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2023-12-31-accounts

Charity registration number 1079796

Company registration number 03659214 (England and Wales)

KABBALAH CENTRE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

KABBALAH CENTRE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Lady Homa Alliance
Michael Berg
Yael Green
Rabbi Yarom Yardeni
Gladys Obadiah
Secretary Gladys Obadiah
Charity number 1079796
Company number 03659214
Registered office 12 Stratford Place
London
W1C 1BB
Auditor Glazers
843 Finchley Road
London
NW11 8NA

KABBALAH CENTRE

CONTENTS

Page
Trustees' report 1 - 10
Independent auditor's report 11 - 13
Consolidated statement of financial activities 14
Charity statement of financial activities 15
Consolidated balance sheet 16
Charity balance sheet 17
Consolidated statement of cash flows 18
Charity statement of cash flows 19
Notes to the financial statements 20 - 38

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Charity's objective is to make the ancient spiritual wisdom of Kabbalah more readily available to people of all backgrounds and in turn to build global consciousness around the primary Kabbalah principles of tolerance, sharing, proactive behaviour, and human dignity.

The Kabbalah Centre achieves the above by:

Strategies for achieving objectives

The key overall strategy for the Kabbalah Centre is to continually expand its reach into communities across Europe and Africa.

The key operational objective is to continually grow student registrations across the major cities in Europe and parts of Africa, through delivering high-quality spiritual education and instilling broader community practices that are relevant to the world in which we live today. The ultimate aim is to provide each Kabbalah student with both practical life skills and spiritual tools that will enable them to contribute to a better quality and standard of life for all humanity – the students, their families, and the wider community within which they live.

We continued to deliver a wide range of courses (both in person and online) and spiritual events in London and across Europe throughout the year.

Principal activities for achieving objectives

The key activities aligned with the strategic objectives in this financial year were:

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Main activities undertaken to further the Charity's purposes for public benefit

The Trustees ensure that the activities of the Charity are consistent with its charitable objects and aims. In setting and agreeing the annual plans the Trustees take the public benefit aims into account, as set out in the Charity Commission’s general guidance on public benefit. The Trustees continue to believe that there is a clear public benefit derived from the activities of the Kabbalah Centre.

The Charity continued to provide both in-person and online educational courses, one-on-one spiritual support, and mentorship by a team of trained and experienced teaching staff throughout 2023. The focus of the Kabbalah Centre’s charitable purpose is to reach more students from all backgrounds who have an interest or desire to learn more about spirituality; and how to understand and apply the ancient wisdom and Kabbalah practices and principles in their own lives.

The Kabbalah teaching staff has developed a range of spiritual courses for the public to access. The courses start from a foundation or beginner level (Kabbalah 1) and systematically move into the more spiritually advanced or deeper levels of spiritual understanding as the student progresses from Kabbalah 1 to Kabbalah 4. In addition to the courses outlined above the offer includes more advanced courses beyond Kabbalah 4. The classes, seminars, and events offered by the Kabbalah Centre are available throughout the year to existing community members and the general public without any restriction. The study program is structured in a way that continuously strengthens the student's spiritual growth and consciousness. It provides them with the day-to-day tools and skills to assist and support them in achieving their personal life goals and in turn make a positive contribution (through volunteering and service) to their immediate families and the wider society and community.

The demand for scholarships and subsidised course fees increased once again in 2023. The Centre granted 1,830 (2022:1,251) full scholarships during the year valued at £81,760 (2022: £55,890), funded by the Karen Berg Scholarship Fund. This fund was established to continue Karen Berg’s vision of making the wisdom and tools of Kabbalah accessible to all students without any financial barrier.

We continued to market and grow the Onehouse Community Membership across Europe and South Africa during the year. The Onehouse membership scheme is a key program for the Charity, as it provides students with the ability to instantly connect with a range of Kabbalistic tools and wisdom from anywhere in the world at any time. The student support department actively seeks to promote the membership program and support students in charting a personal plan of study tailored to their specific needs, interests, and personal schedules. The Teachers are available for one-on-one sessions with their students and able to connect with them from anywhere in the world to advise, listen to, and support them on their spiritual path.

The Centre distributed 40,532 (2022: 17,808) Zohars across the UK, Europe, and Africa in 2023, the bulk of these were distributed in the Ukraine and Poland as part of the charities activities planned in those countries.

The printing and distribution cost of the Zohar is funded by donations to the Zohar Project, this is an ongoing and continuous Kabbalah project. The Zohar Project provides the foundation and serves as an integral component of the Centre’s charitable activities. The Zohar is written in the ancient language of Aramaic and contains universal wisdom that predates religion, to inspire and unify millions of people of all nationalities, faiths, and backgrounds. Rav Berg’s vision was of a Zohar in every home across the globe to bring the light and power of the Zohar to all . The Zohar promotes universal principles, emphasizing the profound importance of human dignity and respect, thereby fostering peace and unity amongst all people.

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and performance Key performance indicators

The consolidated income increased from £3.1m in 2022 to £4.8m this year as a result of a major one-off restricted donation received for the development of 12 Stratford Place. As a result of the increased income and timing of the expenditure on major projects the Charity ended the financial year with a consolidated operating profit of £1.2m (2022: £3.8m loss).

The charities consolidated accumulated reserves increased by £424k (2022: £4.0m decrease) to £57.5m (2022: £57.1m) after adjusting for foreign exchange gains and losses. Restricted reserves of £2.6m represent 5% of the total reserves and continue to decrease each year as the level of spending on the 12 Stratford Place developments increases.

Income received from donations during the year represents 47% of the total unrestricted income of £3.0m (2022: £2.5m) and increased by 23% from last year. The increase in donation income from last year is largely a result of the ongoing internal reorganisation of the Charity's operations in Europe and Africa which started in 2022.

We are gradually starting to see more consistent levels of income each year as the Charity continues to focus on delivering against its annual operational targets in a more structured and controlled manner.

Expenditure on charitable activities increased by 5% to £4.4m (2022: £4.1m) during the year which is primarily driven by inflation as operating expenses increased.

Total expenditure (including fundraising expenses) for the year increased to £4.9m from £4.5m in 2022 due to inflation and increased expenditure on fundraising activities.

The organisation's fixed asset investments were valued at £15.4m (2022: £17.9m) at the close of the financial year. A further £3.4m (2022: £6.2m) was withdrawn from the investment portfolio during the year and applied to settle the security-backed loan facility with Barclays Bank. The investment portfolio delivered a gain of £1.2m as reflected in note 16 of the accounts.

£14.3m (2022: £16.3m) of the total investments of £15.4m are managed by Barclays UK and invested in listed/ liquid assets. The investment portfolio managed by Barclays delivered a profit of 10.4% (2022: 9.75% loss) over the year.

The balance of the investment portfolio is managed by Axentia, the value of the portfolio has not changed during the year and we have continued to impair the value of the private equity investments within the portfolio. The Investment Committee continues to monitor the investments held in this portfolio and seek further independent professional advice.

Review of activities

We continue to measure the organisation’s progress against the following key indicators:

2023 was a year of consolidation following the disruption brought about by the COVID-19 pandemic in the previous year. We continued to revert to the basic, tried, and tested operating model of engaging with and reaching out to the Kabbalah community and the wider public.

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

We continued to drive the implementation of the updated marketing strategy and to invest in new staff and the appropriate marketing channels in support of the Charity’s ambition to reach a wider global audience.

The Zohar Project Activities for the year focused on manifesting the Charities spiritual vision in environments, communities, and countries that have or continue to experience human conflict and suffering. We distributed 30,650 Zohar’s in hospitals, and churches in Ukraine and Poland during the year and continue to engage with government offices and embassies across Europe.

Investment policy and performance

The Charity has adopted a total return policy for the investment portfolio. The Centre’s investment funds are placed with and managed by two experienced and qualified Fund Managers in Barclays Wealth Management and Axentia. The Investment Committee determines the organisation’s risk profile and the high-level investment strategy to provide overall guidance to the appointed Fund Managers. The Investment Committee meets every quarter to review the performance of the investment portfolio and to reassess the risks as more economic data becomes available and global markets respond.

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

A summary of the financial performance for 2023 is set out in the statement of financial activities and the balance sheet on pages 13 to 16.

The organisation's consolidated income for the year increased from £3.1m in 2022 to £4.8m in 2023.

The Centre generates its income from the following sources:

This year's results continue to highlight the unpredictability of, and over-reliance on, donor income. The Trustees continue to be aware of the historical performance and the need to diversify and generate more income from trading activities, the investment portfolio, and rental income from the investment properties. The current financial projections reflect that the ongoing development of 12 Stratford Place and the retreat Centre in Israel will make a significant and consistent contribution to the charity's income in future years upon completion of the projects.

Total expenditure increased by 9% (2022: 20% increase) in 2023, from £4.5m in 2022 to £4.9m in 2023. The charities operating costs increased during the year as inflation was at its peak and suppliers started to pass on their price increases, particularly with the Teacher's accommodation in London.

Going concern

The Trustees are confident that the Charity has adequate resources to continue its operational activities for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Total funds increased from £57.1m in 2022 to £57.5m in 2023 as a result of the operating profit generated during the year. The Trustees regularly reassess the operational strategy and seek options to diversify the source of income; considering the constant changes taking place in the external environment and in particular the impact of these changes on the long-term viability of the planned building works. The Trustees will continue to consult and draw on specialist advice as necessary throughout the construction of the building.

The Trustees review the level of resources annually and continue to believe that the Charity is in a sound financial position with the appropriate level of unrestricted funds necessary to achieve the Charity's growth objectives and plans for the future.

Material investments policy

The Trustees continue to consult widely with a range of investment specialists to assess and understand the changing investment landscape. The investment policy is reviewed and updated as is considered necessary for the Charity given the prevailing circumstances at the time.

The Centre’s investment portfolio is managed by a team of reputable and professional investment managers who report directly to the Investment Committee every quarter.

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Reserves policy

The Charity’s reserves policy is to maintain unrestricted reserves to cover twelve month’s operating expenditure, plus the additional capital projects, as listed below.

The Centre held unrestricted reserves of £54.9m (2022: £54.1m) at the close of the financial year. The unrestricted reserves include land and buildings valued at £37.5m (2022: £36.6m), the remaining cash or liquid reserves of £17.4m (2022: £17.5m) are available to cover the targeted level of reserves, and funding of £17.1m for the activities and capital projects listed above.

The targeted level of unrestricted reserves as of 31 December 2023 is £17.1m. The small excess reserves are being held to cover any unforeseen (inflation, project delays, etc.) capital expenditure related to the listed projects.

Plans for future periods

The Charity continues to review its operational plans on an annual basis, this entails a review of the past year's performance across the entire organisation and reassessing the growth opportunities and/or areas that require improvement and ways in which the charity can better utilise its assets and facilities across London and Europe, to achieve a more sustainable and impactful business model whilst delivering its mission and charitable objectives. The primary goal is to spread the wisdom of Kabbalah by increasing student enrolment numbers and expanding into more communities across Europe and Africa in a sensible, organised, and financially sustainable manner.

It is envisaged that the desired growth will be achieved by:

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1. UK Building Works at 12 Stratford Place and 29 Conway Street.

The project to develop the vacant land and refurbish 12 Stratford Place is due to be completed in early 2025. The project expenditure in the current financial year increased to £1,582,330 (2022: £1,056,551).

The cumulative expenditure (since the project started) on the project at year-end was £4.2m (2022: £2.6m).

The goal for the year ahead is to finalise the interior designs and ensure that the 12 Stratford Place project is completed to the required standard, on time, and within budget. The plan is to finalise the business model for the building post-completion in 2024.

We received the necessary permission to proceed with converting 29 Conway Street into four apartments during this financial year. The plan for 2024 is to complete the architectural drawings and to start the building work in Q4 of 2024 for completion in Q1 of 2025.

2. Publishing Activities

The Kabbalah Centre invested in the purchase of the sacred Kabbalistic writings by a renowned student of Kabbalah in 2019. The writings are considered to be the central textbooks for students of Kabbalah. We anticipated that these rare and historical writings would significantly enhance the Centre’s unique content offering in future years. The writings are in digital format and comprise more than 10,000 pages of unpublished material.

The Publishing team will continue to work with the Kabbalah Centre to ensure that each edition is thoroughly researched and carefully crafted to provide the highest quality content that will generate an ongoing source of income for the charity.

3. Development of Property Purchased in Israel

The Kabbalah Centre purchased two properties in Caesarea, Israel through KCP (a subsidiary charity registered in Israel) in 2021 with the sole purpose of building an international retreat Centre on the vacant land.

The project team will now proceed to appoint the professional team who will be tasked with working on the design and architectural drawings and the required planning permissions in Israel. The Centre will continue to lead the global fundraising activities for this project over the next year.

4. Zohar Project Activities

The Zohar Project provides the foundation and serves as an integral component of the Centre’s charitable activities. The charity will continue to focus on the Zohar Project in the year ahead with particular focus on (a) the distribution and volunteering activities in Ukraine and Poland (b) completing the translation of the Zohar into French and (c) streamlining the printing, storage, and distribution of the Zohars in Spain.

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Structure, governance and management

Governing Document

Kabbalah Centre (the Charity) is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 29 October 1998. It is also registered as a Charity (Charity number: 1079796) with the Charity Commission of England and Wales.

The principal object of the Charity is to advance the understanding of the ancient spiritual wisdom of the Kabbalah, to make the Kabbalah teachings more readily available to people of all backgrounds, and in turn to build global consciousness around the primary Kabbalah principles of tolerance, sharing, proactive behaviour, and human dignity.

Organisational Structure

The Kabbalah Centre was founded by Rav Yehuda Ashlag in 1992 and now has locations in more than 40 cities across the globe.

Kabbalah Centre International (KCI) serves as the global Head Office or reporting Centre for Europe and South America. KCI provides ongoing strategic support to the UK Charity, the UK Charity in turn has created two operating divisions (KCL & KCE) to implement and manage the activities across the United Kingdom, Israel, and other countries in Europe and Africa. The divisional operations are consolidated for accounting and reporting purposes, reporting to the UK Board. The UK Board of Trustees consists of five members, two of which also serve on the KCI Board.

KCL (the division) focuses solely on the charitable activities within the United Kingdom, whereas KCE (the division) has oversight over the operations across Europe and Africa. KCE provides the necessary operational support and guidance to the registered entities and study groups in Poland, France, Italy, Spain, Portugal, Israel, South Africa, and the Republic of Côte d’Ivoire.

To meet local governance requirements, we have registered independent legal entities in Poland, France, Italy, Spain, South Africa, and the Republic of Côte d’Ivoire, each of the mentioned countries has a Board and a local management team that reports to the Trustees via the UK based management team. The UK charity also revived Kids Creating Peace (KCP) in 2022 which is a charity registered in Israel that was previously dormant, KCP is a wholly owned subsidiary of the UK charity.

The Trustees continue to recognise and monitor the potential conflict of interest issues that may arise as a result of the organisational structure outlined above. The Charity continues to reassess the situation and implement further measures to strengthen the governance procedures to meet the required standard.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Lady Homa Alliance Michael Berg Yael Green Rabbi Yarom Yardeni Gladys Obadiah

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Method of appointment or election of trustees

The Charity appoints new Trustees by first assessing the functional skills and expertise required for the development and governance of the Kabbalah Centre and thereafter selects Trustees on that basis. The nominated new Trustee is presented to the full Board for approval and acceptance before any appointment is made.

The appointment of Trustees is governed by the Memorandum and Articles of Association. Trustee nominations are solicited internally from other current and past Trustees within the Charity and its supporters and the Kabbalah community. The new Trustee is proposed, seconded, and voted in at a Board meeting.

Each new Trustee is taken through an induction programme. The programme includes briefings on their legal and ethical responsibilities as Trustees, the ethos and values of Kabbalah, and a historical overview of the organisation. The Trustees also receive the Charity Commission guidance documents and are required to read and sign the conflicts of interest and code of ethics documents.

Organisational structure and decision making

The Board of Trustees, which must have at least three members, provides the governance, oversight, and strategic leadership of the Charity. The Board meets every three months.

Remuneration policy

The Centre aims to set remuneration levels for each position within the scale set by comparable charities, whilst being mindful of the specific range of business skills, spiritual knowledge, and commitment required to run an organisation of this nature.

Risk Management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that adequate systems and procedures are in place to mitigate any exposure to the major risks identified. The Trustees and management assess the level of risk on an ongoing basis by looking at both the local UK Charity sector and global trends, the charity's financial performance, how global markets are responding to changing events, and other indicators within Kabbalah Centres across the globe.

The Trustees have identified the key risks which are (1) Cyber security (2) management of the investment portfolio, the related returns/losses in the current economic climate and (3) Managing the building projects within budget and the agreed building program.

Management is tasked with ensuring that the necessary measures are in place to ensure that all IT systems are protected and regular monitoring of the investments is carried out by the Investment Committee to ensure that longterm investment returns are achieved and sustained. The investment strategy is reviewed annually to ensure that it is realistic, relevant, and appropriate to achieve the required returns. Key organisational policies and procedures are reviewed annually to ensure that we reassess and continue to strengthen and enhance internal controls, reporting, and governance standards.

The professional project team appointed by the Trustees to manage the building projects continues to monitor and track progress closely with regular project meetings and site visits.

KABBALAH CENTRE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of Kabbalah Centre for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company 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 and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

Auditor

In accordance with the company's articles, a resolution proposing that Glazers be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

.............................. forz Obadkeah Gladys Obadiah Trustee

24/09/2024 Date: .............................................

KABBALAH CENTRE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KABBALAH CENTRE

Opinion

We have audited the financial statements of Kabbalah Centre (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

KABBALAH CENTRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KABBALAH CENTRE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

KABBALAH CENTRE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KABBALAH CENTRE

Benjamin Allen FCCA (Senior Statutory Auditor) for and on behalf of Glazers

Chartered Accountants Statutory Auditor

25 September 2024.........................

843 Finchley Road London NW11 8NA

KABBALAH CENTRE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
3
1,442,025
Charitable activities
758,733
Other trading activities
143,185
Investments
4
448,352
Other income
257,070
Total income
3,049,365
Expenditure on:
Raising funds
5
547,605
Charitable activities
6
3,832,289
Total expenditure
4,379,894
Net gains/(losses) on
investments
11
1,321,306
Net income/(expenditure)
(9,223)
Transfers between
funds
1,582,330
Other recognised
gains and losses:
Revaluation of tangible
fixed assets
130,000
Other gains/(losses)
12
(929,766)
Net movement in
funds
8
773,341
Reconciliation of funds:
Fund balances at 1 January
2023
54,151,585
Fund balances at 31
December 2023
54,924,926		 Restricted
funds
2023
£
1,752,356
-
-
-
-
1,752,356
-
519,779
519,779
-
1,232,577
(1,582,330)
-
-
(349,753)
2,954,483
2,604,730		 Total
Unrestricted
funds
2023
2022
£
£
3,194,381
1,167,337
758,733
575,316
143,185
209,293
448,352
378,763
257,070
140,999
4,801,721
2,471,708
547,605
362,867
4,352,068
3,825,962
4,899,673
4,188,829
1,321,306
(2,373,198)
1,223,354
(4,090,319)
-
1,072,689
130,000
(300,000)
(929,766)
24,870
423,588
(3,292,760)
57,106,068
57,444,345
57,529,656
54,151,585		 Restricted
funds
2022
£
630,233
-
-
-
-
630,233
-
310,056
310,056
-
320,177
(1,072,689)
-
-
(752,512)
3,706,995
2,954,483		 Total
2022
£
1,797,570
575,316
209,293
378,763
140,999
3,101,941
362,867
4,136,018
4,498,885
(2,373,198)
(3,770,142)
-
(300,000)
24,870
(4,045,272)
61,151,340
57,106,068

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

KABBALAH CENTRE

CHARITY STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
3
1,165,887
Charitable activities
758,733
Other trading activities
143,185
Investments
4
448,352
Other income
231,868
Total income
2,748,025
Expenditure on:
Raising funds
5
547,605
Charitable activities
6
3,506,362
Total expenditure
4,053,967
Net gains/(losses) on
investments
11
1,321,306
Net income/(expenditure)
15,364
Transfers between
funds
1,582,330
Other recognised
gains and losses:
Revaluation of tangible
fixed assets
130,000
Other gains/(losses)
12
(477,157)
Net movement in
funds
8
1,250,537
Reconciliation of funds:
Fund balances at 1 January
2023
54,151,585
Fund balances at 31
December 2023
55,402,122		 Restricted
funds
2023
£
1,752,356
-
-
-
-
1,752,356
-
519,779
519,779
-
1,232,577
(1,582,330)
-
-
(349,753)
2,954,483
2,604,730		 Total
Unrestricted
funds
2023
2022
£
£
2,918,243
1,167,337
758,733
575,316
143,185
209,293
448,352
378,763
231,868
140,999
4,500,381
2,471,708
547,605
362,867
4,026,141
3,825,962
4,573,746
4,188,829
1,321,306
(2,373,198)
1,247,941
(4,090,319)
-
1,072,689
130,000
(300,000)
(477,157)
24,870
900,784
(3,292,760)
57,106,068
57,444,345
58,006,852
54,151,585		 Restricted
funds
2022
£
630,233
-
-
-
-
630,233
-
310,056
310,056
-
320,177
(1,072,689)
-
-
(752,512)
3,706,995
2,954,483		 Total
2022
£
1,797,570
575,316
209,293
378,763
140,999
3,101,941
362,867
4,136,018
4,498,885
(2,373,198)
(3,770,142)
-
(300,000)
24,870
(4,045,272)
61,151,340
57,106,068

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

KABBALAH CENTRE

GROUP BALANCE SHEET

AS AT 31 DECEMBER 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 13 1,357,696 1,600,794
Tangible assets 14 28,765,707 27,740,853
Investment property 15 9,561,366 9,624,333
Investments 16 15,424,272 17,892,712
55,109,041 56,858,692
Current assets
Stocks 17 51,370 62,195
Debtors 18 460,064 464,580
Cash at bank and in hand 2,462,634 3,990,741
2,974,068 4,517,516
Creditors: amounts falling due within 20
one year (553,453) (841,045)
Net current assets 2,420,615 3,676,471
Total assets less current liabilities 57,529,656 60,535,163
Creditors: amounts falling due after
more than one year 21 - (3,429,095)
Net assets excluding pension liability 57,529,656 57,106,068
Net assets 57,529,656 57,106,068
The funds of the charity
Restricted income funds 23 2,604,730 2,954,483
Unrestricted funds 54,924,926 54,151,585
57,529,656 57,106,068

24/09/2024

The financial statements were approved by the trustees on .........................

.............................. forz Obadiah Gladys Obadiah

Trustee

Company registration number 03659214 (England and Wales)

KABBALAH CENTRE

CHARITY BALANCE SHEET

AS AT 31 DECEMBER 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 13 1,357,696 1,600,794
Tangible assets 14 25,737,443 24,517,942
Investment property 15 6,907,151 6,773,288
Investments 16 15,424,272 17,892,712
49,426,562 50,784,736
Current assets
Stocks 17 51,370 62,195
Debtors 18 6,621,365 6,538,536
Cash at bank and in hand 2,392,143 3,990,741
9,064,878 10,591,472
Creditors: amounts falling due within 20
one year (484,588) (841,045)
Net current assets 8,580,290 9,750,427
Total assets less current liabilities 58,006,852 60,535,163
Creditors: amounts falling due after
more than one year 21 - (3,429,095)
Net assets excluding pension liability 58,006,852 57,106,068
Net assets 58,006,852 57,106,068
The funds of the charity
Restricted income funds 23 2,604,730 2,954,483
Unrestricted funds 55,402,122 54,151,585
58,006,852 57,106,068

24/09/2024

The financial statements were approved by the trustees on .........................

.............................. forz Obadiah Gladys Obadiah

Trustee

Company registration number 03659214 (England and Wales)

KABBALAH CENTRE

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash absorbed by operations 27 (196,514) (300,370)
Investing activities
Purchase of tangible fixed assets (1,617,302) (4,300,691)
Purchase of investment property (3,863) (2,860,323)
Proceeds from disposal of other investments 3,438,133 6,200,000
Investment income received 322,808 378,733
Net cash generated from/(used in)
investing activities 2,139,776 (582,281)
Financing activities
Proceeds from new bank loans - 3,900,000
Repayment of bank loans (3,471,369) (1,945,118)
Net cash (used in)/generated from
financing activities (3,471,369) 1,954,882
Net (decrease)/increase in cash and cash
equivalents (1,528,107) 1,072,231
Cash and cash equivalents at beginning of year 3,990,741 2,918,510
Cash and cash equivalents at end of year 2,462,634 3,990,741

KABBALAH CENTRE

CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash absorbed by operations 27 (294,862) (6,374,325)
Investing activities
Purchase of tangible fixed assets (1,589,445) (1,077,781)
Purchase of investment property (3,863) (9,278)
Proceeds from disposal of other investments 3,438,133 6,200,000
Investment income received 322,808 378,733
Net cash generated from investing
activities 2,167,633 5,491,674
Financing activities
Proceeds from new bank loans - 3,900,000
Repayment of bank loans (3,471,369) (1,945,118)
Net cash (used in)/generated from
financing activities (3,471,369) 1,954,882
Net (decrease)/increase in cash and cash
equivalents (1,598,598) 1,072,231
Cash and cash equivalents at beginning of year 3,990,741 2,918,510
Cash and cash equivalents at end of year 2,392,143 3,990,741

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Kabbalah Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is 12 Stratford Place, London, W1C 1BB.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities are costs incurred on the charity's operations.

Resources expended are allocated to the particular activity where the cost relates directly to that activity. All support costs have been allocated to charitable activities. Governance costs are re-allocated to each of the activities on the basis of direct expenditure as follows:

· Raising voluntary income 16% · Charitable activities 84%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Intangible assets are capitalised where the purchase price exceeds £500.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Digital Kabbalistic writings by scholar Rav 10 year straight line Ashlag

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Items of equipment are capitalised where the purchase price exceeds £500.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 50 year straight line Fixtures and fittings 3 year straight line Motor vehicles 3 year straight line Other fixed assets 3 year straight line Sefer Torah indefinite useful life

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in statement of financial activities. The valuation method used to determine fair value will be stated in the notes to the accounts.

1.9 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.10 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.11 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market. The charity retains a small amount of inventory of books (Zohars) some of which are distributed for free as part of the Zohar project.

1.12 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.13 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.14 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16 Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Charity

Charity
Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
1,165,887
1,752,356
Group
Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
1,442,025
1,752,356		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
2,918,243
1,167,337
630,233
Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
3,194,381
1,167,337
630,233		 Total
2022
£
1,797,570
Total
2022
£
1,797,570

4 Income from investments For the Charity and Group

Income from investments
For the Charity and Group
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Rental income 160,829 149,380
Income from listed investments 60,471 63,957
Interest receivable 227,052 165,426
448,352 378,763

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Expenditure on raising funds For the Charity and Group

Unrestricted Unrestricted

Governance costs
Investment manager fees
Investment property costs
Fundraising costs		 funds
2023
£
1,000
83,899
28,640
434,066
547,605		 funds
2022
£
638
91,922
42,484
227,823
362,867

6 Expenditure on charitable activities

Expenditure on charitable activities
Group Group Charity Charity
Charitable Charitable Charitable Charitable
activities activities activities activities
2023 2022 2023 2022
£ £ £ £
Direct costs
Depreciation and impairment 613,042 614,709 613,042 614,709
Staff costs 2,174,662 2,066,353 2,106,835 2,066,353
Other direct costs 1,469,084 1,129,921 1,210,984 1,129,921
Grants paid 28,587 245,403 28,587 245,403
Fundraising trading 34,360 59,020 34,360 59,020
4,319,735 4,115,406 3,993,808 4,115,406
Share of support and governance costs (see
note 7)
Governance 32,333 20,612 32,333 20,612
4,352,068 4,136,018 4,026,141 4,136,018
Analysis by fund
Unrestricted funds 3,506,362 3,825,962 3,506,362 3,825,962
Restricted funds 519,779 310,056 519,779 310,056
4,026,141 4,136,018 4,026,141 4,136,018

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7
Support costs allocated to activities
For the Charity and Group
Governance costs
Analysed between:
Fundraising
Charitable activities
8
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
Amortisation of intangible assets
9
Employees
For the Charity and Group
The average monthly number of employees during the year was:
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£120,001 - £130,000
£130,001 - £140,000
£140,001 - £150,000
£180,001 - £190,000
£240,001 - £250,000		 2023
£
33,333
1,000
32,333
33,333
2023
£
33,333
369,944
243,098
2023
Number
36
2023
Number
2
-
2
-
-
1
1
-
1
1
1		 2022
£
21,250
638
20,612
21,250
2022
£
21,250
372,262
242,446
2022
Number
38
2022
Number
2
2
-
2
2
-
-
1
-
1
-

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9 Employees

(Continued)

Remuneration of key management personnel

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel during the year were £561,087 (2022: £460,078). We have identified the following employees as key management : Chana Grinfeld, David Grinfeld, Avraham Nahmias & Marcus Weston due to the nature of their respective roles, decision making responsibility and seniority within the organisation as a whole. The teaching staff dedicate many years of study and spiritual practice to Kabbalah which generally extends to their entire family structure (wife & children), it is therefore common practice that a whole family unit may be involved and / or employed by the charity in some capacity from time to time.

Ruth Nahmias is related to Avraham Nahmias and she received remuneration of £44,830 (2022:£36,864) during the year. Nicole Weston is related to Marcus Weston and she also received remuneration of £62,992 (2022: £53,408) during the year.

The charity trustees were neither paid nor received any other benefits from employment with the charity during the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).

Trustee expenses represent the payment or reimbursement of travel and subsistence expenses incurred by the two overseas based Trustees totalling £2,840 (2022: £26,761 for 2 Trustees). The overseas travel is necessary to provide ongoing high level operational and spiritual support to the London and European centres. The visits allow for face to face meetings with the Kabbalah community and key donors across Europe.

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11 Gains and losses on investments For the Charity and Group

Gains and losses on investments
For the Charity and Group
Unrestricted Unrestricted
funds funds
2023 2022
Gains/(losses) arising on: £ £
Revaluation of investments 1,321,306 (2,373,198)

12 Other gains and losses

Other gains and losses
Group Group Charity
Unrestricted Unrestricted Unrestricted Unrestricted
funds funds funds funds
2023 2022 2023 2022
Gains/(losses) upon: £ £ £ £
Foreign exchange 929,766 (24,870) 477,157 (24,870)

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

13 Intangible fixed assets For the Charity and Group

Cost
At 1 January 2023 and 31 December 2023
Amortisation and impairment
At 1 January 2023
Amortisation charged for the year
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Digital
Kabbalistic
writings by
scholar Rav
Ashlag
£
2,424,463
823,669
243,098
1,066,767
1,357,696
1,600,794

14 Tangible fixed assets

Group
Freehold land
and buildings
£
Cost
At 1 January 2023
29,889,323
Additions
1,582,330
Exchange adjustments
(222,503)
At 31 December 2023
31,249,150
Depreciation and
impairment
At 1 January 2023
2,896,000
Depreciation charged in the
year
362,000
At 31 December 2023
3,258,000
Carrying amount
At 31 December 2023
27,991,150
At 31 December 2022
26,993,323		 Group
Other fixed
assets
£
1,237,555
34,972
-
1,272,527
490,026
7,944
497,970
774,557
747,529		 Group
Charity
Total Freehold land
and buildings
£
£
31,126,878
26,666,413
1,617,302
1,582,330
(222,503)
-
32,521,677
28,248,743
3,386,026
2,896,000
369,944
362,000
3,755,970
3,258,000
28,765,707
24,990,743
27,740,852
23,770,413		 Charity
Other fixed
assets
£
1,237,555
7,115
-
1,244,670
490,026
7,944
497,970
746,700
747,529		 Charity
Total
£
27,903,968
1,589,445
-
29,493,413
3,386,026
369,944
3,755,970
25,737,443
24,517,942

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15
Investment property
Fair value
At 1 January 2023
Additions through external acquisition
Net gains or losses through fair value adjustments
Foreign currency adjustments
At 31 December 2023		 Group
2023
£
9,624,333
3,863
130,000
(196,830)
9,561,366		 Charity
2023
£
6,773,288
3,863
130,000
-
6,907,151

Investment property comprises Flat 46 Harley House and 29 Conway Street. The Harley House property was revalued during the financial year by an independent professional valuer. 29 Conway Street was last independently valued on 7th April 2020, the property was not revalued this year as the Trustees have embarked on a project to convert the property into three apartments. This has led to the Trustees retaining the prior valuation given the planned building work at 29 Conway Street.

In 2022 an additional property was purchased in Israel by Kids Creating Peace. This has been held at its previous valuation as the purchase had occurred within two years of the year end.

16 Fixed asset investments For the Charity and Group

Listed
investments
Unlisted
investments
£
£
Cost or valuation
At 1 January 2023
16,297,245
2,174,669
Valuation changes
1,321,306
(114,157)
Interest & dividends
160,052
-
Management fees paid
(74,726)
(9,173)
Disposals
(3,438,133)
-
At 31 December 2023
14,265,744
2,051,339
Impairment
At 1 January 2023
-
579,202
Impairment losses
-
313,609
At 31 December 2023
-
892,811
Carrying amount
At 31 December 2023
14,265,744
1,158,528
At 31 December 2022
16,297,245
1,595,467		 Total
£
18,471,914
1,207,149
160,052
(83,899)
(3,438,133)
16,317,083
579,202
313,609
892,811
15,424,272
17,892,712

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

17 Stocks For the Charity and Group

17
Stocks
For the Charity and Group
Finished goods and goods for resale
18
Debtors
Amounts falling due within one year:
Trade debtors
Loan - Kids Creating Peace
Other debtors
Prepayments and accrued income
Amounts falling due after more than one
year:
Amounts owed by subsidiary undertakings
Total debtors
19
Loans and overdrafts
For the Charity and Group
Bank loans
Payable after one year		 Group
2023
£
242,233
-
54,814
163,017
460,064
2023
£
-
460,064		 Group
2022
£
117,668
-
161,805
185,108
464,581
2022
£
-
464,581		 2023
£
51,370
Charity
2023
£
238,968
-
54,781
163,017
456,766
2023
£
6,164,599
6,621,365
2023
£
-
-		 2022
£
62,195
Charity
2022
£
117,668
6,073,955
161,805
185,108
6,538,536
2022
£
-
6,538,536
2022
£
3,429,095
3,429,095

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

20 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Amounts owed to fellow group undertakings
Other creditors
Accruals and deferred income		 Group
2023
£
205,890
230,125
1,668
23,425
92,345
553,453		 Group
2022
£
280,686
83,316
5,592
-
471,451
841,045		 Charity
2023
£
193,356
194,612
1,668
2,607
92,345
484,588		 Charity
2022
£
280,686
83,316
5,592
-
471,451
841,045

21 Creditors: amounts falling due after more than one year For the Charity and Group

For the Charity and Group
2023 2022
Notes £ £
Bank loans 19 - 3,429,095

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

22 Related party transactions

Kabbalah Centre International (KCI) manages the printing and publication of all Kabbalah books that are distributed globally through the Centre’s in each country. The charity purchased books from KCI for resale to the value of £8,666 (2022: £41,061) during the year. The charity also purchased branded merchandise and products totalling £1,165 (2022: £24,811) and paid a sum of £15,532 for services obtained during the year.

Kabbalah Centre International (KCI) manages certain software licenses on behalf of the group. The charity paid KCI the sum of £37,490 (2022: £24,013) in respect of software and other license fees during the year.

The Kabbalah Centre launched a global membership scheme and package in 2019 where community members who sign up and join the scheme have access to the services and facilities provided by the Centre across all the countries where there is a physical presence. The membership scheme is managed by Kabbalah Centre International (KCI) who in turn provide grant funding to the UK charity to cover the cost of providing the service to the members. The charity received quarterly grants totalling £156,848 (2022: £164,691) during the year.

The charity's primary purpose is to spread the wisdom and teachings of Kabbalah across the globe. The UK Centre works and collaborates with other established Centre's and study groups to deliver this goal. In support of this work, the charity issued a grant of £26,824 to Kabbalah Centre, Mexico as a contribution towards the global Tree of Life project during this financial year.

We have identified the following as related parties by virtue of the charity having common Trustees with Kabbalah Centre International, a US-registered non-profit: Michael Berg & Elihayu Yardeni. The mentioned Trustees claimed travel expenses of £4,155 (2022: £26,826) during the year, all of which is business-related travel. The breakdown of the expenses by Trustee is Michael Berg £4,155 (2022: £13,030), Eliyahu Yardeni £0 (2022: £13,796).

The related party disclosure extends to the spouses and family members of the Trustees mentioned above. This includes Monica Berg & Yael Yardeni who provide Teaching and other specialist services (astrology reading, publishing books, etc.) related to the Kabbalistic spiritual philosophy and practices in conjunction with their partners from time to time. The above incurred travel-related expenses of £4,155 (2022: £3,164) during the year. The full amount disclosed was incurred by Monica Berg only.

The Charity provides ongoing Teaching and marketing support to the other registered Kabbalah entities across Europe & Africa, who may have common Trustees. The cost of the services provided are recovered as an administration fee, during 2023 the charity received administration fees of £198,394 (2022: £137,446). The fees were received from the following Kabbalah Centres, France £39,525 (2022: £20,991), South Africa £15,742 (2022: £17,460), Ivory Coast £43,225 (2022: £42,632), Italy £29,075 (2022: £45,807), Germany £57,953 (2022: £29,826) and Israel £12,874 (2022: £Nil).

The Trustees also have family members who are part of the Kabbalah community and participate in various activities on the same terms and basis as the general public. The aggregated voluntary donations and purchase of event tickets from the Trustees and family members during the year was £1,168,727 (2022: £38,399).

Action for London (A4L) is a registered charity that provides volunteer outreach activities to less fortunate communities across London. It is a related party by virtue of trustees in common. The charity received donations amounting to £0 (2022: £3,800) on behalf of A4L and used these funds to pay expenses of £0 (2022: £1,442) during the year.

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

23 Restricted funds

For the Charity and Group

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At
Rav Berg Zohar Project
12 Stratford Place Building
Extension
The Karen Berg Scholarship
Fund
Tree of Life
Kabbalah Youth Program
General Publishing
Shabbat Fund
Sukkah
Sefer Torah
Purim
Holiday Project
Bouhanna Project
KCP
A4L
Previous year:
At
Rav Berg Zohar Project
12 Stratford Place Building
Extension
The Karen Berg Scholarship
Fund
Shabbat Fund
Tree of Life
Kabbalah Youth Program
General Publishing
Sukkot		 1 January
2023
Incoming
resources
Resources
expended
Transfers
At 31
December
2023
£
£
£
£
£
504,034
355,051
(300,309)
-
558,776
2,301,984
1,149,433
-
(1,582,330)
1,869,087
109,181
77,557
(100,650)
-
86,088
12,688
9,755
(22,443)
-
-
21,285
12,538
-
-
33,823
5,311
-
-
-
5,311
-
72,818
(72,818)
-
-
-
13,877
(13,877)
-
-
-
50,934
-
-
50,934
-
639
(639)
-
-
-
4,500
(4,150)
-
350
-
3,946
(3,946)
-
-
-
1,308
(1,308)
-
-
-
-
361
-
361
2,954,483
1,752,356
(519,779)
(1,582,330)
2,604,730
1 January
2022
Incoming
resources
Resources
expended
Transfers
At 31
December
2022
£
£
£
£
£
235,352
444,367
(175,685)
-
504,034
3,356,673
18,000
-
(1,072,689)
2,301,984
114,970
90,846
(96,635)
-
109,181
-
26,120
(26,120)
-
-
-
14,287
(1,599)
-
12,688
-
21,285
-
-
21,285
-
5,311
-
-
5,311
-
10,017
(10,017)
-
-
3,706,995
630,233
(310,056)
(1,072,689)
2,954,483

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

24 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Charity
At 1 January
2023
£
Revaluation
reserve
12,609,482
General funds
41,542,103
54,151,585
Charity
Previous year:
At 1 January
2022
£
Revaluation
reserve
12,909,482
General funds
44,534,863
57,444,345
Group
At 1 January
2023
£
Revaluation
reserve
12,609,482
Foreign
exchange
reserve
-
General funds
41,542,103
54,151,585		 Incoming
resources
£
-
2,748,025
2,748,025
Incoming
resources
£
-
2,471,708
2,471,708
Incoming
resources
£
-
-
3,049,365
3,049,365		 Resources
expended
£
-
(4,053,967)
(4,053,967)
Resources
expended
£
-
(4,188,829)
(4,188,829)
Resources
expended
£
-
-
(4,379,894)
(4,379,894)		 Transfers
£
-
1,582,330
1,582,330
Transfers
£
-
1,072,689
1,072,689
Transfers
£
-
-
1,582,330
1,582,330		 Gains and
losses
£
130,000
844,149
974,149
Gains and
losses
£
(300,000)
(2,348,328)
(2,648,328)
Gains and
losses
£
130,000
274
391,266
521,540		 At 31
December
2023
£
12,739,482
42,662,640
55,402,122
At 31
December
2022
£
12,609,482
41,542,103
54,151,585
At 31
December
2023
£
12,739,482
274
42,185,170
54,924,926

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

24
Unrestricted funds
Group
Previous year:
At 1 January
2022
£
Revaluation
reserve
12,909,482
General funds
44,534,863
57,444,345		 Incoming
resources
£
-
2,471,708
2,471,708		 Resources
expended
£
-
(4,188,829)
(4,188,829)		 Transfers
£
-
1,072,689
1,072,689		 (Continued)
Gains and
losses
At 31
December
2022
£
£
(300,000)
12,609,482
(2,348,328)
41,542,103
(2,648,328)
54,151,585

25 Analysis of net assets between funds Charity

Unrestricted
funds
2023
£
At 31 December 2023:
Intangible fixed assets
1,357,696
Tangible assets
25,737,443
Investment properties
6,907,151
Investments
15,424,272
Current assets/(liabilities)
5,975,560
55,402,122
Charity
Unrestricted
funds
2022
£
At 31 December 2022:
Intangible fixed assets
1,600,794
Tangible assets
24,517,942
Investment properties
6,773,288
Investments
17,892,712
Current assets/(liabilities)
6,795,944
Long term liabilities
(3,429,095)
54,151,585		 Restricted
funds
2023
£
-
-
-
-
2,604,730
2,604,730
Restricted
funds
2022
£
-
-
-
-
2,954,483
-
2,954,483		 Total
2023
£
1,357,696
25,737,443
6,907,151
15,424,272
8,580,290
58,006,852
Total
2022
£
1,600,794
24,517,942
6,773,288
17,892,712
9,750,427
(3,429,095)
57,106,068

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25
Analysis of net assets between funds
Group
Unrestricted
funds
2023
£
At 31 December 2023:
Intangible fixed assets
1,357,696
Tangible assets
28,765,707
Investment properties
9,561,366
Investments
15,424,272
Current assets/(liabilities)
(184,115)
54,924,926
Group
Unrestricted
funds
2022
£
At 31 December 2022:
Intangible fixed assets
1,600,794
Tangible assets
24,517,942
Investment properties
6,773,288
Investments
17,892,712
Current assets/(liabilities)
6,795,944
Long term liabilities
(3,429,095)
54,151,585		 (Continued)
Restricted
Total
funds
2023
2023
£
£
-
1,357,696
-
28,765,707
-
9,561,366
-
15,424,272
2,604,730
2,420,615
2,604,730
57,529,656
Restricted
Total
funds
2022
2022
£
£
-
1,600,794
-
24,517,942
-
6,773,288
-
17,892,712
2,954,483
9,750,427
-
(3,429,095)
2,954,483
57,106,068

26 Financial commitments, guarantees and contingent liabilities

Tax on properties purchased in Israel

In the prior financial year, two properties were purchased in Israel through a subsidiary, Kids Creating Peace, which is a registered charity in Israel. The acquisition by Kids Creating Peace was considered to be for public purposes, and consequently, a reduced acquisition tax rate of 0.5% was applied. However, the Israeli tax authorities have since disputed this classification and are pursuing legal action to resolve the matter.

The potential liability for the acquisition tax and associated fines is estimated to be £526,332 (ILS 2,418,250) as of the balance sheet date.

Kabbalah Centre remains confident that the correct acquisition tax was paid for these properties and considers this a contingent liability.

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

27 Cash generated from operations 2023 2022
£ £
Surplus/(deficit) for the year 1,247,941 (3,770,142)
Adjustments for:
Investment income recognised in statement of financial activities (448,352) (378,763)
Foreign exchange differences (477,157) 24,870
Fair value gains and losses on investments (1,321,306) 2,373,198
Depreciation and impairment of tangible fixed assets 613,042 614,709
Movements in working capital:
Decrease/(increase) in stocks 10,825 (14,130)
(Increase) in debtors (82,829) (5,480,730)
(Decrease)/increase in creditors (356,457) 144,009
Cash absorbed by operations (814,293) (6,486,979)
**27 ** Cash generated from operations
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Surplus/(deficit) for the year 1,223,354 (3,770,142) 1,247,941 (3,770,142)
Investment income recognised in statement of
financial activities (448,352) (378,763) (448,352) (378,763)
Foreign exchange differences 57,367 - - -
Fair value gains and losses on investments (1,321,306) 2,471,488 (1,321,306) 2,471,488
Depreciation and impairment of tangible fixed assets 613,042 614,709 613,042 614,709
Interest charge 42,274 39,237 42,274 39,237
(Increase) in stocks 10,825 (14,132) 10,825 (14,132)
(Increase)/decrease in debtors (86,127) 593,224 (82,829) (5,480,731)
(Decrease)/increase in creditors (287,592) 144,009 (356,457) 144,009
Cash absorbed by operations (196,515) (300,370) 294,862 6,374,325

KABBALAH CENTRE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

29 Analysis of changes in net funds
Charity
At 1 January Cash flows At 31 December
2023 2023
£ £ £
Cash at bank and in hand 3,990,741 (1,598,598) 2,392,143
Loans falling due after more than one year (3,429,095) 3,429,095 -
561,646 1,830,497 2,392,143
Group
At 1 January Cash flows At 31 December
2023 2023
£ £ £
Cash at bank and in hand 3,990,741 (1,528,107) 2,462,634
Loans falling due after more than one year (3,429,095) 3,429,095 -
561,646 1,900,988 2,462,634