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2020-12-31-accounts

COMPANY REGISTRATION NUMBER: 07952733 CHARITY REGISTRATION NUMBER: 1149720

SOLACE UK LTD

Company Limited by Guarantee Unaudited Financial Statements

31 December 2020

BEGG, WILLIAMSON & CO

Chartered Certified Accountants 24 Church Road Crystal Palace London SE19 2ET

SOLACE UK LTD

Company Limited by Guarantee

Financial Statements

Year ended 31 December 2020

Page
Trustees' annual report (incorporating the director's report) 1
Independent examiner's report to the trustees 6
Statement of financial activities (including income and
expenditure account) 7
Statement of financial position 8
Notes to the financial statements 9
The following pages do not form part of the financial statements
Notes to the detailed statement of financial activities 17

SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 December 2020

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 December 2020.

Reference and administrative details

Registered charity name SOLACE UK LTD Charity registration number 1149720 Company registration number 07952733 Principal office and registered PO BOX 60049 office SUNNYHILL HOUSE 3-7 SUNNY HILL ROAD LONDON SW16 9FP

The trustees

MS. A. HURNI MS. B. QUADRI MS. J L DJELLOUL MS. S. CLEMENTS MS. W O BABALOLA Independent examiner Z F BEGG-ACCA Begg Williamson & Co 24 Church Road Crystal Palace London SE19 2ET

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SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Objectives and activities

TO ADVANCE THE FAITH OF ISLAM IN PARTICULAR BY SUPPORTING, AIDING AND EMPOWERING WOMEN WHO ARE OR HAVE REVERTED OR RETURNED TO THE ISLAMIC FAITH (AS REVERT SISTERS) AND WHO ARE IN NEED SO THEY CAN FULLY ADVANCE THEIR RELIGION.

Structure, Governance and Management

" Governing Document: MEMORANDUM AND ARTICLES INCORPORATED 16 FEB 2012" Charity Constituted by way of Limited Company by guarantee

" Trustees are appointed/elected as per Charity Commission guidelines

Objectives and Activities Summary of Objects set out in our governing document:

TO ADVANCE THE FAITH OF ISLAM IN PARTICULAR BY SUPPORTING, AIDING AND EMPOWERING WOMEN WHO ARE OR HAVE REVERTED OR RETURNED TO THE ISLAMIC FAITH (AS REVERT SISTERS) AND WHO ARE IN NEED SO THEY CAN FULLY ADVANCE THEIR RELIGION.

Public Benefit:

The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit Charities and Public Benefit.

Solace UK is a charity which aims to advance the faith of Islam in particular by supporting, aiding and empowering women who are or who have reverted or returned to the Islamic faith (as revert sisters) and who are in need so they can fully advance their religion.

In setting and reviewing Solace's strategic objectives, the charity has had due regard for the Charity Commission's guidance on public benefit. The guidance sets out the requirement that all organisations wishing to be recognised as charities must demonstrate, explicitly, that their aims are for the public benefit.

In delivering its objectives, Solace UK provides the following identifiable public benefits through the advancement of faith in particular supporting, aiding and empowering women who are or have reverted or returned to the Islamic faith:

" Liaise with a range of diverse supportive services to enable revert women to receive specialist support

" Developing a network of mentors and support staff throughout the country

" Develop a comprehensive educational program to educate the wider community on how to develop and support reverts women

" Provide a safe space for revert women to discuss their difficulties in a supportive and confidential environment

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SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Achievements and performance

In 2020, Solace UK delivered the following activities, projects, and services:

Support Scheme

Solace UK's core service continued into its 8th year. The support scheme is a Person-centred proviso where a beneficiary is allocated a support worker. An initial assessment of her circumstances and needs is carried out. This is followed by an action plan where the support worker helps the beneficiary to achieve goals. These goals can be anything from faith-based goals to marital resolution to practical support, and more.

In 2020, 221 women were supported ranging from different ethnicities, age groups and geographical locations.

Through Solace's flagship service, reverted women have been emotionally and practically supported. They have been empowered to make a difference in their lives and others. They have begun work to process trauma. Many of them were also struggling financially with rent costs, food and clothing costs and debt. They received financial support which lessened their financial and emotional burden. There were also several women who found themselves in homeless circumstances, Solace was able to assist them with emergency housing.

In addition to being assigned a trained support worker for 1-1 support, beneficiaries in 2020 were provided with the following:

Household essentials Assistance with removals Debt repayments Food vouchers Emergency housing and rent support Utility support Home Office fees Books Clothing support Islamic courses Clothing support Urgent travel costs Counselling support Healthcare provisions Aid gifts

Sponsor a Revert Our Sponsor a Revert campaign saw 68 sponsored revert sisters in difficulties who received the following support:

Emotional support sessions Attendance to retreats Online Islamic courses Marriage webbings Islamic clothing Food vouchers Travel assistance

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SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Single Mum

Our Single Mother Relief project saw single mothers and their children supported with:

Food vouchers Islamic courses Aid gifts for their children Utility bills support Quark and Arabic Tuition

We believe our objectives provide a public interest, in that we are aiding individuals in a holistic manner and encouraging them to become better members of society which in turn has a positive effect upon their own families and communities.

Events

2020 was an unusually quiet year due to Coved19 Lockjaw restrictions. We were unable to run our usual annual events. In 2019 we ran 7 events. In 2020, we ran 0. This was extremely frustrating for Solace UK. We focused our efforts on planning some new initiatives to take place when lockjaw ended which took place in 2021, of which information will be provided in the 2021 Trustees Report

Awareness

2020 was a year of building awareness surrounding the plight faced by our beneficiaries. Solace created awareness in a number of ways. This was namely done online via a number of social media campaigns, that were particularly held during the month of Rama. Through these campaigns, we were able to highlight the array of various difficulties encountered by revert women were launched. Speeches in mosques around the country took place. The Solace blob also continued, providing our beneficiaries with heartfelt articles - there to support them during their time of need.

Other

For the 9th year running, aid gifts were sent out at aid time which is always so well received by Solace's beneficiaries. During very difficult circumstances with many unable to share Rama and aid with family due to their different faith, aid gifts really do provide solace.

Financial review

All income of the charity was received by way of donations from public individuals or companies. At the end of the financial year, Solace UK had: Income - £169,146 Spending - £149,296

Reserve Policy

The trustees aim to maintain free reserves in unrestricted funds at a level which equates to 6 months of unrestricted charitable expenditure which we believe is sufficient.

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SOLACE UK LTD

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2020

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on 27 September 2021 and signed on behalf of the board of trustees by:

MS. B. QUADRI Trustee

sarah clements Charity Secretary

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SOLACE UK LTD

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of SOLACE UK LTD

Year ended 31 December 2020

I report to the trustees on my examination of the financial statements of SOLACE UK LTD ('the charity') for the year ended 31 December 2020.

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the company 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 the 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

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 charity as required by section 386 of the 2006 Act; or

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

  3. the financial statements do not comply with the accounting requirements of section 396 of the 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 financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their 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.

Z F BEGG-ACCA Independent Examiner

Begg Williamson & Co 24 Church Road Crystal Palace London SE19 2ET

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SOLACE UK LTD

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 December 2020

2020 2019
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 91,000 78,146 169,146 255,411
---------------------------- ---------------------------- -------------------------------- --------------------------------
Total income 91,000 78,146 169,146 255,411
============================ ============================ ================================ ================================
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 6 11,280 1,321 12,601 24,651
Expenditure on charitable activities 7,8 38,887 97,808 136,695 183,679
---------------------------- ---------------------------- -------------------------------- --------------------------------
Total expenditure 50,167 99,129 149,296 208,330
============================ ============================ ================================ ================================
---------------------------- ---------------------------- -------------------------------- --------------------------------
Net income and net movement in funds 40,833 (20,983) 19,850 47,081
============================ ============================ ================================ ================================
Reconciliation of funds
Total funds brought forward 263,041 120,446 383,487 336,406
-------------------------------- -------------------------------- -------------------------------- --------------------------------
Total funds carried forward 303,874 99,463 403,337 383,487
================================ ================================ ================================ ================================

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

The notes on pages 9 to 15 form part of these financial statements.

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SOLACE UK LTD

Company Limited by Guarantee

Statement of Financial Position

31 December 2020

2020 2019
Note £ £ £
Fixed assets
Tangible fixed assets 13 221 304
Current assets
Debtors 14 8,650 12,588
Cash at bank and in hand 398,694 375,657
-------------------------------- --------------------------------
407,344 388,245
Creditors: amounts falling due within one year 15 4,228 5,062
-------------------------------- --------------------------------
Net current assets 403,116 383,183
-------------------------------- --------------------------------
Total assets less current liabilities 403,337 383,487
================================ ================================
Funds of the charity
Restricted funds 99,463 120,446
Unrestricted funds 303,874 263,041
-------------------------------- --------------------------------
Total charity funds 16 403,337 383,487
================================ ================================

For the year ending 31 December 2020 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

These financial statements were approved by the board of trustees and authorised for issue on 27 September 2021, and are signed on behalf of the board by:

MS. B. QUADRI Trustee

The notes on pages 9 to 15 form part of these financial statements.

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 December 2020

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is PO BOX 60049, SUNNYHILL HOUSE, 3-7 SUNNY HILL ROAD, LONDON, SW16 9FP.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Equipment - 25% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

3. Accounting policies (continued)

Financial instruments (continued)

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Limited by guarantee

Solace (UK) ltd is a private company limited by guarantee without share capital. The members guarantee in case of winding up, or within one year after ceasing being a member they will contribute to the assets of the company as required to settle any debts or liabilities and any payment of costs in winding up the company.

5. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Donations 82,622 78,146 160,768
Gifts
Gift Aid 8,378 – 8,378
---------------------------- ---------------------------- --------------------------------
91,000 78,146 169,146
============================ ============================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
Donations
Donations 115,699 125,103 240,802

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

5. Donations and legacies (continued)

Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
Gifts
Gift Aid 13,953 656 14,609
-------------------------------- -------------------------------- --------------------------------
129,652 125,759 255,411
================================ ================================ ================================
6. Costs of raising donations and legacies
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Costs of raising donations 11,280 1,321 12,601
============================ ======================= ============================
Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
Costs of raising donations 18,483 6,168 24,651
============================ ======================= ============================
7. Expenditure on charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Direct Activity 38,887 97,808 136,695
============================ ============================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2019
£ £ £
Direct Activity 109,890 73,789 183,679
================================ ============================ ================================
8. Expenditure on charitable activities by activity type
Activities
undertaken Total funds Total fund
directly 2020 2019
£ £ £
Direct Activity 136,695 136,695 183,679
================================ ================================ ================================
9. Net income
Net income is stated after charging/(crediting):
2020 2019
£ £
Depreciation of tangible fixed assets 83 27
============== ==============

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

10. Independent examination fees

2020 2019
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 1,200 1,200
======================= =======================

11. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as The total staff costs and employee benefits for the reporting period are analysed as follows:
2020 2019
£ £
Wages and salaries 40,279 53,595
Social security costs 84 1,175
---------------------------- ----------------------------
40,363 54,770
============================ ============================

The average head count of employees during the year was 6 (2019: 7).

No employee received employee benefits of more than £60,000 during the year (2019: Nil).

12. Trustee remuneration and expenses

One or more trustees has been paid remuneration or received other benefits from employment with the charity or a related entity. Payments to trustees as remuneration was approved by the trustees and charities commission. The trustee B Quadri was paid £ 6,396 (2019 £9,224 for the year as salary. The trustee J Djelloul was paid £ 8,684 (2019 £7,653) for the year as salary.

13. Tangible fixed assets

Equipment Total
£ £
Cost
At 1 January 2020 and 31 December 2020 331 331
============== ==============
Depreciation
At 1 January 2020 27 27
Charge for the year 83 83
-------------- --------------
At 31 December 2020 110 110
============== ==============
Carrying amount
At 31 December 2020 221 221
============== ==============
At 31 December 2019 304 304
============== ==============
Debtors
2020 2019
£ £
VAT recoverable 272 –
Other debtors 8,378 12,588
----------------------- ----------------------------
8,650 12,588
======================= ============================

14. Debtors

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2020

15. Creditors: amounts falling due within one year

2020 2019
£ £
Social security and other taxes – 316
Other creditors 4,228 4,746
----------------------- -----------------------
4,228 5,062
======================= =======================

16. Analysis of charitable funds

Unrestricted funds
At At
1 January 20 31 Decembe
20 Income Expenditure r 2020
£ £ £ £
Unrestricted fund - General funds 263,041 91,000 (50,167)
303,874
================================ ============================ ============================ ================================
At At
1 January 20 31 December
19 Income Expenditure 2019
£ £ £ £
Unrestricted fund - General funds 261,762 129,652 (128,373)
263,041
================================ ================================ ================================ ================================
Restricted funds
At At
1 January 20 31 Decembe
20 Income Expenditure r 2020
£ £ £ £
Restricted Funds 120,446 78,146 (99,129)
99,463
================================ ============================ ============================ ============================
At At
1 January 20 31 December
19 Income Expenditure 2019
£ £ £ £
Restricted Funds 74,644 125,759 (79,957)
120,446
============================ ================================ ============================ ================================

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SOLACE UK LTD

Company Limited by Guarantee

Management Information

Year ended 31 December 2020

The following pages do not form part of the financial statements.

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SOLACE UK LTD

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

Year ended 31 December 2020

2020 2019
£ £
Income and endowments
Donations and legacies
Donations 160,768 240,802
Gift Aid 8,378 14,609
-------------------------------- --------------------------------
169,146 255,411
-------------------------------- --------------------------------
-------------------------------- --------------------------------
Total income 169,146 255,411
================================ ================================
Expenditure
Costs of raising donations and legacies
Wages and salaries – 4,551
Employer's NIC 84 1,175
Rent and storage 2,550 2,632
Telephone 2,253 505
Other office costs 1,025 1,993
Depreciation 83 27
Platform, online and bank fees 2,722 5,605
Insurance 278 480
Website development and maintenance 1,101 4,471
Advertising and marketing 2,505 3,212
-------------------------------- --------------------------------
12,601 24,651
-------------------------------- --------------------------------
Expenditure on charitable activities
Wages and salaries 40,279 49,044
Accommodation assistance costs 35,997 51,624
Rates and water 3,782 10,810
Support, counselling & Debt Repayments 44,726 26,712
Gifts 983 1,828
Event costs 87 14,213
Travel costs 462 3,894
Legal and professional fees 10,379 5,645
Telephone – 2,019
Advancement & Awareness, social platform – 17,890
-------------------------------- --------------------------------
136,695 183,679
-------------------------------- --------------------------------
-------------------------------- --------------------------------
Total expenditure 149,296 208,330
================================ ================================
-------------------------------- --------------------------------
Net income 19,850 47,081
================================ ================================

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