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2024-12-31-accounts

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2024

Company Number: 07603317 Charity Number: 1142426

CONTENTS
Trustees, Officers
and Advisers
Introduction from Chair
of the Trustees
2
3
Report of the Trustees
4
 Review of 2024
5
 Future plans
13
 Delivering public
benefit
17
 Structure,
Governance and
Management
14
 Financial Review
17
 The Trustees’
Responsibility for
preparing Annual
Financial
Statements
18
Independent
Auditor’s Report
19
Statement of
Financial Activities
23
Balance Sheet
24
Statement of Cash
Flows
25
Notes to the Financial
Statements
26		 TRUSTEES, OFF
Chair
Sue Chalkley OB
The Rev’d Jessic
10.02.2025
Trustees
The Rev’d Cathe
The Rev’d Canon
Brownto 18.09.20
The Very Rev’d R
Govender
The Rev’d Katie
The Rev’d Canon
from 25.02.2025
Catriona Roberts
25.02.2025
The Rev’d Dr Rich
Faith Advisory P
Imam Qari Asim
Dan Bacall
Darcy Biddulph
Muna Chauhan
Sanjay Jagatia
Rabbi Nicky Liss
Manchandan Ka
Navdeep Singh
The Rev’d Dr Ric
Sarwat Tasneem
Registered office		 ICERS AND ADVISERS
Eto 10.02.2025
a Fosterfrom
rine Allison
Dr Malcolm
24
ogers
Hodkinson
Jenny Ramsden
onfrom
ard Sudworth
anel

ur Sandhu
hard Sudworth
to February 2024
Principal Officers
The Rt Rev’d Rob Wickham,
Group CEO
The Rev’d Adam Edwards,
Group Deputy CEO
The Rev’d Elizabeth Carnelley,
Director of Partnerships
Sarah Wallace BEM,Director
of Programmes and Innovation
Vinyo Aidam,Director of
Finance and Governance
Advisers
Bank –
National Westminster Bank
Plc
Victoria (B) Branch
PO Box 1357
169 Victoria Street
London SW1E 5NA
Auditors –
Forvis Mazars LLP
6 Sutton Plaza
Sutton Court Road
Sutton
Surrey SM1 4FS
Solicitors –
Legal advice is provided by:
Anthony Collins Solicitors LLP
134 Edmund Street
Birmingham B3 2ES

RS
Oval Way, London SE11 5RR
d by guarantee.
er 7603317
y number 1142426

NEAR NEIGHBOU
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2

INTRODUCTION FROM CHAIR OF THE TRUSTEES

Over the last fourteen years Near Neighbours has been building stronger, more cohesive communi�es in which people of all backgrounds can belong, connect and contribute. Near Neighbours works in diverse areas across England, in communi�es that have been impacted by economic inequali�es, racial and cultural tensions, segrega�on and social fragmenta�on. The Near Neighbours ethos ‘bringing people together’ underpins our programmes, nurturing rela�onships across lines of faith and ethnicity. Our work develops local leaders and builds capacity, collabora�on and trust between diverse community groups, to improve and strengthen the communi�es they live in.

This year (2024) we had a condensed amount of �me to work in, receiving our next tranches of funding very late in the autumn of 2023, to March 31[st] 2024, and again in the late autumn of 2024, for work un�l March 31[st] 2025, and this has made planning difficult. Despite this we achieved our targets as planned, and exceeded many of them. We were able to pilot new work in two areas – Liverpool and Middlesbrough – in 24/25, and we hope to con�nue this work, funding permi�ed. These were areas affected a lot by the riots of the summer of 2024, targe�ng asylum seekers and people from diverse backgrounds, which caused a great deal of distress and hurt in many of our communi�es, and we have reflected a great deal on these events, as they have emphasised the real need for this kind of work, building communi�es across divides of ethnicity and faith.

The CUF team successfully administered the government’s Windrush Day grants scheme again, which we have done since it began in 2019 (with Near Neighbours branding). The Windrush Day Grant Scheme is an initiative to commemorate and celebrate the contributions of the Windrush generation and their descendants in the United Kingdom. The scheme offers grant funding for impactful projects that educate people about the Windrush story and foster pride in the contributions made by UK Caribbean communities.

On behalf of the Trustees, I would like to thank the team who have worked so hard in such challenging circumstances to deliver a positive year for Near Neighbours. Thank you too to our Faith Advisory Panel, which continues to provide added accountability to our organisation that serves communities across faiths and beliefs.

The Rev’d Jessica Foster, Chair of Trustees

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REPORT OF THE TRUSTEES FOR THE YEAR TO 31 DECEMBER 2024

The Trustees present the Annual Report and Financial Statements of the charity 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 Memorandum and Articles of Association, the Companies Act 2006 and Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their Financial Statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland effective 1[st] January 2019.

OBJECTIVES AND ACTIVITIES

Near Neighbours (NN) was created by the Church Urban Fund (CUF) and the Archbishops’ Council of the Church of England following the award of £5m by the Department for Levelling Up, Housing and Communities (formerly MHCLG - Ministry of Housing, Communities and Local Government) in March 2011. Since then, further grants have been received. We anticipate receiving further government funding this year (2025). NN has a small amount of trust funding and National Lottery funding for our Catalyst young leaders’ programme

The Near Neighbours programme works to bring people together in communities that are religiously and ethnically diverse, so that they can get to know each other better, build relationships of trust and collaborate on initiatives that improve the local community they live in.

The charity aims to strengthen personal relationships and at the same time strengthen civil society, to create a more cohesive society where people live together respecting the differences they have with others and building a flourishing life together.

The programme has operated in the last year in Birmingham, Leicester, Liverpool, Luton, Middlesbrough, Nottingham, West London, West Yorkshire, and Lancashire.

Our main objectives:

There are currently four main strands to the Near Neighbours work:

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We also support the work of Places of Welcome , building a network of local centres where people find support and a warm welcome, and can contribute and participate.

REVIEW OF 2024

Local Hub development:

Mobilising grassroot communi�es to engage in and transform society.

The Near Neighbours’ regional hubs are the founda�on of our work and foster strong networks of faithbased and community organisa�ons. Our coordinators have a wealth of exper�se and rela�onships with grassroots organisa�ons and statutory bodies, mobilising collabora�on between faith communi�es. This has been par�cularly important in the light of tensions in the Middle East, with coordinators a�uned to the needs of their communi�es. The understanding of the local complexity of faith groups, their faith, geography, history and local tensions enables Near Neighbours hubs to build cohesion and to stand against extremism and hate crime.

Over the year our local hubs facilitated 86 new partnerships between a range of organisa�ons including churches, mosques, synagogues, other places of worship, schools and colleges, voluntary sector organisa�ons, and statutory agencies

Example: Communi�es engaging construc�vely with statutory services or policy makers.

In Leicester, our hub coordinator was key in brokering a connec�on between the Leicester, Leicestershire and Rutland Integrated Care Board and Bishop of Leicester’s Social Policy advisor and communica�ons lead. This began at a networking event in March 24 organised by the LLR ICB's mental health and social prescribing team and hosted at the Wesley Hall Community Centre. An introduc�on made by our coordinator in bringing representa�ves from the two organisa�ons together has enabled the Diocese of Leicester to share with 320 Anglican churches the opportuni�es inherent in including their services . This has ensured an avenue by which to increase the reach of grassroots ini�a�ves by pla�orming the resources and ac�vi�es available at local churches and encourage informa�on sharing to meet local needs.

equipping volunteers to serve their communi�es. In 2024 our hubs mobilised 802 volunteers. Together, these individuals contributed approximately 29,809 hours of their �me to strengthening their communi�es.

Equipping emerging leaders: Near Neighbours training and events: Enabling faith and community leaders to build their capacity and to engage with those in other faith and community groups and statutory services.

Near Neighbours recognises the importance of inves�ng in emerging local leaders to strengthen community cohesion and increase the diversity of civil society. A main outcome of our work is to ‘increase leadership capacity of women, young people, and people from underrepresented groups’. The

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have been developed by our learning from over a decade to engage par�cularly with these target groups.

with skills in storytelling, partnership building, designing effec�ve campaigns, leadership, and teamwork. The programme focuses on developing emerging local leaders from diverse backgrounds. Highly skilled facilitators worked across hubs in the spring of 2024, bringing 21 par�cipants together online and crea�ng opportuni�es to share experiences and learning from different backgrounds and contexts. All par�cipants who completed the feedback form reported that they had had a conversa�on with someone of a different ethnicity and strongly agreed that the LFEC experience had helped them learn something new about a culture or religion different to their own. All who responded reported that they now feel more confident that they can make a difference in their community. The course par�cipants had a diversity of gender, faith and ethnicity; 17 of 21 were from backgrounds other than English such as African, Hispanic, Caribbean and Bangladeshi.

learned to have mental clarity and develop strength within myself while talking and addressing different people from all walks of life” and “that self-interest can be a powerful resource to bring people together, and the importance of storytelling to do this.”

Par�cipants also shared a number of prac�cal steps they will take as a result of their LFEC experience. These included “leading a workshop at my church” and “I want to be involved in leadership programme, and be able to teach others, bring the goodness out of them and contribute to their be�erment as it is part of my be�erment.” Iden�fying prac�cal next steps mo�vated by the LFEC experience highlights further impact of the programme and indirect beneficiaries as leaders involved as par�cipants share their skills. The post course survey response received are a posi�ve indicator that the training has increased leadership capacity by building the knowledge and confidence of par�cipa�ng grassroots leaders.

Catalyst

leadership in a diverse society. Through a series of dynamic, interac�ve sessions, Catalyst students are equipped in four key areas:

  1. Developing a posi�ve iden�ty (integra�ng faith and ethnicity)

  2. Exploring leadership

  3. Building skills in media and communica�on

  4. Planning social ac�on for posi�ve change.

The course engages highly diverse groups of young people, the majority of whom have not previously par�cipated in a leadership development programme. In 2024 Near Neighbours delivered four Catalyst courses in East London, West Yorkshire, and in Birmingham, contribu�ng to increased leadership capacity of 88 young people including people from underrepresented groups. Students reported that they valued the opportunity to “find out about other people’s opinions”; “talk to others about my personal experiences”; “develop the confidence to speak publicly”; “make new friends”; and “learn how to become a successful leader.”

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At the end of the course, 80 % of students said that they are be�er prepared to take a more ac�ve leadership role in their community. The programme equipped young people of diverse backgrounds (including Filipino, Bangladeshi, Black African, Pakistani, Indian, mul�-ethnic, Arab, and white backgrounds including Eastern European) with greater confidence and leadership capacity.

communica�on skills. I feel more confident in myself and what I believe in. It has given me hope that change can take place, however many 'baby steps' must happen to do so.” Another par�cipant commented: “I really enjoyed listening and learning about other people's opinions and views, and understanding why they think what they do.” All par�cipants reported that they now have a be�er understanding of how to influence decisions in their local area. All par�cipants said they would recommend Catalyst to other young people.

3 ac�ve Catalyst Alumni projects were supported in 2024:

  1. £2k grant award to BEY Catalyst alumni to start the Soul Sanctuary, a youth group for Muslim teenagers that provides space for them to connect and contribute to the community through various ini�a�ves.

  2. £3k grant award to Belle Vue Girls School (BDAT) Catalyst alumni to commission two local ar�sts to design a mural for the local sports centre that will represent and celebrate the diverse community. 3. £1k grant award to Oaklands School Catalyst alumni to support their work with a local residen�al home to start an intergenera�onal gardening project

are amplified to policy makers and statutory bodies to iden�fy poten�al solu�ons.

In the period January – March 2024 Near Neighbours ran nine Real People Honest Talk (RPHT) small conversa�ons, and one Big Conversa�on in Leicester, reaching 59 people. The three small conversa�on groups created spaces where local people could raise concerns, have honest conversa�ons, and begin to iden�fy solu�ons to share with policy makers.

the local rela�onships our Leicester hub hold made it possible to run a smaller programme.

backgrounds. This group raised concerns about li�er and an�social behaviour in a local park. While they were ini�ally scep�cal about the possibility of change, over the course of the three sessions they realised that there were more people willing to help move towards a solu�on than they had ini�ally thought. The group facilitator reflected: “Some of them felt 'heard' for the first �me. Some realised that they were not the only ones having no�ced par�cular issues.” The concerns and ideas of the group were shared with the local councillor at the Big Conversa�on.

The second small conversa�on group included people of Caribbean, South Asian, and white Bri�sh heritage, most of whom were vulnerably housed or homeless. For this group, the key issues discussed were increasing poverty in the community, a sense of not having anywhere to go to get advice, and concerns about fly �pping. One important outcome for this group of vulnerable individuals was the

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experience of being heard in the context of an honest conversa�on. Through the facilitated process, group members grew in their capacity to listen to each other. A second key outcome was recogni�on, through conversa�on with each other, that there are in fact places to get advice but that these need be�er signpos�ng.

The third group consisted of residents of a local estate who were concerned about the poor condi�on of the shops on their estate and the resultant an�-social behaviour. Over the course of their three conversa�ons, group members learned from each other more about the history of their estate, the social divisions within it, and what their shared concerns are. As a result of their discussions, they have taken a number of ac�on steps, including arranging a mee�ng with the local councillor, organising a li�er pick around the shops, and planning an event for young people.

The Big Conversa�on brought together par�cipants of the small conversa�on groups with local policy makers in order to voice concerns and discuss solu�ons. Par�cipants in the Big Conversa�on reflected that they valued “mee�ng new people and hearing about how I can play a part in improving the area” and “hearing solu�ons other groups have come up with that we can adapt to our situa�ons.”

Fast Track Grant Programme:

Mobilising grassroot communi�es to engage in and transform society.

Near Neighbours supports grassroots initiatives that bring people together to foster inclusion and social cohesion. Grants, funded by the Ministry of Housing, Communities and Local Government (Department for Levelling Up, Housing and Communities until July 2024) enable local leaders to break down barriers, tackle inequality, and build long-term relationships within their communities. In £152,718.90 was awarded in 49 small grants, strengthening community relationships and fostering collaborative action.

integra�on of refugees and migrants, 15 reached isolated/segregated communi�es, 16 supported vulnerable women, and 16 supported young people and wellbeing. These crea�ve, grassroots projects include community gardening projects, mul�faith storytelling sessions, cricket training for women, theatre workshops for asylum seekers, intergenera�onal singing groups, and many other ini�a�ves.

For the organisa�ons that received grants in 2023/24, project leads reported that:

Example Small Grant Case Study: Threads of Na�ons, Community Harmony Project CIC, East Lancashire

The Threads of Na�ons project provided a space for a diverse group of individuals in Blackburn to upskill through sewing classes led by a professional tailor. By listening to the interests of their community, Community Harmony Project CIC were able to develop a programme that engaged individuals from across different faiths and backgrounds. An opportunity to connect and create was central to the project ac�vi�es and an exhibi�on space was curated at the end of the course to showcase sewn items and celebrate the achievements of members. Par�cipants commented

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on the impact that these new skills would have in their lives beyond the programme, through fixing clothes, sewing gi�s and making tradi�onal garments.

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Asima, a par�cipant involved in the sewing group from Pakistan, shared “I found out about the Threads of Na�ons through a friend. She said to me that there is a project near the leisure centre, do you want to go and try? So I

said okay I’ll go there and try and now I know all of these people, we’re one group and they text every week. This is a really good thing and I’ll be carrying it on in the future. Can you believe it I can make my own bag now, I could start my own business!”

Asima noted the diversity of the grant supported sewing group and the friends she had made “I would like more of these projects to carry on, because I give informa�on to my whole community, they don't know about these things. I'll follow them now on Instagram and Facebook, because the thing is we should help each other. We should help each other and here no one was bothered about any ethnicity, any religion, we all mixed, and we worked together, and I made friends. My friend she's from Sudan and Gambia. We all here together, we help each other, and we’ve learnt a lot of things. I think it's a great opportunity, and I'm really grateful for this project.”

Example Small Grant Case Study: Young Ambassadors

The Young Ambassadors group at The Good Shepherd Centre provides an opportunity for local young people in Keighley to come together, to share ideas, organise, par�cipate and volunteer. Small grant funding has enabled this diverse group to grow and work together to address specific community needs by listening to ideas, suppor�ng each other and collabora�ng with local organisa�ons.

1 Image: Threads of Nations sewing showcase 17.07.24

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Young Ambassador Nikola shared “our aim is to help improve the town we live in and support young people in our community. We started as a project in the school for the school, but we have expanded looking at ge�ng involved in projects that are close to our hearts and that our peers will be interested in joining in with. Volunteering has been a big part of what we do as well as fundraising for causes and seeking to make a difference locally here in our community of Keighley. We have excellent connec�ons with schools and local charitable organisa�ons including the Salva�on Army, Sparks Local Jus�ce Group, Bernardo’s, Bradford and Leeds Diocesan Youth Services and Police Cadets.”

Nikola added “we’ve approached schools to set up a referral system to help young people lacking confidence or struggling with various issues. We have been in a good posi�on to support peers who have faced bereavement or are looking for an opportunity to grow in confidence. Growing in leadership and confidence have been a big part of my young ambassador’s experience. Voicing opinions in mee�ngs and speaking in front of a large group like today at the Lunch Club was not something I pictured myself doing even a year ago. I’ve gained confidence and experience, and I’ve brought that into other parts of my life.”

The Young Ambassadors project at The Good Shepherd Centre is engaging a diverse group of young people in leadership development and volunteering opportuni�es. Young Ambassadors noted that that the skills they had developed, through grant supported ac�vi�es, were a key part of confidence building and had been included on applica�ons for next steps into further educa�on of employment.

Places of Welcome Micro Grants:

Places of Welcome venues provide safe and hospitable spaces where people can connect, belong and get involved. Through Near Neighbours micro-grants, these venues were able to expand outreach and introduce new initiatives. 42 micro grants of £300-£500 were awarded to Places of Welcome venues to improve accessibility and strengthen community participation.

In 2024, Places of Welcome celebrated 10 years of providing safe, welcoming spaces, growing to 821 locations and reaching 22,167 people with the support of 4,105 volunteers. Strong partnerships with churches, charities, and local services have been key to expanding the network and deepening its impact. Places of Welcome uphold the 5 Ps – Place, People, Presence, Provision, and Participation

– ensuring venues remain accessible and community-driven. New venues, including St. Ambrose Barlow Catholic Church in Birmingham, launched community cafés and hubs in response to local needs.

“Inclusivity is at the heart of what we do,” says coordinator Hayley-Charlotte Haughton. “Simple things like fresh fruit on tables or a community library remove barriers and create a welcoming space”.

One project leader reflected: “We extended our opening hours and now offer free lunches, helping to reach some of the most vulnerable people in our community.”

Lancashire Places of Welcome Coordinator Salma Begum

“The highlight for me as the Near Neighbours Places of Welcome Coordinator has been witnessing the profound posi�ve impact these Places of Welcome have had on individuals and communi�es. Seeing how they've fostered inclusivity and support, addressing inequali�es, and

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providing essen�al services like food provision, mental health support, and assistance with addic�on, has been truly inspiring.

Moreover, being able to assist in establishing partnerships, facilita�ng local recogni�on, and promo�ng sustainability for these Places of Welcome has been immensely fulfilling. These experiences have reinforced my belief in the power of community and the importance of working together to create posi�ve change.”

A volunteer from Leicester:

“I’ve been volunteering here now for over a year, and I’ve found it to be a really enjoyable experience. I want to give back something here and as I speak Hindi, Gujara� and English I have been able to help a lot of people here with form filling. I work at the local pharmacy now and I’ve scheduled it so I have Monday a�ernoons, and I can come to the session here because I really love being involved. I never thought I’d really be able to be as helpful as I have been to some of the guests here being able to serve the tea and coffee or help with the language. I feel more confident now and I’ve seen guests grow in confidence since their first session. I think there is something really special here and I will keep volunteering for as long as I can!”

Mandy, a par�cipant from Birmingham:

“I’ve been a carer for nine years for my mum who has demen�a and it’s been lovely to see my mum engage with other people and feel comfortable at the cafe. She also helps out a li�le bit,

with cleaning the tables and things like that, it makes her feel useful. She’s eighty seven now and to see her find that purpose here is so good, it’s a safe place for her to make friendships. Some�mes everyone will sit and sing songs, and she really enjoys that. Mum met a

couple of ladies the other week who didn't know how to knit, so she taught them. It was nice for me to stand back and watch and I could see the joy in my mum as she did that.”

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2 Image: Volunteers and participants at Place of Welcome, Community Cafe @ St Ambrose Barlow

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survey, noted the diversity of the par�cipants they engage with weekly. A Place of Welcome in East Lancashire shared they were engaging with par�cipants from 24 different ethnici�es, another venue in No�ngham noted an age range of par�cipants from 19-93. Micro grant awards were used to provide refreshments, including a coffee machine, mugs and large pots and pans to be�er support ac�vi�es like cooking demonstra�ons. Some grant monies were used to purchase adver�sing materials including flyers, poster and banners promo�ng the Place of Welcome loca�on and expanding reach. Project leads reflected on how people of diverse backgrounds have been encouraged to share skills and interests at their venues. As an example, a lead in No�ngham noted “we find that word searches help to support people whose first language is not English. We had a lady from Iraq that was suppor�ng others with croche�ng. We are also mindful of those who are fas�ng during Ramadan and encourage people to speak and have conversa�ons about each other’s backgrounds and country of birth. Social prescribers are on site each session and link anyone a�ending into support.”

Through micro-grant funded Places of Welcome venues, an es�mated 210 volunteers are being mobilised to combat social isola�on and connect people with other local sources of support. Our West Yorkshire hub noted that Near Neighbours grant support had been a key mechanism by which venues were encouraged to start or extend support in their diverse communi�es in a very prac�cal and impac�ng way. The Places of Welcome network con�nues to grow offering friendship, support, and signpos�ng to services, recognising the impact that building confidence through par�cipa�on can have for individuals.

Windrush Day grants

In 2024 we were able to award £459,690 to 27 organisa�ons. This scheme is run by MHCLG but administered by the staff of CUF under the auspices of Near Neighbours.

Conclusion

2024 has brought many challenges to our communi�es, which threaten the long term cohesion of our neighbourhoods. These include the con�nuing impact of events of October 7[th] 2023 and the following violence in Israel and Gaza and in Lebanon and Syria, which has greatly affected our communi�es here, and these tensions con�nue to be felt. There have also been the 2024 summer disturbances in towns and ci�es of England against asylum seekers, and migrant communi�es long se�led here. This brings to the fore the ongoing need to build long term rela�onships of trust between communi�es of different backgrounds and beliefs. We believe that a strongly resourced Near Neighbours programme, with a MHCLG funding commitment that runs across mul�ple years, can make a posi�ve impact in some of our most fractured and vola�le communi�es. Short term funding, with significant breaks in funding agreements is not conducive to the grassroots work of building up trust and cohesion. We seek to develop a strategy and develop a stable funding stream to enable us to work more effec�vely.

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FUTURE PLANS

We look forward to the future and believe our work is more needed now, than ever before.

In 2025 Near Neighbours will continue to:

Going Concern

The Trustees have considered the activities, together with the factors likely to affect its future development, performance, and financial position to determine whether Near Neighbours’ financial statements can be prepared on a going concern basis. The forecasts and projections, taking account of reasonably possible changes in charity performance show the charity should be able to operate within the level of forecast cash resources.

It is recognised that Near Neighbours benefits from regular and significant funding from MHCLG. At the date of approval of these financial statements there is written confirmation that funding will continue until March 2026. Given that this is less than 12 months from the approval of the accounts, Near Neighbours has received a letter of support from its parent company, Church Urban Fund (CUF), that in the event of funds not materialising CUF will support the activities of Near Neighbours in the short term to ensure that it continues as a going concern. This has been on the basis that activities deemed to be essential to the continuation of the NN network support the overall mission of the CUF group including the retention of key staff working on the NN programme.

DELIVERING PUBLIC BENEFIT

Near Neighbours brings people together in diverse communities, helping them to build relationships and collaborate to improve the local community in which they live. Near Neighbours also financially supports and works with a wide range of community and faith organisations, all of which are working to bring communities together.

The Trustees have reviewed the guidance on public benefit issued by the Charity Commission each year and consider that Near Neighbours’ aims and activities, as set out above, fulfil the criteria. The Trustees do not anticipate any future change to this operational approach.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

Near Neighbours is both a company limited by guarantee (Registration Number 07603317) subject to the Companies Act 2006 and a charity registered with the Charity Commission (Charity Number 1142426). It is governed by its Memorandum and Articles of Association dated March 2011.

Governance Structure

The Directors of the company are known as Trustees. The Articles of Association allow for up to thirteen Trustees, six being nominated by the Archbishops’ Council and seven by CUF. The Trustees meet four times during the year to review strategy, operational and financial performance in conjunction with the CUF Group Senior Leadership Team (SLT). The Trustees are listed on page 2 of this report.

None of the Trustees receive any remuneration or benefits from Near Neighbours. Expenses reclaimed by the Trustees during the year are set out in note 5 to the Financial Statements.

Trustee Induction and Training

There is an induction programme for all Trustees on appointment, which is being reviewed and strengthened during 2025.

Management and Organisational Structure

The day-to-day management and delivery of the Near Neighbours programme is delegated to the CUF Group Chief Executive and the Senior Leadership Team, namely the Director of Partnerships, Director of Programmes and Innovation, and the Director of Finance and Governance. The Senior Leadership Team (SLT) works closely with other members of CUF’s staff team (its ultimate parent company). Formal reporting by the Senior Leadership Team to the Board takes place regularly throughout the year.

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Principal Risks

The Trustees have considered the key potential risks facing the Near Neighbours programme and how they are managed which are outlined below:

----- Start of picture text -----
RISK TYPE POTENTIAL RISK MITIGATION
Financial Failure to secure long-term Diversifying our income streams by
future funding for the pursuing a number of different funders
Programme
Major grant funders are actively
managed by CUF
Operational Fraud in grants programmes Strong initial due diligence towards all
applicants
Constant monitoring of funding and
reporting
Understanding of legal responsibilities
Loss of key staff Wider sharing of responsibilities has
ensured all team has insight and
understanding
Extremism All staff, including hubs, are extremism
aware
Comprehensive due diligence checks for
new applications
Strong community relationships to draw
on
Relational Target groups are reluctant or Our local hubs have a trusted local
slow to engage presence and deep networks
Reputational Reputational risk from adverse Advice and support available from CUF
publicity and through the Church of England
Local and national media coverage are
monitored on an ongoing basis
Robust agreements in place providing
clarity on expectations and delivery
----- End of picture text -----

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Key Management Personnel Remuneration

The Trustees consider that the Board of Trustees, the CUF Group Chief Executive, Deputy Chief Executive, and the Senior Leadership Team, comprise the key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis. All Trustees give their time freely and none of the Trustees received remuneration in the year. Details of expenses reclaimed are set out in note 5 to the Financial Statements and related party transactions are disclosed in note 12 of the accounts.

The salaries of key management are reviewed annually and normally increase in accordance with inflation. In view of the nature of the charity, the Trustees benchmark against pay awards in similar charitable organisations. The Trustees of CUF set the salary of the CUF Group Chief Executive and Deputy as the roles are shared between all CUF charities (parent and subsidiaries).

Small Company Exemption

The company has taken advantage of the small company exemption, as it is within the threshold criteria. The accounts have been prepared in accordance with the special provision contained in the Companies Act.

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FINANCIAL REVIEW

Income

Income for the year to 31[st ] December 2024 was £604k (2023: £492k), an increase on the previous year. Income was largely received from the Ministry for Housing, Communities and Local Government (MHCLG), formerly the Department for Levelling Up, Housing and Communities (DLUHC), and from the National Lottery Community Fund, restricted to the Near Neighbours programme.

Expenditure

The total expenditure on the three charitable activities was £642k (2023: £382k). The charitable activities together with their associated expenditure for the period were:

This expenditure principally reflects the grants to our partners, set out in notes 3 and 6 to the accounts.

Reserves and Reserves Policy

All reserves are treated as restricted, and any reserves held at the year-end represent funds set aside for future programmes. There was a £228k balance on reserves at 31[st ] December 2024 (2023: £266k).

17

THE TRUSTEES’ RESPONSIBILITY FOR PREPARING ANNUAL FINANCIAL STATEMENTS

The law applicable to charities in England and Wales requires the Trustees to prepare annual financial statements for each financial year that give a true and fair view of the Charity’s financial activities during the year and state its surplus or deficit for the year and its financial position at the end of that year. In preparing annual financial statements, the Trustees have followed best practice and:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the Charity’s assets and for taking reasonable steps to prevent and detect fraud and other irregularities. The Trustees have overall responsibility for ensuring that the Charity has appropriate systems of control, financial and otherwise.

Each of the Trustees at the date of approval of this report confirms that:

Auditors

A proposal for Forvis Mazars reappointment will be put to the Board in 2025.

Approved by the Trustees on 17[th] July 2025 and signed on their behalf by:

Jessica Foster (Jul 31, 2025 10:17:03 GMT+1)

The Rev’d Jessica Foster, Chair of Trustees

18

Independent auditor’s report to the members of Near Neighbours

Opinion

We have audited the financial statements of Near Neighbours (the ‘charity’) for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information

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contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report included within the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of the Trustees

As explained more fully in the Trustees’ responsibilities statement on page 18, the Trustees (who are also the Directors of the charitable company for the purposes of company laws) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Based on our understanding of the charity and its activities, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

21

In addition, we evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to income recognition and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

Nicola Wakefield (Ju ~~l~~ 31, 2025 14:30:48 GMT+1)

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Forvis Mazars LLP

Chartered Accountants and Statutory Auditor

2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS

Date 31/07/2025

22

NEAR NEIGHBOURS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31st December 2024

----- Start of picture text -----
Restricted Restricted
Funds Funds
2024 2023
Notes £'000 £'000
INCOME AND EXPENDITURE
Income from Charitable activities 2 604 492
Total income 604 492
Expenditure on Charitable activities: 3
Building Networks 248 146
Creating Engagement 4 230 86
Building Capacity
Young Leaders 116 85
Real People Honest Talk 22 48
Places of Welcome 26 7
Community Membership 0 10
Total expenditure 642 382
Net (expenditure) / income -38 110
Total funds brought forward 266 156
Total funds carried forward 228 266
----- End of picture text -----

The charity has taken advantage of the small companies exemption as it meets the threshold criteria. The accounts have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006 and the Financial Reporting Standard (FRS 102). All activities relate to ongoing operations.

The notes on pages 26 to 30 form part of these financial statements.

23

NEAR NEIGHBOURS

BALANCE SHEET AS AT 31 DECEMBER 2024

COMPANY NUMBER 07603317

----- Start of picture text -----
2024 2023
Notes £'000 £'000 £'000 £'000
CURRENT ASSETS
Cash at bank 89 76
Amount due from parent charity 148 199
237 275
CURRENT LIABILITIES
Creditors: Amounts falling due 9 9 9
within one year 9 9
NET CURRENT ASSETS 228 266
NET ASSETS 228 266
FUNDS
Restricted Funds 10 228 266
TOTAL FUNDS 228 266
----- End of picture text -----

The charity has taken advantage of the small companies exemption as it meets the threshold criteria. The accounts have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006.

Approved by the Trustees on 17th July 2025 and signed on their behalf by

Jessica Foster (Jul 31, 2025 10:17:03 GMT+1) Rev'd Jessica Foster ….........................................................................

The notes on pages 26 to 30 form part of these financial statements.

24

NEAR NEIGHBOURS

STATEMENT OF CASH FLOWS

for the year ended 31 December 2024

----- Start of picture text -----
2024 2023
£'000 £'000 £'000 £'000
Reconciliation of net movement in funds to net cash flows from
operating activities
Net (expenditure) / income for the reporting period
(as per statement of financial activities) -38 110
Adjustments for:
Decrease / (Increase) in debtors 51 -76
(Decrease) in creditors 0 -2
51 -78
Net cash provided by operating activities 13 32
Change in cash and cash equivalents in the reporting period 13 32
Cash and cash equivalents at the start of the reporting period 76 44
Cash and cash equivalents at the end of the reporting period 89 76
----- End of picture text -----

The notes on pages 26 to 30 form part of these financial statements.

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NEAR NEIGHBOURS

Notes to the Financial Statements for the year ended 31 December 2024

1. Accounting Policies

a. Basis of accounting

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) approved on 2 October 2019 (effective 1 January 2019) and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The Trustees have considered the activities, together with the factors likely to affect its future development, performance and financial position to determine whether Near Neighbours financial statements can be prepared on a going concern basis. The forecasts and projections, taking account of reasonably possible changes in charity performance, show the charity should be able to operate within the level of forecast cash resources.

It is recognised that Near Neighbours has benefited from regular and significant funding from MHCLG. At the date of approval of these financial statements there is written confirmation that funding will continue until March 2026. Given that this is less than 12 months from the approval of the accounts, Near Neighbours has received a letter of support from its parent company, Church Urban Fund (CUF), that in the event of funds not materialising CUF will support the activities of Near Neighbours in the short term to ensure that it continues as a going concern. This has been on the basis that activities deemed to be essential to the continuation of the NN network support the overall mission of the CUF group including the retention of key staff working on the NN programme.

b. Income recognition

Church Urban Fund receives funds from the Ministry of Housing, Communities and Local Government (MHCLG) which is then passed to Near Neighbours and used to administer the programme in accordance with the agreement between Church Urban Fund and Near Neighbours.

c. Support costs

Support costs comprise of costs relating to statutory audit and legal fees together with an apportionment of general overheads. Support costs relating to charitable activities have been apportioned based on staff time spent on each activity as analysed in note 8.

In addition to the costs incurred directly in the course of each charitable activity, Near Neighbours also incurs support costs that are necessary to enable it to carry out its activities. These costs are apportioned to activities based on the time spent on each.

d. Charitable activities

The costs of charitable activities include grants made, governance costs, and an apportionment of support costs as shown in note 3.

e. Grants

Delivery Partners submit quarterly returns against budget before they are paid future funding, as unspent amounts in one year would result in a reduction of grant in the next. The grants are charged to the Statement of Financial Activities once funds have been transferred to the recipient's account. Payments are made on behalf of Partners where there is an absence of an operational bank account due to a delay in the setting up of the account.

The grant to Church Urban Fund to administer and make awards under the Small Grants Programme is charged to the Statement of Financial Activities once the funds have been committed.

f. Pensions costs

The charity operates a defined contribution pension scheme, Church Urban Fund Pension Plan with Legal and General. The pension charge represents the amount payable by the charity to the scheme in respect of the year to which they relate and are included within staff costs (note 5).

g. Fund accounting

26

Restricted funds are funds subject to the specific restrictive conditions imposed by donors.

2. Income from Charitable activities

Income from Charitable Activities - MHCLG via Church Urban Fund
Income from Charitable Activities
Other Income		 2024
2023
£'000
£'000
515
415
89
77
604
492

Income from Charitable Activities - MHCLG via Church Urban Fund represents the grant from the

Ministry of Housing, Communities and Local Government (MHCLG) to Church Urban Fund in respect of the Near Neighbours Programme. The grant is passed to Near Neighbours who administers the overall programme based on the agreement between Church Urban Fund and Near Neighbours. Near Neighbours then makes a grant to Church Urban Fund to administer and make awards under the Small Grants Programme - 'Creating Engagement'.

In addition, Near Neighbours reimburses CUF for other programme and shared central costs as per the agreement.

Income from Charitable Activities - Other Income represents funding for other programmes run by Near Neighbours. This includes £89k from The National Lottery Community Fund.

3. Expenditure on Charitable activities

Charitable Activities
Building Networks: Local Presence and
Engagement Centres
Creating Engagement: Small Grants_(note 4)_
Building Capacity
Young Leaders
Public Space
Places of Welcome
Community Membership
Total expenditure		 Staff
Costs
Grants
Other Direct
Costs
Support and
governance
2024
Total
2023
Total
costs
£'000
£'000
£'000
£'000
£'000
£'000
(note 5)
(note 6)
(note 7)
(note 8)
33
195
8
12
248
146
36
176
5
13
230
86
51
37
10
18
116
85
13
3
1
5
22
48
6
17
1
2
26
7
0
0
0
0
0
10
139
428
25
50
642
382

Support costs have been allocated to activities in proportion to staff time incurred in each activity area. Total expenditure includes audit fees for the year of £15k (Statutory audit £9k and MHCLG grant audit £6k). Total for 2023 was £14k (Statutory audit £8k and MHCLG grant audit £6k).

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4. Creating Engagement: Small Grants

Small Grants awarded
Less writebacks of awards
Net grants awarded
Other costs (incl. Salaries, travel, evaluation)
Total Costs		 2024
2023
£'000
£'000
180
5
-4
-1
176
4
54
82
230
86

Writebacks of awards represent grants awarded which have been wholly or partly unclaimed.

5. Staff Costs

Staff Costs allocated by Church Urban Fund and reimbursed by Near Neighbours

Salaries
Social Security
Pensions		 2024
2023
£'000
£'000
111
133
11
14
17
17
139
164

Near Neighbours had 0 full time members of staff (2023: 0). No staff emoluments for the year exceeded £60k (2023: 0).

The key management personnel of the charity is comprised of the Trustees, the Group Chief Executive, the Deputy Group Chief Executive, the Director of Partnerships, the Director of Programmes and Innovation, and the Director of Finance and Governance. Key management personnel were remunerated £53k (2023: £57k).

None of the Trustees received any benefits from employment with the charity in the year (2023: nil) Expenses incurred in attending meetings and on other business of Near Neighbours were reimbursed to Trustees as follows:

Travel, subsistence and other expenses
6. Grants
Building Networks: Local Presence and Engagement Centres
Wellsprings Together, Bradford, Leeds & Dewsbury
Centre for Theology and Community, London
Thrive Together Birmingham
St Philip's Centre, Leicester
Transforming Notts Together, Nottingham
Building Bridges Burnley
Grassroots, Luton		 No.
£'000
No.
£'000
1
0
1
0
2024
2023
£'000
£'000
28
14
40
14
40
14
27
6
16
0
7
2
37
14
195
64
2024
2023

28

Building Capacity: Young Leaders
Catalyst Programme
Building Capacity: Places of Welcome
Places of Welcome
Building Capacity: Public Space
Real People Honest Talk
Leadership Training
Leadership for Effective Change
Creating Engagement: Small Grants (note 4)
Community Membership
Total Grants
7. Other Direct Costs
Evaluation
Communications and Development
8. Support costs
Audit
Office costs
Travel and Subsistence, Recruitment
Contribution to Church Urban Fund operating costs
9. Creditors(amounts falling due within one year)
Accruals
Other Creditors		 37
13
37
13
17
0
17
0
1
12
0
3
2
6
3
21
176
4
0
10
428
112
2024
2023
£'000
£'000
11
38
14
22
25
60
2024
2023
£'000
£'000
15
14
1
4
4
5
30
23
50
46
2024
2023
£'000
£'000
9
8
0
1
9
9

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----- Start of picture text -----
||||||| |---|---|---|---|---|---| |10. Restricted Funds|Balance at|Income|Expenditure|Transfer|Balance at| |1/1/24|between funds|31/12/24| |£'000|£'000|£'000|£'000|£'000| |Near Neighbours Programme|181|515|551|0|145| |Catalyst Programme|85|89|91|0|83| |266|604|642|0|228|

----- End of picture text -----

The Near Neighbours Programme is primarily funded by MHCLG and covers the core programmes and costs of Near Neighbours. The Catalyst Programme funds are to run the Catalyst Young People's Leadership Courses.

11. Ultimate Parent Company

The ultimate parent charity is Church Urban Fund, a company and charity registered in England. Copies of the group accounts can be obtained from Church Urban Fund, The Foundry, 17 Oval Way, London SE11 5RR.

12. Related Party Transactions

During the year, Near Neighbours entered into the following transactions with its parent company CUF:

CUF received the full amount of grant from MHCLG of £515k (2023: £415k) and passed this over to Near Neighbours to deliver the programme.

Near Neighbours paid CUF a grant of £176k (2023: £4k) to administer the Small Grants programme.

Near Neighbours made a contribution of £169k (2023: £187k) to CUF for the administration of the overall programme.

At the year end, there was £148k (2023: £199k) intercompany balance owed by CUF.

Sue Chalkley OBE and Catherine Allison were both Trustees of Near Neighbours and Church Urban Fund. Sue Chalkley OBE resigned as Trustee of Near Neighbours on 10th February 2025.

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