**Charity Registration No. 1118590**
## **MUCHLOVED CHARITABLE TRUST**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
# **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **MUCHLOVED CHARITABLE TRUST**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
Mr J Davies Mr J H Lomax Mr A Daniels
**Charity number Principal address**
1118590 Nash House, Repton Place White Lion Road Amersham Buckinghamshire HP7 9LP
## **Independent examiner**
Chapman Worth Limited 3 The Old Estate Yard High Street East Hendred Wantage Oxfordshire OX12 8JY
## **MUCHLOVED CHARITABLE TRUST**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Statement of financial position|5|
|Notes to the financial statements|6 - 11|
## **MUCHLOVED CHARITABLE TRUST**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees present their report and accounts for the year ended 31 December 20 20 .
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016).
## **Objectives and activities**
The charity's objects are the relief of any persons who have suffered bereavement, particularly the death of a family member or friend, by providing or assisting in the provision of bereavement support, advice and counselling.
The policies adopted in furtherance of these objects are to work with partners providing at-need bereavement services in the funeral and charity sectors as well as bereaved users directly and there has been no change in these policies during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
During the year the main activity has been the provision of a remembrance website service tailored to the specific needs of bereaved people, plus a bereavement support resource centre.
## **Public Benefit Statement**
MuchLoved Charitable Trust has carried out its duty with regard to the public benefit and the objectives of the charity.
## **Achievements and performance**
There has been a significant increase in demand and use of the bereavement tribute website service, particularly as a result of social distancing restrictions introduced as a result of the pandemic. During the year over 36,000 new Tribute sites have been created with over 100,000 virtual candles lit and £11million donated to good causes in memory of loved ones.
During the year we have further developed charitable in-memory giving and we now run Tribute Fund partnerships with nearly 200 UK charities. We have also looked to develop existing funereal partnerships and are now working with over 500 funeral director branches across the UK providing a personalised funeral tribute service for their families.
We also carried out training workshops, moving to online webinars due to the pandemic, including various bereavement training sessions and an annual Partner event.
We also continued to upgrade our bereavement services including a new Dedication Page offering and online GriefChat counselling, as well as introducing new features such as Virtual Gifts and upgrading the platform server infrastructure.
## **Financial review**
The charity holds sufficient unrestricted cash funds to cover fluctuations in receipts and expenditure and has been working to increase income over the year primarily through partnerships with charities and funeral directors.
The operating costs of the charity are covered through a combination of partner subscriptions and a small fee
for processing donations.
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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MUCHLOVED CHARITABLE TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF MUCHLOVED CHARITABLE TRUST
I report to the Iruslees on my examinatlon of the financial statements of Muchloved Charitable Trust1th8
¢harityl lor the year ended 31 December 2020.
Re6ponslbllltles and basis ol report
As the trustees of the charity you are responsible lor the preparation of the fin8ncial statements in
accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my éxamination of the charity's financial statements carried out undor $8clion 145 of
the 2011 Act. In carrying out my examination I have followed all the applicable Directions givon by the
Charity Commission under section 14515}Ib} of th9 2011 Act.
Independtnt examinerfs statement
Sincè the charity's gross income 6x¢e8d8d £250,000 your examinèr must be a member of a body lisltrd in
section 145 01 the 2011 Act. I confimi that l am qualified to undertake the èxamination because l am a
member of ICAEW. which is ong of the listed bodies.
Your attention 18 drawn to the fact that thè Charity has prepared finanoal statements in accordance wllh
Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting
Siandard applicable in Ihe UK and R8public of Ireland IFRS 1021 in preference to the Accounting and
Reporting by Charitiès.. Statement of Recommèndèd Practice issued on 1 April 2005 which is referred to in
the exlanl regulations but has now been withdrawn.
l understand that this has been done in order for financial slalements to provide a true and fair view in
accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or
after 1 January 2015.
I have wmpleled my examination. I confirm that no matters havo comè lo my allenkn'on in connection wSlh
the examination giving me cause to believe that in any material respect..
accounting COrdS were not kept in respeet of the charity as required by soetion 130 of the 2011 Act.,
or
the financial statements do not accord with those records., 01
the financial st8tements do not comply with th8 applicable requiremanls concerning the fomi and
conlenl of accounts sel out in the Charllies (Accounts and Reportsl Regulations 2008 other than any
raqLJirèmenl that the accounts givo a true and fair view which is not a matter considered as part of an
independent examination.
I have no conc8ms and have Come across no other mattèr8 in connection with the examination lo which
attention should be drawn in this report in order lo enable a proper understanding of the financlal statements
lo be reached.
Anna Chapman
Chapman Worth Limited
3 The Old Estate Yard
High Street
East Hendred
Wanlage
Oxfordshire
OX12 8JY
Dated:
## **MUCHLOVED CHARITABLE TRUST**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2020**|2019|
||**Notes**|
**£**|**£**|
|**Income from:**||||
|Donations and legacies|**3**|58,119|58,000|
|Charitable activities|**4**|765,510|459,856|
|**Total income**||823,629|517,856|
|**Expenditure on:**||||
|Charitable activities|**5**|645,232|500,696|
|**Net income for the year/**||||
|**Net movement in funds**||178,397|17,160|
|Fund balances at 1 January 2020||13,798|(3,362)|
|**Fund balances at 31 December 2020**||192,195|13,798|
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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##
##
|||2020|2019||
|---|---|---|---|---|
||NotestEt€.||||
|Fixed assets|||||
|Tangible assets|I|5,206||7,751|
|Current assets|||||
|Debiors|10|100,250|111,099||
|Cash at bank and inhand||1,975,898|531,517||
|||2,A76,148|642,616||
|Creditors: amountsfallingduewithin
one year|1',t|(1,889,159)|(636,569)||
|Net current assets||186,989||6,047|
|Totalassetslesscurrent liabilities||192,195||13,798|
|||:|||
|lncomefunds|||||
|Unrestricted funds||192,195||13,798|
|||192,195||13,798|
**MUCHLOVED CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
Muchloved Charitable Trust is an unincorporated charity registered with the Charities Commission for England and Wales.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's governing document, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2016). 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 have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts 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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
- 6 -
## **MUCHLOVED CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Resources expended**
All expenditure is recognised on an accruals basis. Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be reliably measured. Expenditure is categorised under the following headings:
-Expenditure on charitable activities includes the costs of activities undertaken to further the purpose of the charity.
-Support costs are those costs incurred during activities that are no directly associated with the purpose of the charity.
-Governance costs are the costs associated with the governance arrangements of the charity.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment 33.3% straight line Computers
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 net income/(expenditure) for the year.
## **1.7 Impairment of fixed 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.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 7 -
**MUCHLOVED CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Donations and gifts|58,119|58,000|
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## **MUCHLOVED CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **4 Charitable activities**
|**Partner**
**subscriptions**
**Donation**
**Processing**
**fees**
**Tribute**
**storage space**
**£**
**£**
**£**
Sales within charitable activities
321,994
-
2,288
Services provided
-
441,228
-
321,994
441,228
2,288
**5**
Staff costs
Charitable expenditure
Share of support costs (see note 6)
Share of governance costs (see note 6)|**Total**
**2020**
**£**
324,282
441,228
765,510
**2020**
**£**
150,364
438,008
588,372
55,260
1,600
645,232|**Total**
**2019**
**£**
276,114
183,742
459,856
**2019**
**£**
38,696
397,881
436,577
62,219
1,900
500,696|
|---|---|---|
||||
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## **MUCHLOVED CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **6 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Depreciation
7,625
-
Marketing and exhibitions
8,832
-
Office consumables
4,586
-
Rent
14,963
-
Telephone and utilities
3,804
-
Insurance
1,202
-
Repairs
5,071
-
Professional fees
4,791
-
Bank charges
1,960
-
Miscellaneous
2,426
-
Accountancy fees
-
1,600
55,260
1,600
Analysed between
Charitable activities
55,260
1,600|**2020**
**£**
7,625
8,832
4,586
14,963
3,804
1,202
5,071
4,791
1,960
2,426
1,600
56,860
56,860|**2019 .**
**£**
6,846
23,586
4,088
15,080
3,900
1,794
-
-
1,793
5,132
1,900
64,119
64,119|
|---|---|---|
Governance costs includes payments to the independent examiner of £ 1,600 (2019 £1,560).
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year and expenses reimbursed, for travel and office costs, to trustees totalled £6,405 for the year ended 31 December 2020 (2019- one trustee w as reimbursed £ 2,942 ).
## **8 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
7
**2020**
**£**
141,103
6,933
2,328
150,364|**2019**
**Number**
2
**2019**
**£**
38,035
-
661
38,696|
|---|---|---|
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**MUCHLOVED CHARITABLE TRUST**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **8 Employees**
## **(Continued)**
## **9 Tangible fixed assets**
|**Cost**
At 1 January 2020
Additions
At 31 December 2020
**Depreciation and impairment**
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
**Carrying amount**
At 31 December 2020
At 31 December 2019
**10**
**Debtors**
**Amounts falling due within one year:**
Debtors
Other debtors
**11**
**Creditors: amounts falling due within one year**
Other taxation and social security
Creditors
Other creditors
Accruals and deferred income|**Fixtures,**
**fittings &**
**equipment**
**£**
3,458
2,508
5,966
1,910
1,661
3,571
2,395
1,547|**Computers**
**£**
17,101
2,571
19,672
10,897
5,964
16,861
2,811
6,204
**2020**
**£**
55,724
44,526
100,250
**2020**
**£**
18,069
17,216
1,835,338
18,536
1,889,159|**Total**
**£**
20,559
5,079
25,638
12,807
7,625
20,432
5,206
7,751
**2019**
**£**
36,612
74,487
111,099
**2019**
**£**
11,365
4,066
544,047
77,091
636,569|
|---|---|---|---|
## **12 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
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