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A Celebration of

Hope

Islamic Relief USA 2002 Annual Report

Islamic Relief USA 2002 Annual Report

table of contents page Letter to Our Supporters

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Mission / 2002 Review . . . . . . . . . . . . . .3 Focus: Palestine . . . . . . . . . . . . . . . . . . .4 Focus: Afghanistan

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Focus: Chechnya & Ingushetia . . . . . . . .6 Focus: Pakistan (Kashmir projects)

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Project Summaries: Africa . . . . . . . . . . .8 Project Summaries: Asia

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Project Summaries: Eastern Europe

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Ramadan Projects . . . . . . . . . . . . . . . . .11 Udhiyah / Qurbani Projects . . . . . . . . . .12 Orphan Projects . . . . . . . . . . . . . . . . . .13 Domestic Projects . . . . . . . . . . . . . . . . .14 Waqf Projects . . . . . . . . . . . . . . . . . . . .15 Management Report . . . . . . . . . . . . . . .16 Letter from Independent Auditors . . . . .17 Statement of Financial Position

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Statement of Activities . . . . . . . . . . . . .19 Statement of Cash Flows . . . . . . . . . . . .20

Islamic Relief USA is a member of the global Islamic Relief Worldwide family. Islamic Relief Worldwide is an international relief and development organization, dedicated to alleviating the suffering of the world's poorest people. Islamic Relief Worldwide has full-time offices in 25 countries and provides assistance in over 30 countries worldwide. Islamic Relief Worldwide is a member of the U.N. Economic and Social Council (special category), and is a signatory to the Code of Conduct for the International Red Cross and Red Crescent Movement and NGOs in Disaster Relief. It is committed to implementing the Code of Best Practice in the Management and Support of Aid, as stated by "People In Aid." Islamic Relief Worldwide always aims to meet U.N. standards in all of the projects it implements.

Yo u n g C h e c h e n b o y page 1

Islamic Relief USA 2002 Annual Report

10 years strong in the U.S. a message to our supporters As-Salamu ‘Alaykum wa Rahmatullah (May peace, and God’s mercy be upon you) The last ten years of Islamic Relief USA’s work has demonstrated a firm and resilient partnership among our donors and supporters here in the United States and our beneficiaries abroad. In many cases, we are the only advocates for people in need in several countries around the world. Our partnership ignores geographical boundaries and ethnic affiliations. We insist that no child should sleep hungry, that no widow should suffer hardship, and that no family should live without the “luxuries” of clean water, clothing, and healthcare. We sincerely thank you for your decade of unfaltering dedication to Islamic Relief’s work and count on your continued support for our organization and for your partners abroad. Jazakum Allahu khayran (May God reward your goodness with His goodness)

Ahmad El Bendary President

Islamic Relief flag over office in Nazran, Ingushetia

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Islamic Relief USA 2002 Annual Report

our mission

Islamic Relief strives to alleviate suffering, hunger, illiteracy, and diseases worldwide regardless of color, race, or creed, and to provide aid in a compassionate and dignified manner. Islamic Relief aims to provide rapid relief in the event of human and natural disasters and to establish local development projects to eradicate poverty, illiteracy, and diseases.

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highlights

Children in a refugee camp in Afghanistan

A review of Islamic Relief Worldwide’s projects in 2002:

Education & Training Projects

Emergency Relief Projects

(Afghanistan, Albania, Bosnia, Mali, Palestine) Total Beneficiaries: 68,732

(Afghanistan, Chechnya, Congo, Palestine) Total Beneficiaries: 706,050

Water & Sanitation Projects

Orphan Projects

(Albania, Mali, Pakistan) Total Beneficiaries: 45,973

(Albania, Bangladesh, Bosnia, India, Jordan, Kenya, Mali, Pakistan, Palestine, Sudan) Total Beneficiaries: 10,047

Income Generation Projects

Ramadan Projects

(Albania, Bangladesh, Bosnia, Kosova, Pakistan, Palestine) Total Beneficiaries: 37,691

(Afghanistan, Albania, Bangladesh, Bosnia, Chechnya, China, Egypt, India, Indonesia, Iraq, Jordan, Kashmir, Kosova, Lebanon, Macedonia, Mali, Pakistan, Palestine, Somalia, Sudan, Yemen) Total Beneficiaries: 529,866

Health & Nutrition Projects (Afghanistan, Bangladesh, Chechnya, Egypt, Kosova, Pakistan) Total Beneficiaries: 234,782

Udhiyah/Qurbani Projects (Afghanistan, Albania, Bangladesh, Bosnia, Chechnya, Egypt, India, Indonesia, Iraq, Kashmir, Kosova, Mali, Pakistan, Somalia, Sudan, Yemen) Total Beneficiaries: 1,059,023

Yo u n g C h e c h e n girl in Islamic Relief supported refugee camp

Yo u n g b o y in Iraq

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Islamic Relief USA 2002 Annual Report

country focus

palestine

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slamic Relief Worldwide opened a permanent office in Palestine in 1998 in response to deteriorating humanitarian conditions. Since September 2000, Palestinians have endured daily incidents of violence resulting in hunger, devastation, and death. This crisis has left tens of thousands of Palestinians in the West Bank and Gaza either seriously wounded or dead. Federally mandated closures have disabled organizations from delivering

education Deir Al Balah Educational Enhancement Center

emergency Food Distribution Distribution of food packets in the Gaza Strip and West Bank

Expanding the capacity of a local educational institute to take on additional students

water and sanitation Maintenance of Aya Water Well Upgrade of the water system and Aya Water Well in the Khan Younis refugee camp

microcredit Gaza Small Business Loan Program Islamic Relief food distribution p a c k e t s i n Pa l e s t i n e

aid, further isolating destitute Palestinians. Poverty and unemployment have increased dramatically, leaving record numbers of Palestinians suffering from lack of food and being deprived of basic education. Islamic Relief Worldwide implements a wide array of projects in Palestine to help alleviate their suffering. Total Islamic Relief Worldwide Beneficiaries in Palestine: 376,698

Jabalia & Maghazi Education Enhancement Center Helping enhance the educational level of students in the Jabalia Refugee Camp

Assistance to small, struggling businesses in Gaza

Expansion of Al Azhar Institute

health Medical and Nutritional Assistance for Malnourished Children

Building of an additional teaching floor to educational institute in Khan Younis

Providing malnourished children with supplementary and therapeutic food and medical care

School Bags for Needy Children Providing fully-equipped school bags to 20,000 needy children

Rafah Educational Enhancement Center Establishment of recreational and educational enhancement center in the Rafah Refugee Camp

Total Islamic Relief USA allocation to projects in Palestine: $2,500,709

Educational Enhancement Center in Deir Al Balah

I s l a m i c R e l i e f b e n e f i c i a r y i n Pa l e s t i n e

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Islamic Relief USA 2002 Annual Report

country focus

afghanistan

Refugee children in Afghanistan

Total Islamic Relief Worldwide Beneficiaries in Afghanistan: 106,390 wo wars, earthquakes and a severe drought and famine prompted the United Nations to declare Afghanistan “the world’s greatest humanitarian disaster.” Islamic Relief Worldwide, which had been aiding the Afghans for many years, immediately responded to the drought in 2001 with an emergency relief program.

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education Reconstruction of Teachers Training High School

Later in 2001, the Afghans faced yet another crisis: the aftermath of September 11th. Islamic Relief Worldwide’s staff in Afghanistan were sorely tested by the bombing campaign, yet when offered the opportunity to leave, they unanimously voted to stay. They could not leave knowing that other aid agencies would leave, and the needs of the Afghans would become even greater. Their dedication earned them great respect and praise from the global relief community and promises a successful tenure of humanitarian efforts in Afghanistan.

Rehabilitation of Primary Education

Repairing and reconstructing high school, benefiting thousands of teachers and students in southwestern Afghanistan

Rehabilitating of the primary education infrastructure of Kandahar City and suburb areas

development Kandahar Women’s Bakery Project Setting up independent womens’ bakeries, allowing widowed families to gain access to a sustainable form of income

Islamic Relief Worldwide now has a permanent presence in Afghanistan, operating a variety of relief and development projects to help the Afghans rebuild their shattered lives and give them hope of a brighter future.

Assisting Vulnerable Children in Kabul Improving the economic background of Afghan street working children in Kabul and helping prevent them from doing futile and dangerous work

emergency Earthquake Relief

Total Islamic Relief USA allocation to projects in Afghanistan:

Assisting earthquake victims with emergency relief and shelter

$935,794

Beneficiaries of I s l a m i c R e l i e f ’s f o o d distribution program in Afghanistan

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Islamic Relief USA 2002 Annual Report

country focus

chechnya & ingushetia

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slamic Relief has been operating in the Northern Caucasus in the Russian Federation since 1995, delivering humanitarian aid to victims of the military conflict in Chechnya. In October 1999, hostilities erupted anew in Chechnya, and thousands of Chechens were forced to flee across the border of the neighboring republic of Ingushetia. Islamic Relief Worldwide was one of the first aid agencies to respond to the needs of the displaced Chechens. Consequently, many Chechens were exposed to extremely difficult living conditions. Still unable to return home, they now live in spontaneous settlements, specially designated camps, or with Ingush host families. Many lack basic food supplies, medication, potable water and proper sanitation. There are, however, a number of Chechens who have decided to remain in Chechnya despite the situation, hoping that the crisis will soon end. Their living conditions are just as desperate as those of their compatriots who have been displaced across the region. Islamic Relief Worldwide operates projects, within Chechnya and in the Chechen refugee camps in neighboring Ingushetia. The Chechen Relief Program is one of Islamic Relief’s largest projects to date. In addition to maintaining refugee camps in Ingushetia (which includes provision of clean water, food, etc.), Islamic Relief Worldwide operates three 24-hour medical clinics. Each clinic has 5 consulting rooms, 1 procedural room, a boiler-house and 2 attached ambulances. The clinics are also equipped with medical supplies, and a full-time staff.

Chechen boy receiving food pack in Sputnik Refugee Camp in Ingushetia emergency Chechen Relief Program Comprehensive program, providing clean water, healthcare, shelter, and more to displaced Chechens

IR/WFP Food Distribution in Chechnya and Ingushetia Total Islamic Relief Worldwide Beneficiaries in Chechnya: 101,494

Joint program with the United Nations’ World Food Program, providing regular food distribution inside Chechnya and in the neighboring refugee camps

Total Islamic Relief USA allocation to projects in Chechnya: Islamic Relief convoy on its way to Ingushetia, as part of the Chechen Relief Program

$646,714

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Islamic Relief USA 2002 Annual Report

country focus

pakistan

(kashmir projects)

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he ongoing conflict in Kashmir has affected over 12 million people on both sides of the Jammu & Kashmir divide. Neelum Valley is one of the worst affected areas along the border, where an estimated 75,000 people have fled their homes. The majority of the displaced families have loaded their few possessions onto carts and fled the fighting by moving in with friends or relatives. Around 25% of the displaced families who could afford the cost have moved to Muzaffarabad, Azad Jammu & Kashmir or Rawalpindi, Pakistan. Many Kashmiris have been refugees in their own land since 1989. Islamic Relief has been working in Neelum Valley since 1998, helping those affected by the ongoing conflict. In addition to delivering medicine and equipment to emergency medical centers, Islamic Relief has provided displaced people with shelter and primary medical care. Islamic Relief Worldwide is the only International NGO based in Azad Jammu & Kashmir. Our local office in Muzaffarabad, AJK coordinates relief programs in Tehsil Athmuqam and Neelum Valley.

water and sanitation Kashmir Community Water and Sanitation Program Helps create sustainable improvement in health and well being and improves access to clean drinking water to the people of Neelum Valley

emergency Neelum Valley Emergency Preparedness Plan Develops the capacity of the people of Neelum Valley to cope with their situation, and minimize casualties due to firing along the Line of Control

development Neelum Valley Sustainable Livelihood Program Aims to provide training to Neelum Valley communities, enabling them to adopt sustainable income-generating activities

Total Islamic Relief Worldwide Beneficiaries in Kashmir: 19,985 Total Islamic Relief USA allocation to projects in Kashmir: $91,054

Islamic Relief beneficiar y in A z a d Ja m m u and Kashmir

Islamic Relief water project in N e e l a m Va l l e y

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Islamic Relief USA 2002 Annual Report

africa

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Total Islamic Relief Worldwide Beneficiaries in Africa: 83,207

mminent famine and mass starvation are threatening millions of people across Africa. According to the World Food Program, 39 million people in 19 countries are currently facing serious food shortages. In addition to its permanent locations in Sudan and Mali, Islamic Relief Worldwide has fostered relationships with local partners in Somalia, Kenya, and Malawi. In October 2002, Islamic Relief initiated an agricultural recovery project, which is helping over 3,000 farmers by providing seeds and fertilizers and constructing irrigation wells in as many as 10 villages. In Kenya, the construction of a 15,000 cubic meter reservoir was completed in September 2002. This project will provide water to help 5,000 people and their livestock for up to 9 months following annual rains in the remote village of Olla in Mandera.

Yo u n g b o y i n M a l a w i , w h e r e I s l a m i c Relief implemented a much-needed food distribution program

Yo u n g g i r l i n S u d a n , w h e r e I s l a m i c R e l i e f Wo r l d w i d e h a s w o r k e d s i n c e 1984

egypt

sudan

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in Egypt: $61,878

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n t o projects in Sudan: $53,519

health Early Intervention Center for Disabled Children

water and sanitation North Kordofan Water Project

mali

malawi

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in Mali: $63,238

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in Malawi: $37,682

water and sanitation North and South Water Project

emergency Food Crisis

Group of children in Mali

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Islamic Relief USA 2002 Annual Report

asia

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slamic Relief immediately responded to the devastating floods that struck China last year. Parts of Shaanxi, north China, were flooded with 19.5 inches of rain, triggering mudslides and landslides that covered roads and railways. More than 300 towns and villages were affected in the province and 83,000 homes were damaged. Islamic Relief Worldwide reconstructed homes in China, helping hundreds of people rebuild their lives.

Total Islamic Relief Worldwide Beneficiaries in Bangladesh, China, and Pakistan: 172,235

bangladesh To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in Bangladesh: $53,339 emergency Emergency Preparedness health Mother and Child Health Projects education Vocational Training and Employment Support Services

Islamic Relief Worldwide’s projects in Asia are vast, covering a wide array of projects including emergency, water and sanitation, health, and education. Mother and child health project in Bangladesh

china

pakistan

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in China: $28,041

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n t o p r o j e c t s i n Pa k i s t a n : $82,986

emergency Reconstruction of Homes

water and sanitation Baluchistan Water and Sanitation emergency Baluchistan Drought Relief education Grant to Islamic University in Islamabad

Wa t e r p r o j e c t i n B a n g l a d e s h

O r p h a n e d b o y i n Pa k i s t a n

Islamic Relief representative in China page 9

Islamic Relief USA 2002 Annual Report

eastern europe

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astern Europe has been the site of some of the worst genocide, violence, and displacement in recent years. In 1996, Bosnia emerged from three years of bloody ethnic war. Widespread atrocities were committed during the war and an estimated 250,000 people were killed. Over one million people were internally displaced and almost 1.5 million people fled the country. War also erupted in Kosova in 1999, sending almost 1 million people fleeing across the borders. Islamic Relief was instrumental in aiding Bosnian and Kosovar refugees with immediate relief, as well as long-term development projects to help them rebuild their lives and give them hope for a brighter future.

Islamic Relief sponsored or phan in Albania

Islamic Relief beneficiar y in Kosova

Total Islamic Relief Worldwide Beneficiaries in Albania, Bosnia, Kosova, and Turkey: 22,766

albania

bosnia

kosova

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in Albania: $46,645

development Minority Return and Reintegration

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n t o p r o j e c t s i n Ko s o va : $57,517

emergency Emergency Flood Relief education Hajji Shamia School development Community Training Center, Pogradec Commmunity Training Center, Shkodre water and sanitation Albania Water and Sanitation

To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n to projects in Bosnia: $26,749

development Widow and Orphan Welfare microcredit Kosova Microcredit Project

turkey To t a l Is l a m i c Re l i e f U S A c o n t r i b u t i o n t o p r o j e c t s i n Tu r k e y : $27,603 education Tabosan Yazlik School (Education and Vocational Training)

Islamic Relief beneficiar y in Kosova

Group of Bosnian children

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Islamic Relief USA 2002 Annual Report

ramadan projects Total Islamic Relief Worldwide Ramadan Projects Beneficiaries: 529,866

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amadan is the ninth month in the Islamic lunar calendar. It is the month in which Muslims all over the world fast from dawn until dusk for the entire month. For many Muslim families, it is difficult to provide suhur (meal before sunrise to begin the fast), and iftar (meal to break the fast at dusk), as many of them live in poverty and despair. Through our various Ramadan projects, Islamic Relief enables thousands of families to celebrate this joyous time of the year. In addition to its Ramadan food

Islamic Relief beneficiar y in Indonesia ( R a m a d a n Fo o d D i s t r i b u t i o n )

ramadan Countries with Islamic Relief Worldwide Ramadan projects Afghanistan, Albania, Bangladesh, Bosnia, Chechnya, China, Egypt, India, Indonesia, Iraq, Jordan, Kashmir, Kosova, Lebanon, Macedonia, Mali, Pakistan, Palestine, Somalia, Sudan, Yemen.

Islamic Relief Ramadan Fo o d Distribution in Sudan

To t a l Is l a m i c Re l i e f U S A contribution to projects: $126,832 C o n t e n t s o f I s l a m i c R e l i e f Wo r l d w i d e R a m a d a n f o o d p a c k i n L e b a n o n

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distribution program, Islamic Relief Worldwide also implemented other projects during the month, including distribution of zakah (charity), zakat al-fitr (alms collected in Ramadan), sadaqah jariyah (continuous charity), Eid gifts (to celebrate the end of Ramadan), and more. In 2002, Islamic Relief Worldwide distributed aid in Ramadan to beneficiaries in 21 countries worldwide.

Islamic Relief USA 2002 Annual Report

udhiyah / qurbani

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dhiyah / Qurbani is a religious practice performed at the time of Eid al-Adha involving the sacrifice of an animal. This holiday commemorates the willingness of Prophet Ibrahim (may God's peace and blessings rest upon him) to sacrifice his son in willful obedience of God's command. Eid al-Adha is a day of celebration and remembrance of God. Not all of us, however, are in a position to enjoy this day, so it is the duty of the more fortunate amongst us to help those less fortunate. Islamic Relief uses the meat of the animals sacrificed to feed hungry people across the world (many of whom only eat meat during this time of the year). Islamic Relief Worldwide offered Udhiyah/Qurbani in 17 countries worldwide in 2002, allowing people to both fulfill their religious obligation, and at the same time, help feed needy. udhiyah / qurbani Countries with Islamic Relief Worldwide Qurbani/Udhiyah projects: Afghanistan, Albania, Bangladesh, Bosnia, Chechnya, Egypt, India, Indonesia, Iraq, Kashmir, Kosova, Mali, Pakistan, Palestine, Somalia, Sudan, Yemen.

Distribution of Udhiyah/Qurbani meat to a Chechen r efugee (Alina Camp, Ingushetia)

To t a l Is l a m i c Re l i e f U S A contribution to projects: $262,450

Total Islamic Relief Worldwide Udhiyah / Qurbani* Projects Beneficiaries: 1,059,023

NOTE: Qurbani meat for Afghanistan, Bosnia, Kosova, and

*these figures include Aqiqah distributions as well

Palestine are distributed from meat canned in New Zealand.

(“Aqiqah� is an Islamic tradition celebrating the birth of a newborn baby. Similar to Udhiyah/Qurbani, an animal is sacrificed, and Islamic Relief distributes the meat of the sacrificed animal to the needy.)

Islamic Relief Qurbani / Udhiyah distribution in Albania in 2002

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Islamic Relief USA 2002 Annual Report

orphan projects Islamic Relief sponsored or phan in Mali

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he orphans in Islamic Relief's care live in more than ten countries. We continuously encourage the sponsorship of orphans, the reward for which, according to Prophet Muhammad, will be his own companionship in Paradise (may God's peace and mercy be with him). Aside from individual sponsorships, Islamic Relief has also implemented a General Orphan Fund to assist orphans throughout the world. The Orphan General Fund provides different projects for orphans, even in countries without a one-to-one sponsorship program. The fund has been used to support projects such as the widows’ micro-credit program, building orphanages, and building homes for orphans and their families. Islamic Relief’s orphan support projects aim to provide basic necessities to orphans, improve their health and nutrition, implement projects within the community, and support orphans educationally, socially, and morally.

one-to-one orphan sponsorship albania To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $10,871

kenya To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $5,124

bangladesh To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $19,796

mali To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $19,812

bosnia To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $15,634

pakistan To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $34,663

india To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $8,990

palestine To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $93,968

jordan To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $556

sudan To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n : $10,347

one-to-one sponsorship To t a l Is l a m i c Re l i e f U S A contribution to projects: $219,761

orphan general fund To t a l Is l a m i c Re l i e f U S A contribution to projects: $393,665

Total Islamic Relief Worldwide Orphan Projects Beneficiaries: 10,047

Islamic Relief Eid Gift Distribution in Albania

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Islamic Relief USA 2002 Annual Report

domestic projects

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here are many Americans living in poor, underserved communities who are often neglected. Islamic Relief USA helps address some of these concerns by sponsoring a variety of different programs to help needy people here at home. One of the projects that Islamic Relief supports domestically is the UMMA Free Clinic. Located in the heart of South Central Los Angeles, the clinic serves an impoverished and culturally rich patient population: 51% and 43% of whom are Latino and African-American, respectively. The clinic serves the working poor (who are either uninsured or do not qualify for Medi-Cal), the unemployed, and the homeless. It is one of the poorest and most medically underserved areas of Southern California. The ILM Foundation’s “Eat Right to Think Right Free Food

Distribution Program” is another project sponsored by Islamic Relief. The ILM Foundation, a Los Angelesbased grassroots organization, operates many programs for the underserved communities in Los Angeles, including the food distribution program. Islamic Relief is proud to sponsor the program, which feeds 650 people each month (450 homeless and 150 in the Jefferson Park Community Feeding). In addition, 2,500 needy people are fed during the month of Ramadan. Approximately 10,000 people are fed through the program annually. Islamic Relief also sponsors many other community projects, including toy drives for needy children, health fairs, and grants to local organizations.

education To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n $140,265 community development To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n $407,122 health To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n $17,606 z a k a t , r e l i e f, a n d h o m e l e s s f e e d i n g To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n $72,408 emergency projects To t a l Is l a m i c Re l i e f U S A a l l o c a t i o n $217,403 Total Islamic Relief USA allocation to domestic projects: $854,804

Yo u n g p a t i e n t s i n t h e l o b b y o f t h e U M M A Fr e e C l i n i c

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Islamic Relief USA 2002 Annual Report

waqf projects

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slamic Relief operates several waqf (“endowment” or “charitable trust”) projects across the globe. In the program, a gift can be invested to generate continuous benefit for both the beneficiaries, and the donor. Waqf is considered a noble act in Islam; one of the reasons for this is because the donated gift helps people even after the donor passes on. In reviving the Islamic tradition of of waqf, Islamic Relief has benefited people in the ares of education, healthcare, water and sanitation, and income generation. With the vast majority of donations allocated for the General Waqf fund, Islamic Relief is able to invest the money into areas where the need is greatest. One of Islamic Relief Worldwide’s projects funded by waqf in 2002 was the Income and Employment Generation Loan in Bosnia and Herzegovina. These loans have provided a unique opportunity for talented individuals to earn their own income.

One beneficiary of these loans is Mustafa Tucic, who returned to his village, Kula Grad, after the war in Bosnia. Mustafa was a skilled carpenter who operated his own carpentry shop. When he returned to Kula Grad after the war, he found that many homes had been destroyed. Mustafa’s skills became vital to the community because of the great need for the reconstruction of houses. With the help of a loan from Islamic Relief’s Waqf Future Fund, Mustafa was able to re-open his carpentry shop. The loan covered his basic expenses as well as the cost of new equipment and materials. Mustafa’s carpentry shop is now a thriving business and he has even employed four new workers. The help he received from Islamic Relief helped him turn his life around and support not only himself, but his fellow villagers.

waqf To t a l Is l a m i c Re l i e f U S A contribution to project: $73,941 Home rebuilding project in Bosnia

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Islamic Relief USA 2002 Annual Report

management report Since the inception of Islamic Relief USA in 1993, revenues have been growing at a steady rate through calendar year 2002. This growth was due to the continued generosity and sincere concern of our donors for humanitarian needs in the U.S. and abroad.

The management and staff of Islamic Relief continue to support humanitarian needs in the US and around the globe while maintaining a low overhead cost for fund-raising, management and general expenses. We strive to maximize the benefit to our beneficiaries by ensuring efficiency and cost effectiveness of our operation.

The last five years' revenues were as follows:

1998 1999 2000 2001 2002

During calendar 2002, Islamic Relief programs received 92.4% of total funds spent. Fundraising cost was 3.4% and Management and General cost was only 4.3%.

$1,661,916 $3,939,542 $5,032,368 $5,708,019 $7,133,713

Islamic Relief management and staff strongly believe in cooperating with other reputable Non-Profit Organizations in supporting local projects in the US and abroad.

71.9% of the 2002 revenues were received from individual donors and 27.7% from foundations and corporations. No revenues were received from any of the U.S. government agencies during the last nine years.

sources of funds

Individual Donors Foundations & Corporations Other Revenue Total

$5,126,493 1,978,292 28,928 $7,133,713

71.9% 27.7% 0.4% 100.0%

Current Year Programs Fundraising Management & General Total

$6,644,920 241,894 308,128 $7,194,942

92.4% 3.4% 4.3% 100.0%

$2,942,969 1,319,447 273,126 142,268 338,963 695,872 270,813 661,462 $6,644,920

44.3% 19.9% 4.1% 2.1% 5.1% 10.5% 4.1% 10.0% 100.0%

uses of funds

current year programs Emergency & Relief Projects Education & Training Water & Sanitation Income Generation Health & Nutrition Orphan Support Udhiyah/Qurbani Development Total

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Islamic Relief USA 2002 Annual Report

audit letter 222 E. Huntington Drive, Suite 215 Monrovia, CA 91016 Phone: 626-303-0332 Fax: 626-303-05222

REPORT OF INDEPENDENT AUDITORS

Board of Directors Islamic Relief We have audited the accompanying statement of financial position of Islamic Relief (a nonprofit organization), as of December 31, 2002, and the related statements of activities, cash flows, and functional expenses for the year then ended. These financial statements are the responsibility of the organization’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Islamic Relief as of December 31, 2002, and the changes in its net assets and its cash flows for the year then ended in conformity with auditing standards generally accepted in the United States of America.

Monrovia, California July 18, 2003

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Islamic Relief USA 2002 Annual Report

financial statements ISLAMIC RELIEF STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2002 Assets Current Assets: Cash and cash equivalents Accounts receivable Prepaid expenses Other receivables Investment Other assets Fixed assets (net of accumulated depreciation of $99,551) Total Assets

$

2,210,449 10,793 8,281 87,846 60,474 7,259 66,302

$

2,451,403

$

76,732 124 46,662 123,518

Liabilities and Net Assets Liabilities Accrued expenses Accrued salaries and benefits Other liabilities Total Liabilities Net Assets Unrestricted Temporarily restricted Total net assets Total Liabilities and Net Assets

page 18

$

1,706,444 621,441 2,327,885 2,451,403

Islamic Relief USA 2002 Annual Report

financial statements ISLAMIC RELIEF STATEMENT OF ACTIVITIES FISCAL YEAR ENDED DECEMBER 31, 2002

Support and Revenue: Restricted: Emergency funds Development Education Orphan Total restricted revenues

$

Unrestricted: General fund

4,643,482 108,769 381,208 655,529 5,788,988 1,315,797

Other revenues: Interest and dividends In-kind donations Total other revenues

7,328 21,600 28,928

Total Support and Revenue

7,133,713

Expenses: Program Management and general Fundraising

6,644,920 308,128 241,894

Total Expenses

7,194,942

Other gains and losses: Unrealized loss on investments Total other gains and losses

(49,197) (49,197)

Change in net assets

(110,426)

Net assets, beginning of year

2,438,311

Net assets, end of year

$

page 19

2,327,885

Islamic Relief USA 2002 Annual Report

financial statements ISLAMIC RELIEF STATEMENT OF CASH FLOWS FISCAL YEAR ENDED DECEMBER 31, 2002

Cash flows from operating activities Change in net assets

$ (110,426)

Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Depreciation Loss on disposal of fixed assets

24,295

(Increase) decrease in assets: Accounts receivable Other receivables Prepaid expenses Other assets

26,232 (20,280) 372 (300)

Increase (decrease) in liabilities: Accrued expenses Accrued salaries and benefits Other liabilities Net cash provided by operating activities

44,053 (3,185) 46,662 7,424

Cash flows from investing activities Disposition of fixed assets Decrease in investments Net cash used for investing activities

(9,726) 77,477 67,751

Net increase in cash

75,175

Cash, beginning of year

2,135,274

Cash, end of year

$ 2,210,449

Financial notes that help interpret these statements are not included in this report, but are available by contacting Islamic Relief's office. page 20

Islamic Relief 1919 W Magnolia Blvd Burbank, CA 91506 (888) 479-4968 www.irw.org Tax ID#: 95-4453134


IslamicReliefUSA_Annual_Report_2002