# **Annual Report of the Baptist Union of Great Britain** 

2020 



## The Declaration of Principle **The basis of our Baptist Union is:** 

1. That our Lord and Saviour Jesus Christ, God manifest in the flesh, is the sole and absolute authority in all matters pertaining to faith and practice, as revealed in the Holy Scriptures, and that each Church has liberty, under the guidance of the Holy Spirit, to interpret and administer His laws. 

2. That Christian Baptism is the immersion in water into the Name of the Father, the Son, and the Holy Spirit, of those who have professed repentance towards God and faith in our Lord Jesus Christ who ‘died for our sins according to the Scriptures; was buried, and rose again the third day’. 

3. That it is the duty of every disciple to bear personal witness to the Gospel of Jesus Christ, and to take part in the evangelisation of the world. 

_Painting by Yinka Oyekan front image ‘Prodigal’ by Chris Duffett_ 

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Welcome to the 2020 Annual Report of the Baptist Union of Great Britain. We hope it will be a great encouragement to you as you read about all the varied work God is doing across our Baptist movement. 

|Objectives and Activities<br>Presidential refections<br>Refecting on 2020<br>Association Stories|p4-9<br>p10-11<br>p12-17<br>p18-25|
|---|---|
|Baptist Colleges|p26-29|
|Specialist Teams|p30-43|
|The Retired Baptist Ministers’|p44|
|Housing Organisation (RBMHO)||
|Financial Review|p45-51|
|Structure, Governance and Management|p52-59|
|Who We Are|p60-61|
|Independent Auditor’s Report|p62-63|
|Financial statements|p64-86|



The Trustees wish to put on record their thanks to the churches, Regional Associations and Colleges that make up Baptists Together and to the staff of the Specialist Teams based at Baptist House for all their generosity in supporting us to achieve our mission. 

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## Our objectives 

The principal object of the Union is the advancement of Christian faith and its practice, especially by the means of and in accordance with the principles of the Baptist denomination. 

Our Christian faith understands that we can come to know God in Jesus Christ, who is both human and divine and is the person in whom all that is lost and broken can be redeemed and who inspires his followers to work for a world that is a better place for all. 

Our Baptist principles mean that within the covenant relationship of Baptists Together we value the freedom of the local church to discern for itself its practices and policies within the broad scope of Baptist belief. We stress the importance of individual response in faith, and we understand that each Christian is to play their part in advancing Christian faith and witness. Because of our emphasis on personal faith and the freedom of the local church we are committed to religious freedom for people of all Christian traditions and other faiths. 

The Union’s overriding function is to provide encouragement, advice and support to member churches so that they too may maximise their ability to achieve their own charitable objective of making Jesus Christ known to particular individuals and to society in general. 

Baptists believe that each Christian has a duty to share their faith with the wider public and recognises that mission is not just evangelism, but also includes promoting justice, social welfare, healing, education, care of God’s creation and peace in the world. 

Throughout 2020 our Union continued to support its member churches, regional associations and colleges by providing grants, practical support, guidance and expertise and by representing its members in the public arena. Throughout this report further detail and information is to be found about specific initiatives in 2020 and how they relate to the overall strategy of our Union. 

_**Chris Duffett and Yinka Oyekan are Baptist ministers, with Chris being a former President of Baptists Together and Yinka our current President. Their paintings are used throughout this report. Visit www.chrisduffettart.com and www.howdowegrowfromhere.com to find out more.**_ 


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## Our Strategies to achieve success 

Whilst the objects of our Union continue much unchanged from year to year, the work of our Union to achieve these is reviewed periodically to ensure there is effective and appropriate provision and support for ministers of religion, other church leaders and the churches, regional associations and colleges. 

The ‘Futures Review’ undertaken in 2012 outlined the main strategic direction, objectives and values of the Union which continue to be implemented. The strategy of our Union arises from this and is encapsulated in the phrase: 

## ‘Growing healthy churches in relationship for God’s mission’ 

To do this, we believe that we must intentionally develop a Union that encourages and builds upon our relationships together as more than 1,900 member churches, 13 member Regional Associations and five member Colleges, ie Baptists Together. 

We continue to develop relationships with other Baptist organisations in the UK through the Fellowship of Baptists in Britain and Ireland, in Europe through the European Baptist Federation, and around the world through the Baptist World Alliance. 

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## We seek to deliver our vision through... 



Pioneering Voices in the & Planting Public Square Equipping Investing in Churches Godly for Mission Leadership 




_Painting by Yinka Oyekan_ 

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To achieve this vision, Baptists Together is committed to intentionally developing a culture where we... 

## **Seek to be a movement of Spirit-led communities** 

as those who have encountered the living Christ, to intentionally seek his will and purpose for our local churches and every expression of our shared life. (Galatians 5:22-25) 

## **Feel like one team** 

celebrating diversity; valuing, respecting and trusting each other as we work together in partnerships - making sure everyone feels included and listened to. (1 Corinthians 12:24b-27) 

## **Embrace adventure** 

being serious about discipleship, willing to take risks, pioneer and move out of the comfort zone of familiar ways of doing things. (Matthew 28:18-20) 

## **Inspire others** 

with a generosity of spirit, energise and motivate people to be all that God created them to be. (Ephesians 5:1-2) 

## **Share a hunger for God’s coming Kingdom** 

nurturing a ‘holy discontent’ that arises from our desire to give practical expression to our vision of God’s purpose for creation - confronting evil, injustice and hypocrisy and challenging worldly attitudes to power, wealth, status and security both within and beyond our Union. (Matthew 6:9-10) 

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## Areas of strategic focus 

**Whilst we continue to develop our four key areas (see page 6), we are working on these strategic priorities.** 

- Given the urgent need to pursue God’s mission in our UK context, we 

   - believe that we need to focus on our value: ‘ **Embrace adventure** : Being serious about discipleship, willing to take risks, pioneer and move out of the comfort zone of familiar ways of doing things (Matt 28:18-20)’. 

- To work through the remaining recommendations of the Ignite report into the future of ministry. **Developing leadership in all its forms** , together with a focus on equipping the whole body of Christ. 

- **Children, Young People and Families** – our CYF Round Table is offering leadership in this area. 

- A similar but separate focus on **Emerging Adults aged 18-35** – a group which is largely missing from our churches. 

- **Digital revolution** – not only our own digital capacity but reflecting on the implications of the digital revolution on mission, ministry and society. 

_‘Good Harvest’ by Chris Duffett_ 

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It goes without saying that 2020 was a year like no other.  Finding ourselves pitched into a global pandemic for much of the year has meant that we have experienced, and continue to experience, some huge challenges, together with some beautiful opportunities.  As I have watched, prayed and offered leadership over this past year, what I have witnessed most clearly is the maturity of Baptists Together as a Movement.  Maturity that has been lived out in our local churches, leaders and communities.  I read recently, ‘Maturity is not the absence of struggle, but the ability to struggle well; it is not the absence of pain, but the ability to know God in the midst of pain’. [1] 2020 has been a tough year, yet in the midst of the reality of all the demands we have faced, I am encouraged and inspired to see how we have been faithful in following Jesus through it all. 

The New Testament writer, James says, 

_‘Consider it a sheer gift, friends, when tests and challenges come at you from all sides. You know that under pressure, your faith-life is forced into the open and shows its true colours. So don’t try to get out of anything prematurely. Let it do its work so you become mature and well-developed, not deficient in any way.’_ James 1:2-4 ( _The Message_ ) 

So, I am seeing a Movement that is _**spiritually mature**_ and this has been expressed very clearly through our praying together.  I believe that when we look back on 2020 in years to come, our desire for prayer will stand out.  The 60 Baptists Together Prayer Broadcasts have been part of this outpouring of prayer, connecting us together across the nations as we have also been praying earnestly locally and regionally too. 

Our work together encouraging _**maturity in leaders**_ through Continuing Ministerial Development could not have been more timely, and I have been so encouraged to see the authenticity of our leaders as they have been growing in the vital work of attending to their own spiritual, emotional and physical needs as they seek to offer leadership to others. 

I have also seen a Movement that is _**maturing in relationships**_ ; realising our need for each other and the power of partnering together for the sake of the Gospel.  This has been expressed in so many ways across Baptists Together, but particularly in the advice, resources and inspiration that have been consistently offered through our website and the Baptists Together fund that was made available to support our churches as they faced financial uncertainty. 

_**Maturity in mission**_ has also been evident.  Right from the start of the pandemic, I gave thanks to God for all the investment in community relationships that so many of our leaders and churches have patiently nurtured over the years.  I saw how the relationships forged immediately provided open doors and clear channels for God’s love and blessing to flow where it was needed most.  We were able to ‘keep in step with the Holy Spirit’, even in the midst of huge upheaval and uncertainty because the relational ‘infrastructure’ was already there.  Individuals and communities have experienced Kingdom transformation.  Baptists Together have truly been Beacons of Hope wherever God has placed them! 

As our familiar patterns of ‘doing church’ have been so restricted, I have been inspired to see the _**resilience of maturity**_ revealed in the flexibility, creativity and innovation that has been continually applied to our mission.  Again, as our leaders and churches have been wise in perceiving what they CAN do, rather than what cannot be done, precious mission and ministry has been offered.  The stories that have been gathered together in this document reflect that brilliantly. 

As I reflect on 2020,  I recognise the massive challenges, demanding work and deep grief that we have experienced.  Yet, at the same time, what I see is the unique beauty and preciousness of our Baptist Movement.  We are big enough to be able to offer strong support to each other through the storm, but we are also small enough, connected enough and Baptist enough, to be agile, flexible and creative!  We have proven that we are able to be blown along by the wind of the Spirit even in the thick of the storm that has surrounded us as, together, we grow healthy churches in relationship for God’s mission.  I am honoured to be able to continue to offer spiritual leadership to a mature Movement like this. 

_Lynn Green, General Secretary Baptists Together_ 

[1] Helena Wilkinson interviewing Tom Varney in _The Christian Counsellor_ Vol 2, No. 3, summer 1992, p13 

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## Ken Benjamin - President 2019-20 

I started my time as President with a simple prayer. I’ve ended with an ongoing burden. Our God does that with our prayers, doesn’t he? 

My prayer and theme were the same words: **‘Where do we grow from here?’** We invited churches, associations and colleges to join in – taking an honest look at the words in that question. Prayerfully asking: ‘where’s ‘ **here** ’?’ ‘What do we really mean by ‘ **grow** ’?’ ‘How wide’s my view of ‘ **we** ’?’ And finally, looking for **where** we might see growth. 

In the light of Covid, it’s interesting to look back on the core themes of missional communities and whole-life discipleship that emerged. 

Two key messages were consistently repeated: 


The times we live in call for churches to think beyond our existing patterns and programmes in creative ways. 


And that: 

We’ll never get anywhere until we equip our people for their everywhere. 

Both have a new resonance in the pandemic. We’ve been forced to think totally outside of the box. And crucially, those who emphasise equipping people for their everyday frontlines have been best placed to weather this storm. Our mission should never be confined to our buildings. When we equip people to join God at work in their daily lives, we see him do amazing things through them. 

It was a privilege to travel across England, Wales (and the Isle of Man!) and an honour to represent our denomination at key events. Travelling with my wife Sue, we visited over 70 locations (including during the Vice-President year) with approximately 150 speaking opportunities across all 13 associations, connecting with hundreds of our churches. 

But it’s never really about the numbers, is it? We spent time with brilliant ministers and leaders and congregations, who were humbly serving and willing to explore and experiment.So often we found ourselves encouraging them to do less rather than more, because in doing less we might achieve more. So often the wrong things shout for our attention. Our to-do list screams; the call to whole-life disciplemaking is often a whisper. 

That’s why I now find myself with a burden for whole-life discipleship beyond the church I’ve served for 24 years. 

At the end of the presidential year, I joined the London Institute for Contemporary Christianity (LICC) as Director of Church Relationships. That’s meant moving on from Chichester Baptist Church, who’ve so positively supported me during my time as President (and all the years before that!) 

I hope and pray I can continue this story with as many of you as possible – particularly as we equip whole-life disciples for their everywhere. 

_‘Dancing Golden Wheat’ by Chris Duffett._ 

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## Yinka Oyekan - President 2020-21 


It has been an extraordinary privilege serving as your President in what have been extraordinary times. I stood on the platform of evangelism which I believe is an essential part of our mission in our endeavour to connect with a hurting world. 

World events left me having to represent our Baptist family in spaces I had not previously attempted to occupy. I found myself speaking to Shadow Government ministers and others working in Government about issues around Black Lives Matter and injustice; nevertheless, I stayed focused on my commitment and the priority of training those who signed up in how to engage in evangelism, but we had to change how we delivered this support. 

What made training deliverable was that we refocused our support to monthly online Zoom coaching sessions. These sessions covered how to start an Art community (Jenny Whitfield); Healing ministry (Alastair Mitchell-Baker); Family evangelistic outreach (Gareth and Rachel Owen);  new group or church Pioneering (Yinka Oyekan);  Social Action group, all with packs provided, and last but not least Millennials (Mark Hirst). 

We had 69 churches signing up covering 14 areas of the country. It was also a blessing to have three regional team leaders join us for some of the sessions. In July 2021, we are still planning on supporting a gathering of millennials, so watch out for the precise dates. I  wish to express huge thanks to the teams that helped with the delivery of these programmes. 

I plan as a follow-through, between 21-22 October, to offer evangelistic evenings for clusters once lockdown ends; we have 29 signed up so far. You can still sign up for one of these evangelistic evenings with me at www.howdowegrowfromhere.com. We will also look at re-running the programme post-lockdown for churches. 


## _**Art**_ 

_“I have had words spoken over me prophetically in the past that have finally come to pass during this course and God really speaking deeply about things that he wants to do in terms of art and evangelism and prophetic release of creative worship in our church.” Nicki Walker-Williams, Gold Hill Baptist Church and Hope Community Church, Chalfont St Giles, Bucks_ 

## _**Healing**_ 

_“The podcasts were very helpful, informative, exciting, interesting, and if you’re not sure about healing ministry, I would really recommend that you watch those” Janet Nock – Highgate Baptist Church, Birmingham_ 

## _**Family**_ 

_“Rachel, Gareth and Yinka were directing things, chucking in pearls of wisdom, and chucking in a few hand grenades which would stretch our thinking a bit more… our vision, our belief, our confidence was enlightened and enlarged as part of the conversation.” Jason Borlase – Kidderminster Baptist Church, Worcestershire_ 

## _**Pioneering**_ 

_“It’s been a real privilege to put in to action some of the things that we’ve heard from these Tuesday pioneer sessions and to journey with a group of people; to shape kingdom culture into these small groups” Dave Barker – Cheriton Baptist Church, Kent_ 

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## Baptists adapting to Coronavirus 

2020 was a year like no other - who could have imagined what it would hold back in January? The pressure on our ministers and leaders has been enormous as they have continued to offer leadership and pastoral care amidst huge restrictions on social contact, financial concerns, as well as their own family responsibilities. And yet, despite the difficulties that the Coronavirus has brought to us all, we have been so encouraged by the ways in which God has been at work in our churches during the year. It’s been inspiring to see such creativity and innovation in their ministry and mission as they have continued to serve God, one another and their community. 

As we began to find ourselves caught up in a global pandemic in early March, we issued a call to prayer which had over 12,000 views on our website. This was followed, on 17 March, by the first of our national online prayer broadcasts in which our General Secretary was joined by other members of the Baptist family leading us in prayer. These broadcasts continued on a regular basis - with 58 Prayer Broadcasts taking place through the year. In addition, we have shared prayers and reflections which were contributed by a range of voices from across our Associations and churches, and have continued to encourage our churches to persevere in prayer. 



Whilst church buildings were forced to close, our churches have been very much alive across the country. We have heard stories of ministers and church members learning and sharing new skills in technology, enabling worship services to move online. Church WhatsApp groups have been set up to help members feel connected, and these have allowed prayer requests and messages of encouragement to be shared during times of loneliness and anxiety. Pastoral teams have kept in regular contact with older members of their congregations by phone or safe doorstep visits, with deeper conversations emerging and requests for prayer being made. 

Some church buildings have remained open in order to meet the needs of the most vulnerable in their community, adapting their procedures to keep everyone safe. This has enabled, for example, many foodbanks to continue to support the increasing number of people finding it impossible to make ends meet as jobs have been lost, and people taken ill. Church members have worked alongside other community groups in demonstrating extraordinary acts of kindness as they have shared time and resources with those in need. 

**90000** views of our ‘Coronavirus Essential advice for churches’ section 

_Image: Gerallt, pixabay.com_ 

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_‘Is there a need to focus less on our Sunday gatherings and instead invest more intentionally in disciples making disciples? Yes, even amongst children and young people!’_ 

_Jodie Thorpe – Children Youth and Families Enabler with the Yorkshire Baptist Association_ 

## **55000** 

views of our Guidance on re-opening church buildings’ – revised 31 times before the end of the year 

**40000** views of our ‘Guidance on church worship’ – first published on 30 June and revised 26 times before the end of the year 

_‘Thank God for the technology that we have today to post messages of hope and comfort to combat the fear that is out there with the love, comfort and peace of a loving Saviour Jesus’_ 

_Cathy Buntin - minister of Laird Street Baptist Church, Birkenhead_ 

_‘God has been challenging and changing us. We’ve not been able to meet physically, but God is still calling us to be church. There has been lots of support and encouragement about God’s people who love each other. We are opening our mindset as a people who love Jesus. We are hoping this will continue.’_ 

_Denzil Larbi – associate minister of Selsdon Baptist Church_ 

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Recognising that some of our member churches and other Baptist organisations would be placed under significant financial strain, the BUGB trustees designated £1m from reserves to a Coronavirus fund to respond to any needs that might arise. 

A financial support scheme was put together for member churches which distributed £172k to 23 churches over the course of 2020 and continues to operate into 2021. The Baptist Union Corporation also supported the scheme by waiving £52k in interest on loans for projects delayed by the pandemic and postponing £286k in scheduled repayments. The usual £1,500 limit on grants from the Pastoral Fund was also increased to £5,000 to assist those who suffered significant financial hardship due to the pandemic, and £50k in Coronavirus-related pastoral grants was distributed in 2020.  The Union Trustees also recognised a responsibility to the wider Baptist family by making a gift of £50k to the European Baptist Aid Coronavirus appeal. 

**11000** views of our ‘Time to reflect’ area 

_‘Online worship has fulfilled a long hoped for dream. More disabled people have accessed church fully for the first time. Many are using their gifts for the first time and are shaping worship for everyone else.’_ 


_‘As chaplains we have been trying to help support staff along with other services in the hospitals. I have been asked to pray with ward staff, lead mindfulness sessions and attend ward ‘huddles’ where staff can talk about their feelings and wellbeing. When the immediate pressure lifts there will be a need for lots of formal and informal support - and we will play our part then, too.’_ 

_Mark Burleigh - Head of Chaplaincy & Bereavement Services, University Hospitals of Leicester_ 

_Glen Graham – minister of Cullompton Baptist Church and Chair of Churches for All_ 

_Image: Gerallt, pixabay.com_ 

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Throughout 2020 each of the Specialist Teams has kept a close eye on Government updates in order to provide up-to-date guidance for our churches when we went into lockdown, as they prepared to re-open, and then faced lockdown again. From practical guidance for churches navigating the Government’s furlough scheme to webinars helping churches live-stream a worship service, our website has been a key resource for churches.  By the end of March 2020 we had created a whole new area of the website with resources related to Coronavirus – not only offering practical advice, but also acknowledging the need to take time to listen and reflect on what God was saying to us through the pandemic. This included ideas for Easter services, helpful material for children, young people and families, as well as missional ideas and resources. As guidance was updated to reflect the latest Government regulations, we publicised the changes on our website and through our social media channels. 


During the first four months of the pandemic we offered 16 webinars on Covid topics. These included considering leadership in a time of crisis, managing stress and anxiety, support for church treasurers, and evangelism off the streets. These invaluable resources are now available to watch in the webinar section of our Resource Library. 


Recognising the need to make space in our lives and to listen to God, we hosted two online Quiet Days, led by Regional ministers Geoff Colmer and Beth Powney. Whilst not everyone was able to join in live, over a thousand others were able to take part by watching the recordings on our YouTube channel. In the autumn, we also commissioned a series of 16 Listening to God videos which were made in partnership between the Faith and Society Team, Mission Forum and The Fuelcast. In these videos, a variety of Baptists shared their reflections on what God had been saying to them during 2020. 


In response to the pandemic and its effects on our churches, the Autumn 2020 and Spring 2021 editions of our _Baptists Together_ magazine focused on listening to God and one another.  Their aim was to capture some of the stories and reflections from around our Union in an attempt to help our understanding and prepare us for what lies ahead.  The _Baptist Times_ has also been a place to share church stories and reflections throughout the pandemic. It’s perhaps significant that the two most clicked pieces in 2020 reflected the pressures of the year (Why is it SO challenging to live through this pandemic? and Caring for your pastors through Covid-19). 

Of course we are very aware of the struggle that 2020 has been for so many people in churches and communities, not just in the UK but around the world, and we continue to cry out to God for an end to the pandemic. 

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Journeying to justice 

‘Sharing a hunger for God’s coming kingdom’ is one of our five culture values. It asserts that we seek to ‘nurture a ‘holy discontent’ that arises from our desire to give practical expression to our vision of God’s purpose for creation – confronting evil, injustice and hypocrisy... both within and beyond our Union.’ The events of 2020 showed both progress made in this regard - and what more needs to be done. 

The murder of George Floyd in May was a pivotal moment in the year. The ensuing protests expressing anger and longing for change catapulted race onto the public agenda in an unprecedented way. 

_‘For the first time in my life, white people have had little choice but to listen,’ wrote Wale Hudson-Roberts, Justice Enabler of the Baptist Union of Great Britain. ‘George Floyd’s death has effected a global exposure of just how black people feel about the discrimination they habitually experience in a way I’ve not witnessed before.’_ 

To help better understand the discrimination we hosted several webinars in the summer, some alongside Churches Together in Britain and Ireland. The Hostile Environment, the Grenfell fire tragedy, the Windrush scandal and the shameful treatment of Black Britons were among the examples of racial injustice highlighted. We encouraged people to deepen their knowledge and understanding of the issues with an exhaustive reading list. 

As the year progressed the Racial Justice Group co-ordinated a series of blogs. Published throughout Black History Month in October and beyond, the blogs were authored by writers from different perspectives. 

They tackled uncomfortable areas such as white privilege and leadership diversity in the local church, and offered several challenges to our whole movement. One pertinent question was: ‘What will happen next now that most of the furore has passed?’ Underlying that question was the challenge – will anything really change? 


Several other notable things happened in 2020. 

In the immediate aftermath of George Floyd’s murder, Baptist ministers co-ordinated a short film in solidarity with the struggle. The film opened with Black ministers saying “I can’t breathe”. These clips were followed by white ministers replying “I can’t breathe until you can.” None of us are fully free until everyone is, the film underlined. 

Many Baptists issued statements condemning the murder, including General Secretary Lynn Green, President Yinka Oyekan, the Core Leadership Team, along with several Associations and Colleges. 

Ministers formed the Anti-Racism Reflective Action group to help Baptists set aside time to reflect with God and others about racial bias and how that is reflected in our ministry and mission. Regional ministers and Baptist college tutors were also part of the group. A petition from ministers also precipitated an inclusion in the Ministerial Recognition rules challenging racial injustice. 

Wale has reported increased contact from churches in the wake of the Racial Justice blogs – people looking for help and support as they seek to deepen commitment to the 

_Image: Munshots, unsplash.com_ 

**16** 



issue in their churches. The Baptist-led youth organisation Hebe Foundation had a similar response during the summer, while demand for our Just Aware resource, an intersectional conversation with Baptists Together around race, gender and disability, also increased. 

President Yinka Oyekan has campaigned for racial justice. ‘You can’t turn a blind eye to injustice, you have to do something about it’, he explained in a _Baptists Together_ magazine interview. He mobilised our movement to sign a petition calling on the Government to implement the recommendations of several reviews into the treatment of people of colour in our nation; a call backed by the Core Leadership Team. Regionally there was a growth in the number of Association Justice Hubs now in operation and stepping up their work. 

Justice issues were at the heart of the Baptist Union Council in October. At that meeting Diane Watts, the Faith and Society Team Leader, said there was a sense that the killing of George Floyd had served as “a catalyst to bring many justice issues to the fore”. In small group and plenary sessions council members expressed a sense of pain alongside a desire to do something about the injustices they encountered in their contexts. They subsequently approved six measures that seek to embed justice concerns at the heart of our movement. A call to work towards more direct leadership across our structures was also made. 

Our work among a range of justice concerns and towards building inclusive communities continued in 2020, and was, we hope, strengthened by the commitment expressed by Council. In December Trustees agreed to seed fund theological action research on women in ministry in conjunction with Regent’s Park College. The research will move towards deeper cultural shifts for Baptists Together and shape the next phase of Jane Day’s role. Jane began the role of Centenary Development Enabler in 2019 to offer sustained input to make progress and overcome barriers towards greater equality in ministry in Baptist life. Challenges still exist for present day Baptist women, and in 2020 we heard of painful stories, the silencing of women’s voices, sexism and outright rejection because of gender. ‘This is not acceptable and a great cause for lament’, wrote Jane. 

The year began with an edition of _Baptists Together_ magazine focused on marginalisation in our churches, entitled ‘All are welcome here’. Our Disability Justice Group had a major role in shaping the edition. The Group exists to encourage our churches and members to value people of all abilities equally. Regional representatives link between the national and the local, with the goal of at least one representative for each region. By the end of the year five regions were covered. 

Our input and commitment to highlighting the needs and concerns of the most marginalised continued through our involvement in the Joint Public Issues Team. A key campaign in 2020 was ‘Reset the Debt’ to address the growing household debt crisis caused by Covid-19. Other justice developments in 2020 included the launch of the Baptist Union Environment Network, which connects Baptists with a passion for the environment and climate change; while a new Listening area of the website offered a space and encouragement to genuinely listen to each other on areas of our shared life where there may be pain and disagreement. 

A long way still to go, then, but the journey to justice continues. 

**17** 



## Regional Associations 

The main work of Baptists Together in supporting churches continues to be through our 13 regional associations. These are separately constituted charities, but receive a substantial part of their income from the Home Mission Fund administered by the Union. Total funding for associations from the Home Mission Fund in 2020 totalled £2.94m (2019: £3.14m). 

Each regional association has a small team of Regional Ministers and administrative staff, who support the churches in their area pastorally, assist in the settlement of minsters, advise on mission and practical matters, and organise training events. 

South Wales Baptist Association 

The regional associations are also responsible for administering Home Mission grants to churches and other organisations to support development of Baptist mission and ministry where it would not otherwise be financially viable. This includes pioneering mission, church planting, renewing local churches and other mission project grants. 

The following pages provide some examples of the work of regional associations and the churches they support on behalf of Baptists Together. 

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_Painting by Yinka Oyekan_ 




**----- Start of picture text -----**<br>
South Wales<br>Baptist Association<br>**----- End of picture text -----**<br>


## ’It has been a faith stretching decision’ 


The Millfield Community Fridge, part of the ministry of Open Door Baptist Church in Peterborough, has been in operation for over two years. During this time they have built up good relationships with local retailers, and served 60 people per day, three times a week. 

When lockdown was announced in March 2020, minister Carol Knight’s first reaction was ‘Lockdown = shutdown’. But as the church saw other providers close in Peterborough they asked themselves who was going to feed those in food poverty? Those workers on zero hours contracts who fell through the cracks and families waiting for Universal Credit to arrive. 


Although many of their regular volunteers needed to self-isolate and the church wondered how they would cope, they recognised the need and decided to stay open. Praying each day for ‘our daily bread’ took on a new perspective as they trusted God to provide for the 100 or more people who were queuing at a safe distance. New volunteers who all lived within a few minutes’ walk of the church materialised, food has turned up from unexpected sources, and the church has received a few financial grants. For such a time as this, the Millfield Community Fridge is feeding the hungry – from a table outside the church hall. 

**19** 



## Deepening relationships in lockdown 

Shirley Warren Action Church has developed deeper community connections by meeting local needs during the coronavirus crisis – and a Baptist Union grant has played a part. The Baptist church’s building is a key community gathering point in the Shirley Warren area of Southampton. Lots of groups meet there in addition to the church’s numerous activities, which include a daily community café and a Friday lunch club. Like many with much-used buildings, the church experienced a sudden loss in revenue as a result of the lockdown. It made use of our Baptist Union’s coronavirus financial support scheme. 

“We are a key community building in Shirley Warren and have lost a lot of income”, explains minister Jenny Elliott. “So some of the grant is towards general costs, keeping the building running. 

“Some of the grant has helped our community work, and we have been very grateful for it.” 

Jenny explained that when lockdown happened, the church created a new contacts list based on these connections and its own membership. It contacted everybody on the list, asking them what kind of support they needed at that point. Many responded. 



“We have definitely stepped up connections with members of the community”, says Jenny. 



## Young Adults 

“This is a city full of young adults and we want to really invest in them, both within the local church context and to release them into the wider church family. As an Association, we want to learn from young adults, to listen to their voices, so that they are helping shape what we do.” 



So says Pete Herbert-James, the Children, Youth and Young Adults Lead at London Baptists. Pete, alongside Regional Minister Lee Johnson, created and led a new internship programme, the London Baptists’ Leadership Year. The programme has four key elements: theological and ministry training; leadership development training; placement in a local church three days a week, along with a regional element; and mentoring. In 2020 Nosa Idehen, Matt Reeves, and Robert Glendenning (pictured) were the first group of young adults to complete the programme. 

Lee says, “It’s been great to have them in the Association and get some great input on all sorts of things. They’ve been able to get involved with all sorts of levels of leadership in the church. We seem to be getting very positive feedback from the churches and the interns themselves, so it’s been a great experience for them and us.” 

The journey continues in 2020-2021, with Archie Catchpole, Femi Onanuga and Josh Amos joining the London Baptists’ Leadership Year. 

**20** 



King’s Corner, Biggleswade Baptist Church 



Founded in 1771, Biggleswade Baptist Church has a long, established presence in the historic Bedfordshire market town of Biggleswade. Over the years it has adapted to the needs of the town in different ways, and today is no different as it has explored how to reach out to the ‘King’s Reach’ estate, a new growing community that will eventually comprise 2000 new households. 

Much time was given to prayer and discernment, and a vision of a permanent place in the estate emerged, a shared space with others that would support the community and other local services; a space where friendships and relationships could develop without the expectation for someone to come to a ‘church service.’ 

The church enquired about an empty retail space in September 2019, and ‘King’s Corner’, a community hub from the church on the corner of the central square in the estate, opened in February 2020. Relationships already established in the community beforehand were vital in the lead up to the opening of the hub, and it was of ‘enormous encouragement’ to the church to see the interest and reception from the local community. 

For the full story, see baptist.org.uk/biggleswade 



## Seaton Baptist Church 

The vision of a Devon church, released in part by a Home Mission grant at the start of 2020, led to the explosion of a brand new missional adventure over the weeks of lockdown. 

Ben Tucker is the minister of Seaton Baptist Church. Because of Home Mission, Ben had been able to increase the number of days he gave to the church from three to four. This extra time enabled the church to pursue a health and well-being project called Restored. Through Restored Ben had been asked to co-ordinate a new project to help make Seaton more mentalhealth aware - just weeks before coronavirus hit. 

When that happened this new group were subsequently contacted by the Mayor asking how they might support Seaton during this time, particularly the isolated, lonely and vulnerable. 

Ben suggested creating a network of volunteers, and putting cards into each house with a phone number to call and email address to contact if anyone needed anything. 

Very quickly they were able to set up 11 co-ordinators and 160 volunteers across Seaton, with every road covered. 

“What grew naturally was this real care and love for the neighbour,” Ben explains. 

_All photos belong to each respective church, individual or organisation Painting by Yinka Oyekan_ 

“We facilitated friendship and it was incredible to witness.” 

**21** 



## Do not be afraid 


‘Do not be afraid’ are words heard several times in the Christmas story, but they are also the title of an amazing song written Kevin Whitehouse, part of the congregation of Shirley Baptist Church, Solihull, shortly before he died in July 2018. Kev, as he was known to many, was a person of deep faith, full of gentleness and kindness, as well as being a very gifted musician. 

Kev wrote the song whilst grappling with a terminal illness and, although written primarily as a children’s song, it has the ability to encourage all generations with the hope of Jesus. Kev’s good friend Mike finished the song so it could be played for the first time at his funeral.  Since then this powerful song has been used from time to time at his church and they have created a recording to use in their online worship. 


During this pandemic God is saying to us again ‘Do not be afraid’, and so the prayer of Kev’s family and the musicians who recorded the song is that it should be a blessing to others. You can watch the video at https:// youtu.be/-AoMo76p62s or via this QR code 





## “A gift of love to the community” 

As the minister of Trinity Church in Rawdon, Leeds, Helen Lambert normally conducts around four to five funerals a year. 2020 has proved to be very different 

At the start of the first lockdown Helen sensed a clear call to offer to lead a short service for the sadly growing number of people dying at that time. Coffins for any deaths relating to Covid-19 were simply brought into Harrogate crematorium with neither service nor mourners. 


She led short services most days throughout April, with each featuring a time for prayer, scripture and a committal. The services were filmed and sent to each family. She offered to do this free of charge, as “a gift of love to the community”, so strongly did she sense God’s call. 

“It was so painful that somebody could be taken into the crematorium with no words, no prayer, no nothing,” Helen says. “And their family had seen their loved ones go into hospital – and never seen them again. They couldn’t say goodbye. It was just awful to see so much pain. By me doing that, they had some sense of a service for that person.” 

**22** 



The Maker’s Place and the Friday Night Art Club 



The Vine Church in Eye is a small Baptist church making worldwide connections thanks to its online arts group, Friday Night Art Club, which began in June 2020. It all began with the creation of an arts based missional community called The Maker’s Place. 

Starting in Summer 2019, the vision for The Maker’s Place was to have an informal group, focussed on art and the Christian faith - a place to explore different art forms, discover God and make friends. As Christmas approached, the group felt called to do something ‘public’ and contacted local shops, the town council and library about creating an enormous Jesse Tree art trail in shop windows around the town. Artists from The Maker’s Place each chose a Bible story and made a visual display of it, alongside which they shared something about what the story meant to them.  People were invited to join in and maps of the trail were available to help them learn about God’s salvation plan in the Bible and its relevance today. 

As lockdown began in 2020, Friday Night Art Club emerged as an online art group to chat, pray, study the Bible, and work individually on a creative response to the Scripture. This has now grown to a community of 30 members from all across the world, who took part in an online Global Jesse Tree Project. They have seen those initially shy about their artistic skill flourish with very creative ideas to express their response to the Bible passages. 



## Facebook Live with Gerald the puppet 

Parents and toddlers in St Asaph flocked to their screens to stay in touch with the puppet Gerald. Gerald was already well-known to ‘Stay and Play’ weekly toddler group at Llanelwy Community Church, as he regularly helped with the short Bible story or Christian-themed message. 

But during the periods of social restrictions in 2020 his popularity increased, as the team behind the group continued to offer Gerald at the same weekly time on Facebook Live. At its peak there were 25 families with people making comments, answering quiz questions, sending in requests for songs and joining in from home. The children sent in photos of things they had made in response to craft ideas from the previous week, and Gerald and his helper congratulated them. It was also an opportunity to chat and interact for parents, with the children enjoying the familiarity and connection too. 

_All photos belong to each respective church, individual or organisation, Painting by Yinka Oyekan_ 

“I admit to being surprised to hear how well it was working!” says minister John Thompson. “It was wonderful to see God is at work at the missional fringes of church as well as through online services and home groups. Perhaps at a time when they are more open to thinking about God, who knows what God might do?” 

**23** 



## “We can’t press pause on the Great Commission during the Covid-19 pandemic” 

“People have always asked big questions about God, life, the universe, and everything. Too often we try and ignore them. But the Covid-19 pandemic, when death and fear stalk us and life is turned upside down, simply makes it harder to avoid asking those”, says Nick Megoran, Minister of Wallsend Baptist Church. 

So the church offered _Big Questions During the Pandemic_ online discussion group in Tyneside in April and May. Each of its five hour-long sessions looks at an apologetics question such as the existence of God, the meaning and purpose of life, making sense of suffering, and life after death.  Alongside a 20-minute pre-recorded talk to watch together, there is guidance on leading a discussion. The talks are accessible and illustrated with examples from film, books, music and real-life stories. 

“People are open as never before”, says Nick. “We should seize this opportunity to share the gospel in new ways. We can’t press pause on the Great Commission during the Covid-19 pandemic.” 

_Big Questions_ is available from the church website, with pre-recorded talks, and guidance on how to set up, promote and run a course. See wallsendbaptistchurch.org.uk/big-questions 






## Fishponds Baptist Church 

Fishponds Baptist Church is a vibrant church engaged in a range of projects across Fishponds and the City of Bristol. They’re home to a Foodbank and two homes for those vulnerable to homelessness which they run in partnership with the national Christian charity Hope into Action. 

God has been doing incredible things in Fishponds recently, bringing people with challenging backgrounds, including homelessness, drug addiction and spiritual oppression, into community, freedom and faith - even in these difficult times. 


Four people were baptised there in the autumn, following four unique encounters with Jesus, which led each one to put their faith in him. As you can imagine, this has been a real encouragement to the church as they’ve had the joy of welcoming these newcomers into the church, to see them regularly engage and to bear witness to the difference Jesus has been making in their lives already. 

**24** 



## Multi-Congregational Church 


South Wales Baptist Association 

Two years ago Dinas Powys Baptist Church started to make intentional moves to look outward into their communities and gradually started to see a few people come to faith. Naturally they looked to disciple these new Christians but soon realised that their normal way of discipling people through Sunday morning services or traditional house groups would not work. 

Instead a more radical change was required, which led to those from within the church meeting and discipling the new believers in their own settings, with the attitude that minister Jonathan Davis described as, “we’ve gone and done mission where these people are, so we’ll go and do discipleship where they are”. 

From this a multiplication began to happen as these new Christians went on to create further groups themselves, often identified by friendships or a certain commonality.  They meet to pray, read the Bible and essentially ‘do discipleship’ and, as Jon describes, “they are just as much an expression of church as what happens in Dinas Powys on a Sunday morning”. 

The structures of the church have been challenged and reshaped into what could now be described as a multi-congregational church endeavouring to see where the Spirit of God is already moving and join in where God is already present. 


## The Bread of Life 

John Western was appointed by the South Eastern Baptist Association as a pioneering minister in the Medway town of Strood in Kent in April 2020.  It’s a largely unchurched area, ideally suited for mission. Using his particular passion for baking, John is preparing to open a coffee shop and bakery, along with offering cooking classes, with the aim of seeing a worshipping community develop. 


_All photos belong to each respective church, individual or organisation Painting by Yinka Oyekan_ 

In preparation for this, John has developed _The Bread of Life_ – a six session course teaching bread-making skills which also opens up opportunities to speak about Jesus, the Bread of Life.  He has found it to be a fun and relaxed way to share faith, and during the Lockdown has been able to offer it as an online course. 

John is project managing the development of the shop, hoping to open in 2021 with a micro bakery making artisan loaves to order.  Whilst there are some legal obstacles to overcome before the building work can commence, John senses that God is in this and has affirmed the project through the provision of grant funding. Meanwhile, John has been building relationships with local people which he hopes will enable him to find volunteers to talk to customers and wait on tables once ready to launch. 

This is an example of integral mission – it will be church for people to find faith and grow in it. John is praying for a movement of the Holy Spirit to enable this missional adventure to flourish and become self-sustaining. 

**25** 



## Baptist Colleges 

Our Baptist colleges share their highlights from 2020 


2020 was a challenging year.  By the grace of our sovereign Lord, the whole College community, of staff and students, rose to the enormous challenges they faced.  The professionalism of the staff and the dedication of the whole student body was wonderful to watch. 

Many will know that the College took the decision to seek its own Degree Awarding Powers (DAPs).  In October 2020 we applied for Full DAPs.  After passing through the first two phases, the College has now entered the visits and observation phase, which is conducted by the Quality Assurance Agency (QAA). This is a detailed and demanding examination.  If the College is successful, Degree Awarding Powers will give it a significant degree of institutional and academic independence.  Please pray for the College as it goes through this examination. 

The College’s significant investment in IT infrastructure and cutting edge technology enabled it to respond instantly and professionally when we had to deliver our courses digitally.  We are using the same software system used by 22 out of the top 25 universities in the world.  Our partnership with BMS deepens and we are exploring exciting opportunities to equip Christian leaders in conjunction with international partners.  In December we signed an agreement with Liverpool Hope University to validate two new Master’s Degrees: a Master of Ministry Degree and a Master of Arts Degree in Digital Theology.  These are exciting additions to our range of Masters’ courses. 


In July and August the College held a virtual public consultation on its redevelopment plans. You can see some of the details at https://www. spurgeons.ac.uk/virtual-consultation 

This is an enormous project and part of a larger strategic plan for the College to place the College on a more solid financial footing and fit it for the demands of the 21st century. 


_‘One of great value’ by Chris Duffett, photos belong to each respective Baptist College_ 

**26** 




Like all the other Baptist colleges, Covid has forced us to move online this year – but as the vast majority of our students are part-time, this has been a blessing in disguise. It has meant that we have been able to reinforce our sense of community with daily Zoom prayer meetings and fortnightly pastoral support. The shift to a flipped classroom (an approach which encourages students to engage with lecture material outside contact hours, so that face to face time can be spent more creatively and usefully) has also enabled us to provide a wider variety of resources for students to engage with before we come together once a month for ‘face to face’ interaction over Zoom. 

We have had other significant changes this year too. Our student body continues to grow and so we have appreciated the support of associate tutors. After 14 years of faithful service our College Manager Martyn Moss retired, and has been replaced by the formidable team of Helen Ede, who is the new College Manager, and Rob ap Whitehouse who is our site manager. Our Pathways course for training local church leaders also continues to grow, and we have started the process of making our college library open to a far wider audience – not just students, but also ministers. As occupancy of our site has changed, we are looking into redeveloping part of it in order to generate some more income for the College, and we are in the process of renewing our partnership with Cardiff University to develop a Centre for Theology and Christian Practice. 

Last, but not least, we are in the process of changing our name so that the acronym works in both Welsh and English. So, we anticipate that next year’s report will come from Cardiff Baptist College – Coleg y Bedyddywr Caerdydd, CBC! 


Regent’s Park College continues to thrive as a diverse community, a member of Baptists Together and part of Oxford University, with a range of other undergraduate, postgraduate and visiting students alongside our ministerial cohort. The intake of ministerial students in 2019 was one of the largest groups in recent years and has brought added life to the whole group. In response to both the changing culture and the changing needs of ministry, the College continues to develop new and flexible approaches to ministerial formation. 


This last year we launched both a new pathway for those who already come with significant theological study and also a new partnership with the CMS Pioneer Mission Leadership Training to create an integrated route for those who sense a call to pioneer mission and ministry. We were also delighted to relaunch our Centre for Baptist Studies with the appointment of Chris Joynes as Director and look forward to the ways this will encourage and showcase a wide range of Baptist scholarship. We continue to deepen partnerships with the Associations close to us and have been exploring how the Community Learning part of College life, where we engage with and offer teaching and training to those in local church, can develop further. 

**27** 



Baptist Colleges - continued 


This year we have continued to provide ministerial formation that is, at its heart, relational whilst having been under almost continual lockdowns which has given us the opportunities to try new things. Most of our leaving students settled into a range of ministries while we were delighted to welcome a gifted cohort of new ministers in training (MiTs). Our Baptist Leadership Programme has temporarily moved online, and we have enjoyed virtual weekends together exploring Marks of Ministry, Myers Briggs, Baptists Together and Diversity Awareness. 

Our vision of seeking to grow leaders for a changing church in a changing world remains prophetically relevant as we have begun working together to discern our priorities for the next five years. We remain committed to working in partnership with others including Urban Expression, Rural Ministries, The Centre for Theology and Justice and have been particularly blessed by being part of the partnership that has put together the _Creating Sanctuary_ resource. Central to our way of working is our partnership with our various Hubs: Luther King House, The Light College, St. Hild and Cranmer Hall. These hubs enable our students to undertake their academic work geographically closer to home while we all gather together at regular points through the year through the Baptist Leadership Programme. 

At Luther King House, moving validation arrangements from Manchester to Durham Common Awards has led to new opportunities eg, an MA in Chaplaincy and modules in Intersectionality and Theologies from the Majority World.  Zoom classrooms has enabled our relational and interactive styles of learning, and our weekly community worship is a highlight. We are considering including more online teaching in the future.Our new partnership with The Light College is overseen by Rob Beamish and supported by the Mission Forum and NWBA. This exciting new venture has started well and promises to draw on, and support, the increased interest in pioneering ministry reaching those beyond the church. 

At St Hild some students have really thrived on digital college, while others have missed the face-to-face interaction. Developments include a Baptist student place on the college council; Sally Nelson, our hub tutor, taking research leave; and two MiTs being on chaplaincy/pioneering pathways.We have been delighted to welcome Ian Galloway as the newly appointed Director of the Free Church Track at Cranmer Hall working with Linda Donaldson our hub tutor and Roy Searle who has been covering for Linda’s sabbatical. Core to this has been our weekly Baptist discipleship group encouraging and praying for one another. 

Lastly, we had an encouraging start to our first ever online Edifi course for local leaders exploring Corporate Discernment, engaging with leadership teams from twelve churches. Three additional Edifi events looking at Listening to God in Lockdown, Being Church beyond Lockdown and Preaching in a Time of Crisis were a particular highlight.  We look forward to offering a wider range of online learning opportunities starting in the next academic year. 


**28** 



For most of us 2020 has been dominated by the ways we have responded to the Coronavirus epidemic and the associated lockdown. This has been the case at Bristol Baptist College. We have faced many issues over the centuries, but we have never dealt with anything quite like this, at least not within living memory. 


Sadly, the lockdown has meant that lots of our favourite activities, such as annual dinners, valedictory services, and retreat days together to the countryside, all had to be cancelled. The shared meals, the trips out and the visits from special guests, all of which help to build community life, had to be put aside. The overseas mission trips were cancelled. The lively class conversations that spill over into coffee time had to go along with the chapel communion services that have always been the heart of our weeks. The virus has robbed us of a great deal. Yet at the same time it has taught us just how valuable these things, that we so often simply took for granted, really are. 

There have been other lessons for us. In particular the graciousness of God’s provision. We were able to thank Peter Hatton for his years of service to us as a ministerial tutor and our tutor in biblical studies, and to recruit Helen Paynter on a full-time basis in his place. In addition, all our programmes have continued. The lectures, seminars, conferences, reflection groups and services all quickly moved online. The astonishing technology that is now available has enabled us to carry on with our work and to recreate something of our sense of belonging. This has taught us about what may be possible in the future. We are grateful to God that he has enabled us to count the year a success even if we never want to return to the circumstances in which this success was achieved. 

Perhaps even more importantly, we have all been reminded of a truth we ought to have grasped more clearly. Our calendars, timetables and schedules are not the last word. They are just human plans. We are utterly dependent on God for everything. We always knew this, but the events of the year have driven home the point. In his kindness, God has allowed us to continue and, in many ways, to flourish. His continuing care along with the hard work and commitment of staff and of students, has meant that 2020 was a year in which the college continued to fulfil the purposes God has given it. We have learned some important lessons about what God may call it to do and to be in the future. 



_‘One of great value’ by Chris Duffett, photos belong to each respective Baptist College_ 

**29** 



## Mission Forum 

Over the last twelve months Mission Forum has also been reviewing its purpose and processes. The allocating of funding from Baptists Together Strategic Mission Fund has now been delegated to a newly convened Grants Committee, leaving the Mission Forum free to give more time to listening to what God is doing missionally across our Baptist family, and to discerning ways that we can enable strategic participation in this across our churches, Colleges, Associations and Specialist Teams. Both the Grants Committee and Mission Forum are accountable through Hayley Young who is ‘Embracing Adventure’ representative on the Core Leadership Team. 


## _**Pioneer Ambassadors and Round**_ 


_**Fuelcast**_ £2,000 As the Covid restrictions began to impact the life of Baptists Together we wanted to reflect on the question ‘What is God saying to us?’ Mission Forum commissioned The Fuelcast (a professional and Baptist film production company) to put together a series of short films listening to 16 voices from across the Baptist family. Films were released on a weekly basis and are an ongoing resource that will continue to inspire. Visit www.baptist.org.uk/listening 

_**Table**_ £22,500 The Mission Forum continues to support pioneering across the Baptist family through the ministry of Ali Boulton, Roy Searle and Simon Goddard. Together they engage with our churches, Colleges, Associations and others to encourage and support pioneers. During 2020 a Round Table was convened with Pioneer Advocates from across the regions and a variety of networks to ensure the voices of grassroots pioneers are being heard and responded to. 



_**Susan Myatt**_ £20,000 Over a number of years Mission Forum has supported Susan Myatt as she enables ministry with the deaf community and helps our Baptist family grow in their deaf awareness. She leads the Open Hands Signing Church and hosts a Deaf Café and a BSL Craft Group. During the period of Covid restrictions she has also been involved in ensuring that our online activities, such as the Baptist Union Prayer Broadcasts, have been accessible to deaf people. 

_**Renew Wellbeing**_ £40,000 This exciting and timely project seeks to facilitate ‘quiet shared spaces where it’s okay not to be okay’. In 2020 it received a ‘double portion’ of the grant it’s received in recent years to help bring forward its plans to recruit and deploy four new regional co-ordinators. The expansion of the team enabled Renew Wellbeing to adapt to the online environment necessitated by Covid, and to respond to an increased demand from churches wanting to serve the wellbeing of their communities. 

**30** 

_Paintings by Yinka Oyekan_ 





## Baptist Assembly 

The annual gathering of the Baptist Assembly that was planned for Bournemouth in May 2020 was unable to go ahead due to the Coronavirus pandemic.  A one-hour online meeting of the Assembly did take place on 18 September 2020 to fulfil the constitutional requirement for a meeting of the Assembly. This also provided an opportunity to present the 2019 Annual Report and provide an update on the work of Baptists Together to our member churches and other stakeholders. The event was well attended with more than 800 attending on the interactive platform and on our YouTube channel. 

Plans are now well advanced for the 2021 Assembly which will be held online over the weekend of 13-16 May.  This event will have a broader scope than was possible in 2020, and although we will miss the opportunity for in-person fellowship, it will include a range of opportunities to be together as Baptists.  We look forward to being able to hold an in-person Assembly again in 2022 in Bournemouth. 


**31** 



## Ministries 

## **ministries** 

planting and pioneering, and other contexts. 


**32** 




## **Continuing Ministerial Development** 

The CMD programme was launched in the autumn aiming to promote a healthier approach to ministry through a commitment to ongoing learning and accountability. It is built around five habits; Learning, Attentiveness, Accountability, Connection and Review. The purpose of CMD is to sustain the well-being and capability of ministers. We hope that in time this will become normative for all ministers. Enrolment is on a voluntary basis for those already accredited and by the beginning of February 2021, 308 ministers (22%) had enrolled. The programme for Newly Accredited Ministers is being revised to align it with CMD and the Marks of Ministry. CMD is now required for all those who join the register of accredited Baptist ministers. We are aware that this is an additional financial burden for churches but would ask that churches do all they can to enable their minister to engage with CMD. Further consultation is taking place with chaplains regarding the funding of their CMD. The Union trustees have made some additional funding available to help fund CMD where lack of money is preventing engagement. 

## **Settlement** 

2020 saw a dramatic reduction in the number of churches settling through NST falling from 98 in 2019 to 60. The pandemic has made the process far more challenging. 

_Painting by Yinka Oyekan_ 

**33** 



## **ministries** 

## **Settlement Review** 

The settlement process is changing and will in future be known as the Baptists Together Settlement Process. Regional Teams will still seek to accompany ministers and churches through the process but the meetings of the National Settlement Team where nominations were made to churches will no longer take place. Instead churches will be able to share information about them in a secure area on our website, and accredited ministers will then be able to share their profile with the churches they believe may be suitable for them. We hope that by better using the technology available to us that the Regional Teams will have more time available to engage with ministers and churches. The new online Pastoral Vacancy List will go live on 12 May. 

## **Recruitment of Ministers** 

We are very aware of the financial challenge of training for Baptist ministry, particularly if you have already gone to University. The Funding for Ministerial Training Working Group has been exploring ways of responding to this challenge in the hope that more women and men will be able to respond to God’s call on their lives. We have also published a new guide ‘An Introduction to Accredited Baptist Ministry’ which contains a range of diverse stories form those who have made the journey before as well as explaining what ministry is and how you become an accredited Baptist minister. As more young people engage in one year internships with Baptist churches and Associations the Ministerial Recognition Committee (MRC) have approved a quicker route from internship to ministerial training. 

## **Racial Justice** 

Following the death of George Floyd we received an open letter calling on the MRC to make changes to the disciplinary policy for ministers which are now in place; and to require diversity and equality training as an ongoing requirement for all accredited ministers. The MRC have recommended to Baptist Union Council changes to the Ministerial Recognition Rules embracing this request. 

## **Support** 

Covid-19  – Throughout the last year we have provided guidance to ministers and churches. This has been revised on many occasions as the situation has developed. We’ve also organised webinars and made available other resources to support ministers through this highly challenging time. We responded to the challenges of testing calls to ministry by allowing greater flexibility and held our first online Residential Selection Conference. The Preparing for Retirement Conference had to be cancelled and will now take place in October. 

The Ministries Team has continued to administer the Churches’ Ministerial Counselling Service on behalf of several denominations. Through 2020, 110 ministers or members of their households were able to access subsidised confidential counselling as a result. 

**34** 



Guidance leaflets published 

## Specialist advice and support for churches 

We continue to support churches with free advice and support on a range of specialist topics. Our aim is to provide a comprehensive suite of guidance to enable churches to operate effectively and substantially reduce their need to pay for external advice. 

- We publish and maintain over 100 guideline leaflets on topics including church finance, charity governance, legal and trust issues, listed buildings, property and tax. 

- We also provide bespoke advice to support churches where they have specific queries or complex issues not covered by our leaflets, which is provided via phone, email and site visits as appropriate. The scope of work we can carry out is supported by two of our staff holding Legal Practising Certificates issued by the Solicitors Regulation Authority. 

_**supportservices**_ 

- During 2020 we devoted significant effort to supporting churches with issues relating to the Coronavirus pandemic.  This included creating a new guidance leaflet covering specific legal and governance issues for Baptist churches and the creation of detailed guidance for churches re-opening their buildings. Both of these were updated multiple times during the year as the situation developed and new Government legislation or guidance was issued. 

- As a result of the focus on Coronavirus issues we scaled back our usual webinar programme, but did still carry out three webinars and an online training day for churches considering becoming a CIO.   A fuller webinar programme is planned for 2021. 

## Supporting Baptists Together 

The Support Services Team supports the internal operations of Baptists Together and the Baptist Union charity itself. This includes 

- Administration of the Home Mission Fund to bring together the funds collected by regional associations and distribute them according to the agreed funding formula. 

**3** webinars hosted, along with an online training day 

- Collection of Subscriptions from member churches, associations, colleges and personal members. 

- Operation of the Collaborate database which is a national web-based database of our churches and ministers, which is accessible to staff in the Specialist Teams, Regional Associations and Colleges, enabling the teams to work more efficiently. 

- Operation of the IT that supports Baptists Together. 

- Supporting the operation of the governance structures that underpin Baptists Together, which are described on pages 52-59. 

**35** 

_Painting by Yinka Oyekan_ 



_**supportservices**_ 

**£56.0million** in deposits at end 2020 

## Financial Services for churches 

The Support Services Team continues to operate the Baptists Together Deposit Scheme and Loan Fund on behalf of the Baptist Union Corporation. 

The Deposit Scheme continued to offer highly competitive rates of interest of up to 1% on deposits with Baptist Union Corporation during 2020. The scheme continues to prove valuable to churches, with deposits of £56.0m, which was stable over the year in spite of the drain on church finances from the Coronavirus pandemic. We paid out over £355,000 to Baptist organisations in interest to support their work. 

**£42.0million** on loan supporting Baptist organisations 

Deposits under the Deposit Scheme provide the funds to make loans to Baptist organisations. Loans to churches such as Haddenham-cum-Dinton Baptist Church (see page 37) support the acquisition and development of churches and manses and the settlement of pension debts. Loans are offered with competitive interest rates and much lower fees than typical commercial lending. 

We also make loans to other Baptist organisations, with £2m on loan to the Retired Baptist Ministers’ Housing Organisation to support its work in housing retired ministers, £20m to support the Pension Family Solution and £2.3m to Spurgeon’s College to support their work. Overall loans increased by £3.4m to £42.0m. 

up to 

**1.0%** was offered on deposits in 2020 

**£355,000** paid in interest to depositors 

_Painting by Yinka Oyekan_ 

**36** 



## Haddenham-cum-Dinton 


In preparation for the arrival of a new minister with his young family, Haddenham-cum-Dinton Baptist Church made use of a small Baptist Union Loan to update their manse and convert the garage in to a work space for the minister.  Whilst the project was fairly modest it achieved a very positive result, giving the family a comfortable and modern property to live in and the minister some much needed space in which to focus on his role as minister. 

**£950,000** distributed to Baptist organisations following 5 church closures 

**2,268 £5.8million** properties in trust across of property transactions 1,040 churches and other supported charities 

## Property Trustee Services for churches 

The Baptist Union Corporation continues to support member churches and other Baptist organisations by acting as a Property Trustee for church buildings, manses and other properties. As the majority of our member churches are unincorporated associations, they are unable to directly hold property, so this service is a key practical support to churches in their work. We also operate the East Midland Baptist Trust Corporation on behalf of its Trustees. 

As part of this service, we assist churches in the acquisition and disposal of properties, helping the church to comply with its trust deeds and Charity Commission requirements. During 2020 we completed our project to digitise trust deeds to safeguard key church legal documents from deterioration and risk of fire and other damage, and to make them more readily accessible for churches. 

As Property Trustee, we also support churches that are closing. Whilst it is always sad when a church closes, we wish to ensure that resources are efficiently recycled into future Baptist work. We advise churches on the closure process and then dispose of assets, settle any liabilities and distribute the remaining funds to beneficiaries of the relevant trusts. 

**37** 



## Faith & Society 

## _**faith & society**_ 

The Faith and Society Team has continued to support our churches, regional associations and colleges in their mission and ministry. Our aim has been to equip Baptists Together to play its full part in the wider Church, offering the distinctive insights that reflect the local nature and impact of our Baptist churches. We seek to resource and promote engagement with local communities providing benefit to and speaking of God’s love in our society. 

Throughout 2020 the Faith and Society Team has been listening carefully to the challenges faced by so many.  The aim has been to encourage attentive conversation, build wise connections and share effective resources, all of which responds to the imperative for justice, mercy and love across Baptists Together. 

## Connecting, listening and sharing 

It is important that Baptists Together is represented at national and international groups and organisations. This helps with the exchange of creative ideas and resource sharing. Faith and Society manage the appointment and support of representatives, making sure there is a good two-way flow of information and stories to both inform and encourage our mission and work. In 2020 most of the meetings usually attended on behalf of Baptists Together were either cancelled, postponed or taken online. 

The value of ecumenical links continued to be proved in 2020 as we have worked with our ecumenical partners in the response to the Covid-19 crisis and joint engagement with Government.  We also belong to the Joint Public Issues Team - a Baptist, Methodist, United Reformed Church and Church of Scotland collaboration which provides resources and speaks out on issues of justice, social affairs, peace-making, international affairs and the environment. 


**38** 

_Painting by Yinka Oyekan_ 




## Communication 

Communication is central to our work.  In response to needs of local church and ministry in Baptists Together, 2020 saw new areas of the website being developed.   These included: 

**Coronavirus section:** helping churches navigate the frequently changing Covid-19 advice and regulation from Government. 

**Listening section:** providing resources for churches to reflect on a range of issues pertinent across the generations of British Baptists. This included the broadcast of a new series of videos filmed during the summer of 2020 reflecting on what God may be saying to the church as Baptists listened during the early months of the pandemic. 

**Racial Justice section:** Following the death of George Floyd in USA in May 2020, a range of resources and reflections were drawn together and new ones developed to help on-going conversation and initiate change towards a racially just environment.  This included a series of blogs by a number of contributors. 

We have continued to publish the _Baptists Together_ magazine three times each year, and our monthly news update and prayer diary. 


Baptist Times has continued to enable a range of opinions and voices to be heard as well as encouraging each other by sharing the stories of God at work in local contexts. 

**39** 



_**HR & safeguarding**_ 

training in January and February. With the start of lockdown in March, our safeguarding focus shifted to supporting churches 



**----- Start of picture text -----**<br>
DBS checking service<br>Not surprisingly, the number of DBS checks<br>carried out on church workers and volunteers<br>dropped to just over 6,000 for 2020 (down<br>from 11,000 in 2019). We expect to see a<br>return to normal levels as soon as churches<br>can re-open. The DBS contract is paid for by<br>the Union and offers DBS checking services<br>to all Union member churches.<br>**----- End of picture text -----**<br>


**40** 

_Paintings by Yinka Oyekan_ 




**----- Start of picture text -----**<br>
IICSA inquiry into child sexual<br>abuse in faith based settings<br>The Independent Inquiry into Child Sexual Abuse<br>continued its work examining child protection<br>in religious organisations and settings this year.<br>Following extensive investigations into the Church<br>of England and the Catholic Church in the UK,<br>the inquiry turned its attention to other Christian<br>denominations and other faiths. The Union took<br>part as a core participant, providing evidence about<br>our ‘Excellence in Safeguarding’ commitment,<br>policies, procedures and training.  Hearings were<br>held online in May and August, and we expect to<br>see the inquiry’s report in the summer of 2021.<br>Human Resources<br>Churches have sought out guidance on the impact of<br>Coronavirus:<br>lockdown on their staff throughout the year. Our<br>A Guide for Employers  provided early detailed guidance on<br>how to move staff to homeworking arrangements and make<br>use of the government’s Job Retention Scheme (‘furlough’).<br>As the furlough scheme has changed and developed,<br>updated guidance and templates have helped churches<br>respond to new rules and requirements.<br>Risk assessment tools for churches in relation to returning<br>staff to on-site working have also been developed and are<br>available to download free of charge from our website.<br>Over and above this, more than 200 churches used our HR<br>service for specific support on issues relating to lockdown<br>including furlough, restructuring and redundancy processes.<br>It has been a privilege to support the staff of the Specialist<br>Teams as they have adapted to lockdown and provided<br>support and advice to our churches throughout the year.<br>Six new staff joined the Specialist Teams in 2020, replacing<br>six leavers and retirees.<br>**----- End of picture text -----**<br>


**41** 






## _**Family Solution**_ 

## Pensions 

Since 2012 the Baptist Pension Scheme has provided a Defined Contribution section for ministers and other staff of churches and other Baptist employers.  This allows employers to meet their legal obligation to provide a pension through a high quality pension scheme. The scheme has achieved authorisation as a Master Trust and has over £50m of assets held on behalf of more than 2,000 members. 

In 2020 the Union, represented by the Baptist Pension Scheme Employers’ Group, agreed the formal valuation of the closed Defined Benefit Section Baptist Pension Scheme as at 31 December 2019.  On a Technical Provisions basis, the shortfall (also referred to as ‘deficit’) of scheme assets compared to the target level of assets needed to pay the benefits was £18m at that date, an 80% reduction from the £93m deficit in the previous valuation as at the end of 2016.  On a buy-out basis, which reflects the cost of securing all scheme liabilities with an insurance company, the deficit was £51m, down from £162m at the end of 2016. 

The key contributions to the reduction in deficit were: 

- £33m of contributions made by the Union under the Family Solution 

- £13m of deficit reduction payments made by all scheme employers over the course of 2017 - 2019 

- The purchase of a Bulk Annuity Policy covering most of the pensions in payment in December 2019 on favourable terms 

As a result, the Deficit Reduction Contributions payable by employers were temporarily halved in the second half of 2020 to relieve some of the strain on finances caused by the Coronavirus pandemic, and the projected time when the scheme will be fully funded was brought forward by two and a half years to June 2026. During 2020 the Union paid the final £0.5m contribution due under the Family Solution agreed as part of the 2016 valuation. 

The Union and the Baptist Pension Scheme Employers’ Group continue to work with the scheme Trustee with the objective of eliminating the deficit.  The long-term objective is to purchase a further Bulk Annuity Policy to cover the remaining scheme liabilities, thereby removing any risk from employers and providing the greatest possible security of benefits. 

**2.5year 50% 80%** reduction in recovery plan reduction in deficit fall in scheme deficit over recovery contributions in 3 years 2nd half of 2020 

**42** 



_**Here are some highlights from our plans for 2021 and beyond**_ 

## Plans for the future 


**ministries** _**HR & safeguarding**_ 

_**faith & society**_ 

With the ongoing uncertainty of the Covid-19 pandemic, 2021 will be a year when we need to focus on continuing to be inspired by the greatest Commandment to deepen our love for God, others and ourselves (Matthew 22:37-40).  At the same time, we must keep looking for and welcoming signs of emergence as new ways and possibilities open up before us and unfold.  You will see below a number of projects that are being initiated that are signs of the new things that God is bringing about in and through us. 

Over the coming year we will continue to support and encourage ministers in engaging with Continuing Ministerial Development; provide guidance and support to ministers and churches in the new settlement process; undertake a review of the implementation of the the Ignite Report into the future of accredited ministry, review the system of national recognition and work with the Justice Groups on issues relating to ministry. 

In 2021 we will continue to support churches with safeguarding good practice through our online Safeguarding Update film, covering the key points from our Level 2 and 3 courses, and available through your regional association team. We hope to resume face to face training in the autumn, and continue to add to the range of materials and resources for churches available online. We will also be considering learning points for Baptists Together coming out of the report of the Independent Inquiry into Child Sexual Abuse on Child Protection in Religious Organisations and Settings, which is expected in July 2021. 

During 2021 we will respond to the challenges presented by the global pandemic of Covid-19 by sharing good practice and providing advice through the website and social media platforms. We will continue to encourage Baptists Together to be attentive, to listen well together and reflect on the significant issues facing our communities. The Faith and Society Team will work to enable the Baptist family as together we seek to express the gospel message in the places we have been called to serve. 

**Baptist Pension Scheme** : Following completion of the valuation process in 2020, we will be working with the Trustee to build a plan for an eventual buy-out of the scheme and looking at what can be done to reduce the ongoing operational cost base. 

_**supportservices**_ 

**Church Support** : We will be launching a new online system in 2021 that will allow church leaders to conduct a self-assessment of their church against good operational practice and signpost them to the guidance needed to resolve any shortfalls.  We will also continue to support churches in adapting to the challenges presented by the Coronavirus pandemic 

_‘Busy bee’ by Chris Duffett_ 

**43** 




## The Retired Baptist Ministers’ Housing Organisation (RBMHO) 

The Retired Baptist Ministers’ Housing Society (RBMHS) began in 1975 with the aim of ensuring that ministers coming to retirement, who did not have the means to provide their own housing, could enjoy a safe and secure future in their own home. At the end of 2018, RBMHS, transferred its work to RBMHO, a newly formed Charitable Incorporated Organisation registered with the Charity Commission, which is governed by its own board of Trustees and is run independently from the Union. 

RBMHO is self-financing and its ongoing work is only made possible by the continuing generosity of Baptist churches, their fellowships and individual friends, who give donations, bequeath properties or leave legacies. In 1975, RBMHS started out with no properties of its own but by the end of 2020 RBMHO owned 266 properties, housing over 440 tenants and managed a further seven properties on behalf of others. Thanks to God’s goodness, RBMHO was able to support all nine qualifying ministers who applied for assistance during 2020. 

RBMHO also supports the Baptist family by provision of a loan to the Union as part of the Family Solution that is addressing the deficit in the Baptist Pension Scheme. 

RBMHO is delighted to build on the success of RBMHS in providing good quality homes at affordable prices and values its reputation of caring for its tenants. The organisation looks forward to continuing to serve God through its work with His servants. 

For more on the work of RBMHO, **see www.rbmho.org** 

## _**ASK… SEEK… KNOCK and the door will be opened.  Luke 11:10.**_ 

When I was coming up to my retirement my wife and I attended a Pre-Retirement Conference where the representative of RBMHO, Stewart Green, spoke of the work of the Housing Society. 

As the time came near for my retirement, I contacted Stewart to discuss the possibility of receiving accommodation from the Society.  As this coincided with a slump in the housing market this was difficult to find as most of the available properties were in the South of England and we wanted to remain in the North. After much prayer and asking on our part and Stewart’s patience and seeking we were rewarded when the right house became available.  We know this was the work of God as we asked, he supplied and we have now entered our 12th year in this comfortable home. 

We thank God for his faithfulness and provision 

We thank all at RBMHO for their continued care and support 

We thank the churches and members of our Baptist family who help to make it all possible 


The McEwans (housed by RBMHO since 2009) 

**44** 



## Home Mission Fund Review 

The Home Mission Fund, which is the name given to the General Fund of the Union, showed an operating deficit of £0.16m, which was £0.05m worse than the £0.11m deficit in 2019. 


The Home Mission Appeal, our largest source of income, continued its long-term decline, falling by £0.15m compared to 2019. Although this modest decline was encouraging given the context of the Coronavirus pandemic, we remain concerned that the Home Mission Appeal has fallen by 27% in ten years, when allowing for inflation. Legacies were around 60% below the long-term average of around £0.5m. All other income sources also fell by 8% to £1.12m from £1.22m, resulting in a 7% decline in overall income. 

The decline in overall income resulted in reduced grants to Regional Associations under the Baptists Together funding formula. The Specialist Teams also reduced their costs to match the decline in income. Our overall target is to operate on a breakeven basis in the medium term. 

**45** 

_‘Good Harvest’ by Chris Duffett_ 



## Designated and Restricted Reserves 

**The Pension Reserve** is a fund held by the Union to support the Baptist family in dealing with the deficit in the Baptist Pension Scheme.  Across the Designated and Restricted sections, the Pension Reserve received total income of £1.36m (2019: £1.42m) comprising: £0.70m (2019: £0.65m) of proceeds from closures of churches where the Union is the beneficiary of the Ultimate Trust, £0.11m (2019: £0.17m) of donations and £0.55m (2019: £0.55m) from Baptist Union Corporation to support the interest costs on the loan from RBMHO. 

Expenses totalled £0.70m (2019: £0.82m) comprising £0.65m (2019: £0.75m) in interest on the loan from RBMHO, £nil (2019: £0.05m) on supporting churches with pension deficits and £0.05m (£0.02m) on legal fees and expenses relating to pensions. 

Across the Restricted and Designated sections, the Pension Reserve had a deficit balance of £17.27m (2019: £17.93m), comprising the £20m liability to RBMHO and £2.73m in cash. Of the cash balance, £0.76m is set aside in an escrow account to support the Defined Contribution Section of the Baptist Pension Scheme in meeting the financial sustainability requirements of its Master Trust authorisation and therefore not available for general use. 

The long-term plan is to repay the £20m loan from RBMHO using anticipated future cash surpluses from RBMHO that will be shared with the Union under a memorandum of understanding between the Union’s Trustees and the Trustees of RBMHO, which will resolve the deficit in the Fund. 

**The Baptist Strategy Building Scheme** is a closed scheme which made interest free loans to churches for building works. Repayment plans are only put in place when it is felt that the church is able to afford it. Any loan without an active repayment plan is fully offset by a provision in the accounts as well as any repayments due more than five years into the future. Repayments of £10k (2019: £15k) were received and the review of the provisions held at year end resulted in a reduction in the provision (shown in the accounts as a negative expenditure) of £1k. There were 25 loans outstanding at year end with a gross value of £1.04m (2019: £1.05m). 

**The Baptist House Reserve** : holds the assets involved in the Union’s co-ownership with BMS World Mission of the Baptist House premises. £0.07m (2019: £0.07m) of depreciation was recorded against the fund, leaving a balance of £3.09m (2019: £3.16m) 

**Fixed Asset Reserve** : holds the Union’s other property assets. This fund transferred £0.32m to the Home Mission Fund through the sale of a residential property that was not replaced, due to reduced need for staff housing in a Regional Association and recorded £0.05m (2019: £0.05m) of depreciation against the properties, leaving a final balance of £3.78m (2019: £4.15m). 

**Pastoral Funds** : The Pastoral Fund and Retired Ministers’ Benevolent Fund continued to make grants for pastoral support of members of the Baptist family totalling £0.15m (2019: £0.11m) including additional grants in response to the Coronavirus pandemic totalling £0.05m. The Pastoral fund received investment income of £0.08m (2019: £0.03m). 

**Strategic Projects Fund** : £25k was expended to support the appointment of  a Centenary Development Worker to build on the centenary of women in Baptist ministry and promotion of legacies as a strategic income stream and £81k was transferred to the general fund to cover the operational deficit in 2019, leaving a balance of £129k. 

**Covid-19 fund** : This fund was established with a transfer of £1m from the Union’s unrestricted reserves and a further £6k in gifts was received.  £50k was granted to the European Baptist Aid Coronavirus appeal and £172k was granted to 23 churches to support member churches in financial difficulties due to the pandemic. 

**46** 



## Subsidiary and Related Entities 

The associated entities of the Union operate according to their own Governing Documents and, where required, report to the Union’s Trustee Board. The Trustee Board works in partnership with the relevant officers or Directors of these entities where issues arise that impact upon the wider life of the Union. The Union is involved in the following related companies and bodies: 

**1 Baptist Union Corporation Limited (BUC)** : is a registered Charity (charity number 249635) and a Company Limited by Guarantee (company number 32743) and operates as a subsidiary of the Union. The members of the BUC are the Trustees of the Baptist Union of Great Britain. The organisation’s activities include holding as Custodian Trustee of the property and investments of the Union and Baptist churches in trust with the BUC, together with trust funds in cash. The BUC recorded an operating deficit for 2020 of £0.13m (2019: surplus £0.81m) prior to gifts to the Union of £0.75m (2019: £0.81m). The reserves at year end were £3.39m (2019: £4.26m). 

**2 The Retired Baptist Ministers’ Housing Organisation (RBMHO)** : is a Charitable Incorporated Organisation registered with the Charity Commission (charity number 1177649), which provides housing for retired Baptist ministers and their spouses. Eight of the 15 Trustees of RBMHO are appointed by the Trustees of the Union. RBMHO is accounted for as a Restricted Fund within the Union’s Consolidated Financial Statements. During 2020 RBMHO made a surplus of £1.33m (2019: £1.01m) and had total reserves at the year-end of £34.50m (2019: £33.17m). 

**3 The Baptist Holiday Fellowship Limited (BHF)** : The Union was the majority shareholder through the BUC as custodian, and held one deferred share of the issued share capital and had the right to appoint up to five of the Directors of the charitable company (company number 133395). BHF made grants to support Baptist ministers and their dependents until November 2019. During the year to 30 November 2019 BHF made a surplus of £0.08m and had total reserves of £1.31m (2018: £1.23m). The BHF accounts are consolidated with the Union’s accounts. In December 2019 BHF transferred its assets, liabilities and operations to the Pastoral Fund of the Union and was dissolved on 24 March 2020. 

**4 Baptist House Limited** : The BUC is one of the two members of this Company Limited by Guarantee (company number 2366122), which operates Baptist House on behalf of The Union and BMS World Mission. The Union may appoint up to three of the six Directors of the company. BHL recorded a comprehensive income of £0.035m (2019: comprehensive expenditure of £0.033m) and total reserves at the end of the period were £0.277m (2019: £0.243m). The Union’s share of the results for the year to 31 October 2020 are included in the consolidated financial statements. 

**5 Baptist Pension Trust Limited** : This Company Limited by Guarantee (company number 03481942) is responsible for managing the administration and investments of the Baptist Pension Scheme. The Directors are the only members of the company. The Directors appoint Baptist Union-nominated Directors to the Board of the Company and at least onethird of the Board are member-nominated Directors as required by law. The results are not included in the Union’s consolidated accounts. 

**47** 

_‘Good Harvest’ by Chris Duffett_ 



## Investment Performance 

The governing documents give the Charity Trustees the power to invest in such securities and on such terms as the Charity may deem fit. The Trustees have delegated the detailed monitoring of the portfolio to the Finance and Audit Committee of the Union. 

The investments are managed within ethical guidelines set down by Baptist Union Council. These comprise both positive and negative screening. In summary the positive screening means investing in companies or sectors which reflect Christian values in areas like environmental protection, supporting sustainable development, health including healthy food, education, employment, human rights including addressing modern day slavery, good corporate social responsibility, good governance, financial transparency, anticorruption controls, safe working practices, natural justice and sensitivity towards the communities in which their business operates. Our negative screening excludes companies with more than 10% of revenue in any of the following: gambling, pornography, the supply of tobacco products, alcoholic beverages, armaments, high interest rate lending, human embryonic cloning or genetically modified organisms (except where research is absolutely essential), companies involved in human exploitation or injustice and the extraction of coal and tar sands and any other fossil fuel extraction unless these latter companies are considered to be moving significantly to sustainable energy policies.  Where we invest in pooled funds these are screened to ensure that no more than 5% of assets in the fund are in companies that fail to meet the direct investment criteria. This policy was reviewed by Baptist Union Council in March 2021 and it was agreed to amend the negative screening policy to exclude the extraction, production and refining of oil, gas, tar sand and coal. 

Within the investment strategy, Schroders Plc have been appointed as investment managers with discretion over investments. Details of the investments are set out in note 13 to the financial statements. Our investments are managed in two portfolios, a general portfolio and an endowment portfolio. Both portfolios target performance of CPI+4% per annum net of fees over the long-term. The general portfolio has an income target of a 3.5% yield whilst the endowment portfolio targets a 3.0% yield. The Finance and Audit Committee has put in place composite benchmarks for Schroders as follows 


**----- Start of picture text -----**<br>
General Portfolio   Endowment Portfolio<br>FTSE All Share Index  30%  30%<br>MSCI World ex UK Index   30%  30%<br>FTSE Actuaries British Government All Stocks Index 10%    5%<br>IBOXX Sterling (£) Non-Gilt All Maturities index  20%  20%<br>IPD property (UK) index  10%  10%<br>LIBOR    0%    5%<br>**----- End of picture text -----**<br>


A summary of investment performance in the 12 months and three years to 31 December 2020 is presented in the following table: 


**----- Start of picture text -----**<br>
       1 year performance        3 year performance pa<br>Actual     Benchmark  Difference  Actual         Target      Difference<br>General Portfolio   2.3%  4.3%  -2.0%  4.6%  -5.4%  -1.2%<br>Endowment Portfolio  2.7%  3.9%  -1.2%  3.9%  -5.4%  -1.2%<br>Combined  2.4%  4.3%  -1.9%  4.2%  -5.4%  -1.2%<br>**----- End of picture text -----**<br>


The Trustees are concerned to note that the long-term performance overall falls short of the target and, following a review with the Investment Manager, changes were made to the Statement of Investment Principles in December 2020 which we expect will help address the under-performance. The changes provide the Investment Manager with additional scope to achieve the best overall return through flexibility in the asset allocation and a reduced focus on income yield. We will continue to monitor performance and hold regular meetings with the Investment Manager to review performance and take action as necessary. The Trustees continue to have confidence in the management of our investments. 

**48** 



Actual consolidated Asset Allocation as at 31 December 2020 is shown below: 


## Approach to fundraising 

The Baptist Union of Great Britain funds the majority of its work through funds raised from its members, who are churches, regional associations and colleges. The Home Mission Appeal through which funds are collected from member churches is organised by our partner regional associations. We also request a subscription from each member church, association and college, which is requested annually by writing to each organisation’s treasurer.  We also have a small number of personal members, from whom we also request a subscription on an annual basis. 

Our main avenue for raising funds from the general public is through legacies. We offer a will writing scheme in partnership with the National Free Wills Network, which is run by Capacity Marketing, a Division of Ashton Maund Associates.  Capacity Marketing is a member of the Institute of Fundraising, which requires all members to sign up to the Code of Fundraising Practice. This scheme is promoted via our member churches and referrals are passed to National Free Wills Network for referral on to their member solicitors, who are regulated by the Solicitors Regulation Authority. Solicitors are required to check that a client is not under duress when making a will, which provides protection from undue pressure. Capacity Marketing only send at most two standard form letters when contacting individuals referred to the network and no telephone calls are made to potential donors. 

We also accept direct donations from the public via our website. There are links provided to make a donation from various pages of our website. We do not actively promote the online donation facility through any direct marketing. We do promote our work to our member churches by letter and email to their church leaders and by email to subscribers to our mailing lists. 

Fundraising complaints are handled through our standard complaints procedure. No complaints relating to fundraising were received in 2020. Complaints are monitored and reviewed for any concerns in relation to fundraising practices, which would then be reported to the Trustee board. 

**49** 

_‘Good Harvest’ by Chris Duffett_ 



## Baptist Pension Scheme (BPS) 

The Baptist Union of Great Britain is a participating employer in the BPS, which has a Defined Benefit section relating to pensionable service up until the end of 2011.  The BPS is recognised in our accounts as a liability based on a discounted cashflow of the contributions due under the agreed recovery plan in force at 31 December 2020, amounting to £0.21m (2019: £0.33m). A gain of £0.11m was recorded in the financial statements on the re-measurement of the liability. The Union has been provided with an estimated cost of settling its liabilities to the scheme at 31 December 2020 of £0.78m (2019: £0.80m). 

In September 2020, BPS completed a triennial valuation of the scheme as at 31 December 2019. This showed a deficit of assets compared to liabilities of £18m. The associated schedule of contributions and funding plan was developed in consultation between the Pension Trustee and the Pension Employers’ Group and approved by the Union. The Union made a one-off contribution of £0.5m in December 2020 under this schedule of contributions in addition to the current employer contribution plan which ends in June 2026. 

During 2019 £0.76m from the Pension Reserve was set aside in an escrow account to support the Baptist Pension Scheme in meeting the financial sustainability criteria necessary for obtaining Master Trust authorisation from the Pension Regulator. Master Trust authorisation is necessary to continue to run the Defined Contribution section of the scheme and was successfully achieved in September 2019. 

## Policy on Reserves 

During the year, the Trustees reviewed the reserves policy of the Union. The policy is put in place to ensure that the Union has sufficient free and available funds to cope with unplanned expenditure or an unforeseen drop in income. Having considered the risks relating to income and expenditure, the Trustees consider that it is appropriate to hold between 6 and 12 month budgeted expenditure, based on the timescales they anticipate it would take to reduce ongoing cost commitments due to notice periods for staff (typically between 3 and 9 months) and suppliers (up to 12 months) and the time it would take grant recipients to adjust to any reduction (estimated at between 6 and 12 months). This equates to reserves in the range of £2.8m - £5.5m. The unrestricted free reserves, excluding Designated Income Funds and capital assets, totalled £7.5m at year end, giving an excess above the top end of the range stated in the reserves policy of £2.0m. The Trustees feel it is appropriate to hold these additional funds to partially offset the significant deficit in the Pension Reserve Designated fund, which totalled £17.5m at the end of 2020 and to absorb any impact of the Covid-19 pandemic on the Union’s finances. 

The Union holds a number of Designated Income Funds which can be spent at the discretion of the Trustees in furtherance of the Union’s objects. The Trustees note their obligations to justify the holding of such funds and the details of these funds are provided in note 22 to the financial statements. 

**50** 



## Report of the Finance and Audit Committee 

The Finance and Audit Committee continued to oversee the finances of the Union. The key elements of work of the Committee in 2020 were 

- Monitoring the finances of the Union and Baptists Together as a whole 

- • Monitoring the performance of the Union’s investment portfolio including overseeing the implementation of the Union’s ethical investment policy and undertaking a review of the Statement of Investment Principles 

- Reviewing the balance of cash and investments on the Union’s balance sheet, including those on the Baptist Union Corporation balance sheet 

- Reviewing the report of Moore Kingston Smith on the 2019 accounts and planning for the 2020 audit 

- Reviewing the Risk Register and insurance cover 

- • Agreeing and monitoring the financial support schemes for churches during the Covid-19 pandemic 

- Considering scenario planning for the Union and Associations reflecting the uncertainties of financial outcomes as a result of the pandemic 

- • Monitoring the position of the Baptist Pension Scheme particularly the impacts post Buy-In in the DB Scheme and following the implementation of the Master Trust in the DC Scheme 

- Monitoring the Pastoral Fund and reviewing the terms of reference 

- Overseeing the implementation of a new accounting system 

- Overseeing the property transactions following the review of the policy for Association Housing 

- Undertaking training on cyber security and information security 

- • A proposal to BUGB Council to review the way funds from the ultimate trusts of closed churches are utilised 

In the coming year the committee plans to monitor the ongoing impact of the pandemic and participate in a review of the allocation of funding between BUGB and the Regional Associations. 




**51** 

_‘One of great value’ by Chris Duffett_ 



## Structure, Governance and Management 

The Baptist Union of Great Britain (the Union) is a Charitable Incorporated Organisation (CIO), consisting of the Baptist churches, regional associations of the churches, colleges, other Baptist organisations and a small number of personal members who affirm the Baptist Union Declaration of Principle and are in membership with the Union. 

Prior to 1 January 2020, the Union operated through an unincorporated association charity of the same name, registered charity number 1125912. Following an extensive consultation process, the Union registered as a CIO with the Charity Commission on 2 January 2019.  The CIO and the unincorporated charity have the same charitable objects, trustees, governance structures and members. On 1 January 2020 the assets, liabilities and operations of the Union were transferred to the CIO, which is a more appropriate legal structure for a charity of our size and complexity. 

The full constitution of the Union can be found at www.baptist.org.uk/constitution. It is anticipated that the existing unincorporated association charity will be kept to ensure the Union retains its entitlement to any future legacies and other rights and responsibilities. A simplified constitution for the unincorporated association will be proposed for approval to the 2021 Assembly to simplify the administration and governance arrangements. 


## Baptist Assembly 

As a membership organisation, the Union holds an annual Assembly to review the life of the Union. Under the Constitution, Members of Assembly consist of delegates of member churches, associations and colleges alongside ministers, officers of the Union and members of Baptist Union Council. 

During the Assembly the President is inducted for the forthcoming year, and some formal business is carried out – the Treasurer elected by Baptist Union Council is affirmed, new General Secretaries are appointed, and any constitutional changes are voted upon. 

The Assembly originally planned for 8-10 May 2020 was cancelled due to the Coronavirus pandemic.  Yinka Oyekan was inducted as President via an online gathering on 10 May 2020 and an online meeting of the Assembly was held on 18 September 2020. 

**52** 





## Baptist Union Council 

The Baptist Union Council usually meets twice per year to set the broad strategic direction of our Union. The Council also oversees the work of the Ministerial Recognition Committee which administers the accreditation of Baptist ministers and church workers and the national recognition of preachers, pastors and pioneers. The Council also elects the Treasurer. 

It has around 80 members consisting of: 

- Three members nominated by each Regional Association 

- One member nominated by each College 

- The Trustees of the Baptist Union 

- The members of the Core Leadership Team 

- The President, Ex-President and Vice-President of the Union 

- Two representatives each of BMS World Mission, Baptist Union of Scotland, Baptist Union of Wales and a representative of Irish Baptist Networks 

- Two ecumenical representatives 


- Up to 12 co-opted members 

A full list of Council members and a report from each BU Council meeting are available at www.baptist.org.uk/council. 

## Memberships and Associations 

The Union is a member of the following bodies with which it collaborates in pursuit of its charitable objectives. 

- Baptist World Alliance 

- European Baptist Federation 

- Fellowship of Baptists in Britain and Ireland 

- Churches Together in England 

- Churches Together in Britain and Ireland 

- World Council of Churches 

- Joint Public Issues Team (JPIT) 

- The United Board which commends ministers to armed forces chaplaincy 

- Church Investors Group 

**53** 

_‘One of great value’ by Chris Duffett_ 



_**Safeguarding Committee**_ was constituted in early 2019 and has oversight of the Union’s National Safeguarding team and safeguarding policies. 

## _**Finance and Audit**_ 

_**Committee**_ supports the Trustees in overseeing the Union’s financial reporting, planning, policy, audit, risk and compliance and investments. 

_**Remuneration Committee**_ makes recommendations to Trustees on pay and reward of staff of the Union. 

## Trustee Board 

The Trustee Board comprises a Moderator (Chair), the General Secretary, the Treasurer and up to nine other persons. The Trustees oversee the Baptist Union charity; in particular, the legal, financial and strategic life of the Union and have regard to the public benefit of the charity. Trustees oversee implementation of the broad strategic direction determined by the Baptist Union Council. 

Our Trustees are unpaid, except the General Secretary as detailed in note 11 to the financial statements, where details of Trustees’ expenses are also disclosed. To help the Trustee Board with governance of the charity, sub-committees have been put in place by the Trustees. In 2017 the Trustees carried out a governance review and agreed to adopt the Charity Governance Code in full. 

During 2021 we will be updating our governance handbook in the light of the updates to the Charity Governance Code published in 2020. 

_**Baptist Pension Scheme Employers’ Group**_ engages with the Baptist Pension Scheme on behalf of the Union and other employers and advises the Trustees on matters relating to the Scheme. 

_**National Settlement Team**_ facilitates the settlement of accredited ministers into the pastorates of member churches.  Following the implementation of the revised settlement process, this group was disbanded in April 2021. 

_**Core Leadership Team**_ (CLT) is a gathering of national and regional leaders who aim to discern what God is saying to us, build relationships and encourage the flourishing of our Movement. 

**54** 



## Recruitment of Trustees 

The General Secretary is appointed by the Assembly. All other Trustees are elected by the Council from a list of suitable nominations provided by the Key Roles Nomination Team. Moderator of Trustees (chair) and the Honorary Treasurer are affirmed annually by the Assembly.  Applications for Trustee roles are sought via advertising on the Baptists Together website, in email communications to our member churches and other suitable avenues. 

The Trustees maintain a skills matrix and share this with the Key Roles Nomination Committee to help them identify any capability gaps.  The Key Roles Nomination Committee endeavours to ensure that the Trustee Board reflects the full range of diversity of Baptists Together. 



## Induction and Training of Trustees 

New Trustees are usually familiar with many aspects of the Union’s work prior to appointment. All Trustees receive an induction into the work of the Union by meeting senior staff and being advised of the general nature of their work. 

They receive financial statements and other relevant documentation including a copy of the Charity Commission’s publication CC3, _The Essential Trustee_ . Formal training on financial matters is provided as appropriate. Our Governance Handbook is provided to all new Trustees. Trustees also receive training from time to time as a group and individuals to address any skills gaps identified. 

**55** 

_‘One of great value’ by Chris Duffett_ 



## Principal Risks and Uncertainties 

All significant activities undertaken are subject to a risk review. Risks are identified, recorded in a risk register and ranked in terms of their potential significance and probability and then classified into Red, Amber and Green, with Red being the most severe. The risk register is reviewed by the Finance and Audit Committee and Trustees, with Red Risks reviewed at every meeting and a full review carried out annually. 

A specific review of risk has been carried out in the light of the Covid-19 pandemic and incorporated into the evaluation of risks. Risk (vii) below was added to the list of major risks following this review. 

Red risks and the plans and strategies for managing them are: 

**(i) Sexuality and diversity issues** , the potential mishandling of which could cause a fracturing of the Baptist family due to the strongly held views on this issue. Over the last few years, following widespread consultation, Council issued a statement concerning the registering of buildings for same sex marriages and the Ministerial Recognition Committee has reviewed and updated Ministerial Recognition Rules and produced Ministerial Recognition Guidelines on this issue. Further resources to enable churches to reflect and engage in respectful dialogue on the wider issues of sexuality and gender identity are currently being identified and produced. Trustees continue to monitor significant developments in this area. 

**(ii) Safeguarding of children and adults at risk** . Focus on this area continues to ensure that the Baptist denomination provides a framework of best practice for protecting those who attend or come into contact with our churches and other bodies. Progress against the current Safeguarding three-year plan is reported to each meeting of the Trustee Board. A Safeguarding Committee has also been established by the Trustee Board to provide a linkage between the Trustees and this critical area of work. 

. The numerical decline of members of **(iii) Significant numerical decline** our churches continues to be experienced for Baptists as with other historic denominations in the UK.  To mitigate or reverse the decline, we are encouraging pioneering mission, discipleship, younger leaders and embracing adventure through our values, communications, strategic working and investment of resources. Alongside supporting churches throughout the pandemic, we are also encouraging and equipping our churches to make the most of the opportunities for change that have been presented; most notably with the embracing of digital approaches to worship and mission. 

**56** 



**(iv) Ineffective operation of collaborative leadership and working across Baptists Together, including lack of a common vision** . We continue to work together to make our vision, values, key areas of work and current priority areas more deeply embedded among us.  Following Council’s decision at the end of 2019 to adopt a different approach to collaborative leadership across Baptists Together the Core Leadership Team was created.  Council asked the Core Leadership Team to fulfil the role of perceiving what is happening across the life of our Movement and nurture collaborative, partnership working to align action and resources towards our common aims.  At the same time, Council tasked the Trustees with the continuing work of stewarding the Baptist Union of Great Britain as a charity.  From March 2020 the Core Leadership Team has met weekly online and has provided a regular point of connection for key leaders across Baptists Together at a critical time. 

**(v) Recruitment of ministers** , which may not match demand from churches. We continue to monitor the balance of supply and demand for ministers through the settlement process, overseen by the Ministries Team. The appointment of a Ministries Adviser (Ministerial Development) is enabling us to improve our communication for recruitment of ministerial students and also work with Associations and Colleges to strengthen recruitment. 

**(vi) Affordability of ministerial training** , if Baptist Colleges can no longer sustain training for ministry at affordable cost. Following a review of funding for training at Baptist Union Council in November 2019, a working party has been established to investigate the situation and make recommendations back to Council. It is expected to produce an initial report in 2021. 

**(vii) One or more Regional Association becomes unviable** , if one or more of our Regional Associations is unable to sustain their operations within the funding available to them, this could compromise the viability of the operating model of Baptists Together.  The probability of this risk occurring has risen due to the Coronavirus crisis and the potential for a significant decline in income as a result. During 2021 we will be initiating a review of how our resources are distributed in order to ensure that key activities are appropriately funded. 

**(viii) Inability to recruit sufficient suitably skilled Trustees** . Overseeing the operation of a complex charity like the Union requires trustees with considerable skills and expertise.  The term of office of the current Moderator is due to end in August 2021 and the current Treasurer has indicated they will step down in 2023, and successors have not yet been identified.  As a result this risk has increased in likelihood in the last year.  Without suitable Trustees in place there is a significant risk of a failure of governance.  The Key Roles Nomination Team is working to identify suitable candidates, including by public advertising. 




**57** 

_‘Look to Jesus’ by Chris Duffett_ 



## Grants 

The Union makes grants as one of its ways to achieve its charitable objects. The largest grants made are those to fund the 13 Baptist Regional Associations in their work as part of Baptists Together, which totalled £2.94m in 2020. These grants are given on a formula agreed by the Union’s Trustees to enable sharing the income of the Home Mission Fund. 

The Union also makes other grants as follows: 

**Strategic Mission Grants** : These grants are given to organisations to develop strategic mission projects. The allocation of grants from the budget of £0.13m is delegated to the Baptists Together Mission Forum under the supervision of the Union’s Trustees. 

**Supporting other Baptist bodies and ecumenical bodies** : We contribute to the running costs of various bodies of which we are members, through a membership subscription that we classify as a grant in our accounts as we receive no services in return for our contribution. 

**Supporting Ministerial Training** : We make grants to individuals to support ministerial training. These include a book grant of £120 for all ministers in training, and a student bursary fund of £0.13m. Each of the five main training colleges are asked to oversee distribution of a proportion of these funds to students. 

**Further studies grants** : We make grants to individuals to support post-graduate theological studies, including up to one PhD scholarship. The grants are made in response to applications by the Scholarship and Further Studies Committee, which is made up of representatives from each Baptist college and the Ministries Team. 

**Pastoral grants:** to individuals who are working in a Baptist church or other Baptist organisation: These grants are usually up to £1,500 and are made in response to an application or nomination that is recommended by a Regional Minister and approved by two Specialist Team leaders. During the Coronavirus pandemic the usual £1,500 limit on grants was increased to £5,000, particularly to assist those who suffered financial hardship due to the pandemic. 

**Coronavirus grants:** During 2020 the Trustees of the Union established a Coronavirus grant scheme to support churches suffering financially due to the circumstances of the pandemic.  Grants of up to £15,000 are available.  During 2020, a total of £172k was granted to 23 churches. 

## Volunteers 

The Union is grateful for the support of volunteers in carrying out its work. Their main direct contribution is through serving on committees and working parties to support our work. Volunteers also make a significant contribution to our member churches, Regional Associations, Colleges and other bodies within the Baptist family. Due to the wide range of different ways in which volunteers participate in our work, it is impossible to quantify their support. 

**58** 

_Painting by Yinka Oyekan_ 



## Funds Held as Custodian Trustee on Behalf of Others 

The Baptist Union Corporation holds financial assets as Custodian Trustee for nine Baptist churches, all of which have the same objects as the Company for the advancement of the Christian faith and its practice especially by the means of, and in accordance with, the principles of the Baptist denomination. The company acts solely as an Agent and carries no decision-making capacity. 

|**Type of Assets Held**|**£’000**|**Organisatons**|
|---|---|---|
|Cash Deposits|14|1|
|Income Units<br>Natonal Savings Income Bonds<br>UK Equites<br>**Total**|187<br>  13<br>1,389<br>**1,604**|3<br>1<br>4<br>**9**|



The Baptist Union Corporation acts as property trustees for 1,040 churches and charity organisations. Arrangements are made for the safe custody of deeds and documents, with each UK Equities set stored in a labelled packet, and included in an index system. For all financial accounts a separate **Total** account is kept for each beneficial owner and records are maintained of the beneficial owner of each account. A three-year project to digitalise key church property deeds was completed in 2020. 

The names of the churches and other charities for whom the Company acts as a Custodian Trustee are available at: www.baptist.org.uk/custodianlist2020. The organisations are all Baptist organisations and therefore have objects that are compatible with the charitable objects of the Company. 



## Key Management Personnel Remuneration 

Day-to-day management of the Union’s business is delegated to a group of employed staff and appointed ministers who operate within the frameworks set by the Trustees; senior staff are detailed in the Who We Are section of this report. 

All staff and appointed ministers of the charity are employed by the Baptist Union of Great Britain and the arrangements for setting the pay and remuneration are the responsibility of the Trustee Board. A Remuneration Committee advises and makes recommendations to the Trustees. In line with the Pay and Reward Policy Statement approved by the Trustees, remuneration is benchmarked against information relevant to the sector and affordability to the Union. The aggregate amount paid to key management personnel during the year was £277,213 (2019: £228,308). 

**59** 



## Who We Are 

The Baptist Union of Great Britain, a Charitable Incorporated Organisation with registered charity number 1181392 Registered and Principal Office: Baptist House, 129 Broadway, Didcot, Oxfordshire OX11 8RT. 

## **TRUSTEES** 

Mr Alastair Mitchell-Baker (Moderator) Mr John Levick (Treasurer) The Revd Lynn Green (General Secretary) Mrs Christina Carter The Revd Andrew Cowley The Revd Phil Jump Mrs Suzie Leveson (from 01 September 2020) The Revd Philip Lutterodt The Revd Prof Philip McCormack Mr Mark Spriggs The Revd Shayla Waugh (from 01 September 2020) 

## **SENIOR STAFF** 

The Revd Lynn Green (General Secretary) The Revd Andy Hughes (Team Leader, Ministries) The Revd Diane Watts (Team Leader, Faith and Society) from October 2020 Mrs Rachel Stone (Team Leader, HR and Safeguarding) Mr Richard Wilson (Team Leader, Support Services) 

## **CUSTODIAN TRUSTEES** 

The Baptist Union Corporation Limited Registered Charity Number 249635 Company Registration Number 32743 Registered office: Baptist House, 129 Broadway, Didcot, Oxfordshire OX11 8RT 

## **PRINCIPAL BANKERS** 

HSBC, 186 Broadway, Didcot, Oxfordshire OX11 8RP 

## **AUDITORS** 

Moore Kingston Smith LLP, Devonshire House, 60 Goswell Road, London, EC1M 7AD 

## **SOLICITORS** 

Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham, B3 2ES 

## **SURVEYORS** 

Rapleys LLP, 33 Jermyn Street, London SW1Y 6DN 

## **INVESTMENT MANAGERS** 

Schroders Investment Management Limited 1 London Wall, Barbican, London EC2Y 5AU 

## **BAPTIST STEERING GROUP up to 29 June 2020** 

The Revd Adrian Argile The Revd Phil Barnard The Revd Nigel Coles The Revd Stuart Davison The Revd Graham Ensor The Revd Dr Steve Finamore The Revd Lynn Green The Revd Claude Halm The Revd Andy Hughes The Revd Stephen Keyworth The Revd Beth Powney The Revd Diane Watts (from 03 February 2020) Mr Richard Wilson 

## **CORE LEADERSHIP TEAM from 29 June 2020** 

The Revd Adrian Argile The Revd Phil Barnard The Revd Mark Clay The Revd Dr John Claydon The Revd Nigel Coles The Revd Geoff Colmer The Revd Stuart Davison The Revd Dr Rob Ellis The Revd Graham Ensor The Revd Mark Fairweather-Tall The Revd Tim Fergusson The Revd Dr Steve Finamore The Revd Lynn Green The Revd Jonny Hirst The Revd Clare Hooper The Revd Andy Hughes The Revd Dr Rosa Hunt The Revd Phil Jump The Revd Dr Ed Kaneen Mr John Levick The Revd Nigel Manges The Revd Glen Marshall The Revd David Mayne The Revd Prof Philip McCormack Mr Alastair Mitchell-Baker The Revd Dr Colin Norris The Revd Yinka Oyekan The Revd Beth Powney The Revd Dr Clara Rushbrook The Revd Carl Smethurst Mrs Rachel Stone The Revd Diane Watts Mr Richard Wilson The Revd Hayley Young 

**60** 

_Painting by Yinka Oyekan_ 



## TRUSTEES’ RESPONSIBILITES 

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

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 state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: 

- Select suitable accounting policies and then apply them consistently 

- Observe the methods and principles in the Charities SORP 2019 (FRS 102) 

- Make judgements and estimates that are reasonable and prudent 

- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the Trustees are aware: 

- There is no relevant audit information of which the Charity’s auditor is unaware; 

- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

On behalf of the board 


Alastair Mitchell-Baker Moderator 

**61** 



## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE BAPTIST UNION OF GREAT BRITAIN 

## **Opinion** 

We have audited the financial statements of the Baptist Union of Great Britain (‘the charity’) and its subsidiaries (‘the group’) for the year ended 31 December 2020 which comprise the Group and Charity Statements of Financial Activities, the Group and Charity Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

- In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and charity’s affairs as at 31 December 2020, and of its incoming resources and application of resources, for the period then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the annual report. We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: 

- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or 

- the charity has not kept adequate accounting records; or 

- the charity’s financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we required for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 61, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or charity or to cease operations, or have no realistic alternative but to do so. 

**62** 

_‘Good Harvest’ by Chris Duffett_ 



**Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group and charity. 

Our approach was as follows: 

- We obtained an understanding of the legal and regulatory requirements applicable to the group and charity and considered that the most significant are the Charities Act 2011 and UK financial reporting standards as issued by the Financial Reporting Council. 

- We obtained an understanding of how the group and charity complies with these requirements by discussions with management and those charged with governance. 

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. 

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. 

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and charity’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity’s trustees as a body, for our audit work, for this report, or for the opinion we have formed. 


Moore Kingston Smith LLP Statutory auditor 

**Date: 6 May 2021** Devonshire House 60 Goswell Road London EC1M 7AD 

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. 

**63** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020** 

||||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|---|---|
||||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
|||**Notes**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Income**|||||||||
|Donations and legacies||2|4,281|116|672|-|5,069|5,121|
|Charitable Activities||3|1,510|900|682|-|3,092|2,348|
|Investment income||4|351|70|1|32|454|525|
|Other income||5|10|(2)|-|-|8|100|
|Total Income|||6,152|1,084|1,355|32|8,623|8,094|
|Less share of gross income<br>resources from Joint Venture||||(202)|||(202)|(166)|
|Total Net Income before Joint<br>Arrangement share|||6,152|882|1,355|32|8,421|7,928|
|**Expenditure**|||||||||
|Raising funds||6|51|8|-|7|66|57|
|Charitable activities||7|6,636|545|1,195|-|8,376|7,088|
|Total Expenditure||8|6,687|553|1,195|7|8,442|7,145|
|**Net income before gains/**|||||||||
|**(losses) on investments, Fixed**<br>**Asset Sales and Joint**|||**(535)**|**329**|**160**|**25**|**(21)**|**783**|
|**Arrangement share**|||||||||
|Net interest in the results of<br>the year for the joint venture|||-|17|-|-|17|(16)|
|Net gains on investments||13|(7)|(2)|(2)|2|(9)|687|
|Net gains on sale of fixed assets|||1|-|587|-|588|589|
|**Net income before transfers**|||**(541)**|**344**|**745**|**27**|**575**|**2,043**|
|Transfers between funds|20,|21, 22|(1,057)|487|595|(25)|-|-|
|**Net income before other**<br>**recognised losses**|||**(1.598)**|**832**|**1,339**|**2**|**575**|**2,043**|
|Actuarial gains on defined<br>benefit pension schemes||18|107|-|-|-|107|4|
|**Net movement in funds**|||**(1,491)**|**832**|**1,339**|**2**|**682**|**2,047**|
|**RECONCILIATION OF FUNDS**|||||||||
|Total funds brought forward|||12,626|(8,504)|33,280|1,109|38,511|36,464|
|**Total funds Carried forward**|||**11,135**|**(7,672)**|**34,619**|**1,111**|**39,193**|**38,511**|



There were no recognised gains or losses other than those shown in the Statement of Financial Activities. There were no acquisitions or discontinued operations during either of the above two financial years. 

The notes on pages 6 9 to 86 form an integral part of these financial statements. 

**64** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **YEAR ENDED 31 DECEMBER 2020** 

||||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|---|---|
||||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
|||**Notes**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Income**|||||||||
|Donations and legacies||2|4,478|666|19|-|5,163|6,877|
|Charitable Activities||3|232|697|-|-|929|830|
|Investment income||4|203|70|-|32|305|298|
|Other income||5|10|(2)|-|-|8|109|
|Total Income|||4,923|1431|19|32|6,405|8,114|
|**Expenditure**|||||||||
|Raising funds||6|47|8|-|7|62|57|
|Charitable activities||7|5,032|1,192|6|-|6,230|6,488|
|Total Expenditure||8|5,079|1,200|6|7|6,292|6,545|
|**Net income before gains/ (losses)**|||||||||
|**on investments, Fixed Asset**|**Sales**||(156)|231|13|25|113|1,569|
|**and Revaluations**|||||||||
|Net gains/(losses) on investments||13|(7)|(1)|-|2|(6)|682|
|Net gains/(losses) on sale of fixed|||1|-|-|-|1|35|
|assets|||||||||
|**Net income before transfers**|||**(162)**|**230**|**13**|**27**|**108**|**2286**|
|Transfers between funds|20,|21, 22|(560)|585|-|(25)|-|-|
|**Net income before other**<br>**recognised gains**|||**(722)**|**815**|**13**|**2**|**108**|**2,286**|
|Actuarial gains on defined benefit<br>pension schemes||18|107|-|-|-|107|4|
|**Net movement in funds**|||**(615)**|**815**|**13**|**2**|**215**|**2,290**|
|**RECONCILIATION**|||||||||
|**OF FUNDS**|||||||||
|Total funds brought forward|||8,362|(6,865)|197|1,109|2,804|514|
|**Total funds Carried forward**|||**7,747**|**(6,050)**|**210**|**1,111**|**3,018**|**2,804**|



There were no recognised gains or losses other than those shown in the Statement of Financial Activities. There were no acquisitions or discontinued operations during either of the above two financial years. 

The notes on pages 6 9 to 86 form an integral part of these financial statements. 

**65** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2020** 

||**Notes**|**2020**|**2020**|**2019**|**2019**|
|---|---|---|---|---|---|
|||**£’000**|**£’000**|**£’000**|**£’000**|
|**Fixed assets**||||||
|Tangible assets|12|42,839||42,399||
|Intangible Assets|12|157||-||
|Investments|13|10,580||10,625||
||||**53,576**||**53,024**|
|**Current assets**||||||
|Debtors|14|20,583||17,436||
|Cash and Bank|15|20,875||24,251||
|||**41,458**||**41,687**||
|**Current liabilities**||||||
|Creditors:||||||
|Amounts falling due within one year|16|**(55,633)**||**(55,866)**||
|**Net current liabilities**|||**(14,175)**||**(14,179)**|
|**Total assets less current liabilities**|||**39,401**||**38,845**|
|**Provision for liabilities**||||||
|Defined Benefit pension scheme liability|18, 25||(208)||(334)|
|**Net assets**|||**39,193**||**38,511**|
|**CONSOLIDATED FUNDS**||||||
|Endowment funds|20||1,111||1,109|
|Restricted income funds|21||34,619||33,280|
|Designated funds|22||(7,672)||(8,504)|
|Unrestricted income funds|||11,135||12,626|
|**Total consolidated funds**|||**39,193**||**38,511**|



The financial statements were approved by the Trustees on and signed on 5[th] May 2021 their behalf by 


Alastair Mitchell - Baker  - Moderator 


John Levick – Treasurer 

The notes on pages 6 9 to 86 form an integral part of these financial statements. 

**66** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **BALANCE SHEET AT 31 DECEMBER 2020** 

||**Notes**|**2020**|**2020**|**2019**|**2019**|
|---|---|---|---|---|---|
|||**£’000**|**£’000**|**£’000**|**£’000**|
|**Fixed assets**||||||
|Tangible assets|12|5,633||6,099||
|Intangible Assets|12|157||-||
|Investments|13|12,172||12,232||
||||**17,962**||**18,331**|
|**Current assets**||||||
|Debtors|14|2,809||1,677||
|Cash and Bank|15|2,710||3,925||
|||**5,519**||**5,602**||
|**Current liabilities**||||||
|Creditors:||||||
|Amounts falling due within one year|16|(255)||(795)||
|**Net current assets**|||**5,264**||**4,807**|
|**Total assets less current liabilities**|||**23,226**||**23,138**|
|**Long-Term liabilities**||||||
|Loan|17||(20,000)||(20,000)|
|**Provision for liabilities**||||||
|Defined Benefit pension scheme liability|18, 25||(208)||(334)|
|**Net assets**|||**3,018**||**2,804**|
|**THE FUNDS OF THE CHARITY**||||||
|Endowment funds|20||1,111||1,109|
|Restricted income funds|21||210||197|
|Designated funds|22||(6,050)||(6,865)|
|Unrestricted income funds|||7,747||8,363|
|**Total charity funds**|||**3,018**||**2,804**|



The financial statements were approved by the Trustees on and signed on 5[th] May 2021 their behalf by 


Alastair Mitchell - Baker  - Moderator 


John Levick – Treasurer 

The notes on pages 6 9 to 86 form an integral part of these financial statements. 

**67** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **CONSOLIDATED STATEMENT OF CASH FLOWS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2020** 

||**Notes**|**2020**|**2019**|
|---|---|---|---|
|||**£’000**|**£’000**|
|**Net income for the reporting year**||**575**|**2,043**|
|Adjustments for:||||
|Net gains on investments|13|9|(687)|
|Net interest in result of Baptist House Limited||(17)|16|
|**Net income after gains on investment**||**567**|**1,372**|
|Adjustments for:||||
|Depreciation|12|159|160|
|Dividends and interest from investments||(454)|(525)|
|Net gains on sale of fixed assets||(588)|(589)|
|Net gains on exchange rate of investments||-|(42)|
|(Increase)/Decrease in debtors||(3,147)|(485)|
|Increase/(Decrease) in creditors and provisions||(233)|4,976|
|Movement in defined benefit liability||(7)|(384)|
|**Net cash provided by operating activities**||**(3,703)**|**4,483**|
|**Cash flows from investing activities**||||
|Dividends and interest from investments||454|525|
|Proceeds from sale of property||1,893|2,462|
|Purchase of tangible fixed assets||(2,062)|(2,734)|
|Proceeds from sales of investments||2,021|2,241|
|Purchase of investments||(2,277)|(2,504)|
|Cash withdrawn from investment managers||298|291|
|**Net cash used in investing activities**||**327**|**281**|
|**Changes in cash and cash equivalents in the year**||**(3,376)**|**4,764**|
|Cash and cash equivalents brought forward||24,251|19,487|
|**Cash and cash equivalents carried forward**|15|**20,875**|**24,251**|



The notes on pages 6 9 to 86 form an integral part of these financial statements. 

**68** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **1 ACOUNTING POLICIES** 

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: 

- Endowment Funds: These represent amounts where the income may be used but where the capital is not expendable as set out in note 20. 

## **(a) Basis of Accounting** 

The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)), Financial Reporting Standard 102 and the Charities Act 2011. Baptist Union of Great Britain is a registered charity, no. 1181392, and meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 

Following the change in legal form of the charity from an unincorporated association to a Charitable Incorporated Organisation, the financial statements have been prepared using merger accounting. As a result the financial statements include the results of the combined charities for the whole of the reporting period and the comparatives show the results of the combining charities for the previous reporting period. 

## **(b) Basis of Consolidation** 

Where control is exercised by the parent charity over another entity, these entities are consolidated as subsidiaries on a line by line basis in accordance with FRS102 – section 9 and the Charities SORP (FRS102). The charity’s interests in a joint arrangement are accounted for using the equity method in accordance with FRS102. The joint arrangement is accounted for by including the charity’s share of the income, expenditure, assets and liabilities relating to the activity of the joint arrangement. Details of the entities and interests are given in note 14 to the financial statements.  Where an entity’s reporting period end differs from that of the parent, the consolidated financial statements include the financial statements of the subsidiary as of its last reporting date before the parent’s reporting date, as adjusted for the effects of significant transactions or events that occur between the date of those financial statements and the date of the consolidated financial statements. Details on an entity by entity basis are given in note 14. 

- **(c) Preparation of the financial statements on a going concern basis** 

The Trustees consider that there are sufficient reserves held at year end to manage any foreseeable downturn in the economy in the UK. In particular, the Trustees have considered the effect of the COVID19 outbreak and the measures taken to contain it on the charity’s operations. As detailed more fully in the Trustees Report, in response to the pandemic the Union and BUC has provided a range of support to churches including loan repayment holidays, reduced payments and interest free periods. Whilst this, together with lower interest rates and the need to provide against some loans led to a lower surplus being reported for the period, there is no significantly impact on the Group  due to its strong reserves position. The Trustees therefore have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity has therefore continued to adopt the going concern basis in preparing its financial statements. 

## **(d) Funds Accounting** 

- Unrestricted Funds: General unrestricted funds represent funds which are expendable at the discretion of the Union in the furtherance of the objects of the charity and which have not been designated for other purposes. These funds are known as the Home Mission Fund. Such funds may be held to finance both working capital and capital investment. 

- Designated Funds: These represent amounts set aside by the Union for specific purposes as set out in note 22. They may be returned to General Funds at the discretion of the Union. 

- Restricted Funds: These represent amounts which have been restricted by the donors for use for specific purposes as set out in note 21. 

## **(e) Income** 

Income is recognised in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that income will be received and the amount can be measured reliably. 

   - Donations are accounted for gross when received. 

   - Legacies are accounted for at the earlier of the Estate accounts being finalised and notified, and cash received. 

   - Subscription income is accounted for gross when received. 

   - Funds received under Ultimate Trusts are accounted for when received. 

   - Interest receivable from loans is accounted for on an accrual’s basis. 

   - Accommodation fees charged on loans which remain undrawn after 6 months are recognised on an accrual’s basis. 

   - Trading income is accounted for in the period in which the associated event takes place. 

   - Investment income is accounted for when received or on an accruals basis where the amount can be measured reliably, and entitlement is certain. 

- **(f) Expenditure** 

   - Expenditure is recognised in the Statement of Financial Activities once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. 

   - Costs of raising funds represents publicity material and promotion of the Union and the Home Mission Fund, and investment management fees. 

   - Charitable activities represent expenditure in the furtherance of the object of the Union. 

   - Grants payable are agreed on an annual basis and accounted for in the year in which they are committed. Multi-year grants are subject to performance conditions and are only recognised to the extent that conditions under the control of the Charity are met. 

   - Support costs represent central finance and computer facilities, fixed asset depreciation, storage, insurance and stationery, together with an appropriate allowance for salaries and other office costs. 

Support and Governance costs are allocated to charitable activities in proportion to the direct charitable expenditure on that activity, where the charity considers that support costs are incurred as part of the delivery of that activity.  Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 

## **(g) Tangible fixed assets** 

Depreciation is calculated to write off the cost of assets on a straight-line basis over their expected useful life, at the following rates: 

|tes:||
|---|---|
|Land|Not depreciated|
|Non-residential Freehold Buildings|2%|
|Furniture and fittings|10% and 25%|
|Computers and equipment|20% and 33%|



Freehold residential buildings are maintained during the period of ownership such that the overall difference between residual values and carrying value are not material and as a result no depreciation is provided. Depreciation is provided on long leasehold properties over the remaining life of the lease. Annual reviews are undertaken by the Trustees at each balance sheet date to assess whether there is an indication of impairment. These reviews involve assessing current property market conditions and their impact on the estimated market values of the Union’s properties. Any material deficit between the anticipated recoverable amount of freehold 

**69** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

- property and its cost is recognised in the statement of financial activities. 

## **(h) Intangible fixed assets** 

Amortisation is calculated to write off the cost of assets on a straight-line basis over their expected useful life, at the following rates: Computers software 20% and 33% 

Annual reviews are undertaken by the Trustees at each balance sheet date to assess whether there is an indication of impairment. 

**(i) Fixed asset investments** Quoted investments are held for their income generation and investment potential and are valued at market value at the reporting date. Any surplus or deficit arising is included in the Statement of Financial Activities. Investments in subsidiaries are measured at cost less impairment. 

**(j) Investment Property** Investment property is property deemed to be held for financial gain and is carried as the Trustees best estimate of valuation. It includes the proportion of a Baptist House (a mixed-use property) that is let out on a commercial basis. The Trustees review the valuation annually and changes in value are reported in the Statement of Financial Activities. 

## **(k) Debtors** 

Accrued income is recognised in the period to which it relates.  Loans are considered concessionary loans made as they are made by the charity to further its purposes.  Loans are initially measured at the amount paid, with the carrying amount adjusted subsequently to reflect repayments and any interest receivable.  Where any loan made is considered to be irrecoverable an impairment loss is recognised. Prepayments and other debtors are recognised at the settlement amount due. Debtors are measured at their recoverable amount. 

- **(l) Cash at bank and in hand** Cash at bank and in hand includes notice deposits and short-term deposits. 

## **(m) Creditors** 

- Creditors 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. Accruals and other creditors are recognised at their settlement amount due. Trust accounts and loan fund deposits are recognised where held at the amount received and the carrying amount is adjusted to reflect any interest payable.  Loans are considered concessionary loans received as they are made to the charity to further its purposes and any interest charged is below the prevailing market rates. 

## **(m) Financial instruments** 

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments.  Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **(n) Employee benefits** 

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 payment obligations.  The contributions are recognised as an expense when they are 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 fund. Prior to 2012 pension provision 

was made through multi-employer defined benefit pension plans. Where it is not possible for the charity to obtain sufficient information to enable it to account for a plan as a defined benefit plan, it accounts for the plan as a defined contribution plan. Where the plan is in deficit and where the charity has agreed, with the plan, to participate in a deficit funding arrangement, the charity recognises a liability for this obligation.  The amount recognised is the net present value of the contributions payable under the agreement that relate to the deficit.  This amount is expensed in the Statement of Financial Activities.  The unwinding of the discount is recognised as a finance cost. A liability for the agreed pension scheme deficit plan of the Baptist Union Staff Pension Scheme has been included based on an estimate of the remaining costs to complete the wind up of the scheme. A liability for the agreed pension scheme deficit plan of the Baptist Pension Scheme has been included, in accordance with the Schedule of Contributions dated 30 September 2020. 

## **(o) Taxation** 

Included within the consolidation are charitable companies that are considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore meet the definition of a charitable company for UK corporation tax purposes.  Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## **(p) Judgement and Key Sources of Estimations Uncertainty** 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Estimates based on externally published data are also made for investment properties. 

- (a) Judgements in applying the entity’s accounting policies 

- (i) Multi-employer defined benefit pension schemes: Certain employees participate in multi-employer defined benefit pension schemes with other organisations. In the judgement of the Trustees, the charity does not have sufficient information on the plan assets and liabilities to be able to reliably account for its share of the defined benefit obligation and plan assets. Therefore, the schemes are accounted for as defined contribution schemes: see note 25 for further details. 

- (b) Accounting estimates and assumptions 

- (ii) Multi-employer defined benefit pension scheme: The charity has an obligation to pay a deficit funding arrangement in respect of two multi-employer defined benefit pension schemes (Baptist Pension Scheme and Baptist Union Staff Pension Scheme). The present value of the obligation depends on a number of factors including the RPI rate and the discount rate on corporate bonds. Management estimates these factors in determining the new pension obligation in the balance sheet. 

- (iii) Useful economic lives of tangible assets: The annual depreciation charge of tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the fixed assets and note 1(g) for the useful economic lives for each class of assets. 

- (iv) Bad Debt provisions: The recoverability of loans is assessed annually, and at the balance sheet date provisions for doubtful debts are provided based on prior year experiences. 

**70** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**2**|**DONATIONS AND LEGACIES**|||||||
|---|---|---|---|---|---|---|---|
||**Consolidated**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
||Donations|3,620|116|38|-|3,774|4,588|
||Legacies|185|-|634|-|819|569|
||Subscriptions|476|-|-|-|476|514|
||Gifts from other Baptist|-|-|-|-|-|(550)|
||Constituents|||||||
||**Total**|**4,281**|**116**|**672**|**-**|**5,069**|**5,121**|



In 2019, £151k of charitable activities income was attributed to Designated Funds, £397k was attributable to Restricted Funds and the remaining £4,573k was attributable to Unrestricted Funds. 

|**Charity**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Donations|3,620|116|19|-|3,755|5,820|
|Legacies|185|-|-|-|185|286|
|Subscriptions|475|-|-|-|475|514|
|Other Baptist|198|550|-|-|748|257|
|**Total**|**4,478**|**666**|**19**|**-**|**5,163**|**6,877**|



In 2019, £1,969k of charitable activities income was attributed to Designated Funds, £78k was attributable to Restricted Funds and the remaining £4,830k was attributable to Unrestricted Funds. 

## **3 CHARITABLE ACTIVITIES** 

|**Consolidated**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Publication sales|7|-|-|-|7|9|
|Rent|116|-|679|-|795|666|
|Funds received under|-|698|-|-|698|654|
|Ultimate Trusts|||||||
|Interest receivable from|1,203|-|-|-|1,203|645|
|loans|||||||
|Expenses receivable on|64|-|-|-|64|74|
|trusts|||||||
|Fee for operating gift aid|3|-|-|-|3|4|
|scheme|||||||
|Accommodation fees|6|-|-|-|6|-|
|Trading Income|109|-|3|-|112|109|
|Debt Recovered – BSBS|-|-|-|-|-|15|
|Other Income|2|-|-|-|2|6|
|Income: Joint Venture|-|202|-|-|202|166|
|**Total**|**1,510**|**900**|**682**|**-**|**3,092**|**2,348**|



The Trustees of the Charity have agreed to designate monies received by the Charity as the beneficiary of Ultimate Trust provisions under the Trust Deeds of closing churches and other organisations, to the Pension Reserve Fund.  In 2019, £835k of the charitable activities income was attributable to Designated Funds, £623 was attributed to Restricted Funds, and the remaining £890k was attributable to Unrestricted Funds. 

**71** 



## **BAPTIST UNION OF GREAT BRITAIN** 

**NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

**3 CHARITABLE ACTIVITIES (continued)** 

|**Charity**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Publication sales|6|-|-|-|6|9|
|Rent|116|-|-|-|116|47|
|Funds received under|-|697|-|-|697|654|
|Ultimate Trusts|||||||
|Trading Income|110|-|-|-|110|105|
|Debt Recovery|-|-|-|-|-|15|
|**Total**|**232**|**697**|**-**|**-**|**929**|**830**|



Monies received by the Charity as the beneficiary of Ultimate Trust provisions under the Trust Deeds of closing churches and other organisations.  The Trustees of the Charity have agreed to designate such receipts to the Pension Reserve Fund. 

In 2019, £669k was attributable to Designated Funds, and the remaining £161k was attributable to Unrestricted Funds. 

## **4 INVESTMENT INCOME** 

|**ESTMENT INCOME**|||||||
|---|---|---|---|---|---|---|
|**Consolidated**|||||||
||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Quoted Investments:|||||||
|UK listed Bonds|40|5|-|6|51|62|
|UK listed Equities|65|9|1|11|86|74|
|Overseas listed Equities|58|8|-|11|77|93|
|Overseas listed Bonds|23|3|-|4|30|-|
|UK Property Unit Trusts|-|-|-|||36|
|Other:|||||||
|Interest on Cash Deposits|165|-|-|-|165|194|
|Other|-|45|-|-|45|66|
|Total|**351**|**70**|**1**|**32**|**454**|**525**|



In 2019, £450k of the investment income was attributable to Unrestricted income funds, £29k was attributable to designated income funds, £9k was attributed to restricted income funds, and the remaining £37k was attributable to endowment income funds. 

## **Charity** 

|**Charity**|||||||
|---|---|---|---|---|---|---|
||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Quoted Investments:|||||||
|UK listed Bonds|40|5|-|6|51|63|
|UK listed Equities|65|9|-|11|85|72|
|Overseas listed Equities|58|8|-|10|76|93|
|Overseas listed Bonds|-|-|-|-|-|-|
|UK Property Unit Trusts|23|3|-|5|31|36|
|Other:|||-||||
|Interest on Cash Deposits|17|-|-|-|17|16|
|Other||45|-|-|45|18|
|Total|**203**|**70**|**-**|**32**|**305**|**298**|



In 2019 £232k of the investment income was attributable to Unrestricted income funds, £29k was attributable to Designated income funds, and the remaining £37k was attributable to endowment income funds. 

**72** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

|**5**|**OTHER INCOME**||||||||
|---|---|---|---|---|---|---|---|---|
||**Consolidated**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**||**Total**|
|||**Funds**|**Funds**|**Funds**|**Funds**|**2020**||**2019**|
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**||**£’000**|
||Other income|10|(2)|-|-||8|100|
||**Total**|**10**|**(2)**|**-**|**-**||**8**|**100**|



In 2019, £49k of other costs was related to Unrestricted funds, and the remaining £51 was related to Designated Funds. 

|unds.||||||||
|---|---|---|---|---|---|---|---|
|**Charity**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**||**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**||**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**||**£’000**|
|Other income|10|(2)|-|-||8|109|
|**Total**|**10**|**(2)**|**-**|**-**||**8**|**109**|



In 2019, £58k of other costs was related to Unrestricted funds, and the remaining £51k was related to Designated Funds. 

## **6 RAISING FUNDS** 

|**ISING FUNDS**|||||||
|---|---|---|---|---|---|---|
|**Consolidated**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Investment|51|5|-|7|63|53|
|Publication expenses||3|-||3|4|
|**Total**|**51**|**8**|**-**|**7**|**66**|**57**|



In 2019, £7k of costs in relation to raising funds was attributable to Endowment funds, £5k was attributable to Designated funds, and the remaining £45k was attributable to Unrestricted funds. 

|**Charity**|**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
|---|---|---|---|---|---|---|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Investment|47|5|-|7|59|53|
|Publication expenses|-|3|-|-|3|4|
|**Total**|**47**|**8**|**-**|**7**|**62**|**57**|



In 2019, £7k of costs in relation to raising funds was attributable to Endowment funds, £5k was attributable to Designated funds, and the remaining £45k was attributable to Unrestricted funds. 

**73** 



## **BAPTIST UNION OF GREAT BRITAIN** 

**NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **7 CHARITABLE ACTIVITIES Consolidated** 

|**ARITABLE ACTIVITIES**<br>**Consolidated**|||||||
|---|---|---|---|---|---|---|
||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Regional Association|||||||
|- Mission & Operations|2,944|-||-|2,944|3,158|
|Faith & Society|||||||
|- Team Costs|799|90||-|889|936|
|- Baptist Assembly|-|(2)||-|(2)|51|
|- Ecumenical|61|-||-|61|59|
|- Other grants|93|-||-|93|93|
|Ministries|||||||
|- Team Costs|481|54||-|535|417|
|- Mission Grants|116|30||-|146|164|
|- Student Training|131|-||-|131|169|
|Safeguarding|||||||
|- Team Costs|377|43||-|420|519|
|Support Services|||||||
|- Advice & Information|30|3||-|33|38|
|- Pension Cost|-|2||-|2|56|
|- BSBS|-|(1)||-|(1)||
|- Benevolent Funds|-|326|6|-|332|76|
|Other|||||||
|- Retirement Housing|-|-|1,189|-|1,189|428|
|- BU Corporation|1,604|-|-|-|1,604|924|
|**Total**|**6,636**|**545**|**1,195**|**-**|**8,376**|**7,088**|



In 2019, £494k of costs in relation to charitable activities was attributable to Restricted funds, £297k was attributable to Designated funds, and the remaining £6,297k was attributable to Unrestricted funds. 

|**Charity**|||||||
|---|---|---|---|---|---|---|
||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Regional Association|||||||
|- Mission & Operations|2,944|-|-|-|2,944|3,158|
|Faith & Society|||||||
|- Team Costs|798|90|-|-|888|936|
|- Baptist Assembly|-|(2)|-|-|(2)|51|
|- Ecumenical|61|-|-|-|61|59|
|- Other grants|93|-|-|-|93|93|
|Ministries|||||||
|- Team Costs|481|55|-|-|536|416|
|- Mission Grants|116|30|-|-|146|164|
|- Student Training|131|-|-|-|131|169|
|Safeguarding|||||||
|- Team Costs|378|42|-|-|420|519|
|Support Services|||||||
|- Advice & Information|30|3|-|-|33|38|
|- Pension Costs||649|-|-|649|809|
|- BSBS||(1)|-|-|(1)|-|
|- Benevolent Funds||326|6|-|332|76|
|**Total**|**5,032**|**1,192**|**6**|**-**|**6,230**|**6,488**|



In 2019, £80k of costs in relation to charitable activities was attributable to Restricted funds, £1,050k was attributable to Designated funds, and the remaining £5,358k was attributable to Unrestricted funds. 

**74** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **8 ALTERNATIVE ANALYSIS OF EXPENDITURE** 

|||**Consolidated**|**Direct**|**Grants**|**Support**|**TOTAL**|**TOTAL**|
|---|---|---|---|---|---|---|---|
||||**Charitable**||**Costs**|**2020**|**2019**|
|||||**(note 24)**|**(note 9)**|||
||||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|||Regional Association||||||
|||- Grants & Operational Funding||2,944||2,944|3,158|
|||Faith & Society||||||
|||- Team Costs|449||440|889|936|
|||-  Baptist Assembly|(2)|||(2)|51|
|||- Ecumenical||61||61|59|
|||- Other grants||93||93|93|
|||Ministries||||||
|||- Team Costs|225|-|310|535|417|
|||- Mission Grants|146|||146|164|
|||- Student Training||131||131|169|
|||Safeguarding||||||
|||- Team Costs|203||217|420|519|
|||Support Services||||||
|||- Advice & Information|30||3|33|38|
|||- Pension Costs|2|||2|56|
|||- BSBS|(1)|||(1)||
|||- Benevolent Funds||332||332|76|
|||Other||||||
|||- Retirement Housing|1,150||39|1,189|428|
|||- BU Corporation|1,530||74|1,604|924|
||||**3,732**|**3,561**|**1,083**|**8,376**|**7,088**|
|||Cost of raising funds|66|-|-|66|57|
|||**Total**|**3,798**|**3,561**|**1,083**|**8,442**|**7,145**|
|In|2019|£2,580k related to Direct Charitable|expenditure, £3,518k|to Grants and|£1,047k to|Support Costs||
|||**Charity**|**Direct**|**Grants**|**Support**|**TOTAL**|**TOTAL**|
||||**Charitable**||**Costs**|**2020**|**2019**|
|||||**(note 24)**|**(note 9)**|||
||||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|||Regional Association||||||
|||- Grants & Operational Funding|-|2,943|-|2,943|3,159|
|||Faith & Society||||||
|||- Team Costs|449|-|440|889|935|
|||- Baptist Assembly|(2)|-|-|(2)|51|
|||- Ecumenical|-|61|-|61|59|
|||- Other grants|-|93|-|93|93|
|||Ministries||||||
|||- Team Costs|224|-|311|535|416|
|||- Mission Grants|146|-|-|146|164|
|||- Student Training|-|131|-|131|169|
|||Safeguarding||||||
|||- Team Costs|203|-|217|420|519|
|||Support Services||||||
|||- Advice & Information|30|-|3|33|38|
|||- Pension Deficit|649|-|-|649|809|
|||Cessation||||||
|||- BSBS|(1)|-|-|(1)|-|
|||- Benevolent Funds|-|332|-|332|76|
||||1,698|3,561|971|6,230|6,488|
|||Cost of raising funds|62|-|-|62|57|
|||**Total**|**1,760**|**3,561**|**971**|**6,292**|**6,545**|



In 2019 £2,099k related to Direct Charitable expenditure, £3,518k to Grants and £928k to Support Costs 

**75** 



## **BAPTIST UNION OF GREAT BRITAIN** 

**NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **9 SUPPORT COSTS** 

|**PPORT COSTS**|||||||
|---|---|---|---|---|---|---|
|**Consolidated**|||||||
||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Staff|386|-|-|-|386|352|
|Depreciation|37|116|-|-|153|153|
|Property|64|-|-|-|64|61|
|Insurance|10|-|-|-|10|9|
|Printing and postage|8|-|-|-|8|14|
|IT|129|-|-|-|129|116|
|Other Office Costs|14|-|-|-|14|2|
|Bank charges|10|-|-|-|10|12|
|Office facilities|8|-|-|-|8|18|
|Strategic Projects|21|-|-|-|21|11|
|Pension Deficit|7|-|-|-|7|11|
|**Total**|694|116|-|-|810|759|
|**Governance costs**|||||||
|Annual Assembly|3|-|-|-|3|23|
|Council|2|-|-|-|2|23|
|Committees|11|-||-|11|29|
|Auditors’ remuneration|68|-|12|-|80|57|
|(note 11)|||||||
|Legal and Professional|85|48|27|-|160|132|
|Trustee Insurance|17|-|-|-|17|24|
|**Total Governance costs**|186|48|39|-|273|288|
|**Total Support costs**|**880**|**164**|**39**|**-**|**1,083**|**1,047**|



In 2019, £65k of support costs were attributable to Restricted funds £137k were attributable to Designated funds, and the remaining £845k was attributable to Unrestricted funds. 

**76** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **9 SUPPORT COSTS (Continued)** 

|**Charity**|||||||
|---|---|---|---|---|---|---|
||**Unrestricted**|**Designated**|**Restricted**|**Endowment**|**Total**|**Total**|
||**Funds**|**Funds**|**Funds**|**Funds**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Staff|387|-|-|-|387|352|
|Depreciation|37|116|-|-|153|152|
|Property|64|-|-|-|64|62|
|Insurance|10|-|-|-|10|9|
|Printing and postage|8|-|-|-|8|14|
|IT|129|-|-|-|129|116|
|Other Office Costs|13|-|-|-|13|3|
|Bank charges|10|-|-|-|10|12|
|Office facilities|8|-|-|-|8|17|
|Strategic Projects|21|-|-|-|21|11|
|Pension Deficit|7|-|-|-|7|11|
|**Total**|694|116|-|-|810|759|
|**Governance costs**|||||||
|Annual Assembly|3|-|-|-|3|23|
|Council|3|-|-|-|3|23|
|Committees|11|-|-|-|11|29|
|Auditors’ remuneration|45|-|-|-|45|28|
|Legal and Professional|40|48|-|-|88|52|
|Trustee Insurance|11|-|-|-|11|14|
|**Total Governance costs**|113|48|-|-|161|169|
|**Total Support costs**|**807**|**164**|**-**|**-**|**971**|**928**|



In 2019, £136k of support costs were attributable to Designated funds, £7k were attributed to Restricted funds, and the remaining £785k was attributable to Unrestricted funds. 

## **10 NET INCOME FOR THE YEAR** 

|**T INCOME FOR THE YEAR**||||||
|---|---|---|---|---|---|
|||**Consolidated**||**Charity**||
|||**2020**|**2019**|**2020**|**2019**|
|||**£’000**|**£’000**|**£’000**|**£’000**|
|This is stated after charging/(crediting):||||||
|Depreciation/amortisation||159|153|153|152|
|Auditors’ remuneration:||||||
|Audit work||62|44|32|22|
|Audit work - previous year||18|-|13|-|
|Non-audit work||-|6||6|
|**PLOYEES AND TRUSTEES**||||||
|||**Consolidated**|||**Charity**|
||**Note**|**2020**|**2019**|**2020**|**2019**|
|||**£’000**|**£’000**|**£’000**|<br>**£’000**|
|**Staff and appointed minister costs:**||||||
|Salaries and stipends||1,440|1,262|1,440|1,262|
|Social security costs||119|103|119|103|
|Pension costs|**27**|136|109|136|109|
|Other costs|||6||6|
|||**1,695**|**1,480**|**1,695**|**1,480**|
|Less: Attributable to other Baptist entities||(203)|(211)|(486)|<br>(462)|
|**Total**||**1,492**|**1,269**|**1,209**|**1,01**|
|Average number employees during the year:||42|42|32|32|



## **11 EMPLOYEES AND TRUSTEES** 

**77** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **11 EMPLOYEES AND TRUSTEES (continued)** 

No employee received emoluments in between the band of £60,000 to £70,000 during the year (2019: one). 

Total aggregate remuneration paid to key management personnel during the year was £277,213 (2019: £228,308). 

Trustee emoluments, including pension contributions of £7,431 (2019: £3,774), were paid for one trustee (2019: 1), Rev. Lynn Green, amounting to £55,231 (2019: £37,150). Her appointment as trustee is in accordance with the Union’s constitution. No emoluments were paid to any other trustees for their work as Trustees. 

One trustee (2019: one) received a Study grant of £600 (2019: £600) and no trustee (2019: one) received a pastoral grant (2019: £300). Applications had been treated in exactly the same way as all other grant applications. No emoluments were paid to any of the other trustees for their work as Trustees. 

A total of £922 was paid to 8 Trustees in reimbursement of travelling and subsistence expenses as Trustees (2019: £5,765 to 8 Trustees). 

## **12 TANGIBLE AND INTANGIBLE FIXED ASSETS** 

|**Consolidated**||**TANGIBLE**|**FIXED ASSETS**||**TANGIBLE**|**INTANGIBLE**|**GRAND**|
|---|---|---|---|---|---|---|---|
||**Freehold**|**Leasehold**|<br>**Computer**|**Furniture**|**Total**|**Computer**|**Total**|
||**Properties**|**Properties**|<br>**Equipment**|**Fittings**||**Software**|**2020**|
|**Cost**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|1 January 2020|41,335|1,362|193|79|42,970|-|42,970|
|Reclassification Tfr|-|-|(126)|-|(126)|126|-|
|Additions|1,799|132|-|2|1,933|129|2,062|
|Disposals|(1,162)|(168)|-|-|(1,330)|-|(1,330)|
|**31 December 2020**|**41,972**|**1,326**|**67**|**81**|**43,446**|**255**|**43,701**|
|**Depreciation/Amortisation**||||||||
|1 January 2020|313|59|145|54|571|-|571|
|Reclassification Tfr|-|-|(87)|**-**|(87)|87|-|
|Charge for the year|116|6|6|19|147|11|158|
|Disposals|(9)|(15)|-|-|(25)|-|(24)|
|**31 December 2020**|**420**|**50**|**64**|**73**|**607**|**98**|**705**|
|**Net Book Value**||||||||
|**31 December 2020**|**41,552**|**1,276**|**3**|**8**|**42,839**|**157**|**42,996**|
|31 December 2019|41,023|1,303|48|25|42,360|-|42,399|
|**Charity**||**TANGIBLE**|**FIXED ASSETS**||**TANGIBLE**|**INTANGIBLE**|**GRAND**|
||**Freehold**|**Leasehold**|<br>**Computer**|**Furniture**|**TOTAL**|**Computer**|**TOTAL**|
||**Properties**|**Properties**|<br>**Equipment**|**Fittings**||**Software**||
|**Cost**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|1 January 2020|6,340|-|193|79|6,612|-|6,612|
|Reclassification Tfr|-|-|(126)|-|(126)|126|-|
|Additions|36||-|2|38|129|167|
|Disposals|(332)||-|-|(332)|-|(332)|
|**31 December 2020**|**6,042**|**-**|**67**|**81**|**6,190**|**255**|**6,446**|
|**Depreciation/Amortisation**||||||||
|1 January 2020|314|-|145|54|513|-|513|
|Reclassification Tfr|-|-|(87)|-|(87)|87|-|
|Charge for the year|116||6|20|142|11|153|
|Disposals|(10)||-|-|(10)|-|(10)|
|**31 December 2020**|**420**|**-**|**64**|**74**|**558**|**98**|**656**|
|**Net Book Value**||||||||
|**31 December 2020**|**5,622**|**-**|**3**|**7**|**5,633**|**157**|**5,790**|
|31 December 2019|6,026|-|9|25|6,060|39|6,099|



**78** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **13 FIXED ASSET INVESTMENTS** 

|**XED ASSET INVESTMENTS**|||||||
|---|---|---|---|---|---|---|
|**Consolidated**||**Quoted at**|**Cash with**|**Investment**|**Total**|**Total**|
|||**market value**|**Managers**|**Property**|**2020**|**2019**|
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Balance at 1 January||8,338|121|2,045|10,504|9,845|
|Additions||1,196|1,081||2,277|2,504|
|Disposals||(809)|(1,226)||(2035)|(2,241)|
|Realised and unrealised||(402)|395||(7)|687|
|gains/(losses)|||||||
|Withdrawals||-|(298)||(298)|(291)|
|**Balance at 31 December**||**8,323**|**73**|**2,045**|**10,441**|**10,504**|
|Add / (deduct) share of net assets of Baptist||House Limited|||139|121|
|**Total Fixed Asset Investments**|||||**10,580**|**10,625**|
|Historical Costs of Investments|||||7,918|7,485|
|**Charity**|**Unquoted**|**Quoted at**|**Cash with**|**Investment in**|**Total**|**Total**|
||**at cost**|**market value**|**Managers**|**Property**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Balance at 1 January|**1,760**|**8,305**|**121**|**2,046**|**12,232**|**8,338**|
|Additions|-|1,196|1,081|-|2,277|1,196|
|Disposals|-|(806)|(1,196)|-|(2002)|(809)|
|Realised and unrealised<br>gains/(losses)|-|(402)|365|-|(37)|(402)|
|Withdrawals|-|-|(298)|-|(298)|**-**|
|**Balance at 31 December**|**1,760**|**8,293**|**73**|**2,046**|**12,172**|**12,232**|
|Historical cost of investments|||||7,918|7,485|
|**The following investments exceeded**|||||**2020**|**2019**|
|**5% of the total portfolio:**|||||**£’000**|**£’000**|
|Royal London Ethical Bond Fund|||||1,353|1,293|
|Charities Property Fund|||||591|615|
|**Unquoted investments at cost**|||||**2020**|**2019**|
||||||**£’000**|**£’000**|
|Baptist House Ltd|||||300|300|
|Baptist Union Corporation Ltd|||||1,460|1,460|
|**Total unquoted investment at cost**|||||**1,760**|**1,760**|



The unquoted investments represent 50% of share capital of Baptist House Limited and The Union’s capital loan to the Baptist Union Corporation Limited which provides the capital for the Baptists Together Loan fund. 

The following entities have been consolidated because of the control exercised by the parent charity: 

- Baptist Union Corporation Limited is a company limited by guarantee, registered number 00032743, and a registered charity, number 249635. It has been consolidated on a line-by-line basis. During the year ended 31 December 2020 Baptist Union Corporation Limited made a deficit of £877k (2019: £nil) based on a turnover of £1,492k (2019: £1,739k), before consolidation.  The company had capital and reserves of £4,264k (2019: £4,264k). 

- Retired Baptist Ministers’ Housing Organisation (RBMHO) is a Charitable Incorporated Organisation, registered charity number 1177649. It has been consolidated on a line-by-line basis. During the year ended 31 December 2020 RBMHO made a surplus of £1,327k (2019: £1,008k), before consolidation, and the Company had accumulated capital and reserves of £34,496k (2019: £33,169k). 

- Baptist House Limited is a company limited by guarantee, registered number 02366122. The Union’s share has been consolidated as a joint arrangement. During the year ended 31 October 2020 Baptist House Limited made a surplus of £35k (2019: deficit of £33k) and the Company had reserves of £277k (2019: £242k). 

**79** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **14 DEBTORS** 

|**BTORS**||||||
|---|---|---|---|---|---|
||**Consolidated**|||**Charity**||
||**2020**|**2019**|**2020**||**2019**|
||**£’000**|**£’000**|**£’000**||**£’000**|
|Accrued income|467|308|201||237|
|Prepayments and other debtors|702|361|657||357|
|Loans to staff|7|33|7||33|
|Amounts owed by group entities|-|-|1,120||21|
||**1,176**|**702**|**1,985**||**648**|
|Loans:||||||
|- Baptist Strategy Building Scheme (BSBS) loans|45|54|45||54|
|- Baptist Union Corporation Ltd||-|779||975|
|- Manse Loans|4,049|4,537|-||-|
|- Church Loans|13,424|10,176|-||-|
|- Pension Loans|512|592|-||-|
|- Baptist Colleges|2,003|1,166|-||-|
|- Secured advances to churches|251|209|-||-|
|- Provision for Doubtful Debts|(877)|||||
||**19,407**|**16,734**|**824**||**1,029**|
|**Total**|**20,583**|**17,436**|**2,809**||**1,677**|



In respect of the outstanding BSBS loans of £45k, £9k is due to be repaid within 12 months (2019: £10k), £36k is due to be repaid between two and five years (2019: £12k), and £nil is due to be repaid in more than five years (2019: £32k). 

In respect of the outstanding loans of £20,284k (2019: £16,471k), £4,052k (2019: £2,376k) is due to be repaid within 12 months, £1,559k (2019: £1,957k) is due to be paid within two years, £4,053k (2019: £3,844k) is due to be repaid between three and five years, and £10,620k (2019: £8,294k) is due to be repaid in more than five years. 

Loans totalling £3,312k (2019: £5,279k) have been approved but not taken up as at 31 December 2020. 

## **15 CASH AND BANK BALANCES** 

|**SH AND BANK BALANCES**||||||
|---|---|---|---|---|---|
||**Consolidated**|||**Charity**||
||**2020**|**2019**|**2020**||**2019**|
||**£’000**|**£’000**|**£’000**||**£’000**|
|Short-term Deposits|20,111|13,411|1,946||2,925|
|Notice deposits|764|10,840|764||1,000|
|**Total**|**20,875**|**24,251**|**2,710**||**3,925**|



Short-term deposits are available in less than three months; notice deposits are available in more than three months but less than 12 months. 

Included within the total cash balance is £nil (2018: £nil) attributable to the endowment fund. 

**80** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **16 CREDITORS** 

|**EDITORS**|||||
|---|---|---|---|---|
||**Consolidated**||**Charity**||
||**2020**|**2019**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Amounts falling due within one year:|||||
|Accruals and other creditors|392|903|255|795|
|Trust accounts|13,245|11,746|-|-|
|Covenant Trust accounts|1|1|-|-|
|Loan fund deposits|39,891|41,232|-|-|
|Intercompany creditors||-|-|-|
|Loans|2,104|1,984|-|-|
|**Total**|**55,633**|**55,866**|**255**|**795**|



Included in the Loans Fund deposits is £2,104k (2019: £1,984k) of interest free loans which represent contributions received towards the cost of properties which are to be repaid when the tenancy is terminated. These are shown as current liabilities as the dates of repayment cannot be determined. 

## **17 LONG-TERM LIABILITY** 

|**NG-TERM LIABILITY**|||||
|---|---|---|---|---|
||**Consolidated**|||**Charity**|
||**2020**|**2019**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Loan from Group Entity|||||
|RBMHO||**-**|20,000|<br>20,000|
|**Total**|**-**|**-**|**20,000**|**20,000**|



The loan from RBMHO is an interest only loan at an interest rate of 3% above the Bank of England base rate. There is no fixed repayment date and it can only be recalled by the lender by giving no less than 12 months notice. 

## **18 PROVISION FOR LIABILITES** 

|**OVISION FOR LIABILITES**|||||
|---|---|---|---|---|
||**Consolidated**||**Charity**||
||**2020**|**2019**|**2020**|**2019**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|**Defined Benefit pension scheme liability**|||||
|Balance sheet liability at 1stJan|334|718|334|718|
|Deficiency contributions paid|(26)|(391)|(26)|(391)|
|Interest losses (recognised in Sofa)|7|11|7|11|
|Actuarial (Gains)|(7)|(4)|(7)|(4)|
|(Gain) in funding plan|(100)|-|(100)|-|
|**Balance sheet liability at 31st Dec**|**208**|**334**|**208**|**334**|



For more details on pension liabilities, please see note 25. 

## **19 CONTINGENT ASSET** 

The Union has been co-claimant alongside the Baptist Pension Scheme (BPS) in a claim against the BPS’s former legal advisors.  The Union entered into a costs agreement with BPS under which the Union shared in the cost of the litigation and would be able to recover these costs in the event that a settlement was achieved.  The costs expended amounted to £133k as at 31 December 2020 which were drawn from the Pension Reserve.  The litigation was subsequently settled by mediation on 22 March.  As a result of the settlement the Union has now received reimbursement of these costs. 

**81** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **20 ENDOWMENT FUNDS** 

|**ENDOWMENT FUNDS**|||||||
|---|---|---|---|---|---|---|
|**Consolidated and Charity**|**1 Jan**|||**Gains and**|**Transfers**|**31 Dec**|
||**2020**|**Income**|**Expenditure**|**Losses**||**2020**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Sustentation Fund|1,109|32|(7)|2|(25)|1,111|
|**Total**|1,109|32|(7)|2|(25)|1,111|
||||**Fixed Assets**|**Investments**|**Current**|**Total**|
||||||**Assets**||
||||**£’000**|**£’000**|**£’000**|**£’000**|
|Sustentation Fund|||-||||
|**Total**|||**-**|**1,099**|**12**|**1,111**|



The Sustentation Fund income is available for provision of Ministry and the net income was transferred to unrestricted income to support grants for ministry in accordance with the Trust Deed. 

## **21 RESTRICTED FUNDS** 

|**RESTRICTED FUNDS**|||||||
|---|---|---|---|---|---|---|
||**1 Jan**|||**Gains and**|**Transfers**|**31 Dec**|
||**2020**|**Income**|**Expenditure**|**Losses**||**2020**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Pension Reserve|174|19|-|-|-|193|
|Retired Ministers'|23|-|(6)|-|-|17|
|Benevolent Fund|||||||
|**Total Charity**|**197**|**19**|**(6)**|**-**|**-**|**210**|
|Remove on consolidation|||||||
|Retirement Courses|-||||||
|RBMHO|33,083|1,335|(1,188)|584|595|34,409|
|**Total Consolidated**|**33,280**|**1,354**|**(1,194)**|**584**|**595**|**34,619**|
||||**Fixed Assets**|**Investments**|**Current**|**Total**|
||||||**Assets**||
||||**£’000**|**£’000**|**£’000**|**£’000**|
|(a) Pension Reserve|||||193|193|
|(b) Retired Ministers' Benevolent Fund|||||17|17|
|**Total Charity**|||||**210**|**210**|
|(c) RBMHO|||37,206|29|(2,826)|34,409|
|**Total Consolidated**|||**37,206**|**29**|**(2,616)**|**34,619**|



(a) The Pension Reserve has been established to support the Baptist denomination in addressing the issues relating to the deficit in the Baptist Pension Scheme.  Funds are intended to be used to (1) clear the debts to the scheme of closed churches where no other funds are available, in order to avoid the Pension Trustees having to pursue individual church trustees for repayment, and (2) provide funds to reduce the overall deficit in the Baptist Pension Scheme. 

(b) The Retired Ministers' Benevolent Fund assists retired ministers on the accredited list. 

- (c) RBMHO provides housing for retired Baptist ministers and their spouses. 

**82** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **22 DESIGNATED FUNDS** 

|**SIGNATED FUNDS**|||||||
|---|---|---|---|---|---|---|
||**1 Jan**|||**Gains and**|**Transfers**|**31 Dec**|
||**2020**|**Income**|**Expenditure**|**Losses**||**2020**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Loan fund capital|1,460|||||1,460|
|Baptist Strategy Building<br>Scheme|54||1||(10)|45|
|Pension Reserve|(18,106)|1,345|(700)|||(17,461)|
|Baptist House Reserve|3,162||(70)|||3,092|
|Fixed Asset Reserve|4,151||(47)||(324)|3,780|
|Pastoral Fund|2,179|82|(140)|(1)||2,120|
|Covid-19 relief fund|-|6|(221)||1,000|785|
|Strategic Projects|235||(25)||(81)|129|
|Baptist Assembly|-|-|-|-|-|-|
|**Total Charity**|**(6,865)**|**1,433**|**(1,202)**|**(1)**|**585**|**(6,050)**|
|Adjust on consolidation|||||||
|-<br>Loan Fund Capital|(1,460)|-|-|-|-|(1,460)|
|-<br>Pension Reserve|-|(550)|647|-|(97)|-|
|-<br>Baptist House Reserve|(179)|-|-|17|-|(162)|
|**Total Consolidated**|**(8,504)**|**882**|**(553)**|**16**|**487**|**(7,672)**|
|||**Fixed**|**Investments**|**Current**|**Long-Term**|**Total**|
|||**Assets**||**Assets**|**Liability**||
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|(a) Loan fund capital||-|1,460|-|-|1,460|
|(b) Baptist Strategy Building|Scheme|-|-|45|-|45|
|(c) Pension Reserve||-|-|2,539|(20,000)|(17,461)|
|(d) Baptist House Reserve||1,805|1,287|-|-|3,092|
|(e) Fixed Asset Reserve||3,780|-|-|-|3,780|
|(f) Pastoral Fund||-|805|1,315|-|2,120|
|(g) Covid-19 relief Fund||-|-|785|-|785|
|(h) Strategic Projects||-|-|129|-|129|
|**Total Charity**||**5,585**|**3,552**|**4,812**|**(20,000)**|**(6,050)**|
|Elimination / Adjust on consolidation|||||||
|Loan fund capital|||(1,460)|-|-|(1,460)|
|Pension Reserve||||(20,000)|20,000|-|
|Investment in BHL|||(162)|-|-|(162)|
|**Total Consolidated**||**5,585**|**1,931**|**(15,188)**|**-**|**(7,672)**|



- (a) The Loan Fund Capital is the investment in Baptist Union Corporation to provide capital to the Baptist Union Loan Fund.  The loan fund primarily assists churches with finance for new buildings, for extensions and/or refurbishment of church premises, for the purchase of church manses and loans to enable churches to pay off their pension deficits – this is removed on consolidation. 

- (b) The Baptist Strategy Building Scheme provided loans to finance to church building. The fund represents balances outstanding and is not open to new applications.  Repayments are transferred to Unrestricted funds. 

- (c) The Pension Reserve has been established by the Baptist Union of Great Britain to support the Baptist denomination in addressing the issues relating to the deficit in the Baptist Pension Scheme.  Funds are intended to be used to (1) clear the debts to the scheme of closed churches where no other funds are available, in order to avoid the Pension Trustees having to pursue individual church trustees for repayment, and (2) provide funds to reduce the overall deficit in the Baptist Pension Scheme. 

- (d) The Baptist House Reserve recognises the investment in Baptist House that is used for operational purposes to provide office accommodation for the Specialist Teams and is not readily a liquid asset. 

- (e) The Fixed Asset Reserve holds fixed assets used to support the ongoing operations of BUGB.  This reserve includes essential housing provided for Association and other Union staff as well as furniture, fittings, computers, software and other assets. This is not a readily liquid asset. 

- (f) The Pastoral Fund exists for the relief of need, hardship or distress. 

**83** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **22 DESIGNATED FUNDS (Continued)** 

- (g) The Covid-19 Relief Fund was created in 2020 to provide relief to member churches who experienced significant financial difficulty due to loss of income due to governmental meeting and opening premise restrictions. 

- (h) The Strategic Projects Fund had previously been known as the Ministry Review Fund. The Trustees have renamed this fund and broadened its objectives to provide funding for projects deemed of strategic importance to The Union. 

|**23 **|**ANALYSIS OF NET ASSETS**||||||
|---|---|---|---|---|---|---|
||**Consolidated**|**Fixed Assets**|**Investments**|**Net Current**|**Long Term**|**Total**|
|||||**Assets**|**Liability**||
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
||Endowment Funds|-|1,099|12|-|1,111|
||Restricted Funds|37,206|30|(2,617)|-|34,619|
||Designated Funds|5,585|1,931|(15,188)|-|(7,672)|
||Unrestricted Funds|205|7,520|3,618|(208)|11,135|
||**Total**|**42,996**|**10,580**|**(14,175)**|**(208)**|**39,193**|
||**Charity**|**Fixed Assets**|**Investments**|**Net Current**|**Long Term**|**Total**|
|||||**Assets**|**Liability**||
|||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
||Endowment Funds|-|1,099|12|-|1,111|
||Restricted Funds|-|-|210|-|210|
||Designated Funds|5,585|3,553|4,812|(20,000)|(6,050)|
||Unrestricted Funds|205|7,520|230|(208)|7,747|
||**Total**|**5,790**|**12,172**|**5,264**|**(20,208)**|**3,018**|



## **24 GRANTS** 

The Baptist Union of Great Britain makes grants to some of its member churches for the provision of ministers and to other Baptist and ecumenical organisations in the furtherance of the Union’s objects as set out in the trustees’ report. Grants over £10k made during the year were as follows: 

||**Regional**|**Other Baptist**|**Ecumenical**|**TOTAL**|
|---|---|---|---|---|
||**Associations**|**Partners**|**Partners**||
||**£’000**|**£’000**|**£’000**|**£’000**|
|Baptist World|-|10|-|10|
|Central Baptist|235|-|-|235|
|Churches Together|-|-|24|24|
|Churches Together|-|-|10|10|
|East Midlands|243|-|-|243|
|Eastern Baptist|213|-|-|213|
|European Baptist|-|66|-|66|
|Heart of England|247|-|-|247|
|Joint Issues Public|-|-|10|10|
|London Baptist|406|-|-|406|
|North Western|146|-|-|146|
|Northern Baptist|223|-|-|223|
|Regents College:|-|10|-|10|
|South Eastern|232|-|-|232|
|South Wales Baptist|196|-|-|196|
|South West Baptist|171|-|-|171|
|Southern Counties|252|-|-|252|
|West of England|196|-|-|196|
|Yorkshire Baptist|184|-|-|184|
|Total grants under £10k|-|138|17|155|
|**Total Excluding Pastoral Grants**||||**3,229**|
|Pastoral Grants||||332|
|**Total Grants**||||**3,561**|



**84** 



## **BAPTIST UNION OF GREAT BRITAIN** 

## **NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **25 PENSIONS** 

The Union is an employer participating in the Baptist Pension Scheme ( ' the BPS ' ) and was also a participating employer in the Baptist Union Staff Pension Scheme ( ' the BUSPS ' ) until it was wound up in 2019.  The BPS is a separate legal entity administered by the Pension Trustee (Baptist Pension Trust Limited). 

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members if they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%. 

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the BPS, or through the BUSPS.  The main benefits were: 

- In the BPS, a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. 

- In the BUSPS, a pension of one seventieth of a member’s average salary over the last three years of pensionable service. 

The BPS, previously known as the Baptist Ministers’ Pension Fund, started in 1925, and the BUSPS stated in 1969. Both schemes were closed to future accrual of defined benefits on 31 December 2011.  Neither scheme is contracted out of the State Second Pension. 

The table below summarises the main results of the most recent actuarial valuations of the Defined Benefit (DB) Plan in the BPS, which was completed in 2020.  This valuation was performed by a professionally qualified Actuary using the Projected Unit Method. 

||BPS DB Plan|
|---|---|
|Date of valuation|31 December 2019|
|Date next valuation due|31 December 2022|
|Market value of scheme assets (A)|£298m|
|Technical provisions (B)|£316m|
|Deficit [(B) – (A)]|£18m|
|Funding level [(A) / (B)]|94%|



As a result of the valuations, in addition to the contributions to the DC Plan set out above, it was agreed to continue the standard rate of deficiency contributions payable by churches and other employers involved in the DB Plan at a rate of 12% of Pensionable Income/ Minimum Pensionable Income. The contributions are based on each church’s or other employer’s position at 31 December 2014.  Some churches or other employers that were only involved in the DB Plan for a short period pay less than 12%.  The Recovery Plan envisages deficiency contributions continuing until June 2026.  In addition, BUGB committed to make an additional contribution of £0.5m on behalf of the Baptist denomination in 2020, which had already been accounted for as a current liability at the end of 2019 and was paid to the scheme in December 2020. 

**85** 



## **BAPTIST UNION OF GREAT BRITAIN** 

**NOTES TO THE FINANCIAL STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020** 

## **25 PENSIONS (continued)** 

The financial assumptions underlying the valuations were as follows: 

|Type of assumption|% p.a.|
|---|---|
|RPI price inflation assumption|3.20|
|CPI price inflation assumption|2.70|
|Minimum Pensionable Income Increase Adjustment (above CPI)|0.50|
|Pre-retirement assumed investment returns (gilt yield plus 1.75% pa)|2.95|
|Post retirement assumed investment returns (including benefits|1.70|
|matched by the insurance policy) (gilt yield plus 0.5% pa)||
|Minimum Pensionable Income increases (CPI plus 0.5%)|3.20|
|Deferred pension increases (based on RPI)||
|Pre April 2009|3.20|
|Post April 2009|2.50|
|Pension increases||
|Based on CPI with an annual floor of 0% and annual cap of 5%|2.70|



Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the ' CMI 2019 ' projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for females with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%. 

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102.  Because it is not possible to attribute the Scheme’s assets and liabilities to specific employers, the scheme is accounted for as if the Scheme were a defined contribution scheme. 

The movement in the balance sheet liability is set out in the following table: 

||**TOTAL**|**TOTAL**||**BPS**||**BUSPS**||
|---|---|---|---|---|---|---|---|
||**2020**|**2019**|**2020**||**2019**|**2020**|**2019**|
|Balance sheet liability at 1stJanuary|334|719|334||354|-|365|
|Deficiency contributions paid|(26)|(391)|(26)||(35)|-|(356)|
|Interest cost (recognised in sofa)|7|10|7||10|-|-|
|Remaining change to balance sheet liability|(6)|(4)|(6)||5|-|(9)|
|Loss/(gain) on change of funding plan|(101)|-|(101)||-|-|-|
|**Balance sheet liability at 31st December**|**208**|**334**|**208**||**334**|**-**|**-**|



This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments: 

||31 Dec 2020|31 Dec 2019|31 Dec 2018|
|---|---|---|---|
|Discount Rate|1.37%|2.15%|3.05%|
|Future increases to Minimum Pensionable Income|3.07%|3.18%|3.33%|



## **26 RELATED PARTY TRANSACTIONS** 

One trustee (2019: one) received a Study grant of £600 during the year (2019: £600) and no trustee (2019: one) received a pastoral grant (2019: £300) All applications had been treated in exactly the same way as all other grant applications of that specific type. 

**86** 






## www.baptist.org.uk/annualreport 

## **The Baptist Union of Great Britain** 

**Registered charity number 1181392** The Baptist Union of Great Britain, a Charitable Incorporated Organisation with registered charity number 1181392 Registered and Principal Office: Baptist House, 129 Broadway, Didcot, Oxfordshire OX11 8RT.