Mustard Seed Christian Ministries Annual Report and Accounts for year ended 31[st] March 2025
| Contents | Page |
|---|---|
| Introduction | 2 |
| The Key Facts | 3 |
| Summary Legal and Administrative Details | 4 |
| Trustees' Report | 5 |
| Report of the Independent Examiner | 13 |
| Receipts and Payments Account | 14 |
| Statement of Assets and Liabilities | 15 |
| Notes and Accounting Policies | 16 |
1
Introduction
We started 2024/25 in a stronger place than the same time a year previously. Staffing levels were stable and changes made the previous year had been embedded. We had small successes such as hosting a cabaret act by a local Christian singer to mark Sidmouth’s International Jazz and Blues festival and we continue to receive gratitude from our many lovely and loyal customers, as well as Gateway, the local homelessness charity, with whom we are proud to partner.
We made some progress towards improving our charity structure by applying to establish a new Charitable Incorporate Organisation to replace the existing Trust. It is hoped that this should make the role of trustee more appealing for new recruits with their individual liability limited, and also ensure that we can be more agile in the way we deal with the ownership of our premises.
Sadly, soon after the start of 2024/25, our key volunteer responsible for the majority of our accounting activities, passed away fairly suddenly. His contribution to the financial management of the charity was invaluable and with his passing, this workload had to be rapidly redistributed among existing trustees, staff and, thankfully, some wonderful new volunteers who stepped forward to assist. This process took several months to operate efficiently and was fairly time-consuming.
We managed to recruit one new trustee. However, the search for more, specifically a replacement Chair and Treasurer, was unfruitful, despite various appeals. Volunteer staffing levels in the café were also challenging. We were unable to recruit enough volunteers to fulfil existing vacancies, let alone new ones creating by volunteers retiring. This created pressure upon the existing team, which, combined with several incidences of staff illness, has impacted our consistency of service. Despite generous donations from many of our supporters and the establishment of small but solid second-hand Christian book sales, we are increasingly reliant upon our café for the majority of our income.
The financial burdens, particularly of VAT, Business Rates (due to more than double in 2025/26), and general inflation have meant that balancing the books remained a knife edge act. We started the year hoping to achieve closer to break even than in previous year, but only because of the considerable effort, time and goodwill from existing trustees and unpaid volunteers. This operational workload was one of the reasons the trustee board has struggled to attract more to its number, as well as being the primary reason for our current Chair and Treasurer seeking to retire. Our relatively small size meant we were sadly unable to pay anyone professional to perform some of these functions to relieve trustees of them.
Given these mounting pressures, trustees made the difficult decision to cease trading at the end of March 2025, making all our staff redundant. A general community announcement was made in November 2024, with a public meeting held which was attended by around 50 community members. Trustees are open to alternative uses of the premises, with those most aligned with our charitable objects given priority. Our reserves mean we can remain closed for trading but with possible alternative outreach using the premises for several months while we discern the best way forward.
We feel privileged to have seen God use the Mustard Seed for so many years to bless our local community and beyond. We don’t necessarily believe the decision to cease trading means the work of the charity is done. As Jesus cautioned about trying to pour new wine into old wine skins, we are hopeand prayerful that this decision will open a new way for us to respond to what God may want to do next.
Ruth Ray
Chair, Mustard Seed Christian Ministries
April 2025
2
The Key Facts
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The departure of our accountant meant the reallocation of many of the banking and accounting processes. To avoid the risk of relying too much upon just one individual in the future, at least two individuals were subsequently trained to conduct any one of the accounting processes we rely on.
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We were delighted that through the hard work of our whole team of staff, volunteers and trustees, generosity of our donors and demand from our customers, we started the year with stronger financial projections than in previous years. Were it not for the shop’s closure and its associated impact on trading, redundancy costs and stock write down, we may have been close to ending the year cost-neutral. However, our financial performance was highly sensitive to significant one-off costs. Rising wages and business rates were likely to have created further pressures in 2025/26 which would have continued to eat away at our financial reserves.
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Staffing remained stable for the year with the staff team working well together and with our volunteers. The decision to cease trading was not undertaken lightly by trustees and came after several years of trying to maintain operations at some personal cost to individuals involved. Closure of the shop was announced to staff at the end of October with donors, volunteers, churches and customers all being informed within a short time period after then. A general meeting to discuss the decision was held in November and while it was well attended, sadly no individuals came forward who would be suitable for taking on some of the key trustee roles needed or with an alternative viable offering which would have prevented closure. We were, therefore, grateful to have been able to provide our staff with plenty of notice of redundancy to help optimise their ability to find alternative work.
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Our stock of second-hand Christian books continued to meet a small but steady demand. Our stock of new books has been steadily reducing with each sale made with the decision having been taken during the previous financial year to limit any further purchases of new books apart from those we can order in on sale or return for select events such as Keswick in Devon, the Christian conference held in March in the town. We directed anyone looking to purchase new Christian books to bookshop.org from which has provided us with an annual commission payment. As we approached the time of the shop’s closure, we were able to donate several second-hand Christian books and bibles to a church trip going out to equip Christians in Uganda.
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We began the groundwork to shift the Charity’s structure to a Charitable Incorporated Organisation. The CIO itself neared official registration towards the end of 2024/25 with future work now required to transition across the assets of the trust. We hope this should help future-proof the charity, offering it greater agility and attractiveness to potential trustees.
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We continue to be grateful for our partnership with Gateway, enabling our premises to be used to support homeless clients or those facing homelessness with advice, advocacy and practical assistance. In the short term, while future plans for the premises are still being explored, it is proposed that Gateway continue in their use of the premises to meet with their clients.
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Summary Legal and Administrative Details
1 Status
Mustard Seed Christian Ministries was constituted by Trust Deed on 2 March 1995, and that Deed was subsequently amended by an Agreement dated 15[th] May 2014. Mustard Seed Christian Ministries is regarded as a charity and is registered with the Charity Commissioners under reference number 1048903. Mustard Seed Christian Ministries operates from its premises under the name of ‘The Mustard Seed Café and Christian Bookshop’.
2 Trustees
Members of the Board of Trustees serving during the year were as follows: Mrs Ruth Ray Chair Mr Kieth Sparks Treasurer Mrs Joanna Davis Secretary (retired) Mr Gareth Stephens Mrs Jayne Norton Mrs Hannah Boyd Secretary (newly appointed as existing trustee) Rev Victoria Chester (newly appointed) A note of appointments and resignations can be found on page 10.
3 Registered Office
1 All Saints Road, Sidmouth, Devon, EX10 8ER
4 Professional Advisors
Bankers: Independent Examiner: Solicitors acting for CIO: HSBC Stephen Maycock BA FCA Anthony Collins LLP 250-251 High St 16 Windsor Mead 134 Edmund St Exeter Sidford Birmingham Devon Sidmouth B3 2ES EX4 3PZ EX10 9SJ
5. Statement of Trustees' Responsibilities
Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity for that period. In preparing those financial statements, the Trustees are required to:
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a) select suitable accounting policies and then apply them consistently;
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b) make judgements that are reasonable and prudent;
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c) state whether the policies adopted are in accordance with the appropriate Charity Commission guidelines for Receipts and Payments Accounts, subject to any material departures disclosed and explained in the financial statements; and
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d) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its operations.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Trustees’ Annual Report
Period: 1st April 2024 to 31[st] March 2025 Charity name: Mustard Seed Christian Ministries Charity registration number: 1048903
Objectives and Activities:
The Purposes of the Charity To advance the Christian religion by • Selling Christian books and gifts • Running a community café Our Main Activities We ran a Christian bookshop serving the residents of East Devon and visitors to it, selling books, cards and gifts. We promote and sell Christian books to churches, schools and other organisations. Our café aimed to provide locals and visitors alike with a hospitable welcome, a listening ear and relevant support and signposting as desired as an outworking of our Christian ethos and values. Public Benefit We have consulted the Commission’s guidance on public benefit and believe that we satisfy it by virtue of the fact that our bookshop and café are open to the public and that we market our services across East Devon. We seek to be inclusive of all regardless of ethnicity, age, gender, faith, sexual orientation, social background or situation, or ability, both in relation to our recruitment of staff and volunteers and in relation to our clientele. While our shop has since closed for trading and some of the charities activities have reduced, we will continue to be active in delivering upon our charitable objects and hope to identify additional and alternative ways in which to continue this work over the coming year.
Additional information
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Community development, We ran a café which seeks to build and support community within Sidmouth supporting those in need and and beyond. preventing poverty • We offered a safe and secure place of rest and affordable refreshment for those who need it. We had regular customers who live alone who come for company and informal help with problems. We tried to have experienced listeners available.
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We supported five local residents with part-time employment, one of whom is a Ukrainian refugee.
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We supported several volunteers with additional needs.
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We worked with other local organisations in supporting homeless and vulnerable people in the Sid Valley and beyond. We have an ongoing
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informal partnership with one local charity, Gateway, which uses our premises as a base several times a week to be available to meet with and support anyone who may need their services. Gateway paid by monthly invoice for any food or drink consumed by them or their clients but their use of the Mustard Seed is not dependent upon a minimum spend, with both charities operating symbiotically to support one another in our collective aim to support those in need.
- We provided our premises as a venue to support other organisations aligned with our values and one-off fundraising events run by likeminded individuals such as ‘The Big Brew’ coffee morning raising funds and awareness for fair trade in the developing world.
We see all the above as appropriate to our primary purpose of advancing the Christian religion; by living out our faith in the way we ran the cafe as well as by promoting the message through the bookshop. Volunteers Our five excellent staff were supported by a team of volunteers who served the ethos of the bookshop and café very well. Some, as noted above, have a range of additional needs and were cared for and developed both by staff and other volunteers, as well as by a loyal customer base which increasingly recognises the value of what we are doing. We offered a work placement each year to a hard-to-place student from the local secondary school, both for a full week and at other times when requested.
We have a staff handbook which contains a full complement of policies relating to their work. New volunteers are inducted by the Manager or one of her able assistants. Other Locals and visitors, of whom there are many because of our town’s reputation as a holiday destination, often comment on the ‘lovely atmosphere’ of the shop and, in the case of the visitors, express regret at the loss of similar provision in their own areas.
Achievements and Performance
Main Achievements Our primary achievement during the year 2024/25 was to keep the doors open! Mounting challenges such as financial pressures, staff illness, declining numbers of volunteers and difficulty recruiting new trustees presented challenges just to maintain our presence.
A further achievement was to take the sad but necessary decision to cease trading and to seek alternative ways in which to build upon the activity and legacy of the past 30 or so years of the charity’s life. We were grateful to have been able to provide plenty of notice and support to our staff to help enable them to find alternative employment within the valley.
Additional information
Achievements against objectives Expenses were reduced from £73,947 in 2023/2024 to £66,420 in 2024/25. set However, net income also reduced, in part as a result of winding up trading towards the end of the financial year. Our cash balances took a further hit from 2023/24 when they were £58,079 to stand at £54,242 at the end of
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| 2024/2025, although this marks a smaller reduction than the previous year | |
|---|---|
| (£3,837 reduction in 2024/2025 versus £9,093 in 2023/2024). | |
| Fundraising | During 2024/25 our total donations and legacies fell to £6,549 from £11,590 in |
| 2024/23. Our decision to cease trading was communicated to donors in | |
| October 2024 which may explain some – although not all – of this reduction. A | |
| lack of volunteers and/or trustees meant that efforts to increase our | |
| fundraising activities in 2024/25 stalled so we were largely reliant upon past | |
| efforts securing regular giving for our fundraising income. |
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Financial Review
| Receipts and Payments Accounting | The Trust operates on a Receipts and Payments basis but accounts with a full |
|---|---|
| balance sheet covering stocks, debtors and creditors along with fixed assets | |
| at valuation, but without accruals and prepayments and the application of | |
| depreciation. It does so on a consistent basis with recent years. | |
| Assets are renewed and replaced, when needed, in order to support the | |
| operation of the Cafe and Bookshop. These payments are shown on page 14 | |
| in General Expenses-renewals and maintenance. | |
| Financial Outcome for the Year | At 31 March 2025 we had net outgoing resources of £11,134 compared with |
| net outgoing resources of £10,065 for 2023/24. Cash balances fell £3,837 to | |
| £54,242 (2023/24 £58,079). | |
| Fixed Asset Values | The property is valued at £187,500 as per a professional valuation carried out |
| in March 2022. There were no additions to fixed assets during the year | |
| (2023/24 £nil). The value of other fixed assets was reviewed during the year | |
| resulting in a write down of £6,278. It is considered that their book value of | |
| £3,000 represents their value in the event of sale. | |
| Reserves Policy | The charity has a policy of reserving three months’ Operating Expenditure in |
| order to offset potential financial challenges arising. This designated reserve | |
| has been retained pending the outcome of the current business review. | |
| Reserve levels are reviewed by the Trustees regularly as and when a change | |
| in circumstances dictates. We remain committed to sustaining a reserves | |
| account as a matter of priority. | |
| Amount of Reserves held | Total funds at 31 March 2025 of £241,292 were down £17,748 on the |
| previous year (2023/24 £259,040). These funds were backed by fixed assets | |
| of £190,500 and net current assets of £50,792. | |
| Details of fund materially in deficit | There are no funds in deficit. |
| Uncertainties and Risks Going | Uncertainty remains on the future operation of the charity. |
| Forward | |
| We anticipate a legal bill of up to £3,000 next financial year towards the cost | |
| of transitioning our charitable structure to that of a CIO, which we will cover | |
| from reserves. This should then help us to recruit the number of trustees | |
| that we need as this remains an ongoing challenge. | |
| We are no longer subject to staffing risks but remain vulnerable to | |
| maintaining adequate numbers of trustees. |
Additional information
| Additional information | |
|---|---|
| Principal sources of funds | Our major source of income has been our café. Most additional income came |
| from the sale of books and gifts plus donations. We ran an appeal for people | |
| to partner with us by regular donation of small sums of money but this has | |
| been winding down in response to the closure of the café and bookshop. | |
| Investment policy and objectives | Surplus funds are held on bank deposit in order to be readily available when |
| needed. |
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Structure, Governance and Management
| Description of charity’s trusts | The Trust was constituted as an Unincorporated Association by Trust Deed on |
|---|---|
| 2ndMarch 1995 and is regarded as a Charity. The Deed was amended by an | |
| Agreement dated 15thMay 2014. | |
| Trustee Selection | New Trustees are appointed by invitation of the existing Trustees. Officers are |
| elected by the Trustees. The Trustees are all volunteers and do not receive | |
| any remuneration, payments or benefits. |
Additional information
| Additional information | |
|---|---|
| Induction and Training of Trustees | We refer new Trustees to the Charity Commission documentation for new |
| Trustees, and discuss with them the issues arising from these. We try where | |
| possible to incorporate reviews of topics covered by the documentation in | |
| Trustees’ meetings. | |
| Organisational structure | The Charity is overseen by a small group of Trustees from local churches. |
| During the year it was managed by five paid part-time staff. | |
| Related Parties | We have informal links with the churches of the Sid Valley, and work closely |
| with Gateway, the local organisation supporting the homeless. | |
| Other | www.mustard-seed.org.uk |
| ‘The Mustard Seed Sidmouth’ on facebook | |
| Email: mustard.seed@hotmail.co.uk |
Reference and Administrative details
| Charity name | Mustard Seed Christian Ministries |
|---|---|
| Other name the charity uses | The Mustard Seed Café and Christian Bookshop |
| Registered charity number | 1048903 |
| Charity’s principal address | 1 All Saints Road |
| Sidmouth | |
| Devon | |
| EX10 8ER |
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Names of the Trustees who manage the Charity
| Trustee name Office (if any) Dates acted if not for whole year Name of person (or body) entitled to appoint trustee (if any) |
Trustee name Office (if any) Dates acted if not for whole year Name of person (or body) entitled to appoint trustee (if any) |
|---|---|
| Hannah Boyd Secretary (new) Appointed May 2024 |
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| Joanna Davis Secretary (retired) Retired May 2024 |
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| Ruth Ray Chair |
|
| Jayne Norton | |
| Kieth Sparks Treasurer |
|
| Gareth Stephens | |
| Victoria Chester Appointed Sep 2024 |
|
Names of trustees for the time being holding title to property belonging to the charity
| Name | Dates acted if not for whole year |
|---|---|
| Joanna Davis | Retired May 2024 |
| Ruth Ray | |
| Kieth Sparks |
Funds held as custodian trustees on behalf of others There are no funds.
Additional information
Names and addresses of advisers
| Type of | Name | Address |
|---|---|---|
| adviser | ||
| Bank | HSBC | 251-251 High Street, EXETER Devon EX4 3PZ |
| Independent | Stephen Maycock | 16 Windsor Mead, Sidford, Sidmouth, EX109SJ |
| Examiner |
Name of senior staff member
| Name of senior staff member | |
|---|---|
| Name | Dates acted if not for whole year |
| Michelle Bree | (redundant from 31/3/2025) |
| Chris Halls | (redundant from 31/3/2025) |
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Declarations
The trustees declare that they have approved the trustees’ report above.
Signed on behalf of the charity’s trustees Signature(s) Full name(s) Ruth Ray Kieth Sparks Position Chairperson Treasurer ~~ee ee~~ Date 18/12/2025 18/12/2025 ~~EEee ee~~ 11
Report of the Independent Examiner
I report to the Trustees on my examination of the accounts of Mustard Seed Christian Ministries for the year ended 31 March 2024, which are set out on pages 14 to 17.
Responsibilities as Trustees of the Charity and Basis of Report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) 0f the Act.
Independent Examiner's Statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed:
Date: 16[th] November 2025
Name: Stephen Maycock BA FCA Address: 16 Windsor Mead, Sidford, Sidmouth, EX109SJ
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Receipts & Payments Account
| Year ended 31 March 2025 Notes Incoming Resources Donations Gift Aid repayments 4 Legacies Book shop sales & Commission Sales of cards and gifts Sales of refreshments Interest received |
2025 | 2025 | 2025 | 2024 |
|---|---|---|---|---|
| Unrestricted funds |
Restricted funds |
Total funds |
Total funds |
|
| £ 11,451 2,066 139 9,693 9,135 59,126 930 |
||||
| Total Incoming Resources Direct Charitable Expenditure Cost of sales 5 Expenses 6 |
84,723 84,723 29,437 29,437 66,420 66,420 |
92,540 28,658 73,947 |
||
| Total Resources Expended Net (Outgoing) /Incoming resources Adjust for non-cash movements: Reduction/(increase) in stock value Reduction/(increase) in debtors (Reduction)/increase in creditors |
95,857 95,857 (11,134) (11,134) 4,997 4,997 (36) (36) 2,336 2,336 |
102,605 (10,065) 4,638 427 (4,093) |
||
| Openingcash resources at 1 April | 58,079 58,079 |
67,172 | ||
| Closingcash resources at 31 March 3 |
54,242 54,242 |
58,079 |
| Notes | 2025 | 2024 | |||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | Total | ||
| Reconciliation of Funds | funds | funds | funds | funds | |
| Opening Funds at 1 April | 259,040 | 259,040 | 269,105 |
||
| Net outgoing resources | (11,134) | (11,134) | (10,065) |
||
| Transfers between funds | (6,278) | (6,278) | - |
||
| Closingfunds at 31 March | 241,628 | 241,628 | 259,040 |
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Statement of Assets and Liabilities
Year ended 31 March 2025
| Year ended 31 March 2025 | ||||||
|---|---|---|---|---|---|---|
| Notes | Notes 2025 2024 Unrestricted funds Restricted funds Total funds Total funds £ £ £ £ ~~Gg4~~ |
|||||
| Fixed assets | ||||||
| Freehold property (at valuation 2022) | 187,500 | 187,500 | 187,500 | |||
| Fixtures and fittings (WDV) | 3,000 | 3,000 | 9,133 | |||
| Computer equipment (WDV) | - | - | 145 | |||
| 190,500 | 190,500 | 196,778 | ||||
| Current assets | ||||||
| Stocks | 1,830 | 1,830 | 6,827 | |||
| Debtors | 36 | 36 | - | |||
| Bank and cash balances | 3 | 54,242 | 54,242 | 58,079 | ||
| 56,108 | 56,108 | 64,906 | ||||
| Less: Current liabilities | ||||||
| Creditors | 4,980 | 4,980 | 2,644 | |||
| Net current assets | 51,128 | 51,128 | 62,262 | |||
| Net assets | 241,628 | 241,628 | 259,040 | |||
| Designated Funds: | ||||||
| - Renovations & Equipment | 3,482 | 3,482 | 2,921 | |||
| - Three months’ Operating | ||||||
| Expenditure | 25,000 | 25,000 | 25,000 | |||
| General Purposes Fund | 213,146 | 213,146 | 231,119 | |||
| Total Funds | 241,628 | 241,628 | 259,040 |
Signed on behalf of the Trustees:
Chairperson Treasurer ~~FR~~ Spec Date: 18/12/2025
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Notes and Accounting Policies
Year ended 31 March 2025
1. Accounting policies
The financial statements have been prepared in accordance with the Charity Commission guidance for Receipts and Payments Accounts.
a) Income
All income is recognised on a received basis.
b) Fund accounting
The Charity's Unrestricted Funds consists of funds which the Charity may use for its charitable purposes. Designated Funds have been created for management purposes. These are unrestricted.
c) Expenditure
All expenses are accounted for on a receipts and payments basis with the exception of staff costs and VAT payable which are recorded as incurred.
2. Trustees' remuneration and expenses
No remuneration or expenses were paid by the Charity to any of the Trustees for their services during the year.
3. Bank and cash balances
| EPOS Till Account Current account Deposit account Building account Petty cash account |
2025 £ 2024 £ 814 1,569 2,207 5,311 47,439 47,678 3,482 2,921 300 600 |
|---|---|
| 54,242 58,079 |
4. Gift Aid
Gift Aid is claimed on gifts in accordance with HMRC guidance. No claim was submitted for gift aid due during the year.
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Notes and Accounting Policies (continued)
Year ended 31 March 2025
| 5. Cost of Sales Book shop purchases Catering purchases Credit/Debit card charges 6. General expenses Staff Costs Rates Utilities Premises - renewals & maintenance Equipment - renewals & maintenance Cleaning & hygiene costs Disposal of waste Telephone & internet charges IT & Till Costs Advertising Stationery General insurances Legal & Professional Fees Bank charges Sundry Purchase of new cooker |
2025 Unrestricted funds Restricted funds Total funds |
2025 Unrestricted funds Restricted funds Total funds |
2025 Unrestricted funds Restricted funds Total funds |
|---|---|---|---|
| Restricted funds |
Total funds |
`
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