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2023-03-31-accounts

CHARITY REGISTRATION NUMBER 1182833

C3 LONDON CHURCH

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

C3 LONDON CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees P Hubbard
J Henderson
E Turner
M Denham (Appointed 19 October
2023)
H Hooks (Appointed 24 October
2023)
Charity number 1182833
Principal address Flat 1
19 Hartington Road
Chiswick
London
W4 3TL
Independent examiner M Mealing BSc FCCA
UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF

C3 LONDON CHURCH

CONTENTS

Page
Trustees report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Statement of cash flows 7
Notes to the financial statements 8 - 16

C3 LONDON CHURCH

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the CIO's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The main objectives of the CIO are, for the public benefit:

In planning the activities of the CIO the trustees have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the CIO should undertake.

Transfer of Assets from C3 Fulham

C3 London Church (previously C3 Fulham) is a Christian Church that exists to share the faith and to help people in a variety of ways – people within the church community and people without.

C3 Fulham, as it was then known, was registered as a Charitable Incorporated Organisation (the CIO ) on 5 April 2019, to take over the activities, assets and liabilities of the C3 Fulham Charitable Trust (Charity No. 1119609) (the Trust ). While an Assets and Liabilities Transfer Agreement was signed between the CIO and the Trust in September 2019, the transfer of assets and liabilities was not completed at that time due to difficulties completing the transfer of the bank accounts. These difficulties were exacerbated by the COVID19 pandemic and continued throughout 2020 and 2021.

A decision was taken by the trustees of both the Trust and the CIO to defer this transfer until 2022 once COVID-19 restrictions had eased. An updated Assets and Liabilities Transfer Agreement was signed and the CIO became operational in October 2022. The full transfer of assets and liabilities was completed in January 2023, when the Trust bank accounts were closed and all funds were transferred to the CIO. The Trust was then dissolved and removed from the register on 31 July 2023.

While this report covers the period from 1 April 2022 to 31 March 2023, the charity continued to operate as a Trust for the first half of the period. The Trust’s final accounts for the year to 31 December 2022 were registered with the Commission on 10 June 2023 and are available on request.

C3 LONDON CHURCH

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance

As a church, C3 London has existed since 2007 to help Londoners find their best life. C3 London Church runs Church Services, Courses and Connect Groups. These activities provide a welcoming environment for people to connect with God and others.

Throughout 2022 and early 2023, the church congregation saw excellent growth, with attendance averaging 50-60 people in-person each week by the end of 2022. Live streaming of services also continued to support those not able to attend in person.

In October 2022, following approval from the Charity Commission, the Charity was able to employ the Senior Pastor, Phil Hubbard, for 16 hours per week (under the Trust structure, the Senior Pastor had been working on a volunteer basis). This has allowed greater opportunity for pastoral visits and care, and an increased focus on strategic planning and growth. The increased growth of the church throughout 2023 is a testament to this.

We continued our partnerships with the Baron’s Court Project, a day centre in Hammersmith and Fulham that supports people that are on low income, homeless and/or vulnerable to mental health issues, Daniel’s Den, a local parent and toddler group, and A21, a charity that works to eradicate human trafficking. We also sponsor a number of children through Compassion UK. At Christmas, we donated 100 food hampers to families in Hammersmith and Fulham, distributed via local authority.

Financial review

The CIO’s bank accounts were opened during 2022. The full transfer of funds from the Trust to the CIO was completed in January 2023. A small number of transfers were made from the Trust to the CIO in 2022, in order to service the CIO’s salary, PAYE and national insurance obligations.

The congregation saw significant growth in the latter part of 2022, and this has continued throughout 2023. Other than the transfer of funds from the Trust, the CIO also received £21,425 in income from tithes between January 2023 and March 2023. As was the case with the previous Trust, the CIO maintains significant reserves saved in separate accounts, and the trustees remain confident that the activities of the charity can be maintained throughout any significant period of reduced funding.

At the end of the year, the CIO had unrestricted reserves of £556,315 of which £540,596 were freely available.

Review of the year and plans for future periods

On 16 October 2022 an assets and liabilities transfer agreement was signed between C3 Fulham and C3 London Church, a CIO established for this purpose. C3 Fulham's bank accounts were all closed in January 2023 and the remaining balances were transferred to C3 London Church. C3 Fulham has since been dissolved and removed from the register.

Structure, governance and management

C3 London Church (the CIO) is a charitable incorporated organisation registered with the Charity Commission on 5 April 2019. The CIO changed its name from C3 Fulham to C3 London Church on 28 June 2022. During the year the activities of C3 Fulham (1119609) were transferred to C3 London Church.

C3 LONDON CHURCH

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

The trustees who served during the year and up to the date of signature of the financial statements were: P Hubbard

J Henderson E Turner M Denham (Appointed 19 October 2023) H Hooks (Appointed 24 October 2023)

The trustees report was approved by the Board of Trustees.

P Hubbard

Trustee

24 January 2024

6 Broadfield Court Broadfield Way Sheffield S8 0XF

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF C3 LONDON CHURCH

I report to the trustees on my examination of the financial statements of C3 London Church (the CIO) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the CIO you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the CIO’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the CIO’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

M Mealing BSc FCCA UHY Hacker Young

Chartered Accountants

Dated: 24 January 2024

C3 LONDON CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Total
funds
2023 2022
Notes £ £
Income from:
Donations and legacies 3 579,429 -
Investments 4 1,163 -
Total income 580,592 -
Expenditure on:
Charitable activities 5 24,277 -
Net incoming resources before transfers 556,315 -
Net income for the year/
Net movement in funds 556,315 -
Fund balances at 1 April 2022 - -
Fund balances at 31 March 2023 556,315 -

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

C3 LONDON CHURCH

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2023
£
4,875
539,258
544,133
(3,537)		 £
15,719
540,596
556,315
556,315
556,315		 2022
£
-
-
-
-		 £
-
-
-
-
-

The financial statements were approved by the Trustees on 24 January 2024

P Hubbard Trustee

C3 LONDON CHURCH

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
15
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(2,114)
1,163		 £
540,209
(951)
-
539,258
-
539,258		 2022
£
-
-		 £
-
-
-
-
-
-

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

C3 London Church is a charitable incorporated organisation registered with the Charity Commission from 5 April 2019.

1.1 Accounting convention

The financial statements have been prepared in accordance with the CIO's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The CIO is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the CIO. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the CIO has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the CIO has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the CIO has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with a donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market, a corresponding amount is then recognised in expenditure in the period of receipt.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes the cost of running the activities of C3 London Church.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings

25% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the CIO reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.9 Financial instruments

The CIO has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the CIO's balance sheet when the CIO becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in net income/ (expenditure), except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the CIO transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the CIO’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the CIO is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the CIO’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

3 Donations and legacies

Unrestricted Total
funds
2023 2022
£ £
Donations and gifts 43,839 -
Grants 535,590 -
579,429 -
Grants receivable for core activities
C3 Fulham 534,964 -
Other 626 -
535,590 -

During the year C3 Fulham merged with C3 London Church, with all funds held by C3 Fulham being transferred to C3 London Church.

4 Investments

Unrestricted Total
funds
2023 2022
£ £
Interest receivable 1,163 -

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Charitable activities

2023 2023 2022
£ £
Staff costs 9,088 -
Depreciation and impairment 4,670 -
Gifts 167 -
Church service costs 1,738 -
Cafe costs 1,081 -
Travel, subsistence and conferences 1,697 -
Printing, postage, stationery and advertising 52 -
Telephone and internet 432 -
Office costs 2,352 -
21,277 -
Share of governance costs (see note 6) 3,000 -
24,277 -
Analysis by fund
Unrestricted funds 24,277 -
6 Support costs
Support Governance 2023
costs costs
£ £ £
Independent examination fees - 3,000 3,000
- 3,000 3,000
Analysed between
Charitable activities - 3,000 3,000

Governance costs includes payments to the independent examiner of £3,000 (2022- £nil) for independent examination fees.

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7 Trustees

P Hubbard received emoluments of £9,000 (2022: £nil), pension contributions of £88 (2022: £nil) and reimbursed expenses of £1,312 (2022: £nil) during the year.

None of the other trustees received emoluments or benefits during the year (2022: £nil).

8 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
1 -
Employment costs 2023 2022
£ £
Wages and salaries 9,088 -

There were no employees whose annual remuneration was more than £60,000.

9 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

10 Tangible fixed assets

Tangible fixed assets
Fixtures and fittings
£
Cost
Additions 2,114
Business combinations 18,275
At 31 March 2023 20,389
Depreciation and impairment
Depreciation charged in the year 4,670
At 31 March 2023 4,670
Carrying amount
At 31 March 2023 15,719

During the year, the activities of C3 Fulham were transferred into C3 London Church. The equipment held by C3 Fulham has been transferred to C3 London Church at net book value.

11 Debtors
2023 2022
Amounts falling due within one year: £ £
Other debtors 4,138 -
Prepayments and accrued income 737 -
4,875 -
12 Creditors: amounts falling due within one year
2023 2022
£ £
Other taxation and social security 354 -
Accruals and deferred income 3,183 -
3,537 -

C3 LONDON CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Total
funds
2023 2022
£ £
Fund balances at 31 March 2023 are represented by:
Tangible assets 15,719 -
Current assets/(liabilities) 540,596 -
556,315 -

14 Related party transactions

During the year the CIO entered into the following transactions with related parties:

Total unrestricted donations made by trustees and their close relatives during the year totalled £3,083.

15 Cash generated from operations 2023 2023 2022
£ £
Surplus for the year 556,315 -
Adjustments for:
Investment income recognised in statement of financial activities (1,163) -
Depreciation and impairment of tangible fixed assets 4,670 -
Equipment transferred at net book value from C3 Fulham (18,275) -
Movements in working capital:
(Increase) in debtors (4,875) -
Increase in creditors 3,537 -
Cash generated from/(absorbed by) operations 540,209 -