The cash was raised during Friday prayers at South Woodford Islamic Centre.
“Charity is a core tenet of Islam,” Head Imam Dr Mohammed Fahim said.
“Offering support to families who are in need is part of our religion.”
His congregation has also raised £130,000 in the past year for global disasters and people in crisis.
A cheque was given to Haven House fundraising manager Reiko Murray who said the money would have “a profound impact” on the lives of the children.
The donation is going towards specialist nursing care and therapeutic activities for the children as well as bereavement support for their families.
Hospice services are free — but rely heavily on public donations.
