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← Reality Church London

2024-08-31-accounts

Reality Church London

Report and Accounts Year ended 31 August 2024

1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk

REALITY CHURCH LONDON

CHARITY INFORMATION

FOR THE YEAR ENDED 31 AUGUST 2024

Trustees

Efrem Buckle (appointed 5 December 2024) Hannah Damant (appointed 19 September 2024) Luke Hamilton (appointed 21 March 2024) Anna Herring (appointed 19 September 2024) Joel MacMillan (resigned 24 June 2024) Bijan Mirtolooi (resigned 24 June 2024) Josh Powers (appointed 1 February 2024) Myung Jun Sohn (appointed 24 June 2024) Gareth Williams (appointed 21 March 2024) Enoch Yang Sarah Yardley (resigned 24 June 2024)

Key Staff

Bijan Mirtolooi (Lead Pastor until 14 July 2024) Luke Hamilton (Executive Director until 20 March 2024) Christine Constable (Director of Operations from 1 January 2024) Myung Jun Sohn (Lead Pastor from 1 September 2024)

Governing Document

CIO Constitution dated 7 June 2016

Charity Registration Number 1167535

Principal Address

Reality Church London 86 - 90 Paul Street London EC2A 4NE

Independent Examiner

Lisa Darby FCA Stewardship 1 Lamb's Passage London EC1Y 8AB

Bankers

Metro Bank One Southampton Row London WC1B 5HA

Contents Page
Charity Information 1
Trustees' Annual Report 2-6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Accounts 10-17
Detailed Statement of Financial Activities with Comparatives 18

Page 1

REALITY CHURCH LONDON

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

The trustees have pleasure in submitting the Report and Accounts for the year.

Objects of the charity

The Object of the CIO is, for the public benefit, to persuade men and women to faith in Jesus Christ as Lord and Saviour by proclaiming and demonstrating the gospel; to increase Christian faithfulness “as good stewards of the manifold grace of God” (1 Pet. 4:10); to encourage individual Christians towards attaining “the measure of the stature of the fullness of Christ” (Eph. 4:23); to fulfil the great commission by sending missionaries, church planters, ministers and Christian influence throughout the world through giving gifts and praying for missionary ventures (Matt. 28:19).

THE CHURCH: ITS AIMS AND OBJECTIVES

We are a church plant in central London. We seek to love God, love each other, and love our city. It is our desire to communicate the unchanging truth of the person and work of Jesus Christ in a way that everyone in our city and culture can comprehend. We gather on Sundays for public worship in Old Street and scatter throughout London in small communities committed to living the Christian life together as a family.

We are so thankful for all that God is doing through churches old and new in London and consider it a joy and a privilege to learn from and come alongside them in God's mission. We believe in a message of good news – that God entered our world in the person of Jesus Christ and did for us what we could never do for ourselves: rescue, redeem and renew us from evil, brokenness and death. We seek to build a community on and around the reality of this message.

GOVERNMENT

The spiritual government and leadership of the church is primarily responsible for carrying out the purposes and goals of the church. The duty of the Charity Trustees is confined to the proper management and administration of the CIO in accordance with the provisions of the constitution. The trustees have full and proper regard to the Spiritual Leadership as long as they do not act outside their powers given in the constitution and by general law.

Page 2

REALITY CHURCH LONDON

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

GOVERNMENT (continued)

In selecting individuals for appointment as Charity Trustees, the Spiritual Leadership has regard to the skills, knowledge and experience needed for the effective administration of the CIO. All Charity Trustees subscribe and adhere to, in belief and lifestyle, the Statement of Faith. The primary method of recruiting new trustees is a personal recommendation or word of mouth. This recommendation can come from any existing trustee or the spiritual leadership of the church. Once a potential trustee has been recommended, they will first be vetted by the spiritual leadership of the church to determine if they agree with the beliefs and aims of the church. After this, they will be vetted by the trustees to make sure that they are indeed a suitable candidate and that by appointing them that we would be acting within the law, in accordance to our governing document. Once the potential trustee has been recommended and vetted, the trustees will appoint the candidate by a vote.

Reality Church London “RCL” has a strong working partnership with both Reality Carpinteria and Reality Ventura, both based in California, USA. The administrative staff of both churches have worked with the staff of RCL to support the ministry while it is getting off the ground. This assistance is continual but is shifting to move operations and admin activity to be held locally in London. RCL has a collection of US based donors who add to the support committed from the general funds from the church planting budget of the sending church. The total funding received from the US amounted to approximately £47,437 as detailed in the accounts.

Between September 2023 and August 2024 the church employed between five and six staff members who manage and oversee the day to day operations of the church. The mission of the church, by design, is carried out with the help of volunteers. We are continuing to build ministry teams made up of men and women who are keen to use their gifts to serve others. We believe serving together is one of the best ways to be connected to the church.

THE YEAR: ITS OBJECTIVES AND ACHIEVEMENTS

During the year ended 31 August 2024 the main ways the church sought to achieve its mission and charitable purposes for the public benefit have been as follows:

◦ Church Growth :

Over the course of the year, we have seen new people join the church and original members grow in applying the weekly teaching to their lives and commit to serving weekly in the church. These signs of growth are at the very heart of our purpose as a church and we hope will continue to be seen. Across the year, our Sunday attendance grew to an average of 323, which includes both in person and online streaming via YouTube. Church membership grew to 86 members, further enabling us to 'define the flock' of RCL.

Page 3

REALITY CHURCH LONDON

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

THE YEAR: ITS OBJECTIVES AND ACHIEVEMENTS (continued)

◦ Staff:

In addition to our staff team which fluctuated over the 2023-2024 period between five and six employees, we also had three volunteers who serve the church significantly in a free capacity. At the end of this financial year the Lead Pastor transition took place. Additionally, within this year there was a search for an Assistant Pastor and an Operations Director. Planning and outworking for these roles, and their transitions took up a large amount of both time and finances, but we feel the efforts were fruitful with the new Operations Director, Christine Constable, who started in January 2024, and new Lead Pastor, Mike Sohn, having arrived in September 2024.

◦ Trustee transition:

Over the course of the year, we have seen three trustees step down from duties, Joel MacMillan, Bijan Mirtolooi and Sarah Yardley. Also, within the year, three additional trustees joined the board, Joshua Powers, Gareth Williams and Mike Sohn. The aim of these transitions is to bring a wider scope of expertise onto the board and start to grow the percentage of the board being from the UK rather than the US.

◦ Moving majority of church activity to a Sunday:

Upon feedback and conversation with various RCL leaders and members, the overwhelming majority expressed excitement of moving various church rhythms and events to Sundays. This move expressed an ongoing desire to act on the feedback and suggestion of church members alongside a continual approach to ministry that is healthy, relevant, and productive for our churches mission of seeking the renewal of London. This move which has taken place enabled all activity to be accessible to the majority of the church, especially those who have previously been unable to attend mid-week activity due to home location, work schedules and/or childcare needs. Through various conversations it’s been identified that as well as those groups, individuals new to faith and new to RCL are now more likely to attend Sunday activity rather than something mid-week. This shift has seen higher attendance to all church activity, alongside a greater attendance to the two midweek ministry elements which we have continued, Community Groups and the Serve The City ministry.

◦ Content based on community need:

Through spotting trends in pastoral care the staff team have been able to identify and recommend to the elders topics of teaching, conversation and engagement that would best serve the church community. These topics have led to the launch of ‘RCL Family Conversations’ in 2023, which all in the church are encouraged to attend. These conversations continued in 2024.

◦ Serve the City & Serve the Nations:

In developing the relationships with ‘Serve the City partners’ we’ve been able to see increased involvement and see fruit come from these partnerships. A focus was also placed on building the foundations for the first ‘Serve the Nations’ partnership in Ethiopia, something we will continue to develop over the years. Our partner in London, London City Mission, hosted RCL at their Webber Street Centre, and a team of around 10 volunteers served a meal once a month for 8 months. Additionally, RCL ran an Alpha course for 8 weeks and were encouraged to see an average of 15 attendees and several participants came to church following the course.

In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.

Page 4

REALITY CHURCH LONDON

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

PLANS FOR THE NEW YEAR

With the transition of the new pastor this year will be an opportunity for RCL to refresh and renew its plans in the short, medium and long-term. In initial conversations with Pastor Myung (referred to as “Mike” in this report) the aim is to not substantially change what RCL has been doing historically but instead to lean into the vision that it has historically had: to be a church that is a community following Jesus, making Him known for the renewal of the city. There are initial plans to explore each of these aspects of the vision together as a church. The hope is that this will help to grow community, mission and community engagement alongside the ongoing Bible teaching and training that is part of the church’s aims.

GRANT MAKING POLICY

Gifts to external organisations and individuals are considered by the Trustees on the basis of need and fulfilment of the charitable objectives. There are no upper or lower limits of support.

FINANCIAL REVIEW

Reality Church London received donations and other income of £453,621 (2023: £444,898). Specifically, £74,000 was donated via third party donations, made up of churches and individuals in the United States via the sending church Reality Ventura (2023: £71,644), of which £26,564 was repayable following the charity being unable to fulfill the specified restriction. Expenditure was £495,873 (2023: £546,051) resulting in a net deficit of £42,252 across the financial year - something pre planned with the trustees encouraging spend of the vast reserves across the FY (2023: £101,154).

RESERVES POLICY

The reserves policy of Reality Church London is to hold three months of all operational expenditures on reserve. The trustees currently believe this amount to be £109,510, compared to £240,193 in free cash reserves held at the year-end. This is more than what is required by the policy and yet the planting church have informed the trustees that they are committed to continuing to make regular donations to Reality Church London and that they currently have paid all funds due.

Where there are specific capital expenditures foreseen, amounts are set aside into designated funds so the free cash reserves are available to meet the costs of normal operating expenditures and to ensure the Church can meet the commitments that have been entered into. At the year-end there were no material designated funds held on reserve. This reserve policy will be reviewed annually.

Page 5

REALITY CHURCH LONDON

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 AUGUST 2024

RISK STATEMENT

All major insurable risks are subject to normal Churches and employers’ insurance. Contractual risks are reviewed before being entered into to assess that they could not significantly impact the Churches ability to fulfil its objectives. An annual review of areas of risk is undertaken by the Trustees in conjunction with staff and volunteers responsible for the area of activity.

TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent;

  4. state whether the applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the financial statements; and

  1. prepare the financial statements on a going concern basis unless it is inappropriate to presume

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.

APPROVAL

This report was approved by the trustees and signed on their behalf by:

Enoch Yang

_______ Enoch Yang (Mar 13, 2025 21:18 GMT) ENOCH YANG

Mar 13, 2025

Date: _______

Page 6

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

REALITY CHURCH LONDON ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 August 2024 on pages 8 to 18 following, which have been prepared on the basis of the accounting policies set out on pages 10 to 12.

Responsibilities and basis of report

As the charity’s trustees of the Charitable Incorporated Organisation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

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

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Lisa Darby

Lisa Darby (Mar 17, 2025 10:49 GMT)

Lisa Darby FCA Institute of Chartered Accountants of England and Wales Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: Mar 17, 2025

Page 7

REALITY CHURCH LONDON

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2024

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income and endowments
EXPENDITURE ON:
Charitable activities
6
Total expenditure
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
13		 Unrestricted
Funds
£
424,206
1,405
246
425,857
468,731
468,731
(42,874)
-
(42,874)
320,074
277,200		 Restricted
Funds
£
27,764
-
-
27,764
27,142
27,142
622
-
622
-
622		 Total
Funds
2024
£
451,970
1,405
246
453,621
495,873
495,873
(42,252)
-
(42,252)
320,074
277,822		 Total
Funds
2023
£
434,700
10,075
123
444,898
546,051
546,051
(101,154)
-
(101,154)
421,227
320,074

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing operations.

Differences of £1 may appear in these accounts due to rounding.

The notes on page 10-17 form part of these accounts.

Page 8

REALITY CHURCH LONDON

BALANCE SHEET

AS AT 31 AUGUST 2024

Note
FIXED ASSETS
Tangible assets
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
10
CREDITORS: Amounts falling
due within one year
11
Net current assets / (liabilities)
TOTAL NET ASSETS
FUND BALANCES
13
Unrestricted Funds
General funds
Designated funds
Restricted Funds		 Unrestricted
Funds
£
3,194
3,194
65,565
239,993
305,558
(31,552)
274,006
277,200
277,200
-
277,200
-
277,200		 Restricted
Funds
£
-
-
-
622
622
-
622
622
-
-
-
622
622		 Total
Funds
2024
£
3,194
3,194
65,565
240,614
306,180
(31,552)
274,628
277,822
277,200
-
277,200
622
277,822		 Total
Funds
2023
£
2,466
2,466
41,468
284,624
326,092
(8,484)
317,608
320,074
320,074
-
320,074
-
320,074

Differences of £1 may appear in these accounts due to rounding.

The financial statements were approved by the Board of Trustees and were signed on its behalf by:

Enoch Yang Enoch Yang (Mar 13, 2025 21:18 GMT)

ENOCH YANG

Mar 13, 2025 Date: _______

Charity number: 1167535

The notes on page 10-17 form part of these accounts.

Page 9

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

1 Statutory Information

The charity is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

The principles adopted in the preparation of the financial statements are set out below.

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. Reality Church Ventura have confirmed that they plan to continue supporting the charity, sufficiently for it to continue for the foreseeable future unless they are told this support is no longer required by the Reality Church London trustees and/or a timeline of withdrawal from support is agreed upon with the Reality Church London Trustees. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

b) Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations and legacies includes:

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.

When donated services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities.

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses.

Investment income represents income generated by the charity's assets and includes income from bank interest.

The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.

Page 10

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

2 Accounting Policies (continued)

c) Expenditure

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

The cost of raising funds is not significant and has not been separately disclosed.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

d) Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. Endowment funds are donations that are retained as capital in accordance with the donor's wishes. The nature of the restriction determines whether the endowments represent permanent endowments or expendable endowments.

e) Tangible fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £2,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Freehold land Is not depreciated (because it is not consumed by use) Freehold buildings Over 50 years after taking account of the building's residual value Leasehold improvements Over the lease term or, if shorter, expected useful life Equipment Over 3 to 7 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f) Pension scheme arrangements The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

g) Taxation

The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

h) Financial instruments

The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

Page 11

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

2 Accounting Policies (continued)

i) Foreign currency translation

These financial statements are presented in sterling, which is the charity's functional currency.

All differences arising from the application of the above policy are charged (or credited) to the Statement of Financial Activities.

j) Exemption from preparing a cashflow statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

k) Critical accounting estimates and areas of judgement The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

3 Donations and legacies

General donations
Donations in cash from Reality Ventura
Income tax recoverable		 2024
£
331,777
74,000
46,193
451,970		 2023
£
309,770
71,644
53,285
434,700

4 Income from charitable activities

Church retreats and events
Investment income
Bank interest		 2024
£
1,405
1,405
2024
£
246
246		 2023
£
10,075
10,075
2023
£
123
123

5 Investment income

Page 12

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

6 Charitable expenditure

6
Charitable expenditure
a
Costs incurred directly on specific activities
Staffing Costs
Ministry & Outreach
Venue Hire
Travel & Conferences
Equipment
Media
Repayment of restricted grant
Other
Grants payable (note 6c)
b
Costs incurred on support & administration
General Administration
Legal and professional services
Accounts preparation and examination
Depreciation of tangible fixed assets
Total expenditure		 2024
£
292,210
43,207
76,280
17,111
6,749
4,241
26,564
524
466,885
5,603
472,488
14,799
3,896
3,900
790
23,385
495,873		 2023
£
277,298
62,808
41,042
77,322
14,446
3,708
-
2,590
479,214
7,500
486,714
29,047
26,397
3,660
233
59,337
546,051

The fee payable to the independent examiner for preparing and examining the accounts was £3,900 (2023: £3,660); in addition the charity paid £1,074 (2023: £1,084) to Stewardship for payroll bureau and consultancy services.

c Grants payable

Grants for UK and overseas mission
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
The charity's principal grants to institutions comprised:
Gratitude Institute
London City Mission
Leadership Transformation Ministries
New Testament Manna Christian Ministry
Grants to institutions for less than £1,000 each		 Institutions
£
5,603
5,603
Institutions
£
7,500
7,500		 Individuals
£
-
-
Individuals
£
-
-
2024
£
-
2,500
1,025
1,500
578
5,603		 2024
£
5,603
5,603
2023
£
7,500
7,500
2023
£
5,000
2,500
-
-
-
7,500

Page 13

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

7 Analysis of staff costs, the cost of key management personnel and trustee remuneration

lysis of staff costs, the cost of key management personnel and trustee remuneration
Gross wages and salaries
Social security
Pension costs
Other employment benefits		 2024
£
257,738
27,221
4,693
2,558
292,210		 2023
£
250,376
23,023
3,898
18,756
296,053

The average monthly number of employees during the year was 5.2 (2023: 5.8). Most of the charity's activities are carried out by volunteers.

Total employee's benefits exceeding £60,000 (excluding Employers Pension contributions): 2024 2023
£60,000 - £69,999 - 1
£100,000 - £109,999 1 -
£130,000 - £139,999 - 1

No other staff received salaries at a rate of more than £60,000 per annum.

The charity's key management comprise the trustees and the key staff named on the Charity Information page. Total employment benefits payable to key management for the year were as follows:

Trustees:
Bijan Mirtolooi
Myung Jun Sohn
Other members of key management		 Wages &
salaries
106,077
-
68,541
174,618		 Other
Employment
Benefits
-
767
1,791
2,558		 Employer
pension
contributions
-
-
2,135
2,135		 2024
£
106,077
767
72,467
179,311

The following amounts were payable in the previous year:

following amounts were payable in the previous year:
Trustees:
Bijan Mirtolooi
Other members of key management		 Wages &
salaries
114,618
65,352
179,970		 Other
Employment
Benefits
18,756
-
18,756		 Employer
pension
contributions
-
1,961
1,961		 2023
£
133,373
67,313
200,686

Bijan Mirtolooi served as lead pastor of the church until 14 July 2024 and received the above payments for serving in that capacity, not for serving as a trustee; these payments are permitted by the charity's governing document.

Myung Jun Sohn was appointed to serve as lead pastor of the church with effect from 1 September 2024. The church incurred expenditure totalling £767 in respect of the customary provision of accomodation to him so that he could better perform his duties. This is permitted by the charity's governing document.

In addition the charity incurred expenditure totalling £nil (2023: £18,756) in respect of the UK Immigration Visa renewal for the Mirtolooi family.

All expenses incurred by or on behalf of Bijan Mirtolooli related to his employment, not for serving as a trustee and contained no profit element.

Page 14

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

8 Tangible fixed assets

Cost
At 1 September 2023
Additions
Disposals
At 31 August 2024
Accumulated depreciation
At 1 September 2023
Charge for the year
Eliminated on disposal
At 31 August 2024
Net book value
At 31 August 2024
At 31 August 2023
9
Debtors
Falling due within one year:
Tax recoverable
Other debtors
Prepayments and accrued income
10
Cash at Bank and in Hand
Cash at bank with immediate access
11
Creditors: liabilities falling due within one year
Other creditors
Repayable grant
Accruals		 Fixtures,
fittings and
equipment
£
2,699
3,310
(2,699)
3,310
233
790
(908)
116
3,194
2,466
2024
£
57,255
6,777
1,533
65,565
2024
£
240,614
240,614
2024
£
1,089
26,564
3,900
31,552		 Total
2024
£
2,699
3,310
(2,699)
3,310
233
790
(908)
116
3,194
2,466
2023
£
20,000
21,468
-
41,468
2023
£
284,624
284,624
2023
£
4,824
-
3,660
8,484

An Associate Pastor grant was transferred from Reality Church San Francisco (RSF) to support the employment of an Associate Pastor at Reality Church London. Due to the transition from Bijan Mirtolooi to Mike Sohn, Trustees have agreed to postpone the hiring of this role. For administrative reasons, RCL and RSF have decided to return the cash back to RSF.

12 Pension commitments

During the year employer’s pension contributions totalling £4.693 (2023: £3,898) were payable to defined contribution personal pension schemes. Pension contributions totalling £252 were owing at the balance sheet date (2023: £1,068).

Page 15

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

13 Funds

During the year the movements in the charity's funds were as follows:

Designated Funds
Missional Fund
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Serve the City
Associate Pastor
Aggregate of funds		 Opening
balance
2024
£
-
-
320,074
320,074
-
-
-
320,074		 Incoming
resources
2024
£
-
-
425,857
425,857
1,200
26,564
27,764
453,621		 Outgoing
resources
2024
£
-
-
(468,731)
(468,731)
(578)
(26,564)
(27,142)
(495,873)		 Transfers
in the year
2024
£
-
-
-
-
-
-
-		 Gains and
losses
2024
£
-
-
-
-
-
-
-		 Closing
balance
2024
£
-
-
277,200
277,200
622
-
622
277,822

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year
In the previous year the movements in the charity's funds w
Opening
balance
2023
£
Designated Funds
Missional Fund
-
-
General Unrestricted Funds
421,227
Aggregate of funds
421,227		 ere as follows:
Incoming
resources
2023
£
-
-
444,898
444,898		 General
Designated
funds
funds
£
£
3,194
-
65,565
-
239,993
-
(31,552)
-
277,200
-
Outgoing
Transfers
resources
in the year
2023
2023
£
£
-
-
-
-
(546,051)
-
(546,051)
-
Unrestricted Funds		 Restricted
funds
£
-
-
622
-
622
Gains and
losses
2023
£
-
-
-
-		 2024
£
3,194
65,565
240,614
(31,552)
277,822
Closing
balance
2023
£
-
-
320,074
320,074

Page 16

REALITY CHURCH LONDON

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2024

13 Funds (continued)

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
2,466
-
41,468
-
284,624
-
(8,484)
-
320,074
-
Unrestricted Funds		 Restricted
funds
£
-
-
-
-
-		 2023
£
2,466
41,468
284,624
(8,484)
320,074

The Missional Fund was an unrestricted fund designated by the Trustees for expenditure on Mission and Church Planting, sewing into individuals and charities across London that align to the mission of Reality Church London. At the end of the 2021-2022 financial year, the charity decided to amalgamate the Missional Fund with the General Fund to permit an increase in general activity and recategorize expenditure within this area. Accordingly, the balance was transferred to the General Fund.

An Associate Pastor grant was transferred from Reality Church San Francisco (RSF) to support the employment of an Associate Pastor at Reality Church London. Due to the transition from Bijan Mirtolooi to Mike Sohn, Trustees have agreed to postpone the hiring of this role. For administrative reasons, RCL and RSF have decided to return the cash back to RSF.

14 Operating lease commitments

The charity has an operating lease for pastoral accommodation for a minimum term of 12 months from 21 August 2024. The minimum amount payable (until the next break clause and ignoring the potential effect of future rent reviews) in respect of this lease is as follows:

Within one year
Between one and five years
After five years
Payments falling due:		 2024
£
29,133
-
-
29,133		 2023
£
-
-
-
-

During the year the charity was charged £767 (2023: £nil) for its operating lease.

15 Transactions with related parties

During the year the charity:

a) received donations totalling £67,711 (2023: £28,510) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).

b) paid no expenses for or on behalf of trustees other than reimbursements for expenses incurred when acting as agent for the charity or incurred when undertaking employment duties not connected with serving as a trustee (2023: £nil).

Except as disclosed in note 7 'Analysis of staff costs', there have been no other transactions with related parties during the year.

16 Guarantees and security provided

No guarantees have been made, which result in an outstanding potential liability as at the year-end date.

There are no outstanding debts at the balance sheet date which are owed and which are secured by an express charge on any of the assets of the CIO.

Page 17

REALITY CHURCH LONDON

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 AUGUST 2024

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income and endowments
EXPENDITURE ON:
Charitable activities:
6
Total Expenditure
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
13		 General
2024
£
424,206
1,405
246
425,857
468,731
468,731
(42,874)
-
(42,874)
320,074
277,200
Unrestric		 Unrestric Designated
2024
£
-
-
-
-
-
-
-
-
-
-
-
ted funds		 Restricted
2024
£
27,764
-
-
27,764
27,142
27,142
622
-
622
-
622		 Total
2024
£
451,970
1,405
246
453,621
495,873
495,873
(42,252)
-
(42,252)
320,074
277,822		 General
2023
£
434,700
10,075
123
444,898
546,051
546,051
(101,154)
-
(101,154)
421,227
320,074
Unrestric		 Unrestric Designated
2023
£
-
-
-
-
-
-
-
-
-
-
-
ted funds		 Restricted
2023
£
-
-
-
-
-
-
-
-
-
-		 Total
2023
£
434,700
10,075
123
444,898
546,051
546,051
(101,154)
-
(101,154)
421,227
320,074

Page 18