2022-12-31-accounts

christians against poverty Amid a cost of living crisis, see belief in action Annual report and accounts 2022

'I've gone from wanting to die to really wanting to live., Amanda Amanda became overwhelmed by debt during the cost of Living crisis, and couldn't see a way out. Support she received from CAP changed everything. Amanda came to faith in Jesus and is now on top of finances.

Contents Belief in action, on ￿ page Hear from Roger Hattam. Chair of Trustees Hear from Paula Stringer, UK Chief Executive Everything you need to know about CAP io Amanda's story 13 Support in action 14 Strategic report 14 Aim l." Relieving poverty- how did we do? 18 Aim 2.. Providing financial education- how did we do? 20 Aim 3.. Advancing Christianity- how did we do? 22 Aim 4.. Raising awareness of poverty- how did we do? 24 Aim 5.. Collaborating with others- how did we do? 26 Three-year strategy update 28 Financial review 32 Trustees, report 39 Auditor's report 42 Financial statements 45 Notes to the financial statements Christians Ag?Insi PLwerty Company no.. 4655175 Forihe vearended 3L De￿Mber 2022

Introduciion from Roger Hattam Trustee Dirertor- Chairman Poverty We thought 2020, the first year of the COVID-19 pandemic, was challenging- but 2022 was on another level entirely. we've driven the Issue onto the media agenda and into public consciousness. and the Government has listened and responded to some degree. Going forward, we must keep calling for better and earlier help which addre5se5 the root causes of poverty. What's been really tough in 2022 is seeing the impact of the cost of living on our own ability to grow. CAP supporters have been incredibly faithful, and churches especially have persevered with us despite pressure5 on their own income. But still, we wish we could achieve more for people in poverty in the UK. Poverty became a real threat, and a living reality. for a much larger proportion of people. Demand for debt support soared, with a dramatic increase in first enquiries to CAP. Meanwhile. we saw an urgent need to add our voice to the coalition of UK poverty charities speaking up for change. Looking ahead. we aim to transform our operating model to meet growing demand, which means digitising more services so they can be scaled up easily. That remains a key part of our long-term plan. And we'll do it in partnership with churches. which serve our commLJnities best when they do so in word and deed. meeting the call of the gospel to care for the most vulnerable. I truly believe our campaigning work. calling on Government to support the most vulnerable people. has allayed some of the potentially catastrophic impact of the cost of living crisis. Together with others, 4 Christians Against Poverty Company no. 4655L75 1 Fgrthe ¥earended 31 De￿Mber 2022

Introduction from Roger Hattam Trustee Director- Chairman action I want to thank Simon Gates. a CAP Trustee for six years. who stepped down in 2022 due to work relocation. Simon oversaw elements of fi.nance and risk management for CAP, and wa5 instrumental in masterminding our head office move to a new building. I'm grateful for the time and energy he has given. But CAP won'L The impact of 2022 will be with manv people for years to come- and we too will stay the course. Thi5 15 God s mi55ion. so we will keep putting our belief into action, every day. We'll walk with people in debt. share our faith. and support people who come to LJS for as long as they need. Thank you for being part of it. It is also my pleasure to announce that Lisa Pearce will be joining CAP as Interim Chief Executive in july 2023, albeit sad thatthi5 will follow the departure of our current Chief Executive, Paula Stringer. as she moves to a new role at the BBC. On behalf of all the Trustees, l am gratefLJI for everything Paula has brought to CAP over the past five vears. and l am looking forward to welcoming Lisa Lisa's knowledge of CAP, combined with her experience in Christian charity leadership and business development, will provide continuity as well a5 a strong focus. Roger Hattam Trustee Director- Chairman 'The Spirit of the Sovereign Lord is on me, because the Lord has anointed me to proclaim good news to the poor., Isaiah 61.1 As 2023 unfolds. inevitably the cost of living crisis will become old news. Inflation will ease. Energy costs will stabilise. The media will move on. Christians Ag?Insi PLwerty Company no.. 4655175 Forihe vearended 3L De￿Mber 2022

Introduciion from PauLa Stringer- UK Chief Executive Crisis 2022: the year the cost of living rocketed to levels not seen in a generation. Inflation hit a 40-year high. Prices of energy and other goods soared, partly as a result of the war in Ukraine. And more and more people found themselves in a poverty crisis, overwhelmed with fear and worry. But in the midst of it all. Christians Against Poverty made a difference. I want to thank every supporter, every church, every volunteer. staff member and friend of CAP who has turned belief into action. to transform people's lives this vear. We don't accept a society where poverty e¥ists- and together. driven by our faith. we fought for change. My name is Paula Stringer, and I'm the UK Chief Executive of CAP. I'm pleased to bring you our annual report and accoLJnts for 2022- in which we lay OLJt the impact of this amazing charity amid enormous need and significant challenges. You 11 see in the following pages that thousands of people have been supported by CAP'S accredited debt advice service and specialist tools. I'm proLJd of the impact of this work. which gives people dignity and hope. We praise God that almost 2.000 people became debt free in 20221 Christians Against Poverty Company no. 4655L75 1 Fgrthe ¥earended 31 De￿Mber 2022

Introduciion from PauLa Stringer- UK Chief Executive hope You'll also celebrate with me, I hope. to know that at least 240 people responded to jesus as a result of CAP'S work. Along with our staff and volunteers, I believe Christ can mend broken live5 and restore people 5 hope SO it fills me with joy to see God at work through our amazing team. team conducted a review which led to some tough decisions. Early In 2023. we announced the need to make some significant budgetary savings across the charity, including redundancies. Through collective consultation with our staff, we have worked to mitigate the impart of redundancies as far as possible. Right now. we're working closely with church partners and staff. and remain totallv committed to protecting front-facing debt advice roles. Speaking of the team. there was a milestone moment for all of us in 2022 when we moved into our new head office atlubilee House. Bradford. This modern. well- equipped. fully-accessible building not only gives staff a much more 5LJitable working environment. it also saves an estimated £SI.000 a year In running costs. When I look back. I see how God has been faithful to CAP- and the people we serve. So we go forward with trust and hope. BecaLise. together. we can drive change for people in desperate need. Together. we will see transformed lives. thriving churches and an end to UK poverty. But amid all the good news, there's no denying that 2022 wa5 exceptionally challenging for CAP. The c05t of living crisis not only increased demand foi our services. it hit our own finances too. Like many charities. we saw a drop in donations and a fall in fundraising income. In response, our leadership Paula Stringer UK Chief Executive Christians Ag?Insi PLwerty Company no.. 4655175 Forihe vearended 3L De￿Mber 2022

Trustees and Direciors, report What you IIUd to know ee about CAP Right now, people across the UK are experiencing a poverty crisis. They feel trapped, desolate and abandoned. We can't accept that. We won't tolerate a society where poverty exists. The trustees have given due consideration to the Charity Commission's guidance and believe CAP meets the public benefit requirements. Everything we do is framed by four charitable aims and objectives.. So we take action. We work with thriving churches and our broader network to transform people's lives. We influence policy to help create change. Through our accredited debt advice service and specialisttools. we equip, train and Inspire church teams in the UK'S four nations. 11 The relief of poverty for persons in the Untted Kingdom and elsewhere who are in conditions of need. hardship or distress by reason of their social andlor economic Circumstan￿$, by providing and promoting advice and other services. Our faith gives us hope. And our expert15e, together with determined. passionate people in the CAP commLJnity. drives holistic change for those in desperate need. 21 The advancement of education of the public in all matters relating to the management of their personal finances. So we walk alongside people who are struggling. Listen to their need5. Help them gather their bills. Fill their fridges. Awaken their confidence. And if anyone wants to explore a deeper relationship with the Christian faith. we actively encourage it. 31 The advancement of the Christian faith. 41 Raising awareness of debt, poverty and its causes in the UK and inspiring churches and individuals to partner with us. We do all this because, together, we can turn our belief into action- and end poverty for all. Read on to see how we delivered against these four aims in 2022. Christians Against Poverty Company no. 4655L75 1 Fgrthe ¥earended 31 De￿Mber 2022

Trustees and Directors, report CAP exists to: Relieve poverty in the UK Advance personal finance education Advance the Christian faith Raise awareness of debt. poverty and its causes in the UK Christians Ag?Insi PLwerty Company no.. 4655175 Forihe vearended 3L De￿Mber 2022

'A CAP Debt Advisor phoned to tell me I was debt free. I literally p danced around my living room!1

Amanda's story In her own words: Amanda's story 'Do you have a drawer in your house filled with bits and bobs? For me. that was where15tuffed the bi115. Dozens of them. unopened and unpaid. I was getting deeper into debt, but I had no idea how to get out. Alongside this, lane invited me to church. l used to believe in God but I lost a baby to cot death 26 year5 ago, and gave up on faith. Eut I realised I needed God. Now. I'm part of a Bible groLJP and God is in my life again. 'Debt destroys everything - your relationships. your mental health, your confidence. Believe me, I know. .1 can't put Into words properly how much it all means.. CAP saved my life. I have hope again. I've gone from wanting to die to really wanting to Live. 'My name is Amanda, and the help I got from CAP saved my life., 'It started when my MLJM was diagnosed with cancer. I stopped work to care for her- and the bills started to mount up. I wasn't spending on luxuries, It was just the cost of living. Council Tax, rent, my phone... my gas and electricity bi115 doubled. 'It became too much. I was sinking into depression. One day. early in january- it was cold and snowing- a bailiff knocked on the door demanding money. I took an overdose that night. l just couldn't see a way out. 'Debt does that to you. It creeps up and deva5tate5 VOLJr life. But at my darkest time. hope arrived. .1 reached out for help and lane. the local CAP Debt Coach. came to visit. She asked me to hand over the bi115 hidden in my drawer. 'Don t worry about any of IL" she said. "lust leave it with me." 'lane explained the only real option for me was to become Insolvent. which meant my debt would be written off completely. She helped me apply for a Debt Relief Order, one route to erasing the debt. and bit by bit the cloud began to lift. When a CAP Debt Advisor phoned to tell me I was debt free, I literally danced around my living room! Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 li

Generous support. life-changing work Support Individuals £9.6m164%1 Money in In 2022. donations. legacy gifts and other income totalled £14.96 million. which was lower than the previous year's totsl of £15.2 million. Thi5 wa5 mainly due to a drop in fundraising income. Churches £2.Im114%1 We are incredibly grateful to supporters who gave as generously as they could in 2022- especially because we know finances are tight for many household5. We also remember with deep gratitude all those who kindly left a gift to CAP in their will. Total income: £15.Om Government grants £1.4m19%1 Charitable Trusts £0.6m14%1 Fairshare & resoLJrtrs £OAm (3%1 Companies £0.6m14%1 Legacies £0.2m Il%} Trading artivities £O.Im l<l%l Money out We used our resour￿$ wisely and carefullyto have the greatest impactfor people in debt. Our expenditure for 2022 totalled £17.24 million Imore than £3 million higher than the previoLJS yearl. leaving us with a deficit of £2.28 million. Charitable activities £12.8m174%1 Support costs £2.8m116%1 TotaL expenditure: There werebNO reasons for our increased expenditure. FirsL we invested in CAP'5 debt service to help more people. to further empower clients, and provide an improved e¥perience for church partners. Secondly, we investsd In ourtech teams to advance systems which support client- facing technology. £17.2m Raising funds £1.5m19%1 Other £O.Im Il%) To enable this spending increase. we chose to invest some reserves which had grown from surplus income in previous years. Our reserves dropped to £5.85 million bythe end of 2022. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 13

Strategic report Aiml Relieving poverty inthe UK What did we do in 2022? Lifting the weight of debt Amid the worst cost of living crisis rn a generatron. calls to our free debt helpline increased by 20%. Our top priority is to help people OLrt of debt- so CAP was there to provide vital advice. Meanwhile, demand for emergency support soared. Our partner churches did 60% more food shop5 for clients in crisis. and provided double the number of energy tOP-LJPS to people struggling to afford to heat their homes. Other emergency support included phone top-ups and buying school uniforms. Almost 34% more people received debt advice In 2022 compared to the previous year, through services delivered by both our head office and frontline Staff. Part of the increase was due to low figures recorded in 2021, when we were easing out of the pandemic. But there's no doubt more people were driven to seek help in 2022 by the soaring cost of living In autumn 2022, we worked with another charity, Turn2us, to launch a new benefits calculator online. The tool helps people check if they are entitled to extra benefj'ts, and within three months it had been used bv more than 21.000 people. Figures show more than £6m in annual income was found- which was previously unclaimed. Around 2.000 people are estimated to be better off thanks to the calculator. lust under 2,000 people became debtfree- an increase of 3.5% on the year before- so more than 22.000 people have now become debtfree with help from CAP since 2010. CAP DEBT HELP CAP DEBT HELP 16,246 1,946 1,831 281 15 Number of people- adults and children CAP helped during the year people became debt free households UK Debt Centres received emergency Iby the end of support 20221 new Debt Centres opened in 2022 14 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

CAP provide5 Support and bursaries to help partner churches. but the number of UK Debt Centres fell by 6% in 2022. This was due to many churches focusing on rebuilding congregations. P05t-pandemic, rathei than starting new ministries. Rising energy bilLs were also a factor In closing some Debt Centres.

Strategic report HayLey's story: Life skills aith Hayley wa5 Struggling to get by on Universal Credit. So she joined a CAP Life SkilLs course at a local church- and it changed everything. Life SkilL5 session, someone prayed with me. And that made me think... Hayley became a Christian 'Half the people from the CAP Life Skills course turned up to my baptism, she smiled. 'Now, I'm hoping to get a job. Everyone is really proud of me and how much I ve changed. It's been a good thing. '1 started looking at whether I could get food cheaper. I started to budget more, I scrutinised my bills to see if I could cut them down, said Hayley. '8ut aL50, after every feel happier and more conf ident., 16 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Strategic report Tackling the causes of debt and poverty Poverty is complex and very rarely caused by one event or circumstance alone. There is also a dirert link between what cause5 debt and poverty and what holds people in that situation. CAP LIFE SKILLS CAP JOB CLUBS Two of the most common drivers of debt and poverty in the UK are persistent low Income and unemployment. We tackle both through.. 797 723 11 CAP lob Club5. Atthe5e friendly clubs. people can get practical help and gain the tools they need to find work. Clubs meet weekly and are run by trained volunteers. Attendees follow an eight-week course which gives them all the help they need people attended Life Skills groups people attended lobs Clubs 134 92 21 CAP Life Ski115. In these group5. people learn how to live well on a low income. We share practical monev- saving techniques, such as cooking on a budget. and help people develop the confidence and decision- making skills they need. Life Skills groups inthe UK CAPlob Clubs inthe UK 40 new Life Skills groups opened new lobs CILJbs opened in 2022 The number of UK Life SkilLs groups grew by 6% in 2022. as more churches made efforts to help people live well on a low income. We created fast-track training to quicklv set up churches to provide this vital support. The number of lob Club5 in the UK fell by 20% in 2022. Unemployment forecasts in 2021 caused a surge in churches launching clubs. But in 2022. changes In the jobs market, retiring lob Club Managers and problems recruiting volunteers saw an increase in the number of lob Clubs closing.

Strategic report Aim2 Providing financial education What did we do in 2022? We believe financial education is the key to unlock the end of UK poverty. That's why we champion and continually develop the CAP Money Courge, a free course which teaches people budgeting skills and a simple system to control their money. how they could save, and how to prioritise. In 2022, churches ran 44% more CAP Money Course5 compared to 2021, and we saw 3 47% increase in the nLJmber of people taking part. We also reviewed and refreshed the CAP Money Course in 2022. It's been fully overhauled, improved, and will be ready to go in late summer 2023. In just a few weeks. people learn a pracLical way of Sticking to a budget. by Seeing what they re Spending, 4,435 47% 1,136 500+ 163 482 people took part in a CAP Money Course more people completed a CAP Money Course compared CAP Money Courses in 2022 Money Coaches trained to provide relevant cost of living crisi5 guidance new CAP Money Courses opened in 2022 churches ran 3 CAP Monev Course to2021 18 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Strategic report Abi's story: No more fe&r 'My marriage had just ended and I was living by myself, working part-time. with three children. Before. my husband did all the Money management. But now I was in fear the whole time, worrying how to pay the mortgage and feed the family., That was Abi s situation before she joined a couple of friends at the local CAP Money Course. She couldn't believe the impact it had. 71r 'Everyone was non-iudgemental and helpful, I feltfree to talk about things. l used an online spreadsheet to think through budgeting for things like Christma5, holidays and car maintenance. I've never previously budgeted like that- but now I have little pockets of money ready. It's helped astronomically. I'm in control now., Through CAP. Abi learned how helpful certain apps can be in managing VOLJr money. opting to start using one herself. This helps her allocate funds to different pots. It means she not only has money for the essentials, she can also afford treats. .1 feel like I have saving5. $0 I can take time off work and take the children on holiday. I don't feel worried about Christmas. The children have pocket money, which they never had before. and thev can see l am much happier and more relax&d. It's changed so much in all our lives., 'It's changed so much in all our lives., Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 19

Strategic report Aim3 Advancing the Christian faith What did we do in 2022? At CAP, we are driven by our faith. It gives us hope for humanity and compassion for the people we meet. We actively encourage those we work with to explore deeper relationship with Christianity, if they want to, because it gives richer meaning and purpose to all our lives. drop-in cooking courses. a community garden, and outreach to young people. More than three-quarters of churches said they reached people they wouldn't normally connect with- and half said it grew their confidence to share faith. What's more. through all of CAP'S services over the course of the year. at least 243 people responded to Jesus- either taking a first step of faith or recomtnitting their live5 to jesus. (The actual figure is likely to be highei." these were only the responses reported back by OLJr teams). In 2022, we advanced Christianity through the Mustard Seed Mission Fund. We provide grants of up to £1,000 to CAP frontline workers and local churches, to help launch new initiatives around mission and evangelism. More than 20 churches received grants. and ran projects Including community meals. parent and toddler groups. 243 884 186 people lat least) responded to jesu5 volunteers took part in community outreach people were reached through projects supported by the Mustard Seed Mission Fund 20 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Strategic report Stuart's story: A garment of praise Stuart was baptlsed in 2022 after connecting with his local church because of support he re￿iVed from CAP. He is also debt free. and has put gambling. smoking and depression behind him. 'Before, I felt alone, but now I feel I czn fight whatever 15 Put in front of me., said Stuart. 'It'5 811 due to CAP- and God.. 'Since I've come to faith there is light at the end of the tunnel. I'm free in myself., Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 21

Strategic report Aim4 Raising awareness of poverty What did we do in 2022? When we share our knowledge and expertise. we can help £￿ate lasting change. That's why we speak out mobilise others to campaign, and use our platform to influence policy to bring an end to UK poverty. In 2022, in response to the tost of living crisis, we focused on six key areas. Reports Consultations. UK Parliament OLJr 2022 client report, On the edge, outlined trend5 Within our services. It contained shocking statistics.. more than a third of CAP clients had considered or attempted suicide as a way out of debt before seeking help. Our Lifelines to safety report looked t why people rely on credit in financial crises- and made recommendations to Improve people's h"nancial resilience. We took part in 21 consultations, iniluding reviewing personal insolvency arrangements in England and Wales. and amending the Debt Relief Order eligibility criteria in Northern Ireland. We engaged with decision- maker5 over support during the cost of living crisis. and the adequacy of social securitv benefits. We joined a new advisory group set up to tackle poverty in the UK. 22 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Strategic report Inquiry evidence Events Politics In Scotland. our team gave evidence to the Low Income nd Debt Problem5 Inquiry. For the first time, three CAP clients took part in an 'experts by experience. panel- marking a step forward in our work with people with lived experience. The inquiry led tts a report called Robbing Peter to Pay Paul. and recommendations are already being actioned. We held 3 reception in the House of Lords, hosted by Bishop of Durham the Rt Rev Paul Butler. to launch our refreshed vision among MPS. industry contacts, supporters and charity peers. We held fringe events at the Labour and Conservative party conferences to discu55 the impact of the cost of living crisis on debt and poverty. Campaigns in England We campaigned for more support for low income households. and sponsored a collaborative billboard campaign in Westminster and Manchester on the day Liz Truss took office at Number LO. More than 2.000 supporters wrote to the Prime Minister on the issue. Campaigns in Scotland We joined other org3ni5ations to campaign for the Scottish Child Payment. a Social Security benefit available for all children Ljnder six. to be doubled- from £ 10 to £20 per week. This happened in April 2022. and it was Increased again in November to £25 per week per child. Resources We published a children's book and created Bibl study resources to help people understand poverty. and strengthened our call for people to stand with those in debt and poverty by campaigning and speaking out. 5,713 people wrote to a decision-maker such as their MP to call for an end to UK poverty Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 23

Strategic report Aim5 Collaborating with others What did we do in 2022? Collaboration is at the heart of how we do things. CAP churthes, supporters. voluntsers and friends are vital members of the tsam. By working with a thriving church community and our broader netsvorK we see lives transformed. Church partners Appeals, grants and trusts We're grateful for the 482 churches which ran a CAP Money Course, more than 250 churches involved in CAP Debt Centres. and others which ran lob Clubs or Life Skills groups. CAP'S vital work simply wouldn't happen without churches. Supporters donated generously to CAP appeaLs during 2022. giving £458.738 over the year- well above our target of £325.000. From trusts. we received £605.293 in grants. In addition, CAP benefited from multi-year support from the Souter Foundation. Jerusalem Trust and 8ram311 Foundation. Church talks Fundraising partnerships 50 CAP speakers came together for a time of inspiration and training, and in 2022 the team gave 4096 more talks than the previou5 year. More than 460 people Started supporting CAP regLJlarly as a result- which could potentially generate £lm in income. We were Charity of the Year for the mutual financial saving5 company, Foresters Friendly Society, in 2022 and their members raised £55.577 for CAP. We a150 partnered with United Christian Broadcasters for a fundraising campaign which raised over £64.000 and involved 8 full day's takeover of their radio stations. In addition, Christian conference, Word Alive, made CAP a recipient of their collection. resulting in a generous gift of £14.000. Generous supporters By the end of 2022. more than 28.000 people were giving a regular donation to CAP. We call them Life Changers because their generosity has a significant impact on so many people. Despite the challenging economic climate. 92% of Life Changer5 faithfullv donated throughout 2022 and 2.437 supporters even increased their regLJlar gift. Prayer community Prayer fLJels the work of CAP, and we were delighted that L.120 new people joined our prayer community in 2022. 24 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

qtrategic report 'The generosity of CAP supporters reflects their deep commitment to tackling UK poverty. To see such faithful giving during a cost of living crisis is humblingy and we're grateful to share this mission with so many amazing supporters., Alex lones, Head of Fundraising Global growth CAP in the UK continued to support and collaborate with CAP teams in America. Australia, New Zealand and C3nad3' We h05ted a week-long gathering for iepresentatives from CAP international teams. facilitating discussions on how we can maximise the benefits of our global affiliation and resoLJrce new CAP countries. 346 1,120 Work to establish 3 new CAP organi53tion in the Republic of Ireland (CAP Ireland) 15 underway, with an official board now in operation and a Chief Executive Officer being recrLJited. They are a registered company limited by guarantee and have applied to become a r&gist&red charity which we expect to be approved during 2023. church talks people joined our prayer commLJnitv 461 5,713 Other international highlights include-. Money Mentors. a holistic fi'nancial support programme developed and piloted by CAP Australia. CAP Canada celebrated hitting ambitious targets to provide debt support. CAP America worked with a small number of churches to test and develop the best Servi￿ model. Progress made in CAP New Zealand's journey to become bi-cultural, as the nation addresses disadvantages suffered by Maori and Pacifi"ca people. people started donating regularly people wrote to a decision-maker such as their MP about UK poverty () 28,653 people now support CAP with a regular donation 'The affiliate charities are separate organisations. They use the CAP brand and model but do not form part of a group structure. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 25

Three-year strategy update Our three-year strategy Back in 2020, we Launched a three-year strategy based on strengthening our service provision, improving staff wellbeing and ensuring financial sustainability. 2022 marked the final year of this strategy- and we made progress in all three areas. Strategic aim I: Strategic aim 2.. Deliver a sustainable and scalable debt service Make CAP the healthiest organisation to work for We continued to deliver and adjust our debt service within the rapidly-changing debt advice industry. Funding from the Money and Pensions Service and the Scottish Government strengthened the debt advice we were able to give to our clients. In 2022 we grew our organisational cultural awarenes5 particularly around race and ethnicity. All leaders and managers took part in training from an external agencv, Next Leadership. and relevant staff received recruitment training. We 3150 worked with specialists to redesign the journey a client take5 through our debt 5ervice- from start to finish and including technical interfaces. This vital work will continue in 2023. We developed a new tool which prompts staff to consider different per5pective5, to Support diversity. inclusion and accessibility in product development. A group of staff members with lived experience of inclusion and accessibility challenges has also been e5tabli5hed to 3Ct as consultants on new products. A new women's network was set up among stsff. to facilitate peer supporL collective learning and open discussion. Meanwhile. our new accessible he3d offi￿ is a big step in maintaining a healthy. diverse and inclusive workforce. 26 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Three-year strategy update Strategic aim 3: Ensure financial sustainability for the future Looking forward In 2023. with a forecast of increasing costs and decreasing income. we have developed an interim strategy. It will focus on.. Significantly, we moved our head office into jubilee House, a modern, well-equipped and accessible bLJilding. which atso saves an estimated £81,000 in annual running costs. strategic and financial stability • ensuring the 5USt3in3bility tsf our services developing and strengthening our relationships with churches organisational wellbeing Early in 2022 we met standards for the Cyber E55enti315 quality mark. which shows we re protected against cyber attacks. This is an important accreditation required to be eligible for Government funding. In the Longer term we aim to: We secured £1.364.558 from the Scottish Gov&rnment and the Money and Pensions Service for delivering debt 5ervice5 across Scotland and England. continue to strengthen our organisational infrastructure grow the number of individuals and churches working to end poverty in the UK To grow our supporter base, we ran several fundraising events and trialled new approaches to share CAP with more people Around I 1.000 new people joined us to pray, give or campaign. increase the impact we have as a charity Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 27

FinanciaL review Financial review How we managed the money you gave us Overview Income Our overall financial objective is to achieve a healthv balance between our fundraisir)g. our financial reserves and the resources required to run our services effectively and fulfil our charitsble objectives. In 2022, our income totalled £15.Om12021." £15.2ml. Our main sources of income continLJe to be donations from individuals and churches. which totalled £1 1.9m 12021.. £12.Oml or 79%12021.. 78%) of our total income Many of our supporters wanted to help those impacted by the cost of living crisi5 through our work and we saw this in their response to our appeals and atso in unsolicited income from individLJals. Following 2021, when we were building back and recovering from the COVID-19 pandemic. 2022 was vear of resetting and restrengthening in many areas. We looked long-term with the aim of building organisational resilience and invested in areas that needed to be strengthened, particularly within tech and our digital capabilitie5 along with investment into new strategic priorities. such as Debt Service Transformation and the CAP Money Course refresh. through Ljtilising reserves that had built up over the last few years. We also prioritised cyber security work to meet the Cyber Essentials standard and mitigate the risk of cyber attacks. Regular Income. most of which was received on a monthly basis, was £9.4m12021.. £9.5ml which represent5 63%12021." 62%> of total income received. Life Changei giving from individuals is our most important source of regular income and provides financial stability for the charity. In 2022. Life Changer income remained at £7.Om12021. £7.Oml including associated Gift Aid. At the end of 2022, there were 28,653 Life Changers. each giving an average of £18 per month excluding Gift Aid. We continued with our office relocation programme, completing the refurbishment and fit OLJt of Jubilee HoLJse (the freehold office building purchased in 20211 and moved Into our new premises In October 2022. We sold three properties, including jubilee Mill, during 2022 and the net proceed5 were used towards the refurbishment of jubilee House. We have two additional propertv a55ets that are on the market for sale which we expect to sell during 2023. In completing this programme. we have removed the financial risk associated with managing old buildings, with high and unpredirtable maintenance Costs, fire Safety concern5 and poor levels of acce55ibilitv for staff and visitors. Our one-off Income remained fairly static with a slight decrease of 3% to £5 6m12021.. £5.7ml. Although we received slightly less from private individu315 and trusts in 2022 than we did in 2021, we did receive additional income in the form of government grantg and donations from companies which offset this. During 2022. the Government continued to provide funding through the Money and Pensions Service IMaPSI to support the rising need for debt advice capacity in England. We were successful in renewing OLJr grants with MaPS and received £855k in 20221202 L.. £736kl. This funding will also continue into early 2023. Additional funding was also secured for the successful submission of Debt Relief Orders IDROS) which totalled £260k12021. £217kl. In 2022. our Income totalled £15.Om12021.. £15.2ml and expenditure totalled £17.2m12021.. £14 Im) which resulted in a deficit of £2.3m12021.. £1.Im surplus). We continued our relationship with the Scottish Government and received funding of £246k12021'. £249kl from the Housing and Social justice Directorate to support the provision of debt advice in Scotland. 28 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

FinanciaL review In 2022, we received £0.4m12021.. £0.5ml in donations from creditor5 a5 Fair Share contribution5, where a percentage of monies disbursed to our clients. creditors through a Debt Management Plan is paid back to the charity. 100% of payments made by clients through their Debt Management Plan go towards paying off their debts. In 2022, funds disbursed to creditors on behalf of our clients for debt and priority payment5 totalled £5.7m 12021. £6.9ml. in 2022 as the market value at the year end of the land CAP 15 currently selling wa5 lower than we had recorded in our accounts. Fundraising We would not be able to condurt our charitable activities withoutfundraising and during 2022 we were able to return to some of our in-per50n fundraising events. Expenditure for raising funds increased by £0.3m to £1.8m12021." £1.5ml and represents Il%12021.' 11%) of total costs. Expenditure Support costs Support costs in 2022 totalled £2.8m12021.. £2.4ml and accounted for £0.4m of the £3.Im total increase in expenditure. Included in support costs was £373k in Ljncapitalised expenditure relating to the move to our new head office premises in October. During the year, we also invested £95k into refreshing our brand and our website which will help us to reach and serve more people. Total expenditure in 2022 Saw an overall increase of 22.6%or£3.Im, to £17.2m12021. £14.Iml dueto the planned investment of reserves and increased operating costs. We overcame the earlier recruitment hallenges we faced, which had resulted in lower than anticipated expenditure in 2021. The return to a pre-pandemic level of in-per50n events such a5 staff conferences, exhibitions. and external funcbons increased our overall travel and associated costs.. Cash flow and investments Expenditure on charitable activities (including associated support costs) increased by £2.Im to £15.3m12021.. £13.2ml. The average headcount in our Debt Operations increased by 38. which resulted in increased costs but also allowed us to serve more clients during the year. In 2021. we began our Debt Service Transformation project to redesign our debt service offering. In 2022. we invested £792k into the project and we now have a blueprint for a service with our client5 and church partners at the centre. Reserves policy and management Each ye2f, the Trustees review our reserves policy and the level of required general free re5erve5 to ensure that an appropriate level 15 held. We aim to maximise the fLJnds we can spend to SLiPPOrt our charitable aims. This is balanced against managing short-term financial risk and our obligations as a debt management company under FCA rules ICONC 10.2.51 to hold sufficientfree reserves to meet our minimum prLJdential resource5 requirement of £56k. We spent £176k reviewing and refreshing our CAP Money Course and also spent an additional £IOOk on supporting the work of our International CAP affiliate charitie5. The Trustees have set a target level of reserves at three months of one-off income based on the following year's budget, which for 2023 is £1.3m. The reserves at 21 December 2022 were £5.8m12021.. £8.Iml, of which £0.2m12021." £0.3ml are restricted in nature and £4.4m 12021.. £3.Iml is only realisable by disposing of tangible fixed assets and associated mortgages. Free lunrestrictedl reserves at the end of 2022 were £1.2m12021.. £4.7ml. which are £O.Im12021.. £3.2ml under the minimum reserves set out in our re5erve5 policy. In order to facilitate our charitable activities. we had to invest in technology. and in particular, focused on attaining our Cyber Essentials accreditation. Other costs of £128k increased by £769k compared with last year a5 included in 2021 wa5 an impairment reversal of £683k. An impairment charge of £70k was recognised Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 29

FinanciaL review Total reserves reduced by £2 3m in 2022 due to the deficitfor the year, Free reserves reduced by a further £1.2m due to additional investment in fixed a55ets, which are dedurted as part of the free reserves calculation. Our fi've-year plan was to invest excess free reserves in digital transformation to enable our debt service to be scalable and sustainable for the future. Having utilised the majority of our excess free reserves In 2022. further Investment in digital transformation will be limited to the level of additional funds we are able to raise in 2023 and beyond, which will be designated or restrirted for this purpose. We have supported other organisations that share our goa& and values since 2014 from an annual'giving pov. The crtteria for 5elecbng which organi5ation5 to support are". CAP'S own international work Other UK-based organisations that share our core values. namely those that help the vulnerable and marginalised. work through the Church and have an evangelistic focus During the year we made donations of". £25k to Isaiah61 Movement £40k to CAP America The covenant on one of the charity's bank loans states that Net Asset5 must notfall below £2.5m. Atthe end of 2022. NetAssets were £5.8m. Investment powers and policy The chartty's investment policy is reviewed annually by the Finan￿. Audit and Risk committee. In 2022, the policy ha5 been maintained to continue to invest any surplus liquid funds in fixed-term deposits with the charity's bankers. Principal risks and uncertainties Overview The Board of Trustees holds responsibility for ensuring the charity ha5 robust systems of internal control and risk managefflent in place. All dirertorates perform regular risk assessments that consider both existing and emerging risks. The charity maintains a register of all kev risks as parL of the risk management strategy. which is regularly reviewed for effectivene55 by the Board and the Finance, Audit and Risk Committee. The Committee also receives reports from our external auditor5 and review5 progress against any recommendations. This strategy has identified the following important potential risks and how they will be mitigated They are not set out in any priority order. Risk Mitlgation Cyber security attack5 Our IT systems are regularly tested for external attacks. and additional security and penetration testing is commissioned from an independent Security consultant, Using Cyber E5sentia15 as a framework. We have increased staff awareness of IT security measure5 and carry out reviews and testing of our business continLJity plan. Other mitigations Include data anonymisation, bNo-fartor authentication, cyber security insurance and major incident management proce55e5. We have achieved cyber essentials certifi'cation. which was critical to secure continuous cyber security insurance cover and to receive ongoing ststutory funding Safeguarding of vulnerable adults Our safeguarding and whistleblowing policies are regularly reviewed. with refresher training regularly conducted for all staff We also have training In place for partner churches to ensure good safeguarding practice. We commission an external safeguarding aLJdit every three years from an organisation that specialises in safeguarding in the faith sector Ilast audit Sept 202 11. We employ a dedicated Safeguarding Lead to ensure our continued focus in this area. 30 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

FinanciaL review Risk Mitigation RepLJtation Negative media coverage of the charity sector has led to greater interest and focus on the activities and communications of charities. Ongoing mitigation comes from continuing to build our brand and reputation publicly. including developing and maintaining key relationships within the media. credit industry, Government and Christian sector of society. Impart We continually measure outcomes for our clients and publish them regularly, including through our annual client report (most recently published in lune 20221. We conduct regular client sur- veys to measure the ongoing impact of our services over time. Compliance We are authorised and regulated by the Financial Conduct ALJthority and subject to an annual CASS audit (Client Moneyl. We hold the Advice Quality Standard which is achieved by an exter- nal audit of our advice processes and demonstrates our commitment to best practice and deliver- ing quality advice to our clients. Financial 5UStainabilitv s with any charity that is heavily reliant on voluntary donations for its income, a large reduction in funding could have a serious impact on the charity s ability to carry out its charitable activities. We mitigate this throLJgh our fundraising strategy and a drive to grow regular income. We are enhancing our digital presence and trialling new fundraising channels to attract new supporters. High inflation, rising interest rates, high utilities costs and other cost of living pressures are having an impact on our income. our operational costs, our clients and our staff. We are taking action to reduce OLJr operating costs and headcoLJnt numbers in 2023. in line with our lower income forecasts for the next five years. Safety. securitv and wellbeing of staff and volunteer5 We have a Health and Safety Board to ensure we are covering all risk areas. including our head offi.ce and frontline staff. safeguarding. business continuity and disaster recovery. Relocating to our new head offi.ce has addressed key accessibility and health and safety issues. The challenging economic environment and our need to redLJce our costs have increased our concern for the mental wellbeing of our staff and volLJnteers. We have taken additional measures to support everyone during this diffi.cult season. Operational pressures We have increased our awareness of the importance of building and testing operational resilience following two previous major disruptions to our service. We have developed tools to forecast and predict high leve15 of workload and pressure in our debt operation5 Service, which will alert U5 to the need to make adjustments to manage this pressure in the system. We know that many of our processes and systems are difficult and time-consuming to change or adapt to new requirements or regulatory changes We are investigating ways of using Robotic Process Automation IRPAI to Speed up Some of the routine tasks a5 a way of Improving effi.ciency. Broken budget5 and increasing financial ènd other distress experienced by laige numbers of clients are adding to the time it takes to complete cases. Financial constraints for the next season will require us to reduce headcount numbers, therefore we are seeking to maximise effi'ciency gain5 through improved technology and RPA. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 31

Trustees, report Trustees, report Structure, governance and management The Board of Trustees and ethos of the charity to newer board members. Further Trustee training is carried out on an ongoing basis. making use of the Charity Commission website and other charity publications. The Trugtees. who are also Directors of Christians Against Poverty for the PLJrposes of company law, met four times in 2022 to review strategy and operational or financial performance. together with the charity's UK Chief Executive and other members of the senior management team. These meetings are also attended by a staff representative and a centre representative, so their views can be taken into consideration through the decision-making process. Indemnity The charity purchased and maintained Trustee Liability Insurance throughout the financial year In respect of itself and it5 Trustee5. The Trustees have the authority to appoint as Trustee any person who, by virtue of personal or professional qualification, is able to make a contribution to the pursLJit of the charity s objectives or management. When recruiting new Trustees. the e¥isting Trustees not only look at the person's qualifications but also at their passion and support for the charity's vision and aim5 to ensure they can p13y a full part in managing the charity s growth. Prospective Tiugtees are interviewed by the Chair and UK Chief Executive of the charity and usually attend a board meeting to meet other Trustees and the senior management team prior to their official appointment. In this way, we can ensure they are a good fi.t for the charity and are fully aware of their responsibilities as a Trustee. Structure and management The charity Is constituted 3s a company limited by guarantee Icompany number 46551751, formed on 3 February 2003. and is therefore governed by its Memorandum and Articles of Association dated 5 February 2007. The company took over the operations of Christians Against Poverty as constituted under a Declaration of Trust dated 29 August 1996. on I lune 2003. The day-to-day implementation of the strategic plan. together with the development of Strategy. is led by the UK Chief ExecLJtive and senior management team. which consists of members of each area of the charitv. The Trustees meet regularly where. in full consultation with the Senior management team, the main strat￿lC and direcLional deci5ion5 are taken. Day-to-day operation5 are delegated to the UK Chief Executive and senior management team which has. within certain Limits. delegated authority. Suitable benchmarks and milestones are agreed to provide a basis on which to measure achievements, with the Senior managementteam reporting progre55 to the Trustees through the various committees. Monthly management accoLJnts are also Ljsed to ensure fi'nancial targets are being met. If any significant matters of poliry or key decision-making arise during these meetings. these will be referred to the Trustees for approvaL Although our governing document does not require retirement by rotation. It is the board's practice to appoint a Trustee with the expectation that they serve for an initial period of three years. After thi5 time, their role is reviewed to ensure they are still a good tit for the charity. They then have the opportLJnity to serve for two further terms of three years (nine years In totall or retire. Trustee term of duty A Trustee is experted to serve for a maximLJm of three terms of three years each, after which time up to two Trustees at any given time may serve as 'history carriers Trustees who can pass on their experience of the culture 32 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Trustees, report Finance, Audit and Risk Committee Although CAP has an in-hoLJse creative team that prepares supporter materials and appeals. we often work with freelance copywriters and agencies. All fundraising appeals must be signed off by us. The Finance. Audit and Risk Committee ig responsible for monitoring the integrity of the charity's financial reporting and internal controls. This includes reviewing the annual report and accounts. and the effertiveness of external audit services. The committee also reviews the charity's risk management proce55, top Strategic and operational risks, and adequacy of internal controLs and mitigations. During 2022. we attended several exhibition5 and festivals and hosted several fLJndraising dinners. As usual. these activities were run by CAP staff along with volunteers who tend to be supporters, family and friends of staff. Our fundraising practices In-houge fundraising training is provided to all volunteers based on the FR Code of Fundraising Practice. We train event volunteers to ask for support and give them a script to use where possible. As part of our training. we cover how to interact with supporters and potential supporters face-to-face in a reasonable and fair manner, allowing individuals to make their own informed decisions about whether or not to donate. Every person who supports our work is important to us and we believe supporting CAP should be a positive experience. We strive to maintain the highest standards in supporter relations. ensuring each person is treated as an individual. with fairness and respect. For this reason. CAP voluntarily subscribes to the Fundraising Regulator by paying an annual fundr315ing levy. The Fundr315ing Regulator assumed responsibility for regulating all fLJndraising from ILJIV 2016 and investigates and takes action. where appropriate. on issues of public concern. We regularly review the financial asks given by CAP speakers and provide feedback to the speaker when necessary. After every CAP talk, church leaders provide feedback on how the speaker interacted with the congregation. A member of the CAP Fundraising / Events team supervises all volunteers at exhibitions and fundraising dinners. In previous annual reports, we've only reported on fundraising practice complaints which were escalated to the Fundraising Regulator. In the interest of openne5S and transparency. we've chosen to also inclLJde instances of feedback which we classitied internally as complaints. In 2022. we received zero complaints which were dealt with by our in-house customer service team in line with our complaint5 policy, and none were escalated to the Fundraising Regulator. Additionally, we collectfeedback from our fundraising dinner attendee5 and supporters after every fundraising call. Our feedback is collated via Delighted (experience management platform). We have a vulnerable supporter policy. and 311 supporter-facing CAP staff and volunteers receive training in how to interaci with vulnerable supporters. If a fundraiser suspects a person they are talking to may have vulnerabilities, they Must end the conversation immediately. They should do this politely. without.. The majority of our fundraising work is carried out bv centrally employed staff Including an in-house supporter phone team and 3 dedicated major donor team. Volunteer speaker5 also attend church 5ervice5 around the UK to inform congregations about the work of CAP. along with fLJndraising activities. Making 3 request for a donation Asking about the individual's capacity to make a decision Asking about the person's vutnerable circLJmstances Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 33

Trustees, report We know it may be difficult for fundraisers to decide whether or not someone is in a VLJlnerable circumstance or lacks capacity. We provide guidelines for fundraisers. but our approach is always to err on the side of caution. All CAP staff are also trained in line with our 53feguarding policy, to ensure member5 of the public who are at risk are appropriately protected. Employees The work of CAP relies on the commitment and hard work of its valued staff. both those directly employed at head office and those employed by our pariner churches in our centre network. Full training is given to each member of staff in their specifj'c roles. including for interns through our internship programme. We are committed to equality in recruiting, training, promotion and career development 3nd continually seek to promote from within alongside seeking external candidates. We continue to comply with the United Kingdom General Data Protection Regulation IUK-GDPRI which took effert in 2020. Salary policy and pay for senior staff The health and wellbeing of our staff is paramount and we are committed to offering flexible working arrangements and a range of benefits. The annual salary for the UK Chief Executive role w35 £87.566 in 2022. an increase from £85.223 in the previous year. Diversity and inclusion The annual salaries for the Chief Operating offi.cer and Chief People and Culture Officer roles were both £75.239. up from £69,185 in the previou5 year. For other Directors in the senior management team. annual salaries were between £4L.473 and £61.2 L4. In the previou5 year. Directors received between £55.467 and £59.576. We're committed to fairness for all and so an element of compression continues to be applied to the most senior 531aries to achieve the 3greed ratio of 1..5 between the lowest and highest paid roles across the charity. exclLJding internship roles. The charity is committed to supporting the employment of disabled people and helping existing staff, as well 35 anyone with additional Support need5. a5 part of the recruitment process. In addition, we are committed to the retention of employees that become disabled while in our employment. We do this through training. career development. general awareness and support. We're keen to create 3 culture that reflects and embraces diversity in all area5 and leve15 of the organisation. A Diversity and Inclusion Board was get up in 2021. headed up by a Programme Manager. tasked with reviewing and improving our approach in this area. This relates to education. church engagement. theology, client engagement, communication, supporter engagement. employment and policy. Because of capacity and the depth of work needed to deliver lasting progress. it was agreed that the programme would initially be focused on race and ethnicity. As an organisation. we care and want to be better at building an environment where all protected char3Cteristics can be given appropriate attention, and so we will focus on others as time goe5 on. including gender. sexuality and disability. The Trustees consider that they and the senior management team comprise the key management personnel of the charity, who are in charge of directing. controlling. running and operating the charity on a day- to-day basis. All Trustees give their time freely and no Trustee received remuneration in the year. Details of Trustees, expenses and related party transactions are disclosed in notes 22 and 23 to the accounts. 34 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Trustees, report Directors, engagement with employees Work in Northem Ireland 20 Debt Centres Regular communication with staff through monthlv staff meetings and team meetings ensures employees are kept informed of any decisions taken by the senior management team. Staff also receive a quarterlv update on the charity s financial position alongside information on how any current economic factors are afferting the performance of the organisation. Both a staff representative and a centre representative attend the quarterly Trustee Board meeting5 $0 their view5 can be taken into consideration through the strategic and operational decision-making process. lob Clubs 13 Life Ski115 group5 70 Adults debtfree 17 lob Club and Life Skills courses run Regulatory Debt counselling and debt management are regulated activities under the Financial Services and Markets Act 2000. The charity is authorised and regulated by the Financial Conduct Authority IFCAI to provide debt counselling and debt Management services. Volunteers CAP values the work of its volunteers at head office in Bradford and across the UK. The welfare of those giving up their free time is important to us and we continue to ensure all policies and procedures are reviewed regularlv This provides the charity with clear boundaries and marks out for volunteer5 the extent of their remit. There 15 a dedicated staff member who oversees their work and ensures the wellbeing of all our volunteers. In addition to the above, we also hold the Advice Qualitv Standard mark IAQSI. Organisations that hold the standard have demonstrated they are easily accessible, effectively managed, and employ staff with the skills and knowledge to meet the needs of their clients. As part of achieving the standard. we also satisfied the requirements of the Money and Pensions Service IMaPSI Debt Advice Quality Framework. The number of volunteers within our centre network is difficult to quantify, but we acknowledge that without their invaluable contribution our clients would not receive the help and support they do. The Trusteeg, therefore, wish to acknowledge the enormous contribution made bv employees and volunteers, both at head office and within the centre network. Work in Scotland The Office of the Scothsh Charty Regulator requires us to report separatsly on ourwork in Scodand While we do not report our income and expendtture separately for our Scottish acbvitie5, the 5tati5tic5 atthe end of 2022 were as follows". 22 Debt Centres li lob Clubs Life Skills group5 122 Adults debt free 17 lob Club and Life Skills courses run In 2022, the Scottish Government provided a grant of £246k to CAP, which ha5 been used to resource our Scotland Debt Operations team. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 35

Trustees' report

Directors, senior staff and advisors

Directors {Trustees)

• Roger Hattam (Chair)

• Matthew Frost

• Lisa Pearce

• Simon Gates (resigned 11 October 2022)

• Joy Blundell

Principal and registered office

Jubilee House 1 Filey Street Bradford West Yorkshire BDl 5LQ

• Jane Pleace

• Ema Ojiako

• Robin Willison (appointed 18 April 2023)

• Catherine Nicholas-Vilkaitis (known as Kate Nicholas) (appointed 18 April 2023)

• Roger Mawle (appointed 18 April 2023)

Secretary

• Stephen Bonfield

Auditor

RSM UK Audit LLP 5th Floor Central Square 29 Wellington Street Leeds LSl 4DL

Leadership team

Solicitors

• Paula Stringer (Chief Executive)

• Jon Day (Chief Operations Officer) (to 9 June 2023)

• Ellie Gage (Chief People and Culture Officer) (to 24 February 2023)

• Dan Lane (Engagement & Influence) (to 28 April 2023)

Hempsons The Exchange Station Parade Harrogate HGl ns

• Angie Rusbridge (Finance, Risk & Compliance)

• Jake Hutton (Debt Operations)

• Chris Cupples (Church Network) (to 31 May 2022)

• Tim Moger (Technology & Digital Transformation) (from 25 July 2022)

• Sarah Parkes (People Operations) (from 5 September 2022 to 19 May 2023)

• Lyn Weston (Church Network) (from 5 September 2022)

Bankers

Lloyds Bank PLC Hustlergate Bradford West Yorkshire BDllNT

Charity no. UK 1097217 Charity no. Scotland SC038776 Company no. 4655175

36 Christians Against Poverty I Company no: 4655175 I For the year ended 31 December 2022

Trustees, report Trustees, responsibilities in relation to the f inancial statements The charity Trustees Iwho are also the directors of Christian5 Against Poverty for the purposes of company lawl are responsible for preparing a Trustees annual report. strategic report and financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice) Statement as to disclosure to our auditor In so far as the Trustees are aware at the time of approving our Trustees, annual report there is no relevant audit information, of which the charity s auditor is unaware. and the trustees have taken all steps that they OLJght to have taken to make themselves aware of any relevant audit Information and to establish that the auditors are aware of that Information. Company law requires the charity Tru5tee5 to prepare financièl statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the Incoming resources and application of resources. including income and expenditure. of the charity for that period. In preparing the financial statement5 the TrLJ5tees are required to". Auditor al Select suitable accounting policies and then applv them consistentlv., bl Observe the methods and principles in the Charities SORP., cl Make judgements and estimates that are reasonable and prudent". dl State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained In the financial statements., el Prepare the financial statements on the going concern basi5 unless it is inappropriate to presume that the charity will continue in operation. A proposal to re-appoint RSM UK Audit LLP as auditor of the charity will be put to the Annual General Meeting Strategic Report In accordance with section 414C IL Ll of the Companies Act 2006 (Strategic Report and Directors, Report) ReguL3tions 2013, the company has prepared a Strategic Report. which includes information that would have previously been included in the Trustees report. The TrLJStees and Directors report contains all information required in a Directors report by the Companies Art 2006. The Trustees authorise both the Strategic Report and the Trustees report below. The Trustees are responsible for maintaining proper accounting records that disclose with reasonable ccuracy at any time the financial position of the charity and to 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. Approval This report was approved by the board of Trustees on 30th lune 2023 and signed on its behalf. The Trustees are responsible for the maintenance and integrity of the corporate and tinancial information included on the charitsble company s website. Legis13tion In the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other juri5dictiOn5. Roger Hattam Chair of Trustees and Director Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 37

Auditor's report Independent Auditor's report to the trustees and members of Christians Against Poverty 5. )" 38 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Auditor's report Opinion Conclusions relating to going concern We have audited the financial statements of Christians Against Poverty Ithe'charitable company'l for the year ended3 1 December 2022 which comprise the Statement of Financial Activities. the Balance Sheet. the Statement of Cash Flows and notes to the financial statements. including sigr)ifi'cant accounting policies. The financial reporting framework that has been applied in their preparation Is applicable law and United Kingdom Accounting Standards, including FR£ 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Prarticel. 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 identihed any material uncertainties relating to events or conditions that. individually or collectively, may cast signiticant doubt on the charitable company's ability to continue as a going conc&rn for a period of at least twelve months from when the h"nancial 5tatement5 are authori5ed for issue. In our opinion the financial statements.. give a true and fair view of the state of the charitable company 5 affair5 as at 31 December 2022 and of its incoming resources and application of resources. inclLJding its income and expenditure. for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotlandl Act 2005 and regulation 8 of the Charities Accounts (Scotlandl Regulations 2006 las amended). 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 inforfnation comprises the information included In the annual report other than the financial statements and our auditor s report thereon. The trustee5 are responsible for the other information contained within the annual report. Our opinion on the fi'nancial 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 conclLJ5iOn thereon. Basis for opinion We have been appointed auditor under sertion 44llllcl of the Charities and Trustee Investment (Scotlandl Act 2005 and under the Companie5 Act 2006 and report to you in accordance with regulations made under those Acts. We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 charitable company in accordance with the ethical requirements that are relevantto our audit of the financial ststements in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical respon5ibilitie5 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. 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 knowl&dge obtained in the course of th& audit or otherwise appear5 to be materi311y mi55tated. If we identify such material inconsi5tencie5 or apparent material misstatements. we are reouired to determine whether this gives rise to a material misstatement in the fi'nancial statements thems&lves. If. based on the work we have performed. we conclude that there Is a material misstatement of thi5 Other Information, we are required to report that fact. We have nothing to report in this regard. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 39

Auditor's report Opinions on other matters prescribed by the Companies Act 2006 enable the preparation of financial 5tatement5 that are free from material mi5Statement. whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable company 5 3bilitv to continue a5 a going concern, di5c105ing. a5 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. In our opinion. based on the work undertaken in the course of the audit.. the Information given in the directors, report and the strategic report prepared for the purposes of company law and included within the trustees annual report, for the financièl year for which the financial statements are prepared is consistent with the financial statements.. and the directors report and the strategic report. included within the trustee5 annual report, has been prepared in accordance with applicable legal requirements. Auditor's responsibiLities for the audit of the financial statements OLJr 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 3uditor's report that includes our opinion. Re3son3ble assurance is a high level of a55urance. but Is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it e¥ists. Misstatements can arise from fraud or error and are considered material If. individually or in the aggregate. they could reasonably be expected to InflLJence the economic deci510ns of users taken tsn the ba515 of these financial Statements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit. we have not identified material misgtatements in the direciors. report or the strategic report. inclLJded within the trustees. annLJal report. We have nothing to report In respect of the following matters where the Companies Act 2006 and the Charities Account5 Iscotlandl Regulation5 2006 las amended) require us to report to you if. in our opinion". adequate and proper accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us., or the fi.nancial statements are not in agreement with the accounting records and return5', or certain disclosures of trustees. remuneration specified by law are not made.. or we have not received all the Information and explanations we require for our audit The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain Sufficient Bppropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material arnounts and disclosures in the financial statements. to perform audit procedures to help identify instances of non-comp113nce with other laws and regulations that may have a m3teri31 effect on the linancial statement5, and to respond appropriately to identitied or suspected non-compliance with laws and regLJlations identified during the audit. Responsibilities of trustees In relation to fraud. the objectives of our audtt are to identify and asse55 the risk of material misstatement of the financial statement5 due to fraud, tts obtain Sufficient appropriate aLJdit evidence regarding the assessed risks of material misstatement due to fraud through designing and Implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit As explained more fully In the statement of trustees, responsibilities set out on page 37. the trustees (who are also the directors Df the charitable company for the purposes of company lawl are responsible for the preparation of the linancial 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 40 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Auditor's report However. it 15 the prim3ry re5POll5ibility of management. with the overgight of those charged with governance. to ensLJre that the entity s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. The audit engageThent team identified the risk of management override of controls and revenue recognition.. completeness of legacies and donations as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed in relation to management override of controLs included but were not limited to testing journal entries and other adjustments. evaluating the business rationale in relation to significant. Ljnusual transactions and transactions entered into outside the normal course of business, and challenging judgments and estimates. Audit procedures performed in reLation to the completene55 of donation5 and legacy income included but were not limited to verification of transactions during the year and around year end to third party supporting documentation and receipt to bank statements. where applicable. In identifying and asse55ing risks of material rnisgtatement in respect of irregularities. including fraud, the audit engagement team.. obtained an understanding of the nature of the sector. Including the legal and regulatory frameworks that the charitable company operates in and how the charitable company 15 complying with the legal and regulatory frameworks". inqLJired of management. and those charged with governance. about their own identification and assessment of the risks of Irregularities. Including any known actual, suspected or alleged instances of fraud., discu55ed matters about non-compliance with law5 and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud having obtained an understanding of the effectiveness of the control environment. A further description of our responsibilities for the audit of the tinancial statements is located on the Financial Reporting Council's website at http'./lwww.frc.org.ukl auditorsresponsibilities. This description forms part of our auditor's report. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS L02. Charities SORP IFRS 1021. Companies Art 2006. the Charities and Trustee Investment Iscotlandl Act 2005 and regulation 8 of the Charities Accounts IScotL3ndl Regulations 2006 lag amendedl. and the charitable company 5 governing document. We performed aLJdit procedures to detert non-compliances which may have a material impact on the financial statements which Included reviewing the financial statements including the Trustees, Report and remaining alert to new or unusual transaction5 which may not be in accordance with the governing documents. Use of our report This report Is made exclusively to the members. as a body. in accordance with Chapter 3 of Part 16 of the Companies ACL 2006. and to the charity'5 trustee5, as a body, in accordance with section 44llllcl of the Charities and Trustee Investment (Scotlandl Act 2005 and regLJlation 10 of the Charities Accounts (Scotlandl Regulations 2006 las amended). Our audit work has been undertaken so that we might state to the members and the charity'5 trustees those matter5 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 assLJme responsibility to anyone other than the charity. its members as a body. and Its trustees as a body. for our audit work, for this report. or for the opinions we have formed. The most significant laws and regulations that have an indirect Impact on the financial statements are the rules and principles set by the Financial Conduct Authority IFCAI a5 regulator for the financial 5ervice5 industry in the UK and GDPR. We performed audit procedures to inquire of management and those charged with governance whether the charitable company Is in compliance with these law and regulations. In relation to FCA. we inspected compliance documentation including but not limited to. internal procedures manua15. reports from external compliance advisorg, risk and breaches registerg, regulatory returns and correspondence with the FCA as well as considering compliance with the conditions for authorisation Including with any restrittions or requirements placed on the firm and other regulatory obligations. L￿Y tob￿0 Lucy Robson (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP. Statutory Auditor Chartered Accountants Fifth Floor Central Souare 29 Wellington Street Leeds LSI 4DL Date. 01107123 RSM UK Audit LLP Is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 41

FinanciaL statements Financial statements Statement of Financial Activities for the year ended 31 December 2022 Iincorporating an income and expenditure account) Unrestricted fLJnds Restricted funds Total Unrestricted funds Restricted funds Total 2022 2022 2022 2021 2021 2021 Note £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Income From DoTration5 and legacies 12,279 825 13,104 12,756 628 13,384 Othertr3ding activities 56 56 119 119 Investments Charitable activities 431 431 467 467 Other income 1.365 1.365 25 1,184 1,209 Totsl intome 12,767 2,190 14,957 13.368 1.812 15.180 Expenditure On R81sing funds 1,779 30 1,809 1,476 32 1,508 13,096 2.204 15,300 11,506 1,687 13,193 Other 128 128 16411 16411 Total expendi￿re 15.003 2.234 17,237 12.341 1.719 14.060 Net lexpenditurellincome 12,2361 12.2801 1,027 93 1,120 Net movernent in funds 12.2361 12.2801 1.027 93 1.120 Reconciliation of fvnd5 Totalfund5 broughtforward 7,873 254 8,127 6,846 161 7,007 T¢)taLfunds carried forward 5.637 210 5,847 7.873 254 8,127 The notes on page 45 to 60 form part of these financial statements. 42 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements BaLance sheet as at 31 December 2022 Unrestricted fLJnds Restricted funds Total Unrestricted funds Restricted funds Totsl 2022 2022 2022 2021 2021 2021 Note £'ooo £'ooo £'ooo £'ooo £'ooo 'ooo Fixed Assets IDtangible fixed a55ets io 328 328 368 368 Tangible fixed assets 5,699 5,702 4.633 4.639 Totsl 6.027 6.030 5.001 &007 Current Assets Debtors 12 786 299 1,085 1.012 176 1.188 Cash and cash eqLJiV8lents 1.039 950 4.316 78 4.394 Total I￿25 210 1035 4328 254 &582 C[￿[tors". amount5falliTrg due within oneyear 13 19041 19071 19271 Netcuirent assets 921 207 1.128 4407 4655 Totsl assets less cuNent ￿abil- 6.948 210 7,158 254 9.662 Credttors. amountsf211ing due after one year 14 11,3111 11.5351 11,5351 Net assets 5.637 210 5,847 7,873 254 &127 Funds Restrirted funds 210 254 Unrestricted funds 5,637 7.872 Total funds 19 5.847 8.127 Approved by the Board of Directois and Trustees and authorised for issue on 30th June 2023 and signed on its behalf. Roger Hattam Chair of Trustee5 and Direitor The notes on page 45 to 60 form part of these financial statements. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 43

FinanciaL statements Statement of cash flows as at 31 December 2022 Total Totsl 2022 2021 £'ooo £'ooo Cash ftows from operating acbvities Net loutgoingllincoming resource5 12,2801 1,120 Depreciabon on tangible fixed assets 150 106 Impairment of tangible fixed assets 70 16831 Amortisation of intangible asset5 52 50 IProfitllloss on $81e of 3ssets 12791 Less interest received Add interest p3id 58 41 Increa5elldecrea5el In debtors 103 175 Increaselldecreasel in credttors 164 141 Net cash flow (used inllprovided by operating artivities 1.9631 Cash flows from investrnent actNities Proceeds on sale of 8ssets 2,043 Purchase of tangible fixed assets 13,0471 12,2641 Purchase of intangible fi%ed assets 1491 Curreni assei investment Interest received Net cash flow (used inllprovided by investing activitie5 11.0151 12,3101 Cash flows from financing activities Cash inflows from new borrowing 1.495 Repayrnent of b3nk loan5 14081 12481 Net cash flow (used inllprovided byfinancing acbvibes 1466) 1.206 Change ID cash aDd cash equivalents ID the year 13,4441 Cash and cash equivalents as at 31 De￿rnber 2022 950 4,394 Cash and cash equivalenis as at 31 Detrmber 2021 4,394 4.550 The notes on page 45 to 60 form part of these financial statements. 44 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements Notes to the financial ststements for the year ended 31 December 2022 l. Statement of accounting policies Charity information Christians Against Poverty is a company limited by guarantee domiciled and Incorporated in England and Wales Preparation of the accounts on a going concern basis The TrLJStees (who are directors of Christians Against Poverty for the purposes of company law and the Trustees of Christians Against Poverty for the purposes of charity lawl have reviewed the charity's financial position, t3king into account the leve15 of reserves and cash, the annual plan and the five-year financial plan, and its systems of fi'nancial and risk management. The registered office is jubilee House, l Filey Street, Bradford. BDI 5LQ. Christians Against Poverty meets the definition of a public benefit entity under FRS 102. The charity exists for the benefit of the public through the provision of services to members of the public suffering from problem debt, unemployment and low income. which are detailed in the charity s principal activities. As a result of their review, the Trustees believe that the charity is well-placed to manage operational and financial risks successfully given that the charity ha5 recently taken action to rebalance expenditure to align with the predicted decline of income growth over the next 3 years, due to the ongoing uncertain economic outlook. Accordingly. the Trustees have a reasonable expectation that there are no material uncertainties about the charity 5 ability to continue in operational existence for the ftsreseeable future. Accounting convention These fi.nancial statements have been prepared In accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102.1. the Charities Statement of Recommended Practice. Accounting and Reporting by Charities I"SORP"I FRS 102 and the requirements of the Companies Art 2006. The Trustees. therefore. continue to adopt the going concern basis of accounting in preparing the annual financial statements. The financial statements have been prepared under the historical cost convention. Funds held by the charity Unrestricted funds represent funds received that are available to the Trustees to apply for the general purposes of the charity as set out in the governing document. The financial statements are presented In sterling which is the functional currency of the group. Monetary amounts in these financial 5tatement5 are rounded to the nearest £'OOO. except where otherwise indicated. Restrirted funds represent fund5 received for a specific purpose as defined by the donor or funder. The charity s principal activities are described in detail on pages 8 to 9 along with the nature of the charity's operations. The company has adopted the following principal accounting policies, which should be read in conjunction with the financial statements set out on pages 42 to 44. Incoming resources All incoming resources are included in the statement of financial activities when the charity Is legally entitled to the income, receipt is probable 3nd the amount can be quantified with reasonable accuracy. The following specific policies apply to the categories of income". Basis of consolidation The financ131 statements show information about the charity a5 an individual entity and not about it5 group, ag the charity has taken advantage of the exemption provided by sertion 405121 of the Companies Act 2006 not to prepare consolidated tinancial statements. The Trustees consider that the charity's subsidiary should be excluded from consolidation on the basis that it is immaterial for the purpose of giving a true and fair view. Legacies Legacy income is recognised when the charity has been nobfied of entitlement, where receipt 15 probable and the amount of the legacy is quantifiable. Government grants Grant Income Is recognised when the charity has been notified of entitlement, where receipt 15 probable and the grant is quantifiable, provided that the term5 of the grant Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 45

FinanciaL statements l. Statement of accounting poLicies (continued) do not impose future performance-related conditions. If entitlement is conditional on performance, such as a particular level of service to be delivered. the grant is not recognised until these conditions have been met. Any grants that are received before the revenue recognition criteria are met are recognised in the entity s financial staternents as a liabilitv. Freehold buildings 2% on cost Freehold land Not depreciated Computer equipment 33 113% on cost Furniture and fittings 25% on written down value Office equipment 20% on cost Resources expended All expenditure of the charity is recognised once there is a legal or constructive obligation to make a payment to 3 third party. it is probable that settlement will be required and the amount of the obligation can be measLired reliably. Irrecoverable VAT Is attached to the specific expense incurred. Plant and equipment IO% on cost 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 credited to the Statement of financial activities. Costs of generating voluntary income con51St of the direct costs of fundraising staff together with quantitiable direct costs. Other SLJpport costs are allocated on the basis of headcount. Fixed asset investments The investment in the SLJbsidiary is measured at cost less any accumulated impairment losses. Charitable 3Ctivities consist of the direct costs of stsff involved in the delivery of activitie5 and services to the charity s beneficiaries. Direct costs are included where QLJantifiable and all other support costs are allocated on the basis of headcount. Impairment of fixed assets At each reporting period end date, the charity review5 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 anv such indication exists. the recoverable amount of the asset is estimated in order to determine the extent of the impairment 105s lif any). Where it is not PO55ible to estimate the recoverable amount of an individual asset. the company estimates the recoverable amoLJnt of the cash-generating unit to which the asset belongs. Intangible fixed asset5 Other than goodwill Intangible a55et5 acquired and developed separately from a business are recognised at cost and are subsequently measLJred at cost less accumLJlated amortisation and accumulated Impairment losses. Amortisation is recognised so as to write off the cost of a55ets less their residual values over their useful lives on the following basis". Recoverable amount is the higher of fair value less costs to sell and value in use. In a55e55ing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discoLJnt rate that reflects current market assessments of the time value of monev and the risks specific to the assetfor which the estimates of future cash flows have not been adjusted. Software development 10 years on cost The gain or 1055 arising on the disposal of an a55et 15 determined as the difference between the sale proceeds and the carrying valLJe of the asset. and is creditedl charged to the statement of financial activities. If the recoverable amount of an asset is estimated to be less than its carrying amoLJnt, the carrying amoLJnt of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the Statement of financial activities. Tangible fixed 3S5ets Fixed assets are measured at C05L net of depreciation and any impairment losses. All fixed assets with an individual value in excess of £500 are capitalised. Debtors Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Depreciation is calculated to write down the cost or valuation, less estimated residual values of all fixed a55ets over their expected useful lives. It is calcu13ted at the following rates. 46 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements l. Statement of accounting policies (continued) Cash and equivalents Cash and cash equivalents includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the dep051t 01 5imiL3r account. the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's origin81 effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised. the impairment is reversed. The reversal Is such that the current carrying amount does not exceed what the carrying amount would have been. had the impairment not previously been recogni5ed. The impairment reversal is recognised in protit or loss. Creditorg and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are Settled. or when the company transfer5 the financial asset and substantially all the risks and rewards of ownership to another entity. or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another partv that is able to sell the asset in its entirety to an unrelated third party. Financial instruments The charity has elected to apply the provisiong of Section 11 'Basic Financial Instruments. and Section L2 '0ther Financial Instruments Issues. of FRS L02 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contrartual arrangements entered into. An equity instrument Is any contract that evidences a residual interest in the a55ets of the company after deducting all of its liabilities. Financial assets and liabilities are offset, with the net amoLJnts presented In the financi31 statements, when there 15 a leg311y 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 liabilitv simultaneouslv. Basic financial liabilities Rasic financial liabilities. including trade and other payables, are initially recognised at transaction price unle55 the arrangement constitute5 a financing transaction. where the debt instrument is measured at the present value of the futLJre payments discounted at a market rate of interest. Basic financial assets Basic financial a55ets, which include trade and other receivables 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 financial a55et 15 measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amort15ed cost, Using the effective interest rate method. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when. the company's contrartual obligations are discharged, cancelled. or they expire. Impairment of financial assets Financial assets. other than those held at fair value through profit and loss, are assessed for Indicators of imp3irment at each reporting end date. Taxation The charity is exempt from tax on income and gains falling within sections 472-489 of the Corporation Tax Act 2011 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. Financial assets are impaired where there is objective evidence that. as a result of one or more events that occurred after the initial recognition of the fi-nancial asset. the estimated future cash flows have been affected. If an a55et is impaired, the impairment Ioss 15 Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 47

FinanciaL statements l. Statement of accounting policies (continued) Pensions The charity tsperate5 a defined contribution pension scheme. Christian5 Against Poverty Stakeholder Pension Plan. and the pension charge represents the amounts payable by the charity to the fund in respect of the period. The estimates and underlying a5sumptiOnS are reviewed on an ongoing basis. Revision5 to accounting estimate5 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. Termination beneffts Termination benefit5 are recogni5ed immediately a5 an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. The annual depreciation and amort15ation charges for tangible and intangible assets are Sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Th&y are amended when necessary to reflect the current estimates, based on technological advancement. future investments. economic utilisation and the physical condition of the assets. Impairment on tangible fixed assets is evaluated when an asset is held for sale. The estimations are assessed annually and are amend&d when necessary to reflect the current market value of the a55et. See note 10 for the carrying amount of the intangible lixed a55ets and note I I for the carrying amount of the tangible fixed assets. Operating leases Renta15 payable under operating lease5 are charged against income on a straight-line basis over the lease term. Judgements and key sources of estimation uncertainty In the application of the charity s accounting policies. the Trustees are required tts make judgement5. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. Where accounting estimates concerning legacy income recognised in prior years have been revised, the current year accounts have been adjusted to reflect the revised values expected. Accounting estimates have also been used concerning new legacy income to which the charity has become entitled. The estimates and a550ciated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 2. Donations and Legacies Unrestrirted Restritted nds fvnds Total Unrestricted funds Restricted funds Totsl 2022 2022 2022 2021 2021 2021 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Regular Supporters 5,872 5.879 5,824 5,829 1.930 390 2,320 2,175 247 2,422 Churches 2.054 2,055 2,084 2,084 Companies 553 92 645 293 167 460 Ch8ritableTrusts 320 285 605 749 209 958 Legacies ioi 50 151 173 173 Total 10,830 825 11,655 11,298 628 11,926 Gift Aid 1,449 1.449 1,458 1,458 Totsl donations and lega¢ie$ 12,279 825 13.104 12.756 628 13,384 48 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements 3. Other trading activities 2022 2021 E'OOO E'ooo Fundraising events 38 86 Rents received 18 33 Total 56 119 The amounts above are all unrestricted Income. 4. Charitable activities 2022 2021 £'ooo £'ooo Service Companie5 418 459 CAP Money resource5 li Servitrs resources Total 431 467 The amounts above are all unrestricted income. 5. Other income Unrestrirted funds Restrirted funds Total Unrestricted Restrirted funds fund5 Trtal 2022 2022 2022 2021 2021 2021 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Government grants 1.365 1.365 25 1.184 1.209 Totsl 1.365 1.365 25 1,184 1.209 During the year the organi5ation claimed £nil12021.. £1.5761 from the government in relation to the COVID-19 Job Retention Scheme. The charity received funding from Government departments for the following projects.. 2022 2021 Government department Project £'ooo £'ooo The Money and Pen5ion5 Service COVID-19." Maintaining DebtAdvice Capacity 23 The Money and Pensions Service COVID-19." Increasing Debt Advice Capacitv 855 713 The Money and Pensions Service Administration of Debt Relief Orders 260 217 Housing and SocialJu5tice Directorate Iscotlandl Debt Advice Provision Project 246 249 Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 49

FinanciaL statements 6. Total expenditure Direct Costs Support costs Total costs Dirert costs Support costs Total costs 2022 2022 2022 2021 2021 2021 £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Expenditure on raising funds Expenditure on raising donations and legacies 1,512 297 1,809 1.303 205 1.508 Totsl 1.512 297 1,303 205 Expendthre on charitable aCt￿ltseS CAP Debt Centres 9,797 1.931 11,728 8.307 1.755 10.062 CAP lob Club5 413 73 529 118 647 CAP Fresh Start 339 83 422 CAP Life Skills 826 276 1,102 300 62 362 CAP Kick Start Client welfare 218 19 237 202 26 228 CAP Money 167 io 177 126 134 International 268 io 278 168 176 Raising awareness I,ioo 188 1,288 998 163 1.161 Total 12.793 2.507 1%300 10,970 2.223 13.193 Other costs 58 58 42 42 Imapairment OD fixed a55ets 70 70 16831 16831 Total re50urce5 expended 14433 2.804 17,237 11.632 2.428 14.060 Support cost5 and the basis of their allocation are a5 follow5.. Principal basis of allocation of activitie5 2022 2021 £'ooo £'ooo General rnanagement and support Headcount 944 484 Financial management Headcount 597 594 HurDan re50urce5 Headcount 580 711 Supporter relations Headcount 472 448 HeadcoJni 145 129 Governance Headcount 66 62 Total 2.804 2.428 50 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements 7. Analysis of grants given Included within expenditure on charitable activities are the following amounts In relation to grants given.. Grants to individuals Grants to churches Totsl Grants to individuals Grants to churches Total 2022 2022 2022 2021 2021 2021 E'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Insolvency fee bursary 87 87 121 121 IDcrea5ing debt advice capacity i Scotland 103 103 S3 83 Church debt centre bursarv 44 124 124 Mustard seed bursarv 15 Totsl 87 162 249 121 207 328 During the year CAP was the recipient of some funding from the Scottish Government to increase debt advice capacity in Scotland. Some of thi5 funding wa5 awarded specifically to be given in grant5 tts existing and new Debt Centre church partners to enable them to continLJe operating. 8. EmpLoyee emoluments 2022 2021 £'ooo £'ooo Wages and sa￿rIeS 10,765 9.640 Social security costs 1,036 871 Pension costs 883 837 Total 12,684 11.348 During the year there were £6.72012021.' £39.0121 in redLJndancy payments. The number of employees whose emoluments Isalaries. wages and benefits In kindl fell within the following bands.. 2022 2021 £'ooo £'ooo £60,000 - £69,999 £70,000- £79.999 £80,000- £89,999 The key management personnel of the charity comprises the Chief Executive Officer, Chief Operating Officer, Chief People and Culture Officer. Director of Engagement and Influence. Director of Finance, Risk and Compliance, Director of Debt Operations. Director of Church Network. Director of People and Culture and Director of Technology and Digital Transformation. The total employee benefits of the key management personnel were £612,69612021.. £707.2761. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 51

FinanciaL statements 8. Employee emoluments (continued) The average monthly headcount was 410 staff12021.' 39 11 and the average nLJmber of full-time eqLJivalent employees (including casual and part-time staffl during the year was.. 2022 2021 Head office 372 344 Total 372 344 9. Net income for the year 2022 2021 Is Stated after charging £'ooo £'ooo Auditor's rernuneration External auditfee5 35 27 Advisory services 17 30 Depreciation 150 105 Amorti£ation 52 50 Operating lease rentals 77 74 Impairrnent of fix￿ a55etS 70 16831 Interesi payable 58 41 10. Intangible fixed assets Software development Total Cost £'ooo £'ooo At I January 2022 516 516 Additions 12 12 Di5P05a15 At 31 December 2022 528 528 Accumulated amortisation At I january 2022 148 148 Charge for the year 52 52 Di5poga15 At 31 De￿rnber 2022 200 200 Net book values At 31 De￿mber 2022 328 328 At 31 December 2021 368 368 52 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements 11. Tangible fixed assets Freehold land and buildings Computer Furniture and equipment other equipment Total £'ooo £'ooo £'ooo £'ooo Cost At I january 2022 5.640 774 79 6,493 AdditlOn5 2.728 96 223 3.047 Disposals 1431 1701 12.9361 At 31 December 2022 5.545 827 232 6.604 ACcurnulat￿￿ depreciation t I January 2022 443 681 48 1,172 Charge for the year 71 65 14 150 Eliminated on disposal 14001 1421 1481 14901 At 31 December 2022 114 704 14 832 Accumulated imp&irment At I january 2022 682 Charge for theyear 70 70 Eliminated on disposal 16821 16821 At 31 December 2022 70 70 Net book values At 31 December 2022 &361 123 218 5.702 At 31 Decernber 2021 4.515 93 31 4,639 During 2022 the market value of land held in freehold land and buildingg, and intended for disposal, was assessed as being lower than its net book value. Therefore an impairment charge of £70.08912021.' impairment reversal of £682.7031 was recognised in the statement of financial activities for the year ended 310ecember 2022. Included in the net carrying amount of freehold land and buildings is £2,382,95012021.. £3,520,674) pledged as security against the charity'5 bank loan5. Computer equipment costing £1 1.005 was purchased Ljsing a restricted government grant in 2020. The net book valLJe of the equipment as at 31 December 2022 was £2.7511202 1.. £6.42 11. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 53

FinanciaL statements 12. Debtors Unrestricted funds Restricted funds Total Totsl 2022 2022 2022 2021 £'ooo £'ooo £'ooo £'ooo Gift aid recoverable 276 276 389 Trade debtors 74 74 57 Accrued income 222 299 521 584 Prepayments 212 212 152 Other debtors Total 786 1.085 1.188 13. Creditors- amounts falling due within one year Unrestricted funds Restricted funds Ttstal Total 2022 2022 2022 2021 £'ooo £'ooo £'ooo £'ocH) Building fund loan5 Bank 103ns 122 122 306 Other tax aDd social security 256 256 235 Accrua& and deferred income 322 325 183 Trade creditors 160 160 161 Other creditors 42 42 40 Totsl 904 907 927 54 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements 14. Creditors- amounts falling due after more than one year TotsL Totsl 2022 2021 £'ooo £'ooo Bank ￿an5 1,311 1,535 Total 1,311 1.535 Loans outstanding at the year end amounted to £1,434.40912021'. £1.842,5961 and these are repayable as follows.. Totsl Totsl 2022 2021 £'ooo £'ooo Within one year 123 308 Between two and five year£ 332 498 After more than five years 979 1.037 On I I july 2013 a loan for £1.469.000 was taken out with Lloyds Bank PLC. This loan was fully secured against the freehold property known as Jubilee Mill, North Street. Bradford. The loan was repay3ble over a period of ten years and interest wa5 fixed at 3.86% for its duration. This loan was repaid in full on 14th October 2022, at the time of the sale of jubilee Mill. The balance of the loan at that date wa5 £130.88613 1 December 2021." £272,015). In October 2015 a second loan was taken out for £404.000 with Lloyds Bank PLC for the purchase of a freehold properbq at 86 Captain Street. Bradford and the refinancing of the loan for th@ property at 33 Norman Terrace. Eccleshill. The loan is repayable over a period of eight years and interest is fi.xed at 4.20% for its duration. This loan 15 fully secured against the freehold property known as 86 C3Ptain Street, Bradford. The balance of the loan at 31 December 2022 wa5 £48.6881202 1". £104,913) which represents 15% of the balance sheet value of the propertv. In july 202 1 a third loan was taken out for £1,495.000 with Stewardship Services IUKWI Limited for the purchase of a freehold property at L Filey Stret. Bradford. The loan is repayable over a period of 15 years and interest is variable for its duration. The interest rate on this loan Increased in 2022 from 3 2596 to 4.£% in Line with the Stewardship Standard Lending Rate. The b31ance of the loan at 3 1 December 2022 was £1,384.22112021.. £1,464,168) which represents 68% of the balance sheet value of the property. The loan is fully secured against the property. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 55

FinanciaL statements 15. Other financial commitments Operating lease payments represent rentals payable by the charity for certain items of computer eqLJipment and for office space in Belfast. At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows.. 31 Dec 2022 31 Dec 2021 Operating leases which expire: £'ooo £'ooo Within one year 67 67 Between two and five years 87 104 After more than five year5 16. Financial instruments 31 Dec 2022 31 Dec 2021 Carrynu amourbt of ffin¥nciaL assets £'ooo £'ooo Debt instruments measured at amortised cost 596 647 Carnwng amountof ffinancial babilrf(*s Measured at amorti5ed cost 1,960 2.216 56 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements 17. Movement of funds Balance ljan 2022 Incoming ResourcES resources expended Balance 31 Dec 2022 Balance ljan 2021 Incoming Resour￿$ resourtrs expended Balahte 31 Dec 2021 Description of fund E'OOO E'OOO E'OOO E'OOO E'OOO £'ooo £'ooo £'ooo General unrestricted funds 7.873 12.767 115.0031 S637 6,846 13,368 112.341 7873 Restrirted funds Scotland region 39 Northern Ireland expan510 106 58 Republic of IreL4nd establishment io Scotland debt advice 28 1281 Debt operations 348 13481 387 13871 15 69 15 15 Client emergency aid 55 57 21 115 55 Insolvency bursary fund 23 108 49 112 1891 23 Church Bur5aryfund 12 13 13 136 12 CAP lob Clubs CAP Money refresh project 30 19 CAP Kick Start Staff benevolent fund Apprenticeship Levv Opportunity fund loo loo loo Debt service transformation 250 12501 Incre35ing debtadVI￿ cawcty 858 18581 716 Increasing debt advice capacity (Scotlandl 246 12471 249 12481 ScotiaDd funding rnanager role 44 19 40 36 44 Scotland promotion & engagement manager Warm Wefrome initiative York region 50 49 Call to prayer event Totsl restricted funds 254 2,190 12,2341 210 161 1.812 11.7191 254 TotaLfund5 .127 14957 117.2371 5,847 7,007 15,180 114.0601 127 Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 57

FinanciaL statements 17. Movement of funds (continued) The restricted funds for debt operations are made up of a number of donations towards the salary costs of OLJr Debt Advisors. The funds received in relation to social policy were to supportthe work of the External Affairs team in work on social policy changes to benefi.t our client5. Client emergency aid represents money given towards emergency food shops and other essentials for clients who are without when we first visit them. The insolvency bursary fund represents donations received towards CAP'S insolvency bursary. This fund pays towards bankruptcy and Debt Relief Order fees for clients who have insufficient savings to fund the entire fee themselves. The church bursary fund is made up of a number of donations which were raised for the purposes of giving grants to new and existing Debt Centre chLJrches. These grants were to help them start or continue to run a Debt Centre service. The CAP Money refresh project is to update the materials and content of our CAP Money Course. The remainder of these restrirted funds will be spent in 2023 The opportunity fund was created to enable donor5 to give into a fund that would be avaiLable for CAP to Use in the event that any unexpected opportunities arose that would requi￿ funds. During 2022, this was used to fund some of the work in relation to our debt service transformation. During the year we received some restrirted donations to fund our debt service transformation projett. The restricted donation for increasing debt capacity in Scottand wa5 a grant received to help new and existing Debt Centres in the Scotland region. The restricted donation for increasing debt capacity was a grant received to fund a cohort of new Debt Advisors who were recruited in 2020. The Scotland Funding Manager role restricted fund5 is a donation made towards the c05t5 of this particular role. DLJring the year. we received a legacy payment that came with the restriction of being used to support the services in the York area and some of this was spent in 2022 to support clients In that area. 18. Capital commitments The charity had no capitsl commitments at 3 L December 20221202 L.. £nill. 58 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

Financial statements 19. Analysis of net assets between funds Unrestrirted funds Restricted funds Totsl Unrestrirted funds Restricted funds Totsl 2022 2022 2022 2021 2021 2021 £'ooo £'ooo £'ooo £'ooo 'ooo £'ooo Intangible fixed assets 328 328 368 368 Tangible fixed assets 5.699 &702 4.633 4.639 Cash at bank and in hand 1.039 950 4.316 78 4.394 Other net current assets 296 178 91 170 261 Creditors of more than one ye3r 11,3111 11.5351 Total &637 210 5.847 7.873 254 &127 20. ReconciLiation of net debt Balan l Jan 2022 Cash flows Balance 31 Det 2022 £'ooo £'ooo £'ooo Cash at bank and In hand 4.394 13.4441 950 Bank loans 408 11.4331 Total 2,553 13,0361 14831 21. Budgeting and debt management services Monies paid in by clients to enable their utility and debt repayments to be made are held in a separate bank account from the charity's own funds and cannot be used by the charity to fund its operations. The total balance in these separate 3ccount5 as at 31 December 2022 was £1,446,95812021.. £1,573.0291. 22. Transactions with Trustees During the year, no remuneration was paid to any of the Trustees12021.. £nill and no Trustee5 received travel expense reimbursements12021. one Trustee for £2691 from the charity. The charity paid a sum of £1,383 for Charity Trustee Insurance within its main insurance policy1202 1". £1.3831. Christians Against Poverty Company no. 4655175 | Forthe year ended 31 December 2022 59

FinanciaL statements 23. Related party transactions DLJring the year the charity was the sole member of CAP America. a non-stock corporation registered in the USA. whose principal activity is that of debt counselling. On 30 january 2019, the Directors issued a 'Letter of Comfort, to CAP America. undertaking to financially support CAP America to the full extent of any liabilities incurred by them that are unable to be sat15fied by the assets of CAP America, not exceeding IUSDI $300.000 per annum. As at 31 December 2022 the corporation had re5erve5 of IU£DI $86.14712021.. $101.4691. and the deficitforthe year wa5 IUSDI $15,32212021.. surplus $16,7231. During the year, the charity donated £40,00012021". £50,000) to support CAP America. As at 31 December 2022 there was an OLJtstanding balance of £1,719 owed by the corporation. On 17 February 2023. CAP ceased to be a member of CAP America and an affiliation agreementthat was signed on 2 December 2022 became effective. On 23 May 2022. the Dirertors issued a new'Letter of Comfort. to CAP Australia, undertaking to financially support CAP ALJStralia to the full extent of any liabilities incurred by them that are unable to be satisfi'ed by the assets of CAP Australia. not exceeding (AUDI $300.000. until 22 May 2024. At 31 December 2022 CAP Australia had net assets of (AUDI $748.40412021.. SI.Isi.1661. During 2022 the charity donated £nil12021." £20,000) to CAP Can3da. a charity registered in Canada, of which Ellie Gage is a Trustee. On 19 Ortober 2021, the Directors issued a new'Letter of Comfort, to CAP Canada undertaking to financially support them to the full extent of any liabilities incurred by them that are unable to be satisfi'ed by the assets of CAP Canada. not exceeding ICANI $300.000. until 19 October 2023. At December 2022 CAP Canada had net assets of ICANI $223.87312021.. $350.7381. At the end of the year there were debtor balance5 Outstanding with our international affiliate5 as follows.. Totsl 2022 Totsl 2021 CAP Canada 2,621 4,947 CAP New Zealand 14.980 25,730 CAP Australia 7,070 13,792 CAP America 1,719 With the following amounts included in the sales day book during the year." 2022 2021 CAP C8nada 7,972 8,528 CAP NÈW Zealand 56,127 57,760 CAP Australia 25,438 27.608 CAP America 2,199 24. Pension commitments The charity operates a defined contribution pension scheme. Christians Against Poverty Group Stakeholder Pension Plan, for all employees. The assets of the scheme are held separately from those of the charity in an independentlv administered fund. The pension cost charge represents contributions payable by Christians Against Poverty to the fund and in 2022 amounted to £883,52912021.. £837.6631. All contributions due have been fully paid and the balance outstanding at the end was included in unrestricted liabilities. 60 Christians A931n￿ Poverty Comp3ny no. 4655175 Fortheyear ended 31 December 2022

capuk.org against poverty Charity Registered No.. 1097217 (England & Walesl SC038776 Iscotlandl Company Limited by Guarantee. Registered in England & Wales No.. 4655175. CAP is authorised and regulated by the Financial Conduct Authority.