A new report has highlighted the scale of charitable giving by British Muslims, estimating annual donations at around £2.2 billion, roughly four times higher than the average UK adult. Titled Building Britain: British Muslims Giving Back, the study was published by Equi and examines the community’s contribution to both international humanitarian aid and domestic social support.

The report states that British Muslims are the most generous donors in the UK. While a significant proportion of Muslim charitable giving is directed toward international causes, the study identifies substantial untapped potential to increase support for initiatives within the UK. It notes that expanding domestic giving could strengthen responses to poverty, health, and social inequality at a local level.

This pattern of generosity is closely linked to Islamic principles of giving, particularly Zakat and Sadaqa. Zakat is a compulsory contribution of 2.5 percent of surplus wealth, while Sadaqa refers to voluntary donations. According to the report, Zakat accounts for up to 40 percent of funds raised by surveyed Muslim charities, with the remaining 60 percent coming from other forms of giving.

Authored by Taibah Al-Fagih and Dr Mohammed Sinan Siyech, the report draws on polling data, interviews with charity leaders, and sector-wide analysis. It estimates that British Muslims donated approximately £2.2 billion during the 2023 to 2024 period. The findings also show that around half of Muslim donors planned to increase their charitable giving in the following year. High-earning Muslims, particularly those with annual incomes between £75,000 and £99,000, were reported to be ten times more generous than individuals in the same income bracket within the wider population.

Historically, much Muslim charitable giving in the UK has focused on international aid, reflecting family ties abroad and a sense of global Muslim solidarity. However, the report identifies a generational and cultural shift toward domestic causes. Younger British Muslims, especially those from third and fourth-generation families, are increasingly supporting issues such as homelessness, food insecurity, and child poverty within the UK. The study notes that young professionals are responding to visible social challenges in their local communities.

Polling conducted by Savanta for Equi shows that British Muslims exceed the national average in donations to mental health and healthcare charities by around 10 percent. At the same time, international humanitarian giving remains almost double the national average. The report suggests this imbalance is partly driven by limited awareness of domestic need, observing that some donors are more familiar with supporting orphans overseas than vulnerable children within the UK.

The report highlights several organisations making a measurable impact domestically. The National Zakat Foundation, established in 2011, focuses exclusively on tackling poverty within the UK. It has distributed more than £25 million to over 21,000 people, providing housing assistance, hardship relief, and employment support. In 2023 alone, it allocated £7 million in Zakat donations, with 76 percent directed toward hardship relief. Its housing fund reportedly helped prevent evictions and saved local authorities £28.8 million in 2023, equivalent to £73 in public savings for every £1 donated.

Other charities cited include Islamic Relief UK, which issued £5 million in grants to UK-based projects in 2024, and the Al-Khair Foundation, which contributed £300,000 to Great Ormond Street Hospital. Al-Khair Foundation has also provided emergency assistance during domestic crises, including the Rochdale floods and the Grenfell Tower fire.

Despite these contributions, the report outlines several challenges facing Muslim-led charities. These include limited government recognition, low levels of faith literacy within public institutions, securitisation and stigmatisation, and financial barriers. It notes that post-9/11 policies have often linked Muslim charities with extremism concerns, creating regulatory and reputational obstacles.

According to a 2024 survey by the Muslim Charities Forum, nearly half of Muslim charities have been affected by debanking. The report also states that funding criteria frequently exclude faith-based services, limiting access to public and institutional support.

To address these issues, the report recommends greater government engagement with faith-based charities, the introduction of match-funding schemes similar to UK Aid Match, expanded Gift Aid tax relief, stronger protections against debanking, and clearer distinctions between religious promotion and faith-informed service delivery. It concludes by stressing the importance of inclusive and faith-literate public policymaking.