2024-12-31-accounts

'Ilie e) MugtardTree; ANNUAL REPORT AND ACCOUNTS 2024 .'Planting hope cult" . ug change,

Message from the CEO

CONTENTS

Our projects 3

Engage 4

Rahab 6

Starting Point 8

Finances 11

At The Mustard Tree we are committed to developing projects with our service beneficiaries and local communities so that they are led by those with lived experience. This year it has been fantastic to see young people taking the lead in developing the Starting Point Crew. We have run new workshops and seen more young people developing skills and confidence. In Engage we developed our service to include new types of support as older people told us they wanted something a bit different to help them feel less lonely and more connected with their community. The women we support through Rahab were struggling to access some statutory support, so we have developed partnerships and outreaches that enable them to engage in a way that works for them. We have also developed volunteering opportunities with more of our beneficiaries going on to support others out of their own lived experience.

As we start 2025 we are continuing to work with our local communities to identify unmet needs and build high impact projects that enable people to thrive. We couldn’t do it without the commitment and kindness shown by our volunteers, staff, statutory and voluntary partnerships, local businesses, trusts and foundations, and community groups who are all part of the Mustard Tree team. Thank you for your part in this as we continue to plant hope and cultivate change in our community.

(Oar

Katherine Shepherd

2

Our projects

2024 in numbers fd

509 169 Service Volunteers Oo @ beneficiaries 214 24 O° People trained Partners 472 Outreach sessions °”

Our projects are driven by local people through the networks and partnerships we have built over the last 20 years.

ENGAGE BEFRIENDING

In 2024 we reached over 100 more people than last year. Supporting 509 people with our 169 volunteers alongside 24 partners. We also trained over 200 people.

Reducing isolation and loneliness by developing positive relationships and networks in our communities.

R AHAB

The Mustard Tree Foundation innovate and develop projects, working closely with people at the heart of our diverse community. Our mission is to:

Identifying and supporting sex workers to break free from the cycles of abuse, poverty and addiction.

• Reduce health and social inequalities,

STARTING POINT

• Build stronger and more connected communities

Providing mentoring and creative opportunities for young people aged 11–25 who face disadvantage.

• Give a voice to the unheard

Our work supports people to overcome barriers to inclusion and achievement by creating opportunities and reducing isolation, so people can thrive.

3

Reducing isolation and loneliness by developing positive relationships and networks in our communities.

THE YEAR IN NUMBERS:

There are may reasons why someone might become isolated and lonely and in 2024 we were there to help 160 people to connect with the community through tailored support.

The majority of our service beneficiaries are over 60 but we supported people from 34–99yrs.

Our work has included one-to-one befriending either in person or on the telephone through our team of volunteer befrienders. We also hosted a regular coffee morning and provided a monthly newsletter which you can view on our website

“ It’s something to look forward to each week when you’re on your own. It’s not easy getting old. We sit and chat and it breaks up the day.”

Engage client

4

Our regular drop-in

With the mayor at old people’s showcase event

The Engage team at the Christmas party

VOLUNTEERING

This year we developed a new service with our service beneficiaries who fed back that they would like to feel connected but in a more flexible way. Our new ‘connected’ service provides extra support for those that don’t want or need a befriender but like to be able to reach out to one of our coordinators when needed. We provide regular contact including supported access to our drop in.

Our volunteers are vital to the service we provide and do an amazing job. They offer all sorts of support including face to face visits, telephoning someone for a chat, and compiling and posting the newsletter out. We couldn’t support everyone we do without them.

Hear two of our volunteer befrienders talking about their experiences here: themustardtree. org/volunteer/#videos

“I forget that she’s from the befriending charity because I really consider her a friend now. It doesn’t matter how yuck I feel, or how tired I am, I can just go and she’ll accept me as I am.”

Engage client

5

Rahab is an outreach caring for on-street sex workers in Reading.

“You’re brilliant, because you are on our side”

Rahab service user.

THE YEAR IN NUMBERS

In 2024 we supported women to medical appointments, to access drug and alcohol support, to look for rehab, and to get accommodation during the very cold weather.

Our volunteers provided support for women who were homeless. They also made referrals to local charities for clothes and other essential items.

In 2024, we delivered training sessions to 63 individuals. Feedback reported how helpful the training had been in increasing awareness of the issues these women face.

6

Rahab also delivers sex worker awareness training to churches, other charities and organisations to increase awareness of the issues and ways in which they can support this vulnerable group.

During 2024 we had the privilege of recording one womans story of a journey out of sex worker and drug addiction, to see the video have a look at our website here.

In 2025 we are increasing this support, offering befriending, advocacy and daytime support.

We have begun to develop closer links with other agencies, some of them joining us on outreach, working together to make it easier for the women to access support.

We also offer to pray with the women, one who a child last year, currently in care regularly asks for prayer to get a place in mother and baby rehab.

The team have also supported R as she has reduced her drug use, started to look for rehab and felt ready to volunteer and give something back.

“You’re always there

when I need you” Rahab service user.

7

Providing mentoring and creating opportunities for young people aged 11–25 who face disadvantage.

STARTING POINT IN NUMBERS

• By providing a consistent role model, 90% of our young people engaged in mentoring saw an increase in their confidence.

• Navigators continued to provide young people in crisis a listening ear and a moment of connection. In 2024 we met 150 young people in the Royal Berkshire Hospital with the support of 20 volunteers across a total of 464 volunteer hours.

• Our Hub drop-in sessions provide the opportunity for young people to build new friendships and helping improve social skills. In 2024 we held over 100 sessions, with over 85% of young people attending saying The Hub gives them a reason to leave their house.

• Starting Point creative opportunities gave young people at local secondary schools the opportunity to work in a creative team. In 2024 we were involved in 7 creative projects with local partners such as Reading Borough Council and the NHS.

• In September 2024 we introduced AQA Unit Awards into our Creative Opportunities, giving the young people a chance to recognise their creative achievements. We had 16 awards achieved in our first term.

8

Creative Opportunities skills session

Ella (19) and Pheobe (19) both started attending

The Hub as they wanted to develop their confidence and social skills.

When Pheobe moved to the UK she struggled to form friendships in her new community. She relied on her family, which, coupled with her lack of confidence in her new area, impacted on her independence. She was unsure of how to navigate social situations outside of her family’s protective bubble.

Art at The Hub

Pheobe’s dependency on her parents began to decrease, as she felt more comfortable in her new environment. Together, they have encouraged each other with their goals, both getting involved in creative media workshops with Starting Point Studio and have achieved AQA awards – achieved by building up their social skills and confidence at The Hub.

Two of our Volunteer Navigators

“At the hub I’ve made friends in real life” Young person

*Names changed to protect young person’s identity.

Ella was also considerably socially isolated, and struggled with maintaining meaningful relationships with her peers – she found it challenging to engage with others and often felt disconnected from social groups.

Both girls initially connected at The Hub due to their similar interests in fashion games and art. This grew into a friendship, meeting up with each other in the community, outside of The Hub. Ella encourages Pheobe to explore the local community with her, frequenting local shops and cafes.

“my hub highlight is being able to laugh with people”

Young person

9

Our funders

We would like to thank the trusts, churches, individuals and organisations who have supported our work over the last 12 months. Without your partnership and generosity we would not have been able to provide our services to our local communities.

Abbey Baptist Church Berkshire Community Foundation Bishop Radford Brighter Futures for Children Caversham Good Neighbours Caversham Park Church Church Welfare Association Deloitte Earley Charity Edward Gostling Foundation Englefield Charitable Trust Garfield Weston Gerald Palmer Eling Trust Greyfriars Church John Lewis and Partners John Sykes foundation Kiriath Trust Lifespring Church

Mapledurham Bridge Club Maurice And Hilda Laing Norcot Mission Church Olly’s Work Pat Newman Memorial Trust Reading Borough Council Reading Integration Board Rotary Club Society of the Holy Child St James’s Place Charitable Foundation St Laurence Relief in Need Trust St Mary’s Purley Southall Trust Souter Charitable Trust Thames Valley Violence Prevention Partnership The Blagrave Trust The National Lottery Community Fund The Rank Foundation

10

THE MUSTARD TREE FOUNDATION (READING)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

For the year ended 31 December 2024

Trustees’ report Independent examiner’s report Statement of financial activities Statement of financial position Notes to the financial statements ,	12–14 15 16 17–18 19–33

Trustees

Mr M Penson (Chair) Dr J Hawkins OBE Mr K Potter Ms A Awuku Mr D Gibbons Mrs I Challis

CEO Ms Katherine Shepherd

Charity number 1104631 Company number 04986086

Principal address

4 Sackville Street, Reading, Berkshire RG1 1NT

Registered office 4 Sackville Street, Reading, Berkshire RG1 1NT

Independent examiner

Colin Dadswell FCA ACCA DChA

Caladine Limited, Chantry House, 22 Upperton Road, Eastbourne, East Sussex BN21 1BF

Bankers

HSBC Bank PLC, 26 Broad Street, Reading RG1 2BU

CAF Bank Limited, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ

11

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their annual report and financial statements for the year ended 31 December 2024.

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

Objectives and activities

The objects for which the Charity is established are:

• The relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage.

• To be a voice for, and to practically support, those, in local communities, who are disadvantaged by reason of age, bereavement, disability, education, exploitation, ill-health, isolation, poverty, unemployment, or other disadvantage. We do this by demonstrating integrity and expressing compassion to all, irrespective of circumstances, in accordance with the values of our Christian faith.

• To promote charitable purposes for the benefit of the community without distinction of age, disability,

gender, sexual orientation, race or of political or religious or other opinions, and in particular by:

• a) The promotion of improved health and wellbeing and the relief of poverty and distress.

• b) To provide or assist in the provision of facilities and services that empowers individuals todevelop personally, and to build stronger and more cohesive communities.

We continue to work to identify social needs that are not being met by existing provision, and underrepresented beneficiaries who face barriers to support. We partner with local communities, other charities, and organisations to create and develop high impact projects. Removing barriers to engagement and providing opportunities. We have also maintained our strategic presence on various boards to effect positive change for overlooked communities or individuals. By doing so we seek to:

• Reduce health and social inequalities.

• Build stronger more cohesive communities. Give a voice to the unheard.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The first section of the report has set out the achievements and impact of the charity over the year. Our projects are driven by local people and enhanced by our networks and partnerships.

We have a number of active commissioning partnerships involving multiple charities and statutory agencies and a working model that enables us to engage with ‘the hardest to reach’. Our strong reputation demonstrates that we deliver high impact services, collaborate effectively, and use our resources well.

Fundraising performance

Fundraising activities during the year

We are very grateful for the donations from our financial supporters (see pg 11 for details of our funders). Our services are funded by statutory bodies and charitable trusts, fundraising events and donations from organisations, churches and individuals. The charity does not work with any commercial partners for fundraising.

Volunteers

Many of our activities are carried out by our team of volunteers who live within the communities we serve and are often experts by lived experience. They provide befriending, mentoring, outreach, admin and prayer support. Our work would not be possible without them and we want to take this opportunity to recognise and thank them for all they do.

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TRUSTEES REPORT continued

Financial review

The charity received income amounting to £306,002 (2023: £489,828) and incurred expenditure £335,196 (2023: £434,330) leading to a deficit in the year of to £29,194 (2023: surplus of £55,498). Unrestricted reserves at the balance sheet date amounted to £149,653 (2023: £187,822). There were restricted funds amounting to £8,975 (2023: £nil) held at the balance sheet date.

We undertook a comprehensive review of our operations and organisational structure at the beginning of the year. The resulting restructure ensured our activities are optimised in line with local demand and changes in operational need.

Reserves policy

The Trustees have considered the level of reserves (that is those funds that are freely available) that the charity ought to have. The Trustees have set a reserves policy of at least 3 months of budgeted expenditure to bridge any funding gaps between spending on administrative and operational activities and resources received. They have also considered any additional obligations such as contracts. At the end of 2024 this amount was approximately £147k, which compared to current reserves held across designated and unrestricted funds of £149,653. The trustees have reviewed these and are satisfied with our current level of reserves. The trustees will continue to monitor the level of reserves to support the charity’s activities.

Structure, governance and management

The charity is constituted as a company limited by guarantee, registered under the Companies Acts, and its governing document is a Memorandum and Articles of Association under company legislation, dated 5 December 2003.

By operation of law all Trustees are Directors under the Companies Act 2006 and all Directors are Trustees under Charities legislation and have responsibilities, as such, under both company and Charity legislation. The Trustees are all individuals.

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

Mr M Penson (Chair) Dr J Hawkins OBE Mr K Potter Ms A Awuku Mr D Gibbons Mrs I Challis

Recruitment and appointment of trustees

The Mustard Tree Foundation seeks to attract new trustees with relevant skills and experience to ensure

a balanced and effective trustee board. We have recruitment and induction procedures in place so that each trustee is clear of the work of the charity, and the expectation of a trustee so that we are well governed and operating with best practice.

Induction and training of trustees

Trustees are encouraged to attend appropriate external training events that facilitate the undertaking of their role. They are also able to request training through the Chair, and arrangements will be made where appropriate and cost effective for the needs of the charity.

Statement of trustees’ responsibilities

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

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

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TRUSTEES REPORT continued

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

Mr M Penson (Chair) Trustee Date: 1 May 2025

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

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INDEPENDENT EX AMINER’S REPORT

TO THE TRUSTEES OF THE MUSTARD TREE FOUNDATION (READING)

I report to the trustees on my examination of the financial statements of The Mustard Tree Foundation (Reading) (the charity) for the year ended 31 December 2024.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• 1 accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.

• 2 the financial statements do not accord with those records; or

3 the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or

4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Colin Dadswell FCA FCCA DChA Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF Date: 1 May 2025

Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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STATEMENT OF FINANCIAL ACTIVITIES

INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024

		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds		funds	funds
		2024	2024	2024	2023	2024	2023
Income from:	Notes	£	£	£	£	£	£
Donations and legacies	3	104,086	199,089	303,175	178,807	306,354	485,161
Charitable activities	4	-	-	-	850	-	850
Investments	5	2,827	-	2,827	3,817	-	3,817
Total income		106,913	199,089	306,002	183,474	306,354	489,828
Expenditure on:
Raising funds	6	11,080	-	11,080	23,845	-	23,845
Charitable activities	7	134,002	190,114	324,116	104,131	306,354	410,485
Total expenditure		145,082	190,114	335,196	127,976	306,354	434,330
Net income/(expenditure) and movement in funds		(38,169)	8,975	(29,194)	55,498	-	55,498
Reconciliation of funds:
Fund balances at 1 January 2024		187,822	-	187,822	132,324	-	132,324
Fund balances at 31 December 2024		149,653	8,975	158,628	187,822	-	187,822

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

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STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2024

		2024		2023
Fixed assets	Notes	£	£	£	£
Property, plant and equipment	13		2,835		4,313
Current assets
Trade and other receivables	14	2,341		9,684
Cash at bank and in hand		221,923		232,924
		224,264		242,608
Current liabilities	15	(68,471)		(59,099)
Net current assets			155,793		183,509
Total assets less current liabilities			158,628		187,822
The funds of the charity
Restricted income funds	18		8,975		-
Unrestricted funds	19		149,653		187,822
			158,628		187,822

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2024.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise

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STATEMENT OF FINANCIAL POSITION continued

comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the trustees on 1 May 2025

Mr M Penson (Chair) Trustee Company registration number 04986086 (England and Wales)

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

Company information

The Mustard Tree Foundation (Reading) is a private company limited by guarantee incorporated in England and Wales. The registered office is 4 Sackville Street, Reading, RG1 1NT.

1.1 Accounting convention

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

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. This includes amounts disclosed as ‘designated funds’ representing monies allocated to projects run by the charity. These projects are partly funded by specified donations and partly by monies set aside out of unrestricted funds by the trustees for those projects.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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

1.4 Income

Income, whether from exchange or non-exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.

Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.

All income is accounted for gross, before deducting any related fees or costs.

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

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NOTES TO THE FINANCIAL STATEMENTS

continued

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

1.5 Expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.

Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increase in liabilities and is decreased by the utilisation of any provision within the period and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.

1.7 Impairment of non-current assets

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

1.8 Cash and cash equivalents

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

1.9 Financial instruments

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

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

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Items of PPE with a cost over £500 are capitalized and depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Fixtures and fittings 25% reducing balance Computers 25% straight line

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

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

Basic financial assets

Financial assets classified as other financial assets are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss includes any dividend or interest earned on the financial asset.

Other financial assets

Financial assets with fixed or determinable payments and fixed maturity dates that the charity has the positive intent and ability to hold to maturity are classified as held to maturity investments.

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NOTES TO THE FINANCIAL STATEMENTS

continued

Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. 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 financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/ (expenditure) for the year.

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 recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Basic financial liabilities

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

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

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in or in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

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

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 charity transfers 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 party that is able to sell the asset in its entirety to an unrelated third party.

1.10 Employee benefits

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

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NOTES TO THE FINANCIAL STATEMENTS

continued

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

1.11 Retirement benefits

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

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

1.12 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2 Critical accounting estimates and judgements

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

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

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NOTES TO THE	3 Income from donations and legacies
FINANCIAL STATEMENTS
continued		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds		funds	funds
		2024	2024	2024	2023	2023	2023
		£	£	£	£	£	£
	Donations and gifts	89,237	-	89,237	146,107	-	146,107
	Grants - Statutory and Trusts	14,849	199,089	213,938	32,700	306,354	339,054
		104,086	199,089	303,175	178,807	306,354	485,161
	Donations and gifts
	Donations Individuals	49,069	-	49,069	25,469	-	25,469
	Donations Churches	17,317	-	17,317	20,181	-	20,181
	Donations Trusts	21,550	-	21,550	98,394	-	98,394
	Gift aid recovered	1,301	-	1,301	2,063	-	2,063
		89,237	-	89,237	146,107	-	146,107

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NOTES TO THE	4	Income from charitable activities
FINANCIAL STATEMENTS			Unrestricted	Unrestricted
continued			funds	funds
			2024	2023
	Charitable activities		£	£
	Sale of goods	Sale of goods	-	850
	5	Income from investments
			Unrestricted	Unrestricted
			funds	funds
			2024	2023
			£	£
	Interest receivable
			2,827	3,817
	6	Expenditure on raising funds
			Unrestricted	Unrestricted
			funds	funds
			2024	2023
	Fundraising and publicity		£	£
	Staff costs		11,080	23,845

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NOTES TO THE	7 Expenditure on charitable activities
FINANCIAL STATEMENTS		Charitable	Charitable
continued		activities	activities
		2024	2023
	Direct costs	£	£
	Staff costs	243,301	306,838
	Depreciation and impairment	2,434	2,513
	Staff costs incl travel, subsistence, voluntary, training	3,746	6,160
	Property	27,161	36,251
	Office refurbishment	-	2,841
	Professional fees incl accountancy and IT support	16,160	18,099
	Other expenditure	4,236	6,041
	Postage and stationery	3,385	3,173
	Telecommunications	4,051	4,108
	Insurance	3,745	4,365
	Subscriptions	6,816	6,679
	Cleaning	3,577	5,034
	Sub-contractors	66	1,884
	Advertising, PR and fundraising	2,908	4,189
		321,586	408,175
	Share of support and governance costs (see note 8)
	Governance	2,530	2,310
		324,116	410,485
	Analysis by fund
	Unrestricted funds	134,002	104,131
	Restricted funds	190,114	306,354
		324,116	410,485

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NOTES TO THE	8 Support costs allocated to activities
FINANCIAL STATEMENTS		2024	2023
continued		£	£
	Governance costs	2,530	2,310
	Analysed between: Charitable activities	2,530	2,310
		2024	2023
	Governance costs comprise:	£	£
	Independent examination fees	830	710
	Accountancy	1,700	1,600
		2,530	2,310
	9 Net movement in funds
		2024	2023
		£	£
	The net movement in funds is stated after charging/(crediting): Fees payable for the independent examination of the charity’s financial statements	830	710
	Depreciation of owned property, plant and equipment	2,434	2,513
	10 Trustees
	None of the trustees (or any persons connected with them) received any
	remuneration or benefits from the charity during the year.
	There were no donations received from Trustees in the year (2023: £132).

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NOTES TO THE	11 Employees
FINANCIAL STATEMENTS		2024	2023
continued		Number	Number
	The average monthly number of employees during the year was:	12	16
		2024	2023
	Employment costs	£	£
	Wages and salaries	237,316	305,979
	Social security costs	12,904	18,874
	Other pension costs	4,161	5,830
		254,381	330,683

The majority of staff were part time. The average full-time equivalent was 6.29 (2023: 12). There were no employees whose annual remuneration was more than £60,000.

12 Taxation

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

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NOTES TO THE	13 Property, plant and equipment
FINANCIAL STATEMENTS		Fixtures and	Computers	Total
continued		fittings
	Cost	£	£	£
	At 1 January 2024	2,834	7,819	10,653
	Additions	955	-	955
	At 31 December 2024	3,789	7,819	11,608
	Depreciation and impairment
	At 1 January 2024	1,157	5,182	6,339
	Depreciation charged in the year	479	1,955	2,434
	At 31 December 2024	1,636	7,137	8,773
	Carrying amount
	At 31 December 2024	2,153	682	2,835
	At 31 December 2023	1,676	2,637	4,313
	14 Trade and other receivables
			2024	2023
	Amounts falling due within one year:		£	£
	Trade receivables		900	3,111
	Other receivables		404	823
	Prepayments and accrued income		1,037	5,750
			2,341	9,684

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NOTES TO THE	15 Current liabilities
FINANCIAL STATEMENTS			2024	2023
continued		Notes	£	£
	Other taxation and social security		59	4,747
	Deferred income	16	63,647	50,391
	Trade payables		1,606	1,151
	Accruals		3,159	2,810
			68,471	59,099
	16 Deferred income
			2024	2023
			£	£
	Other deferred income		63,647	50,391
	Deferred income is included in the financial statements as follows:
			2024	2023
			£	£
	Deferred income is included within: Current liabilities		63,647	50,391
	Movements in the year:
	Deferred income at 1 January 2024		50,391	177,349
	Released from previous periods		(50,391)	(177,349)
	Resources deferred in the year		63,647	50,391
	Deferred income at 31 December 2024		63,647	50,391
	The deferrals included in creditors relate to funding specified by the funders as relating to specific periods and represent those parts of unrestricted funds which relate to	Deferred income analysed by project is as follows: Rahab		£4,397
	periods subsequent to the accounting year end and are treated as grants in advance, or, alternatively, where there are conditions which must be fulfilled prior to entitlement	Starting point Engage		£43,724 £15,526
	or use of the unrestricted funds by the Charity.

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NOTES TO THE 17 Retirement benefit schemes FINANCIAL STATEMENTS continued

17 Retirement benefit schemes
	2024	2023
Defined contribution schemes	£	£
Charge to profit or loss in respect of defined contribution schemes	4,161	5,830

18 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations
and grants held on trust subject to specific conditions by donors as to how they
may be used.
	At 1 January	Incoming	Resources	At 31 December
	2024	resources	expended	2024
	£	£	£	£
Starting Point	-	110,636	(110,636)	-
Rahab Project	-	7,689	(7,689)	-
Engage Befriending	-	64,303	(64,303)	-
Creative Opportunities	-	15,961	(6,986)	8,975
Central Services	-	500	(500)	-
	-	199,089	(190,114)	8,975
	At 1 January	Incoming	Resources	At 31 December
	2023	resources	expended	2023
Previous year:	£	£	£	£
Starting Point	-	265,921	(265,921)	-
Rahab Project	-	433	(433)	-
Engage Befriending	-	40,000	(40,000)	-
	-	306,354	(306,354)

Projects undertaken by the Charity were partly funded through restricted grants. Restricted funding received as shown above was all expended during the year. The Trustees additionally allocated some general funds towards the projects to cover additional expenses as can be seen in note 19.

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NOTES TO THE FINANCIAL STATEMENTS

Note 18 (continued)

Engage Befriending

----- Start of picture text -----
continued
----- End of picture text -----

Connecting isolated, older people with their local community. Including through visits from a volunteer befriender.

Rahab Project

Offering support and advocacy to those involved in sex working.

Starting Point

Providing opportunities and journeying alongside young people aged 11-25. Enabling them to attain, sustain and thrive within education, employment, and training.

Creative Opportunities

A range of creative opportunities for young people who face barriers to achievement. These include: Starting Point Studio; Alternative Provision; Young Voices.

Continued overleaf >>

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NOTES TO THE FINANCIAL STATEMENTS

continued

19 Unrestricted funds

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

	At 1 January	Incoming	Resources	Transfers	At 31 December
	2024	resources	expended		2024
	£	£	£	£	£
Starting Point	79,503	50,946	(75,651)	(54,798)	-
Rahab Project	6,357	12,905	(18,241)	(1,021)	-
Engage Befriending	-	24,073	(24,433)	360	-
Creative Opportunities	-	14,849	-	(14,849)	-
General funds	101,962	4,140	(26,757)	70,308	149,653
	187,822	106,913	(145,082)	-	149,653
	At 1 January	Incoming	Resources	Transfers	At 31 December
	2023	resources	expended		2023
Previous year:	£	£	£	£	£
Starting Point	52,644	107,679	(37,420)	(43,400)	79,503
Rahab Project	5,486	18,325	(17,454)	-	6,357
Engage Befriending	1,336	28,117	(44,720)	15,267	-
General funds	72,858	29,353	(28,382)	28,133	101,962
	132,324	183,474	(127,976)	-	187,822

For descriptions of the various designated funds, see note 18.

Once any restricted funds received to support the various activities undertaken by the charity have been exhausted, remaining costs incurred on projects can be drawn from general unrestricted funds. Therefore, the Trustees decided the benefits of tracking designated funds for each project did not serve any practical benefit.

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NOTES TO THE	20	Analysis of net assets between funds
FINANCIAL STATEMENTS			Unrestricted	Restricted	Total
continued			funds	funds
			2024	2024	2024
	At 31 December 2024:	At 31 December 2024:	£	£	£
	Property, plant and equipment		2,835	-	2,835
	Current assets/(liabilities)		146,818	8,975	155,793
			149,653	8,975	158,628
			Unrestricted	Restricted	Total
			funds	funds
			2024	2024	2024
	At 31 December 2023:	At 31 December 2023:	£	£	£
	Property, plant and equipment		4,313	-	4,313
	Current assets/(liabilities)		183,509	-	183,509
			187,822		187,822
	21	Operating lease commitments

Lessee
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:
	2024	2023
	£	£
Within one year	16,000	16,000
Between two and five years	44,625	60,625
	60,625	76,625
22 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

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