Islamic Relief Worldwide 2017 Annual Report and Financial Statements 1 In the name of Allah, most Gracious, most Merciful Contents 04 Message from the Chair of Trustees and Chief Executive Officer 06 Our year at a glance 07 Income and expenditure 10 Our global goals 12 Structure, governance and management 14 Where we work 16 Executive management team and trustees’ responsibilities Trustees’ Strategic Report 18 Global goal one: Reducing the impact of conflicts and natural disasters 26 Global goal two: Empowering communities to emerge from poverty and vulnerability 36 Global goal three: Mobilising people and funds 42 Global goal four: Strengthening the federation 48 Principal risks and uncertainties 50 Strategic partners Financial Statements 52 Financial review 55 Independent auditor's report © Islamic Relief Worldwide 2018 57 Financial statements This publication is subject to copyright. The contained text may be used free of charge for the purposes of advocacy, campaigning, education and research, provided that the source is acknowledged in full. Islamic Relief Worldwide requests that all such use be registered with us to monitor the impact for advocacy purposes. For usage in any other circumstances, translation or adaptation, permission must be sought and a fee may be charged. For further information, please email [email protected] 82 Corporate directory Cover: Nema’s house was completely destroyed in the Nepal earthquake in 2015, in which the family also lost livestock. Islamic Relief in partnership with Lutheran World Federation Nepal and Batas Foundation, constructed over 150 earthquake-resilient homes for vulnerable families in the remote mountainous villages of Yarsha in Rasuwa district, with funding from the Disasters Emergency Committee. Nema’s daughter, now a year old, was born in their new home. 2 3 Message from the Chair of Trustees and Chief Executive Officer Our humanitarian programmes this year included It is testament to our generous donors and delivering food to two million people in war-torn supporters, as well as our hardworking staff and Yemen as well as life-saving medical aid. In East volunteers, that both the scope and quality of Islamic Africa prolonged drought put 19 million lives at risk Relief Worldwide’s work continues to increase each and our teams across the region responded with year. In 2017, we became one of the first organisations Asalaamu alaikum emergency food, clean water and healthcare. As to be awarded the Core Humanitarian Standard violence escalated in Myanmar, our donors gave certification, recognising the effectiveness of our Peace be with you a generous £1 million towards our relief efforts humanitarian work. We also implemented our largest within the country and in neighbouring Bangladesh. ever Ramadan programme, distributing £7.5 million We also continued to support those devastated by worth of food in 34 countries. Meanwhile, two of our There was a time in the early days of conflict in Syria, with our total regional aid response flagship implementing partner offices, Islamic Relief Islamic Relief Worldwide when any one over the last seven years reaching £239 million. Pakistan and Islamic Relief Bosnia-Herzegovina, celebrated their 25th anniversaries while Islamic of the kind of emergencies we responded 2017 was the first year Islamic Relief Worldwide Relief Lebanon marked a decade of work with moving began working towards the new global goals tributes paid to the many lives we have touched over to in 2017 would have been our main we commit to in our five-year strategy, which the years. intervention in the year. Now the scale of continues to contribute towards the UN Sustainable Development Goals. Presented on page 10 of this Whilst recognising these achievements, we are human suffering and our ability to assist report, these goals focus on our four key priorities: acutely aware of the increasingly unstable world reducing the humanitarian impact of conflict and in which we operate and the many challenges we have increased to the extent where we natural disasters; empowering local communities face. In October 2017, a deadly bomb attack in are responding to multiple large-scale to emerge from poverty and vulnerability; Mogadishu, Somalia, claimed 300 lives and shattered mobilising people and funds to support our work; our office building. Incidents like these remind us crises annually, with over seven million and strengthening the Islamic Relief federation. how precarious life is for some and how vulnerable our aid workers are as they deliver vital assistance people reached this year. We were able Increasingly, Islamic Relief Worldwide is in some of the most volatile parts of the world. to undertake this scale of programming advocating on behalf of vulnerable people and mobilising communities to make positive As we present to you our Annual Report 2017 we take thanks to the generosity of our donors who change. In 2017, we successfully challenged none of our work, achievements or the generosity of our unacceptable social practices, contributed to the supporters for granted. We thank every individual and gave the organisation a record £126 million. UN climate change summit and initiated a global institution that has helped make our work a success campaign against gender-based violence. and most of all we thank Allah Almighty for giving us the honour of being in a position to serve humanity. It was also a year of strengthening our partnerships. In June, Islamic Relief UK worked with local charities to support those affected by the tragic Lamia El Amri Grenfell Tower fire in London. In November we Chair of the Board of Trustees, signed a new partnership agreement with the Islamic Relief Worldwide Iraqi Red Crescent Society to strengthen our work in Iraq. We also renewed a landmark faith partnership agreement with the Lutheran World Federation to carry out joint programmes, policy, Naser Haghamed research and advocacy with a focus on the role Chief Executive Officer, of faith in protecting vulnerable people. Islamic Relief Worldwide 4 5 Our year at a glance CHARITABLE INCOME CHARITABLE EXPENDITURE Voluntary incomeVoluntary income Donations Donations (excluding partners)(excluding partners) from overseasfrom overseas Grants Grants Voluntary incomeVoluntary income Donations Donations (excluding partners)(excluding partners) from overseasfrom overseas £120 £120 £120 £120 Grants Grants IN £100 £100 £100 £100 £120 £120 £120 £120 £80 £80 £80 £80 £100 £100 £100 £100 £60 £60 £60 £60 2017 Million Million Million Million £80 £80 £80 £80 OUR DEVELOPMENT £40 £40 £40 £40 AND EMERGENCY £60 £60 £60 £60 Million Million Million Million PROGRAMMES £20 £20 £20 £20 SUPPORTED £40 £40 £40 £40 £0 £0 £0 £0 £20 £20 £20 £20 2013 20132014 20142015 20152016 20162017 2017 2013 20132014 20142015 20152016 20162017 2017 £0 £0 £0 £0 West West East East Sustainable Sustainable Providing accessProviding to access to Europe Europe Africa AfricaAfrica Africa livelihoods livelihoods healthcare andhealthcare water and water CHARITABLE2013 EXPENDITURE20132014 20142015 BY REGION20152016 20162017 2017 CHARITABLE2013 20132014 EXPENDITURE20142015 2015 2016BY SECTOR20162017 2017 Middle Middle Caring for orphansCaring for orphans Protecting Protecting Asia Asia East East and vulnerableand children vulnerable children life and dignitylife and dignity West West East East SustainableSustainable Providing accessProviding to access to 7.4 Europe Europe Africa Africa Africa Africa livelihoods livelihoods healthcare andhealthcare water and water MILLION £120 £120 £120 £120 PEOPLE AROUND Middle Middle Caring for orphansCaring for orphans Protecting Protecting Asia Asia East East and vulnerableand children vulnerable children life and dignitylife and dignity THE WORLD £100 £100 £100 £100 RAISED A £120 £120 £120 £120 £80 £80 £80 £80 RECORD £100 £100 £100 £100 £60 £60 £60 £60 Million Million Million Million £80 £80 £80 £80 £126 £40 £40 £40 £40 £60 £60 £60 £60 MILLION Million Million Million Million £20 £20 £20 £20 £40 £40 £40 £40 £0 £0 £0 £0 £20 £20 £20 £20 2013 20132014 20142015 20152016 20162017 2017 2013 20132014 20142015 20152016 20162017 2017 £0 £0 £0 £0 2013 20132014 20142015 20152016 20162017 2017 2013 20132014 20142015 20152016 20162017 2017 6 7 3 MILLION 338,000 PEOPLE ASSISTED IN LIVES MADE SAFER DISASTER SITUATIONS THROUGH DISASTER RISK REDUCTION 4.4 50 MILLION PROJECTS 2 NEW ISLAMIC RELIEF LIVES IMPROVED IMPLEMENTED TO OFFICES REGISTERED THROUGH DEVELOPMENT REDUCE THE IMPACT OF IN NEPAL AND NORWAY PROGRAMMES IN CLIMATE CHANGE 34 COUNTRIES ONE OF £5.3 OVER THE FIRST MILLION 59,000 CHARITIES TO ATTAIN LOANED TO IMPROVE CHILDREN SUPPORTED THE CORE HUMANITARIAN LIVELIHOODS THROUGH THROUGH ORPHAN STANDARD CERTIFICATION ISLAMIC MICROFINANCE SPONSORSHIP 8 9 Our global goals Our four global goals and key objectives are: Reducing the humanitarian impact Mobilising people and 1 of conflicts and natural disasters 3 funds to support our work • RESPONSE • INFLUENCE In 2017, we launched a new A greater capacity to respond rapidly Advocacy on behalf of those we serve five-year strategy to reflect to disasters and better protection that influences communities, policies for communities when they occur. and global decision-makers. changes in our global working • EXPERTISE • SUPPORT environment and to focus our A global reputation for providing Greater support for our work through resources in the service of the effective emergency relief, particularly regular giving, volunteering, donor shelter for displaced people. engagement and UK programmes.