THIRD SPACE MINISTRIES Charity Registration No 1155538 FINANCIAL STATEMENTS for the YEAR ended 31 DECEMBER 2021
## **THIRD SPACE MINISTRIES**
Legal and Administrative Information
The name of the charity is: Third Space Ministries
Registered Charity Number: 1155538
Third Space Ministries became officially incorporated as a charitable incorporated organisation on the 29th January 2014
## **Objective of the Charity:**
The objective of the charity is to advance the Christian faith for the benefit of the public
## **Trustees:**
Mr Peter Bailey Mrs Naomi Paul – Treasurer Mr Jerry Frempong Mrs Helen Harris Mr Andrew Paul
## **Address:**
Morden Baptist Church Crown Lane Morden Surrey SM4 5BL
## **Bankers:**
CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Mailing Kent ME19 4JQ
## **Independent Examiner:**
Mrs Jenny Faulkner, 4 Sitwell Street, Spondon, Derby, DE21 7FE
## **CONTENTS**
1 Legal and Administrative Information 2-6 Report of Trustees 7 Report of Independent Examiner 8 Statement of Financial Activities 9 Balance Sheet 10 Notes to the Financial Statements
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## THIRD SPACE MINISTRIES
## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their report and accounts for the year ended 31 December 2021.
## **Structure, Governance and Management**
Third Space Ministries became officially incorporated as a charity on the 29th January 2014, and is set up as a CIO (Charitable Incorporated Organisation). The Trustees for Third Space Ministries, who served during the year 2021, were:
Mr Peter Bailey Mrs Naomi Paul – Treasurer Mr Jerry Frempong Mrs Helen Harris Mr Andrew Paul
The Trustees are legally responsible for the governance of the charity and met six times during 2021. The Trustees set the direction for the charity.
Trustees are appointed following a discussion among current trustees and approaches being made to potential candidates. Current trustees meet and discuss Third Space Ministries and its mission with potential new trustees and also assess their skills and how these would add to the current board. A final discussion is then had among trustees before an offer is made.
New trustees will undergo an onboarding process with the CEO and trustees and also be required to familiarise themselves with the Charity Commission publications outlining trustee responsibilities. Public training courses may be utilised as necessary.
Day to day running of the charity’s activities is delegated to Carolyn Skinner, CEO, based in Morden. Carolyn Skinner is also currently acting as secretary.
Third Space Ministries employed 4 staff members during 2021: Carolyn Skinner, Ellie Barrett, Nightlife Ministries Coordinators (1-3 days a week), Luke Rollins, DJ Ministry Coordinator (2 ½ days a week), and Helen Da Costa, Fundraising and Communications Officer (1 ½ days a week).
## **The Charity's Activities, Achievements and Performance**
The charitable objective of Third Space Ministries is to advance the Christian faith for the benefit of the public. It exists to advance the Christian faith in the ‘third spaces’ of society ie the leisure industry, through chaplaincy, team mission, teaching and training.
In shaping the objectives of Third Space Ministries, the trustees have considered the Charity Commission’s guidance on public benefit. The charity exists to benefit members of the general public, who frequent ‘third spaces’ by serving their emotional and spiritual needs.
Our aim is to meet people at their point of need, to help them pastorally, practically and spiritually. We aim to show people God’s love in word and action, to break down some of the negative impressions people have of Christianity, and to seek to move them closer to understanding God’s love. We seek to achieve this through chaplaincy work, team mission, teaching and training.
The issues we are trying to address in society are:
- Spiritual poverty: people who are lonely, soul searching, looking for deeper meaning to life.
- Misunderstanding of Christianity: to break down the often negative image people have of Christianity by showing them God’s love through action as well as words.
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- Minimal Christian engagement with the community: to help Christians think about intentional engagement with their community, to see how God can use them in third spaces, and to go to where people are and meet those who would never set foot in a church.
In the year to 31[st] December 2021 Third Space Ministries continued to achieve its objectives despite some ongoing restrictions required due to Covid-19. We achieved the following:
**DJ Ministry** – the DJ Unity group continued to meet online for prayer and twice in person for support, prayer and encouragement. A link with MyHouseYourHouse radio station developed this year as they fundraised for Soundcheck and wrote an article mentioning Soundcheck as a positive provision to support mental health. They then offered Luke Rollins a monthly radio show. Luke was also interviewed on Sunday Morning Live on BBC1. We were encouraged by more people hearing about Soundcheck and acknowledging the need for this provision in the industry. One DJ got in touch requesting chaplaincy through Soundcheck and this has resulted in weekly meetings. Luke led another night of prayer for the nightlife on 26[th] Nov online similar to last year. Luke attended the Brighton Music Conference in September as a way of staying connected with the industry.
## **Illuminate Soho** –
Strip Clubs: Ellie Barrett did a short life coaching course to help her with supporting the women in the industry. She reduced her working hours this year. Ellie continued to support the women through online conversation and care packages.
## **Sports –**
Gym chaplaincy: Carolyn Skinner continued to host coffee mornings for the women at the gym. These reverted to in-person meetings as restrictions lifted. She also led a course called The Wellbeing Journey in partnership with Morden Baptist Church. There were 28 attendees.
Sports Chaplaincy UK: Carolyn continued to work alongside Sports Chaplaincy UK and support athletes through prayer and pastoral care. She supported 4 athletes remotely during the Olympic Games. She also helped to plan and host the annual SCUK conference, and helps with the online induction of new chaplains.
Love All Serve All **:** Wimbledon tennis went ahead this year but without an overnight queue. Therefore LASA went ahead in a smaller capacity. There were 19 volunteers from 7 churches and there were prayer walks every lunchtime. In the evenings the team went to chat to the traffic management teams, and stewards. They were encouraged by the opportunity to discuss faith, give out our LASA stressballs and pray with people.
**Speaking engagements –** we didn’t have many in person speaking engagements this year. Carolyn spoke at 3 churches, 2 of which were new, and she was on the panel for a Pioneering seminar at Fresh Streams conference.
**Training** - Carolyn attended a Biblical Dream Interpretation workshop and Ellie did an anti-trafficking course. Carolyn & Luke attended an emotional wellbeing webinar.
**Teaching:** Carolyn wrote an evangelism course called First Steps: Sharing Jesus in Your Everyday. This became available on the SPCK Homegroups website. There were media opportunities around this as well as profiling it regularly on our social media platforms.
Carolyn continued to lecture on the Pioneer Chaplaincy & Mission course with the Light College. There were 3 students on the course for year 2.
**Communications** - Third Space Ministries staff have had over 50 media opportunities to speak on radio, TV or to have articles printed. These have included Premier Christian Radio, UCB radio, BBC radio, Revelation TV, TWR, BBC 1. Highlights included Carolyn doing Prayer for The Day on Radio 4, and Luke appearing on Sunday Morning Live. We continued to use our media consultant in a paid consultancy role.
We created 3 Easter meditation videos and a daily video Advent Calendar. These were a great way to increase our online presence and to share with people.
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**Fundraising -** Over 2021 we received grants from Baptist Insurance Committee and London Baptist Association. One supporter raised funds for us through a sponsored beard shave! And we had 3 supporters running the virtual London Marathon and raising over £7,000
We also raised funds through regular online Let’s Dance events and through MyHouseYourHouse fundraising event.
We had 2 new regular givers.
## **Other activities:**
**Day of Prayer –** we hosted an online day of prayer in May with approximately 14 in attendance.
## **Risk Management**
The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to those risks. The risk register is reviewed regularly at trustee meetings.
## **Financial review**
The financial review for the period showed total income of £64.2k (2020: £83.9k) of which £2.5k (2020: £6.4k) was in restricted funds. No grants were part of restricted income (2020: £5k). Total expenditure was £60.1k (2020: £76.1k) of which £17.4k (2020: £29.1k) was against restricted funds. Expenditure against unrestricted income included personnel costs of £34.5k. The charity started the year with total funds of £50k, £0.7k of which was restricted, and ended the year with total funds of £54.2k, £0.7k of which is restricted.
The income for the period was ahead of the trustee’s expectations. The trustees budgeted cautiously given the ongoing restrictions resulting from the Covid-19 pandemic but were blessed with higher than expected income from fundraising and fees received from speaking engagements.
The expenditure was below budget. The main variances were in employee costs as Ellie Barrett reduced her hours and recruitment of a replacement was delayed pending easing of Covid restrictions. There was also lower expenditure on expenses due to most interactions remaining online.
## **Reserves policy**
In the Trustees’ view, the reserves should provide the charity with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future.
The Trustees propose to maintain the charity’s reserves at a level which is at least equivalent to four months operational expenditure (staffing costs) and have done so having regards to its manner of operation of likely funding streams. This equates to approximately £20,000 for the budgeted 2022 staffing costs.
The Trustees review the amount of reserves that are required to ensure that they are adequate to fulfil the charity’s continuing obligations on a quarterly basis at their finance meeting.
Free reserves (ie unrestricted funds less the reserves policy amount) at 31 December 2021 are just over £34,000 which is above that which the trustees feel is necessary. The trustees are keen to maintain and enhance the ministry of the charity, maintaining and increasing the hours of staff. There is also an awareness that grant funding is more challenging in the current environment. The trustees have therefore set a deficit budget for 2022 and while they will continue to monitor costs, expect the level of reserves to decrease across the coming 2-3 years.
We will continue to pursue funding opportunities in order to maintain and grow the ministry as God directs us.
## **Thanks to all our supporters**
We offer our very grateful thanks to Morden Baptist Church for their financial, prayer and practical support, including the provision of office space. And we are also grateful to Open Door Church, Market Deeping for their regular financial and prayer support.
We are very grateful to 24-7 Ibiza, the YMCA, and Sports Chaplaincy UK for such positive working relationships.
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We are especially grateful to our volunteers and to all our individual donors who have given their money, time and talents to support our work. There are too many to list here. We are also very grateful for the committed prayer support of so many.
## **COVID-19**
When the pandemic struck and lockdown was imposed in March 2020, the work of Third Space in supporting workers in the DJ and nightlife industries became even more important. As the pandemic continued and restrictions on third spaces remained, we were able to carry on our support virtually through Zoom chaplaincy sessions and other platforms.
There was no impact on the work of the charity or its ability to meet its financial obligations
On behalf of the Trustees of Third Space Ministries
## **Name: Naomi Paul**
Signature:
Position: Trustee Dated: 18 October 2022
## **Name: Peter Bailey**
Signature:
Position: Trustee Dated: 18 October 2022
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## **Statement of Trustees Responsibilities**
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Independent Examiner**
The independent examiner, Mrs Jenny Faulkner was appointed at the trustees meeting held on the 22[nd] July 2019. Mrs Faulkner is a chartered accountant and technical consultant with Mercia Group Limited, a specialist technical and training company in the UK accountancy market, and has considerable experience of the charity sector including being part of the SORP consultation engagement process.
## **Approval**
This report was approved by the Trustees on the 18 October 2022 and signed on its behalf by:
Peter Bailey Trustee
Naomi Paul Trustee
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## **Independent Examiner's Report to the Trustees of Third Space Ministries Charity**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2021 which are set out on pages 8 to 10.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2. the accounts do not accord with those records.
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.
_Signed_
_Mrs Jennifer Faulkner, FCA_
_4 Sitwell Street Spondon Derby DE21 7FE_
_18 October 2022_
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## THIRD SPACE MINISTRIES
## **Statement of Financial Activities for year ended 31 December 2021**
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Unrestricted Funds Restricted Funds Total
2020 2021 2020 2021 2020 2021
£ £ £ £ £ £
Incoming Resources
Preaching/Teaching Fees 1,504 - 1,504
Donations 35,724 25,085 1,444 1,680 37,167 26,765
Gift Aid 4,647 6,917 - - 4,647 6,917
Grants 36,375 21,375 5,000 - 41,375 21,375
Text Giving 33 - - - 33 -
Fund raising 742 6,925 - 807 742 7,731
Other income - - - - - -
77,520 61,805 6,444 2,487 83,964 64,292
Resources Expended
10th Birthday costs 4,838 - 4,838
Charity management and admin 6,187 3,786 1,185 326 7,372 4,112
DJ Ministry Direct Expenses - 105 50 - 50 105
Donations to other charities 1,000 - 1,000
Employee Costs 33,990 34,529 24,957 16,345 58,947 50,874
Event Tickets 20 19 340 - 360 19
Festival Angels Direct Expenses -
General Expenses 137 22 1,500 107 1,637 129
LASA Direct Expenses - - 92 47 92 47
Nightlife Direct Expenses - - 543 357 543 357
Sports Chaplaincy Direct Expenses - 45 45
Training Courses 978 2,414 248 - 1,226 2,414
Travel 80 594 97 221 177 816
Wellsprings Direct Expenses 674 674
Expenditure on raising funds 95 214 - 95 214
46,998 42,685 29,057 17,403 76,055 60,088
Net incoming Resources 30,522 19,120 - 22,613 - 14,916 7,909 4,204
Transfers between funds - 19,044 - 14,859 19,044 14,859 - -
Funds brought forward 37,819 49,297 4,310 741 42,129 50,038
Funds carried forward 49,297 53,559 741 683 50,038 54,242
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## THIRD SPACE MINISTRIES
## Balance Sheet as at 31 December 2021
**----- Start of picture text -----**
2020 2021
£ £
Current Assets
Cash at Bank 50,038 54,242
Total Assets 50,038 54,242
Funds
Unrestricted 49,297 53,559
Restricted
DJ Ministry - -
Sports Chaplincy 302 292
Tennis - Love All Serve All 439 392
Total 741 684
Total Funds 50,038 54,242
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Approved by the Trustees on the 18 October 2022 and signed on its behalf by:
Peter Bailey Trustee
Naomi Paul Trustee
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## THIRD SPACE MINISTRIES
## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
## 1. Accounting Policies
## 1.1. The financial statements are prepared under the historical cost convention.
The accounts have been prepared on a receipts and payments basis as permitted by Charity Law. The provisions of the Charities SORP 2019 (Accounting and Reporting by Charities) have been followed where required.
- 1.2. Incoming Resources
Income comprises grants received and donations received from various sources. Income is accounted for in the period in which the money is received.
## 1.3. Resources Expended
Expenditure is included in the period in which it is expended.
## 1.4 Funds
Restricted funds are those moneys given to the Charity for specific projects. Current restricted fund balances are show on the balance sheet above.
Unrestricted funds are those moneys given to the Charity for the furtherance of our charitable objectives, but without any specific restrictions as to its use.
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