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Annual Report and Financial Statements for the Year Ended 31 December 2019

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Annual Report and Financial Statements for the Year Ended 31 December 2019 Annual Report and Financial Statements for the year ended 31 December 2019 National Zakat Foundation (NZF) Charity number: 1153719 Company number: 08536743 Our mission is to connect every Muslim in the UK through Zakat, by helping Muslims get their Zakat to those deserving of it Welcome Contents Introduction from the Chief Executive and Chair 5 SECTION 1 About us 9 Strategic report Impact at a glance 10 How Zakat payers and our other donors helped people in need 11 How we raised and spent the funds we were given 17 Thank you 19 Our supporter community 20 Plans for the future 21 SECTION 2 Our people 24 How we operate How we manage the money Zakat payers and our other 25 donors give us Our approach to operations 26 How we are governed 27 How we manage our finances 29 Our leadership team 30 Statement of Trustees’ responsibilities 31 SECTION 3 Independent auditor’s report 34 Financial Statement of financial activities 36 statements Balance sheet 37 Statement of cash flows 38 Notes to the financial statements 39 Annual Report 2019 3 SECTION 1: Strategic report 4 National Zakat Foundation SECTION 1: Strategic report Introduction from the Chief Executive and Chair Assalamu ‘alaikum, Peace be upon you Right here, with God’s help, National Zakat Zakat payers have given over £16m of Zakat Foundation’s (NZF’s) Zakat payers and our through NZF since we launched in 2011, helping supporters have been part of something amazing. Muslims up and down the country to escape poverty, improve their lives and reach their full In 2019, over 7,500 Muslims trusted NZF to potential. At the same time, through our Zakat distribute their Zakat. It is a privilege to help Education and Awareness activities, we’ve been Zakat payers with this important commitment. able to help Zakat payers and potential Zakat For those who have been paying Zakat or payers understand more about how to calculate making voluntary donations to us for many and give their Zakat in a way which is both years, we appreciate your loyalty. For those who religiously sound and achieves real change for are new payers and supporters, we give you a Muslims in need. warm welcome. We’ve seen NZF grow from a simple idea to a Right now, Zakat payers are making a real technology-driven platform which has difference to the lives of Muslims deserving of connected Muslims across the country through Zakat in the UK. Zakat, positively impacting the lives of so many In 2019 alone, National Zakat Foundation’s Muslims deserving of Zakat. A small team of (NZF’s) Zakat payers helped over 6,200 Muslims. dedicated people has helped to create this Together, we’ve helped individuals and families national Zakat network. who have fallen on hard times or who are NZF Worldwide continues to draw on the UK’s unable to move forward in their lives due to their model and the learnings from it to establish and financial circumstances. Almost every day, support new National Zakat Foundations across Muslims in need in the UK get in touch to let us the world. In 2020, NZF is opening in both know about the truly life-changing way Zakat Switzerland and the Netherlands, having has helped them at a time when they felt like already been operating in Australia and they had nowhere else to turn. Canada since 2013. Zakat payers giving through NZF have achieved so much. Our donors and supporters are having a hugely positive impact. We’re able to achieve even more by working together with committed partner organisations and individuals who both refer applicants and help them to apply. Our donors, supporters and partners bring Zakat to life, helping to create a thriving, closer Muslim community in the UK. Thank you. Zakat is a unique form of religious social welfare which has the power to uplift the entire community. A lot has been achieved, God be praised, but there remains a lot more to do. At NZF, along with our Zakat payers and supporters, we’re ready and committed to ensure Zakat continues to provide solutions to the issues affecting our community, right here, right now, and long into the future, God willing. Iqbal Nasim MBE Azim Kidwai Chief Executive Chair of the Board of Trustees Annual Report 2019 5 Section 1 Our brandOur Strategicbrand report positioningpositioning National Zakat Foundation National Zakat Foundation 5 5 6 National Zakat Foundation Our brand positioning National Zakat Foundation 5 Annual Report 2019 7 SECTION 1: Strategic report 8 National Zakat Foundation SECTION 1: Strategic report About us The problem We’ve also streamlined our online application Almost half of all Muslims in the UK are living in process for those who need support. This means poverty1. That’s more than twice the national it’s quicker and easier for people to apply for average of 20%. And while a third of the help, and we can complete the thorough population think that Islam threatens the British eligibility checks more quickly. way of life, those trying to propel the community UK scholarly organisations have endorsed and forward, our emerging religious leaders and certified our Zakat policy and procedures as other community champions, are being held sound. We have made this certification back by financial circumstances. available on the website. We will maintain our At the same time, it’s often hard for individual active engagement with a range of scholars. Zakat payers to know how to get their Zakat We’ll continue to help Muslims bring Zakat to life directly to support local people in need. here in the UK. Together, we will achieve this vision, God willing. The solution Zakat enables Muslims in need to get back on Achieving our vision: our strategic goals their feet. Zakat also helps those in need who NZF helps Muslims get their Zakat to those in are working hard to uplift the community to need who should be receiving it here in the UK. access training and education – this improves NZF connects UK Muslims through Zakat to make their ability to serve Islam and Muslims in the UK. a positive, lasting change for the whole Muslim Zakat payers need a trusted way to be able to get community locally. their Zakat directly to people in need in the UK. In 2019, we had the following strategic aims: What NZF does 1. Economic Empowerment: To financially Our mission is to connect every Muslim in the UK empower individuals in need. through Zakat. NZF is the only platform with a 2. Grenfell Muslim Response Unit: To support national reach which helps Muslims get their survivors and their families to achieve Zakat to those in need who should be receiving normality and stability (completed in it here in the UK. Rooted in our faith and January 2019). reflective of our modern times, we’re building a nationwide network of support. 3. Leadership Investment: To give leading institutions and emerging leaders greater Our vision is a thriving, closer Muslim community capacity to provide solutions for the in the UK, powered by Zakat. challenges faced at home, at work and in NZF is committed to listen to our Zakat payers. wider society. We take time to learn from experience. And we 4. Zakat Awareness, Education and are diligent in ensuring policies are endorsed by Calculation: To help people understand a wide range of scholars. It all helps us to get Zakat; to encourage payers to pay their closer to achieving the vision. Zakat to recipients in the UK; and to help payers pay the right amount of Zakat. Bringing Zakat to life in 2020 and beyond Zakat payers have shared with us a range of views about how we can make their Zakat- giving experience with NZF even better. NZF has been listening. We’ve made it clearer who receives Zakat given through NZF, and we’ve given Zakat payers more choice about where their individual Zakat payment goes and who it helps. 1 Social Mobility Commission. The Social Mobility Challenges Faced by Young Muslims Stevenson J, Demack S, Stiell B, Abdi M, Clarkson L, Sheffield Hallam University. (Sept 2017) Annual Report 2019 9 SECTION 1: Strategic report Impact at a glance 16,000+Muslims in need helped since 2011 Muslims6,200+ in need helped in 2019 Total£3.4m amount of Zakat spent by NZF in 2019 Economic Zakat Zakat calculator Empowerment accessed over Awareness, Over 7,500 Zakat Education and 87% payers supported 47,000 of all 2019 times over 6,200 Muslims Calculation: Zakat spend In 2019, NZF made deserving of Zakat. articles available online NZF responded to 87% of all 2019 Zakat which received 24,000 spend was through the hits. Around 6,000 people Economic Empowerment 730emailed used our online Helpdesk Programme. calculation queries during Ramadan. Leadership NZF provided Investment personal>170 Zakat Zakat payers consultations by 13% supported 29 telephone of all 2019 individuals and Zakat spend 4 organisations. 13% of all 2019 Zakat Grenfell Muslim spend was through the Leadership Response Unit Investment Programme, (GMRU): which included the 116 GMRU supported survivors Muslim Leaders survivors and their families with their supported Development Fund. needs and helped them get through their difficulties. Survivors, supporters and partners recognised the initiative was successfully completed in 2019. 10 National Zakat Foundation SECTION 1: Strategic report How Zakat payers and our other donors helped people in need 1. Economic Empowerment NZF gets Zakat from Zakat payers directly to Muslims in the UK who are in hardship, providing funds to cover basic essentials in a moment of dire need, to help them get out of a rough patch.
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