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.

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 1 02). 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 2023

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 2024 projects is already secured. It continues to be very healthy, with an influx of £86 million of cash into our bank accounts in December 2023 for 2024, 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.

Our unrestricted core income is funded by fundraising and income-generation activities. Despite the ongoing geopolitical and economic impacts, our financial results show 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 £274 million raised in total income.

The group financial statements consolidate those of Islamic Relief Worldwide, its trading subsidiary TIC International Limited, registered in England and Wales (company registration number: 27961 75, 100 per cent shareholding) and the charity International Waqf Fund, a limited company by guarantee (company registration number: 86121 72, 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.

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.

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.

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.

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.

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

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.

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:

• freehold buildings over 50 years straight-line basis
• fixtures and fittings over four years straight-line basis
• office equipment over four years straight-line basis
• motor vehicles over five years straight­ line basis
• plant and machinery over eight years straight-line basis
• depreciation is not charged on land.

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.

Cash at bank and cash in hand includes non­ interest-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 2024 projects is already secured and continues to be very healthy with an influx of £86 million of cash into our bank accounts from October to December 2023 for 2024.

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.

Investments consist of unlisted investments, subsidiary undertakings, and property.

Investments in shares are included at fair value. Lnvestment property is included at market fair value. Gains are recognised in the statement of financial activities.

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.

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

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.

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.

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.

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.

In Kind Donations are recognised where there is entitlement, there is probability of receipt, and the amounts are measurable. In Kind Donations donated are included in the accounts at their approximate market value at the receipt. In Kind Donations for distribution are included in the accounts at the fair value to the charity when the goods are received and under the control of the charity. Amounts are recognised in inventory until distributed at which point the relevant cost is released to the statement of financial activities. 

* Figure includes:

£936,175 of Aid Match funding from the Foreign, Commonwealth & Development Office (FCDO), for second year of a long-term development project in Ethiopia. The project aims to reduce vulnerability and strengthen the capacity of pastoralist families 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 15 humanitarian aid agencies, including Islamic Relief, that work together in times of crisis. For further information, visit: www.dec.org.uk

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

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

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

In 2023 a Gift Aid payment of £268,504 (2022: £453,846) was received from TIC International Ltd representing the taxable profits generated by the company in 2022.

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.

Costs for campaigns, events and generating funds relate both to the UK and to support for the operations of international family members and emerging 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 2023, the total cost of this activity by Islamic Relief Worldwide for its own purposes and to support the global family was £21 million (2022: £18 million).

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.

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

The key management personnel consisted of the CEO and nine executive directors in 2022.

The key management personnel consist of the CEO and eight executive directors in 2023. This reflects starters and leavers in the year. There are eight executive roles.

There were no Other Benefits received by key management.

Trademarks are depreciated over their economic life of 10 years.

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.

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

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.

Much of our pipeline for 2024 projects is already secured and allocated to projects. Our position continues to be very healthy to continue the delivery of support to the vulnerable people we serve, with an influx of £86 million of cash into our bank accounts towards the close of the 2023 financial year.

*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 2023.

Financial liabilities measured at amortised cost

As at 31 December 2023, the group had no capital commitments (2022: £Nil). These leases are for shops.

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.

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

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 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.

The Humanitarian funds provide life-saving assistance. This ensures the organization can deliver on saving lives and those in crises in emergency situations.
The Caring for orphans and children in need funds long-term support for vulnerable families.

The Healthcare, water, sanitation, and hygiene funds support health projects, improving access to quality healthcare services, contributing to enhanced wellbeing within vulnerable populations. Water provision to those without access and clean drinking water.

The Livelihoods support funds build financial inclusion in low-income countries, helping poorer people become financially self-sufficient.

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 2023, income from these waqf investments amounting to £577,249 will finance future long-term sustainable humanitarian development projects. Of this, £461,796 has been transferred to unrestricted funds to finance future humanitarian development projects.

The Empowering communities’ funds are held as capital or spent on a long-term charitable assets. The generated returns are used to cater for long-term projects.

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 Spain. The income from these related parties in 2023 is given in note 6. The amounts due from these related parties as at 31 December 2023 were as follows: Islamic Relief Australia £949171, Islamic Relief Canada £2,123,590, Islamic Relief Malaysia £52,696, Islamic Relief South Africa £4,811, Islamic Relief Sweden £690,305, Islamic Relief Switzerland £253,080 and Islamic Relief Spain £844,983.

In 2023 a Gift Aid payment of £268,504 (2022: £453,846) was received from TIC International Ltd representing the taxable profits generated by the company in 2022. As at the end of December 2023, the charity have reported a debtor of £208,233 (2022: £0) and a creditor of £156,817 (£2022: £39,818) with TIC International Ltd.

In 2023 a grant of £400,000 (2022: £630,000) was made to International Waqf fund. As at the end of December 2023, the debtor/creditor relationship between Islamic Relief Worldwide and International Waqf Fund stands at £2,000,141. (2022: £1,241,424)

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.