OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

Charity registration number 1164760

CHABAD-LUBAVITCH OF ISLINGTON CIO

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

CHABAD-LUBAVITCH OF ISLINGTON CIO

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rabbi A Citron Rabbi A Sufrin Mr S Cousin Charity number 1164760 Principal address 1-3 Elliott's Place Islington London N1 8HX Independent examiner Gravita Business Services Limited Aldgate Tower 2 Leman Street London E1 8FA

CHABAD-LUBAVITCH OF ISLINGTON CIO

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 16

CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

The trustees present their annual report and financial statements for the year ended 31 August 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 1.1 to the accounts and comply with the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)”.

Objectives and activities

The charity's main aim is to support the advancement of the orthodox Jewish religion in accordance with the principles of Chabad Lubavitch. The main objectives of the charity are:

Public benefit

The trustees have given careful consideration to the Charity Commission's guidance on public benefit when setting the aims and objectives of the charity. The charity adheres to the principles of Chabad.

Chabad is the largest Jewish outreach organisation in the world, active in more than 80 countries. Our primary focus is the Jewish community where it has been lauded by all segments for its innovative and compassionate programs. Chabad provides social service, educational and outreach programs. It has no affiliation with any political organisation.

Chabad has a long history of religious tolerance and has been on the forefront efforts of humanitarian relief. In the past years it took a leading role after the Tsunami in Japan and the earthquake in Haiti.

CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance

Chabad Lubavitch of Islington currently serves the Borough of Islington as its only Jewish institution. Since 2011 the charity has been offering a range of social, religious and educational activities.

The release of the 2021 Census data reveals that Islington now boasts the 10th largest Jewish community of London with a 41% rise (2714 people) since the 2011 Census (1915 people).

The history of Jewish people living in Islington goes back to the early 1700s which included a number of famous people and the grand North London Synagogue. However by the mid-1960s the community dwindled to the point of both the North London and Poets Road Synagogues closing down. The local Jewish population has consistently been around two thousand people since the 1970s.

In 2022 Chabad Islington conducted a community wide survey with 87.5% of respondents sharing that they feel more connected to their Judaism because of Chabad Islington, and 75% of respondents strongly agreed or agreed that they felt more part of the community because of Chabad Islington.

Rabbi Mendy Korer said: “Chabad Islington values working with each and every individual, no matter their background or familiarity in order to help people feel confident in their Jewish identity. We believe that this factor has been a key driving element, contributing to the significant growth reported in the Census.”

Over the past year, the stand our activities and achievements of Chabad Islington include:

The Ein Sof Art Gallery, which is dedicated to exhibiting contemporary art by Jewish artists and celebrating Jewish culture, identity and history. The gallery is a project of Chabad Islington, which celebrates creative and expressive Judaism. Exhibitions this year included works from both local and international artists: Yael Roberts, Avraham Guy Barchil, Aurélie Freoua and Heide Block.

Kosheroo, our kosher food delivery service had undergone a full upgrade last year, which has seen this year an increase in sales and an ease of functionality.

We have hired a new part time consultant with previous CEO experience as a strategy developer and grant

writer.

New funding streams included Islington Council’s Warm Spaces Fund and Cool Spaces Fund, offering our community space as a respite from inclement weather, both a warm space in the winter and a cool space, thanks to the air conditioning, in the summer. Our matched charity giving day raised £19,398 from 95 donations.

An earmarked Torah campaign to raise funds towards the synagogue owning a permanent Torah has so far raised £10,033.82. Stand our events towards this fund included renowned, award-winning comedian Milton Jones headlined a bill of comedy entertainment.

Stand out events and news include:

High Holidays, Rosh Hashana and Yom Kippur, celebrated locally in our community centre. A full programme of services and support provided including meals and prayers with a participation peaking at over 60 people at one given time.

Passover Seder was held this year at the Hammerton Brewery, 110 people in attendance with people from across Islington and visitors from around the world.

In addition to the annual Islington Menorah Lighting, history was created by celebrating Chanukah in The Emirates Stadium, for the first time ever a Menorah was lit on pitch side of hallowed Arsenal turf.

In anticipation to this year’s 11th annual lighting on December 18th, Cllr Kaya Comer-Schwartz, Leader of Islington Council, said: “The Menorah lighting celebration organised by Chabad Islington is now a firm fixture in the borough’s calendar and a lovely way to bring communities together at the start of the Jewish festival of light.”

CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Financial review

The charity's income for the year amounted to £166,613 (2022 - £171,021) and the expenditure for the year was £181,209 (2022 - £205,959). The resulting net expenditure was £14,597 (2022 - £34,938).

During the year the charity was in receipt of £28,808 (2022 - £67,601) of restricted grants in total. Of this amount, £36,794 (2022 - £48,803) was remaining at year end.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure, however within the financial year the charity used a substantial amount of its unrestricted funds and as such is unable to maintain the reserves at this required level. Since the year end the charity has received further unrestricted funds and is looking to grow their unrestricted reserves to be in line with the reserves policy outlined above as the trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised.

At the year end the charity has £4,766 (£2,587 in 2022) unrestricted reserves and £32,028 (£48,804 in 2022) of restricted funds. 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 the major risks and that going forward they will seek to build unrestricted reserves back up.

Structure, governance and management

The charity is a Charitable Incorporated Organisation registered with the Charity Commission.

The CIO was established under a Memorandum of Association which established the objects and powers of the CIO and is governed under its Articles of Association.

The trustees who served during the year and up to the date of signature of the financial statements were: Rabbi A Citron

Rabbi A Sufrin Mr S Cousin

New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields which will further support the work of the CIO.

The trustees are ultimately responsible for the policies, activities and assets of the CIO. They meet regularly during the year to review developments with regard to the CIO, its activities and make any important decisions. When necessary, the trustees seek advice and support from the CIO's professional advisors.

New trustees are given a full induction by the other trustees of the charity. Trustees can retire when they wish as they do not serve under a fixed term of tenure.

CHABAD-LUBAVITCH OF ISLINGTON CIO

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Statement of trustees' responsibilities

The trustees, who are also the directors of Chabad-Lubavitch of Islington Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the 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 incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 Companies Act 2006. 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.

The trustees' report was approved by the Board of Trustees.

Rabbi A Sufrin

Trustee Dated: 28 June 2024

CHABAD-LUBAVITCH OF ISLINGTON CIO

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CHABAD-LUBAVITCH OF ISLINGTON CIO

I report to the trustees on my examination of the financial statements of Chabad-Lubavitch of Islington CIO (the charity) for the year ended 31 August 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 that in any material respect:

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 financial statements to be reached.

Shona Munday FCA for and on behalf of Gravita Business Services. Aldgate Tower 2 Leman Street London E1 8FA

Dated: 28 June 2024

CHABAD-LUBAVITCH OF ISLINGTON CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2023

Unrestricted
Restricted
funds
funds
Notes
£
£
Income from:
Donations and legacies
2
80,920
28,808
Charitable activities
Education and welfare
3
20,758
-
Other activities
4
35,956
-
Investment income
5
170
-
Total income
137,804
28,808
Expenditure on:
Raising funds
6
6,296
-
Charitable activities
Education and welfare
7
168,150
6,762
Total charitable expenditure
168,150
6,762
Total resources expended
174,446
6,762
Net (expenditure)/income for the year/
Net movement in funds
(36,642)
22,046
Fund balances at 1 September 2022
41,408
9,983
Fund balances at 31 August 2023
4,766
32,029		 Total
2023
£
109,728
20,758
35,956
170
166,612
6,296
174,912
174,912
181,208
(14,596)
51,391
36,795		 Total
2022
£
124,850
25,349
20,794
28
171,021
1,326
204,633
204,633
205,959
(34,938)
86,328
51,390

CHABAD-LUBAVITCH OF ISLINGTON CIO

BALANCE SHEET

AS AT 31 AUGUST 2023

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
The funds of the charity
Restricted income funds
16
Unrestricted funds		 2023
£
19,660
17,215
36,875
1,820		 £
1,739
35,055
36,794
32,028
4,766
36,794		 2022
£
18,264
41,694
59,958
9,777		 £
1,210
50,181
51,391
48,804
2,587
51,391

The financial statements were approved by the trustees on 28 June 2024

Rabbi A Sufrin Trustee

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

Charity information

Chabad-Lubavitch of Islington Limited is a charitable incorporated organisation in England and Wales. The registered office is 1-3 Elliott’s Place, Islington, London, N1 8HX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. 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 the major risks and that going forward they will seek to build unrestricted reserves back up.Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the accountancy fees and costs linked to the strategic management of the charity.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 20% Straight line Computers 20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
80,920
-
Grants
-
28,808
80,920
28,808		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
80,920
53,249
-
28,808
4,000
67,601
109,728
57,249
67,601		 Total
2022
£
53,249
71,601
124,850

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

3 Income from charitable activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Sales
Sale of goods 20,758 25,349
4 Community events
2023 2022
£ £
Community events 35,956 20,794
5 Income from investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 170 28

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

6 Raising funds
Fundraising and publicity
Other fundraising costs		 2023
£
6,296
6,296		 2022
£
1,326
1,326

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

7 Charitable activities

Staff costs
Depreciation and impairment
Hosting expenses
Insurance
Telephone
Charitable expenses
Staff training
Subscriptions
Repairs and renewals
Education and welfare
Security costs
Printing and stationery
Covid Expenses
Rabbinical Services
Educational Services
Rent
Other charitable expenditure
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 August 2022
Unrestricted funds
Restricted funds		 2023
£
1,200
448
2,339
764
791
4,898
2,157
2,854
5,266
32,891
1
4,144
-
-
3,544
56,480
18,066
135,843
9,707
27,562
1,800
174,912
168,150
6,762
174,912		 2022
£
1,200
334
2,038
809
720
29,781
988
1,962
6,787
32,741
-
2,750
392
25
5,710
54,708
15,363
156,308
26,777
20,588
960
204,633
175,852
28,781
204,633

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2023

8 Grants payable

2023 2022
£ £
Grants to institutions:
Other 9,707 26,777

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
9,207
-
Travelling
871
-
Bank charges
724
-
Subcontractors
16,761
-
Accountancy
-
1,800
27,563
1,800		 2023
£
9,207
871
724
16,761
1,800
29,363		 2022
£
18,000
1,390
1,197
-
960
21,547

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

Number of employees

The average monthly number of employees during the year was:

2023 2022
Number Number
1 2
Employment costs 2023 2022
£ £
Wages and salaries 9,193 17,994
Social security costs 14 6
Other pension costs 1,200 1,200
10,407 19,200

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Fixtures and
fittings
Computers
£
£
Cost
At 1 September 2022
345
1,327
Additions
177
800
At 31 August 2023
522
2,127
Depreciation and impairment
At 1 September 2022
105
357
Depreciation charged in the year
99
349
At 31 August 2023
204
706
Carrying amount
At 31 August 2023
318
1,421
At 31 August 2022
240
970
14
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
185
Other debtors
4,997
Prepayments and accrued income
14,478
19,660
15
Creditors: amounts falling due within one year
2023
Notes
£
Bank overdrafts
-
Other taxation and social security
20
Other creditors
-
Accruals and deferred income
1,800
1,820		 Total
£
1,672
977
2,649
462
448
910
1,739
1,210
2022
£
2,129
1,657
14,478
18,264
2022
£
455
6
8,356
960
9,777

CHABAD-LUBAVITCH OF ISLINGTON CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

16 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 Incoming Resources At 31 August At 31 August
September resources expended 2023
2022
£ £ £ £
9,983 28,808 (6,762) 32,029
Previous year: At 1 Incoming Resources At 31 August
September resources expended 2022
2021
£ £ £ £
9,983 67,601 (28,781) 48,803

17 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 Incoming Resources Gains and At 31 August
September resources expended losses 2023
2022
£ £ £ £ £
General funds 41,408 137,804 (174,447) 1 4,766
Previous year: At 1 Incoming Resources Gains and At 31 August
September resources expended losses 2022
2021
£ £ £ £ £
General funds 76,345 103,420 (177,178) (1) 2,586