Ramadhan call to register Mosques and community groups as charities

(Immediate Release - 27 August 2008)

Ramadhan is a time when many community organisations and Mosques benefit from the generosity of Muslim people. Many organisations don’t realise that by registering with the Charity Commission the money they are given could go even further, helping them to make an even greater impact on their communities.

This Ramadhan the Charity Commission, the independent regulator of Charities in England and Wales, is encouraging organisations that think they might have charitable status to contact them on 0845 300 0218 to find out how they can register.

There are many benefits of registering as a charity. Charities registered with the Charity Commission:

• Have the benefit of a charity registration number and the badge/brand of charity, increasing public trust and confidence in their organisation.
• Can maximise the financial benefit of donations through Gift Aid arrangements. This means that currently for every £1.00 donated through Gift Aid charities can claim back up to 28p from the government.
• Benefit from generous tax breaks – they do not normally have to pay income/corporation tax, capital gains tax, or stamp duty, and gifts to charities are free of inheritance tax.
• Have access to free expert advice and tailored guidance from the Charity Commission.

Registering as a charity is not a complicated process, visit the Commission’s website: www.charitycommission.gsi.gov.uk or call 0845 300 0218 for further information.

Ghulam Rasool, Head of the Charity Commission’s Faith and Social Cohesion Unit said:

“The month of Ramadhan is here again. During this month fasting, praying and giving charity are a means for spiritual salvation, with Muslims observing thought for the less fortunate by actively supporting the poor and needy through charitable donations at home and around the world. If you are involved in an organisation that will be raising funds during Ramadhan, and are doing charitable work, then I’d encourage you to take a look at our website to find out how you can register as a charity. Registration brings many benefits, and will help you maximise the money you raise so you can make an even greater contribution to those in need. I wish you a happy Ramadhan Mubaarak.”

Saleh Saeed, CEO of Islamic Relief, the largest registered Muslim charity in England and Wales said:

“We registered as a charity with the Commission in 1989. Since then our organisation has grown from strength to strength and we've been able to help thousands of people in need across the world. For us, being a registered charity shows everyone that we're open and accountable, giving our donors confidence that their money is used properly to really make a difference. It's also been useful to get free expert support and advice from the Commission over the years, not to mention the clear financial benefits that come with charitable status.”

Ends.

Notes to editors:

• 1. The Charity Commission is the independent regulator for charitable activity in England and Wales. See www.charitycommission.gov.uk for more information.
• 2. Commission spokespeople are available for interview and comment. Contact the Commission’s press office on 020 7674 2333 for further information.
• 3. For information on how to register your organisation as a charity, visit the Charity Commission’s website: www.charitycommission.gov.uk. Summaries of advice on registering as a charity are available in English, Urdu, and Arabic.
• 4. If you are a UK charity you can claim back basic rate tax relating to Gift Aid donations from individuals, from HMRC Charities.  In practice this means that for every £1.00 donated through Gift Aid you can claim back 25p. In addition HMRC will automatically pay you a further 3p for every £1 Gift Aid donation made to you between 6 April 2008 and 5 April 2011; this transitional relief has been provided by Government to allow charities to adjust to the fall in basic rate tax (from 22 per cent to 20 per cent) from 6 April 2008. This means that for every pound donated under the Gift Aid scheme the charity will continue to receive 28p. For more information about the Gift Aid Scheme, visit the HM Revenue and Customs website: www.hmrc.gov.uk
• 5. There are an estimated 1,398 Muslim charities on the Charity Commission’s Register of Charities. These have a combined income of £221 million.  Our research so far, which is based on information charities have given us, has identified that at least 29,495 charities are either expressly set up to advance religion or have a faith-based approach to their work. The combined income of these charities is £8.2bn.¹
• 6. In 2007, the Charity Commission set up The Faith and Social Cohesion Unit. This is a dedicated team within the Commission which:
  • works to improve the Commission’s and society’s understanding of faith-based charities;
  • engages with faith communities to identify and support organisations that could be but are not currently registered with the Commission; 
  • assists faith-based charities to improve their standards of governance and accountability and thereby increase their effectiveness; and
  • works collaboratively to achieve and promote well run and effectively regulated faith-based charities.

The team are initially working with Mosques and other Muslim charities. A Project Board including representatives of the Mosques and Imams National Advisory Body (MINAB) has been established to direct and evaluate the team’s work and to provide specialist advice. For more information about the Faith and Social Cohesion Unit, please see the Commission’s website.

• 7. Islamic Relief Worldwide (registered no. 328158) registered with the Charity Commission in 1989 and has an annual income of more than £35 million. For further information about the charity’s work, please see: www.islamic-relief.com.

PR29/08

 

1. These statistics are based on information taken from the Central Register of Charities in England and Wales between February and July 2008.