FORUMT H E The Journal of the British Muslim charity sector - ISSUE 2, WINTER 2019/20
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FORUM THE
The Journal of the British
Muslim charity sector
ISSUE 2, WINTER 2019/20
We know that organisations like yours need prompt,
practical, cost-effective solutions, delivered with
an understanding of how Islam plays a factor in
your decisions.
We are specialist charity and not-for-profit lawyers.
Our faith-based team works with Muslim charities,
not-for-profits and educational institutions
nationally and internationally. Our specialised
legal expertise and deep knowledge of Islam
“
means we are perfectly placed to help your
organisation. Our advice includes:
• Regulatory compliance (e.g. Charity
Commission, HMRC and Ofsted)
You are in
• Constitutional and governance advice,
including advising on internal disputes
good hands
• Fundraising and investment
(including Zakat and Waqf funds)
• Safeguarding
• Equality Act issues with Augustus,
• Employment and immigration
masha Allah.
”
advice for Imams, volunteers
and staff
• Property and development advice
and advising on property disputes
for mosques and Muslim charities
To find out more contact Augustus Della-Porta, Partner
in our Charity and Social Enterprise department, who
leads our work with Muslim charities
a.della-porta@bateswells.co.uk
020 7551 7607
Contents
5 Chief Executive Foreword
Fadi Itani
Our second edition of ‘The Forum’ continues the discourse
started in the inaugural edition from Summer 2019. We take
a closer look at some of the more difficult conversations we
6
Aligning Muslim charities’ work with the need to have including; administrative costs, addressing needs
UN Sustainable Development Goals in the UK and learning points from the Charity Commission’s
investigations into Muslim charities.
Iqbal Asaria
7 Why administrative costs are necessary
Tufail Hussain Acknowledgements
9 Wrap up - Human Appeal’s UK project
Abid Shah
MCF has a dedicated team of staff and volunteers, all of
whom contributed to the production of this journal includ-
ing; Dr Atif Imtiaz, Fadi Itani, Anas Abu, Salma Begum, Saba
10 Addressing issues at home: British
Mosque case studies
Hassan Joudi
Mughal and Francesca Floris.
We value your feedback and invite you to consider proposing
contributions for the next edition of The Forum. Contact us via:
11
An examination of the inquiries info@muslimcharitiesforum.org.uk or call one of the team on
conducted on British Muslim charities by 0203 096 1983
the Charity Commission
Dr. Atif Imtiaz Readers are encouraged to quote and reproduce materials
from this publication with due acknowledgement to the
Muslim Charities Forum as copyright holders. We also request
14
Reflections on serving as Chair of the
IDC a copy of the publication is shared with us.
Stephen Twigg © Muslim Charities Forum, 2020
15 Leading the way
Asif Aziz
16
On mergers between charities
Alex Skailes
17 A good neighbour is better than a bag
of money
Matthew Geraghty
18 Challenging falsehoods in the media
Helena Shipman
19
How the Beacon Programme is helping
smaller charity Chairs
Isabel Locke
20 Waqf and charity law
Augustus Della-Porta
21 Learning first-hand about the sector
Francesca Floris
Stronger Together
The Muslim Charities Forum, founded in 2007, is the network of
British Muslim charities dedicated to working for social good both at
home in the UK and abroad.
Our role is to collectively improve our accountability, transparency and efficiency as a sector – to
contribute to a more just and sustainable world. The Muslim charity sector has remarkable potential
and has already done phenomenal work – it is now, more than ever before, imperative that we work
together, combining skills and lifting each other up. Ultimately, our vision is to see British Muslim
charities taking a central role in moving towards building a more just and sustainable world. Join the
forum for visibility – influence – networking – training – knowledge exchange – representation
To request an application form or to find out more about how to become a member, call us on
0203 096 1983 or email info@muslimcharitiesforum.org.uk
We Support Our members are united by a collective set of
values, rooted in our shared Islamic faith.
We support MCF members to enhance their
capabilities, accountability, improve efficiency and Our values are:
ultimately to have a greater impact. We do this
through delivering training, facilitating discussion
forums, producing resources, collaborating on Accountability
joint projects and celebrating successes.
Effectiveness
We Connect
We connect our membership to share skills,
knowledge, experience and to mobilize resources.
Excellence
Our connected membership creates space to
debate issues, engage with the wider sector Humanity
including policymakers, governmental bodies and
research institutions.
Transparency
We Represent
We represent and project our membership
through a data-driven, self-confident, collective
voice on big debates. We showcase our member’s
achievements and represent a strong united voice
for the British Muslim charity sector.
Our membership includes
It is time to start
investing in our future
FADI ITANI
n our second issue of Whilst we, as a sector and community, the areas mentioned earlier. This not only
I
the Muslim charitable work tirelessly trying to uphold this right, affects the future of our sector; it is costing
sector’s first ever journal we are unfortunately still falling short and us right now. We have a duty to serve,
‘The Forum’, we continue millions continue to suffer. The needs of protect and improve the lives of communi-
our commitment to those we serve stretch far beyond what ties globally and this is made so much more
provide a space for new we have the current capacity to offer – unnecessarily difficult due to our lack of
ideas, constructive debates and refreshing especially if we overlook opportunities to investment. We are losing the trust of our
and energizing discussions. We believe that work collectively in areas where a unified donors, we are missing out on the incredi-
the sector needs this space. We hope that, response is of greater impact and effec- ble emerging talents within our community,
like the first issue of the journal, our second tiveness. Investing back into our sector and at worst, some charities are even
issue can offer a real insight into the inner and investing in capacity building can struggling to function effectively due to a
workings of the Muslim charity sector in improve our efforts and help us to enact range of high-profile issues resultant from
Britain, and furthermore, offer a platform to truly transformative change to save, protect neglecting our collective duty to discuss,
develop our collective work. and improve the lives of the world’s most reflect, invest and change.
vulnerable.
In closing, MCF’s second issue of ‘The Jour-
Attempting to improve is futile if we do nal’ offers an exciting and engaging insight
“ WE MUST WORK TO not observe and discuss what is needed into some of the most important, contro-
PROVIDE TRAINING AND in our sector. That is why ‘The Forum’ was versial and overlooked issues facing our
OPPORTUNITIES FOR OUR developed: to provide a platform for high- sector. The articles within this issue range
YOUNG PEOPLE AND lighting important debates and discussions from discussions on governance within
RECOGNISE THEM AS THE within our sector in order to foster growth, the sector to the debates surrounding the
reflection and development. Firstly, we 100% donation policies. In bringing these
FUTURE LEADERS THAT THEY
need to think about how we can shape the discussions and debates to light through
ARE.” future of our sector. Our work continues to ‘The Forum’, we hope that we, as a collec-
grow and without serious investment now, tive, can reflect, continue these discussions
we cannot, realistically, expect to improve and invest in our futures, so that we can
The Muslim charity sector is consistently on our current state. For example, the youth ensure that we are doing our best to help
growing – from a mere handful of charities are our future: they are passionate, driven, those whom we wish to serve.
in the 1980s to what it is now, at least one knowledgeable, and offer vast amounts of
hundred international non-governmental energy to our sector. They enter a world
organisations and over twelve hundred of work that sometimes doesn’t recognise
local organisations and Mosques. The their talents and provide suitable avenues
achievements of this sector are great, and for them to develop their expertise, leader-
our potential is even greater. With our ship skills, and experience. We must work
growth and our fundraising power, we have to provide training and opportunities for
such an incredible potential to change the our young people and recognise them as
lives of millions of people across the globe, the future leaders that they are. Secondly,
and here at home in the UK. there is also a real need to develop a more
research-centric approach to our work in
We cannot let this great potential, nor order to improve operations, organisational
the incredible talent we have within our infrastructure and, again, help to develop Fadi Itani is the CEO of the Muslim
Charities Forum. Fadi has experience in
community and sector, go to waste. The a skilled workforce. A research-centric the community and charity sector for over
world we inhabit can often be unjust and approach helps us not only in our work 30 years. Prior to MCF, Fadi has held
unequal. In this country and across the advocating for our sector, but also in issues senior posts at the Qatar Charity UK,
globe, we find that so many men, women such as developing public trust, highlight- Islamic Relief, The Humanitarian Forum
and served as CEO of Zakat House.
and children go without at least one of the ing the value of the sector, and offering
four fundamental rights, as outlined in the tangible data to reflect on within our
hadith of the Prophet (saws): “A home to organisations regarding the needs of our
live in, a garment to cover his nakedness, sector and the ways we conduct our work.
a piece of bread, and water” [At-Tirmidhi].
The right to shelter and sustenance is a The reality is that, unfortunately, we have
right that should be afforded to all of us. an acute issue of a lack of investment in
5
Aligning Muslim charities’
work with the UN Sustainable
Development Goals
IQBAL ASARIA
he 17 UN Sustainable increase manifold when charities and The growing need to align the activities
T
Development Goals NGOs are able to report using measurable of the charities to the SDGs will have a
are becoming the focal outcomes. The Charities Commission is also beneficial effect in creating the appropriate
point on all discussion considering requiring charity trustees to framework for achieving this goal as it will
on development and incorporate SDG paradigm and its aware- allow members of the financial world a
sustainability. What ness into their remit of responsibilities. way through which they can measure the
started out as the 8 Millennium Develop- impact of their contributions.
ment Goals (MDGs), mainly focussed on
human development capacity in developing
countries, has now blossomed into the 17
Sustainable Development Goals (SDGs) “THE FINANCE SECTOR IS
which are applicable to a universal constit- CURRENTLY LOOKING AT
uency. Muslim charities need to be in tune WAYS IN WHICH IT CAN
with this rapidly evolving discourse and CONTRIBUTE AND SUPPORT
equip themselves to deal with it effectively. THE CHARITABLE SECTOR. ”
It is likely that the growing awareness of
Climate Change and the need for sustain-
able use of global resources is going to
take centre stage in all debates on equality, Apart from retaining their target donor Iqbal Asaria CBE was formerly a member of
the Governor of the Bank of England’s working
fairness, justice and development. NGOs base such an exercise is also likely to party set up to facilitate the introduction of
and charities will thus clearly need to enable the NGO or charity to tap a much Shariah compliant financial products in the
align themselves to the SDGs if they are to wider range of donor funding from a wide UK market. He is Visiting Faculty at Bangor
retain their access to resources from donor range of institutions which are tasked with Business School and Visiting Faculty at Cass
Business School. Iqbal is the organiser of the
organisations and to maintain the interests delivering the SDGs. They may also be able annual International Takaful Summit (ITS) and
of their own target donor communities. to tap into the growing pools of social in 2019 Iqbal led the Afkar Group team in
impact funding for their activities. Again, organising the first Responsible Finance Summit
A simple review of the SDGs shows that some outside the box thinking is needed to in London.
many of them are exactly what one would mobilise resources of these philanthropic
wish for on a global scale. The key chal- foundations and funds. The finance sector
lenge is to design programmes and projects is currently looking at ways in which it
which deliver one or more of the SDGs in can contribute and support the charitable
the target operational area. An important sector.
innovation of the MDGs and SDGs is the
need to incorporate measurable outcomes
from programme and project funding.
Faith and Muslim charities thus need to
develop their expertise to incorporate an
in-depth understanding of the SDGs into
their programmes and projects. The bigger
ones will need to develop policy units
which inform their work. The smaller ones
will need to inform their key personnel of
the importance of the SDG framework.
Muslim charities, in particular, can also
make much more innovative use of Zakat
collections to deliver some of the desired
outcomes. Initial research in some Muslim
countries shows that Zakat collections
6
Why administrative
costs are necessary
TUFAIL HUSSAIN
very single charity has on charitable activities. Second, composi- charity wants to spend more than it has
E
administrative costs: tion of a charity’s cost base is no indicator to on computers, for example, but if its IT
sadly, many are judged of its effectiveness. Charities in England systems aren’t up to the job, it could lead
on this alone. In the and Wales must split their costs into three to inefficiencies and lost time.”
race to attract donors categories in their accounts: charitable
and prove that money is activities, costs of raising funds and The subject of administrative costs is even
going ‘straight to the cause’, some charities governance costs. This unhelpfully implies included in the Holy Qur’an, which explicitly
even claim to have low or no administrative that managing oversight and raising funds states that those employed to administer
costs. In this article, I will argue why admin- are somehow separate from charitable Zakat funds are entitled to take costs – up
istrative costs are necessary; what they are activities. They are not. All charitable activ- to 12.5%. Surah Al-Taubah 9:60 states:
for; why administrative costs are good for ities rely on someone having raised funds “Sadaqah (ie Zakat) is for the poor, and
charities; and why they should not only be for them, while good governance ensures the needy, and those employed to admin-
permitted, but embraced. those funds are spent wisely. The costs ister [the funds] … [thus is it] ordained by
in all three categories should ultimately Allah, and Allah is full of knowledge and
Expectation versus reality support charitable activities.” wisdom.”
We, at Islamic Relief UK, recently carried However, given that charities are obliged by Does cheap mean good?
out a survey on what the British Muslim the Charity Commission to report on their
community thinks about administrative administrative and support costs, we should It may seem counterintuitive, but research
costs. We learnt: explore what this means. shows that high-performing charities
actually spend more on administration
• Some people think charities spend than weaker charities. Analysis by Giving
as much as 80-95% on administration Evidence3 provides a case study on false
economies:
• 71% believe that 0-19% is an “SOME ORGANISATIONS
acceptable rate for administrative costs CLAIM TO HAVE ZERO “Imagine a water charity which operates in
• 11.5% say charities should have no OVERHEADS. HOWEVER, several less developed countries to improve
administrative costs. ALL ORGANISATIONS NEED irrigation. If it’s run well, it will have a
TO SPEND MONEY ON system for recording what works and what
When we told focus groups that Islamic
doesn’t in particular circumstances, and for
Relief spends 12% on administrative RUNNING COSTS. “
sharing that learning between its various
and support costs, many people were
country offices. Now, should the costs of
“impressed”: the figure was much lower
that system count as ‘administration’? On
than expected. They thought that this was
the one hand, the system isn’t directly help-
a good thing.
What are administrative ing people: it probably involves databases
However, assuming “high administrative costs? and conference calls, rather than pipes and
water. As a result, it may well be classified
costs = bad charity” and “low administra-
Although charities must be transparent in as ‘administration’ in a charity’s accounts.
tive costs = good charity” is misleading. It
reporting costs, there is no standard way However, the system will reduce the char-
says nothing about the quality or suitability
to define administrative and support costs. ity’s costs and increase its effectiveness,
of aid, the impact it has on the lives of
They can cover fundraising costs, govern- and therefore certainly isn’t waste. Aha – in
those we serve, or the sustainability of the
ance costs (e.g. audits), monitoring and this case, money spent on administration
goods or services delivered, nor does it
evaluation, transport to hard-to-reach areas increases performance”
highlight the extent to which the dignity
of the beneficiaries has been protected, when delivering aid, rent for buildings,
insurance, appropriate staff salaries, volun- So what happens when a charity keeps
or the degree to which projects have been
teer expenses, furniture, stationery and administrative costs as low as possi-
adequately monitored and evaluated.
equipment (e.g. laptops, phones). ble? You may remember the charity
“Kids’ Company”. The CEO, Camilla
The Financial Times1 urges people not to
The National Council for Voluntary Organ- Batmanghelidjh, boasted that “we kept
judge a charity by its admin costs alone,
isations (NCVO)2 warns that “it can be a overheads low”. The organisation kept
explaining:
false economy to skimp on some of the paper records for the 36,000 children and
“First, in a good charity, all the money, ‘back office’ or infrastructure that charities young adults it supported, stored in 80
including admin costs, is ultimately spent need to get the job done properly. No filing cabinets.
k
7
“only an illusion, made possible because
other costs incurred are covered by other
income sources – such as grants … the
myth that charities can operate with zero
overheads is utterly misleading and creates
the illusion in the public’s mind – and it
damages the rest of the charity sector.”7
MCF comment:
We approached charities that operate a
100% policy to ask them to provide a case
for the 100% policy but unfortunately they
were unable to provide an article in time
for this publication. We would welcome
a counter-argument from any charity that
operates a 100% policy for the next issue
of The Forum.
The organisation collapsed in 2015. that this money may be wasted or not
According to a report by a committee of reach the people most in need. What type
MPs, “Poor record-keeping was a signif- of tents and blankets should be bought?
icant factor in the charity’s collapse”. What takes priority: food or shelter? Which
Skimping on administration can be medicines should be bought as a matter of
dangerous. urgency? These are all extremely impor-
tant decisions and require expertise and
Some readers will remember the video we experience. Tufail Hussain is the Director of Islamic Relief
produced on aid, called ‘Saving lives isn’t UK. He has over 14 years’ experience in
easy’4. It showed a well-meaning young Susan Hitch, a trustee of various organisa- the sector, leading successful marketing and
man, keen to do good in the world, by tions, says: “I’m often worried if a charity fundraising campaigns at a number of Muslim
international development and humanitarian
hopping on a plane and delivering aid to a claims very low admin costs. Either they’re agencies. He is a Trustee at the Muslim
remote community in Africa. However, he fudging it to try to please a funder, which Charities Forum (MCF) and was previously the
didn’t know where the people were who doesn’t promise much of a relationship, or CEO of Orphans in Need.
needed assistance; what assistance they their admin really is rock bottom, in which
needed; or how to get it to them. This is case they’re unlikely to be well run. You
clearly not how a professional development can’t run an effective organisation with [1] www.ft.com/content/17cbc96c-b5b6-11e7-
agency should work. barely any cost.”6 8007-554f9eaa90ba
[2] www.ncvo.org.uk/images/documents/
We also produced a mobile videogame, Charities need to be about_us/media-centre/reporting-on-charities-
called Virtue Reality5 - it shows the honest about running 3-running-costs.pdf
complicated process of delivering aid. costs [3] givingevidence.files.wordpress.
It’s not simply a matter of collecting a com/2013/05/admin-costs-re-release-
large amount of money, then travelling to Some organisations claim to have zero dec-20151.pdf
another part of the world and distributing overheads. However, all organisations need [4] www.youtube.com/
it amongst “poor and needy” people. First to spend money on running costs. A charity watch?v=WPzigh4VwCM&t=31s
of all, an agency needs to carry out a needs needs a head office to control the organ-
assessment to find out what people need; [5] You can download the game for free from
isation and to ensure compliance with the AppStore or Google PlayStore
local staff need to be recruited, appointed laws and regulations. Even volunteers cost
and trained; project plans must be drawn money: they need to be trained, coordinat- [6] www.theguardian.com/voluntary-sector-
up; donations secured; items bought; ed and supported. Every charity needs to network/2013/may/02/good-charities-admin-
projects delivered, monitored and evaluat- costs-research
find some source for their running costs – if
ed; community outreach carried out. All of they don’t take it out of donations that [7] www.theguardian.com/voluntary-sector-
this costs money. But it is money well-spent they receive from the public, then they have network/2016/apr/26/charities-admin-costs-
in order to have maximum impact. accounts-reporting
to take it from donations received from
other donors, running charity shops or from
So how about sending home remittanc- gift aid.
es following a disaster? We completely
understand why some people prefer to Claiming that 100% of every pound raised
send donations through their friends by a charity is used exclusively for charita-
and relatives rather than through larger ble purposes is, according to The Guardian,
charities. However, there is a possibility
8
Wrap up - Human Appeal’s
UK project
ABID SHAH
n recent years, people
I
living in relative poverty
in the UK has been on
the rise. Approximately
14 million people in the
UK were in the relative
low income bracket in 2017/18 with that
number likely to have increased recently.
Sadly, the number of deaths per year
of homeless people in the UK has also
increased rapidly. An estimated 726 home-
less people died in England and Wales
in 2018 alone, a rise of 22% from 2017.
Often these deaths have been caused by 4375 hours of their time to ensure the There are many who benefited from and
the unbearable cold of the winter season. project ran smoothly and successfully. In will continue to benefit from the Wrap Up
For many, something as basic as a good 2019, the project grew and Leicester was campaign. With the campaign due to grow,
quality coat or a jacket is an unaffordable added to the list of cities involved in the Human Appeal looks forward to engaging
luxury. fantastic campaign. The volunteers collect- more local organisations to once again
ed and sorted the coats, ensuring they were deliver an impactful and effective Wrap Up
The Wrap Up campaign is an award-win- all of good quality and thousands of coats 2020.
ning, simple yet effective annual campaign were then donated to those in need.
organised by Human Appeal in collabora-
tion with Hands On London. The campaign
is based on a very straightforward concept
- local communities within different towns “IN 2018 OVER 30,000
and cities across the UK donating their COATS AND JACKETS WERE
spare coats and jackets to help those in COLLECTED ACROSS THE
need.
COUNTRY AND DONATED
The campaign has successfully provided TO BENEFICIARIES
warmth to thousands across the UK by THROUGH SOME FANTASTIC
wonderfully bringing together different LOCAL CHARITIES.“
parts of the community for the last four
Abid Shah is Fundraising Manager for Human
years. Religious and educational institutions Appeal and has many years of experience in
and corporate firms across the country fundraising and community engagement. He
organise collections, encouraging their also has a Masters in Islamic Studies from
Despite its simplicity, the impact of the Newman university.
staff and clients to donate their coats and Wrap Up campaign has been phenome-
jackets in the process. The campaign is nal. Poverty levels in the UK are taken for
also supported by Network Rail, Safestore, granted despite the fact that thousands
Collectplus and others who, with their across our communities are sleeping
extensive reach across the country, promote rough every night. Local charities tackling
the campaign whilst also providing vital homelessness, helping vulnerable women
logistical support. and supporting asylum seekers in the UK
have now started to seek Human Appeal
In 2018 over 30,000 coats and jackets out before the start of winter because of
were collected across the country and the desperate lack of coats and jackets for
donated to beneficiaries through some their beneficiaries. A local charity partner in
fantastic local charities. Human Appeal Birmingham expressed their gratitude for
coordinated the campaign in Manches- the coats they received, saying the “dona-
ter, Birmingham and Glasgow, working tions will go a long way to helping our
with the generous local communities and clients who are experiencing hardship”.
charities to ensure the project was a huge
success. Volunteers played a big part, giving
9
Addressing issues at home:
British Mosque case studies
HASSAN JOUDI
side from a fraction
A
of mosques in Britain
supported with foreign
donations, the vast
majority of Britain’s esti-
mated 1,800 mosques
were established and continue to operate
thanks largely to the generous donations
of the congregations they serve. Indeed,
the history of the development of British
mosques is itself a fascinating reflection
of the socio-economic history of migration
and integration of diverse Muslim commu-
nities from across the world who decided
to make Britain their home.
Some Birmingham and London mosques across the country to share best practice on
Whilst explaining this to a colleague who have organised seminars on knife crime to how we can be running our mosques more
grew up in a Muslim-majority nation in address the rising issue of young Muslims effectively.
Asia where mosques are funded by the in inner-city areas becoming embroiled in
state, their realization that most mosques serious crime. This is in addition to working For these pioneering mosques, physical
in Britain are largely self-funded was a with local police to set-up a Knife Bank in building features like domes or minarets
genuine shock to them. or next to the mosque car park as a safe were not necessarily required to succeed.
amnesty point to help take knives off our But rather it is the vision and action of the
It is therefore not strange to appreciate streets. mosque’s leadership team and volunteers
that with such deep roots at home, more in addressing the social issues affecting
and more mosque leaders and volunteers them at home, which are the keys to their
are increasingly turning their focus to successful innovations now and in the years
addressing social crisis issues affecting their to come. There has, by the Grace of God,
“MOSQUES IN THE
children, neighbours and local communities been progress in this area in the last few
on their door step. MIDLANDS ARE RUNNING
years. However, we look forward to more
REGULAR FOOD BANKS AND
mosques stepping up to the plate to tackle
One parent in their 30s in Lancashire COUNSELLING SERVICES.” some of the social issues we face in our
explained to me that he began donating communities at home.
monthly to his mosque’s Scouts group as
he wants his son and daughter to grow up
as confident young Muslims who can make And also in the path of collaboration, two
a change in society. mosques in North London have recently
answered the call by the NHS for more
During winter, several mosques nation- blood donors from BME backgrounds by
wide see their community or function halls offering up their premises as official NHS
temporarily converted into shelters to blood donation centres, thereby encour-
accommodate the growing blight of home- aging their Muslims congregations to give
less Britons sleeping rough on the street, as blood, as well as welcoming in local blood
well as providing a warm meal for them on donors of all faiths and none from the local
the coldest days of year. area.
Hassan Joudi is the Deputy Secretary General
Mosques in the Midlands are running and Mosque Affairs Co-ordinator at the
These and other innovative projects Muslim Council of Britain, the UK’s largest and
regular food banks and counselling services were recently show cased at the annual most diverse national Muslim umbrella body.
where users are neighbours from the local Our Mosques Our Future conferences, a Hassan believes passionately in the role of
area who have fallen on tough times, national event organised by the Muslim
young Muslims as a driving force for positive
whether Muslim or otherwise. change in society in Britain today. He works as
Council of Britain (MCB), bringing together a Chartered Mechanical Engineer in the energy
over 500 mosque leaders and volunteers sector.
10An examination of the
inquiries conducted on
British Muslim charities by
the Charity Commission
DR. ATIF IMTIAZ
t is a common feeling property, beneficiaries or the charity’s work’ been many instances of serious malpractice
I
expressed within the or if there is a ‘need to collect evidence’. and mismanagement.
British Muslim chari-
table sector that the A review of all the inquiries conducted It should be noted that the charities that
Charity Commission has on charities registered with the Charity have been found wanting are generally
an Islamophobic or an Commission found that there were 21 smaller in size and few inquiries have
anti-Muslim agenda. This explains why it Muslim-led humanitarian charities that had been conducted on some of the larger
has a higher level of interest in Muslim been subject to inquiries between 2008 British Muslim charities. It should also be
charities. In order to examine this senti- and 2019 (i.e. those inquiry reports that are noted that despite these inquiries, the
ment and its veracity, we decided to read available to read on the website). The total British Muslim charity sector is thriving –
through every inquiry report that has been number of Muslim-led charities investigated consists of over a hundred charities with an
published on the Charity Commission’s by the Charity Commission during this peri- annual income of under half a billion which
website and to consider the seriousness of od is 59 and the total number of charities amongst other actions supports 80,000
the issues raised by the inquiry. that have been subject to inquiries is 2961. orphans and by far the majority of this
is audited: checked internally and exter-
The Charity Commission is the govern- nally by accountants. This is an incredible
ment’s official regulatory body. Its respon- achievement.
sibilities include the need to maintain trust “THE MAIN THEME THAT
and confidence of the public in the charity The main theme that emerges from a
EMERGES FROM A REVIEW
sector. It can do this through promoting review of the inquiries is poor governance
OF THE INQUIRIES IS and management. However, with the
awareness of how charities should be
run and ensuring compliance with legal POOR GOVERNANCE AND introduction of counter-terrorism legislation
obligations. The Charity Commission has MANAGEMENT.” there has also been a focus on any possible
a Regulatory and Risk Framework which support for extremist causes by Muslim
defines the thresholds required for the charities. We will therefore initially consider
Commission to initiate an inquiry which is some examples of inquiries that were
its most serious form of investigation. The The total number of Muslim-led humanitar- conducted into charities due to allegations
Commission’s website states that it will ian-focused charities on the database that of extremism.
consider opening a statutory inquiry where: the Muslim Charities Forum is developing is
currently 129. Of the 21 charities that were
• ‘the regulatory concerns and their investigated by the Charity Commission, 12
surrounding circumstances are serious are no longer on the Charity Commission’s
and where there are indications of register either because they were removed
misconduct and/or mismanagement by the Charity Commission or the charity
decided to withdraw from the Charity
• there is a need to use regulatory
Commission. This shows that about a sixth
powers
of the Muslim-led humanitarian sector has
• there is a need to provide public been subject to inquiries by the Charity
assurance and otherwise safeguard Commission. Though the survey was of
public trust and confidence in the all available reports on the Commission’s
charity or charities more generally’ website, the majority of the inquiries by
An inquiry may be opened therefore if far have been conducted in the past five
there are ‘indications of misconduct and/or years. This contrasts quite sharply with an
mismanagement’, or if there is ‘a significant earlier focus on the educational sector by
breach of trust or non-compliance with the Charity Commission. Nevertheless, this
charity law’ or a ‘significant risk to charity review of the inquiries conducted on British
Muslim charities has found that there have
k
11Case studies
Charity A was investigated after an event
was about to be organised in which a
speaker was alleged to have extremist
views. Money raised at this event was
to be donated to the charity. The Charity
Commission started an investigation into
Charity A and it was while the inquiry was
ongoing that a fundraiser was arrested
by the police after falsely claiming to be
a fundraiser for the charity. The charity
had reported this incident to the Charity
Commission as a serious incident report.
The charity was provided with guidance
and direction on how to improve its record
keeping and accounting procedures.
meetings were not held as required by the to account for 10,000 pounds worth of
governing document, and changes to the expenditure in Pakistan.
Charity B was investigated because it Trustee board were not communicated back
hosted a speaker at an event in July 2014 to the Commission. The Trustees informed
in which he made inappropriate and the Commission that the charity ceased to
operate so it was taken off the register. Charity G was investigated after one of its
unacceptable comments. This became
Trustees was stopped at Heathrow airport
the subject of a television documentary.
as he was about to board a flight to Istan-
The charity was deemed responsible for
bul. The report states:
ensuring that speakers at events run by the
Charity D was investigated as it was
charity do not make any comments which
collecting funds for charitable purposes ‘Trustee A initially told the Police that the
are extremist or unacceptable. It was found
though it was not registered with the purpose of his travel was for tourism and
that the charity had an extremism policy
Charity Commission. The charity was he was carrying £3500 cash which was
but it did not follow it in the organisation
unable to provide accounts and funds were from an insurance claim. Trustee B who was
of this event. The trustees who were pres-
kept in the personal bank account of the spoken to separately and at the same told
ent at the event also did not intervene nor
sole Trustee. The sole Trustee was unable the Police that they were both travelling to
correct the unacceptable statements. The
to meet with the Commission despite the Turkey on behalf of the Charity. As a result
charity was provided with guidance and
Commission attempting several times to Trustee A then amended his account and
direction on how to improve its manage-
arrange such a meeting. The Commission admitted to carrying a further £10,000
ment procedures.
ruled that there had been misconduct and/ in Charity funds raised from collections
or mismanagement in the running of the outside Regent’s Park Mosque, London. It
The majority of inquiries concerning British
charity. was apparent that Trustee B had no knowl-
Muslim charities however concerned poor
edge of the amount of cash Trustee A had
management procedures. We will now
in his possession’.
consider some of the charities that have
been investigated by the Charity Commis-
Charity E was investigated and it was
sion.
found that it had transferred over 53,000
pounds to the personal bank accounts of “TRUSTEES ACROSS THE
two agents acting on its behalf. The charity SECTOR NEED TO BE
Charity C is a charity that was set up was unable to provide any documentation
FULLY AWARE OF THE
in 2014 for humanitarian purposes and on due diligence that it had conducted on
the two agents. The charity was provided RESPONSIBILITIES THEY
participated in providing aid relief to CARRY”
people in Syria. It was investigated by the with guidance and direction.
Charity Commission and received guidance.
However, it failed to provide accounts on
time and when it did so there was a large
Charity F was investigated after an anti- The Commission examined the charity’s
discrepancy between the figures quoted
semitic post was put up on its Facebook accounts and found that the charity had
in the accounts and the charity’s bank
page. The charity did not have a policy on made total payments of 327,793 pounds
records. For 2014, the charity’s accounts
social media and on further inspection over a two-year period. Over half were
stated that its income was 24,798.01
the charity was also found to have poor through cash withdrawals (185,805
though the bank account for the same year
financial controls. The charity was unable pounds). There was only one Trustee as
showed an income of 46,995.01. Trustee
12a signatory on the account. Two of the directed to improve its financial manage-
charity’s Trustees stated that they did not ment and to report back on progress. The
give permission to the other Trustee to Commission followed up on these actions
withdraw money from the account and take in 2016. However, due to the lack of
it abroad. Within Turkey itself, the charity progress in implementing recommenda-
could only account for 5,862 pounds worth tions and also due to a series of complaints
of expenditure. An examination of the that the Commission had received the
premises of the charity found receipts for Commission decided to appoint an Interim
a television, DVD player and dental work. Manager at the charity who was to work Dr. Atif Imtiaz is MCF’s Senior Research
The charity was also making loan repay- alongside the newly appointed Chief Exec- & Policy Advisor. Dr Atif has been the
Academic Director at the Cambridge Muslim
ments on a Mercedes car though there was utive Officer. College. He has also published a book on
no formal agreement in place concerning British Muslims called ‘Wandering Lonely in
the car. The inquiry found that at least a Crowd’.
99,000 pounds were spent on behalf of
the charity and there was no evidence to
explain how this money had been spent. “IT SHOULD BE NOTED THAT [1] These figures are true as of 5th
Evidence of charitable work was provided THE CHARITIES THAT HAVE September 2019.
by images posted on the Charity’s website. BEEN FOUND WANTING
These images however were pictures taken ARE GENERALLY SMALLER IN
from other websites. The Trustees also MCF comment:
SIZE ”
never met in a trustee meeting, instead We approached the charities mentioned
one of the Trustees would meet with each in the Charity Commission investigations
Trustee separately and produce minutes of to provide their viewpoints, unfortu-
whatever was agreed in these meetings. The Charity Commission has also conduct- nately some declined and others did
The charity is no longer registered with the ed inquiries on Christian and Jewish not respond to our request. We would
Charity Commission. charities since 2008 and we found that the welcome comments in relation to the
Charity Commission has investigated 25 Charity Commission’s investigations for
Christian charities and 23 Jewish charities the next issue of The Forum.
since 2008. Though there isn’t the same
Charity H had been investigated by the amount of interest in Christian and Jewish
Charity Commission since 2010. It had charities as there is in Muslim charities, by
received regulatory advice and guidance reading the reports one can see that the
especially in relation to working inter- Commission has kept to the same exacting
nationally and conducting due diligence standard on charities run by members of
checks on potential partners. The charity other faiths. This should lesson the intensity
submitted a serious incident report in 2012 of the charge that the Charity Commission
after concerns were raised internally about has an excessive focus on British Muslim
its field offices in Sudan and Gambia. These charities. It should also be kept in mind
allegations in relation to financial moni- that the British Muslim charitable sector
toring and record-keeping were of such a is much younger and that many of the
serious nature that the Charity Commission charities investigated were newly formed.
opened a statutory inquiry into the charity In time, one expects that there will be less
in 2013. The Commission met with the investigations required into the Muslim
Trustees in 2014 and inspected the charity’s charitable sector.
book-keeping. The charity was then in 2015
Lessons for the Sector
There are clearly some important lessons to be learned across the sector from the inquiries that have been conducted on British
Muslim charities. These lessons include:
a) Trustees across the sector need to be fully aware of specialist knowledge and many people setting up new
the responsibilities they carry – they essentially ensure charities come with a great deal of good will but lack
that the charity remains trustworthy and that charitable expertise on how to provide aid in the most secure and
giving continues to hold the confidence of donors professional manner
b) Some of the people occupying senior positions of d) Unfortunately, there will always be some unscru-
leadership within the sector are unaware of the legal pulous individuals who will use charities as a way of
and professional requirements of running charities defrauding the public. The sector needs to be aware of
this possibility and should act to prevent any harm or
c) There needs to be a broader discussion on the merits
unscrupulous behaviour as it may harm the sector as a
of opening smaller charities in response to humanitar-
whole
ian crises, large scale humanitarian disasters require
13Reflections on serving as
Chair of the IDC
STEPHEN TWIGG
t was a privilege to
I serve as Chair of the
International Develop-
ment Select Committee
between 2015 and 2019
and to learn from the
vibrant NGO sector which works hard to
address the twin challenges of achieving
sustainable development and humanitarian
relief. The Muslim charitable sector plays a
crucial and prominent role which makes a
real difference to communities across the
world.
The adoption of the Sustainable Devel-
opment Goals in 2015 was an important country disabled people’s organisations Three of the gravest humanitarian crises
milestone in the international community’s raise real concerns about the impact of which we have seen in recent years are
efforts to address poverty, inequality and benefit changes on many disabled people. Yemen, Syria and the Rohingya. In each
climate change. The Global Goals and the case, it is vitally important that the UK
2030 Agenda build upon the important works both multilaterally and with civil
progress that was made with the Millenni- society organisations to promote peace,
um Development Goals (MDGs) in reducing “ACROSS MANY PARTS OF justice and human rights. It is also crucial
extreme poverty. Unlike the MDGs, the that we place a greater emphasis on
THE WORLD, WE HAVE
Global Goals are universal and they prevention of such crises happening in the
emphasise inequality and sustainability as SEEN AN INCREASE IN first place. We owe it to the millions of civil-
well as poverty reduction. FORMS OF POPULISM ians who have borne the brunt of conflict
WHICH QUESTION BOTH not to forget about them but to work with
This agenda is challenging for the United THE IMPORTANCE OF them to rebuild their lives, their communi-
Kingdom. Rightly, there is real pride in this ties and their countries.
UNIVERSAL HUMAN RIGHTS
country about our national commitment
to development – whether it is cross-party AND THE LEGITIMACY
support for spending 0.7% of national OF THE MULTILATERAL
income on development assistance or the INSTITUTIONS...”
incredible generosity of communities across
the UK in their charitable giving, especially
in response to humanitarian crises. Howev-
er, policy is not always coherent across My second example is about coherence
different parts of the Government. between DFID’s work and wider foreign
policy. The importance of a rules-based
The United Kingdom showed real leader- system with strong and effective multilater-
ship in the drafting and adoption of the al institutions is perhaps greater today than
Global Goals in 2015. However, since then, ever before. However, across many parts Stephen Twigg chaired the International
there has not been the same sense of of the world, we have seen an increase in Development Committee between 2015 and
urgency about the implementation of the forms of populism which question both the 2019. He served as MP for Liverpool West
Goals. In particular, this has been the case importance of universal human rights and Derby (2010-19) and Enfield Southgate (1997-
2005). He was Minister for Schools (2002-5).
in domestic policy where DFID’s powerful the legitimacy of the multilateral institu-
focus on tackling poverty globally has tions upon which these rights depend.
not been matched in our own country. If these political forces continue to gain
A striking example of this contrast is in traction there is a risk that we fail to make
how policy affects disabled people. DFID the progress needed to achieve the Global
has shown welcome global leadership on Goals – for example on women’s rights,
disability-inclusive development yet in this climate change or good governance.
14Leading the way
ASIF AZIZ
t has been my guiding
I
principle, as a British
Muslim philanthropist,
to find a niche where I
feel I can make a real
difference to causes
close to my heart. For me, this cause is
education which has always been, amongst
other things, a means of empowerment,
of becoming independent, and a way of
enabling one to effectively give back to
society. My support for the Prince’s Trust’s
Mosaic initiative providing mentors for
primary school Muslim girls in the UK and
Camfed’s Campaign for Female Education
that supports education for young girls
in Africa attests to this. However, many
barriers to educational opportunities
remain, and I feel it is a matter of urgency In our first year of running this scheme, we heartened by the potential that is amongst
to remove these. It is due to the value I initially offered 50 scholarships but due to our youth and I am glad that I have taken
place on education that the Foundation’s the overwhelming demand and high calibre this opportunity to support them. I encour-
priorities are now firmly focused on its of applicants, we found ourselves, again age others to do the same.
scholarship schemes. and again, increasing the number award-
ed until we eventually awarded over 150
scholarships. It has been truly humbling
to see so many committed and talented
“I AM DRIVEN BY MY BELIEF young Muslims come through this scheme.
I’ve been extremely impressed with their
IN THE POTENTIAL OF AZIZ
sincerity and determination to serve their
SCHOLARS TO IMPROVE THE communities.
CIRCUMSTANCES OF BRITISH
MUSLIM COMMUNITIES.” For our 2020 scheme we are offering 250
scholarships, and I am keen that these
are awarded to truly deserving recipients,
who couldn’t otherwise afford to study, Asif Aziz is a property entrepreneur and
philanthropist. He is the Founder and CEO
Since its inception, the Aziz Foundation to progress their careers and give back to
of Criterion Capital, which is the largest
has worked primarily to provide maximum British society. I eagerly look forward to landowner between Piccadilly Circus and
support to the most disadvantaged and seeing our new scholars come through and Leicester Square. He is also the Foundation’s
unrepresented communities across Britain, hope to see them forge new collaborations Chair. His interests include primary school
education, tackling homelessness and
of which the Muslim community is one of and partnerships amongst themselves.
international poverty relief.
many. Within this, the Foundation aims to
prioritise the education of young British While I am apprehensive of the scale of the
Muslims which in addition to its own bene- challenges that Muslims face within Higher
fits will also help improve public percep- Education and in their professional lives, I
tion and promote fairer representation. am driven by my belief in the potential of
Through this we hope to bridge the gap Aziz Scholars to improve the circumstances
between such communities and the wider of British Muslim communities; I believe
public allowing for our scholars to apply in their ability to present the best face of
their acquired leadership skills across their Islam; and I believe in their vision, as they
field of choice. Whether it be academia, seek to resolve the complex issues our
advocacy, arts, humanities or science, the ummah and society faces.
Aziz Foundation believes the time is ripe for
Muslims to realise their potential as agents Finally, and in all humility, I want others
of change. who are also blessed with wealth to also
consider ways in which they can give back
to their communities. I have been truly
15On mergers between
charities
ALEX SKAILES
voidance of duplication Join, amalgamate, combine are just some opportunity to share risk in an increasingly
A
and the role of mergers, of the words I hear referred to. The Charity compliance driven environment. The list
have become increasingly Commission gives a definition of merger could continue.
prominent topics in the in their Guidance Note CC34. In its fullest
current debate surround- sense it can mean two or more separate With merger discussion on the Board agen-
ing charities’ governance charities coming together to form one; a da as an annual standing item it will be
and performance. new charity may be formed to continue the considered less contentious and will give
work or take on the assets of the original Trustees the opportunity to consider wheth-
At Cass, our Centre works to enable charities, or one charity may assume control er their current operating stance truly gives
charities to maximise their effectiveness. of another. But this is narrow thinking and them the greatest ability to deliver their
As part of this, it’s our aim to encourage one shouldn’t lose sight of other options; charitable objectives. Proactive, timetabled
Boards and their management teams from the formation of a group of charities discussion creates time for debate on
to consider at regular intervals, whether operating through a parent and subsidiary whether merging can be used as a positive
their organisations could achieve more by structure with a common sense of control strategic tool. Too often these discussions
joining with another. It is a subject that we and overall purpose, to alternatives such are left too late, with any resultant mergers
encourage our Charity MSc students and as joining support functions, be it finance, being associated with financial fragility or
Executive Education delegates to debate, HR or technology, or amalgamating one failure.
underscoring that due consideration must particular aspect of charitable activity.
be given to the arguments for and against, As ever, it has to be about holding the
while always holding the interests of their Invariably, merger is associated with an charitable cause absolutely at centre
organisation’s beneficiaries at the centre of increase in scale and a charity’s ultimate stage and not blurring what’s in the best
their thinking. focus should be always on the increase in interest of the organisation with that of its
the positive social or environmental change beneficiaries.
that can be created, rather than top line
income for income growth’s sake alone.
“FOR OTHERS, A MORE Boards should be asking whether expan-
FORMAL MODE OF sion will facilitate their organisation to
COLLABORATION CAN reach more unmet need, allow engagement
REAP SIGNIFICANT with a more diverse population, give wider
geographical reach or enable access to
BENEFITS, ALLOWING
services on a more consistent and higher
THEIR CHARITABLE quality basis.
AIMS TO BE DELIVERED
MORE EFFECTIVELY AND With growth comes an analysis of econ-
POTENTIALLY, WITHIN A omies of scale and cost savings and this
Alex Skailes is Director at Cass Business
SHORTER TIMEFRAME.” is where discussions frequently come to
School’s Centre for Charity Effectiveness and
a halt. The barrier cited being that the co-lead for the Resource Management module
level of predicted savings simply do not on their Charity MSc programme. She is an
justify combining forces. Indeed, while experienced chair and trustee and is currently
on the finance and audit committee of the
there may be potential for some savings,
Seckford Foundation. Alex’s research focuses
There is certainly no one right answer and the reality for many smaller charities is on charity mergers and collaborations and the
the optimum strategy for one organisation that their costs are already pared down resultant social value created.
at a particular time, will not be the best for to the minimum. It is necessary to look
another. For some organisations staying beyond the direct finances to the other
beautifully small is the way they can meet advantages that merging could potentially
best their current and future beneficiaries’ bring and to explore potential for increased
needs. For others, a more formal mode of or new capabilities. These could include
collaboration can reap significant benefits, opportunities to upskill, to gain specialist
allowing their charitable aims to be deliv- knowledge or a chance to evolve through
ered more effectively and potentially, within enhanced creativity or innovation. There
a shorter timeframe. may be access to new technologies or an
16A good neighbour is better
than a bag of money
MATTHEW GERAGHTY
ommunities thrive where
C
neighbourliness exists.
Which is why good
neighbours are worth
their weight in gold.
Perhaps more. And we
at Human Relief Foundation believe in
being good neighbours. It is the engine of
our humanitarian work. An approach that
sees the idea of neighbourliness extend
far beyond our doorstep, or street end, to
encompass all humankind. In a progres-
sively atomized world, in which people
appear to be forgetting that the essence
of humanity is connectedness, it provides a
counterpoint.
Fortunately, neighbourliness is neither a Particularly as we live in a period of time teams in physically distributing aid abroad.
myth, nor an artefact of a bygone age, in which there has been a slow erosion of Experiencing, for a brief time, the life of an
and most of us have an understanding, trust in many of the major institutions of aid worker, whilst simultaneously becom-
if not a definition of it – with the idea state. Where fake news, and empty brand ing, almost without exception, long-term
of being able to borrow a cup of sugar claims cause people to cast an equally supporters and advocates.
common shorthand for it. And whilst this jaundiced eye over the working practices of
is, in many ways, a seemingly ordinary, the charity sector, as they do with any other In uncommon times it is sometimes the
everyday, run-of–the-mill, concept. It area of twenty first century life. most common approaches that reap
contains within it a transformative power the greatest rewards. And so it is with
few would believe. For not only is it able to These social changes have provoked a neighbourliness. A simple concept, stripped
connect us at an individual, personal, level. response within the sector, but also wider of artifice, it is both a call to action, and a
Diminishing distance between people and society. And that response is a search for reminder that we are an unusually sociable
their communities, between ourselves and the authentic – and in this context authen- animal, which thrives on community.
our donors, between our donors and our ticity has a very human face. A neighbourly
beneficiaries. However, it requires action. face we would say. With our supporters
Neighbourliness is never passive. now wanting to see where, how, and
by whom, their charitable donations are
utilised. But clarity, that ability to clearly
see the ‘truth’ of an organisation can be
“NEIGHBOURLINESS IS difficult if one is faced with a well-polished
NEITHER A MYTH, NOR AN brand. It is therefore important for us to
ARTEFACT OF A BYGONE develop close, intimate, relationships with
our communities, so as to produce a shared
AGE”
sense of purpose and belonging.
This connectedness is in many ways
Matthew Geraghty is head of marketing &
exemplified by our fundraisers, whom our
communications at Human Relief Foundation
Getting this message across is as important supporters see not only raising money where he is leading the organisation’s
as the reality of our operational practices. but also distributing the aid. Acting, in a approach to ‘storytelling’ practices. He has
For although you can’t simply judge a book very literal sense, as the donor’s hands, previously worked as a communications
by its cover, the cover contains a promise consultant, magazine editor & journalist,
fulfilling their neighbourly obligations, and
managed arts & heritage sites.
that the exterior will reflect what is found in doing so, closing the gap between us
within. And our challenge as a charity is to all. It is an approach further supported
continuously ensure that the content of our by our volunteer deployments which give
work aligns with this neighbourly promise. donors the opportunity to accompany our
17You can also read
