Al-Sadaqah
Charity No. 1180175
Trustees' Report and Unaudited Accounts
For the year ended 31 March 2025
Contents
Trustees' Annual Report ............................................. Pages 2 to 3 Statement of Financial Activities .................................... Page 4 Balance Sheet ................................................................. Page 5 Notes to the Accounts ................................................... Pages 6 to 10 Detailed Statement of Financial Activities .................... Page 11
Trustees' Annual Report
The trustees present their report with the unaudited financial statements of the charity for the year ended 31 March 2025.
REFERENCE AND ADMINISTRATIVE DETAILS
Charity No. 1180175
Trustees The following trustees served during the year:
M.B. Afridi P. Haroon I.U.J. Rafique
Accountants
Meer & Co Chartered Accountants 1 Cochrane House Admirals Way Canary Wharf London E14 9UD
OBJECTIVES AND ACTIVITIES
The purpose of the charity as set out in its governing document is that the charity works towards the relief of poverty, the advancement of education and relief of sickness of people living in any part of the world but mainly Pakistan by the provision of financial assistance, food, medical supplies and equipment, care shelter, education, clean water and assistance into employment.
ACHIEVEMENTS AND PERFORMANCE
During the year we continued collecting funds for projects in Pakistan and supporting delivery of charitable activities including shelter, food and water wells for the poor and needy people.
FINANCIAL REVIEW
The principal source of funds are donations from individuals. The financial statements show incoming resources for the year and the charity is holding funds for its future projects.
For the year ended 31 March 2025, total donations were £29,869 (2024: £15,452) and total charitable expenditure was £27,368 (2024: £12,190), resulting in a net surplus of £2,501 (2024: £3,262).
The trustees have set a level equivalent to one month of operating costs for the organization as a desired level of reserve.
PLANS FOR FUTURE PERIODS
We are planning to provide shelter to disabled and needy people. We have also identified the areas where people do not have access to clean drinking water. There are also plans to provide food to struggling and disadvantaged families. We have plans in place of how we are going to work with local volunteers.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Al Sadaqah was registered as CIO foundation on 04th October 2018. The charity is operated under the rules of its constitution governed by the Charitable Incorporated Organizations regulations 2012. The responsibility for the strategic management of the charity rests solely with the Trustees, who are selected under the terms of the charity constitution.
The charity may by ordinary resolution appoint a person who is willing to act as trustee.
Statement of trustees' responsibilities in relation to the financial statements
The charity trustees are responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the charity's trustees
P. Haroon Trustee Date: 03/03/2026
Statement of Financial Activities
for the year ended 31 March 2025
| Unrestricted | Restricted | Total funds | Total funds | |
|---|---|---|---|---|
| funds | funds | 2025 | 2024 | |
| 2025 | 2025 | £ | £ | |
| £ | £ | |||
| Income and | 29,869 | – | 29,869 | 15,452 |
| endowments | ||||
| from: | ||||
| Donations and | ||||
| legacies | ||||
| Total | 29,869 | – | 29,869 | 15,452 |
| Expenditure on: | 27,368 | – | 27,368 | 12,190 |
| Charitable activities | ||||
| Total | 27,368 | – | 27,368 | 12,190 |
| Net | 2,501 | – | 2,501 | 3,262 |
| (expenditure)/income | ||||
| Net movement in | 2,501 | – | 2,501 | 3,262 |
| funds | ||||
| Reconciliation of | 4,050 | – | 4,050 | 788 |
| funds: | ||||
| Total funds brought | ||||
| forward | ||||
| Total funds carried | 6,551 | – | 6,551 | 4,050 |
| forward |
Balance Sheet
at 31 March 2025 Charity No. 1180175
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Current assets | 6,551 | 4,050 |
| Debtors | ||
| Net current assets | 6,551 | 4,050 |
| Total assets less current | 6,551 | 4,050 |
| liabilities | ||
| Net assets excluding | 6,551 | 4,050 |
| pension asset or liability | ||
| Total net assets | 6,551 | 4,050 |
| The funds of the charity | ||
| Restricted funds | – | – |
| Unrestricted funds | 6,551 | 4,050 |
| General funds | ||
| Reserves | ||
| Total funds | 6,551 | 4,050 |
Approved by the trustees on 03/03/2026. And signed on their behalf by:
P. Haroon Trustee Date: 03/03/2026
Notes to the Accounts
for the year ended 31 March 2025
1 Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Change in basis of accounting or to previous accounts
There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years.
Fund accounting
Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
Designated funds
These are unrestricted funds earmarked by the trustees for particular purposes.
Revaluation funds
These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values.
Restricted funds
These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
Income
Recognition of income
Income is included in the Statement of Financial Activities (SoFA) when the charity becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability.
Income with related expenditure
Where income has related expenditure the income and related expenditure is reported
gross in the SoFA.
Donations and legacies
Voluntary income received by way of grants, donations and gifts is included in the the SoFA when receivable and only when the Charity has unconditional entitlement to the income.
Tax reclaims on donations and gifts
Income from tax reclaims is included in the SoFA at the same time as the gift/donation to which it relates.
Donated services and facilities
These are only included in income (with an equivalent amount in expenditure) where the benefit to the Charity is reasonably quantifiable, measurable and material.
Volunteer help
The value of any volunteer help received is not included in the accounts.
Investment income
This is included in the accounts when receivable.
Gains/(losses) on revaluation of fixed assets
This includes any gain or loss resulting from revaluing investments to market value at the end of the year.
Gains/(losses) on investment assets
This includes any gain or loss on the sale of investments.
Expenditure Recognition of expenditure
Expenditure is recognised on an accruals basis. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Expenditure on raising funds
These comprise the costs associated with attracting voluntary income, fundraising trading costs and investment management costs.
Expenditure on charitable activities
These comprise the costs incurred by the Charity in the delivery of its activities and services in the furtherance of its objects, including the making of grants and governance costs.
Grants payable
All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid.
Governance costs
These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.
Other expenditure
These are support costs not allocated to a particular activity.
Taxation
The charity is exempt from tax on its charitable activities.
Freehold investment property
Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise.
Stocks
Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
Trade and other debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
Trade and other creditors
Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Research and development
Expenditure on research and development is written off in the year in which it is incurred.
Foreign currencies
Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period.
Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred.
All exchange differences are are taken into account in arriving at net income/expenditure.
Leased assets
Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.
Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases.
Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs.
Assets held under finance leases are depreciated in the same way as owned assets.
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.
Pension costs
The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.
Receipt of donated goods, facilities and services
All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity.
2 Statement of Financial Activities - prior year
| Unrestricted funds | Total funds | |
|---|---|---|
| 2024 | 2024 | |
| £ | £ | |
| Income and endowments | 15,452 | 15,452 |
| from: | ||
| Donations and legacies | ||
| Total | 15,452 | 15,452 |
| Expenditure on: | 12,190 | 12,190 |
| Charitable activities | ||
| Total | 12,190 | 12,190 |
| Net income | 3,262 | 3,262 |
| Net movement in funds | 3,262 | 3,262 |
| Total funds brought | 788 | 788 |
| forward | ||
| Total funds carried forward | 4,050 | 4,050 |
| 3 Income from donations and legacies |
||
| 2025 | 2024 | |
| £ | £ | |
| Donations and legacies | 29,869 | 15,452 |
| 4 Expenditure on charitable activities |
||
| 2025 | 2024 | |
| £ | £ | |
| Expenditure on charitable | 27,368 | 12,190 |
| activities | ||
| Governance costs | – | – |
5 Staff costs
No employee received emoluments in excess of £60,000.
| 6 Debtors |
||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| £ | £ | |||
| Other debtors | 6,551 | 4,050 | ||
| 7 Movement in funds |
||||
| At 1 April 2024 | Incoming | Resources | At 31 March | |
| £ | resources | expended | 2025 | |
| £ | £ | £ | ||
| Restricted | – | – | – | – |
| funds: | ||||
| Restricted | ||||
| income funds: | ||||
| Zakat | ||||
| Unrestricted | 4,050 | 29,869 | (27,368) | 6,551 |
| funds: | ||||
| General funds | ||||
| Total funds | 4,050 | 29,869 | (27,368) | 6,551 |
| Purposes and restrictions in relation | to the funds: | |||
| Restricted funds: | ||||
| Zakat | ||||
| 8 Analysis of net assets between funds |
||||
| Unrestricted funds | Total | |||
| £ | £ | |||
| Net current assets | 6,551 |
6,551 |
Detailed Statement of Financial Activities
for the year ended 31 March 2025
| Unrestricted | Restricted | Total funds | Total funds | |
|---|---|---|---|---|
| funds | funds | 2025 | 2024 | |
| 2025 | 2025 | £ | £ | |
| £ | £ | |||
| Income and | 29,869 | – | 29,869 | 15,452 |
| endowments | ||||
| from: | ||||
| Donations and | ||||
| legacies | ||||
| Total income | 29,869 | – | 29,869 | 15,452 |
| and | ||||
| endowments | ||||
| Expenditure on: | 27,368 | – | 27,368 | 12,190 |
| Charitable | ||||
| activities | ||||
| Total of | 27,368 | – | 27,368 | 12,190 |
| expenditure on | ||||
| charitable | ||||
| activities | ||||
| Total | 27,368 | – | 27,368 | 12,190 |
| expenditure | ||||
| Net movement | 2,501 | – | 2,501 | 3,262 |
| in funds | ||||
| Reconciliation | 4,050 | – | 4,050 | 788 |
| of funds: | ||||
| Total funds | ||||
| brought | ||||
| forward | ||||
| Total funds | 6,551 | – | 6,551 | 4,050 |
| carried forward |