UK Muslims Donate £2.2B Yearly, Four Times National Average

British Muslims are quietly funding a massive charitable safety net across the United Kingdom, donating £2.2 billion annually to causes at home and abroad. Higher earners in the community give ten times more than the typical British donor.

The generosity stems from Islamic teaching, particularly zakat, which requires Muslims to donate 2.5 percent of their surplus wealth each year. This single practice alone accounts for up to 40 percent of all funds raised by Muslim charities in the UK.

The impact is remarkable. The National Zakat Foundation has distributed more than £25 million to over 21,000 people in the UK since 2011, focusing on housing support and hardship relief. Every £1 they distribute saves £73 in public funds by preventing homelessness and reducing pressure on local services.

The sector has grown dramatically over six decades. Just two Muslim charities operated in the UK in 1960, but by 2020 that number had swelled to more than 1,000 organizations with a combined annual income of £708 million.

A promising shift is happening among younger British Muslims. They're increasingly directing donations toward visible crises in their own communities, including homelessness, food insecurity and child poverty.

Islamic Relief UK distributed approximately £5 million in 2024 to projects supporting refugees, vulnerable families and local initiatives, regardless of recipients' faith backgrounds. These organizations are 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.

Muslims exceed the national average in donating to healthcare and mental health charities. They're nearly twice as likely as the general population to give to international humanitarian relief.

The Ripple Effect

This generosity is reshaping Britain's social safety net in ways few people recognize. As Ramadan begins and charitable giving increases even further, these donations are quietly keeping families housed, feeding hungry children and supporting mental health services across the country.

The report's authors call for stronger collaboration between government and faith-based charities, including match-funding initiatives that could multiply the impact even further. When one community gives this generously, everyone benefits.