REGISTERED COMPANY NUMBER: 09797190 (England and Wales) REGISTERED CHARITY NUMBER: 1169789
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
FOR
THE VELVET FOUNDATION
Melinek Fine LLP Chartered Accountants First Floor, Winston House 349 Regents Park Road London N3 1DH
THE VELVET FOUNDATION
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 |
| Notes to the Financial Statements | 7 to 10 |
THE VELVET FOUNDATION (REGISTERED NUMBER: 09797190)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2022. The trustees have adopted the provisions of 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 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The charity's objects are specifically restricted to provide public benefit in the following manner:-
General charitable purposes:
To advance such charitable purposes (according to the law of England and Wales) for the public benefit whether by making grants or otherwise as the trustees see fit from time to time anywhere in the world in particular but not limited to the following:
Prevention or relief of poverty and financial hardship:
The prevention or relief of poverty by providing: grants, items, facilities and services to individuals in need and to charities, or other organisations working to prevent or relieve poverty.
The prevention or relief of poverty or financial hardship by providing or assisting in the provision of education, training, healthcare projects and all the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient.
Relief of sickness:
To assist in the treatment and care of persons suffering from mental or physical illness of any description or in need of rehabilitation as a result of such illness, by the provision of facilities for work and recreation.
The relief of sickness and the preservation of health by making grants and providing items, facilities and services, for medical research.
Advancement of education:
To advance the education of the public in general in the subject of the Jewish religion by making grants to institutions promoting knowledge and education of the Jewish religion.
Public benefit
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grantmaking policy.
Grantmaking
Grants are made to charitable institutions, organisations and individuals after it has been satisfied that payments will accord with the objectives of the charity.
Volunteers
There were no volunteers during the year.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The charity has had a successful year, raising £123,050 (2021: £1,145,963) in donations, and making grants totalling £1,048,726 (2021: £617,032) to charitable organisations and needy individuals.
Internal and external factors
There are no specific factors to report.
FINANCIAL REVIEW
Principal funding sources
The principal funding sources are donations from limited companies.
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THE VELVET FOUNDATION (REGISTERED NUMBER: 09797190)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022
FINANCIAL REVIEW
Reserves policy
The charity aims to maintain reserves in order that it is in a position to achieve grant making activities at a consistent level and to cover contingencies of additional calls being made upon the charity for support of organisations, institutions or individuals in times of need.
FUTURE PLANS
The trustees plan to continue to pursue the charitable objectives of the charity and ensure that the ability to generate sufficient income is maintained to achieve that end.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The Charity is controlled by its Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and appointment of new trustees
The directors may appoint a person who is willing to act to be a director. Membership is open to any individual who applies to the charity in the form required by the directors and is approved by the directors. Membership is not transferable.
Organisational structure
The charity must have a minimum of 2 directors. The directors meet regularly to manage the business of the charity.
Risk management
The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to major risks.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
09797190 (England and Wales)
Registered Charity number
1169789
Registered office
First Floor, Winston House 349 Regents Park Road London N3 1DH
Trustees
Mr M A Aaronson Mr C C Cheah Mr D H Rodney
Company Secretary
Mr D H Rodney
Independent Examiner
Melinek Fine LLP Chartered Accountants First Floor, Winston House 349 Regents Park Road London N3 1DH
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THE VELVET FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Charitable activities 4 The advancement of education Relief of poverty The advancement of health Other charitable activities Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2022 Unrestricted fund £ 123,050 105 123,155 748,164 85,859 214,703 17,634 1,066,360 (943,205) 723,494 (219,711) |
2021 Total funds £ 1,145,963 46 1,146,009 436,044 87,031 93,957 30,469 647,501 498,508 224,986 723,494 |
|---|---|---|
The notes form part of these financial statements
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| 2022 | 202t | ||
|---|---|---|---|
| Unrestricted | Total | ||
| tund | funds | ||
| Notes | e | [_ | |
| CURRENT ASSETS | |||
| Debtors | 9 | 17246 | 80,234 |
| Cashatbank | L66,L76 | 705,707 | |
| 183,422 | 785,941 | ||
| CREDITORS | |||
| Amounts falling duewithinone year | 10 | (403,133) | (62,447) |
| NETCURRENT ASSETS/(LrABrLrTrES) | (29,71L) | 723,494 | |
| TOTAL ASSETSLESSCURRENTLIABILMES | (2L9,711) | 723,494 | |
| NET ASSETS | {zLe1t) | 123fr7 | |
| FUNDS | |||
| Unrestricted funds | (2L9,7LL) | 723,494 | |
| TOTAL FUNDS | Qlg,7LL) | lJ3fi |
THE VELVET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. DONATIONS AND LEGACIES
| Donations 3. INVESTMENT INCOME Deposit account interest |
2022 £ 123,050 2022 £ 105 |
2021 £ 1,145,963 |
|---|---|---|
| 2021 £ 46 |
continued...
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THE VELVET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
4. CHARITABLE ACTIVITIES COSTS
| 4. CHARITABLE ACTIVITIES COSTS |
||||
|---|---|---|---|---|
| The advancement of education Relief of poverty The advancement of health Other charitable activities 5. GRANTS PAYABLE The advancement of education Relief of poverty The advancement of health |
Grant funding of activities (see note 5) £ 748,164 85,859 214,703 - 1,048,726 |
Support costs (see note 6) £ - - - 17,634 17,634 2022 £ 748,164 85,859 214,703 1,048,726 |
Totals £ 748,164 85,859 214,703 17,634 1,066,360 2021 £ 436,044 87,031 93,957 617,032 |
|
The total grants paid to institutions during the year was £998,857 (2021: £616,245). A summary of grants made to institutions during the year is as follows:
| Name of institution | Amount (£) |
|---|---|
| Netivei Itzhak | 211,159 |
| UK Friends of I.D.C. | 78,000 |
| Beis Hamedrash Nishmas Yisroel | 62,000 |
| Ahavot Shalom | 55,905 |
| Mercaz Hatorah Netzach Yisroel | 54,400 |
| Alzheimer's Medical Center | 49,835 |
| Kinyan Hatorah UK | 48,500 |
| Enhance Reviews | 37,608 |
| Yeshaya Adler Memorial Fund | 35,000 |
| Chabad of Hampstead Garden Suburb | 34,500 |
| Friends of Yeshiva Bircas Mordechai | 25,000 |
| Machazike Hadath Community | 25,000 |
| CST | 25,000 |
| Kisharon | 25,000 |
| Mowbray Buildings Ltd | 20,000 |
| Institute for Higher Rabbinal Studies | 15,000 |
| Gateshead Jewish Academy for Girls | 11,000 |
| Other | 185,950 |
| Total | 998,857 |
continued...
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THE VELVET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
6. SUPPORT COSTS
| Governance Management Finance costs £ £ £ Other charitable activities 533 6,061 11,040 7. AUDITORS' REMUNERATION 2022 £ Fees payable to the charity's auditors for the audit of the charity's financial statements - |
Totals £ 17,634 2021 £ 4,200 |
|---|---|
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 September 2022 nor for the year ended 30 September 2021.
No staff were employed during the period.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 September 2022 nor for the year ended 30 September 2021.
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Other debtors 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors Accruals and deferred income |
2022 £ 17,246 2022 £ 250,000 153,133 403,133 |
2021 £ 80,234 2021 £ - 62,447 |
|---|---|---|
| 62,447 |
11. RELATED PARTY DISCLOSURES
The entire Donations and Grants Received comprising £123,050 (2021: £1,145,963) was from companies and organisations controlled by the trustees of The Velvet Foundation.
12. ULTIMATE CONTROLLING PARTY
The charity is controlled by the trustees.
continued...
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THE VELVET FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022
13. FINANCIAL INSTRUMENTS
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective impairment is found, an impairment loss is recognised in profit or loss.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset or settle the liability simultaneously.
14. COMPANY LIMITED BY GUARANTEE
The charity company is limited by guarantee and does not have share capital. The articles of association of the company preclude the distribution of assets to the members of the company and accordingly a reconciliation of shareholders' funds is inappropriate. The liability of each member in the event of a winding up is limited to £10.
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