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 TTust￿S........................................................
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 Str￿t
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 - CO￿ectlY 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 re￿1ve 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 ne￿Ssary. Managing
Trustees are ne￿sSarilY 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
con￿rn 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, adja￿nt 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 servI￿S 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 servI￿s.
. 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 v￿ekdaY 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 con￿M, especially matters of
racial, social, economic, and climate justi￿.
. perforMan￿S 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 a￿SSIbIlity 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 CO￿rdInation. 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 ServI￿S 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 pro￿sS, 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 CoMmen￿d 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 ServI￿S 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 ServI￿S were held during Ihe major festivals of the church: Advent, Christmas,
Lent. Easter. Pentecost.
. Other sep11￿S 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, pIpe￿￿rk. 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 Vol￿S (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 servI￿s.
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
COng￿gatIOnal 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 attend￿S 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, parti￿larlY in terms of the support of
refugees and asylum seekers.
Review existing policies and prO￿dureS 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 ex￿ptiOnal income together with other money
previously set aside for this purpose. The deficit therefore arose partly from that timing
difference, which had previously prodU￿d 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 eX￿edS 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 p￿vIsion 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 mIS￿lIaneoUS 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 di5￿M 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 prO￿edS 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 ex￿eded
expenditure and in that context the trustees did not consider it ne￿SSary to specify any
particular level of reserves which S￿uld 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 re￿ived 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 v￿S 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 servI￿s. 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
con￿rt. In the past these have not generally b￿n 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 cOnsequen￿s. 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 fa￿d 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 redU￿d 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 ac￿pIed 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 cOn￿1vablY 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 ne￿SSary 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 repUtat￿nal 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 A￿pted 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 cOn￿M 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 A￿pted 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 pu￿OSe. 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 b￿n 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 COn￿rn. and
. there are no SoUr￿S 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 sh￿t 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 re￿iVed 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 prO￿sS 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 S￿kerS 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 aCc￿rdan￿ 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 Ag￿eMent, 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.