Report: British Muslims donate £2.2bn annually as Ramadan boosts charitable giving
Muslims across United Kingdom are increasing their charitable giving, in keeping with the spiritual emphasis of holy month on generosity
LONDON (MNTV) — As Ramadan begins, Muslims across the United Kingdom are increasing their charitable giving, in keeping with the spiritual emphasis of the holy month on generosity, zakat and supporting those in need.
A recent report by the U.K.-based think tank Equi highlights the scale and impact of British Muslim philanthropy, describing the community as the most generous in the country.
Titled Building Britain: British Muslims Giving Back, the report finds that British Muslims donate an estimated £2.2 billion annually to charitable causes.
On average, Muslims give four times more to charity than the typical U.K. adult, with the figure rising to ten times more among higher earners.
Charitable giving is deeply rooted in Islamic teaching. Zakat — the compulsory annual donation of 2.5 percent of surplus wealth — and voluntary sadaqah form central pillars of religious practice.
According to the report, zakat alone accounts for up to 40 percent of funds raised by Muslim charities in the U.K.
While much of this giving has traditionally supported international humanitarian causes, the report identifies a growing shift toward domestic spending.
Younger generations of British Muslims, in particular, are increasingly directing donations toward visible crises in the U.K., including homelessness, food insecurity and child poverty.
Polling cited in the report shows that Muslims exceed the national average in donating to healthcare and mental health charities, and are nearly twice as likely as the general population to give to international humanitarian relief.
The report notes that the number of Muslim charities operating in the UK has grown significantly over recent decades — from just two in 1960 to more than 1,000 by 2020.
Together, these organizations reported a combined annual income of £708 million in 2020 alone.
Muslim-led charities leading welfare provision
Major Muslim-led charities are also playing a growing role in domestic welfare provision. The National Zakat Foundation, founded in 2011, has distributed more than £25 million to over 21,000 beneficiaries in the U.K., focusing on housing support, hardship relief and employment assistance.
Its 2024 economic impact report found that every £1 distributed saved £73 in public funds by preventing homelessness and reducing pressure on local authorities.
Similarly, Islamic Relief U.K. has expanded its domestic grants programme, distributing approximately £5 million in 2024 to projects supporting refugees, vulnerable families and local community initiatives, regardless of faith background.
The report argues that Muslim charities are increasingly filling gaps left by a strained welfare state, providing housing aid, emergency cash grants, mental health support and food assistance to people of all faiths and none.
Barriers limiting full potential
However, it also outlines several barriers limiting the sector’s full potential.
These include a lack of formal government recognition, limited faith literacy among public bodies, securitisation under counter-terror frameworks and financial challenges such as debanking.
Many organizations said that transfers for humanitarian projects abroad had been delayed due to banking restrictions.
The issue is linked to “derisking,” a practice whereby banks limit or terminate relationships perceived as high-risk in order to comply with anti-money laundering and counter-terrorism financing regulations.
As financial regulations in the U.K., U.S. and Europe have tightened, banks have become more risk-averse.
Some charities report that simply working in conflict-affected or disaster-hit countries can trigger heightened scrutiny or service withdrawal, even when their activities are lawful and transparent.
Equi calls for stronger collaboration between government and faith-based charities, including match-funding initiatives, improved engagement with Muslim-led organizations and safeguarding financial access for registered charities.
As Ramadan channels billions of pounds into charitable causes, the report concludes that British Muslim generosity represents a significant and often under-recognized contribution to the U.K.’s social fabric — one that could be further harnessed to benefit society as a whole.
We must take charge of our narrative. Research indicates that 92% of their Muslim coverage is negative. Help us change that.
Have Your Say!
Have you been affected by the issues raised in this story? Please share your experiences by emailing haveyoursay@soundvision.com.
Please include a contact number if you are willing to speak to a Muslim Network TV’s representative. You can also get in touch in the following ways:
Tweet: @MuslimNetworkTV
