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.<\/p>\n<\/div>
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.<\/p>\n<\/div><\/div><\/div><\/div>
The Trustees consider that there are no material uncertainties about the charitable company\u2019s 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.<\/p>\n
Our pipeline for 2023 projects is already secured. It continues to be very healthy, with an influx of \u00a368 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.<\/p>\n<\/div><\/div><\/div><\/div>
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.<\/p>\n
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.<\/p>\n
Note 7 gives the full details of the income and expenditure of the trading subsidiaries.<\/p>\n<\/div><\/div><\/div><\/div>
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<\/p>\n
Restricted funds:<\/strong> 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.<\/p>\n Endowment (waqf) funds:<\/strong> 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.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n Donations:<\/strong> 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.<\/p>\n Charitable income:<\/strong> Where related to performance and specific deliverables these are accounted for as the charity earns the right to consideration by its performance.<\/p>\n Other trading activities:<\/strong> This comprises income generated by TIC International Limited from its trading activities, its charity shops and the sale of merchandise.<\/p>\n Investment income:<\/strong> This comprises income generated by waqf investment and rents receivable. Income generated from waqf forms part of the endowment funds.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n Costs of generating funds:<\/strong> These are costs incurred in attracting voluntary income and those as stated below under the headings \u2018Costs of generating voluntary income\u2019 and \u2018Fundraising trading\u2019.<\/p>\n Costs of generating voluntary income:<\/strong> The costs incurred in seeking voluntary contributions.<\/p>\n Fundraising trading:<\/strong> This comprises the group\u2019s trading activities, namely the costs associated with the trading activities of TIC International Limited.<\/p>\n Charitable activities:<\/strong> These are costs associated with the provision of humanitarian relief and development programmes as elaborated on in the trustees\u2019 report section, \u2018Our global reach.\u2019 These include both the direct costs and support costs relating to these activities.<\/p>\n Governance costs:<\/strong> 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\u2019s activities.<\/p>\n Support costs:<\/strong> Support costs for a single activity are allocated directly to that activity. Where support costs relate to several activities, support costs have been allocated to each of the activities (stated in Note 10) on the basis of the number of direct staff supported during the period in the relevant activity. Governance support costs are allocated on the basis of support activities provided on clearly interpreted governance matters.<\/p>\n Investment management cost:<\/strong> 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.<\/p>\n<\/div><\/div><\/div><\/div> Rentals paid under operating leases are charged to income as incurred.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n The company\u2019s functional and presentational currency is GBP.<\/p>\n<\/div><\/div><\/div><\/div> Except for items costing below \u00a3500, which are expensed on acquisition, all expenditure of a capital nature is capitalised.<\/p>\n 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.<\/p>\n The expected useful lives of the assets to the business are reassessed periodically in the light of experience:<\/p>\n<\/div> Intangible assets represent the organisation\u2019s 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.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n Much of our pipeline for 2023 projects is already secured and continues to be very healthy with an influx of \u00a368 million of cash into our bank accounts from October to December 2022 for 2023.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n<\/div><\/div><\/div><\/div> Investments consist of unlisted investments, subsidiary undertakings, and property. Investments in shares are included at fair value. Investment property is included at market fair value. Gains are recognised in the statement of financial activities.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n<\/div><\/div><\/div><\/div> Debtors are measured at the settlement amount after any trade discount offered.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n 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.<\/p>\n<\/div><\/div><\/div><\/div> 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.<\/p>\n<\/div><\/div><\/div><\/div> Preparation of the financial statements requires management to make significant judgements and estimates.<\/p>\n Significant judgements:<\/strong> There are no significant judgements having a material effect on the financial statements.<\/p>\n Significant estimates:<\/strong> There are no significant estimates having a material effect on the financial statements.<\/p>\n Non-exchange transaction<\/strong><\/p>\n The trading subsidiary\u2019s (TIC International) donated goods for sale in the shops and in the recycling operation are measured at sales prices when sold.<\/p>\n 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.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>e. Incoming resources and investment income<\/strong><\/h1><\/div>
f. Resources expended<\/strong><\/h1><\/div>
g. Operating leases<\/strong><\/h1><\/div>
h. Foreign currencies<\/strong><\/h1><\/div>
i. Fixed assets and depreciation<\/strong><\/h1><\/div>
j. Intangibles<\/strong><\/h1><\/div>
k. Cash and cash equivalents<\/strong><\/h1><\/div>
l. Stocks<\/strong><\/h1><\/div>
m. Investments<\/strong><\/h1><\/div>
n. Financial instruments<\/strong><\/h1><\/div>
o.Debtors<\/strong><\/h1><\/div>
p. Creditors and provisions<\/strong><\/h1><\/div>
q. Taxation<\/strong><\/h1><\/div>
r. Volunteers<\/strong><\/h1><\/div>
s. Judgements in applying accounting policies and key sources of estimation uncertainty<\/strong><\/h1><\/div>
2. Donations and legacies<\/strong><\/h1><\/div>
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\n \n Donations, appeals and fundraising events <\/td>\n \n Unrestricted funds \u00a3\u2019000 <\/td>\n \n Restricted funds \u00a3\u2019000 <\/td>\n \n Endowment funds \u00a3\u2019000 <\/td>\n \n Total 2022 \u00a3\u2019000 <\/td>\n \n Total 2021 \u00a3\u2019000 <\/td>\n \n Notes <\/td>\n <\/tr>\n \n \n United Kingdom* <\/td>\n \n 11,954 <\/td>\n \n 32,294 <\/td>\n \n _ <\/td>\n \n 44,248 <\/td>\n \n 37,583 <\/td>\n \n <\/td>\n <\/tr>\n \n \n Islamic Relief members <\/td>\n \n 904 <\/td>\n \n 144,555 <\/td>\n \n _ <\/td>\n \n 145,459 <\/td>\n \n 122,686 <\/td>\n \n 6 <\/td>\n <\/tr>\n \n \n Network resource development** <\/td>\n \n 519 <\/td>\n \n 8,205 <\/td>\n \n 399 <\/td>\n \n 9,123 <\/td>\n \n 5,701 <\/td>\n \n <\/td>\n <\/tr>\n \n \n Disasters Emergency Committee*** <\/td>\n \n _ <\/td>\n \n 1,330 <\/td>\n \n _ <\/td>\n \n 1,330 <\/td>\n \n 923 <\/td>\n \n <\/td>\n <\/tr>\n \n \n Total <\/td>\n \n 13,377 <\/td>\n \n 186,384 <\/td>\n \n 399 <\/td>\n \n 200,160 <\/td>\n \n 166,893 <\/td>\n \n <\/td>\n <\/tr>\n <\/table>\n<\/div>