Union Chapel Trustees, Annual Report and Financial Statements for the year to 31 March 2025 Charity Number 1172808
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Contents Referen and Administrative Information............................. .............................................. Goveming Document............................................................................................................ Managing TTustS........................................................ Relationship with the Congregational Federation............................................................ ..... Objects and Activities................................................................... Public Benefit.............................................................................. Relationship with Union Chapel Project and The Margins Project....................................... performan and Achievements........................................................................................... Future Plans (2025-26)....................................................................................................... 10 Financial Review................................ Reserves Policy.................................................................................................................. 13 Fundraising... 14 Risks....... 15 Statement of Trustees, Responsibilities....... ... ...........-....-................................................. 16 Independent Examinerfs Report to the Trustees of Union Chapel.....................................-. 17 Statement of Financial Activities for the Perioxl 1 April 2024 - 31 March 2025.......... 19 Balan Sheet as at 31 March 2025................................................................................... 20 Notes to the Financial Statements........ .... .21 1 Accounting policies............................-......-..........................-....................................................21 2 Income from grants and donations............................................................................................ 3 Income from charitable activities...............................................................................................23 4 Income from othertrading activities............................-..............................................................23 5 Income from investments and deposits......................................................................................23 6 Analysis of expenditure.............................................................................................................24 7 Net income l (expenditure)..............-..............................-..........................................................25 8 Staff costs and trustee remuneration and expenses...................................................................25 9 Tangible fixed assets and depreciation......................................................................................27 10 Investrnents............................................................................................................................27 11 Debtors...................................................................................................................................28 12 Creditors: amounts falling due within one year...... ............... 13 Net assets between funds. .28 .28 14 Movements in funds................................................................................................................29 15 Related paty transactions................................................................................................:......31 16 Legal status and members. liability..........................................................................................31
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Reference and Administrative Information Trustees I deacons Claudina Edwards MG Jones (Church Secretary) Huw Williams Mlnister Rev. Vaughan Jones Rev. Cathy Bird (until 31 July 2024) (from 13 January 2025> Treasurer Dr. Philip Cotterell Charity number 1172808 Legal status Union Chapel is an unincorporated charitable tnjst govemed by a trust deed Principal address Union Chapel 19b Compton Terra London N12UN Bankers Lloyds Bank 19-20 Upper Street London N1 OPJ Accountants Goodman Jones Arthur Stanley House 40-50 Tottenham Strt London W1T 4RN Solicitors Bates Wells 10 Queen Street Place London EC4R 18E Bolt Burdon Providence House providen Place London N1 ONT Surveyors I property managers Go(MJman Mann Broomhall 118 Piccadilly London W1J 7NW Price Taylor 108-109 Upper Street London N1 1QN
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Governing Document Union Chapel (hereafter °UC") is a Congregationalist church affiliated to the Congregational Federation. It is an unincorporated charitable trust, initially estsblished and govemed by an indenture dated 18 September 1889. In 2018 UC made substantial changes to that indenture. Those changes were motivated by the desirability of bringing the content up to date, and in particular by the need to have Uc's lationship with the Congregational Federation - described below - COectlY set out in its goveming document. Because the original 1889 indenture does not grant any power of amendment, UC was able to make only changes deemed to be 'administrative' and so within the scope of the statutory power of modification o)nferred by section 280 of the Charities Act 2011. The Charity Commission has approved a model goveming document for use by churches affiliated to the Congregational Federation and. to the extent possible. Uc's amended governing document- the "consolidated trust deed"_ matches that model document. The text of the consolidated trust deed is therefore a (slightly awkward) amalgam of clauses from the original 1889 indenture and material copied from the approved model document. Managing Trustees The consolidated trust deed establishes that: the Managing Trustees are Uc's Irustees as defined in the Chartties Act 2011. and have all powers to control, manage, and administer the church in accordan with the (X)nsolidated trust deed and their charitsble and other legal obligations: . the members of the church. acting collectively as and through the Church Meeting, have the power to appoint Managing Trustees: . the individuals appointed by the Church Meeting to be Uc's deacons are also its Managing Trustees, unless the Church Meeting, by passing a special resolution, explicitly decides otherwise; . each Managing Trustee must be a member of the church, and any Managing Trustee who ceases to be a member of the church also automatically aSeS to be a Managing Trustee; and ' each Managing Trustee is appointed for a three-year tenn, and may at the end of any term be re-appointed for a further three-year term. The Church Meeting has not passed any special resolution which alters the default arrangements, so Uc's deacons are also its trustees. (For the avoidance of doubt, neither the Minisler nor the Treasurer is a trustee.)
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 The consolidated trust deed does not pla any restriction on the number of Managing Trustees which the Church Meeting may appoint. In practice, the number is constrained by the limited availability of individuals who aTe eligible and willing. When making an appointment. the Church Meeting considers the exper[en. knowledge, and capabilities that a prospective Managing Trustee can bring to the role, and also the desirability of maintaining diversity among the Managing Trustees. The Managing Trustees give their time voluntarily; they are not paid and do not re1ve any benefit from UC in retum for their servi. UC does not have any formal induction or training program for new Managing Trustees. The existing Managing Trustees do not believe any such provision is neSsary. Managing Trustees are nesSarilY mernbers of Ihe church and are appointed by the Church Meeting. so it is assumed that a new Managing Trustee has some familiarity with matters of current conrn or interest. The Managing TTustees are encouraged to take advantage of training offered by the Charity Commission. Relationship with the Congregational Federation The Congregational Federation is the Holding Trustee. Uc's buildings- the church building itself, and the properties at 18 and 19 Compton Terrace, adjant to the church building on either side of it- are vested in the name of the Holding Trustee and for that reason do not appear as assets on Uc's balan sheet. The c£)nsolidated trust deed gives the Holding Trustee rights to: make reasonable requests for information relating to Uc's management and administration and the use of its buildings: send a representative to any Church Meeting or any weeting of the Managing Trustees: and investigate if it has reasonable grounds for suspecting that UC is not complying with its consolidated trust deed, or is otherwise jeopardising its charitable status. or that any aspect of its management or administration is not being carried out correctly. The Holding Trustee is not under any obligation to exercise any of these rights. If so requested by a special resolution of the Church Meeting - and not otherwise - the Holding Trustee will assume the role. powers. and responsibilities of Uc's trustees in pla of the Managing Trustees. Congregational Federation Ltd.. registered with chartty number 267469 and company number 01166357.
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Objects and Activities Uc's charitable objects, as set out in the consolidated trust deed, are to permit the said piece of ground, Chapel, Vestries, Lecture Hall, School and Class Rooms, and two messuages hereditaments and premises, and any other buildings that may hereafter be erected on the said piece of ground and any parts thereof to be used, occupied, and enjoyed for the public worship of Almighty God in accordan with the belief in the Lord Jesus Christ as the incarnate Son of God and the Redeemer of Men and in the Holy Spirit as the author of spiritual life and with a reLX)gnition of the divinely inspired scriptures of the Old and New Testaments as the supreme and sufficient rule of faith and practice. and also for such other religious, philanthropic, moral, intellectual, or social purposes, not incx)nsistent with such belief and recognition as aforesaid and generally in such manner and by such persons as shall from time to time be directed by a special resolution. In pursuit of these objects, UC organises and provides: ' weekly Sunday moming servIS of Christian worship, including a communion service on the first Sunday of each Month. and baptisms as and when requested: additional services and other activities to mark particular occasions within the Christian liturgical year (primarily Easter and Christmas); . wedding servIs. . funeral and memorial seNices; a regular Bible study (conducted in a hybrid online l in-person format, to facilitate participation by individuals who cannot be present in person on a vekdaY evening); . pastoral care and support for members of the church. other regular congregants. and others who may from time to time seek such support from the church; . a community choir, Union Chapel Singers. open to anyone who wishes to participate; a series of events focussed on issues of (¥ent interest or conM, especially matters of racial, social, economic, and climate justi. . perforManS which use the arts to explore and engage with spirituality and culture; advocacy for individuals who are disadvantaged or marginalised, to assist those individuals and also generally to en(x)urage diversity and raise awareness of discrimination; and "Messuage": a Ple of land occupied. or intended to be ¢xcupied. by a dwelling.
Union Chapel Trustees, Annual Report & Financial Statements 2024-25 ' various forms of assistan to asylum seekers and refugees currently accommodated within the London Borough of Islington (funded by a grant from Islington Borough Council). UC also pursues its objects through its involvement with two other charities, Union Chapel Project and The Margins Project. This activity is described below. Public Benefit In accordance with paragraph 5, section 17 of the Charities Act 2011 , the trustees have considered the Charity Commission's guidan on public benefit. Uc's services of worship and other activities are open to all, without lirnitation or distinction on the grounds of religious faith or otheThvise. Most of Uc's core activities are provided without any charge and this is intended to maintain aSSIbIlity for individuals with low incomes. (However. it is becoming necessary for those church events to which significant costs are attributable to at least break even. which means that UC must now charge for admission for some events vthich might once have been provided free of charge.) Relationship wlth Union Chapel Project and The Margins Project Union Chapel Project (hereafter 'UCP") is a separate oiganisation - a charitable limited compan¢ - established to prornote for the benefit of the public the restoration and preservation of Union Chapel Islington where "Union Chapel Islington. in this context means the church building. In accordan with a decision by UC that UCP should be appointed to manage [the building} with a view to its preservation Maintenan and wider use for purposes beneficial to the local (x)mmunity UC has delegated all matters relating to the fabric and operation of the building, including fundraising to enable Maintenan and restoration, to UCP. UCP'S Articles of Association establish that members of the Company shall be those of the minister and the members of [Union Chapel] for the time being who wish to become a member of the company. Therefore, everybody who is entitled to a vote at any (annual or extraordinary) general meeting of UCP is necessarily a member of UC. UCP'S Articles of Associalion furthermore 3 A company limited by guarantee and not having a share capital. registered with charity number 1010166 and company number 02583801.
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 state that UCP shall have up to seven directors. of whom one shall be Uc's Minister (so long as the Minister is able and willing), and up to three others shall at the time of their appointment be members of UC: it is therefore expected that the Minster and selected members of UC shall constitute an absolute majority of UCP'S directors. These arrangements are intended to ensure that UC retains ultimate strategic control of its building. The day-to-day operational relationship between UC and UCP is govemed by a Management Agreement which fonnally establishes matters such as the parties, respective rights to make use of the building. It also specifies certain arrangements for ongoing liaison and COrdInation. In recent years neither party has fully discharged all of its obligations under these arrangements. The Management Agreement states that UC shall make an agreed annual donation to UCP towards the maintenance and restoration of [the building] when and to the extent it is able and this will be reviewed annually. The Margins Project (hereafter"UCM°) is a charitable subsidiary of UCO. It provides a range of ServIS intended to relieve need and hardship and to provide opportunities, training, and employment for people who are homeless, at risk of becoming homeless, or otherwise marginalised. UCM delivers a substantial amount- but rtainlY not all - of that part of the thurch's activity which can most straighffonvardly be described as "tharttable" There are no direct structural connections between UC and UCM; formally, the relationship between the two organisations is entirely through UCP. However, Vaughan Jones was the chair of UCM'S trustees until his retirement at the end of July 2024; and since her appointment Cathy Bird has become one of UCM'S trustees. Performance and Achievements In 2024-25 UC continued its mission as a community of Christians from diverse backgrounds committed to living lives that are spiritual, sustainable, and responsive to the gospel's call for justice and pea. Our charitable pather UCP ensures the building is well used. respecting the dignity of a Spa that is used for public worship. Our programme promotes racial, social, economic, and climate Justi from the per5pectÈve of our radical Christian faith. . The year was marked by a period of transition when Vaughan Jones tired at the end of July 2024. The search for a new Minister involved a multi-step prosS, involving a search committee, and a careful evaluation of candidates. Cathy Bird was offered the role and accepted. Rev. Bird previously held the position of Superintendent Minister of the Methodist Church's United Stockport Circuit. She CoMmend her ministry at UC in January 2025. UCM is an 'association" Charitsble Incorporated Organisation (CIO) registered wrth charity number 1153070. UCP is its only member.
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 The opportunity was taken to revise the terms and conditions of employment for the Minister and to put in place arrangements to rent accommodation offered as part of her temis and conditions of employment. . The period of "interregnum" (the time between Vaughan Jones, departure and Cathy Bird's arrival) saw services ntinUe each Sunday with members of the congregation leading worship. . Sunday ServIS continued to attrad a diverse congregation, including many new to the Christian faith. To help their understanding an education session was held before each service. • Special ServIS were held during Ihe major festivals of the church: Advent, Christmas, Lent. Easter. Pentecost. . Other sep11S marked Christian Aid Week. Homelessness Sunday, Refugee Week. Black History Month, Pride. Holocaust Memorial Day. and Remembran Sunday. . A Bible study and religious refleclion session was hekl weekly with a variety of themes, linked to the church year. . Our ever-popular 'Carols by Candlelight., combining drama, music. and communal singing, offered a welcoming Spa for lebratiOn for people from across the borough. . The commitment to music-making of a high standard continued under our Organist I Musical Director. A pool of professional and experienced musicians enhanced our worship with gospel, jazz, and classical music. After years of planning and fundraising, the Ghurch building's historic 1877 Henry Willis organ - a Grade I listed instrument on the National Pipe Organ Register (NPOR) - was removed for renovation: this is interKled to restore the organ's machinery, pIperk. and enclosure. The organ is an integral part of the church building, and so falls within UCP'S remit: therefore. UCP carried out all of the required fundrdising. met the costs, and was responsible for planning and initiating the work. Musical accompaniment during Sunday services continued, using electronic and acoustic piano. . The community choir Union Chapel Singers continued to rehearse and attract new singers from across the borough. and beyond. Gospel Arts is an initiative of UC with the ambition lo promote gospel music and includes the Union Chapel VolS (UCV) ensem tICV pefformed as part of Ihe recordlng of the-_ BBC Songs of Praise episcmje "Sing Gospell. at Union Chapel.
Union Chapel Trustees, Annual Report & Financial Statements 2024-25 We were able to continue providing wraparound support to asylum seekers in a hotel in the borough, thanks to the grant from Islington Borough Council. We also supported service users in their move to other areas due to the closure of another hotel in the borough. The church ojntinued to officiate at weddings. including same-sex marriages, and memorial servIs. UCM, based in the church building, (x)ntinued its work as a frontline charity offering services supporting people facing homelessness and other critical living crises. spa within the church building was made available to extemal faith-ba*d organisations to hold meetings. UC continued its commitment to theological and pastoral education. Members of the congregation started theological studies with Luther King House (LKH) and with the COnggatIOnal Institute for Practical Theology (CIPT), and brought their studies in to UC worship and activities. We also hosted a pastor from the Swiss Reformed Church on a six- month study sabbatical. . UC re-organised its estate with the refurbishment of the basement of 19 Compton Terra. The new space is now the church's administrative offi, offering suitable working accommodation for five of Uc's empkjyees. The room previously used by UC for this purpose has been added to the Spa let to UCP. . Plans were put in pla to ensure the properties at 18 and 19 Compton Terra are brought up to standard with interior and exterior work undertaken during 2024-25 and planned for 2025-26. Work on the legal tenancy documentation was progressed. . Attendan at church has stabilised with an average of over 35 attendS each Sunday. Some regular attendees have come into member6hip and the church roll has grown to over 20. Future Plans (2025-26) During the coming year. as well as the activities set out above, UC will: . Begin a "discipleship. development programme to introduce the basics of Christianity to those new to the Christian faith. and to refresh the knowledge of longer-stsnding Christians. . Continue to encourage those new to the Christian faith to explore baptism. • Raise the profile of Union Chapel as an inclusive and welcoming church, through investment in a marketing and publicity professional, with a view to increasing membership and participation 10
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Introduce efforts to raise the church's income through increased donations, explicit fund- raising events. and increased use of the Spa by UCP and extemal partners. Explore ways of working more dosely with UCM, partilarlY in terms of the support of refugees and asylum seekers. Review existing policies and prOdureS ensuring best practi is followed, in particular in relation to safeguarding and volunteer recruitment and support. Explore in partnership with UCP the range of measures which can be undertaken together to ensure that UC is an ethical organisation - e.g., ethical purchasing. becoming an "Eco Church" improving accessibility of the premises. . Explore in partnership with UCP becoming a rrEmber organisation of North London Citizens. . Explore becoming a member organisation of appropriate networks such as Church of Sanctuary and Inclusive Church Netwotk. . Continue to work with the family of churches of the Congregational Federation and participate in the activities of the Federab'on. Financial Review (All amounts stated in this section have been rounded to the nearest £1.000.) In 2024-25, UC incurred a budget deficit of £53.000. This was essentially a deficit on UC'S general (unrestricted) in(me and expenditure. The rent derived from the properties at 18 and 19 Compton Terrace makes up by far the majority of Uc's regular unrestricted income (84 % in 2024-25)- The principal lettable spa within 19 Complon Terra was. however, vacant for some months, following the departure of the previous tenant. Also, an initial rent-free period had been agreed with the new tenant in exchange for the tenant paying for some refurbishment and improvement works - and so no rent was obtained from that Spa during the year. The rent-free period will end approximately halfway Ihrough 2025-26, so the total renlal income for the coming year will be higher than for 2024-25, though it wll not fully recover until 2026-27. During 2023-24. UC received significant exceptional income (£79,000) in the fomi of dilapidations payments from outgoing tenants. Some of this was spent on refurbishment and improvement works on the 19 Compton Terra propety during 2024-25. There will be similar exceptional expenditure on the 18 Compton Terra property during 2025-26, which is expected to consume the remainder of that exptiOnal income together with other money previously set aside for this purpose. The deficit therefore arose partly from that timing difference, which had previously prodUd a significant budget surplus in 2023-24. Some of the expenditure on 19 Compton Terrace has been capitalised, so the depletion of Uc's cash 11
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 reserves eXedS the recognised cost. (The balan sheet shows that current assets have fallen by £87,000. while tangible fixed assets have increased by £17.000.) UC again received a grant from Islington Borough Council (IBC) to fund work supporting asylum seekers. The 2024-25 grant was lower than that agreed for the previous year, and so therefo was Uc's spending. This reflects IBC'S decision to procure certain services directly from the ultimate provider, rather than pay UC to obtain them on its behalf. Uc's grant- funded activity in fact increased in 2024-25 compared to the previous year. The grant income primarily facilitates activity M*hith would not be undertaken in the absence of dedicated funding. However, some of the grant is allocated to payroll costs which are part of Uc's core operating Lx)sts (see note 8 to the financial staterrEnts), so Uc's deficit on unrestricted fvnds would be greater without it. In the (Ljntext of the political controversies surrounding the provision of temporary accommodation to asylum seekers. the govemment's stated intention to end the use of hotels for this purpose. and the general state of the public finances, this funding was not likely to continue indefinitely; and at the signing date it is known that it will continue only until the end of December 2025. Some recurrent core operating costs, particularly payroll and associated costs, were lower during 2024-25, but will increase again in 2025-26. For several months during 2024-25 UC was without a Minister, which created difficulties but did reduce the year's payroll costs. UC also eliminated one permanent staff position during the year. A new Minister is now in pla. and the saving from the removal of a staff role will be more than offset by the costs of providing ac(J)mmodation for the Minister. Such pvIsion is the established and customary practice of Congregationalist churches. though for several years UC beneftted from having appointed a Minister who was already resident in London and so did not require this. Under the terms and conditions of employrrÉnt agreed with the new Minister. UC pays the rent on a suitable property, and also the associated (Xjuncil tax and water rates. This has created an exposure to Ihe London private rentsl market. the cost of providing accommodation for the Minister could conceivably rise quite significantly each year. The analysis of expenditure (note 6 to the financial statements) shows unusually high costs for govemance and for mISlIaneoUS Cfjsts. Govemance Ix)sts for the year include the cost of legal advice which the trustees detennined was qUired in wnnection with the appointment of the new Minister. However, these costs also include professional fees for payroll administration. which UC will now incur every year. In previous years UCP performed this task for UC- an arrangement which was free of charge, but informal and undocumented. Uc's trustees have identified a need to disentangle various activities previously left to UCP, so as to establish clear, explicit. and formalised responsibilities., but this necessarily introduces some costs. Similarly, miscellaneous costs include the new Ministerfs loCation costs, paid by UC again in accordan with established Congregationalist practi, but also the ongoing costs of IT support and provision of utilities to Uc's administrative office, which have also been separated from UCP. 12
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 A further budget deficit is forecast for 2025-26, and this would be the case even without the anticipated exceptional costs of refurbishment and repair at 18 Compton Terrace. Continuing increases in payroll and related (x)sts, and in other unavoidable wsts relating to essential management, administration, and g0Veman activities, are expected. Action to address this during 2025-26 will focus on changes to Uc's program of events intended to ensure that they generate income which is at least sufficient to cx)ver their costs. This will require UC to charge admission fees for more events; there may be more attempts to solicit donations; and there will be more events which have fundraising as an explicit purpose. Uc's reserves are sufficient to cover its expected deficit during 2025-26, with a reasonable margin to meet unanticipated costs. However, if UC does not athieve a material reduction in costs and l or a material increase in income. then it will exhaust its reseNes during 2026-27. UC will attempt to secure a granl, or grants. from other sources to repla the grant from IBC. If such altemative funding is not secured then UC will have to discontinue the activities which have been facilitated by that gran( and this will necessarily include terminating the employrnent of the two members of staff whose positions are wholly funded by the grant. Other decisions which are open to UC. and which can be put into effect rapidly, should be sufficient to balan the budget for 2026-27. These are not wilhout adverse consequences - e.g.. suspending Uc's annual donation to UCP will realise a significant cash saving, but UC is dependent on UCP'S continuing operation - but they will secure Uc's survival in the short term. The trustees therefore believe that for the time being UC remains a going concem. It is harder to di5M a path back to robust long-term financial viability. but this is not quite so urgent. If it becomes evident that a stable and sustainable financial situation cannot be achieved. UC (x)ukJ sell its properties: the prOedS of those sales would be sufficient to fund UC for Veral years. allowing time for an orderly arKI planned winding-up. Reserves Policy At the balan sheet date UC has free reserves of £153.582 (down from £224.936 at 31 March 2024). UC does not have a formal reseTves policy. For a number of years income exeded expenditure and in that context the trustees did not consider it neSSary to specify any particular level of reserves which Suld be maintsined. However, it had been known for some time that the properties at 18 and 19 Compton ' expen errace wouTd require sign can ure. a su lime as the pnncipallenants left, ro- bring them up to current lettable standards. The trustees set aside £80,000 for this purpose and this amount was later augmenled by the dilapidations payments reived from outgoing tenants. Both principal tenants ended their tenancies in the final weeks of 2023-24, and in 13
Union Chapel Trustees. Annual ReFx)rt & Financial Statements 2024-25 Consequen some of the accumulated reserve vS spent during that year. More was spent during 2024-25 and it is expected that the balance will be used during 2025-26. It will soon be ne$Sary to start accumulating a reserrfe against the next occasion on which significant expenditure on the properties is required. In the context of the near-tem financial outlook this will be difficult. It is therefore unlikely that UC will be in a position to establish a more general reserves policy for some time. Fundraising UC obtains its unrestricted income primarily by renting Spa in its properties at 18 and 19 Compton Terrace. UC does not generally solicit donations from the general public. Cash donations are accepted after Sunday servIs. arKI the order of Servi each week includes some information about giving. In 2025-26 there will be additional efforts to solicit donations from people attending the church's events. A few members of the church donate regularly by standing order. The Treasurer reports Uc's financial situation to the Church Meeting from time to time. and it is always hoped that more members will Choo to donate. but the trustees do not believe that there exists any realistic prospect of obtaining very substantial amounts from the members or from other regular or occasional congregants. Further relatively small amounts of unrestricted income are generated by charging for admittan to some events; by operating a bar during some events: and by charging fees for conducting weddings and funerals. Collections are taken on particular occasions - for example, at the annual Christmas caro conrt. In the past these have not generally bn for Uc's general funds. but have been taken either specifically to support the church's work with asylum seekers, or on behalf of UCM. It is likely that this will now have to change, with such occasional collections being explicitly for the church's general funds. The community choir- UC Singers- is funded by participants, subscriptions and associated bar revenue. None of this arTh)unts to significant fundraising activty. Small grants are secured from time to time. K*hich provide a mixture of restricted and unrestricted inc£)me. The major grant from Islington Borough Council, supporting Uc's work with asylum seekers, should be understood in terms of the council having a requirement to find an organisation to deliver this work and the church being well-placed to undertake it; this partnership was not conceived as a fundraising measure. 14
Union Chapel Trustees. Annual Rewrt & Financial Statements 2024-25 Risks The rents obtained from 18 and 19 Compton Terra made up 84 % of Uc's unrestricted income during 2024-25. These rents are generally stable and predictable, but UC has no other Sour of funding from which it could plausibly meet its general Sts, so any significant disruption to this income would have serious cOnsequens. The principal tenants of the two buildings are two different organisations- and 19 Compton Terra also CLintains a residential flal, and Offi space let to UCP - vthich somewhat mitigates the risk of interruption, and it is anticipated that they will both remain for several years. UC has a persistent budget deficit which now presents a clear threat to its continuing viability. This is described in more detail in the °Financial Revie section above. The forrnal membership and the regular congregation are both growing. steadily, but slowly and from a low base; numbers remain small. and may not be sufficient to secure Uc's long- term viability. There are not enough volunteers to fill every role that would ideally be filled. This is a siluation fad by many churches. A particular (x)nsequen is that there exist very few individuals who are even technically eligible to become trustees. and it is increasingly likely that UC will not be able to find members who are capable of undertaking the duties, and willing to accept the responsibilities. of trustees UC does not possess the resources. skills, knowledge. or capacity to assume responsibility for maintaining and operating its building, if UCP were to fail. There are not currently any significant doubts about UCP'S viability" but UC is fundamentally dependent on UCP'S continued operation. Since 1 April 2023 UC has significantly improved its routine financial administralion and processes. There remain some risks which probably cannot be redUd further and must just be accepted: with so few people involved. substantial key person dependencies cannot be avoided, especially if any meaningful separation of duties is to be maintained, and certain elements of acpIed best pracfii. such as double authorisation for online banking transaclions, cannot be implemented. The growing public hostility towards the ac(x)mmodation of asylum seekers in hotels, and some of the ways in which that hostility has been expressed. could cOn1vablY result in situations in which the safety of Uc's staff and volunteers. or Ihe asylum seekers with whom it works, is threatened. The trustees keep these activities under review and have accepted that it may be neSSary to modfy or even terminate some of Uc's activities if the safety of participants is threatened. The responsible members of staff have the authority to rearrange or cancel activities. There is no repUtatnal or regulatory risk: UC does not depend on donors or supporters who disapprove of this work. which is properly within Ihe scope of its ari le purposes and Is no open egafion thla Ii is inappropriafely "political"- 15
Union Chapel Trustees, Annual Report & Financial Statements 2024-25 Statement of Trustees, Responsibilities The trustees are responsible for preparing the Trustees, Annual Report and Financial Statements in accordan with applicable law and UK Accxwnting Stsndards including Financial Reporting Standard 102 {FRS 102) The Financial Reporting Standard Applicable in the UK and Republic of Ireland (UK Generally Apted Accounting Practi (GA4P)). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the stste of Union Chapel's affairs and of its income and expenditure during that year. In preparing these financial statements, the trustees are required to: choose suitable accounting policies and apply them consistently; ' observe the methods and principles in the Charities Statement of Recommend Practice (SORP)., make judgements and accounting estimates that are reasonable and prudent. • confirm that applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial ststements: and prepare the financial statements on the going cOnM basis, unless it is inappropriate to assume that the tharity will continue to operdte. The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time Union Chapel's financial position and enable them to ensure that the financial statements comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008, and the provisions of Union Chapel's trust deed. They are also responsible for safeguarding Union Chapel's assets. and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the rna1ntenan and integrity of the information, including any financial information, included on Union Chapel's website. Legislation in the UK goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the trustees on - -oi6 xyl.z5 and signed on their behalf by Claudina Edwards Trustee 16
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Independent Examiner's Report to the Trustees of Union Chapel I rep)rt to the truslees on my examination of the accounts of Union Chapel for the year ended 31 March 2025. Responsibilities and basis of report As the trustees of Union Chapel, you are spOnSible for the preparation of the accAJunts in accordance wilh the requirements of the Charities Act 2011 ("the Act"). I report in respect of my examination of Union Chapel's accounts carried out under section 145 of the Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Independent examinerfs statement Your attention is drawn to the fact that Union Chapel has prepared the accounts in accordan with Accounting and Retx)rting by Charities: Statement of Re(x)mmended Practice applicable to charities preparing their ac(x)unts in aC(X)rdan with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) in preferen 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 been withdrawn. l understand that this has been done in otder for the accounts to provide a true and fair view in accordan wilh the Generally Apted Accounting Praclice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I confim that no matters have come to my attention in connection wilh the examination giving me cause to believe Ihat in any material respect: accounting rec£)rds were not kept in respect of Union Chapel as required by section 130 of the Acl; or 2: the accounts do not accord with those records; or 3: the accounts do not comply with the applicable requirements conceming 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 fairf view which is not a matter considered as part of an independent examination. ave no concems and have come across no o er 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. 17
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 This port is made solely to Union Chapel's trustees, as a body, in accordan with Part 4 of the Charities (Accounts and RerK)rts) Regulations 2008. My work has been undertaken so that I might state to Union Chapel's twstees those matters l am required to state to them in an Independent Examinerfs Report and for no other puOSe. To the fvllest extent permitted by law, I do not accept or assume responsibility to anyone other than Union Chapel and Union Chapel's trustees as a body, for my work or for this report. Date: 2&1 Julian Flitter Goodma ones LLP Arth tsnley House -50 Tottenham Street London W1T4RN 18
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Statement of Financial Activities for the Period 1 April 2024 - 31 March 2025 Note 2024-25 Unrestricted 2024-25 Restricted 2024-25 Total 2023-24 Total Income from Grants & donations Charitable activities other trading activities Investments & deposits 10,672 10,904 125,620 81,718 6,556 92,390 17,461 125,620 1.964 145,202 13,144 228.965 901 Totsl income 149,160 88,274 237,434 388.211 Expenditure on Raising funds Properties Fundraising Charitable activities Church activities Events Weddings & funerals Union Chapel Singers Asylum seekers 68,195 68.195 25,396 117,704 16.034 417 117.704 16,034 417 4.810 82,966 126,720 35.398 1.760 5,925 115.329 4.810 82,966 Total expenditure 202,351 87.776 290.128 310,530 Net income l (expenditure) before revaluation of investments (53,192) 498 (52,694) 77,681 Net gains l (losses) on investments 10 (20) (20) 18 Net income l (expenditure) (53.212) 498 (52,714) 77,698 Inter-fund transfers Net movement in funds (53.212) 498 (52,714) 77,698 Total funds brought forward 253,076 78,846 331,922 254,223 Total funds carried forward 199.864 79,343 279,208 331,922 All the above results were dertved from continuing activities. l]ete.were no recognised gaill Jossesotherlhan those stated above. The following notes fomi part of these financial statements. 19
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Balance Sheet as at 31 March 2025 Note 31 March 2025 31 March 2024 Fixed assets Tangible fixed assets Investments 46,797 28,825 1,086 29,911 10 46.797 Current assets Debtors Cash at bank and in hand 11 61,825 176.564 238,389 162,105 163,582 325,687 Liabilities Creditors- amounts falling due within one year 12 (5,978) (23.677> Net current assets l (liabilities) 232.411 302,011 Totsl net assets l (liabllitles) 279,208 331.922 Funds Restricted funds Unrestricted funds 13 79.343 199,864 78,845 253,076 Total funds 279.208 331.922 The following notes form part of these financial ststements. Approved by the trustees on Zo "£ - c. i - Z& and signed on their behalf by PkLF cadr Phllip Cotterell Treasurer 20
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Notes to the Financial Statements 1 Accounting policies Basis of aration These financial statements have bn prepared in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and the Republic of Ireland {FRS 102)" _ Charities SORP FRS 102- and with the Charities Act 2011. UC meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated. The financial statements are prepared and presented in GBP (sterling), which is Uc's functional currency. Amounts in the financial statements and the notes to the financial statements are rounded to the nearest pound. Rounding is performed as the final stage of preparation and this may Introdu some apparent small discrepancies - e.g., row and column totals may not appear to be exactly correct. Goin concem In the judgement of the trustees. at the date of approving these financial statements: . there are no material uncertainties about Uc's ability to continue as a going COnrn. and . there are no SoUrS of estimation uncertainty which carry a significant risk of requiring a material adjusttnent to the carrying amounts of assets and liabilities within the next financial year (2025-26). Income Income is recognised in the period during which the church is entitled, and can reasonably expect, to receive it, and the amount can be assessed with reasonable certainty. Cash donations are recognised on the date of bank deposit. Ex enditure xpenditure is recognisecin the period during which it is incurred. Most expenditure is in practi recognised on the relevant invoice date. Salaries and related liabilities are recognised on each month's pay date. Independent examiner's fees in respect of a given yearfs financial statements are recognised during that year. Expenditure includes non- recoverable VAT. 21
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Tan ible fixed assets and de reciation Tangible ftxed assets with an original purchase pri or cost of £1,000 or more are capitalised, and ststed at original cost less depreciation. Depreciation is charged on a reducing balan basis at annual rates intended to write off the costs of these assets over their estimated useful lives; the rates are 100h for improvements to the church's properties, and 250/0 for church and office equipnEnt. Investments At the start of the year, UC had an investment which was held by Congregational Federation Ltd as custodian. Investment income was paid into a COIF Deposit Fund held by CCLA Investment Management Ltd and administered by Congregational Federation Ltd. During the year, UC sold this investment. The associated COIF Deposit Fund no longer sep4es any useful purpose but, because of delays in Congregational Federation Ltd's exeojtion of Uc's instructions. still existed at the balan sheet date. It will be closed during the 202&26 financial year. Funds Uc's unrestricted (general) funds comprise those monies which UC may use at the trustees. discretion to further its charitable objects. These may indude designated funds. set aside by the trustees at their own discretion for particular purposes. Uc's restricted funds comprise monies raised or given for spectfic purposes, which may be used only for those purposes. The purposes of Uc's designated and restricted funds on the balance sht date are set out in note 14. 2 Income from grants and donations 2024-25 Total 2023-24 Totsl Unrestricted Restricted Grants 81.718 81,718 10.672 135.785 9.417 Donations 10,672 10,672 81.718 92,390 145,202 22
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 3 Income from charitable activities 2024-25 2023-24 Unrestricted Restricted Totsl Total Events Weddings & funerals Choir (Union Chapel Singers) 10,904 10,904 5,418 2.447 5.279 6,556 6,556 10,904 6,556 17,461 13,144 4 Income from other trading activities 2024-25 2023-24 Total Unrestricted Restricted Total Rental incorne Dilapidations payments Other income 125,620 125,620 150.054 78.911 125,620 125.620 228.965 5 Income from investments and deposits 2024-25 2023-24 Total Unrestricted Restricted Totsl Interest Investmenl income 1,953 1.953 11 857 1,964 1.964 901 23
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 7 Net income l (expenditure) This is stated after charging: 2024-25 2023-24 Depreciation Independent examinerfs fee 5,836 3.600 4,051 4,200 8 Staff costs and trustee remuneration and expenses Payroll S*S were: 2024-25 2023-24 Salaries and wages Social security costs (Employer's Nl) Employerfs contribution to Defined Contribution pension schemes Reversal of incorrectly accrued liability to HMRC 105.819 2,967 1.677 130.267 6,225 1.886 (6.308) 110,464 132,069 The trustees were not paid. No trustee was employed by or reiVed any benefit as a result of employment by UC. One trustee claimed reimbursable expenses on one occasion for the costs of hospitality as part of the recruitment prOsS for Uc's new Minister (£65)" and one Irustee claimed reimbursable expenses on one occasion in connection with the refurbishment of parts of Uc's properties (£55). No member of staff was paid more than £60.000. Salary payments to members of staff classified as 'key management personnel" totalled £19.784.
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 Staff numbers 2024-25 2023-24 Average (modal) monthly number of employees At the balan sheet date, Uc's permanent staff establishment (x)nsisted of: Minister; Social Justi Worker, Organist l Musical Director (part-time): and Administrator (part-time). At the start of the year another permanent, full-time role existed: Communications & Development Worker. That member of stsff left Uc's employ during the year and the trustees decided to eliminate the role. Two additional (part-time) members of staff - ESOL & Volunteer Co-ordinator, and Activities Administrator- were funded entirely by the grant from Islington Borough Council; these roles are not part of Uc's penmanent establishment Use of restricted funds to meet payroll costs During 2024-25 a small part of the Ministerfs salary and a significant fraction of the Social Justice Workerfs salary were fvnded by the grant from Islington Borough Council given to support Uc's work with asylum seekers. This use of the money was anticipated and explicitly disclosed in the budget which formed part of the grant application, and is intended to reflect staff time spent on the grant-funded activities. The grant also funds the ESOL & Volunteer Co-ordinator and Activities Administrator positions. Those members of staff work exdusively on grant-fvnded activities. 26
Union Chapel Truslees, Annual Report & Financial Statements 2024-25 9 Tangible fixed assets and depreciation Property Church & Office Improvements Equlpment Total Cost At start of year Additions during year Disposals during year 75,550 23,807 23,610 99,160 23,807 At end of year 99,357 23,610 122,967 Depreciation At start of year Charge for year Eliminated on disposal 50,543 4,881 19,792 955 70.335 5,836 At end of year 55,424 20,746 76,171 Net book value At end of year 43.933 2.864 46,797 At start of year 25.007 3,818 28,825 10 Investments 2024-25 2023-24 At start of year Gain l (loss) during year Disposals during year 1.086 (20) {1.066) 1,068 18 At end of year 1,086 27
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 11 Debtors 2024-25 2023-24 Prepayments Accrued income Se(rity deposit 27,319 31,333 3,173 162,105 61,825 162.105 The security deposit is in respect of Ihe accommodation rented by UC for the use of the Minister. It will be repayable when UC no longer requires the propety. This is not expected to occur within one year of the balan sheet date. 12 Creditors: amounts falling due within one year 2024-25 2023-24 Other creditors 5,978 23,677 5.978 23,677 13 Net assets between funds Unrestricted Restricted Total Tangible fixed assets (net book value) Investment Net current assets 46.282 514 46,797 153,582 78,829 232,411 199,864 79.343 279,208 28
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 14 Movements in funds 2024-25 At start of Incomlng resources & gains Outgoing resources & losses At end of year year Unrestricted funds Designated funds Properties reserve Other unrestricted funds 150.847 102.229 253,076 (68,401) (133,970) (202.371) 82,446 117,418 199,864 149,160 149,160 Total unrestricted funds Restricted funds Union Chapel Singers Asylum seekers grant Asylum SkerS hardship fund Total restricted funds 3.718 73.412 1,715 78.845 6.556 81,718 (4,810) (82,966) 5.465 72.163 1,715 79.343 88.274 (87,776) Total funds 331,922 237.434 {290,148) 279,208 29
Union Chapel Trustees. Annual Report & Financial Statements 2024-25 2023-24 At start of year Incoming Outgoing resources & resources & gains losses At end of year Unrestricted funds Designated funds Properties reserve Other unrestricted funds Total unrestricted funds 80.000 116,608 196,608 78,911 166,833 245.745 (8.064) (181.213) (189,277) 150,847 102.229 253,076 Restricted funds Union Chapel Singers Asylum seekers grant Asylum seekers hardship fund Total restricted funds 4,364 52,145 1,106 57,615 5.279 136,085 1.120 142,484 (5.925) (114.818) (511) (121,254) 3,718 73,412 1,715 78,845 Totsl funds 254.223 388.229 (310,530) 331,922 The properties resepie comprises money set aside by the trustees against the anticipated costs of work on Uc's properties at 18 and 19 Compton Terrace. and the costs of legal and other professional services associated with that work and with the changes of tenants. Approximately half of the accumulated balan of this fund was spent during 2024-25 and it is expected that the remainder will be spent during 2025-26. This fund is strictly the cash set aside; part of the expenditure during 2024-25 has been capitalised, and the capitalised amount, together with the resulting depreciation, is accounted for within the general unrestricted funds. UC had three restricted funds on the balan sheet date: Union Chapel Singers- money raised. principally from participants, subscriptions. to support the activities of Union Chapel Singers; . Asylum seekers grant - grant money received from Islington Borough Council to fund specified work supporting asylum seekers currently aca)mmodated within the borough (supplemented by a small amount of money donated specifically to support this worf(); . Asylum seekers hardship fund- mney raised through collections at certain church events, together with certain individual donations, to be spent at the discretion of the Minister and I or the Social Justi Worf(er for the purpose of meeting occasional identified needs of individual asylum seekers known to UC.
Union Chapel Trustees. Annual ReFM)rt & Financial Statements 2024-25 15 Related party transactions Uc's Minister is a director of UCP, in aCcrdan with UCP'S Articles of Association. During the interregnum between Vaughan Jones, retirement and Cathy Bird's appointment, one of Uc's trustees occupied the Ministerfs pla on UCP'S Board of Direclors. The chair of UCP'S Board of Directors during 2024-25 is a member of UC. Two other UCP directors are also members of UC. UCP paid nt of £16,000 to UC fr)r Offi space in Uc's property at 19 Compton Terrace. During some church events, UCP operates the bar in the church building and passes the net profits to UC. (The definition of °net profits. for this purpose is t out in an agreement between UC and UCP.) UC received £2.863 from UCP under this arrangement. UCP also sells tickets for some church events on Uc's behalf. and passed £5.964 of ticket sale revenue to UC. UC paid UCP £3,210 for stsffing costs associated with church events. UC made a donation to UCP of £18.000. UC and UCP have agreed that Uc's donation to UCP each year will be the amount that UCP assesses would have been due rf UC and UCP had entered into a cost-sharing agreement covering: . the electricity and gas supplied to the thurch building; and insuran. which UCP procures collectively for itself. its subsidiary organisations. and UC. This does remain a donation. which strictly is made at Uc's discretion in accordan with the Management AgeMent, so UCP is not entitled to demand it. Until his retirement. Vaughan Jones was chair of UCM'S trustees. Following her appointment as Minister. Cathy Bird has become one of UCM'S trustees. but il is not anticipated that she will become UCM'S chair. (Another member of UC is now chair of UCM'S trustees.) UC paid UCM £4.192 to cover the purchase of kitthen equipment used for activities which were part of Uc's grant-funded work with asylum seekers. This was anticipated and included in the budget supporting the grant application. UC also paid UCM £425 for providing Sunday lunches on two occasions, and £600 for catering at a church event. 16 Legal status and members. liability UC is an unincorporated charitable trust. The original trust deed is dated 18 September 1889; it was amended in 2018 using Ihe power of modification conferred by seclion 280 of the Charities Acl 2011. 31
Union Chapel Trustees, Annual Report & Financial Statements 2024-25 The members have no financial liability in the event of UC being wound up.