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2025-09-30-accounts

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

Company registration number: 07368392 Charity registration number: 1140145

The Pen Foundation

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 30 September 2025

Nasir Rafiq Dua Governance Bradford Court 123-131 Bradford Street Digberth, Birmingham B12 ONS

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Contents

Reference and Administrative Details 1
Strategic Report 2
Trustees' Report 3 to 5
Statement of Trustees' Responsibilities 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 18

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Reference and Administrative Details

Trustees Mr El-Sadig Taha, Trustees and Directors Mr Wadah Qassim Mustafa Abdelmula, Trustees and Directors Ms Farha Patel, Trustees and Directors Mr Muhammad Hassan Hussein Principal Office 30 Campbell Court Campbell Road London N17 OAU Registered Office london Company Registration Number 07368392 Charity Registration Number 1140145 Independent Examiner Nasir Rafiq Dua Governance Bradford Court 123-131 Bradford Street Digberth, Birmingham B12 ONS

Page 1

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Strategic Report for the Year Ended 30 September 2025

The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 30 September 2025, in compliance with s414C of the Companies Act 2006.

Achievements and performance

During the year, The Pen Foundation continued to advance its charitable objects by developing its vision of establishing a community hub centred on Islamic learning, worship and community engagement. Significant progress was made in expanding its library collection, which now comprises more than 3,000 books in Arabic, English and French across a broad range of Islamic disciplines, providing an important educational resource for students, researchers and the wider community.

The charity continued to promote greater understanding of the life and teachings of the Prophet Muhammadﷺ through educational initiatives and public engagement, while furthering plans for a welcoming centre incorporating a mosque, library and learning facilities that will serve people of all faiths and backgrounds. The Trustees remain encouraged by the continued support of donors, volunteers and the wider community, which has strengthened the Foundation's ability to pursue its long-term strategic objectives.

Financial review

During the period, the charity received total income of 472.9k (2024: £34.3k). After incurring payments of £43.8k (2024: £20.5k). The charity had a net income of £429.1k (2024: Net movement in fund £13.8k)

During the year, the charity recived a one off donation of £300k for establishing a Heritage Centre/Library dedicated to our beloved Prophet Muhammedو .ﻢﻠﺳ ﻋﻠﯿﮫ ﷲ ﺻﻠﻰ

The carried forward funds balance stood at £615.1k (2024: £186k).

Policy on reserves

The trustees believe that the charity has sufficient cash in the bank and adequate fund-raising plans in place to ensure the charity is able to meet its costs.

Principal risks and uncertainties

Risk Management

The trustees have assessed the risks the charity faces and have drawn up a risk matrix which identifies the major risks by area of activity, the nature of those risks, the likelihood of the risks occurring and the measures taken to manage them. The trustees review this risk matrix regularly at their meetings. The trustees are satisfied that systems are in place, and arrangements are in hand, to manage the risks that have been identified.

29 June 2026

The strategic report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mr El-Sadig Taha Trustee

Page 2

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 September 2025.

Objectives and activities

Objects and aims

To establish a Library and a Heritage Centre dedicated to the life and teachings of Prophet Muhammad, and to educate the public about the Islamic faith and promote mutual respect through interfaith work.

To promote religious harmony for the benefit of the public by (A) educating the public in the common ground between different religious beliefs to promote good relations between persons of different faiths, (B) Promoting interfaith dialogue through knowledge and mutual understanding and respect of the beliefs and practices of different faiths.

Our objectives are set to reflect our faith and community aims. Each year our trustees review our objectives and activities to ensure they continue to reflect our aims. In carrying out this review the trustees have considered the Charity Commission’s general guidance on public benefit and in particular its supplementary public guidance on the advancement of religion for the public benefit.

Public benefit

The section of this report below entitled ‘Objectives and activities’ sets out the objects and aims of the charity. The trustees have considered this, in conjunction with the guidance contained in the Charity Commission’s general guidance on public benefit, and have concluded that:

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Structure, governance and management

Nature of governing document

The organisation is a charitable company limited by guarantee, incorporated on 7 September 2010 and registered as a charity on 1 February 2011. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

Recruitment and appointment of trustees

The existing trustees are responsible for the recruitment of new trustees. In selecting new trustees, we seek to identify people who regularly attend events and functions organised by the charity and are willing to volunteer to help in our broader community work.

Page 3

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Trustees' Report

Induction and training of trustees

Following appointment, new trustees are introduced to their new role and given copies of the Memorandum of Association and a guide to the policies and procedures adopted by our charity. A number of publications from the Charity Commission are also provided including the guidance on charities and public benefit and on the advancement of religion for the public benefit. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act.

A number of volunteers attend regularly on a rota basis and assist with the collection of books and fund raising activities.

Organisational structure

The charity directors otherwise known as trustees are responsible for the general control and management of the charity. The Trust has 2 Trustees appointed for life. The charity trustees are responsible for the general control and management of the charity. The trustees give their time freely and receive no remuneration or other financial benefits.

The trustees meet every month to find reliable ways to generate income, find grants and to manage the affairs of the charity.

The trustees are responsible of setting strategies and policies for ensuring these are implemented.

Major risks and management of those risks

Risk Management

The trustees have assessed the risks the charity faces and have drawn up a risk matrix which identifies the major risks by area of activity, the nature of those risks, the likelihood of the risks occurring and the measures taken to manage them. The trustees review this risk matrix regularly at their meetings. The trustees are satisfied that systems are in place, and arrangements are in hand, to manage the risks that have been identified.

Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Page 4

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Trustees' Report

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.

Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

29 June 2026

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mr El-Sadig Taha Trustee

Page 5

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Statement of Trustees' Responsibilities

The trustees (who are also the directors of The Pen Foundation for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

29 June 2026

Approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... Mr El-Sadig Taha Trustee

Page 6

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Independent Examiner's Report to the trustees of The Pen Foundation

I report to the charity trustees on my examination of the accounts of the charity for the year ended 30 September 2025 which are set out on pages 8 to 18.

Respective responsibilities of trustees and examiner

As the charity’s trustees of The Pen Foundation (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

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

Independent examiner’s statement

Since The Pen Foundation's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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:

  1. accounting records were not kept in respect of The Pen Foundation as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

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

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

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

...................................... Nasir Rafiq ICAEW

Dua Governance Bradford Court 123-131 Bradford Street Digberth, Birmingham B12 ONS

29/06/2026 Date:.............................

Page 7

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Statement of Financial Activities for the Year Ended 30 September 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Total income
Expenditure on:
Raising funds
4
Charitable activities
5
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
11
Income and Endowments from:
Donations and legacies
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
172,919		 Restricted
funds
£
300,000
300,000
-
-
-
300,000
300,000
-
300,000
Unrestricted
funds
£
34,300
34,300
(20,496)
(20,496)
13,804
13,804
172,259
186,063		 Restricted
funds
£
300,000		 Total
2025
£
472,919
172,919 300,000 472,919
(11,229)
(32,607)		 -
-		 (11,229)
(32,607)
(43,836) - (43,836)
129,083 300,000 429,083
129,083
186,063		 300,000
-		 429,083
186,063
315,146 300,000 615,146
Note
3
5
11		 Total
2024
£
34,300
34,300
(20,496)
(20,496)
13,804
13,804
172,259
186,063

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 is shown in note 11.

Page 8

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

(Registration number: 07368392) Balance Sheet as at 30 September 2025

Note
Current assets
Cash at bank and in hand
9
Creditors: Amounts falling due within one year
10
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
11		 2025
£
616,647
(1,501)
615,146
300,000
315,146
615,146		 2024
£
186,063
-
186,063
-
186,063
186,063

For the financial year ending 30 September 2025 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

29 June 2026The financial statements on pages 8 to 18 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Mr El-Sadig Taha Trustee

Page 9

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

1 Charity status

The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.

The address of its registered office is: london

The principal place of business is: 30 Campbell Court Campbell Road London N17 OAU Authorised for issue date

2 Accounting policies

Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

The Pen Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Page 10

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 11

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:

1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);

2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Page 12

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 13

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Debt instruments

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Page 14

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

3 Income from donations and legacies

Donations and legacies;
Donations from companies, trusts
and similar proceeds
Donations from individuals
Gift aid reclaimed		 Unrestricted
funds
General
£
-
86,064
86,855
172,919		 Restricted
funds
£
300,000
-
-
300,000		 Total
2025
£
300,000
86,064
86,855
472,919		 Total
2024
£
-
34,300
-
34,300

4 Expenditure on raising funds

a) Costs of generating donations and legacies

Costs of generating donations and legacies Allocated
support costs
£
11,228		 Total
2025
£
11,228

Page 15

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Rent
Book Storage
Accountancy
Islamic Help
Sultan Bahu Trust
Zakat		 Activity
undertaken
directly
£
-
-
-
1,600
10,500
6,800
18,900		 Activity
support costs
£
7,538
3,595
2,574
-
-
-
13,707		 Total
2025
£
7,538
3,595
2,574
1,600
10,500
6,800
32,607		 Total
2024
£
7,756
3,228
1,512
8,000
-
-
20,496

£Nil (2024 - £Nil) of the above expenditure was attributable to unrestricted funds and £Nil (2024 - £Nil) to restricted funds.

6 Analysis of governance and support costs

Governance costs

Independent examiner fees
Examination of the financial statements
7
Independent examiner's remuneration
Examination of the financial statements		 Unrestricted
funds
General
£
2,574
2,574		 Total
2025
£
2,574
2,574
2025
£
2,574		 Total
2024
£
1,512
1,512
2024
£
1,512

8 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 16

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

9
Cash and cash equivalents
Cash at bank
10 Creditors: amounts falling due within one year
Other creditors
Accruals
11 Funds
Unrestricted funds
General
Restricted funds
Total funds		 Balance at 1
October 2024
£
186,063
-
186,063		 Incoming
resources
£
172,919
300,000
472,919		 2025
£
616,647
Resources
expended
£
(43,836)
-
(43,836)		 2024
£
186,063
2025
£
1
1,500
1,501
Balance at 30
September
2025
£
315,146
300,000
615,146

Page 17

Docusign Envelope ID: 4380DE00-31DF-8B51-822E-1601239C19C4

The Pen Foundation

Notes to the Financial Statements for the Year Ended 30 September 2025

Unrestricted funds
General
12 Analysis of net assets between funds
Current assets
Current liabilities
Total net assets		 Balance at 1
October 2023
£
172,259		 Incoming
resources
£
Resources
expended
£
34,300
(20,496)
Unrestricted funds
General
£
Designated
£
316,647
300,000
(1,501)
-
315,146
300,000		 Balance at 30
September
2024
£
186,063
Total funds
at 30
September
2025
£
616,647
(1,501)
615,146

Page 18