Elham Asaad Buaras
British Muslims are the UK’s most generous donors, giving an estimated £2.2 billion to charitable causes each year, four times the national average, according to a comprehensive new report from the think tank Equi. However, the study reveals that systemic barriers, including securitisation, financial exclusion, and a lack of government recognition, are preventing this significant philanthropic force from maximising its impact on urgent domestic crises.
Titled Faith, Generosity and the Changing Landscape of British Muslim Giving, the report released earlier this month highlights a powerful generational shift, with younger British Muslims increasingly directing Zakat and Sadaqa (obligatory and voluntary alms) towards local issues such as homelessness, food poverty, and mental health. This trend complements the community’s longstanding commitment to international humanitarian aid.
“British Muslim charities are already filling critical gaps in the UK’s welfare state, providing services to people of all faiths and none,” said Dr Mohammed Sinan Siyech, co-author of the report. “Our research shows there is substantial, untapped potential to further harness this remarkable generosity for domestic good, but current policy frameworks are often a hindrance rather than a help.”
The report notes that major British Muslim charities such as the National Zakat Foundation (NZF), Islamic Relief UK, and Al-Khair Foundation are delivering substantial domestic programmes. NZF, the UK’s largest distributor of direct cash grants, saved local authorities an estimated £28.8 million in 2023 by preventing homelessness—demonstrating a high return on charitable investment for the public purse.
Despite this proven impact, the sector continues to operate under disproportionate scrutiny. The report identifies “securitisation and stigmatisation”, particularly through counter-terrorism policies like Prevent, as a primary challenge—damaging trust and forcing charities to divert resources to managing risk and reputation.
A critical operational barrier is “debanking.” A related survey by the Muslim Charities Forum found that nearly half of domestic-focused Muslim charities face significant banking difficulties, restricting their ability to operate effectively.
“Policy since 9/11 has conflated Muslim-led charity with terrorism and extremism, based on assumptions rather than evidence,” said Dr Samantha May of the University of Aberdeen, who was interviewed for the report. This environment, charities argue, is compounded by a “lack of faith literacy” within government, where their work is often channelled through faith liaison officers instead of being engaged with as professional social service providers.
The report calls for a strategic shift in government policy to unlock the full potential of philanthropic giving. It urges the government to formally recognise and work in genuine partnership with Muslim and other faith-based charities, drawing on their on-the-ground expertise to co-produce solutions in areas such as housing, poverty, and social care.
It also recommends introducing a domestic match-funding scheme, modelled on “UK Aid Match”, to encourage greater public giving to eligible UK causes.
To ensure fair treatment across the sector, the report emphasises that His Majesty’s Treasury must guarantee all registered charities access to basic banking services, thereby ending discriminatory debanking practices.
Finally, it calls for clearer grant-funding criteria that distinguish between charities whose primary purpose is the promotion of religion and those that deliver essential, faith-literate services to the wider public, ensuring that the latter are not unjustly excluded from support.
“The message is clear,” said Taibah Al-Fagih, co-author of the report. “British Muslim charity is a £2.2 billion asset for the entire nation. By moving from a framework of suspicion to one of partnership, the government can strengthen social cohesion, ease pressure on public services, and ensure this generosity benefits everyone.”
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