kits and tents to over 91,550 individuals in heavily affected areas like Noshki, Quetta and Balochistan. In areas such as Malir-Karachi, Thatta, Dadu, Mirpur Khas

and Sindh, we provide over 200,000 individuals with food packs, household kits and tarpaulin sheets. We build pit latrines and team up with UNICEF to provide over 1 million litres of drinking water for more than 550,000 people. The counselling we provide helps people come to terms with all they have experienced.

As communities begin the enormous task of rebuilding in the aftermath of the disaster, we remain by their sides. Islamic Relief provides 4,600 permanent shelters to families displaced in the worst affected areas, helps other communities rebuild their homes themselves, and builds temporary learning centres so children do not miss out on their education.

In November, we team up with the UNDP to announce a partnership to create job opportunities and support the construction of vital community infrastructures in Sindh. We provide cash-for-work opportunities for local people, enabling them to earn as they help to repair their communities.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Disaster : Caused by torrential seasonal rains, flash flooding in Sudan kills scores of people.

Impact: As climate change makes natural disasters increasingly frequent and intense, flooding is becoming an annual occurrence in Sudan. This year’s flood affects around 136,000 people, damaging or destroying tens of thousands of homes as well as important infrastructure such as healthcare and water sources.

Response: In our emergency response we prioritise areas in which we were already delivering humanitarian and development assistance. We provide survival items, food packs and water, and sanitation and hygiene services reaching 101,743 people.

Samira (left) with some of the survival items Islamic Relief distributes in Sudan’s River Nile State. Flood-affected families receive essentials such as blankets, mosquito nets, shampoo, sanitary pads and soap.

When flash flooding strikes 10 Afghan provinces, the home of Amruddin, in Musahi district, is among those destroyed. Islamic Relief gives essential staples such as wheat, pulses, cooking oil and salt to his family and more than 300 other affected households in the area.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

October

“I am now more hopeful for my children’s future,” says Bibi, a widow struggling to provide for her daughters in Afghanistan. The family rely on the regular stipend provided by our Orphan Sponsorship Programme. “The money I’ve received means that I can now feed them properly,” she tells us, adding that she has also been able to send her children to school again.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

“When I held the cash in my hand, I was so happy that my heart was beating out of my chest,” says Husna, recalling her relief upon receiving an unconditional cash grant from Islamic Relief. Part of our life-saving response to the dire drought in North Kordofan, Sudan, the grant enables Husna to meet her family’s most pressing needs.

“I bought food supplies and cooked a meal for my children. My children almost never drink milk [so] I am going to invest the remaining cash in buying a goat.” In addition we install hand pumps and solar-powered water sources, give farmers drought-resilient seeds, and train community leaders and government officials about climate change. Altogether, we help over 3,300 drought-affected households.

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DEVELOPMENT

THIS YEAR WE CONTINUED TACKLING ISSUES DRIVING POVERTY AND EMPOWERED MORE COMMUNITIES TO BECOME SELFRELIANT. WE IMPROVED ACCESS TO LIVELIHOOD OPPORTUNITIES, HEALTHCARE, EDUCATION AND WATER AND SANITATION, WITH OUR DEVELOPMENT PROJECTS HELPING IMPROVE THE LIVES OF 2.8 MILLION PEOPLE.

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Building homes for displaced families in Syria and Myanmar

In Harem, northern Syria, Islamic Relief teams are hard at work building homes for uprooted families.

This year 57 displaced families in Harem and Darkush, Syria, swapped tents for new homes. Islamic Relief built each family a housing unit of their own, each with two rooms, a kitchen and a separate toilet. Umm Muhammad, a mother of five who has been living in a tent for seven years says: “We lost the sense of safety and reassurance while fleeing from one camp to another. By the grace of Allah and Islamic Relief’s support we are able to live much better than we used to.”

Uprooted families in Myanmar also benefited from new, safer homes that protect their dignity and privacy. This year Islamic Relief built 83 more sturdy shelters in Sittwe township, enabling 64 families to move out of flimsy bamboo shelters that leaked miserably during the monsoon. Three new school buildings were also equipped with furniture, water facilities and latrines in Sittwe and Myaungmya townships.

A school in Kan Chaung village, Myanmar, renovated by Islamic Relief this year. We added three classrooms, toilets and new school furniture. Safe drinking water and a new entrance road were also provided, supporting children to continue their learning in a safe and suitable setting.

Growing food security in the Occupied Palestinian Territory

Islamic Relief Palestine country director Muneeb Abu-Ghazaleh helps plant an olive tree.

This year saw the launch of an olive tree planting project in Gaza, where the Israeli blockade has devastated the economy and forced 80 per cent of residents to rely on aid. An integral part of the local food basket and a source of income for rural families, olive trees are a highly prized part of Palestinian heritage. The hardy trees tolerate the salty water in Gaza and can withstand many disease and climatic

changes. The Islamic Relief project will help plant 330,000 square metres of olive trees of different types, expanding the green space in the Gaza Strip. It will also support 665 farmers by providing farming tools to improve agricultural production.

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Fighting hunger and its root causes

As food insecurity around the world continues to deteriorate, more families do not know where their next meal will come from. Through our Global Hunger Prevention and Response Programme, we support affected populations in eight African countries to tackle hunger not only by providing food, but also addressing interlinking issues such as water and sanitation, health and nutrition and livelihoods.

The £3.8 million ($5.2 million programme) aims to support the most vulnerable in Mali, Niger, Kenya, Somalia, Sudan, South Sudan, Ethiopia and Madagascar, where we support communities through a partner.

In Mali, we trained 200 women to recognise the signs of malnutrition in young children and to refer them for appropriate care. Their work resulted in 598 children – most of whom were moderately acutely malnourished – being referred for care. All the trained women said they now feel they have the knowledge and skills to prevent, identify and refer cases of malnutrition in the community; while mothers reported being more willing to bring their children to receive nutritional care.

Vulnerable people in Kenya receive mobile cash transfers to help meet their basic needs.

In Somalia, we help families earn a reliable living from livestock by supplying cooling machines to reduce milk spoilage, and offering training in cheese production.

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Reviving small businesses and protection in the Philippines

Armed conflict in the Philippines’ Maguindanao municipality has uprooted families and devastated communities and the local economy this year. Islamic Relief responds with a six-month project to revive small-scale businesses and improve protection for women and other at-risk groups.

We equipped 100 entrepreneurs with startup grants, along with training in financial management and business proposal writing. The women also received feed and materials enabling them to produce and sell duck eggs.

As well as strengthening social bonds in the community, the project enabled participants to earn a living, provide for their families, and even set aside some savings. Encouraged by the project’s positive results, five local government units introduced mental health and psychosocial support. Referral pathways, including for genderbased violence and child protection, were also bolstered as municipal and provincial authorities pledged their support.

An Islamic Relief livelihoods scheme in the Philippines brings together 100 women to kickstart businesses producing and selling duck eggs.

Sewing self-reliance in Jordan

“I am so glad that I was accepted into this project,” says Hanan, a mother of three whose husband’s poor health means she must provide for her family alone. A Syrian refugee, she now lives in Jordan, where a shortage of work opportunities leaves many women struggling to support themselves and their families. This year Hanan was among 63 women in Irbid governorate to whom we provided counselling, financial grants and vocational training so they could build livelihoods.

“I have benefitted a lot from the counselling and training in financial management and sewing. I was always afraid of working outside the home because it would mean leaving my children. But now, I can take care of them and manage my work from home at the same time.

“After I complete all the training sessions and receive a financial grant, my goal is to have my own home-based tailor shop. After that, my greatest ambition is to open a huge tailoring store. The project is helping to empower women and I hope similar projects reach women in need across the world.”

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Enhancing enterprise and employment in Ethiopia

As in many other countries, significant barriers typically prevent women and young people from earning a living in Ethiopia.

Islamic Relief has helped tackle this by linking orphan sponsorship with lasting livelihood interventions. As a result, 3,500 orphaned children this year received regular financial support through Islamic Relief, which also helped their mothers begin earning a reliable living. Altogether we trained 1,800 widows to promote and manage small businesses. Setting up or

improving 557 enterprises, the women formed self-help groups to support each other on business matters, and savings groups to help maximise their income. In addition we provided vocational training to prepare 150 of our sponsored young people for the world of work, with seven of them securing employment in 2022.

Afghanistan suffers its coldest winter in a decade with temperatures plummeting as low as minus -33C (minus -27F) in some mountainous areas. Islamic Relief provides blankets and winter foodpacks to vulnerable families.

Supporting Afghanistan through crises

a pregnant goat to each. We also ran life-saving health and nutrition services, reaching more than 122,500 people across seven provinces and helped ensure children did not miss out on an education by supporting over 7,000 children who were out of school to receive education in their communities. More than 6,200 households received cash for food and over 63,000 food packages were distributed to those struggling to feed themselves and their families.

As Afghanistan struggles with economic crisis and widespread hunger, Islamic Relief has been working to support the country’s most vulnerable. This year, we helped more than 1.1 million people meet their basic needs, implementing projects worth £32 million, including our live-saving seasonal Ramadan and qurbani programmes. We supplied over 6,300 households with fuel and blankets to weather the colder months, and empowered 1,539 vulnerable woman to earn a sustainable living by providing

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PROTECTING COMMUNITIES ON THE CLIMATE EMERGENCY FRONTLINE

In 2022 the world’s poorest communities continued to pay the highest price for the world’s failure to halt the looming climate catastrophe. Strengthening the ability of such communities to cope with the effects of the changing climate therefore remained a priority for Islamic Relief this year, with programmes to boost resilience in disaster-prone countries.

Backing Bangladesh’s poorest families

Communities living in Bangladesh’s Dhaka North City Corporation and Sylhet City Corporation are extremely vulnerable to disasters, which are worsening as the climate continues to break down. The poorest families bear the brunt of suffering, finding it particularly difficult to access vital healthcare, education and social safety nets.

This year Islamic Relief helped 600 households living in extreme poverty to change that. Determined to boost their resilience, we offered training in how to earn a living despite the challenges presented by climate change. We showed families how to prepare so when disasters strike they inflict less damage, inspiring 150 young people to champion this in their communities. We also improved drainage facilities and identified and created safe evacuation spaces.

Islamic Relief supervises a water trough being constructed in Tourchawane village, Gourma-Rharous, Mali.

When erosion destroyed her home, Romuja moved to Sylhet, Bangladesh. With an Islamic Relief grant she set up a small grocery enterprise so she could earn a living once more.

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Equipping local communities to respond to disasters in Indonesia

Communities living in Kenya’s droughthit Wajir and Mandera counties face many challenges, including low literacy levels, which entrenches poverty, particularly among women; and poor electrical infrastructure that forces local people to burn wood for energy, damaging the environment. In addition, competition over increasingly scarce natural resources fuels conflict, further increasing the vulnerability of local people.

An 18-month integrated project by Islamic Relief tackled these challenges, benefitting more than 2,700 people. We improved the electricity supply, setting up solar panels for over 100 businesses, 300 households and 10 schools. This reduced the need for harmful wood fuel burning and the cost of running a small business. Islamic Relief made three boreholes solarpowered, ensuring communities have access to clean, safe and affordable water. In addition we worked within communities to promote peace and social cohesion, gave children with special educational needs the specialist learning materials they needed to thrive, and boosted financial resources available to women entrepreneurs.

Community volunteers identify suitable evacuation sites in Balaroa, Indonesia.

conjunction with other non-governmental organisations and local emergency services. We also work with faith leaders to revitalise the role of religious sites and organisations in disaster response – including in helping communities cope with the shock and trauma disasters cause. In 2018, we launched an extensive programme which drew on our experience helping Muslim and Christian communities in South Africa to reduce their vulnerability to disasters.

While responding directly to emergencies is a key part of Islamic Relief’s work around the world, we also develop the capacity of disaster-prone countries to respond effectively to emergencies.

In Indonesia, we team up with communities and local authorities, sharing expertise to help save lives and reduce casualties when disasters strike. We train communities on what to do in a disaster; identify suitable evacuation sites; and run simulations in

Alarmingly, Indonesia is also on the frontline of the climate emergency. Disasters and extreme weather events are becoming more frequent and intense, placing even more stress on the poorest communities. Islamic Relief is therefore helping through interventions such as planting bamboo along riverbanks to protect against flooding and establishing mangroves in coastal areas to guard against erosion.

Emergency response volunteers receive training in Sigi, Indonesia. Many have been affected by disasters and use their insights and experience to help their communities prepare and respond to crises.

Our efforts have helped ensure swifter and more effective responses to emergencies including flash floods, a fire and a hospital evacuation, as well as awareness raising and distribution activities during the Covid-19 pandemic. Local government has also secured a higher budget for disaster risk reduction.

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“The programmes that [Islamic Relief has] conducted locally have already strengthened and honed our response. We know how to become a community that is resilient to disasters, including the women and children among us. As the government, we are so grateful for this because if a disaster happens, we know the community is ready and knows what to do.”

– Irmayanti Pettalolo, secretary to the mayor of Palu, Indonesia

“Disaster risk reduction activities are so essential because we experienced how challenging the 2018 earthquake was. There were many victims at that time and our communities lacked information on how to evacuate themselves. We’ve come to solve this issue by explaining the evacuation sites. It’s not only for our community: all communities in the area can access these evacuation sites.”

– Lukman, Islamic Relief volunteer, Balaroa, Indonesia

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Supporting teachers in Sudan’s refugee communities

Teachers in Sharg Alnile, Khartoum, receive payment through an Islamic Relief project with UNICEF.

In collaboration with UNICEF and Sudan’s Ministry of Education, Islamic Relief provided payments for teachers, supervisors and workers at schools for South Sudanese refugees in Khartoum. The payments are part of a wider programme aiming to ensure access to quality primary education and improve the skills and knowledge of teachers, parents and communities. In addition, 58 refugee students received support for exam fees in West Kordofan, where we also equipped schools with essential furniture, and refugee camps with tents to use for temporary learning spaces.

Twenty girls in Takurgaon, Bangladesh received bicycles through an Islamic Relief project aimed at improving children’s access to education. The bikes make it safer and easier for the girls, who live in a poor, rural area, to get to school and it is hoped this will encourage them to continue their education. The same project also provided 4,000 children with education materials including school bags, umbrellas and stationery.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Improving living conditions in drought-affected communities in Somalia

Latrines with lockable doors help improve safety for women in Baidoa, Somalia.

Drought in Somalia affected nearly 22 per cent of the population this year, with 1 million people now forced to leave their homes behind in search of water. Vital agricultural livelihoods were ruined, and poor hygiene and sanitation facilities and scant access to safe water saw dangerous waterborne diseases spread. As water became harder to find, women and girls – who are typically tasked with fetching it – travelled further, leaving little time for education or employment, and putting them at greater risk of male violence.

Islamic Relief helped improve living conditions in Baidoa and Dinsoor. We provided 267 individuals with cash support for two months, so they could buy what they needed to meet their basic needs. In addition we built separate latrines for men and women, with lockable doors, and installed 10 solar lights at strategic locations to improve safety.

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CAMPAIGNS

THE IMPACT WE ACHIEVED IN 2022 WAS MADE POSSIBLE BY OUR GENEROUS DONORS AND PARTNERS, WHO CONTINUED TO SUPPORT US THIS YEAR. AS WELL AS RAISING THE FUNDS NEEDED TO DELIVER OUR PROGRAMMES, WE BATTLED TIRELESSLY FOR SOCIAL JUSTICE, PRESSING THOSE WITH POWER TO ACT TO MAKE THE WORLD SAFER AND FAIRER FOR EVERYONE.

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OUR POSITION
ISLAMIC RELIEF CLIMATE POLICY
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Climate action position paper:
Climate finance
Islamic Relief
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Responding to catastrophic climate breakdown

As the global climate emergency worsened in 2022, Islamic Relief continued our vital efforts to assist communities suffering its devastating effects. Whether providing disaster relief amid calamitous flooding and persistent drought; helping vulnerable communities better protect themselves from climate breakdown; or amplifying the voices of people on the frontlines of the climate emergency, we fought tirelessly against the biggest threat to our world today.

For the first time in our history, Islamic Relief established a climate policy that supports every ethical action to eliminate greenhouse gas emissions and restrict the global temperature rise to 1.5 degrees. The countries, communities and people on the frontline of the climate crisis already face a myriad of interconnected development challenges: our policy sets out how to ensure that climate action addresses the root causes of their vulnerabilities.

In conjunction with the policy, we launched two accompanying position papers. The first focuses on climate migration – a phenomenon in which millions have been forced to flee their homes due to climate breakdown. It sets out Islamic Relief’s stance on addressing the challenge at the international level. The second paper, on climate finance, discusses how low-income countries should receive more international funding to assist them in addressing the fallout of climate breakdown.

Amplifying the voices of communities on the climate crisis frontline

To bolster the case for bold climate action, we published research papers detailing how the climate crisis is affecting the communities we support, including:

• The Land is Aching: Extreme ClimateInduced Flooding in Pakistan. After experiencing its worst ever disaster the already cash-strapped Pakistan faces soaring poverty and disease outbreaks, and widespread infrastructural damage – alongside the grim certainty that the floods will come again. Pointing to the positive impact of Islamic Relief’s climate adaptation interventions in the country, we call for urgent support for disaster risk reduction and management in Pakistan and funding from rich, high-polluting countries to compensate poorer countries for the loss and damage from climate-related disasters.

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Advocating for climate adaptation

From helping farmers in Ethiopia switch to drought-resistant crops, establishing fish farms to diversify incomes in Niger, to developing a community-based climate school in Indonesia, Islamic Relief has significant climate adaptation experience. In 2022 we used our insights to call for greater focus on helping communities lead efforts to adapt to the changing climate.

For the COP27 climate summit in Egypt, we engaged virtually with negotiations and published articles in the influential ECO daily newsletter. Islamic Relief joined

other organisations in securing pivotal agreements to address loss and damage caused by climate disasters.

We also pressed decision-makers at the intersessional meeting (SB56) of the United Nations Framework Convention on Climate Change (UNFCCC) in Bonn, Germany. Representing the 1,800 organisations that make up the Climate Action Network, we pushed for swift and decisive action to minimise the harm already being inflicted on the world’s most vulnerable communities.

Community farmers in Indonesia planted 12,000 saplings provided by Islamic Relief in collaboration with the Watershed Management Centre and Protected Forest (BPDASHL). The initiative boosted resilience to climate change by restoring the environment to prevent flooding, landslides and other climate-related disasters, as well as reducing agricultural runoff.

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Speaking out for justice for women and girls

The Islamic Relief family once more engaged in activities to highlight the global campaign, 16 Days of Activism for the Elimination of Gender-Based Violence Against Women. Drawing on Islamic teachings, we spoke out against harmful practices such as early/forced marriage, abuse and female genital mutilation/ cutting. With positive masculinity a key theme this year, we helped inspire men and boys to become allies in the fight against gender-based violence.

We held 16 Days of Activism events in 11 countries including Somalia where more than 80 people took part in public awareness forums highlighting Islamic teachings against genderbased violence. In Bosnia and Herzegovina, our community and school workshops spotlighted domestic violence, modern slavery, human trafficking, and forced labour. In addition we teamed up with local associations and institutions to organise a peaceful walk called “No Woman More”, which drew attention to femicide, the intentional killing of women and girls because they are female. An online petition called for the country to introduce new legal frameworks on the issue.

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Reducing gender-based violence in Nepal

Gender-based violence is a serious threat to women and girls in Nepal, where incidents often go unreported. Islamic Relief stepped up efforts to tackle this by launching a new project with our partner, the Rural Development Centre (RDC), which supports women and girls subjected to genderbased violence in Ratuhat district. The initiative strengthened government protection structures, developing referral pathways between institutions working on protection to ensure a coordinated response to incidents of violence.

We trained local journalists on ethical reporting around gender-based violence, and in the community ran awareness-raising campaigns and self-defence classes for adolescent girls. The 15 bathing cubicles we supplied gave women and girls a secure place to bathe, and 19 survivors of gender-based violence received assistance with necessities such as medical treatment, food, and clothing. In addition the project also offered counselling and vocational training to survivors and at-risk individuals.

The impact was significant: 94 child marriages were prevented and 86 girls who had dropped out of school re-enrolled as a result. The annual income of those who participated in the project’s livelihood activities increased by 28 per cent. We hoped the awareness-raising campaigns would boost reporting of gender-based violence cases by 20 per cent, but they achieved more than twice that, with a recorded 47 per cent increase.

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Providing a lifeline for Tigray refugees

“We went from making lunch for the children to picking them up and running for our lives,” says Bayan, 75, describing the moment conflict forced him and his family from their home in Tigray, Ethiopia. “We didn’t know the value of peace, until we didn’t have it anymore.”

Bayan and his family now live in Tunaydbah camp, one of numerous camps in eastern Sudan in which Islamic Relief provided life-saving aid this year. Refugees received food, water, sanitation and hygiene items and education support. Islamic Relief has also installed a solarpowered lighting system to help keep people, especially women and girls, safe at night.

Despite the challenges of adjusting to a new life in the camp, Bayan has hope that peace will be restored and spends his time supporting other refugees. “God tells us never to lose hope”, he says.

Participants in an Islamic Relief workshop in South Africa learned how to create compelling resumes and prepare for job interviews. The session formed part of our efforts this year to reduce discrimination, promote social cohesion, and support refugees and asylum seekers to gain employment.

Assisting uprooted families in Syria and beyond

Around the world this year, conflict and the effects of climate change continued to drive people from their homes, where many faced dire living conditions and uncertain futures. As well as continuing to press for their rights, dignity and protection needs, Islamic Relief provided important, practical support.

“We have lived a very harsh life since we left our village four years ago,” says father-of-13 Abu Ghaith, who first took his family to the Atma camps in northwest Syria before fleeing again to a camp in the Babasqa area. Though he works as a teacher, the little he earns cannot feed his family or pay for fuel to heat their tent, even in the depth of winter. Islamic Relief

provided every family in the camp with fuel for heating, and supported a nearby health centre which provides free care to displaced families.

The crisis in Syria has created the world’s worst displacement crisis: a staggering 6.8 million people are thought to have fled the country, with another 6.9 million internally displaced. Many of our interventions this year targeted uprooted families facing dire conditions in camps scattered across northwest Syria, and refugees in neighbouring countries including Türkiye, Jordan, and Lebanon.

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CHARITY OF THE YEAR IN THE UK

2022 was a year of emergencies. In an unrelenting string of climate-change related disasters, Islamic Relief UK supported the equally tireless responses across Pakistan, Bangladesh, Afghanistan, and East Africa. Alongside our emergency relief operations, we persevered with our crucial international development and domestic work, supporting millions of people with access to food and nutrition, clean water, healthcare, high quality education, sustainable livelihoods and more.

Despite the global cost of living crisis and the many unprecedented challenges since the Covid-19 pandemic, Islamic Relief UK remained steadfast in our commitment to improving the lives of those we serve – as did our supporters, who enabled us to achieve record-breaking fundraising. Our success was encapsulated by being the first Muslim organisation to win ‘Charity of the Year’ at the prestigious Third Sector Awards. We were thrilled to be once again able to host our Lifesaver Awards event – the first in three years, due to pandemic restrictions – to honour the work of our dedicated volunteers that make possible our vital work.

The DEC campaign for Pakistan used this striking image, which was captured by Islamic Relief.

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UK’s response to the Pakistan floods. One of our key highlights was HRH King Charles’ donation to Islamic Relief, which was covered as a breaking story on various mainstream media channels including ITV, Good Morning Britain and Sky News.

Naz Shah MP on a visit to Pakistan following the floods in September 2022.

Our advocacy team also worked closely with government ministers to raise awareness of the direct link between the disaster in Pakistan and climate change, drawing attention to our crucial climate-change advocacy work. Our team arranged for Naz Shah MP to visit flood-affected areas in the lead up to a Parliamentary drop-in session, which successfully hosted 26 cross-party members, including the Minister of State for the Middle East, North Africa, South Asia and the United Nations, Lord Ahmad of Wimbledon. Lord Ahmad also visited the Islamic Relief Pakistan team, which helped galvanise support for the

Our close work with the community on the ground was also reflected in the response to the appeal. Together with Yorkshire County Cricket Club, Islamic Relief hosted an event to engage key existing and new supporters from within and beyond the Muslim community. Our fundraising team raised an astonishing £48,000 for the Pakistan Emergency Appeal.

This year, we also saw the strength and determination of our amazing community of donors to engage with fundraising at a new level. Hundreds joined us across 32 phenomenal international and domestic challenges throughout the year, kickstarting with Snowdon in the Snow which raised over £80,000 for Afghanistan. The momentum of success for our fundraising challenges continued as we ventured to Pakistan, Jordan, Bosnia and elsewhere to support 10 powerful causes – raising over a record-breaking £451,000.

Islamic Relief UK volunteers taking on the challenge of the Ben Nevis trek.

Supporting poor communities

Our Ramadan, Qurbani and Winter Food Drive campaigns continued to focus on improving food security for vulnerable people in the UK against the backdrop of the current cost of living crisis. Our work with outstanding organisations such as The Newham Community Project, Sufra NW Food Bank, Masjid Al Falah, East London Mosque, The Felix Project, Green Lane Masjid, Liverpool FC, Aston Villa FC, Celtic FC, FMO Leicester and so many more, bolstered the success of our efforts.

This year we delivered an incredible 20,000 meals and 7,500 food parcels to families in need. Our work featuring people like Bushra and her children, who are relying on food banks we support to provide them with their daily meals, successfully caught

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Volunteers supporting
food banks as part of
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by providing 9,000kg of qurbani meat in the wake of Eid al-Adha, as well as 2,300 meals and 3,400 food parcels.

the attention of several major media outlets including Sky News, BBC News, the Huffington Post and more. In addition, our Qurbani campaign also made a hugely positive impact on people facing difficulty

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Charity Week volunteers hosting the final event of the 2022 season.

That’s not the only record-breaking figure we achieved this year. A groundbreaking £1.9 million was raised in the first in-person Charity Week since the Covid-19 pandemic began. Over 100 institutions across the UK participated, raising crucial funds for a variety of children’s causes. In just two weeks

Harnessing the power of originality

One of our key focuses for this year was to elevate the user experience of our loyal donor community – an integral part of our strategy to strengthen fundraising here in the UK. During Ramadan 2022, we were excited to introduce ‘scholar verified’ content for the first time here at Islamic Relief. The badge was awarded to content related to Islamic giving and other useful Islamic resources to signify that it has been vetted and verified by

they hosted over 42 auction events, raising £382,000 – a testament to the trust and enthusiasm we share with our donor community who have been able to achieve so much despite the challenges of the pandemic.

one of the scholars Islamic Relief works with before being published. A new zakat policy and its own board of scholars was also introduced, to make the act of paying zakat as reliable and as seamless as ever for our donors.

We also collaborated with a range of incredible digital influencers to produce original and engaging content to spotlight our emergency appeals and campaigns. Our successful partnership with food artist Haneefa Adam significantly elevated the reach and content of our Ramadan Food Packs programme and our Qurbani campaign.

Another turning point was reached this year as Islamic Relief celebrated the beloved Cake Campaign’s 10th Anniversary. The decade-long campaign has raised a total of £2.2 million for people in need since it began. This simple but transformative idea is an annual event for the Islamic Relief community – a testament to the sense of togetherness we have been able to nurture throughout this period. This year’s nearly 36,200 cakes sold adds to a staggering total of almost 216,200 cakes sold over the last 10 years (or 3 million slices!) The campaign was able to raise a phenomenal £402,000 this year alone.

Volunteers delivering cakes during the 2022 Ramadan Cake Campaign.

Reflecting on the year, the success of what we have been able to achieve here at Islamic Relief is inextricably tied to both the sheer generosity of our donor community and the strength of our relationships. We remain dedicated to ensuring that they are at the heart of our incredible work, together with the communities we serve.

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Despite the political turmoil in Mali that has seen growing violence and increased suffering, Islamic Relief has continued to provide vital support. This includes the annual Ramadan programme, which provided nearly 11,000 people in areas like Bamako and Ouélessebougou with food packages containing staple items with which to start and end their fasts. This year’s programme was welcomed by the Malian government, as it provided much-needed relief amid a bleak humanitarian situation.

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PARTNERSHIPS

THIS YEAR WE STRENGTHENED EXISTING PARTNERSHIPS AND WORKED TO SUPPORT THE ISLAMIC RELIEF FAMILY IN OUR SHARED MISSION TO IMPROVE THE LIVES OF VULNERABLE PEOPLE WORLDWIDE.

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Making STRIDEs on localisation

This year saw Islamic Relief’s multi-year Strengthening Response Capacity and Institutional Development for Excellence (STRIDE) project expand its work into new locations. The multi-million-pound landmark project aims to strengthen the capacity of local and national responders, governments and communities through training and funding.

Building on the success of STRIDE phase 1, STRIDE phase 2 has so far seen Islamic Relief collaborate with humanitarians across Africa, Asia, and the Middle East. In 18 territories where we already have a presence, STRIDE helped us work more closely with local partners. We ran workshops for staff to develop country-specific guidelines for building and managing effective and equitable partnerships. We provided grants that funded the creation of emergency response plans and equipped local organisations with the skills and expertise needed to support communities in times of crisis.

Through STRIDE, Islamic Relief is also identifying countries vulnerable to disasters where we do not have a presence, and working to develop long-term partnerships with local actors, providing them with technical and financial support. This capacity building empowers local organisations to be in a position to play a more prominent role

Islamic Relief Sri Lanka holds a consultation workshop with local partners to plan activities to build their capacity.

in emergency responses and to rely less on international aid.

Islamic Relief’s commitment to localisation was further cemented this year by the formal acceptance of our application to join the Grand Bargain 2.0. This is an agreement between governments, UN agencies, some of the largest humanitarian donors and other humanitarian actors to work together to improve the effectiveness, efficiency and accountability of humanitarian action.

A Yemeni girl receives aid items from Islamic Relief, which continued to partner with the World Food Programme and the Swedish International Development Cooperation Agency.

Putting food on the tables of Yemeni families

In 2022, Islamic Relief continued its partnership with the UN World Food Programme (WFP), helping support families through extreme food scarcity in Yemen, where ongoing conflict and economic collapse have made even basic goods unaffordable for many.

Islamic Relief also continued working with the Swedish International Development Cooperation Agency (SIDA) to improve access to safe drinking water for communities in Yemen, where an estimated 17.8 million people required support meeting basic water, sanitation and hygiene needs in 2022. Our project with SIDA aims to improve living conditions and control the spread of waterborne diseases and Covid-19 in Al Hudaydah governorate, reaching 29,400 people.

When families are forced to flee their homes in an emergency, we make sure they have the food they so desperately need. We distribute food vouchers and packages containing essential staples such as rice, flour and cooking oil to displaced people.

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Representing Islamic Relief around the world

In 2022 our chief executive officer, Waseem Ahmad, had another busy year representing Islamic Relief and promoting our work around the world.

April saw the hosting of the Ramadan Tent Project – Open Iftar at St Chad’s Cathedral in Birmingham, UK. This year was the first time the iftar had been held in person since the Covid-19 pandemic. The event aims to bring communities together and foster a spirit of friendship.

In November, Waseem was invited to speak at the UK government’s International Ministerial Conference on Preventing Sexual Violence in Conflict (PSVI). Islamic Relief and World Vision worked closely with the Foreign, Commonwealth and Development Office (FCDO) to hold an event in support of the Declaration of Humanity, which calls for people of all faiths to act to prevent sexual

violence in conflict and denounce the stigma that survivors face.

Towards the end of 2022, Waseem was among DEC representatives that met King Charles III to discuss the life-changing impact of funds given by the UK public to international humanitarian crises and how the changing climate is affecting the world’s most vulnerable communities.

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Joining hands across faiths to support refugees

CEO Waseem Ahmad presented alongside faith-inspired humanitarians from around the world at the Welcoming the Stranger conference.

The Welcoming the Stranger conference in June saw Islamic Relief team up with HIAS and the Lutheran World Federation (LWF) to bring together faith actors from 37 countries to share experiences and lessons on faith-sensitive responses to the global displacement crisis. More than 100 million people worldwide have been forced from their homes by war, violence and persecution and local faith actors are often at the forefront of responding – yet their role is often overlooked.

The conference – named after the concept of “Welcoming the Stranger” that is shared across Islam, Judaism and Christianity – highlighted how people of faith are often the first to respond when crises emerge and can play an essential role in promoting social cohesion and tackling xenophobia in the context of displacement.

Islamic Relief Worldwide CEO Waseem Ahmad joined a panel discussion with Rev. Anne Burghardt, General Secretary at LWF (Lutheran World Federation), and Mark Hetfield, President and CEO at HIAS, about working together to support refugees and build more inclusive societies. Gillian Triggs, Assistant High Commissioner for Protection at the UN Refugee Agency (UNHCR), opened the conference, underlining concrete commitments from UNHCR to continuing its partnership, in particular to increasing their faith literacy.

In December, Islamic Relief, HIAS and LWF joined forces again to organise an Innovation Lab titled ‘Shaping the Future, Living as Neighbours’. Held on the sidelines of the UNHCR’s High Commissioner’s Dialogue in Geneva, the event again highlighted the importance of faith perspectives in supporting responses to forced displacement.

Digital developments power global connections

The Islamic Relief Worldwide website received a major overhaul this year, making a better online space to showcase our work around the world, attract and inform donors and policymakers, and increase brand awareness. The website is now more searchable than ever before and plans are underway to make it available in Arabic and French too. Another new feature allows us to easily host the Annual Report microsite. We also introduced Yammer, an internal social media network for our staff to connect and share the work we have been doing with colleagues around the world. The platform also allows colleagues to crowdsource their questions, share knowledge with each other, get involved with our campaigns, and join online communities to support their personal development and wellbeing.

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Protecting the rights of children in Pakistan

This year Islamic Relief welcomed a number of key partnerships to protect children’s rights in Pakistan. We teamed up with National Commission on the Rights of Child (NCRC) to protect the next generation from abuse, violence and rights violations. Our partnership aims to harness collective expertise to protect children living under challenging circumstances, particularly those experiencing homelessness.

We are also working with government departments and other stakeholders to address underlying issues around child poverty and lack of education. Towards this aim, Islamic Relief and Pakistan’s Child Protection and Welfare Bureau Punjab (CPWB) trained the Rawalpindi police department. The session resulted in a referral mechanism being established between the police and child service providers, and a joint advocacy campaign to better safeguard the rights of children.

Also in Rawalpindi, we teamed up with the Punjab Education Department to install a water purification system at a local school on World Water Day. Previously, the school’s water had been found to be contaminated, causing students to become unwell. The filtration plant will benefit 2,000 students as well as the local community.

Investing for a brighter tomorrow

In 2022, the International Waqf Fund funded 12 projects, including in Sudan, where ElSouky Health Centre in Sinnar state received dialysis machines that improved treatment for more than 15,000 patients.

“Now the centre is near their homes, kidney patients are coming twice a week to get their dialysis treatment. Your generous support has saved the lives of our patients.”

Waqf funding also helped to support families still recovering from the devastating impacts of war in Kosova. Rural communities rely on agriculture to earn a living but many cannot afford suitable, modern equipment to make their farms thrive. Islamic Relief provided more than 100 families in Drenas municipality with greenhouses.

“Patients used to travel for hours to get their dialysis treatment before El-Souky Health Center was fully functional,” matron Elsadig says. “Some of the patients passed away because they were too sick to travel… Other patients preferred not to travel for treatment to cut down on transportation costs.

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Harnessing the power of micro-finance

Since 1994, we have provided life-changing Islamic microfinance to people who typically cannot access conventional financial services. With our interest-free Shariahcompliant loans, Islamic Relief empowered over 43,500 people living in poverty to start or expand small businesses this year.

In 2022, we launched Poverty to Profit, a new microfinance crowdfunding platform which links donors in the United States and Canada to disadvantaged people in Pakistan seeking financial support for entrepreneurship. Nearly 1,000 poor people running small businesses have been able to build and improve their livelihoods through the power of the crowd.

2022 also saw our innovative Qurbani Plus programme launch in Mali, Pakistan and Sudan, as well as expand in Niger. The programme creates a sustainable source of income by supporting individuals to rear bulls, goats and sheep for qurbani. With the profits, participants can buy their own livestock or set up a kitchen garden.

Equipping humanitarians with the skills to succeed

In Sudan, we also supported humanitarians in report writing, while in Iraq, our work included delivering advocacy training to the staff of an international NGO, as well as strategic planning training.

As the humanitarian sector continues to develop, the expertise of our Humanitarian Academy for Development (HAD) has been more in demand than ever. In 2022, HAD trained more than 200 humanitarians across six countries, equipping staff at Islamic Relief and other non-governmental organisations with the knowledge and skills to deliver even more positive impact for the vulnerable people we serve.

Tazhan, who works for the National Mine Action Authority (NMAA), says our training in report writing helped to strengthen her problem solving skills, and will put her in a good position to meet her goal of becoming a project manager.

In the Occupied Palestinian Territory, we trained humanitarians working for a variety of organisations in proposal and report writing, helping them to improve the efficacy of their writing and better defend their proposals. As a result of the training, several participants later secured funding for their proposals.

HAD also facilitated internships through the UK government’s Kickstart scheme, which aims to help young people into employment, with several interns going on to work at HAD or elsewhere in Islamic Relief.

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SOME OF OUR VALUED PARTNERS

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STRUCTURE, GOVERNANCE AND MANAGEMENT

INTERNATIONAL GENERAL ASSEMBLY

To meet the changing needs of the Islamic Relief family and the challenging environment in which we operate, the International General Assembly (IGA) has been in operation since 2020, as the highest body of the Islamic Relief Worldwide governance structure. The IGA is made up of representatives elected by and from Islamic Relief member offices. Ultimately, our aim is to have up to a third of the IGA consisting of independent members from outside the Islamic Relief family, helping to bring additional specialist skills and experience, as well as increased diversity and accountability.

The main responsibilities of the IGA are to:

ISLAMIC RELIEF WORLDWIDE BOARD OF TRUSTEES

The Islamic Relief Worldwide Board of Trustees is elected by the IGA, with each trustee elected for a term of four years. The Board is diverse and by the end of 2022 was made up of seven trustees from seven countries across five continents. Each trustee is a volunteer bringing differing skills, knowledge and experience which together will help the organisation develop and respond to key challenges.

The main responsibilities of the Board of Trustees are to:

The responsibilities of trustees can be made more difficult by the scale and complexity of the organisation. To help them fulfil their duties to the best of their abilities each new trustee benefits 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 soon put in place a periodic third-party review and assessment of its effectiveness and its way of working.

Islamic Relief provides training for our trustees to inform them of the key areas they need to know about to carry out their duties and responsibilities effectively and efficiently. We also train Board members and executives, drawing on their experience to strengthen their understanding and application of governance principles in line with best practice.

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OTHER BODIES AND COMMITTEES IN OUR GOVERNANCE STRUCTURE

ISLAMIC RELIEF FAMILY COUNCIL

Alongside the IGA, the organisation’s foremost global governance body, we also have a global executive branch called the Islamic Relief Family Council. This is a forum that brings together the chief executives of Islamic Relief Worldwide and all Islamic Relief member entities to enhance communication, strengthen relationships and provide strategic insight to help improve processes within Islamic Relief Worldwide itself and the wider federation of members.

THE MEMBERSHIP ACCREDITATION COMMITTEE

The Membership Accreditation Committee (MAC) oversees the operations of the Board of Trustees and strengthens accountability within the IGA. The MAC is responsible for making recommendations on the suitability of members (both entities and individuals) to the IGA. These recommendations can potentially include the initial nomination, membership levels, renewals and ending membership. The MAC ensures adherence to the rules governing membership of the IGA and the Board of Trustees.

GOVERNANCE COMMITTEE

The IGA has created a dedicated Governance Committee, which helps to identify best practice for all Islamic Relief entities and ensure compliance with agreed standards, policies and systems.

AUDIT AND FINANCE COMMITTEE

The main purpose of the Audit and Finance Committee is to provide oversight of the financial reporting process, the audit process (internal and external), our system of internal controls, risk management and compliance with laws and regulations.

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KEY PERSONNEL

The chief executive officer (CEO) is accountable to the Board of Trustees and, along with other senior staff, is responsible for our day-to-day 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 101 and 102.

REMUNERATION POLICY

We strive to attract and retain talented individuals based on their passion, commitment, values, knowledge, skills and experience. While the financial dimension is not the foremost basis for engagement, we are keen 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 costeffective and sustainable, and in line with our determination to be ‘lean’, to maximise the amount we spend on our programme work. Following a benchmarking exercise conducted in 2021, all staff received a five per cent pay increase on 1 January 2022. We also offered a one-off cost of living grant of £400 to staff at grade 6 or below on our pay scale, which over 100 staff members benefitted from. In 2022, we established the Remunerations Appointments Committee Plus, which has the responsibility to approve director remuneration, overall policy and increases affecting all staff.

GOVERNING DOCUMENTS

Islamic Relief Worldwide refers to the charity incorporated as a company limited by guarantee in England and Wales. Islamic Relief Worldwide’s governing document, known as Memorandum and Articles, was originally dated 14 March 1989 and amended on 9 August 2010 and the Objects amended on 16 March 2020 to reflect the education, advocacy and broader work of Islamic Relief Worldwide rather than the original ‘alleviation of poverty.’ Islamic Relief Worldwide is registered with the Charity Commission of England and Wales and with the Office of the Scottish Charity Regulator. Other pertinent documents that are now in place with the implementation of the new governance structure and the establishment of the IGA are:

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 52 and 66 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 its trustees.

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 Worldwide.

We recognise that attracting and retaining the best talent requires sufficient flexibility to allow for a case-by-case consideration for particularly exceptional talents, hardto-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. We also encourage and reward opportunities for acting up and secondments within the charity to allow colleagues to learn and develop valuable skills and experience.

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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 five-year Global Strategy and in order to meet this, the Board of Trustees has to pay due regard to the long-term 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 required to achieve the objectives set out in our strategy. A new long-term strategy has been developed during 2022.

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. For example, we conduct general consultation with our colleagues on policies before bringing them to the Board of Trustees for approval. Another example is that of the Gender Equality Steering Group, which is chaired by a trustee, supported by two co-chairs 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 CEO hold regular organisationwide webinars in which colleagues 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 matters raised. We also intend to formalise and strengthen the organisational identity that will underpin the development of the new strategy, with consultation extending to every colleague.

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, which leads to loyalty, mutual respect, trust and openness. Although our vetting processes for on-boarding 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 a committed employee, donor or advocate. Most 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 their time and commitment and offer our recognition through initiatives such as our annual Volunteer Award Ceremony. We have also developed several 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.

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

The Board of Trustees has fully committed the organisation to the Core Humanitarian Standard. This standard puts “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 standard is also adhered to by all of our support departments, such as Finance, Human Resources 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 air travel and making our new headquarters more energy efficient.

MAINTAINING A REPUTATION FOR HIGH STANDARDS OF BUSINESS CONDUCT

Our 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 set out clear standards of behaviour expected from them in the Code of Conduct, which is instilled in them at their induction and subsequently reinforced. We have fostered a culture that abhors bribery and corruption, and actively implements policies to prevent wrongdoing.

Our procurement and ethical vetting procedures ensure that values are a key deciding factor in 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 cover human rights, labour, the environment and anticorruption. In this way we aim to attract and do business with partners who strive for the same high standards, cementing our reputation still further.

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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, co-ordinate 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 Ireland Islamic Relief Kenya Islamic Relief Norway Islamic Relief Pakistan Islamic Relief Spain

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 Indonesia

Islamic Relief Russian Federation Islamic Relief Türkiye

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

Afghanistan Albania

Bangladesh Bosnia and Herzegovina Ethiopia Iraq Jordan

Kosova Lebanon Malawi Mali Nepal Niger Occupied Palestinian Territory The Philippines Somalia South Sudan Sri Lanka Sudan Tunisia* Yemen

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

China India North Macedonia Madagascar Moldova Myanmar Syria

*In early 2022 Islamic Relief stopped operating in China and in 2023 we ended our operations in Tunisia. Programmes in Syria are delivered directly through Islamic Relief Türkiye.

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TRUSTEES’ RESPONSIBILITIES

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.

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

Trustees must keep adequate accounting records that are sufficient to:

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

STATEMENT ON DISCLOSURE OF INFORMATION TO THE 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:

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

The organisation recognises that it is only as good as the staff that it employs. Accordingly, Islamic Relief Worldwide is an equal opportunities employer and we are proud to recruit and promote staff based on aptitude and ability, without discrimination. The steps we take include ensuring ‘blindshortlisting’ when recruiting to new roles, so applicants cannot be identified when we decide who to shortlist for interview. As set out in our Recruitment and Selection Policy, we make all reasonable adjustments necessary for candidates who tell us they have a disability and give full and fair consideration to all applications. It is the policy of IRW that the recruitment, training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. Our policies and procedures fully support our disabled colleagues and we take active measures to do so. The organisation is responsive to the needs of its employees and as such, should any employee of the Charity become disabled during their time with us, we will make reasonable adjustments to their working environment

where possible, in order to keep the employee with the organisation. Determined to do more, we are working to create and embed an Equal Opportunities Policy and to ensure our learning and development opportunities are accessible to all colleagues. We support our employees and actively develop their skills. We encourage all our colleagues to engage with our organisational strategy and objectives and to give their suggestions and views in the development of these. In 2021 we undertook a global staff survey which identified areas to explore but also areas to celebrate. Going forward, this data will help to shape our People and Culture Strategy.

We offer our employees management and leadership development through our Aspiring Managers and Management and Leadership Development programmes in order to enable them to forge career paths within the organisation.

We strive to promote a healthy workplace. This year managers received mental health awareness training; and we trained an additional 10 mental health first aiders. Islamic Relief now has over 30 mental health first aiders offering support and guidance to colleagues. Staff benefitted from a programme of wellbeing initiatives, including webinars on financial, emotional and physical support; healthy snacks and nutrition advice; and a day off work to focus on their wellbeing.

We continue to provide greater flexibility to allow staff to achieve a better work life balance and in 2022 we trialled a hybrid working model to allow staff to continue working from home for most of the week whilst developing a functional return to work premises to enhance cohesion and collaboration and boost morale.

We provide all our UK-based staff with a healthcare cash plan and access to an employee assistance programme which includes online consultations with a doctor. Recognising that our workforce was also affected by the cost of living crisis, we provided staff on lower salaries with a lump sum to help ease the strain.

VOLUNTEERS

The commitment and passion of our network of volunteers continues to contribute greatly to the success of Islamic Relief Worldwide. These dedicated volunteers have been instrumental in supporting every aspect of our operations: across our shops, administration, fundraising and campaigning activities. Our active management of volunteers enables us to deploy them in the most effective way and enhances their experience.

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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 our International Fundraising and Partner Development departments, which help new member offices establish themselves and grow, as well as strengthen links with institutional donors around the world. In the UK, we engage donors and fundraise through our strategic business unit, 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. Management regularly monitors the performance of the fundraising teams 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 its Fundraising Promise. Islamic Relief is also a member of the Institute of Fundraising. Our fundraising uses several different approaches, which include the following:

organisations to fundraise on our behalf, subject to contractual agreements and requirements to meet the same standards observed by Islamic Relief Worldwide in our fundraising practices.

CHARITY WEEK

A student volunteer led campaign, Charity Week engaged more than 5,000 volunteers across the globe and saw 107 UK educational institutions take part in the event. The project was run by 189 core volunteers who worked closely with our fundraising team. They received formal training and support to deliver an effective campaign which raised a total of £923,311 domestically.

CODE OF FUNDRAISING PRACTICE

In 2022 we developed and rolled out a new Data Retention Policy, outlining suitable time limits on how long personal data is held by Islamic Relief. We also made improvements to mandatory training for all staff by issuing reminders and tying this training to the staff appraisal process. The Islamic Relief website has also been updated to ensure those participating in fundraising challenge events are aware of age restrictions, fitness levels and training/preparation required at the point of sign up. In 2023, we will continue working on developing policies including our Donor Refund Policy and Donor Care Policy, as well as integrating the Code of Fundraising into our existing policies and procedures.

COMPLAINTS HANDLING

We pride ourselves in having an opendoor policy, providing stakeholders with transparency and an opportunity to give us feedback on their experience. However, there may be times when we do not meet the high standards we set ourselves. For such instances, we have a Fundraising Regulator-approved complaints policy in place. We try to make it easy for concerns and complaints to be raised via our website, where our complaints policy can be found. Complaints are captured centrally, dealt with in accordance with the process laid out in the policy and reported to the Fundraising Regulator through the annual return. In 2022 we received 44 complaints, each of which was dealt with in accordance with our 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 2022 and up to the date of approval of this report.

PROTECTING VULNERABLE PEOPLE

Islamic Relief Worldwide abides by the Fundraising Regulator’s Code of Fundraising Practice and ensures our colleagues and volunteers are fully briefed about the protection of vulnerable people. We brief staff and volunteers about best practice before they undertake any fundraising, making them aware of the need to identify, respect, support and protect vulnerable people.

Most of our activities were carried out by our own staff and volunteers. Islamic Relief Worldwide occasionally engaged third-party

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PRINCIPAL RISKS AND UNCERTAINTIES

The circumstances in which Islamic Relief Worldwide operates can be complex and challenging, including areas of desperate need whose economies are fragile or failing, and conflict zones where sanctioned organisations are active. Some risk is inevitable for our operations in the context of the security, political and financial challenges we face.

With over 39 years of institutional knowledge and experience in over 40 countries, we have in place an active assurance framework and risk management protocols to manage and mitigate risk across the charity and our areas of operation. Our operational risk management is supported strongly by our Board of Trustees: their active oversight ensures that we do all we can to safeguard our people and the communities we serve, as well as to protect the funds and assets entrusted to us and the reputation of Islamic Relief Worldwide.

ASSURANCE FRAMEWORK

Our Board is supported by a dedicated Audit and Finance Committee (AFC). The AFC is responsible for ensuring that Islamic Relief Worldwide has robust systems of internal control, financial compliance, safeguarding, complaints management and audit to manage risk and to take advantage of emerging opportunities.

Assessing and mitigating risk is central to our governance and management. Risks are regularly reviewed, reported and acted upon at Board of Directors level, divisionally and in country office teams. In 2022 we further strengthened our risk mitigation measures by raising staff awareness through internal campaigns about fraud and cybersecurity risks and establishing dedicated and regular counter-fraud reporting directly to the AFC.

We also have an independent Internal Audit function reporting to the AFC. This ensures that there is professional oversight and assurance of adherence to risk management policies and procedures, as well as effective mitigation actions when needed.

RISK PROCESSES

We conduct risk and assurance assessments periodically in every country office and functional division, alongside the strategiclevel leadership of the senior executive and Board of Trustees. We are assisted in this by our use of a comprehensive risk management solution across all our offices in the UK and internationally, ensuring a consistent and coherent approach to risk monitoring, reporting and mitigation. Our key processes include:

SIGNIFICANT RISKS

We have identified the following significant risks at an organisational level. The executive monitors specific indicators relating to each risk, and implements specific actions with oversight from Internal Audit, the AFC and the Board of Trustees.

FOOD INSECURITY

A significant risk to Islamic Relief’s operations and potentially also to the fundraising that underpins them has been the sharp increase in food insecurity across the world in 2022. Supply chain and living costs have been adversely affected by global economic stagnation, rising inflation and the effects of the war in Ukraine on the availability of food and fuel.

The impact on Islamic Relief’s operations has included:

We are responding to these challenges in a number of ways:

• An increased focus on, and resourcing for, domestic food security programmes to meet increased demand from affected communities in traditional fundraising countries, and to ease the hardships of donor communities.

SAFEGUARDING

Safeguarding continues to be a high priority for Islamic Relief Worldwide. This year we established a dedicated global team, evidencing the organisational commitment in safeguarding with further plans to expand. Over the past few years, the capacity of safeguarding staff in country offices has continued to improve and evolve.

We implemented an ambitious schedule of bespoke safeguarding and dignity at work training. All country office staff have continued to increase their knowledge and practices around safeguarding particularly around protection from sexual exploitation, sexual abuse and sexual harassment; workplace bullying; welcoming and raising complaints; and how we can best protect vulnerable people from experiencing harm.

Building upon the achievements of a safeguarding programme that built capacity of five country offices in 2020, a subsequent project has replicated its success, building capacity in an additional eight countries. This two-year project to strengthen safeguarding mechanisms continues to build staff capacity around safeguarding, raise community awareness – particularly for those at risk such as people with disabilities – and build engagement with faith leaders to establish a community-led approach to safeguarding. Islamic Relief is developing a new tool to increase awareness of safeguarding amongst children of all ages and abilities in our projects and programmes.

Ongoing, robust safeguarding training is critical in preventing sexual exploitation, abuse and harassment. This year, 27 specialist safeguarding professionals across the 25 country offices came together to attend a Global Safeguarding Summit in Turkey. The conference included training and sharing best practice around safeguarding across the wide range of contexts in which we operate.

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Our collective efforts to raise awareness and improve reporting mechanisms have contributed to an increase in the number of people coming forward to report concerns. In 2022, the safeguarding team received a total of 42 cases. Of these 21 related to staff, some of which led to investigations and formal disciplinary action. Nineteen cases related to the community and did not involve Islamic Relief staff, volunteers or representatives. These figures are comparable to cases in 2021, indicating that communities, staff and volunteers trust in our complaints and feedback response mechanisms.

Communities continue to be at the forefront of reporting and preventing cases of sexual exploitation, abuse and harassment and protecting vulnerable members of their societies. The trust and relationship that communities have with Islamic Relief has led to greater accountability and open dialogue. Islamic Relief continues to adhere to best practice when investigating breaches of safeguarding policies, with the needs of the survivor always at the heart of our response.

CYBERSECURITY

Islamic Relief Worldwide takes cybersecurity and data protection very seriously. We have strong security measures in place to protect our data in a context in which there continues to be a high risk from phishing, malware and ransom attacks across all sectors.

Throughout 2022 we continued to strengthen our security provisions to protect our data and our underlying operating environment. We have seen cybersecurity threats increase in sophistication and number this year, so our approach has been to continually review our defences and the effectiveness of our countermeasures, with particular focus on high-risk assets and data.

As a consequence of our digital transformation programme, IT systems have a significant and increasing importance in the delivery of our mission. We recognise that operations could be adversely affected by IT system outages or by cybersecurity breaches. In this context we continue to train staff in cybersecurity awareness as part of the organisation’s mandated annual training programme, and we regularly review our IT and security risk posture at board level.

GOVERNANCE AND REPUTATION

Good governance across our global family is essential to fulfil our mission effectively, in alignment with our own values and with the needs and expectations of the communities we serve, our staff, our donors and other stakeholders.

Given the fragile and turbulent international context in which we work, it is essential to maintain high standards in our global governance and sustain momentum in the implementation of progressive governance

reforms. It is also important to be proactive in managing threats to Islamic Relief Worldwide’s reputation, and to be open and accountable in providing information and assurances to our key external stakeholders concerning governance and reputational matters. All Islamic Relief offices continue to enact complementary plans to deliver good governance under the new governance model introduced in 2020, as well as implementing additional governance reform recommendations stemming from the Independent Commission report published in January 2021.

All senior executives and board members of every member entity in the Islamic Relief family are screened using the Refinitiv World Check software favoured by the international finance sector, to ensure we do not engage anyone with links to proscribed entities or individuals on global watch lists. As part of our appointment processes, all senior executives and board members also have their personal social media accounts reviewed by a specialist independent monitoring agency. The agency’s reports are shared with our Membership Accreditation Committee, which is empowered to veto appointments if necessary to uphold our values.

In 2022 our International General Assembly, which elects and oversees our Board of Trustees, appointed its first two independent members, identified through competitive public recruitment from a pool of candidates unlinked to any Islamic Relief member entities. In 2023 these independent IGA members will be added to our Board of Trustees after a year’s service on the IGA, ensuring that the diversity and wider accountability of the board is further enhanced. All our trustees receive rigorous, bespoke induction and ongoing governance training.

Islamic Relief Worldwide continues to refute false or misleading adverse media reports to protect its own standing and the reputation of its partners. This work involves challenging media outlets to amend or remove false content, or to give Islamic Relief a suitably prominent right of reply, as well as setting the record straight with stakeholders when required.

FRAUD AND CORRUPTION

Risk is always present in challenging environments, humanitarian emergencies and other contexts in which Islamic Relief operates – so we must ensure funds and resources are not lost.

Islamic Relief Worldwide therefore continues to develop holistic counter-fraud resilience, which involves nurturing a counter-fraud culture across all Islamic Relief entities. We have recently defined and updated our counterfraud roles, and are reviewing our strategy and planning to increase resourcing for fraud risk reduction.

Over the past year, we have enhanced our control processes and standardised procurement across country offices. We will audit these to assess their effectiveness.

FINANCIAL RESILIENCE

Islamic Relief continually monitors and responds to financial risks and opportunities, particularly the evolving economic environment in the UK and internationally as this affects the economic outlook for our funders, donors and the communities we serve.

An important part of our financial resilience is maintaining close working relations and communications with our key financial partners, whose expertise and engagement are vital in a global context in which some financial providers choose not to engage with the humanitarian aid sector because of risk concerns that are often misplaced. Another important discipline is continually monitoring our reserves to ensure that we strike the appropriate balance set out in our reserves policy. This requires us to maximise the funding we transfer as swiftly and effectively as possible to programmes delivering our global charitable mission, while maintaining a modest but prudent cushion of operational costs in reserve to absorb any financial shocks and thereby protect our future operations. In 2022 the economic environment has been one in which sharply rising inflation, increasing costs for food aid and fuel in our aid programme delivery and the impact of cost-of-living challenges on food security and fundraising in our donor communities have all come into sharp focus – see ‘food insecurity’ section above for further information. An important priority financially, operationally and reputationally this year and every year is delivering aid in conflict zones and other complex environments while meeting the often-complex requirements of international sanctions, counter-terrorism regulation and bank compliance regimes. Islamic Relief continues to maintain strong relationships with its financial services providers to help us achieve this, and new partnerships were forged in 2022 to scale up funding for our programmes in Afghanistan in particular – vital in a context of severe drought, strict sanctions and economic collapse. Our Treasury team’s efforts in this area are supported and enhanced by the knowledge and insight gleaned from Islamic Relief’s membership of the UK Home Office’s Tri-Sector Group, which brings leading aid agencies, banks and government together to address sanctions challenges and overcome financial hurdles in transferring funds.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

STREAMLINED ENERGY AND CARBON REPORTING REQUIREMENTS (SECR)

This 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.

In 2022, Islamic Relief continued to push for climate justice through our policy, campaigning and advocacy work. Our new Climate Policy endorsed every ethical action to eliminate greenhouse gas emissions and restrict the global temperature rise to 1.5 degrees. We bolstered the case for climate action with research papers detailing how the climate crisis is affecting vulnerable

communities, drawing on our extensive experience helping them adapt – with 17 dedicated projects reaching 456,000 people this year. 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.

NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
NARRATIVE TABLE
[+ve denotes 2022 higher than 2021; -ve denotes 2022 lower than 2021]
VARIANCE
SECR 2021 BASE YEAR
(01/01/21 - 31/12/21)
SECR 2022 REPORTING YEAR
(01/01/22 - 31/12/22)
Base year 2021 less 2022
[+ve denotes reduction -ve denotes increase]
SECR
Scope No
Energy source Energy
(kWh/yr)
Emissions
(tCO²e/yr)
Energy
(kWh/yr)
Emissions
(tCO²e/yr)
Energy
(kWh/yr)
Emissions
(tCO²e/yr)
Emission (%)
against base
year total
Scope 1 Natural gas 354,502 64,9 366,426 66.9 -11,924 -2.0 -0.5%
Scope 2 Grid electric 568,337 120.7 628,164 121.8 -59,827 -1.1 -0.3%
Scope 1 Transport(Islamic Relief owned) 641,961 151.5 576,276 143.2 65,585 8.3 2.1%
Scope 3 Transport(business travel in
rented or fuel paid by Islamic Relief
Worldwide to employee-owned
vehicles i.e. grey mileage)
33,190 6.6 79,168 18.8 -45,978 -12.2 -3.1%
Scope 3 Public rail and air travel
(without RF³)
44.0 12.7 31.3 8.1%
1,597,989
Grand total
1,650,134
387.6
363.4
24.2
6.2%
-52,145
£183,751,173
2.110
£234,180,000
1.553
Annual income / Turnover¹
Intensity Ratio i.e. KPI ²

Note

³ RF = Atmospheric Radiative Force. OnlyCO2 data available

Methodology

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 2022 were used for converting energy (kWh) to tCO2e.

In the UK Islamic Relief has 24 sites – including shops and a factory – as well as transport. 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 used by the charity have also been included in this exercise and cover:

Energy management

Islamic Relief has made significant changes in the way our offices operate, with hybrid working at all our major office sites requiring colleagues to attend only six days per month. When staff want or need to work from the office at other times, we provide desks in reserved areas in which we carefully control the heating and lighting. We have made only limited investment in our head office, since we are planning to move to a new site, the renovation of which was delayed by the effects of the Covid-19 pandemic. However, across all our sites we take care to ensure we provide a safe working environment while limiting consumption as much as possible by closely monitoring our energy and water usage. To ensure we record energy usage correctly, we are installing smart meters across our sites.

There were no further capital investments made since the last SECR 2020 report. Other energy saving technologies are being incorporated in the new building, Trafalgar House. No other estate site changes were declared.

The TIC International Plant was responsible for recycling 1,931 tonnes of clothing and shoes in 2022. As well as generating an income for Islamic Relief, this activity supported our sustainability objectives and prevented items going to landfill. Islamic Relief is committed to climate sustainable interventions in numerous countries. This includes interventions such as introducing solar energy to generate electricity for businesses, allowing more land to be irrigated or women-led businesses to stay open longer; providing environmentally friendly fuel and stoves; and promoting efficient agriculture practises such as half moon agriculture. There are examples of such projects throughout this Annual Report, particularly pages 33-35, and within our Climate Policy, which is available on our website.

TIC’s key role is generating income for Islamic Relief, to support our programmes and our journey towards Net-Zero, by performing a valuable environmental service in recycling clothing that may otherwise end up in landfills and harming the environment.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

FINANCIAL REVIEW

Islamic Relief set out our financial performance in 2022 and the review of our position at the end of the year, but our charitable activities do not end at the financial year end: we continue our programmes to support vulnerable people. In the final month of 2022, we secured significant contributions for the 2023 pipeline of funding projects, achieving a high level of liquidity, boosting our cash held.

Earlier sections of this report illustrate Islamic Relief’s response to humanitarian disasters, delivering ongoing support to families suffering in the aftermath of the Pakistan floods and the displacement and hunger crisis in Afghanistan. Our financial position also enabled us to respond swiftly when earthquakes devastated communities in Türkiye and Syria.

Islamic Relief continually manages our financial risk and reserves, including assessing going concern, to achieve our mission.

Financial performance

INCOME AND FUNDRAISING

Islamic Relief generates income primarily from three sources:

Thanks to the generosity of our donors and funders, in 2022, our total income increased by 28 per cent to £234 million (2021: £183 million).

Islamic Relief is grateful for the donors and funders in the UK and globally, who contribute to Islamic Relief member offices, enabling them to fund an increasing number of vital projects. The growth areas for income generation have been across the UK, North America and Europe.

Grants from institutions and other major donors have increased compared to with prior years and reflect Islamic Relief’s enhanced engagement with institutions and other significant donors, and our efforts to empower poorer communities. We continue to monitor the impacts of the ongoing global economic impact of the Ukraine crisis, the cost of living and the continued impacts of the Covid-19 pandemic.

Funding from Islamic Relief members’ offices remained the most significant stream, at £145 million (2021: £123 million). This included income to fund critical projects from Islamic Relief offices across North America and the UK, which includes support for our Pakistan flood response.

Our UK donors continue to demonstrate their generosity, with committed giving and responses to appeals increasing despite the economic impacts of the cost-of-living crisis. The 2022 financial year ended with Islamic Relief collaborating with the DEC and fellow member agencies in a joint appeal for the humanitarian crisis in Afghanistan and Pakistan, and starting 2023 by partnering on the humanitarian response to the Türkiye and Syria earthquakes.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

EXPENDITURE

Islamic Relief’s expenditure falls into three main categories:

Total charitable expenditure increased to £174 million from £157 million in 2021, which has allowed us to reach 17.3 million vulnerable people globally. Our most significant spend was on humanitarian programmes, with £113 million (2021: £84 million) spent responding to many prolonged and complex humanitarian disasters, including in Afghanistan, Pakistan, Yemen and East Africa.

Beyond humanitarian response, Islamic Relief brings about long-term change, empowering communities and individuals to be self-sufficient. A flagship programme continues to be our ‘Caring for Children and Orphans,’ with Islamic Relief investing £33 million (2021: £34 million) to achieve longterm and short-term benefits for vulnerable families.

Other long-term programmes aimed at achieving social change include spending £12 million (2021: £18 million) to give communities access to healthcare and water and £4 million (2021: £4 million) on supporting education.

‘Sustainable livelihoods’ programming builds financial inclusion in low-income countries, so poorer people can become financially self-sufficient. In 2022 our microfinance programmes supported 43,500 people living in poverty, with £10 million (2021: £13 million) invested into this programme.

As always, the expenditure detailed above has been in accordance with our donors’ wishes as per the campaigns they have supported. Further details are available in notes 9 and 10.

Trading activities

TIC

TIC International Ltd (TIC) is a wholly owned subsidiary that undertakes the trading activities of clothes recycling and manages a network of charity shops.

TIC’s key role is generating income for Islamic Relief to support our programmes and our journey towards Net-Zero by performing a valuable environmental service in recycling clothing that may otherwise end up in landfills and harming the environment.

Beyond TIC’s business activities, over the past decades it has played a crucial role in the Midlands, UK in employing local communities and support networks across its workforce. This has resulted in the longterm impact of economic progress for its workforce, as its children achieve further education and enhanced employment.

In 2022, 1,931 tonnes of unwanted clothing (2021: 1,518 tonnes) were converted into either income through re-selling quality clothing through Islamic Relief shops or recycling to generate profits to fund Islamic Relief humanitarian projects. This raised £242,000 (2021: £78,000), thanks to TIC’s dedicated staff, who rose to the economic outlook challenges in the UK.

INTERNATIONAL WAQF FUND

We established the International Waqf Fund (IWF) to support Islamic Relief investments’ long-term financial sustainability to generate social impact returns. This is known as waqf in Islamic terminology. Impact investments such as waqf reduce the dependency on donations and grants by generating an annual yield that is used to fund our programming.

IWF seeks to raise contributions to its waqf fund towards the goal set by the donor, with the donation achieving ongoing impact, year after year, into perpetuity.

The IWF Board of Trustees recognises that with all investments, it is crucial to manage risks and ensure that investment management capability, the purpose of deployment and impact, and effective administration and investment readiness are in place. The IWF endowments fund is at £1.7 million in 2022 (2021: £1.1 million).

ENDOWMENTS

Islamic Relief Worldwide continues to hold endowments that are invested in UK property. Returns from these investments are used for our humanitarian and development social impact programmes, as specified by the donors. Due to ongoing waqf donations and investment returns, the endowment fund grew to £8.4 million (2021: £8.3 million).

FINANCIAL RESULTS AND CLOSING RESERVES

Islamic Relief reported a surplus of £40.9 million in 2022 (2021: £9.4 million). This is made up of unrestricted reserves of £4.9 million (2021: £1.6 million) and restricted funds of £35.9 million (2021: £7 million) with an endowment fund of £0.5 million (2021: £0.7million).

Restricted reserves include funds secured for ongoing programmes into 2023 and beyond and those secured for the 2023 pipeline of programmes.

Unrestricted funds include income generated from our general income generation activities through general fundraising activities and income earned by our trading subsidiaries. This funds Islamic Relief’s operating and programme support costs.

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RESERVES POLICY

Islamic Relief’s unrestricted reserves on 31 December 2022 were £19.2 million (2021: £14.4 million). This includes funds designated to fund Islamic Relief’s ongoing programmes. The free reserves are £17 million (2021: £8.7 million), representing eight months of operational budget. Total reserves are £110 million (2021: £69m), representing £82 million in restricted funds - the increase is funding for pipeline projects that will continue in 2023, and funds expensed. Endowment funds of £8.4 million (2021: £8.3 million) are invested in our property portfolio that generates a return.

We hold free reserves to:

The Board of Trustees and the Audit and Finance Committee annually reviews the reserves policy and the target for unrestricted reserves. The Board of Trustees and Audit and Finance Committee reviews the effectiveness of holding these funds by considering liquidity, security and investment risk.

The Board considers the level of free reserves remains an appropriate target considering Islamic Relief’s size, operations and the financial risks to which it is exposed. The Board has reviewed the Reserves Policy post-financial year-end and considered future activities.

GOING CONCERN

The Board of Trustees has assessed Islamic Relief Worldwide’s ability to continue as a going concern. The trustees have considered numerous factors when concluding whether the organisation continues to be a going concern and have also considered the key risks, including the ongoing cost of delivery, rising costs and inflation, and the cost-ofliving crisis that could negatively impact the charity.

The critical risk in our financial model is a fall in income and our ability to deliver charitable activities, leading to the lower recovery of core costs. We are mitigating the risk of lower core costs through a revised business model agreed upon with Islamic Relief family members and are identifying forward-thinking initiatives to mitigate further. The Islamic Relief Family Council has set up a multi-stakeholder Business Model Committee, which oversees the business model.

Our unrestricted core income is funded by fundraising and income-generation activities. Despite the ongoing geo-political and economic impacts, our financial results continue to see signs of generous giving by our donors, who continue to support generously across the UK, North America and Europe. This has led to a further record £234 million raised in total income.

Our pipeline for 2023 projects is already secured. It continues to be very healthy, with an influx of £68 million of cash into our bank accounts in December 2022 for 2023, enabling us to plan for the coming year with more certainty. We have repaid our bank loan, and no bank borrowings are required. Scenario planning has taken place, and worst-case scenarios have been considered, with a headroom reduction of 40 per cent factored in.

We have begun our new 10-year strategy, supported by a financial plan and our work to positively impact climate change and NetZero initiatives.

After considering these factors, the Board of Trustees has concluded that the charity remains a robust going concern and has adequate resources to continue delivering for the foreseeable future. The Board has therefore prepared the financial statements on a going concern basis.

Dr Ihab M.H. Saad Chair of the Board of Trustees Islamic Relief Worldwide

Date: 31 May 2023

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS 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 2022, which comprise the Group Statement of Financial Activities and Income and Expenditure Account, Parent Charitable Company Statement 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:

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 group’s and the parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our 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 group or parent charitable company to cease to continue as a going concern.

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

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

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

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

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

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 material misstatements in the Strategic Report or the Directors’ Report included in the Annual Report.

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:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the 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.

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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

• We understood how the group is complying with these legal and regulatory frameworks by making inquiries of management and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of

board and other minutes and through our legal and professional expenses review;

• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would

become aware of it;

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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

William Devitt FCA Senior Statutory Auditor

for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants Birmingham

Date: 31 May 2023

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

FINANCIAL STATEMENTS 2022 Group statement of financial activities and income and expenditure account for the year ended 31 December 2022

----- Start of picture text -----
Unrestricted Restricted Endowments Total Total
funds funds funds 2022 2021
Income and endowments from: £’000 £’000 £’000 £’000 £’000 Notes
Donations and legacies 13,377 186,384 399 200,160 166,893 2
Other trading activities 3,788 - - 3,788 3,518 3
Investments - - 554 554 536 4
Charitable activities - 29,678 - 29,678 11,993 5
Total 17,165 216,062 953 234,180 182,940
Expenditure on:
Raising funds:
Costs of generating voluntary
income - 14,915 - 14,915 12,770 10a
Fundraising trading: cost of
goods sold and other cost 3,546 - - 3,546 3,095 10a
Investment management cost - - 424 424 456 10a
Charitable activities 9,161 165,177 - 174,338 157,216 10a
Total 12,707 180,092 424 193,223 173,537
Net income 4,458 35,970 529 40,957 9,403
Transfers between funds 443 - (443) - 26
Subsidiary funds bought
forward on consolidation 5 - - 5 10
Net movement on funds 4,906 35,970 86 40,962 9,413
Reconciliation of funds:
Total funds brought forward 14,370 46,488 8,391 69,249 59,836
Total funds carried forward 19,276 82,458 8,477 110,211 69,249
----- End of picture text -----

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Parent charitable company statement of financial activities and income and expenditure account for the year ended 31 December 2022

----- Start of picture text -----
Unrestricted Restricted Endowments Total Total
funds funds funds 2022 2021
Income and endowments from: £’000 £’000 £’000 £’000 £’000 Notes
Donations and legacies 13,609 186,386 - 199,995 166,192 2
Investments - - 140 140 536 4
Charitable activities - 29,678 - 29,678 11,994 5
Total 13,609 216,064 140 229,813 178,722
Expenditure on:
Raising funds
Costs of generating voluntary income - 14,915 - 14,915 12,769 10a
Investment management cost - - 55 55 89 10a
Charitable activities 9,161 165,177 - 174,338 157,215 10a
Total 9,161 180,092 55 189,308 170,073
Net income 4,448 35,972 85 40,505 8,649
Subsidiary funds bought forward on
consolidation 5 - - 5 10
Net movement on funds 4,453 35,972 85 40,510 8,659
Reconciliation of funds
Total funds brought forward 12,838 46,489 8,392 67,719 59,060
Total funds carried forward 17,291 82,461 8,477 108,229 67,719
----- End of picture text -----

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Group and charity balance sheets as at 31 December 2022

----- Start of picture text -----
2022 total funds 2021 total funds
Group Charity Group Charity
Fixed assets £’000 £’000 £’000 £’000 Notes
Intangible assets 856 856 9 9 13
Tangible assets 8,391 8,157 8,173 7,994 14,15
Investments 169 1,045 169 1,045 16
Total fixed assets 9,416 10,058 8,351 9,048
Current assets
Stocks and work in progress 127 - 127 - 17
Debtors due within one year 18,201 18,072 7,199 6,780 18
Cash at bank and in hand 125,120 124,336 92,687 92,054 19
Total current assets 143,448 142,408 100,013 98,834
Liabilities
Creditors: amounts falling due within
one year 42,653 44,237 35,615 36,663 20
Net current assets 100,795 98,171 64,398 62,171
Total assets less current liabilities 110,211 108,229 72,749 71,219
Creditors: amounts falling due after
more than one year - - 3,500 3,500
Total net assets 110,211 108,229 69,249 67,719
Total funds of the charity:
Unrestricted funds general 19,276 17,291 14,370 12,838
Restricted income funds 82,458 82,461 46,488 46,489 26
Endowment funds 8,477 8,477 8,391 8,392 27
Total funds 110,211 108,229 69,249 67,719
----- End of picture text -----

Dr Ihab M.H. Saad

Chair of the Board of Trustees, Islamic Relief Worldwide

Date: 31 May 2023

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

Group cash flow statement for the year ended 31 December 2022

----- Start of picture text -----
Reconciliation of net income to net cash flow from operating 2022 2021
activities £’000 £’000
Net income for the reporting period as per the statement of financial
activities (excluding cash flow from endowments) 40,871 9,063
Adjustments for:
Depreciation 393 361
Impairment Loss - 1,430
Decrease/(Increase) in stocks - 58
Decrease/(Increase) in debtors (11,002) (238)
(Decrease)/Increase in creditors 3,537 11,006
(Gains)/ Loss on foreign exchange 4,266 (2,640)
Net cash provided by operating activities 38,065 19,040
Cash flows from investing activities
Purchase of intangibles (847) -
Purchase of property, plant and equipment (587) (391)
Proceeds from the sale of property, plant and equipment (17) 28
Net cash provided by (used in) investing activities (1,451) (363)
Cash flows from financing activities
Endowment (waqf) 85 351
Net cash provided by financing activities 85 351
Net increase in cash and cash equivalents 36,699 19,028
Cash and cash equivalents at the beginning of the reporting period 92,687 71,019
Change in cash and cash equivalents due to exchange rate movements (4,266) 2,640
Cash and cash equivalents at the end of the reporting period 125,120 92,687
Consisting of:
Cash at bank and in hand 125,120 92,687
----- End of picture text -----

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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). The subsidiaries consolidated into these financial statements have produced their financial statements to 31 December 2022.

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.

Our pipeline for 2023 projects is already secured. It continues to be very healthy, with an influx of £68 million of cash into our bank accounts in December 2022 for 2023, enabling us to plan for the coming year with more certainty. We have repaid our bank loan, and no bank borrowings are required. Scenario planning has taken place, and worst-case scenarios have been considered, with a headroom reduction of 40 per cent factored in.

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.

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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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 straight-line basis.

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

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. Cash and cash equivalents

Cash at bank and cash in hand includes noninterest-bearing accounts held at call with banks, and cash at hand. Cash equivalents includes monies deposited for less than 120 days or available within a 120-day notice period, without interest penalty.

Much of our pipeline for 2023 projects is already secured and continues to be very healthy with an influx of £68 million of cash into our bank accounts from October to December 2022 for 2023.

l. Stocks

Stocks and Inventories are stated at the lower of cost and estimated selling price less costs to sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the state of completion.

m. Investments

Investments consist of unlisted investments, subsidiary undertakings, and property. Investments in shares are included at fair value. Investmentproperty is included at market fair value. Gains are recognised in the statement of financial activities.

n. 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.

o.Debtors

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

p. 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.

q. 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.

r. 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.

s. 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.

Non-exchange transaction

The trading subsidiary’s (TIC International) donated goods for sale in the shops and in the recycling operation are measured at sales prices when sold.

Estimating the fair value of donated goods for resale is considered impractical because of the volume of low value items received, the absence of detailed stock control systems in the shops and market factors.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

2. Donations and legacies

Donations, appeals and
fundraising events
Unrestricted
funds
£’000
Restricted
funds
£’000
Endowment
funds
£’000

Total
2022
£’000
Total
2021
£’000
Notes
United Kingdom*
11,954
32,294
-
44,248
37,583
Islamic Relief members
904
144,555
-

145,459
122,686
6
Network resource
development**
519
8,205
399
9,123
5,701
Disasters Emergency
Committee***
-
1,330
-
1,330
923
Total
13,377
186,384
399
200,160
166,893

£154,494 of Aid Match funding from the Foreign, Commonwealth & Development Office (FCDO), for a longterm development project in Ethiopia. The project aims to reduce vulnerability and strengthen the capacity of pastoralist households to withstand drought shock in Ethiopia.

Gift Aid tax recovered on donations made by UK taxpayers.

**Network resource development 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

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

3. Other trading activities

Total Total
2022 2021
Trading subsidiaries £’000 £’000
TIC
Income from charitable shops
Clothes recycling income
1,404
2,384
960
2,558
Total 3,788 3,518

4. Investments

Total Total
2022 2021
£’000 £’000
Return
Total
on waqf 554
554
536
536

Return on waqf’ represents the income generated by investments made using waqf (endowment) assets.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

5. Charitable income by institution

----- Start of picture text -----
Protecting life and Empowering Total Total
dignity 2022 communities 2022 2022 2021
Name £’000 £’000 £’000 £’000
United Nations Development Programme 20 19,045 19,065 1,003
Islamic Relief Netherlands 2,164 2,814 4,978 4,557
Islamic Relief Belgium 1,221 875 2,096 2,333
United Nations OCHA 896 564 1,460 1,172
Qatar Red Crescent 634 - 634 -
ShelterBox 566 - 566 -
Islamic Development Bank 38 340 378 474
Sheikh Abdullah Al Nouri Charity – Kuwait 60 13 73 213
CARE Deutschland (CARE Germany) 65 - 65 -
World Vision UK 44 - 44 -
Finn Church Aid 26 - 26 18
UNAIDS 20 - 20 -
United Nations Population Fund - 20 20 -
United Nations Office for Project Services - 18 18 20
Catholic Agency for Overseas Development (CAFOD) 18 - 18 99
Qawafil for Relief & Development 14 - 14 56
Royal Netherlands Embassy - 12 12 -
Oxfam 9 - 9 -
Plan International 4 - 4 -
Save the Children 3 - 3 429
Arab Fund for Economic and Social Development - - - 165
Kuwait Zakat House - - - 139
Qatar Charity - - - 137
International Islamic Charitable Organisation Kuwait - - - 18
Salam Organisation for Humanitarian & Charitable - - - 14
Activities
United Nations Children Fund (UNICEF) - - - 368
Stichting Zoa - - - 120
Swiss Federal Department of Foreign Affairs - - - 96
World Vision Germany - - - 90
Danish Refugee Council (DRC) - - - 87
US Agency for International Development - - - 57
United Nations Joint Programme on HIV/AIDS - - - 19
Catholic Relief Services (CRS) - - - 1
Subtotal 5,802 23,701 29,503 11,685
In-kind donations
Qatar Charity 175 - 175 308
Total in-kind donations 175 - 175 308
Total (including in-kind donations) 5,977 23,701 29,678 11,993
----- End of picture text -----

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

5. Charitable income by institution (continued)

TOTAL CHARITABLE INCOME BY INSTITUTION

----- Start of picture text -----
26
24
22
20
18
16
14
12
10
8
6
4
2
0
United Islamic Relief Islamic Relief United Qatar Red ShelterBox Other
Nations Netherlands Belgium Nations Crescent
Development OCHA
Programme
£19,065,000
£Millions
£4,978,000
£2,096,000
£1,460,000
£696,000
£634,000 £566,000
----- End of picture text -----

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

6. Donations disclosure by member

----- Start of picture text -----
Protecting life Empowering
and dignity 2022 communities 2022 Total 2022 Total 2021
Name £’000 £’000 £’000 £’000
Islamic Relief USA 35,819 31,181 67,000 54,388
Islamic Relief Canada 18,786 18,332 37,118 29,833
Islamic Relief Sweden 8,455 5,311 13,766 14,024
Islamic Relief Germany 8,603 4,728 13,331 11,227
Islamic Relief Switzerland 2,716 2,759 5,475 4,702
Islamic Relief South Africa 1,161 2,019 3,180 3,352
Islamic Relief Australia 956 819 1,775 1,355
Islamic Relief Mauritius 393 757 1,150 1,062
Islamic Relief Malaysia 585 201 786 758
Islamic Relief Ireland 198 328 526 615
Islamic Relief Bosnia and
Herzegovina 586 5 591 531
Islamic Relief Spain 183 182 365 367
Islamic Relief Italy 164 76 240 316
Islamic Relief Norway 119 37 156 156
Total 78,724 66,735 145,459 122,686
----- End of picture text -----*

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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

7. Results from trading subsidiaries

----- Start of picture text -----
TIC TIC
International International International International
Limited Waqf Fund Total 2022 Limited Waqf Fund Total 2021
£’000 £’000 £’000 £’000 £’000 £’000
Subsidiary trading income 2,384 1,029 3,413 2,558 764 3,322
Income from charitable
shops managed by TIC
International Limited 1,404 - 1,404 960 - 960
Total 3,788 1,029 4,817 3,518 764 4,282
Operating and
administrative costs 3,546 369 3,915 3,096 368 3,464
Net profit for the year 242 660 902 422 396 818
Amounts gift aided to
Islamic Relief Worldwide 454 - 454 78 - 78
Retained in subsidiary - 659 659 344 396 740
The assets and liabilities of the
subsidiaries were:
Fixed assets 230 3 233 174 3 177
Current assets 1,013 1,630 2,643 1,313 1,110 2,423
Current liabilities (139) 124 (15) (176) (14) (190)
Total net assets 1,104 1,757 2,861 1,311 1,099 2,410
Aggregate share capital
and reserves 1,104 1,757 2,861 1,311 1,099 2,410
----- End of picture text -----

In 2022 a Gift Aid payment of £453,846 (2021: £78,459) was received from TIC International Ltd representing the taxable profits generated by the company in 2021.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

8. Governance

Activities
Activities undertaken undertaken
directly 2022 directly 2021
£’000 £’000
External audit and statutory
accounts
118
Legal and consultancy
210
Trustee expenses and board
meeting costs
42
Internal audit
355
Total
725
98
177
7
330
612

9. Trustees’ remuneration

----- Start of picture text -----
2022 2021
Trustee expenses and board meeting costs £’000 £’000
Meetings 6 1
Travel 35 6
Telecommunications 1 -
Total 42 7
The number of trustees claiming expenses 7 7
----- End of picture text -----

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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

10a. Total resources expended

----- Start of picture text -----
Total support Activities
costs undertaken directly Total Total
2022 2022 2022 2021
Costs of generating funds £’000 £’000 £’000 £’000
Fundraising and publicity costs 2,696 10,347 13,043 11,180
Campaigns and events costs:
Humanitarian 307 1,413 1,720 1,457
Empowering communities 22 101 123 104
Campaigning for change 3 12 15 12
Generating funds -branch - 14 14 17
Total costs of generating voluntary income 3,028 11,887 14,915 12,770
Fundraising trading – subsidiary costs 369 3,177 3,546 3,095
Investment management costs 55 369 424 456
Total 3,452 15,433 18,885 16,321
Cost of charitable activities
Campaigning for change 322 1,628 1,950 2,014
Humanitarian 239 112,213 112,452 84,021
Empowering communities
- Healthcare, water, sanitation and hygiene 870 10,833 11,703 18,291
- Caring for orphans and children 206 33,124 33,330 34,483
- Supporting education 435 3,646 4,081 4,928
- Livelihoods support 438 10,384 10,822 13,479
Total 2,510 171,828 174,338 157,216
Total resources expended 5,962 187,261 193,223 173,537
----- End of picture text -----

TOTAL COST OF CHARITABLE ACTIVITIES

----- Start of picture text -----
180
160
140
120
100
80
60
40
20
0
2022 2021
£Millions
£174,338,000 £157,216,000
----- End of picture text -----

Costs for campaigns, events and generating funds relate both to the UK and to support for the operations of international family members and emerging geographical markets in these areas. There is a collaborative approach to supporting family members, coordinating with them to ensure cost effectiveness globally. In this context the activities covered include media relations and social media engagement, stakeholder communications, advocacy campaigns, fundraising appeal preparation and communication costs. In 2022, the total cost of this activity by Islamic Relief Worldwide for its own purposes and to support the global family was £18 million (2021: £16 million).

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

10b. Support costs

Costs of
generating Fundraising Investment Cost of Total Total
voluntary trading management charitable costs costs
income subsidiary costs costs activities 2022 2021
Costs of generating funds
£’000
Subsidiary
-
Management and
administration
1,038
Finance
296
Human resources
347
Information technology
765
Facilities
582
£’000
369
-
-
-
-
-
£’000
-
19
5
6
14
11
£’000
-
860
246
288
634
482
£’000
369
1,917
547
641
1,413
1,075
£’000
290
1,558
547
551
1,178
2,440
Total
3,028
369 55 2,510 5,962 6,564

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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

11. Net incoming resources

----- Start of picture text -----
2022 2021
This is stated after charging/(crediting): £’000 £’000
Auditor's remuneration including non-audit
services 118 98
Depreciation 393 361
Operating leases rental other than plant and
machinery 295 295
Exchange (gain)/loss (4,266) 2,640
----- End of picture text -----

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£’000|£’000| |Fees payable to company’s auditor for the| |audit of the company’s annual accounts|80|72| |Fees payable to company’s auditor for the| |audit of the company’s subsidiaries pursuant| |to legislation|15|13| |Tax compliance/advisory|23|13| |Total fees|118|98|

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

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

12. Staff costs and emoluments

Group 2022 Group 2021
£’000 £’000
Gross salaries
14,756
Employer’s National Insurance
1,197
Employer’s pension
792
Total
16,745
Average number of employees
Group 2022
Number
Engaged in raising funds
244
Engaged in charitable activities
123
Engaged in support activities
102
Total
469
12,958
1,041
734
14,732
Group 2021
Number
224
124
100
448
Employee numbers do not
include trustees as they are
not paid employees, and
also do not include staf
employed by Islamic Relief
afliates.
2022 2021
The number of employees with emoluments
between £60,000 to £70,000 per annum
2
The number of employees with emoluments
between £70,000 to £80,000 per annum
1
The number of employees with emoluments
between £80,000 to £90,000 per annum
3
The number of employees with emoluments
between £90,000 to £100,000 per annum
3
3
2
3
1

Total redundancies for the year ended 31 December 2022: Nil (2021: Nil)

Key management remuneration

Executive management team remuneration during the year totalled £880,068 (2021: £839,205). Chief Executive Officer remuneration during the year totalled £96,261 (2021:£97,982).

Aggregate pension contribution included in total remuneration figure £67,673 (2021: 64,114).

Chief Executive Officer Aggregate pension contribution included in Chief Executive Officer remuneration figure £11,551 (2021: £9,359).

Gross Employer’s National Employer’s
salaries Insurance pension
Analysis of key management remuneration £’000 £’000 £’000
2022 724,540 87,855 67,673
2021 693,750 81,341 64,114

The key management personnel consist of the CEO and eleven executive directors in 2021.

The key management personnel consist of the CEO and nine executive directors in 2022. This reflects starters and leavers in the year, there are seven executive roles.

There were no Other Benefits received by key management and no salary for any individual exceeded £100,000 in 2022.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

13. Intangible assets: Group and Charity

----- Start of picture text -----
2022
Group trademarks £’000
Cost
At 1 January 2022 188
Additions 847
At 31 December 2022 1,035
Accumulated amortisation
At 1 January 2022 (179)
-
Charge for the year
At 31 December 2022 (179)
Net book value
At 31 December 2022 856
At 31 December 2021 9
----- End of picture text -----

Trademarks are depreciated over their economic life of 10 years.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

14. Group tangible assets

----- Start of picture text -----
Fixtures,
Freehold fittings
land and Plant and and office Motor
buildings machinery equipment vehicles Total
Group £’000 £’000 £’000 £’000 £’000
Cost/valuation
At 1 January 2022 11,444 624 4,427 251 16,746
Additions 162 16 404 5 587
Disposals - - (6) (50) (56)
At 31 December 2022 11,606 640 4,825 206 17,277
Accumulated depreciation
At 1 January 2022 3,799 608 3,932 228 8,567
Charge for the year 151 7 232 2 392
Disposals - - (23) (50) (73)
At 31 December 2022 3,950 615 4,141 180 8,886
Net book value
At 31 December 2022 7,656 25 684 26 8,391
At 31 December 2021 7,645 16 495 17 8,173
----- End of picture text -----

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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

15. Charity tangible assets

----- Start of picture text -----
Freehold land Fixtures, fittings
and and Motor
buildings office equipment vehicles Total
Charity £’000 £’000 £’000 £’000
Cost
At 1 January 2022 11,224 4,257 135 15,616
Additions 119 403 - 522
Disposals - (6) - (6)
At 31 December 2022 11,343 4,654 135 16,132
Accumulated depreciation
At 1 January 2022 3,651 3,846 123 7,620
Charge for the year 145 231 2 378
Disposals - (23) - (23)
At 31 December 2022 3,796 4,054 125 7,975
Net book value
At 31 December 2022 7,547 600 10 8,157
At 31 December 2021 7,573 411 10 7,994
----- End of picture text -----

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

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

16. Investments

Total Group Total Charity
£’000 £’000
As at 1 January 2022
169
Increase/(decrease) in value
-
As at 31 December 2022
169
1,045
-
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. This property is currently being held for sale.

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.

17. Stocks and work in progress

Group Group
2022 2021
£’000 £’000
Donated clothing
127
127
Total
127
127

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

18. Debtors

Group Charity Group Charity
2022 2022 2021 2021
£’000 £’000 £’000 £’000
Trade debtors
419
Amounts owed from group
undertakings
-
Prepayments and accrued income
577
Other debtors
17,205
20
319
569
17,164
587
-
590
6,022
65
234
590
5,891
Total
18,201
18,072 7,199 6,780

19. Cash at bank

Much of our pipeline for 2023 projects is already secured and allocated to projects. Our position continues to be very healthy to continue the delivery to the vulnerable people we serve, with an influx of £68 million of cash into our bank accounts towards the close of the 2022 financial year.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

20. Creditors

----- Start of picture text -----
Group Charity Group Charity
Creditors: amounts falling due within 2022 2022 2021 2021
one year £’000 £’000 £’000 £’000
Trade creditors 2,859 2,786 3,213 3,107
Amounts owed to group undertakings 1,603 1,243
Accruals and deferred income 25,962 25,962 17,526 17,526
Tax and social security 282 259 274 254
Other creditors
13,457 13,534 14,513 14,444
Unpaid pension contributions 93 93 89 89
Total 42,653 44,237 35,615 36,663
----- End of picture text -----*

----- Start of picture text -----
Creditors: amounts falling due after
more than one year
Bank loan > 1 year *** - - 3,500 3,500
Balance as at
Balance as at 1 31 December
January 2022 Deferred Released 2022
Deferred income £’000 £’000 £’000 £’000
Islamic Relief members 17,258 20,412 (17,258) 20,412
International fundraising 172 5,398 (172) 5,398
Total 17,430 25,810 (17,430) 25,810
----- End of picture text -----

*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 2022.

*** Bank loan has been repaid during 2022.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

21. Financial instruments

----- Start of picture text -----
2022 2021
£’000 £’000
Financial assets measured at amortised cost
Debtors 17,633 6,610
Cash 125,120 92,687
Total 142,753 99,297
Financial liabilities measured at amortised cost
Creditors 16,399 21,251
Accruals 152 96
Total 16,551 21,347
----- End of picture text -----

22. Commitments

Group Charity Group Charity
2022 2022 2021 2021
Operating leases £’000 £’000 £’000 £’000
Less than one year
Between two to fve years
More than fve years
295
879
909
295
879
909
295
925
1,103
295
925
1,103
Total 2,083 2,083 2,323 2,323

As at 31 December 2022, the group had no capital commitments (2021: £nil).

23. 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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

24. Analysis of assets and liabilities representing funds

----- Start of picture text -----
Unrestricted Restricted Endowment
funds funds funds Total
At 31 December 2022 £’000 £’000 £’000 £’000
Group
Tangible and intangible fixed assets - -
9,416 9,416
Current assets 43,643 100,740 (939) 143,444
Liabilities -
(24,367) (18,282) (42,649)
Total 19,276 82,458 8,477 110,211
-
Unrestricted Restricted Endowment
At 31 December 2021 funds funds funds Total
Group
Tangible and intangible fixed assets - - 8,347 8,347
Current assets 35,252 64,718 45 100,015
Liabilities (20,881) (18,228) - (39,109)
Total 14,371 46,490 8,392 69,253
----- End of picture text -----

25. Unrestricted funds

General reserve General reserve
2022 2021
£’000 £’000
Balance as at 1 January 2022
14,370
Net incoming resources
4,458
Subsidiary funds brought forward
on consolidation
5
Movement from endowment funds*
443
12,362
1,569
10
429
Balance as at 31 December 2022
19,276
14,370

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

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

26. Restricted income funds

----- Start of picture text -----
Opening balance Income Expenditure Total 2022
Appeal funds £’000 £’000 £’000 £’000
Humanitarian
17,065 143,911 114,945 46,031
Caring for orphans and children
in need 860 35,716 33,951 2,625
Supporting education 3,610 4,227 4,042 3,795
Healthcare, water, sanitation,
and hygiene 11,195 17,045 11,277 16,963
Livelihoods support 13,758 15,163 15,877 13,044
Total 46,488 216,062 180,092 82,458
----- End of picture text -----

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 people living in poverty) 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.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

27. Endowment funds

Balance as
Balance as at Total Total Total Balance as at at 31
1 January incoming Return on available resources 31 December December
2021 resources investments resources expended Transfer 2022 2021
Endowment funds
£’000
Protecting life and
dignity
321
Empowering
communities
8,070
£’000
12
387
£’000
-
554
£’000
333
9,011
£’000
2
422
£’000
19
424
£’000
312
8,165
£’000
321
8,070
Total
8,391
399 554 9,344 424 443 8,477 8,391

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 2022, income from these waqf investments amounting to £553,928 will finance future long-term sustainable humanitarian development projects. Of this, £443,142 has been transferred to unrestricted funds to finance future humanitarian development projects.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

28. 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 Malaysia, Islamic Relief South Africa, Islamic Relief Sweden, Islamic Relief Switzerland and Islamic Relief USA. The income from these related parties in 2022 is given in note 6. The amounts due from these related parties as at 31 December 2022 were as follows: Islamic Relief Australia £602,195, Islamic Relief Canada £1,185,725, Islamic Relief Malaysia £1,738, Islamic Relief South Africa £68,511, Islamic Relief Sweden £361,367, Islamic Relief Switzerland £36,226, and Islamic Relief USA £5,986,127.

In 2022 a Gift Aid payment of £453,846 (2021: £78,459) was received from TIC International Ltd representing the taxable profits generated by the company in 2021.

29. Analysis of changes in debt

At start Foreign exchange Other non-cash At
of year Cash-fows movements changes end of year
£’000 £’000 £’000 £’000 £’000
Cash
92,745
Loans falling due after more
than one year
(3,500)
4,298,320
3500
(4,265,945)
-
-
-
125,120
-
Total
89,245
4,301,820 (4,265,945) - 125,120

Much of our pipeline for 2023 projects is already secured and continues to be very healthy with an influx of £68 million of cash into our bank accounts from October to December 2022 for 2023.

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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

----- Start of picture text -----
Unrestricted Restricted Endowments Total
funds funds funds 2021
Income and endowments from: £’000 £’000 £’000 £’000
Donations and legacies 7,676 158,516 701 166,893
Other trading activities 3,518 - - 3,518
Investments - - 536 536
Charitable activities - 11,993 - 11,993
Total incoming resources 11,194 170,509 1,237 182,940
Expenditure on:
Raising funds
Costs of generating voluntary
income - 12,770 - 12,770
Fundraising trading: cost of goods
sold and other cost 3,095 - - 3,095
Investment management cost - - 456 456
Charitable activities 6,529 150,687 - 157,216
Total 9,624 163,457 456 173,537
Net income (expenditure) 1,570 7,052 781 9,403
Transfers between funds 429 - (429) -
Subsidiary funds bought forward on
consolidation 10 - - 10
Net movement on funds 2,009 7,052 352 9,413
Reconciliation of funds
Total funds brought forward 12,363 39,432 8,041 59,836
Total funds carried forward 14,372 46,484 8,393 69,249
----- End of picture text -----

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ISLAMIC RELIEF WORLDWIDE ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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 Mrs Nurhayati Binti Hassan Vice Chair Dr Aarif Ahmed Pathan Mr Haroun Atallah Dr Muhammad Osman Dr Nora Shikeen Amath Mrs Samaa Sarsour Dr Aqsa Aziz (appointed March 2023) Dr Kasim Randeree (appointed March 2023)

COMPANY SECRETARY

Mr Nadeem Azhar (appointed 2 October 2022) Dr Ihab Mohammad Hamdy Saad (resigned role 2 October 2022)

EXECUTIVE MANAGEMENT TEAM

Mr Waseem Ahmad Chief Executive Officer Mr Adnan Hafiz Director of Network and Resources Development Division Mr Affan Cheema Director of International Programmes Division Dr Hossam Said Managing Director of Humanitarian Academy for Development Mr Javed Akhtar Director of Finance and Corporate Services Mr Tufail Hussain Islamic Relief UK Director

Mr Martin Cottingham Director of External Relations and Advocacy (resigned 14 February 2023) Mr Nadeem Azhar, General Counsel (appointed 1 September 2022)

101

CORPORATE DIRECTORY

AUDITORS

Grant Thornton UK LLP 17th Floor 103 Colmore Row Birmingham B3 3AG

BANKERS

Barclays Bank Plc Level 12 1 Churchill Place London E14 5HP

SOLICITORS

Stone King LLP 13 Queen Square Bath BA1 2HJ

Squire Patton Boggs LLP 7 Devonshire Square London EC2M 4YH

“Whoever saves a life, saves the whole of mankind”

Qur’an, 5:32

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