Parish Giving Scheme YEAR ENDED 31 DECEMBER 2024
Company no: 08824540 Charity no: 1156606
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Parish Giving Scheme
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ANNUAL REPORT & FINANCIAL STATEMENTS
REFERENCE AND ADMINISTRATIVE DETAILS
| REFERENCE AND ADMINISTRATIVE DETAILS | |
|---|---|
| STATUS | Parish Giving Scheme is a charitable company limited by guarantee, incorporated on 23rd December 2013 and registered as a charityon 17th March 2014. |
| GOVERNING DOCUMENT | The Company was established under a memorandum of association which sets out its objects and powers and is governed under its articles of association. |
| COMPANY NUMBER | 08824540 |
| CHARITY NUMBER | 1156606 |
| REGISTERED OFFICE & OPERATIONAL ADDRESS |
76 Kingsholm Road, Gloucester, GL1 3BD |
| TRUSTEES | Julie Dziegiel Phillip Blinkhorn Theo David Platt (resigned 31 December 2024) Rebecca Evans (resigned 31 December 2024) Rosemary Slater-Carr (Chair appointed 1 January 2024) Jonathan de Bernhardt Wood (appointed 1 January 2024) David White (appointed 1 January 2024) Terrence Willis (appointed 1 January 2024, resigned 29 March 2024) Fraser McNish (appointed 14 August 2024) Gabrielle Parikh (appointed 9 September 2024) |
| CHIEF EXECUTIVE OFFICER | Grant Forrest |
| BANKERS | Barclays Bank, Britannia Warehouse, The Docks,Gloucester,GL1 2EH |
| AUDITOR | Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW |
| SOLICITOR | Veale Wasbrough Vizards, Narrow Quay House,NarrowQuay,Bristol BS1 4QA |
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FOREWORD FROM THE CEO
The Parish Giving Scheme exists to serve the Church, providing a low-cost, secure and simpleto-use solution. The Scheme facilitates sustained, inflation-linked giving and enables mission and ministry to flourish. Through acts of radical generosity, as taught in the Gospels, our communities are enriched by the life of the Church. We hope to continue to see the Kingdom of God grow through radical generosity in its many forms.
Throughout 2024, the widespread effects of the cost-of-living and energy crises compounded voluntary income challenges across the sector, with churches at risk of losing income. However, for the thousands of churches using PGS, we have seen an encouraging rise in giving, with many givers opting in to annual inflationary increases. On behalf of the receiving churches, we express our gratitude to all those who choose to give through the Scheme.
The strategic priority for 2024 centred around implementing the change of ownership to the National Church. This was a significant moment in the Scheme’s journey; through the generous funding provided by the Archbishops’ Council, PGS could be made available to all parishes within the Church of England. The funding package for 2024 and 2025 is almost triple the level expected from diocesan contributions, which creates huge opportunity for the Scheme’s growth and stability as we move towards our vision to advance regular giving in every church.
Furthermore, we continued to work towards delivering our people strategy, which has successfully created a workplace with increased organisational capacity, where every team member can grow and develop. Staff retention and engagement remains consistently high, which is represented by our ability to deliver an exceptional giving service to an ever-increasing volume of givers and parishes.
We also renewed our focus on cyber security, reviewing key services and making improvements to further bolster our systems.
Looking forward to 2025 and 2026, our focus shifts to delivering a new digital platform to further increase our operational capacity and security. This will be a key transformational project for PGS, enabling us to serve more givers and parishes in a shared ministry of giving.
We continue to be encouraged by the significant growth in the numbers of parishes and givers, as well as improved diocesan engagement. We have also seen an increase in the value of the average weekly gift which, combined with the inflationary increase scheme, is securing the Church’s presence in local communities.
We look forward to the year ahead and beyond, as we align our work with what God is already doing in our communities.
Grant Forrest
CEO of Parish Giving Scheme
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FOREWORD FROM THE CHAIR
I am delighted to introduce this annual report. At the beginning of 2024, PGS changed ownership from a diocesan ownership model to being owned by Church of England Central Services. At the same time, the Church Commissioners and Archbishops’ Council committed to fund PGS so that all of the parishes of the Church of England can benefit from its services, and we are hugely grateful for their support. It has been immensely encouraging to see the continuing growth and development of PGS during 2024, knowing the benefit that PGS brings to our parishes in helping fund their ministry.
As well as maintaining the growth of PGS over the last year, we have invested significantly in our online platform to enable us to continue to grow, with more and more givers and parishes using our services. We have also reviewed the safeguarding dimension to our work, introducing a new policy and procedures, with safeguarding leads at staff and trustee levels, and improving the training programme for all.
I am very grateful to all the PGS staff for the excellent service they have given our parishes and those who give to support their ministry. My thanks too to all those within our dioceses and parishes who play a vital role in growing the use of PGS within our churches. Finally, my thanks to my fellow trustees for all they have contributed to PGS over the last year.
Rosie Slater-Carr
Chair of the Board of Trustees
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Vision: ‘To advance regular giving in every church’
Mission: We support the Christian community to engage in a culture of generosity through regular giving. During times of change, we are helping to grow the Kingdom of God by enabling and inspiring committed regular giving, which transforms the life and ministry of churches and charities. Our approach is to support all givers, in whichever way they choose to give, to become regular givers.
VALUES
Generosity (see Luke 10:25-37)
Through acts of ‘radical generosity’, as taught in the Gospels, our communities are enriched by the life of the Church. It is through this ‘radical generosity’, that we will continue to see the Kingdom of God grow.
As a team, we value generosity and demonstrate this by encouraging generosity in many forms, including giving our time to serve our local communities.
Relationships (see Philippians 2:5-11) in Community (see Romans 12:5)
Our relationships should be the same as Christ Jesus’: demonstrating humility, integrity and obedience. We recognise that relationships are key to our success in supporting the Church through our ministry. In building relationships, we build a community to encourage generous giving as we work together.
As a team, we show our value of relationships in community by actively and openly engaging with those we work with, both internally and externally. We demonstrate this through regular conversations, meetings and the sharing of ideas. By building our network, we create effective partnerships in the knowledge that we can deliver more when we work together.
Learning (see Proverbs 18:15)
‘Every day is a school day’; we approach each day at PGS with the intention of learning, recognising that to be better tomorrow, we need to learn today.
We value learning – we invest in our team to prepare for future challenges and opportunities. We listen to all those with whom we have relationships so that we can adapt and grow our services, aligning the pursuit of our vision and mission with their needs.
Excellence (Colossians 3:23)
Our creator, God, inspires us through the world that He created to deliver all aspects of PGS with excellence. We commit our plans to God and seek His will to help us be the best we can.
Recognising that excellence is different to perfection, we aspire to be exemplary in our approach to people, the planet and prosperity as stewards of the resources we are entrusted with.
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STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trustees present their report and the audited financial statements for the year ended 31 December 2024. Reference and administrative information set out on page 2 forms part of this report. Parish Giving Scheme (PGS) (also referred to as the Scheme) was incorporated on 23 December 2013 and registered as a charity on 17 March 2014. Up until 31 December 2023, Dioceses that participated in the activities of PGS were required to become members of the company. Following the change of ownership, all parishes are able to use the PGS service due to being centrally funded by the Archbishops’ Council (“AC”).
With effect from 1 January 2024, a change in the ownership of PGS was completed, which removed the existing members of the company (i.e. the 35 Diocesan members) and established the Church of England Central Services (ChECS) as the sole member with full control of PGS and its operations. PGS has been consolidated in the group financial statements of ChECS for the year ended 31 December 2024.
Trustees
The PGS has a board of up to 12 trustees. Trustees are appointed by ChECS, however prior to the change of ownership, trustees were appointed by the PGS members. There are currently seven trustees reflecting a range of skills pertinent to the development of the PGS service and the geographical spread of the Scheme around England.
When new trustees are appointed, they are given a formal induction to the work of PGS by the Chair and CEO. They are provided with the information needed to fulfil their roles, which includes information about charity law. New trustees are nominated by members of the Board and appointed where they have the necessary skills to contribute to the charity’s management and development. Appointments are approved by ChECS.
Board Meetings
Trustees are expected to engage actively in the governance of PGS. Board meetings are held quarterly where trustees receive regular reports on the development, activity, and performance of the PGS organisation and service. The Board makes strategic decisions on the operation of the Scheme, including structural and financial arrangements, the terms of business for the Scheme, and approving, monitoring and reviewing development proposals.
Membership
The only member of the Charitable Company is ChECS as of 1[st] January 2024.
Key Management Personnel
The key management personnel of the charity include the Trustees listed on page 2, together with the Chief Executive (Grant Forrest). Whilst the Trustees are not remunerated for their services, the remuneration of the paid post holders is determined by the Trustees with due reference to charity sector benchmarks and related information.
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OBJECTIVES
The objects of the charity are:
• To promote and assist the work, objects and purposes of the Church of England (including the raising of funds);
• To promote and assist the work, objects and purposes of charities which advance the Christian religion, whether or not within the Church of England (including the raising of funds); and
• To support the efficiency and effectiveness of the administration of charities (including by the raising of funds) which advance the charitable purposes referred to above.
The Trustees continue to regard and consider the Charity Commission's general guidance on the organisation’s public benefit in the review of its aims and objectives and in planning future developments. This is an ongoing requirement of the Charities Act 2011.
During 2024, the core PGS service has enabled more than 5,500 Church of England parishes to access funds from more than 88,000 givers and the accompanying Gift Aid more quickly and efficiently than would have otherwise been the case. This supports parishes to better fulfil their key activities of promoting the whole mission of the Church throughout their community.
The impact of the cost-of-living crisis was significant in many aspects of life; it also posed challenges to the financial stability of churches. The Scheme proved its value to the Church of England during this time by continuing to enable the increase of committed regular giving in line with or above inflation, which supported the Church's mission locally.
ACTIVITIES
PGS’s principal activity in pursuit of its objectives is to provide the most efficient and effective way for people to financially support the Church of England locally. This is done via a regular giving scheme which collects gifts through Direct Debit and makes the gifts available to a specified church or parish within 10 days. Givers can also commit to annually inflating their gifts to ensure its spending power is maintained. Gift Aid on all eligible gifts is claimed monthly and passed on to the specified churches as soon as it is received from HMRC.
This activity has been designed to specifically support and enhance the ecclesiology of the Church of England; being one body working in and for every community in the country. The administrative cost is funded by the Archbishops’ Council.
By the end of 2024, regular giving across 38 different dioceses was being processed in support of the Church’s work (2023:35).
In 2024 we are pleased to report that £99.9m was forwarded to parishes through the generosity of individual donors’ gifts and the associated gift aid, a welcome 18% increase on 2023.
STRATEGIC REVIEW
ACHIEVEMENT AND PERFORMANCE
The principal activity of PGS is the provision of a professional giving scheme to enable givers to support their local church.
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From the early days of its life in the Diocese of Gloucester, the Scheme was designed to be able to handle a substantial number of givers and to be usable for any parish regardless of size, or theological tradition. The simplification of parish administration is an important additional benefit, as this provides an element of futureproofing to the Church’s principal income stream.
The last few years have been full of uncertainty and dioceses, parishes and givers have been dealing with unprecedented challenges in the face of circumstances such as the ongoing costof-living crisis. PGS has responded to this period of change by working tirelessly to ensure we continue to facilitate regular giving, which provides stability and confidence, and transforms the life and ministry of churches.
2024 Strategic Priorities Review
After achieving our 2023 priorities, we were able to pursue new priorities that built on past performance and harnessed the benefits of being part of the Church of England.
In 2024, in pursuit of achieving our vision:
Our thematic goal was ‘security’, in which we focussed on enhancing the security of our platforms and strengthening our national and diocesan relationships; as well as being secure in our identity, while having a strong team through the transitional period.
By continuing to invest in the team’s development, implementation of the new platform and cultivating stronger diocesan relationships, we became part of the National Giving Directorate whilst holding the PGS identity and working to increase mitigation of cyber risk.
Key deliverables:
Increased cyber security
- By working with technology partners to further enhance our digital platform and systems, we increased the level of security and designed a new IT infrastructure to maintain best practice.
Implementation of improved finance function
- In recognising the growth of the Scheme requires different financial services, we implemented new financial systems, which included an external finance function, to increase the performance of the team.
Relationship with dioceses and National Giving Directorate
- By working closely with dioceses and the National Giving Team to deliver PGS in partnership, we were able to launch PGS in an additional three dioceses.
Operational communications review, development and implementation
- A review was conducted to ensure that our communications remain appropriate and exemplary at providing givers and parishes with a firm understanding of the Scheme. This led to improved access to resources for diocesan teams, increasing the ease of use and adoption of PGS materials.
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Team development and retention through a period of change
- We continued to invest in the team’s progression, ensuring that wellbeing is prioritised and there were plenty of opportunities to gain new skills and knowledge. Several team members completed additional Continued Professional Development through apprenticeship programmes.
2025 Strategic Priorities
To continue towards our vision of advancing regular giving in every church and maintain a focus on providing a solution that facilitates Christian generosity, PGS has set a long-term strategic framework with the acronym ‘GIVERS’.
G row our digital giving capability for parishes and givers, creating an integrated giving platform.
I nvest in the PGS team to increase capacity and maintain retention.
- V igilantly protect our reputation as a trusted provider of giving services, delivering business as usual activity with excellence.
E ngage with the National Church, working hand-in-glove to improve efficiencies of
operations and support the National Giving strategy.
R esource dioceses and parishes to advocate for PGS, helping us to grow the number of registered parishes and givers.
S ecure PGS systems by continuously improving our approach to mitigating cyber security risks.
KEY STATISTICS: Giver Value
PGS seeks to improve the experience of giving to support parish ministry, improve the effectiveness of gifts by providing givers with the option to maintain its “real value” and reduce the local administrative burden on parishes. The following are some of the regularly monitored performance measures used by management:
| performance measures used by management: | ||
|---|---|---|
| Measure | Dec-23 | Dec-24 |
| Number of Givers | 74,378 | 88,762 |
| Number of Churches | 4,534 | 5,652 |
| Total forwarded to Churches in month | £7.6M | £8.4M |
| Monthly average of monthly gifts inc Gift Aid |
£99.35 | £101.63 |
| Percentage of gifts on which Gift Aid is claimed |
88.00% | 88.50% |
| Percentage ofgivers opting to inflate | 48.00% | 46.50% |
We have many testimonials from parishes that have seen significant increases in giving when they have run an effective generosity campaign alongside the introduction of the PGS.
PGS is set up to serve the entire Church family, no matter the amount that individuals wish to give and whether or not Gift Aid can be claimed on their giving.
The lowest monthly regular gift handled is £1 (2023: £1), and the highest is £5,000 (2023: £5,000).
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The lowest one-off gift was £1 (2023: £1), and the highest was £40,600 (2023: £50,000).
The average one-off gift (mean) was £173.51 (2023: £191.41), and the median gift value was £27.00 (2023: £25.00).
GROWTH
2024 was the twelfth year of PGS serving parishes and givers across the Church. The Scheme developed by growing within existing areas of operation and moving into new dioceses and parishes.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | Forecast 2025 |
|---|---|---|---|---|---|---|
| Underlying gifts |
£46.2m | £53.4m | £61m | £69.0m | £81.1m | £93.2m |
| Gift Aid reclaimed |
£10.8m | £12.4m | £14.1m | £16.0m | £18.8m | £21.6m |
| Total forwarded to parishes |
£57.0m | £65.8m | £75.1m | £85.0m | £99.9m | £114.8m |
| Givers | 54,002 | 61,655 | 67,742 | 74,378 | 88,762 | 103,146 |
The Trustees expect that the Charity’s income in 2025 will once again see substantial growth. This is expected to come from:
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Central funding which enables all Parishes in the Church of England to use the scheme.
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Working in close partnership with the National Giving Team to maximise potential when launching PGS in dioceses and parishes.
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Existing parishes continuing to attract new givers.
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The continuation of regular, one-off and contactless giving mechanisms.
DIOCESAN ROLLOUT
PGS was established to serve the Church and understands the importance of the unity of the Body of the Risen Christ. In its operation, it therefore actively seeks to enhance the common purpose of the Church and its structures.
The growth of PGS and its resourcing occurs through the Church of England’s diocesan structure. Diocesan Boards of Finance (DBFs) are invited to support the roll-out of PGS to parishes within their diocese.
Up until 31 December 2023, in committing to support PGS, DBFs agreed to become a member of the company, pay an initial diocesan membership contribution to PGS to provide operational reserves, and make a grant available to PGS to cover ongoing service contributions and the overhead costs of operating within the diocese.
As of 1 January 2024, DBFs are still invited to participate directly with PGS in a partnership agreement, although no funds are requested from a diocese. Parishes are able to use the scheme irrespective of a signed diocesan partnership agreement. However, PGS is still seeking
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the support of all dioceses in the participating agreement as this enables the most effective working relationship.
It is therefore positioned as a service provided by DBFs in support of parishes. PGS also seeks to be an excellent model of inter-diocesan collaboration, with advisers from participating dioceses helping neighbouring colleagues, and good practice being refined from one launch to another.
FUNDRAISING STANDARDS
The Charities Act 2011, as amended by the Charities (Protection and Social Investment) Act 2016, requires charities to publish information about fundraising standards. The Parish Giving Scheme itself does not carry out fundraising activity and therefore has nothing to report specifically. Fuller consideration of each of the disclosure requirements related to fundraising are noted below:
The approach taken to fundraising
No direct fundraising is activity is undertaken by PGS, this is undertaken local by the parishes and dioceses which work with PGS.
Regulation
No additional regulation in relation to fundraising is noted other than the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016.
Monitoring fundraisers
As noted above, direct fundraising is undertaken by individual parishes and dioceses and not undertaken by PGS directly. PGS is a facilitator of donations received only.
Fundraising complaints received
This is not applicable to PGS given the points noted above.
Protection of vulnerable people
PGS has suitable safeguarding processes and procedures in place to address the needs of vulnerable givers when they are directed to use PGS as a service by parishes and dioceses.
FINANCIAL REVIEW
Most of the PGS restricted income relates to the restricted parish gifts and associated Gift Aid reclaimed. For 2024, the combined gift and Gift Aid income amounted to £99.9m (2023: £87.4m). An equivalent amount is recorded as restricted expenditure, reflecting that this full amount is returned to the parishes.
The unrestricted income for PGS mainly comprises National Church Institutions (“NCIs”) central funding of £900k (2023: service contributions from member Dioceses of £813k and initial contributions from member Dioceses of £20k). For further details, see note 2 on page 25. Unrestricted expenditure for 2024 amounted to £1.175m (2023: £990k). For further details, see notes 3 and 5 on pages 26 and 27.
Following the launch of the digital platform project, the PGS Trustees recognise the creation of the digital platform as an intangible asset under construction. Given the significant investment
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made to digitise the giving experience for givers, parishes and dioceses shown on the charity’s balance sheet, this approach recognises the value of the platform. The Trustees also recognise that the lifespan of the digital platform is relatively short as technology advances, so there will be a need to review the underlying systems and processes on an ongoing basis. Currently, significant investment is being made into a new platform, as this asset has yet to come in to use so has yet to be amortised.
RESERVES POLICY AND POSITION
A major part of the Charity’s income and expenditure is in relation to the amounts collected from givers and returned (in full) to the relevant parish. The Trustees recognise that these amounts are wholly restricted and therefore cannot be accessed or used by the Charity for its day-to-day operations. As such, the Trustees’ focus is principally in relation to the availability of unrestricted funds. PGS has a simple structure and activities, which is funded by a grant from the Archbishops’ Council annually.
To support the Charity’s future and necessary investment in IT, the Trustees acknowledge that at least part of the charity’s unrestricted funds should be earmarked for such purposes. An amount of £186k has been set aside as a designated IT fund at 31 December 2024 (2023: £186k).
The Trustees have also separated the funds that are represented by the carrying value of the charity’s intangible fixed assets in relation to the website development and the digital project. This is on the basis that these intangible assets are essential to the day-to-day operations of the charity and therefore, the carrying value is not available to the charity for its operational needs. As such, an amount of £2.7m has been set aside as a designated intangible fixed asset fund at 31 December 2024 (2023: £696k).
The remainder of the Charity’s general unrestricted funds (or free reserves) totalling £129k (2023: £220k) are available to the Charity for its day-to-day requirements and to cover the cost of unforeseen contingencies. As this is below the reserves policy to hold free reserves equivalent to a minimum of 3 months of operating costs (£200k), Trustees will look to take steps in future budgeting to address this, as well as looking to enhance other income and funding sources where possible.
Examples of how these reserves might be used are:
a) Covering unforeseen emergencies or other unexpected need for funds, such as an unexpectedly large repair bill or finding ‘seed-funding’ for an urgent project.
b) Covering unforeseen day-to-day operational costs, such as employing temporary staff to cover a long-term sickness absence.
c) Fulfilling the financial liabilities in the event of the charity ceasing operations.
d) Planned short term commitments for which a designated fund has not been established. (A planned spending commitment that cannot be met from future income would imply a need for a specific sum to be set aside - often this amount will often be included within designations in accounts.)
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e) Funding short-term deficits in a cash budget.
The Trustees will review any excess reserves annually and respond accordingly based on the needs of the organisation.
RISK MANAGEMENT
The Trustees have a risk management strategy which comprises:
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an annual review of the principal risks and uncertainties that the charity faces;
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the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
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the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
The Trustees place high importance on managing reputational risk. We judge there to be two principal contributors to reputational risk - the first is systems failure which would prevent money being forwarded to parishes on time, which is managed by investing time and money into maintaining systems as described above. The second element of risk is cyber-fraud, which is managed by buying in external expertise to support the development and monitoring of IT security across the platform and working environment.
COMPLAINTS POLICY
The PGS has a complaints policy and procedure for our service users and all stakeholders, and sets high standards for our staff. The Trustees are pleased to report that during 2024 no formal complaints were received (2023: nil).
When informal feedback is received from dioceses, the network of giving advisers or parishes, this is considered appropriately either operationally or strategically depending on the nature of the feedback.
GOING CONCERN
Overview
For the assessment of going concern, those charged with governance only consider the financial activity relating to the unrestricted operating funds of PGS. This is because all restricted and designated funds are only available for specific projects and purposes which do not relate to ongoing operating activities of PGS. The unrestricted funds represent the operational income and expenditure of the organisation that allows it to continue as a going concern. In performing this review, the Trustees have considered a period to December 2026.
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Income
There is grant agreement that is provided by the Archbishops’ Council (“AC”) for operational purposes. This is as a result of the change in control/ownership as of January 2024 and is supported by the operating agreement between PGS, ChECS and AC. The operating agreement notes that AC will fund PGS on an ongoing annual basis subject to suitable operating plans being agreed each year.
Therefore, PGS is solely reliant on the liquidity of AC (and the NCIs more widely) to continue funding PGS. In normal circumstances this would be a highly material risk in relation to PGS’ status as a going concern. However, given that ChECS is the parent of PGS, there is an operating agreement in place and the NCIs as a whole have sufficient liquid assets, the risk of PGS not being considered a going concern is very low.
If for whatever reason, income from AC were to reduce then PGS would assess its activities based on the funding available, and/or seek other funding options within the Church community.
Expenditure
PGS will look to match expenditure to the levels of income available in the year to obtain a breakeven position in any given year’s unrestricted operating budget.
Conclusion
The Trustees charged with governance consider PGS to be a going concern due to the ongoing income receivable from AC via the operating agreement and as part of the wider NCIs. If, for whatever reason, income was to go down then PGS would match its operating cost base to the available funds accordingly to ensure its continuation as a going concern.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also the Directors of Parish Giving Scheme for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law 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 income and expenditure for the period. In preparing those financial statements the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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.
Each of the Trustees confirms that to the best of their knowledge there is no information relevant to the audit of which the auditors are unaware. The Trustees also confirm that they have taken all necessary steps to ensure that they themselves are aware of all relevant audit information and that this information has been communicated to the auditors.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
THE TRUSTEES
The Trustees who served during the period up to the date of this report are shown on page 2.
AUDITORS
The reappointment of Crowe as auditors to PGS will be proposed at the Annual General Meeting 2025.
Approved by the Trustees on ………8 May……………………………………………. 2025 and signed on their behalf by:
Rosie Slater-Carr Chair of the Board of Trustees
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Independent Auditor’s Report to the Members of Parish Giving Scheme
Opinion
We have audited the financial statements of Parish Giving Scheme for the year ended 31 December 2024 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company 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 charitable company'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.
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Parish Giving Scheme
YEAR ENDED 31 DECEMBER 2024
Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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 our audit
-
the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the charitable company 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:
-
adequate accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
17 17
Parish Giving Scheme
YEAR ENDED 31 DECEMBER 2024
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on pages 14-15, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 charitable company 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 these financial statements.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were data protection legislation and regulations, taxation and employment legislation.
18 18
Parish Giving Scheme
YEAR ENDED 31 DECEMBER 2024
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records including any material misstatements resulting from fraud, error or noncompliance with law or regulations.
However, owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected even though the audit is properly planned and performed in accordance with the ISAs (UK). No internal control structure, no matter how effective, can eliminate the possibility that errors or irregularities may occur and remain undetected. In addition, because we use selective testing in our audit, we cannot guarantee that errors or irregularities, if present, will be detected. Accordingly, our audit should not be relied upon to disclose all such misstatements or frauds, errors or instances of non-compliance as may exist.
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 our report
This report is made solely to the charitable company’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 charitable company’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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Nicola May
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
London
Date 20 May 2025
19 19
Parish Giving Scheme
YEAR ENDED 31 DECEMBER 2024
Statement of financial activities (incorporating an income and expenditure account)
For the year ended 31 December 2024
| Restricted Unrestricted | Restricted Unrestricted | 2024 total | 2023 total | ||
|---|---|---|---|---|---|
| Note | £'000 | £'000 | £'000 | £'000 | |
| Income from: | |||||
| Voluntary Income | |||||
| Grant Income | 2 | 2,107 | 900 | 3,007 | 500 |
| Donations Income | 2 | 99,926 | - | 99,926 | 88,304 |
| Other Income | 2 | - | 38 | 38 | 29 |
| Total | 102,033 | 938 | 102,971 | 88,833 | |
| Expenditure on: | |||||
| Charitable activities | 3 | 99,926 | 1,175 | 101,101 | 88,461 |
| Total | 99,926 | 1,175 | 101,101 | 88,461 | |
| Net income/(expenditure) | 4 | 2,107 | (237) | 1,870 | 372 |
| Transfer between funds | 11 | (2,107) | 2,107 | - | - |
| Net movement in funds | - | 1,870 | 1,870 | 372 | |
| Reconciliation of funds | |||||
| Funds at the start of the year 11 | Funds at the start of the year 11 | - | 1,102 | 1,102 | 730 |
| Funds at the end of the year |
11 | - | 2,972 | 2,972 | 1,102 |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 11 to the financial statements.
Full comparatives for the year to 31st December 2023, are shown in note 13.
The notes on pages 23 to 33 form part of the financial statements.
20 20
Parish Giving Scheme YEAR ENDED 31 DECEMBER 2024
As at 31 December 2024
Company number 08824540
Balance sheet
| 2024 | 2023 | ||
|---|---|---|---|
| Note | |||
| £'000 | £'000 | ||
| Fixed assets | |||
| Intangible fixed assets | 7 | 2,657 | 696 |
| Current assets | |||
| Stock | 1 | 1 | |
| Debtors | 8 | 114 | 88 |
| Cash at bank and in hand | 1,028 | 629 | |
| 1,143 | 718 | ||
| Creditors: amount due within one year | 9 | (828) | (312) |
| Net current assets | 315 | 406 | |
| Net assets | 2,972 | 1,102 | |
| Reserves | |||
| Restricted funds | 11 | - | - |
| Unrestricted funds | |||
| Designated funds | 11 | - | - |
| Intangible fixed assets | 11 | 2,657 | 696 |
| IT fund | 11 | 186 | 186 |
| Development fund | 11 | - | - |
| General funds | 11 | 129 | 220 |
| Total funds | 2,972 ~~_~~ |
1,102 ~~;~~ |
Approved by the Trustees on……………8 May………………………………………2025 and signed on their behalf by:
7ByS gS Rosie Slater-Carr Chair of the Board of Trustees
The notes on pages 23 to 33 form part of the financial statements.
21 21
Parish Giving Scheme YEAR ENDED 31 DECEMBER 2024
Statement of Cashflows For the Year Ended 2024
| Statement of Cashflows For the Year Ended 2024 |
||
|---|---|---|
| 2024 | 2023 | |
| £'000 | £'000 | |
| Net cash inflow from operating activities (see below) | 2,506 | 661 |
| Cash flows from investing activities: | ||
| Purchase of intangible fixed assets | (2,107) | (517) |
| Change in cash & cash equivalents during year | 399 | 144 |
| Cash & cash equivalents at 1 January | 629 | 485 |
| Cash & cash equivalents at 31 December | 1,028 | 629 |
| Reconciliation of net expenditure to net cash flows from operating | ||
| activities | ||
| Net income/(expenditure) as per statement of financial activities | 1,870 | 372 |
| Adjustments for: | ||
| Amortisation of intangible fixed assets | 146 | 145 |
| Decrease in stock | - | 1 |
| (Increase) in debtors | (26) | (33) |
| Increase in creditors | 516 | 176 |
| Net cash inflow from operating activities | 2,506 | 661 |
| Analysis of cash and cash equivalents | ||
| Cash in bank & in hand | 1,028 | 629 |
| Total cash and cash equivalents | 1,028 | 629 |
No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.
The notes on pages 23 to 33 form part of the financial statement.
22 22
Notes to the financial statements For the year ended 31 December 2024
1. Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (2nd edition, effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
b) PGS meets the definition of a public benefit entity under FRS 102. PGS is a company registered in England and Wales, company number 08824540. Its registered address is 76 Kingsholm Road, Gloucester, GL1 3BD. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
c) The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives Trustees confidence the charity remains a going concern for a period in excess of 12 months from the date of approval of these accounts. Following the change of ownership to Church of England Central Services (ChECS), there are no planned changes to the organisation’s structure.
d) All income is recognised once the charity has entitlement to income, it is probable that income will be received, and the amount of income receivable can be measured reliably.
e) Voluntary income received as contributions from member dioceses represent the initial amounts received from members when they join The Scheme. These amounts are included in full in the statement of financial activities when receivable. The main income for the Scheme is gifts received from parishes, with the gift aid being claimed on such gifts as appropriate.
f) Revenue grants are credited to the statement of financial activities when received or receivable whichever is earlier.
g) Where unconditional entitlement to grants receivable is dependent upon fulfilment of conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions will be met.
h) Intangible fixed assets are those related to the development of the PGS website and the Digital Platform which in the opinion of the Trustees satisfy the criteria to be classified as intangible assets that provide future economic benefits to PGS. The intangible fixed assets are stated at cost less amortisation, unless classed as an asset under construction. Amortisation is provided at rates calculated to write off the cost less estimate residual value over the expected useful economic life of four years. Intangible fixed assets are also reviewed for impairment on an annual basis. Where indicators of impairment exist, Trustees will perform a full review of potential impairment as required and impair the asset where compelled to do so.
i) Stock is held at the lower of cost and net realisable value.
23 23
Notes to the financial statements For the year ended 31 December 2024
j) Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
k) Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
l) Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
m) Restricted funds are to be used for specific purposes as laid down by the giver.
n) Unrestricted funds are gifts and other income receivable or generated for the objects of the charity.
o) Designated funds are those earmarked by the Board of Trustees for particular purposes. Whilst such funds are kept separate for administrative purposes, they do not constitute legally separate funds.
p) Expenditure is recognised in the period in which they are incurred. Expenditure includes attributable VAT which cannot be recovered. The key components of expenditure are staff costs, IT costs and website development costs. Expenditure on charitable activities also includes indirect support costs (including governance costs).
q) Governance costs include all costs of compliance with constitutional and statutory requirements, including legal and audit fees and the costs of meetings.
r) The charity operates a defined contribution pension scheme for its staff. The assets of The Scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable under The Scheme by the charity to the fund. The charity has no liability under The Scheme other than for the payment of those contributions.
s) Rental payments under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease.
24 24
Notes to the financial statements For the year ended 31 December 2024
2. Income from voluntary activities
| Restricted | Unrestricted | 2024 | 2023 | |
|---|---|---|---|---|
| funds | funds | Total | Total | |
| £’000's | £’000 | £000 | £000 | |
| Ongoing monthly service contributions from member Dioceses |
- | - | - | 813 |
| Regular Gifts | 78,265 | - | 78,265 | 69,414 |
| Regular Gift Aid reclaimed | 18,234 | - | 18,234 | 16,100 |
| One Off gifts | 2,526 | - | 2,526 | 1,570 |
| One Off Gift Aid reclaimed | 559 | - | 559 | 346 |
| Contactless gifts | 314 | - | 314 | 37 |
| Contactless Gift Aid reclaimed | 28 | - | 28 | 4 |
| Initial contributions from member Diocese |
- | - | - | 20 |
| Grant from Archbishops’ Council | 1,823 | 900 | 2,723 | 500 |
| Grants from Dioceses | 284 | - | 284 | - |
| Other income | - | 38 | 38 | 29 |
| 102,033 | 938 | 102,971 | 88,833 |
All income from ongoing service contributions from member Dioceses, initial contributions from member Dioceses and other income in 2024 and 2023 was unrestricted. The unrestricted grant income from the Archbishops’ Council in 2024 relates to the operating agreement in place between both entities. The capital grant from Archbishops’ Council in 2024 relates to PGS’s digital project and is a contribution towards the development phase. Grants from Dioceses in 2024 relate to the development of the digital project. All other income was credited to restricted funds in both 2024 and 2023.
25 25
Notes to the financial statements For the year ended 31 December 2024
3. Expenditure on charitable activities
| Restricted funds |
Unrestricted funds |
2024 Total | 2024 Total 2023 Total |
|
|---|---|---|---|---|
| £’000 | £’000 | £’000 | £’000 | |
| Regular grants back to parishes | 78,265 | - | 78,265 | 69,414 |
| Regular Gift Aid forwarded to parishes 18,234 | Regular Gift Aid forwarded to parishes 18,234 | - | 18,234 | 16,100 |
| One Off grants back to parishes | 2,526 | - | 2,526 | 1,570 |
| One Off Gift Aid forwarded to parishes 559 | One Off Gift Aid forwarded to parishes 559 | - | 559 | 346 |
| Contactless grants back to parishes | 314 | - | 314 | 37 |
| Contactless Gift Aid forwarded to parishes |
28 | - | 28 | 4 |
| Total Grants back to parishes including Gift Aid |
99,926 | - | 99,926 | 87,471 |
| Support costs: | ||||
| Staff costs – note 5 | - | 382 | 382 | 350 |
| Governance | - | 37 | 37 | 13 |
| Website development costs | - | 114 | 114 | 122 |
| Digital project IT costs | - | - | - | 14 |
| Amortisation charge | - | 146 | 146 | 145 |
| Other support costs | - | 496 | 496 | 346 |
| 99,926 | 1,175 | 101,101 | 88,461 |
All expenditure on staff costs, governance costs and other costs in 2024 and 2023 was unrestricted.
26 26
Notes to the financial statements For the year ended 31 December 2024
4. Net expenditure and net movement in funds
| 2024 | 2023 | |
|---|---|---|
| Total | Total | |
| £’000 | £’000 | |
| This is stated after charging: | ||
| Auditors’ remuneration – audit | 34 | 11 |
| Amortisation | 146 | 145 |
| Operating leases – land and buildings (note 12) | 33 | 31 |
5. Staff numbers and costs
The aggregate payroll costs for staff was as follows:
| 2024 | 2023 | |
|---|---|---|
| £'000 | £'000 | |
| Wages and salaries | 303 | 281 |
| Social security costs | 33 | 28 |
| Employers pension contributions | 46 | 41 |
| 382 | 350 |
The average number of persons employed by the charity (excluding Trustees who are all nonexecutive) are as follows:
| No. of | No. of | |
|---|---|---|
| employees 2024 | employees 2024 employees 2023 |
|
| Charitable activities | 9 | 9 |
On an annualised basis, one employee earned between £80,001-£90,000 during the year. (2023: one in the range £70,001-£80,000).
27 27
Notes to the financial statements For the year ended 31 December 2024
Remuneration of key management personnel
Key management personnel are deemed to be the Trustees and those having authority and responsibility, delegated to them by the Trustees, for planning, directing and controlling the activities of the PGS. During 2024 the key management personnel comprised Trustees and Chief Executive. The Trustees are not remunerated for their services to the charity. The total remuneration for the CEO (together with employer pension and national insurance contributions) amounted to £102,388 (2023: £95,157).
Transactions with Trustees
Seven Trustees (2023: six) received reimbursement (in part paid directly to third parties) for outof-pocket expenses during the period amounting to £1,727 (2023: £817), for travel and subsistence in connection with their duties as Trustees.
Five Key Management Personnel members (2023: six) made gifts of £4,874 (2023: £2,426) (excluding Gift Aid) to PGS during the year, to financially support the Church of England in their locality.
6. Taxation
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
7. Intangible fixed assets
| Assets Under | Digital and | Total | |
|---|---|---|---|
| Construction | Website | ||
| £'000 | |||
| £'000 | £’000 | ||
| Cost or valuation: | |||
| At 1 January 2024 | 517 | 580 | 1,097 |
| Additions | 2,107 | - | 2,107 |
| At 31 December 2024 | 2,624 | 580 | 3,204 |
| Amortisation: | |||
| At 1 January 2024 | - | (401) | (401) |
| Charge for year | - | (146) | (146) |
| At 31 December 2024 | - | (547) | (547) |
| Net book value: | |||
| At 1 January 2024 | 517 | 179 | 696 |
| At 31 December 2024 | 2,624 | 33 | 2,657 |
28 28
Notes to the financial statements For the year ended 31 December 2024
8. Debtors: amounts falling due within one year
| 2024 | 2023 | |
|---|---|---|
| £'000 | £'000 | |
| Trade debtors | - | 1 |
| Prepayments and other debtors | 114 | 87 |
| 114 | 88 | |
| 9. Creditors: amounts falling due within one year | ||
| 2024 | 2023 | |
| £'000 | £'000 | |
| Trade creditors | 59 | 44 |
| Other taxes and social security | 8 | 8 |
| Accruals and other creditors | 725 | 260 |
| Amounts owed to group undertakings | 36 | - |
| 828 | 312 |
9. Creditors: amounts falling due within one year
10. Analysis of net assets between funds
| Restricted | Designated funds | General funds | Total funds | |
|---|---|---|---|---|
| funds 2024 | 2024 | 2024 | 2024 | |
| £’000 | £’000 | £’000 | £’000 | |
| Intangible fixed assets | - | 2,657 | - | 2,657 |
| Net current assets | - | 186 | 129 | 315 |
| Net assets at 31 | ||||
| December 2024 | - | 2,843 | 129 | 2,972 |
29 29
Notes to the financial statements For the year ended 31 December 2024
Comparative analysis for 2023
| Restricted | Designated funds | General funds | Total funds | |
|---|---|---|---|---|
| funds 2023 | 2023 | 2023 | 2023 | |
| £’000 | £’000 | £’000 | £’000 | |
| Intangible fixed assets | - | 696 | - | 696 |
| Net current assets | - | 186 | 220 | 406 |
| Net assets at 31 | ||||
| December 2023 | - | 882 | 220 | 1,102 |
11. Movement in funds
| Balance at | Balance at | ||||
|---|---|---|---|---|---|
| 1st January | Income | Expenditure Transfers | Expenditure Transfers | 31st | |
| 2024 | December | ||||
| 2024 | |||||
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Unrestricted funds | |||||
| General fund | 220 | 938 | (1,029) | - | 129 |
| Designated funds: | |||||
| IT fund | 186 | - | - | - | 186 |
| Intangible fixed assets fund 696 | Intangible fixed assets fund 696 | - | (146) | 2,107 | 2,657 |
| Total Unrestricted Funds | 1,102 | 938 | (1,175) | 2,107 | 2,972 |
| Restricted funds | |||||
| Parish gifts | - | 99,926 | (99,926) | - | - |
| Digital project grant | - | 2,107 | - | (2,107) | - |
| Total Restricted Funds | - | 102,033 | (99,926) | (2,107) | - |
| Total Funds | 1,102 | 102,971 | (101,101) | - | 2,972 |
£2.107m of intangible fixed asset expenditure has been incurred in the year. This expenditure has been transferred to the intangible asset fund and capitalised as an intangible fixed asset.
30 30
Notes to the financial statements For the year ended 31 December 2024
Comparative movements for 2023
| Balance at | Balance at | ||||
|---|---|---|---|---|---|
| 1st January | Income | Expenditure Transfers | Expenditure Transfers | Expenditure Transfers 31st |
|
| 2023 | December | ||||
| 2023 | |||||
| £’000 | £’000 | £’000 | £’000 | £’000 | |
| Unrestricted funds | |||||
| General fund | 206 | 862 | (831) | (17) | 220 |
| Designated funds: | |||||
| IT fund | 200 | - | (14) | - | 186 |
| Intangible fixed assets fund 324 | Intangible fixed assets fund 324 | - | (145) | 517 | 696 |
| Total Unrestricted Funds | 730 | 862 | (990) | 500 | 1,102 |
| Restricted funds: | |||||
| Parish gifts | - | 87,455 | (87,455) | - | - |
| Digital project grant | - | 500 | - | (500) | - |
| Total Restricted Funds | - | 87,955 | (87,455) | (500) | - |
| Total | 730 | 88,817 | (88,445) | - | 1,102 |
Designated funds
The IT fund is available to support the charity’s future investment in IT outside of core operational costs.
The intangible fixed asset fund reflects the carrying value of the website development and digital project costs which have been capitalised on the balance sheet and which the charity is expected to benefit from over the next few years. The annual amortisation charge is allocated against this fund accordingly. The balance is kept separate to the charity’s general unrestricted funds in recognition of the fact that the amounts capitalised are essential to the day-to-day operation of the charity and cannot be realised by the charity in order to meet day to day working capital requirements.
Restricted funds
These comprise:-
- Parish gifts received through a regular giving scheme which collects gifts through direct debit and makes the gift (including Gift Aid) available only to be spent in a specified church/parish.
31 31
Notes to the financial statements For the year ended 31 December 2024
- Grants from the Archbishops’ Council and various Dioceses towards the digital project. The transfer from the restricted fund to the charity’s unrestricted fund is in recognition of the fact that the grant has been utilised towards the cost of the digital project in line with the giver’s wishes (and therefore the restriction discharged), but the asset capitalised is now available for the charity’s general unrestricted application.
12. Financial commitments: operating leases
Total commitments under non-cancellable operating leases are as follows:-
| 2024 | 2023 | |
|---|---|---|
| £'000 | £'000 | |
| Land and buildings where the lease expires: | ||
| Within one year of the balance sheet date | 33 | 31 |
| In the second to fifth years inclusive of the balance sheet | 33 | 62 |
| 66 | 93 |
13. Comparative statement of financial activities
| Restricted funds | Unrestricted funds | 2023 Total | |
|---|---|---|---|
| £'000 | £'000 | £’000 | |
| Income from: | |||
| Charitable activities | 87,971 | 862 | 88,833 |
| Total | 87,971 | 862 | 88,833 |
| Expenditure on: | |||
| Charitable activities | 87,471 | 990 | 88,461 |
| Total | 87,471 | 990 | 88,461 |
| Net income/(expenditure) |
500 | (128) | 372 |
| Transfer between funds | (500) | 500 | - |
| Net movement in funds | - | 372 | 372 |
| Reconciliation of funds | |||
| Funds at start of the year | - | 730 | 730 |
| Funds at end of the year | - | 1,102 | 1,102 |
32 32
Notes to the financial statements For the year ended 31 December 2024
14. Related party transactions
Details of transactions with the charity’s Trustees are provided at note 5.
PGS has taken advantage of the exemption available under FRS 102 Section 33.1A not to disclose transactions with wholly owned members of the Group.
15. Contingent liabilities
In the previous financial year, as part of the due diligence undertaken in connection with the change in ownership of the Parish Giving Scheme, the Church of England Central Services commissioned a review of the charity's VAT arrangements. In addition to this the Trustees carried out their own reviews in the current financial year to gain clarity over the charity’s VAT position. These reviews were further to those noted in the 2023 financial statements.
Following these reviews and the implementation of a suitable operating agreement between the Parish Giving Scheme and the Church of England Central Services, the Trustees now view the probability of any historic VAT liabilities as very low. This is based on the professional advice and correspondence to date. The Trustees will continue to review the position on a cyclical basis to ensure the Charity remains compliant to the best of the Trustees’ knowledge.
16. Capital Commitments
As at the year ending 31 December 2024 PGS had capital commitments of £0.4m in relation to the IT project noted as an asset under construction in note 7. This is to be funded by cash held at year end in relation to the restricted and designated funds associated with that project.
17. Post Balance Sheet Events
An additional £0.5m of capital commitments were undertaken post the balance sheet date in relation to the digital platform project.
18. Ultimate Controlling Party
Up until 31 December 2023, members of the Parish Giving Scheme were participating dioceses that had signed the Member’s Agreement and paid the subscription fee. With effect from 1 January 2024, a change in the ownership of PGS was completed which removed the existing members of the company (the 35 Diocesan members) and established the Church of England Central Services (ChECS) as the sole member taking over full control of PGS and its operations.
33 33