British Muslims are among the UK’s most generous donors, giving an estimated £2.2 billion (nearly $3 billion) annually to charitable causes — up to four times the national average, according to new research by think tank Equi.
While much of this generosity has traditionally supported international aid, there is a growing shift towards domestic giving.
“While a significant share of British Muslim charitable giving supports international humanitarian causes, there is substantial untapped potential to expand support for UK-based initiatives,” Equi noted in its report.
This trend is driven in part by a generational and cultural shift.
Young British Muslim professionals increasingly direct their donations to causes within the UK, both faith-based and secular. They are responding to visible local crises, including homelessness, food insecurity, and child poverty.
Equi highlights the role of British Muslim charities in filling gaps left by a struggling welfare state.
“Despite barriers, both large and small organisations offer housing aid, emergency cash grants and psychological support aimed at diverse groups of beneficiaries, regardless of their faith,” the report said.
“This is valuable work that directly eases pressure on strained public services, which often goes unrecognised.”
However, the report also flags significant challenges for domestic engagement. These include debanking, securitisation, restrictive government funding criteria, and a lack of full government recognition, which can hinder the impact of Muslim-led charities.
To address these barriers, Equi calls for more faith-literate and inclusive policymaking.
“Strategic engagement with Muslim and other faith-led organisations, based on principles of collaboration and inclusion, can enhance social cohesion, maximise benefit from Muslim initiatives and experiences, and reshape perceptions of British Muslim contributions to civic life,” the think tank said.
Equi also suggests that proven approaches such as “match-funding” could encourage more UK-focused donations from faith-based organisations.
“This approach would ensure that both domestic and international vulnerable populations are supported by UK aid,” the report stated.
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