Pedersen founded the
Independent Scandinavian Relief Agency (ISRA) in 1988 and served as its Secretary General. ISRA had its accounts frozen by the Danish authorities in late 2004 when the American Ministry of Finance erroneously linked it to the organisation
Islamic African Relief Agency and allegations of supporting
terrorism. After having examined the case, in 2005 the Danish police acquitted the ISRA of all suspicions of having supported terrorism. However, during the nine months of investigation, the economic means of the organisation were frozen, eliminating the impact of its projects. Afterwards, in 2005 Pedersen was a co-founder of
Danish Muslim Aid and for a number of years Secretary General of same organization. DM-Aid has, among other things, rebuilt more than 500 homes for earthquake stricken people in the
Kashmir area of
Pakistan during the winter 2005 - 2006. The organization supports more than 700 orphans in more than 10 countries, finances hundreds of micro-finance projects for poor families in Africa, Middle East and South East Asia. Danish Muslim Aid is the largest charity organization in Denmark founded by Muslims. He is one of the European representatives of the
Global Network of Religions for Children and is a board member of the
Swedish Islamic Academy. ==Controversies==