THE RATIONALIST ASSOCIATION
(A company limited by guarantee)
Report and Financial Statements
Year ended 31 December 2023
Charity No: 1096577 Company No: 04118489
Calculus Assurance Services
5 Priory Road Loughton Essex IG10 1AF
The Rationalist Association
CONTENTS
| Legal and administrative information | 1 |
|---|---|
| Report of the Trustees | 2 - 5 |
| Independent Examiner’s report | 6 |
| Statement of Financial Activities | 7 |
| Summary Income and Expenditure Accounts | 8 |
| Balance Sheet | 9 |
| Notes forming part of the Financial Statements | 10 - 23 |
The Rationalist Association
Legal and Administrative Information
| Trustees: Clive Coen Chair |
Trustees: Clive Coen Chair |
Trustees: Clive Coen Chair |
|---|---|---|
| Colin Brewer Trustee |
||
| John Emanuel Trustee |
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| RosemaryEmanuel Trustee |
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| Keiron McCabe Trustee |
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| Caspar Melville Trustee(resigned 1 March 2023) |
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| Suzanne Hobson Tess Woodcraft |
Trustee (resigned 2 March 2023) Trustee(resigned 12 June 2023) |
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| Registered office: The Green House 244-254 Cambridge Heath Road London E2 9DA Company secretary: N/A Chief executive officer: N/A Charity registration number: 1096577 Company registration number: 04118489 Independent Examiner: James Lambden FCA CTA Calculus Assurance Services 5 Priory Road Loughton Essex IG10 1AF Bankers: The Co-Operative bank Plc Olympic House PO Box 250 Delf House Skelmersdale WN8 6WJ |
1
The Rationalist Association
Report of the Trustees (including the Directors’ Report) for year ended 31 December 2023
The Trustees, who are also the directors of the charitable company for the purposes of the Companies Act, present their annual report together with the financial statements of The Rationalist Association for the period ended 31 December 2023. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements of the Companies Act 2006 and the Charities Act 2011, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the charitable company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
The charity is a charitable company limited by guarantee without share capital and was set up on 1 December 2000. It is governed by a Memorandum and Articles of Association. Its objects are to promote rational inquiry in place of doctrine, and to encourage ethical living free from supernatural beliefs. We undertake our advocacy through our website, publication of the quarterly print magazine New Humanist and production of podcasts.
Reference and administrative details of the charity, its trustees and advisers
The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end and other administrative details are set out on page 1.
Objectives and activities
a. Activities undertaken to achieve objectives
The Rationalist Association aims to promote rational inquiry based on evidence in pursuit of its charitable object, the advancement of rationalism and humanism; and to demonstrate that a moral life is possible indeed preferable, based upon a naturalistic and scientific understanding of the world and humanity's place in it. A great deal of this work is achieved through the medium of New Humanist magazine, but also through other channels such as our website, public talks and social media.
b. Volunteers
The charity does not make significant use of volunteers, other than the trustees, who are grateful for the efforts of its members and supporters who work towards achieving its objects as volunteers.
c. Main activities undertaken to further the charitable company's purposes for the public benefit
The main activity of the charity is promoting rationalism and humanism through the publication of New Humanist magazine, the New Humanist website and other media. The key measures of success in achieving the charity’s objectives are the numbers of new members, 10 and new magazine subscriptions, 462. There is a natural loss of members and subscribers due to death and change in circumstances.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
New Humanist is published quarterly, in full colour. We aim for New Humanist to reach a wide audience for the promotion of our ideals, and the benefit of recipients. Through subscriptions and bookshop sales, we obtain income from those who, ¬whether currently supporters or not, are able to pay. Then, within the resources this makes available, we give away free copies to a range of schools, libraries, prisons and individuals who cannot afford to pay. We publish the majority of the magazine content, and original web-only articles and reviews, on our website, which is free to use for all who have access to a computer. We also produce regular newsletters which are free.
The Rationalist Association also plays an important role in public advocacy, publicising and educating about rationalist and humanist values at literary events, such as the Stoke Newington Literary Festival. We also aim to make New Humanist a resource for the wider humanist and atheist movements, covering campaigns by the BHA and National Secular Society among others.
All this charitable activity is made possible by past and present benefactors whose legacies, donations and membership subscriptions enable us to support the promotion of rationalism and humanism to as many people as possible, regardless of whether they are able to pay.
Achievements and performance
a. Main achievements of the charitable company
Subscriptions for the magazine remained stable and sales via newsagents recovered the downturn that was sustained during pandemic. The Association is committed to maintaining high standards for the publication and actively seeks thoughtful contributors in a range of humanist and rationalist fields. Alongside the quarterly print and digital versions of the magazine we have also commissioned and published topical articles on our website.
2
The Rationalist Association
Report of the Trustees (including the Directors’ Report) for year ended 31 December 2023
In 2023 we continued the work we started in 2017 to launch additional income stream projects that are expected to generate income, one of which has been the digitization of our magazine archive, which is available to RA members; this project was enabled by the generous support of D J Stewart. Our digital archive is offered to institutions as a subscription service.
The number of RA members at the end of 2023 was 248 (2022: 416). On average some 6,900 copies of the magazine were printed each quarter for distribution. This includes free distribution of New Humanist to prison libraries as part of our charitable objectives.
b. Investment policy and performance
The trustees invest reserves that are not required for short-term operational cash flow in medium term investment funds that enable repayment when required while also providing an income and future growth potential. The trustees always consider the social, environmental, and ethical impact of any investment. The Association’s investments are therefore with COIF Charities Ethical Investment Fund and M&G Equities Investment Fund for Charities
An annual budget for investment income is set and compared to the income received in monitoring the performance of the investment managers.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence 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.
b. Reserves policy
The trustees have examined the charity’s requirements for reserves in light of the main risks to the organisation. They have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be approximately 12 months of expenditure, which at current levels amounts to approximately £240K. The trustees are pleased to report that unrestricted reserves are currently 4 times this threshold, however, income and expenditure on activities have diminished in recent years and the trustees plan to reverse this trend, so the current level of reserves is not felt to be excessive. Recent guidance from the Charity Commission recommends that charities should hold up to 6 months operating costs in reserves, which at current levels would be £120K
c. Surplus / (Deficit)
During the year the charity received incoming resources of £145,701 (2022: £149,352) and had outgoing resources of £240,683 (2022: £239,160) and recognised investment gains of £35,563 (2022: losses £129,959), leaving reserves carried forward of £1,193,698 (2022: £1,253,117) (after a deficit for the year of £59,419 (2022: deficit of £219,767)) of which £1,050,055 are unrestricted (2022: £1,112,978). The deficit before investment revaluation gains was £102,476 (2022: deficit £94,050).
d. Principal funding
The principal sources of revenue during 2023 were: membership and magazine subscriptions £71,976 (2022: £71,979), grants and donations £6,150 (2022: £6,358), investment income £55,600 (2022: £55,076) magazine and other sales £11,227 (2022: £13,903). Legacies £5,000 (2022: Legacies £5,000). The Association realised £100,000 from the sale of investments during the year (Sale of investments in 2022: £50,000). These have been used to support production of New Humanist and services to members.
Structure, governance and management
a. Governing Document
The organisation is a Charitable Company Limited by Guarantee, incorporated on 1 December 2000 and registered as a charity on 18 March 2003. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. The Memorandum and Articles were revised by special resolution on 2 December 2019.
b. Recruitment and Appointment of the Board of Directors/Trustees
The management of the charitable company is the responsibility of the trustees who are elected and co opted under the terms of the Memorandum of Association.
One third of the trustees shall retire by rotation. Unless otherwise determined by the Charity in general meeting, the term of office of a trustee shall continue until he retires or is removed in accordance with the relevant provisions of the Articles. The appointment of trustees is in accordance with the provisions of the company’s Articles of Association and each individual’s term in office is restricted to a maximum of 6 years, unless approved by the Annual General Meeting (AGM) in exceptional circumstances.
3
The Rationalist Association
Report of the Trustees (including the Directors’ Report) for year ended 31 December 2023
c. Organisational structure and decision making policies
The Charity is governed by its trustees, who are also the directors and meet regularly to manage its affairs. During the year ended 31 December 2023 the charity engaged two staff, making up a maximum of 0.4 full-time equivalent, who supported the charitable activities, financial arrangements and day-to-day administration. This team is supported and assisted by two part-time editorial consultants in producing the New Humanist magazine. Day-to-day management is delegated to the accountant, memberships and subscriptions manager and the editorial team. The trustees make the major decisions regarding the funds of the charity, while the staff and consultants have authority to spend in line with the approved budget. The trustees approve the purchase or sale of major property assets, new projects and other decisions with major funding implications.
d. Financial risk management
The Board of Directors has conducted a review of the major risks to which the charity is exposed. Appropriate systems or procedures are established to mitigate the risks the charity faces, including insurance arrangements (which includes directors’ and officers’ liability insurance).
The directors do not envisage any significant external risks to funding which will not be met by legacies, donations and reserves. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures have been put in place to ensure the compliance with health and safety of staff, consultants, trustees, volunteers, and visitors.
Following this review the Trustees are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Positive and negative influences on the year and future plans
The charity’s finances have been greatly helped by the significant legacy recognised 2018. There were no positive or negative influences of note during 2023 and the charity saw its performance and its investments stabilise.
Plans for future periods
Our objective in 2024 is to continue to extend the reputation and audience of New Humanist, in print and online. To broaden the services offered by the Association and enable more interactivity with, and between, its members and followers., the charity plans to update its website and use digital technology in order to deliver more services online and digitally.
In addition, the trustees will undertake a strategic review which will provide the charity with a clear line of direction.
Fundraising Standards Information
RA’s fundraising activities are currently based on promoting subscriptions to the New Humanist magazine and membership of the RA. In addition, we have been in receipt of legacies.
Presently, income generating work is carried out by our Subscriptions and Membership manager and promoted through our website and social media activities. Our Deputy Editor works alongside our Subscriptions and Membership manager and with a following of 33K on Twitter and 16K on Facebook, we have a wide reach.
The Association complies with the Fundraising Code of Practice regulations that came into effect in October 2019 and conducts its fundraising efforts in line with the NCVO Trusted Charity quality mark standards. There were no reported incidents of regulation breach or complaints made about any of our fundraisers.
In line with our GDPR and safeguarding policies, we send newsletters only to subscribers and members and provide an optin consent button. An unsubscribe button is available on every mailing to allow for easy and instant termination of messages at the recipient’s request.
We have not engaged in any social media-based crowd funding campaigns in the year 2023. Donations are received from subscribers and members online through our website.
Funds held as Custodian Trustee on behalf of others
The charity does not receive or hold funds for the benefit of others.
Reporting accountants and independent examiners
Calculus Assurance Services were appointed as the charitable company’s reporting accountants and independent examiners at the 2023 AGM and have expressed their willingness to continue in that capacity.
4
The Rationalist Association
Report of the Trustees (including the Directors’ Report) for year ended 31 December 2023
Statement of trustees/directors’ responsibilities
Company and 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 and of the surplus or deficit of the charity for that period. In preparing those financial statements, the trustees have:
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selected suitable accounting policies and then applied them consistently;
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[made judgements and estimates that are reasonable and prudent;]
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[stated whether applicable accounting standards have been followed, subject to any material departures disclosed] and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation
The trustees have overall responsibility for ensuring that the charity has appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which 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.
Compliance with laws and regulations
The Trustees confirm that the charity has complied with all legal and regulatory requirements for charitable companies registered under the Companies Act 2006 and the Charities Act 2011.
Small Companies Exemption
The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.
Approved for issue by order of the members of the board of Trustees on: 29 August 2024 and signed on their behalf by:
Clive Coen
Clive Coen (Aug 29, 2024 12:34 GMT+1) Clive Coen Chair of the Trustees
5
The Rationalist Association
Independent Examiner’s report to the Trustees on the unaudited accounts of The Rationalist Association
I report to the charity trustees on my examination of the accounts of the company for year ended 31 December 2023 set out on pages 7 to 23.
Responsibilities and basis of report
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). As the charity’s trustees you consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the 2011 Act.
In carrying out my examination it is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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state whether particular matters have come to my attention.
Independent Examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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.
J P Lambden FCA, CTA Calculus Assurance Services
5 Priory Road Loughton Essex IG10 1AF
29/08/24
Date:
6
The Rationalist Association
Statement of Financial Activities (including summary Income and Expenditure account) For the year ended 31 December 2023
| Notes Income from Incoming resources from generated funds: Voluntary income 2 Government grants 3 Activities for generating funds: Investment income 4 Incoming resources from charitable activities: Furtherance of charitable objects 5 Sundry income 6 Other incoming resources Total Income Expenditure on Charitable activities Other activities for raising funds Governance costs Total expenditure 7 Net gains / (losses) on investment sales Net gains / (losses) on investments 12 Net income/(expenditure) Transfer between funds Other recognised gains / (losses) Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 19 |
Restricted funds £ Unrestricted funds £ - 6,150 - 748 5,381 50,219 - 83,203 - - 5,381 140,320 - 240,503 - 180 - - - 240,683 - 1,180 (1,877) 36,260 3,504 (62,923) - - - - 3,504 (62,923) 140,139 1,112,978 143,643 1,050,055 |
Total 2023 £ 6,150 748 55,600 83,203 - 145,701 240,503 180 240,683 1,180 34,383 (59,419) (59,419) 1,253,117 1,193,698 |
Total 2022 £ 6,358 2,037 55,076 85,881 - 149,352 238,980 180 - 239,160 (6,935) (123,024) (219,767) - - (219,767) 1,472,884 1,253,117 |
|---|---|---|---|
All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.
7
The Rationalist Association Summary Income and Expenditure account For the year ended 31 December 2023
| Notes Income Donations and gifts 2 Grants 3 Other income from charitable activities 5 Sundry income 6 Charitable expenditure Costs of generating funds 7 Costs of activities in furtherance of charity’s objects 7 Depreciation and impairment of fixed assets 7 / 8 Governance costs 7 Operating surplus / (deficit) for the year Investment income 4 Realised (loss)/gain on sale of investments Surplus/(deficit) for the year |
2023 £ 2022 £ 6,150 6,358 748 2,037 83,203 85,881 - - 90,101 94,276 180 180 228,674 232,668 1,593 1,592 10,236 4,720 240,683 239,160 (150,582) (144,884) 55,600 55,076 (7,494) (4,242) (102,476) (94,050) |
|---|---|
All activities relate to continuing operations.
8
The Rationalist Association
Company No: 04118489
Balance Sheet As at 31 December 2023
| Notes Fixed assets Investments 12 Tangible assets 13 Current assets Stock 14 Debtors 15 Investments Short term deposits Cash at bank and in hand Creditors:amounts falling due within one year 16 Net current assets Net assets Funds Unrestricted funds Restricted funds Total funds 19 |
2023 £ 2022 £ 1,168,328 1,232,895 - 1,593 1,168,328 1,234,488 2,000 2,000 30,917 31,774 - - - - 54,554 46,546 87,471 80,320 (62,101) (61,691) 25,370 18,629 1,193,698 1,253,117 1,050,055 1,112,978 143,643 140,139 1,193,698 1,253,117 |
|---|---|
The directors are satisfied that the company was entitled to exemption under section 477 of the Companies Act 2006 and that members have not required an audit in accordance with section 476.
The directors acknowledge their responsibilities for:
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i. ensuring that the company keeps accounting records which comply with section 386; and
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ii. preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 296 and which otherwise comply with the requirements of this Act relating to the accounts, so far as applicable to the company.
The financial statements have been prepared in accordance with the provisions of the Companies Act 2006 applicable to companies’ subject to the small companies’ regime and in accordance with Financial Reporting Standard 102 Section 1A.
The financial statements on pages 7 to 23 were approved by the Trustees on 29 August 2024 and signed on their behalf by:
Clive Coen
Clive Coen (Aug 29, 2024 12:34 GMT+1)
.................................... Clive Coen
....................................
9
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
1. Accounting policies
(a)
Basis of preparation
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) published in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.
The charity has availed itself of Paragraph 3 (3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charity’s activities, and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
(b) Company status
The charity is a private company limited by guarantee, incorporated in England and Wales and registered with the Charity Commission in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the legal and administrative information on page 1. The nature of the charity’s operations and principal activities are set out in the Report of the Trustees under “Objectives and activities”.
(c)
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. These funds are held to finance both working capital and capital investment.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income and gains are allocated to the appropriate fund.
(d)
Income recognition
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income, after any performance conditions have been met, and the amount can be quantified with reasonable accuracy and it is probable that the income will be received. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
The charity receives government grants in respect of the Employment Allowance. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.
10
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
1. Accounting policies (continued)
(d) Income recognition (continued)
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
Where practicable, gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified, and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers in line with the SORP (FRS 102).
(e)
Deferred income
In accordance with the SORP (FRS 102), grants and donations received in advance and specified by the donor as relating to specific accounting periods or alternatively which are subject to conditions which are still to be met are deferred on an accruals basis to the period to which they relate. Such deferrals are shown in the notes to the accounts and the sums involved are shown as creditors in the accounts.
(f)
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
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Costs of raising funds includes staff costs and goods and services specifically attributable to the activity;
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Expenditure on charitable activities includes both direct and support costs; and
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Other expenditure represents those items not falling into the categories above.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
(g)
Support costs allocation
Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources. Premises overheads have been allocated on a floor area basis and other overheads have been allocated on the basis of the head count.
Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
Support costs are those that assist the work of the charity but do not directly represent charitable activities. They are costs incurred directly in support of expenditure on the objects of the charity and include project management carried out centrally. Management and administration costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
(h) Tangible fixed assets and depreciation
Tangible fixed assets costing more than £300 are capitalised and included at cost including any incidental expenses of acquisition or making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows:
Office equipment, Over 3 to 5 years Furniture, fixtures and fittings Over 3 to 5 years Other fixed assets Over 3 to 5 years
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The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
1. Accounting policies (continued)
(i)
Investments
Investments are stated at market value at the balance sheet date, where this can be determined with reasonable accuracy, otherwise investments are stated at cost less impairment where there is evidence that the value has been impaired. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year.
(j)
Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
(k)
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
(l)
Cash and cash equivalents
Cash represents cash in hand plus bank balances immediately available to the charity. Cash equivalents are bank balances held on short term deposit available to the charity at up to 3 months’ notice.
(m)
Pension costs
The company operates a defined contribution scheme for the benefit of its employees. The costs of contributions are written off against profits in the year they are payable.
(n)
Finance and operating leases
Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred. Assets purchased under finance lease are capitalised as fixed assets and depreciated over the shorter of the lease term and the expected useful economic life of the asset. Obligations under such agreements are included in creditors. The difference between the capitalised cost and the total obligation under the lease represents the finance charges. Finance charges are written-off to the SOFA over the period of the lease so as to produce a constant periodic rate of charge.
(o)
Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
(p)
Going concern
In the medium term the charity is dependent on continuing donations and legacies from members and supporters, as a consequence, the going concern basis is also dependent on these donations and legacies continuing. There is no indication that they will be discontinued in the foreseeable future.
(q) Financial Instruments
Financial instruments such as loans, accounts payables, accounts receivables and cash are classified as either basic or complex. All financial instruments are initially measured at their fair values at the transaction date. Subsequently all basic instruments are measured at amortised cost and complex instruments are measured at a fair value through the statement of financial activities (comprehensive income statement).
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The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
1. Accounting policies (continued)
(r) Judgements and key sources of estimation uncertainty
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements.
The key assumptions concerning the future and at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
Tangible fixed assets: tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives factors such as technological innovation, product life cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Other key sources of estimation uncertainty and assumptions:
Allocation of administration costs: a proportion of expenditure is either not directly attributable to specific projects or related to the central administration of the charity. In determining how to allocate these costs the trustees have considered the level of activities in each project, use of facilities and administrative support.
13
The Rationalist Association
Notes forming part of the financial statements for the year ended 31 December 2023
| 2. | Donations and gifts | Restricted | Unrestrict | Total funds | Restricted | Unrestrict | Total funds |
|---|---|---|---|---|---|---|---|
| funds | ed funds | 2023 | funds | ed funds | 2022 | ||
| £ | £ | £ | £ | £ | £ | ||
| Donations | - | 1,150 | 1,150 | - | 1,358 | 1,358 | |
| Legacies | - | 5,000 | 5,000 | - | 5,000 | 5,000 | |
| Gift Aid tax refund | - | - | - | - | - | - | |
| - | 6,150 | 6,150 | - | 6,358 | 6,358 | ||
| 3. | Government grants | ||||||
| £ | £ | £ | £ | £ | £ | ||
| Employment Allowance | - | 748 | 748 | - | 911 | 911 | |
| Covid relief grant | - | - | - | - | 1,126 | 1,126 | |
| - | 748 | 748 | - | 2,037 | 2,037 | ||
| 4. | Investment income | ||||||
| £ | £ | £ | £ | £ | £ | ||
| Dividends | 5,381 | 50,219 | 55,600 | 3,264 | 51,812 | 55,076 | |
| Interest receivable | - | - | - | - | - | - | |
| 5,381 | 50,219 | 55,600 | 3,264 | 51,812 | 55,076 | ||
| 5. | Other income from charitable activities | ||||||
| £ | £ | £ | £ | £ | £ | ||
| Production of New Humanist Magazine | - | 74,010 | 74,010 | - | 76,330 | 76,330 | |
| Membership services | - | 9,193 | 9,193 | - | 9,551 | 9,551 | |
| - | 83,203 | 83,203 | - | 85,881 | 85,881 | ||
| 6. | Sundry income | ||||||
| £ | £ | £ | £ | £ | £ | ||
| Sundry income | - | - | - | - | - | - | |
| - | - | - | - | - | - |
14
The Rationalist Association
| Notes forming part of the financial statements For the year ended 31 December 2023 7. Total resources Expended Staff costs £ Other direct costs £ Other allocated support costs £ Total 2023 £ Staff costs £ Other direct costs £ Other allocated support costs £ Fundraising costs - 180 - 180 - 180 - General fund Grants - - - - - - - New Humanist magazine production 53,352 90,364 22,137 165,853 61,021 85,132 23,243 Membership services 31,050 - - 31,050 29,999 - - Project Digitise - - - - - - - Legal costs - - - - - - - Administration and support costs 17,179 38,322 (22,137) 33,364 20,129 37,979 (23,243) Other (support costs) - - - - - - - Governance - 10,236 - 10,236 - 4,720 - 101,581 139,102 - 240,683 111,149 128,011 - £ Restricted (Charitable activities) - Unrestricted: Fund raising 180 Charitable activities 230,267 Governance 10,236 240,683 Total expenditure 240,683 |
Total 2022 £ 180 - 169,396 29,999 - - 34,865 - 4,720 |
|---|---|
| 239,160 |
|
| £ - |
|
| 180 234,260 4,720 |
|
| 239,160 | |
| 239,160 |
15
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
8. Total resources expended (continued)
| a) Other direct costs include: Reporting accountants’ remuneration (excl. VAT) Independent examination Accountancy, taxation and other services Operating lease rentals – equipment Operating lease rentals – land and buildings Depreciation – on owned assets Profit on disposal b) Support costs: Premises Depreciation Office running costs Accountancy and bank charges Sundry c) Grants: Institutions £ Individuals £ Grants paid to projects for the benefit of individuals - - - - Prior year Institutions £ Individuals £ Grants paid to projects for the benefit of individuals - - - - |
2023 £ 2,540 1,280 1,593 - 23,603 1,593 11,303 1,665 158 38,322 2023 £ - - 2022 £ - - |
2022 £ 2,325 1,175 187 15,492 1,592 - 21,617 1,592 13,113 1,657 - |
|
|---|---|---|---|
| 37,979 |
|||
| 2022 £ - |
|||
| - | |||
| 2021 £ - |
|||
| - |
Grants made to individuals are for relief of poverty or to provide training.
9a. Trustees and key management personnel remuneration
The trustees neither received nor waived any emoluments for services as trustees during the year (2022: £nil)
Key management personnel are defined as the chief executive and the chief operating officer. The interim CEO (parttime consultant) received remuneration of £Nil (2022: £Nil).
| Key management personnel remuneration Wages and salaries Employer’s National Insurance Pension costs (defined contribution plan) Consultants and contractors |
2023 £ 2022 £ 14,515 15,288 748 911 1,451 1,529 84,834 93,019 101,548 110,747 |
|---|---|
16
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
9b. Trustee expenses
| Out of pocket expenses were reimbursed to trustees as follows: Travel Meeting costs |
2023 Number - - - |
2022 Number - - - |
2023 £ 2022 £ - - - - - - |
|---|---|---|---|
There were no other transactions with the trustees during the period.
9c. Related Party Transactions
The trustees and staff complete an annual declaration of interests form to identify potential related parties. The trustee meeting agenda includes an opening item to declare interests in any matters being discussed. Based on these systems the charity has not identified any related party transactions during the year.
17
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
| 10. Staff costs Wages and salaries Employer’s National Insurance Pension costs (defined contribution plan) Self-employed workers and consultants Volunteers’ expenses Recruitment, training and staff welfare Travel Expenses |
New Human- ist Members hip £ £ - - - - - - 53,352 31,050 - - - - - - 53,352 31,050 |
General £ 14,515 748 1,451 432 33 - 17,179 |
2023 £ 14,515 748 1,451 84,834 - 33 - 101,581 |
New Human- ist Members hip £ £ - - - - - - 61,021 29,999 - - - - - - 61,021 29,999 |
General 2022 £ £ 15,288 15,288 911 911 1,529 1,529 2,000 93,020 - - 401 401 - - 20,129 111,149 |
|---|---|---|---|---|---|
There were no employees whose emoluments as defined for taxation purposes amounted to over £60,000 in either year.
The average number of employees, calculated on a full-time equivalent basis analysed by function was:
| Charitable activities Management and administrative of the charity |
2023 Number 0.2 0.2 0.4 |
2022 Number 0.2 0.2 0.4 |
|---|---|---|
11. Pension costs
The charity operates a contributory pension scheme. It is a defined contribution scheme and contributions are charged in the statement of financial activities as they accrue. The charge for the year was £1,451 (2022: £1,529).
18
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
12. Investments
| 2. Investments | |||||
|---|---|---|---|---|---|
| Current year | Listed | Listed | Total | ||
| investments | investments | ||||
| Cost | Valuation | ||||
| £ | £ | £ | |||
| Cost: | |||||
| At 1 January 2023 | 1,112,028 | 1,232,895 | 1,232,895 | ||
| Adjustment | - | (130) | (130) | ||
| Additions | - | - | - | ||
| Disposals | (107,494) | (98,820) | (98,820) | ||
| __ | __ | __ | |||
| At 31 December 2023 | 1,004,534 | 1,133,945 | 1,133,945 | ||
| Revaluation adjustment | 34,383 | 34,383 | |||
| __ | __ | __ | |||
| Net book value at 31 December 2023 | 1,004,534 | 1,168,328 | 1,168,328 | ||
| __ | __ | __ | |||
| Prior year | Listed | Listed | Total | ||
| investments | investments | ||||
| Cost | Valuation | ||||
| £ | £ | £ | |||
| Cost: | |||||
| At 1 January 2022 | 1,166,270 | 1,412,854 | 1,412,854 | ||
| Additions | - | - | - | ||
| Disposals | (54,242) | (56,935) | (56,935) | ||
| __ | __ | __ | |||
| At 31 December 2022 | 1,112,028 | 1,355,919 | 1,355,919 | ||
| Revaluation adjustment | - | (123,024) | (123,024) | ||
| __ | __ | __ | |||
| Net book value at 31 December 2022 | 1,112,028 | 1,232,895 | 1,232,895 | ||
| __ | __ | __ | |||
| 13. Tangible fixed assets | Fixtures and | Office | Other fixed | Total | |
| fittings | equipment | assets | |||
| £ | £ | £ | £ | ||
| Cost | |||||
| At 1 January 2023 | - | 6,371 | - | 6,371 | |
| Additions | - | - | - | - | |
| Disposals | - |
- |
- | - | |
| At 31 December 2023 | - |
6,371 |
- | 6,371 | |
| Depreciation | |||||
| At 1 January 2023 | - | 4,778 | - | 4,778 | |
| Charge for year | - | 1,593 | - | 1,593 | |
| Disposals | |||||
| At 31 December 2023 | - | 6,371 | - | 6,371 | |
| Net book value | |||||
| At 31 December 2023 | - |
- |
- | - | |
| At 1 January 2023 | - |
1,593 |
- | 1,593 |
19
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
| 14. Stock Finished goods and goods for resale Stock represents books and back copies of New Humanist 15. Debtors Due after more than one year: Other debtors (rent deposit) Due within one year: Other debtors Prepayments and other accrued income 16. Creditors: amounts falling due within one year Trade creditors Taxation and social security costs Pension contributions Other creditors Accrued expenses Deferred income (Note 17) 17. Deferred income Magazine subscriptions Membership subscriptions Donations £ £ £ Balance brought forward 27,857 4,727 - Released to statement of financial activities in year (27,857) (4,727) - Deferred during year 26,134 4,017 - __ __ __ Balance carried forward 26,134 4,017 - __ __ __ |
2023 £ 2022 £ 2,000 2,000 2023 £ 2022 £ 1,884 1,884 5,835 5,769 23,198 24,121 29,033 29,890 30,917 31,774 2023 £ 2022 £ 6,530 1,907 311 290 14,887 13,929 472 472 9,750 12,509 30,151 32,584 62,101 61,691 2023 Total 2022 Total £ £ 32,584 32,214 (32,584) (32,214) 30,151 32,584 __ __ 30,151 32,584 |
|
|---|---|---|
Income has been deferred as it was received in advance of the period to which it relates.
| 2023 18. Financial commitments Land & Buildings £ Operating leases Falling due: Less than one year 19,052 One to two years Two to five years 19,052 |
2022 Other Land & Buildings £ £ - 19,052 - 4,763 - - 23,815 |
Other £ - - - - |
|---|---|---|
20
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
| 19a. Statement of funds Current year: 1 January 2023 £ General reserves: General fund 924,319 Revaluation reserve 188,659 New Humanist - Total unrestricted funds 1,112,978 Restricted funds: Relief fund 50,000 Project Digitise 60,279 Revaluation reserve 29,860 Total restricted funds 140,139 Total funds 1,253,117 |
Income £ Expenditure £ 66,310 74,830 - 74,010 165,853 140,320 240,683 - - - - 5,381 - 5,381 - 145,701 240,683 |
Investment gains £ 1,180 36,260 37,440 - - (1,877) (1,877) 35,563 |
Transfers £ 31 December 2023 £ (84,349) 832,630 (7,494) 217,425 91,843 - - 1,050,055 - 50,000 - 60,279 - 33,364 - 143,643 - 1,193,698 |
|
|---|---|---|---|---|
The general reserves represent the free funds of the charity which are not designated for particular purposes.
The restricted fund represents monies which were given for a particular purpose and these will be fully utilised in delivering those purposes.
| 19b. Statement of funds Prior year 1 January 2022 £ General reserves: General fund 1,021,633 Revaluation reserve 310,955 New Humanist - 1,332,588 Total unrestricted funds Restricted funds: Relief fund 50,000 Project Digitise 60,279 Revaluation reserve 30,017 140,296 Total restricted funds Total funds 1,472,884 |
Income £ Expenditure £ 69,758 69,764 - - 76,330 169,396 146,088 239,160 - - - - 3,264 - 3,264 - 149,352 239,160 |
Investment gains £ (6,935) (119,603) (126,538) - - (3,421) (3,421) (129,959) |
Transfers £ 31 December 2022 £ (90,373) 924,319 (2,693) 188,659 93,066 - - 1,112,978 - 50,000 - 60,279 29,860 - 140,139 - 1,253,117 |
|
|---|---|---|---|---|
21
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
| 20. Analysis of net assets between funds | Restricted | Designated | General | Total |
|---|---|---|---|---|
| Funds | funds | funds | 2023 | |
| Current year: | £ | £ | £ | £ |
| Fund balances at 31 December are represented | ||||
| by: | ||||
| Investments | 77,983 | - | 1,090,345 | 1,168,328 |
| Tangible fixed assets | - | - | - | - |
| Current assets | 65,660 | - | 21,811 | 87,471 |
| Current liabilities | - | - | (62,101) | (62,101) |
| Long term liabilities | - | - | - | - |
| Total net assets | 143,643 | - | 1,050,055 | 1,193,698 |
| 2022 | ||||
| Prior year: | £ | £ | £ | £ |
| Fund balances at 31 December are represented | ||||
| by: | ||||
| Investments | 79,860 | - | 1,153,035 | 1,232,895 |
| Tangible fixed assets | - | - | 1,593 | 1,593 |
| Current assets | 60,279 | - | 20,041 | 80,320 |
| Current liabilities | - | - | (61,691) | (61,691) |
| Long term liabilities | - | - | - | - |
| Total net assets | 140,139 | - | 1,112,978 | 1,253,117 |
22
The Rationalist Association
Notes forming part of the financial statements For the year ended 31 December 2023
21. Ultimate controlling party
The charitable company has no share capital and is therefore controlled by the directors who are appointed by the members in general meeting. Each member of the company commits to contribute if the charity is wound up an amount of £10.
22. Donated goods, facilities and services
The charity does not recognise volunteer time in the accounts as, apart from the trustees, most volunteers are also beneficiaries of the charity.
23. Financial instruments
| The charity’s financial instruments may be analysed as follows: Financial Assets Financial Assets Measured at Amortised Cost Trade Debtors Other Debtors Cash and Cash Equivalents Total Financial Assets Financial Liabilities Financial Liabilities Measured at Amortised Cost Trade Creditors Other Creditors Bank loans and overdrafts payable within one year Bank loans and overdrafts payable after one year Total Financial Liabilities |
2023 £ - 30,917 54,554 85,471 6,530 55,571 - - 62,101 |
2022 £ - 31,774 46,546 |
|---|---|---|
| 78,320 | ||
| 1,907 59,784 - - 61,691 |
23
Rationalist Association Statutory Accounts
(2023) final
Final Audit Report
2024-08-29
Created: 2024-08-29 By: James Lambden (james.lambden@hotmail.co.uk) Status: Signed Transaction ID: CBJCHBCAABAAlBhHNRkYnRsppWMisikQ1jgaqrLHx_ds
"Rationalist Association Statutory Accounts (2023) final" History
- Document created by James Lambden (james.lambden@hotmail.co.uk)
2024-08-29 - 10:48:05 AM GMT- IP address: 82.71.43.181
Document emailed to Clive Coen (clive.coen@kcl.ac.uk) for signature
2024-08-29 - 10:48:11 AM GMT
Document emailed to James Lambden (james.lambden@calculusaccountants.com) for signature 2024-08-29 - 10:48:11 AM GMT
- Email viewed by Clive Coen (clive.coen@kcl.ac.uk)
2024-08-29 - 11:34:29 AM GMT- IP address: 104.47.30.126
- Document e-signed by Clive Coen (clive.coen@kcl.ac.uk)
Signature Date: 2024-08-29 - 11:34:52 AM GMT - Time Source: server- IP address: 86.141.188.161
- Email viewed by James Lambden (james.lambden@calculusaccountants.com)
2024-08-29 - 12:00:18 PM GMT- IP address: 82.71.43.181
Document e-signed by James Lambden (james.lambden@calculusaccountants.com)
Signature Date: 2024-08-29 - 12:01:15 PM GMT - Time Source: server- IP address: 82.71.43.181
Agreement completed.
2024-08-29 - 12:01:15 PM GMT