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2024-12-31-accounts

The Paloma Foundation

Trustees’ Annual Report For the year ended 31 December 2024

Contents

Reference and Administration Details .................................................................................................. 3 Objectives and Activities ........................................................................................................................ 3 Achievements and Performance ............................................................................................................ 5 Structure, Governance and Management ............................................................................................. 6 Financial Review ..................................................................................................................................... 7 Public Benefits Statement ...................................................................................................................... 9

Reference and Administration Details

Charity name: The Paloma Foundation Charity registration number: 1187153 Address: Henry Wood House, 4-5 Langham Place, London W1B 3DG Report period: 1 January 2024 to 31 December 2024 Trustees: Jack Pitman Jolyon Froud Philip David Baxter

Objectives and Activities

The Paloma Foundation aims to help the advancement of the Christian faith in the UK or abroad by supporting charitable organisations or individuals involved in activities as an expression of the Christian life and faith. See Charitable Objects below for a more detailed explanation.

The Paloma Foundation will be funded in due course by donations. It is intended that these donations will be used to acquire income producing UK commercial property investments or make secured loans with the aim of producing a regular source of income. This income will be used to make grants in accordance with the Charitable Objects.

The Paloma Foundation’s Strategy for Achieving its Aims

The Paloma Foundation aims to help the advancement of the Christian faith in the UK or abroad by supporting charitable organisations or individuals involved in activities as an expression of the Christian life and faith. There are three stages to the Foundation’s strategy for achieving its aims;

  1. Build a robust financial base (see Review of Financial Position and Principal Funding Sources below)

  2. Invest funds to create a sustainable annual income to be used for making grants. These investments are likely to be a combination of;

  3. UK commercial real estate investments, acquired to provide rental income

  4. Loans to entities which are sympathetic to our aims, generally secured on a property asset, to facilitate each entities’ activities and to generate income via an annual coupon

  5. Other UK real estate to be occupied by entities which are sympathetic to our aims, acquired to facilitate their activities and leased to them to provide rental income

  6. As this sustainable income base is established, make grants (see Grant Making below) funded by this income

The Short and Longer Term Aims and Objectives

The short term aim and objective is to build a robust financial base and then to create a sustainable annual income, while beginning to make grants/programme related investments to promote the aims of the Foundation. The longer term aim and objective is to advance the Foundation’s aims by expanding the grant making/programme related investments as the income grows.

The Trustees are also looking to use their deep knowledge and experience of the UK real estate market to own buildings and make loans on buildings. Providing liquidity, in the form of secured loans paying an annual coupon, will enable entities which are sympathetic to our aims to acquire buildings where their activities can take place. This liquidity could, for example, enable the entity to acquire and renovate or improve an asset and allow them the time to raise funds from supporters or raise conventional bank debt to repay the Foundation’s loan. The Foundation’s first transaction, the providing of a Programme Related Investment in 2023 to the UK Christian School, is an early example of that.

Grant Making Funding Criteria. The Foundation will consider all applications that fall within our charitable purposes and meet our funding criteria and, for which, the due diligence process has not identified any unacceptable issues.

Grants will be made based on the funding available and solely on merit.

Achievements and Performance

Activity

The Paloma Foundation opened a reserves account with RBS in June. The account is a Liquidity Manager 35 Day Account which will earn interest of 2.75% on the balance. An amount of £840,000 was added to the reserves account leaving a small balance in the current account.

Donations

A donation of £181,760 was received in January. Gift aid was applied for and a payment of £45,440 was received in March.

Structure, Governance and Management

Structure

The charity comprises of three Trustees and one volunteer. The Trustees delegate the day-to-day admin of the charity to Martine Beard (volunteer).

Type of Governing Document

Constitution – based on the Charity Commission’s model governing document for Foundation Charitable Incorporated Organisations, i.e.: where the Trustees are the only Members of the charity.

Charitable Objects

As defined in The Paloma Foundation’s Constitution (Governing Document) the charity’s objects (“objects”) are specifically restricted to the following:

The Paloma Foundation aims to help the advancement of the Christian faith in the UK or abroad by supporting charitable organisations or individuals involved in any of the following activities as an expression of the Christian life and faith:

Trustee Selection Methods

There must be at least three charity trustees. The maximum number of trustees is nine.

In appointing Trustees, due consideration is given to ensuring that the Trustees have, between them, the skills and experience necessary to manage the charity effectively and in accordance with charity law.

Management

All decisions will be made by the Trustees. No decision shall be taken at a meeting unless a quorum is present at the time when the decision is taken. The quorum is two Trustees. A Trustee shall not be counted in the quorum present when any decision is made about a matter upon which he or she is not entitled to vote. Questions arising at a meeting shall be decided by a majority of those eligible to vote. In the case of an equality of votes, the decision shall not be carried.

Financial Review

Financial Position

Credits during the period totalled £253,611.26. This comprised of a £181,760 donation received in January, gift aid relating to the donation of £45,440 in March, £15,000 of loan repayments from UKCS and interest earnt of £15,161.26 in the reserves account.

Payments during the period totalled £2,642.20; £2,400 was payment of an invoice to PEM for preparing the year end accounts and the remainder of £242.20 was regular bank charges for Bankline services and other bank charges.

The overall balance across both accounts as at 31 December 2024 was £881,026.73. As with last year, PEM have been appointed to externally review our accounts. We have prepared this report in line with SORP FRS 102.

A further donation of £120,000 was received in January 2025 plus a gift aid application was paid to increase this to £150,000. A donation of £746,000 was received in March 2025 – the gift aid has already been claimed on this amount.

Principal Risks and Uncertainties

The principal risks and uncertainties identified by the Trustees are as follows;

Allocated Funds/Future Plans for Funds

There has been a delay to the planned PRI to The Jericho Trust which was detailed in last years report. Details are included below.

The Paloma Foundation has been asked to consider making a Programme Related Investment of £250,000 to The Jericho Trust (Charity No 1205926) for five years with an annual coupon of 5% to enable the Trust to acquire a property at Thamesworks, Church Street, Chiswick W4 2PD. The proposed use of the building is partly as an HMO to accommodate care leavers, partly as a residential unit with communal space to be occupied by a Christian family who will manage the care facility and host Christian events and partly as commercial space leased to third party tenants to generate income. The Trust aim is to act as a resource, within a Christian ethos, for young people by providing advice and assistance and organising programmes of physical, educational and other activities as a means of: a) advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals. b) advancing education c) providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons. d) protecting and preserving good health. Any material change to this “Christian Ethos” will be an event of default under the terms of the loan. If this opportunity progresses then full due diligence will be carried out.

Also, the Foundation is considering supporting the activities of StandOut, Hope into Action and ASLAN by way of a grant, to be confirmed. All these charities are run according to a Christian ethos.

StandOut is an award-winning charity that empowers people to rebuild their lives after prison. Through a three-phase programme, they help participants discover their potential, make positive changes and prepare for life after release. Each journey is individual, and leaving prison isn’t easy. That's why StandOut provides one-to-one coaching and support that bridges the transition between prison and the community. They are determined that more people leaving prison are empowered to make positive change that has an impact on them, their families, and society.

Hope into Action’s vision is for every church to lovingly making a home for people who have been homeless. They believe the church has the ability to respond to all three forms of poverty. To provide the resource of a house. To offer relationships of friendship and support. And to share a message which can transform someone’s very identity. Their mission is to mobilise, unite and unleash Christian prayer, investments, donations and relationships to fight the injustice of homelessness.

The All Souls Local Action Network (ASLAN) began as a tea run back in 1988, and since then has grown into a number of projects working with those affected by homelessness across London’s West End. ASLAN run a variety of initiatives including serving a hot breakfast every Saturday morning, visiting people where they sleep (starting with those on our front steps), and a be-friending programme that offers support, regular meals, and weekly Bible studies for those interested. In the winter months, they usually host a shelter. The team are committed to manifesting God’s love to homeless people through their actions: by addressing physical, mental and spiritual needs; by giving help and affection without preconditions; by transmitting their joy in Christ; and by steadily improving standards of care and support, with God’s guidance.

Future Direction of Charity

There are no plans for the future direction of The Paloma Foundation to change materially from the aims and strategy as set out above.

Public Benefits Statement

The Trustees of The Paloma Foundation confirm that they have paid due regard to the guidance issued by the Charity Commission on public benefit in deciding what activities the charity undertake and may undertake in the future. In particular, the Trustees believe that the principal aim of the Foundation to help the advancement of the Christian faith will benefit the wider public as, through doing this, the Foundation enables members of the public to better understand their purpose in life and to enjoy the moral framework that arises from understanding the Christian faith. In addition, the Foundation seeks to work for the public good through its charitable purposes which include the relief of those in need, hardship or distress as a result of local, national or international disaster or by reason of hunger, disease, sickness or their social and/or economic circumstances as well as the training, care, and rehabilitation of people in prison and people with a conviction.

Signed on behalf of the Trustees:

____ _____ Jack Pitman Date

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

Charity number: 1187153

THE PALOMA FOUNDATION

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Independent Examiner's Report 8 - 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 - 20

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2024

Trustees Mr Jack Pitman, Chair
Mr Philip Baxter
Mr Joe Froud
Charity registered
number
1187153
Principal office
Henry Wood House
4-5 Langham Place
London
W1B 3DG
Independent Examiner
Peters Elworthy & Moore
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
Cambridge
CB1 2LA
Bankers
Royal Bank of Scotland
250 Bishopsgate
London
EC2M 4AA
Solicitors
Wedlake Bell LLP
71 Queen Victoria Street
London
EC4V 4AY

Page 1

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees present their annual report together with the financial statements of the Charity for the period 1 January 2024 to 31 December 2024.

OBJECTIVES AND ACTIVITIES

a. Aims

The Paloma Foundation aims to help the advancement of the Christian faith in the UK or abroad by supporting charitable organisations or individuals involved in activities as an expression of the Christian life and faith. See the charitable objects below for a more detailed explanation.

The Paloma Foundation has been and will continue to be funded by donations. It is intended that these donations will be used to make secured loans to Christian organisations to facilitate their work, for example to allow them to acquire buildings, or acquire income producing UK real estate occupied by entities sympathetic to our aims or commercial or residential property investments, all with the aim of producing a regular source of income. This income will be used to make grants in accordance with the Charitable Objects.

The Trustees of The Paloma Foundation confirm that they have paid due regard to the guidance issued by the Charity Commission on public benefit in deciding what activities the Charity undertakes and may undertake in the future. In particular, the Trustees believe that the principal aim of the Charity to help the advancement of the Christian faith will benefit the wider public as, through doing this, the Charity enables members of the public to better understand their purpose in life and to enjoy the moral framework that arises from understanding the Christian faith. In addition, the Charity seeks to work for the public good through its charitable purposes which include the relief of those in need, hardship or distress as a result of local, national or international disaster or by reason of hunger, disease, sickness or their social and/or economic circumstances as well as the training, care, and rehabilitation of people in prison and people with a conviction.

b. Charitable Objects

As defined in The Paloma Foundation’s Constitution (Governing Document) the Charity’s objects (“objects”) are specifically restricted to the following:

c. The Paloma Foundation’s Strategy for Achieving its Aims

There are three stages to the Charity’s strategy for achieving its aims:

  1. Build a robust financial base (see Financial Review below)

  2. Invest funds to create a sustainable annual income to be used for making grants. These investments are likely to be a combination of:

  3. Loans to entities which are sympathetic to our aims, generally secured on a property asset, to facilitate each entity's activities and to generate income via an annual coupon

  4. Other UK real estate to be occupied by entities which are sympathetic to our aims, acquired to facilitate their activities and leased to them to provide rental income

Page 2

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

OBJECTIVES AND ACTIVITIES (CONTINUED)

d. The Short and Longer Term Aims and Objectives

The short term aim and objective is to build a robust financial base and then to create a sustainable annual income, while beginning to make grants/programme related investments to promote the aims of the Charity. The longer term aim and objective is to advance the Charity's aims by expanding the grant making/programme related investments as the income grows.

The Trustees are also looking to use their deep knowledge and experience of the UK real estate market to own buildings and make loans on buildings. Providing liquidity, in the form of secured loans paying an annual coupon, will enable entities which are sympathetic to our aims to acquire buildings where their activities can take place. This liquidity could, for example, enable the entity to acquire and renovate or improve an asset and allow them the time to raise funds from supporters or raise conventional bank debt to repay the Charity’s loan. The Charity’s first transaction, the providing of a Programme Related Investment in 2023 to the UK Christian School, is an early example of that.

e. Grant-making Policy

Funding Criteria. The Charity will consider all applications that fall within our charitable purposes and meet our funding criteria and, for which, the due diligence process has not identified any unacceptable issues.

Grants will be made based on the funding available and solely on merit.

Page 3

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

ACHIEVEMENTS AND PERFORMANCE

a. Review of Activities

Activity

The Paloma Foundation opened a reserves account with RBS in June. The account is a Liquidity Manager 35 Day Account which will earn interest of 2.75% on the balance. An amount of £840,000 was added to the reserves account leaving a small balance in the current account.

No additional social investments were made during 2024.

Donations

A donation of £181,760 was received in January. Gift aid was applied for and a payment of £45,440 was received in March.

b. Fundraising Activities

The Charity does not currently engage in significant fundraising activities, nor does it employ or engage professional fundraisers or commercial participators. As such, the Charity is not registered with the Fundraising Regulator. However, if fundraising activities increase in future, the Charity will review this. The Charity is committed to avoiding any intrusive fundraising approaches and will never apply undue pressure on a person to give money or other property. The Charity did not receive any complaints relating to fundraising activities.

FINANCIAL REVIEW

a. Going Concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves Policy

The Charity holds reserves to cover unexpected financial shocks, such as a material fall in funding and a sudden increase in expenditure. The policy of the Charity is to hold free reserves equivalent to 6 months' expenditure. This is between £10,000 and £15,000. Free reserves (equivalent to unrestricted funds less designated funds) were £882,257, which is above the range targeted by the Trustees. The Trustees are working to reduce excess reserves by making grants.

c. Review of Financial Position and Performance

During the year, total income amounted to £257,361, of which £227,200 was unrestricted donations and £30,161 was unrestricted interest income.

Charitable expenditure totaled £2,762, of which £242 was bank charges and £2,520 was support and governance.

The net surplus during the year was £254,599.

At the year-end, total funds amounted to £1,182,257, all of which were unrestricted. Funds totalling £300,000 are designated and represent the programme related social investment; these funds are expected to be realised at the end of the five-year loan period.

Page 4

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

d. Principal Risks and Uncertainties

The principal risks and uncertainties identified by the Trustees are as follows:

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. Constitution

The Paloma Foundation is a registered charity, number 1187153, and is constituted under a CIO Constitution (foundation model).

b. Methods of Appointment or Election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the CIO Constitution. The Charity comprises three Trustees and one volunteer. The Trustees delegate the day-to-day admin of the Charity to Martine Beard (volunteer).

There must be at least three charity Trustees. The maximum number of Trustees is nine.

In appointing Trustees, due consideration is given to ensuring that the Trustees have, between them, the skills and experience necessary to manage the Charity effectively and in accordance with charity law.

c. Organisational Structure and Decision-Making Policies

All decisions are made by the Trustees. No decision can be taken at a meeting unless a quorum is present at the time when the decision is taken. The quorum is two Trustees. A Trustee is not counted in the quorum present when any decision is made about a matter upon which he or she is not entitled to vote. Questions arising at a meeting are decided by a majority of those eligible to vote. In the case of an equality of votes, the decision is not carried.

d. Policies Adopted for the Induction and Training of Trustees

The induction of new Trustees is designed to provide a full briefing on the work of the Charity. It involves meetings with the other Trustees, covering the work of the Charity, policies and procedures and future direction. Trustees are given a welcome pack that includes a copy of the CIO constitution, the latest Annual Report and Accounts and copies of relevant Charity Commission guidance as well as other relevant material.

Page 5

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Future Direction of the Charity

There has been a delay to the planned Programme-related investment to The Jericho Trust which was detailed in last year's report. Details are included below.

The Paloma Foundation has been asked to consider making a Programme Related Investment of £250,000 to The Jericho Trust (Charity No 1205926) for five years with an annual coupon of 5% to enable the Trust to acquire a property at Thamesworks, Church Street, Chiswick W4 2PD. The proposed use of the building is partly as an HMO to accommodate care leavers, partly as a residential unit with communal space to be occupied by a Christian family who will manage the care facility and host Christian events and partly as commercial space leased to third party tenants to generate income.

The Trust aim is to act as a resource, within a Christian ethos, for young people by providing advice and assistance and organising programmes of physical, educational and other activities as a means of: a) advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals. b) advancing education c) providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons. d) protecting and preserving good health. Any material change to this “Christian Ethos” will be an event of default under the terms of the loan. If this opportunity progresses then full due diligence will be carried out.

Also, the Charity is considering supporting the activities of StandOut, Hope into Action and ASLAN by way of a grant, to be confirmed. All these charities are run according to a Christian ethos.

StandOut is an award-winning charity that empowers people to rebuild their lives after prison. Through a threephase programme, they help participants discover their potential, make positive changes and prepare for life after release. Each journey is individual, and leaving prison isn’t easy. That's why StandOut provides one-to-one coaching and support that bridges the transition between prison and the community. They are determined that more people leaving prison are empowered to make positive change that has an impact on them, their families, and society.

Hope into Action’s vision is for every church to lovingly make a home for people who have been homeless. They believe the church has the ability to respond to all three forms of poverty. To provide the resource of a house. To offer relationships of friendship and support. And to share a message which can transform someone’s very identity. Their mission is to mobilise, unite and unleash Christian prayer, investments, donations and relationships to fight the injustice of homelessness. The possibility of acquiring 2-3 bedroom houses in cities where Hope into Action already operates, to be rented to Hope into Action for them to house homeless people, together with a grant to meet the costs of running the house, is being considered.

The All Souls Local Action Network (ASLAN) began as a tea run back in 1988, and since then has grown into a number of projects working with those affected by homelessness across London’s West End. ASLAN run a variety of initiatives including serving a hot breakfast every Saturday morning, visiting people where they sleep (starting with those on our front steps), and a be-friending programme that offers support, regular meals, and weekly Bible studies for those interested. In the winter months, they usually host a shelter. The team are committed to manifesting God’s love to homeless people through their actions by addressing physical, mental and spiritual needs; by giving help and affection without preconditions; by transmitting their joy in Christ; and by steadily improving standards of care and support, with God’s guidance. The Foundation is considering a three year commitment to fund the majority of the cost of running the shelter that ASLAN operates.

There are no plans for the future direction of The Paloma Foundation to change materially from the aims and strategy as set out above.

Page 6

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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 & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the CIO Constitution. 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.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mr Jack Pitman Chair

Date: 30 July 2025

Page 7

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PALOMA FOUNDATION ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2024.

RESPONSIBILITIES AND BASIS OF REPORT

As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

INDEPENDENT EXAMINER'S STATEMENT

Since the Charity'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 The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

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 accounts to be reached.

Page 8

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed: Dated: 30 July 2025

Michael Hewett FCA DChA

Peters Elworthy & Moore Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA

Page 9

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024

Note
INCOME FROM:
Donations
4
Investments
5
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
6
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
2024
£
227,200
30,161
257,361
2,762
2,762
254,599
927,658
254,599
1,182,257
Total
funds
2024
£
227,200
30,161
257,361
2,762
2,762
254,599
927,658
254,599
1,182,257
Total
funds
2023
£
925,500
7,572
933,072
5,414
5,414
927,658
-
927,658
927,658

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 12 to 20 form part of these financial statements.

Page 10

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2024

Note
FIXED ASSETS
Social investments
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
12
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Unrestricted funds
13
TOTAL FUNDS
3,750
881,027
(2,520)
2024
£
300,000
882,257
1,182,257
1,182,257
1,182,257
-
630,058
(2,400)
2023
£
300,000
627,658
927,658
927,658
927,658

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr Jack Pitman Chair

Date: 30 July 2025

The notes on pages 12 to 20 form part of these financial statements.

Page 11

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1. GENERAL INFORMATION

The Paloma Foundation is a charitable incorporated organisation (CIO) registered with the Charity Commission of England and Wales (charity registered number: 1187153). Its principal office is disclosed on page 1.

The functional and presentational currency of the Charity is GBP.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Paloma Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 GOING CONCERN

There are no material uncertainties in respect of the Charity's ability to continue as a going concern.

2.3 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants and donations are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income from programme related investments is recognised on a receivable basis. Receipts owing are accrued; receipts in advance are deferred.

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.4 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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support and governance costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 DEBTORS

Debtors are recognised when there is an entitlement at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.7 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 PROGRAMME RELATED INVESTMENT

Programme related investments are held at cost less impairment.

2.9 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.10 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.11 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

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.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Valuation of programme related investments

Programme related investments are valued at cost less impairment. When assessing the carrying value of the investments, the Trustees consider whether there are any impairment indicators and whether an impairment (or a reversal of a previous impairment) is required. The value of programme related investments subject to this judgement is £300,000 (2023 - £300,000).

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

4. INCOME FROM DONATIONS

Unrestricted
funds
2024
£
DONATIONS
Donations
181,760
Gift Aid
45,440
227,200
Unrestricted
funds
2023
£
DONATIONS
Donations
740,400
Gift Aid
185,100
925,500
5.
INVESTMENT INCOME
Total
funds
2024
£
181,760
45,440
227,200
Total
funds
2023
£
740,400
185,100
925,500
Unrestricted
funds
2024
£
Bank interest
15,161
Programme related investment interest
15,000
30,161
Unrestricted
funds
2023
£
Programme related investment interest
7,572
Total
funds
2024
£
15,161
15,000
30,161
Total
funds
2023
£
7,572

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2024
£
Charitable activities
2,762
Unrestricted
funds
2023
£
Charitable activities
5,414
Total
2024
£
2,762
Total
2023
£
5,414

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable activities
Charitable activities
Activities
undertaken
directly
2024
£
242
Activities
undertaken
directly
2023
£
3,014
Support
costs
2024
£
2,520
Support
costs
2023
£
2,400
Total
funds
2024
£
2,762
Total
funds
2023
£
5,414

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED) ANALYSIS OF DIRECT COSTS

Bank charges
Legal fees
ANALYSIS OF SUPPORT COSTS
Accounts preparation (governance)
Independent examination (governance
8.
INDEPENDENT EXAMINER'S REMUNERATION
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts
Fees payable to the Charity's independent examiner in respect of:
Preparation of statutory financial statements
Total
funds
2024
£
242
-
242
Total
funds
2024
£
1,890
630
2,520
2024
£
630
1,890
Total
funds
2023
£
184
2,830
3,014
Total
funds
2023
£
1,800
600
2,400
2023
£
600
1,800

9. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - £NIL).

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

10. SOCIAL INVESTMENTS

Programme
related
investments
£
COST
At 1 January 2024
300,000
300,000
NET BOOK VALUE
At 31 December 2024
300,000
At 31 December 2023
300,000
Social investments comprise:
PROGRAMME RELATED INVESTMENTS
Loans
2024
Total
2024
£
£
Loan to UK Christian Schools Ltd
300,000
300,000
Total
£
300,000
300,000
300,000
300,000
Total
2023
£
300,000

The loan has been made to help UK Christian Schools Limited (UKCS) purchase new premises located at 30-32 Tabard Street, London. These premises will be used by UKCS to engage in activities that are aligned with those of the Paloma Foundation. The loan is repayable in five years' time and yields interest of 5% per annum.

11. DEBTORS

DUE WITHIN ONE YEAR
Accrued income
12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accruals
2024
£
3,750
2024
£
2,520
2023
£
-
2023
£
2,400

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

13. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
UK Christian Schools
GENERAL FUNDS
General Fund
TOTAL UNRESTRICTED FUNDS
Balance at 1
January
2024
£
300,000
627,658
927,658
Income
£
-
257,361
257,361
Expenditure
£
-
(2,762)
(2,762)
Balance at
31
December
2024
£
300,000
882,257
1,182,257

Designated funds

The UK Christian Schools fund represents the loan made to UK Christian Schools Ltd to finance the purchase of their new premises located at 30-32 Tabard Street, London. Further details of this programme related social investment are included in Note 10 .

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
UK Christian Schools
GENERAL FUNDS
General Fund
TOTAL UNRESTRICTED FUNDS
Income
£
-
933,072
933,072
Expenditure
£
-
(5,414)
(5,414)
Transfers
in/out
£
300,000
(300,000)
-
Balance at
31
December
2023
£
300,000
627,658
927,658

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THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

14. RELATED PARTY TRANSACTIONS

During the year, total donations (including Gift Aid) received from Trustees amounted to £227,200 (2023 - £925,500). There were no other related party transactions during the year (2023 - £NIL).

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Charity number: 1187153

THE PALOMA FOUNDATION

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

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THE PALOMA FOUNDATION

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 7
Independent Examiner's Report 8 - 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12 - 20

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2024

Trustees Mr Jack Pitman, Chair
Mr Philip Baxter
Mr Joe Froud
Charity registered
number
1187153
Principal office
Henry Wood House
4-5 Langham Place
London
W1B 3DG
Independent Examiner
Peters Elworthy & Moore
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
Cambridge
CB1 2LA
Bankers
Royal Bank of Scotland
250 Bishopsgate
London
EC2M 4AA
Solicitors
Wedlake Bell LLP
71 Queen Victoria Street
London
EC4V 4AY

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THE PALOMA FOUNDATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees present their annual report together with the financial statements of the Charity for the period 1 January 2024 to 31 December 2024.

OBJECTIVES AND ACTIVITIES

a. Aims

The Paloma Foundation aims to help the advancement of the Christian faith in the UK or abroad by supporting charitable organisations or individuals involved in activities as an expression of the Christian life and faith. See the charitable objects below for a more detailed explanation.

The Paloma Foundation has been and will continue to be funded by donations. It is intended that these donations will be used to make secured loans to Christian organisations to facilitate their work, for example to allow them to acquire buildings, or acquire income producing UK real estate occupied by entities sympathetic to our aims or commercial or residential property investments, all with the aim of producing a regular source of income. This income will be used to make grants in accordance with the Charitable Objects.

The Trustees of The Paloma Foundation confirm that they have paid due regard to the guidance issued by the Charity Commission on public benefit in deciding what activities the Charity undertakes and may undertake in the future. In particular, the Trustees believe that the principal aim of the Charity to help the advancement of the Christian faith will benefit the wider public as, through doing this, the Charity enables members of the public to better understand their purpose in life and to enjoy the moral framework that arises from understanding the Christian faith. In addition, the Charity seeks to work for the public good through its charitable purposes which include the relief of those in need, hardship or distress as a result of local, national or international disaster or by reason of hunger, disease, sickness or their social and/or economic circumstances as well as the training, care, and rehabilitation of people in prison and people with a conviction.

b. Charitable Objects

As defined in The Paloma Foundation’s Constitution (Governing Document) the Charity’s objects (“objects”) are specifically restricted to the following:

c. The Paloma Foundation’s Strategy for Achieving its Aims

There are three stages to the Charity’s strategy for achieving its aims:

  1. Build a robust financial base (see Financial Review below)

  2. Invest funds to create a sustainable annual income to be used for making grants. These investments are likely to be a combination of:

  3. Loans to entities which are sympathetic to our aims, generally secured on a property asset, to facilitate each entity's activities and to generate income via an annual coupon

  4. Other UK real estate to be occupied by entities which are sympathetic to our aims, acquired to facilitate their activities and leased to them to provide rental income

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THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

OBJECTIVES AND ACTIVITIES (CONTINUED)

d. The Short and Longer Term Aims and Objectives

The short term aim and objective is to build a robust financial base and then to create a sustainable annual income, while beginning to make grants/programme related investments to promote the aims of the Charity. The longer term aim and objective is to advance the Charity's aims by expanding the grant making/programme related investments as the income grows.

The Trustees are also looking to use their deep knowledge and experience of the UK real estate market to own buildings and make loans on buildings. Providing liquidity, in the form of secured loans paying an annual coupon, will enable entities which are sympathetic to our aims to acquire buildings where their activities can take place. This liquidity could, for example, enable the entity to acquire and renovate or improve an asset and allow them the time to raise funds from supporters or raise conventional bank debt to repay the Charity’s loan. The Charity’s first transaction, the providing of a Programme Related Investment in 2023 to the UK Christian School, is an early example of that.

e. Grant-making Policy

Funding Criteria. The Charity will consider all applications that fall within our charitable purposes and meet our funding criteria and, for which, the due diligence process has not identified any unacceptable issues.

Grants will be made based on the funding available and solely on merit.

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THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

ACHIEVEMENTS AND PERFORMANCE

a. Review of Activities

Activity

The Paloma Foundation opened a reserves account with RBS in June. The account is a Liquidity Manager 35 Day Account which will earn interest of 2.75% on the balance. An amount of £840,000 was added to the reserves account leaving a small balance in the current account.

No additional social investments were made during 2024.

Donations

A donation of £181,760 was received in January. Gift aid was applied for and a payment of £45,440 was received in March.

b. Fundraising Activities

The Charity does not currently engage in significant fundraising activities, nor does it employ or engage professional fundraisers or commercial participators. As such, the Charity is not registered with the Fundraising Regulator. However, if fundraising activities increase in future, the Charity will review this. The Charity is committed to avoiding any intrusive fundraising approaches and will never apply undue pressure on a person to give money or other property. The Charity did not receive any complaints relating to fundraising activities.

FINANCIAL REVIEW

a. Going Concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves Policy

The Charity holds reserves to cover unexpected financial shocks, such as a material fall in funding and a sudden increase in expenditure. The policy of the Charity is to hold free reserves equivalent to 6 months' expenditure. This is between £10,000 and £15,000. Free reserves (equivalent to unrestricted funds less designated funds) were £882,257, which is above the range targeted by the Trustees. The Trustees are working to reduce excess reserves by making grants.

c. Review of Financial Position and Performance

During the year, total income amounted to £257,361, of which £227,200 was unrestricted donations and £30,161 was unrestricted interest income.

Charitable expenditure totaled £2,762, of which £242 was bank charges and £2,520 was support and governance.

The net surplus during the year was £254,599.

At the year-end, total funds amounted to £1,182,257, all of which were unrestricted. Funds totalling £300,000 are designated and represent the programme related social investment; these funds are expected to be realised at the end of the five-year loan period.

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THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

d. Principal Risks and Uncertainties

The principal risks and uncertainties identified by the Trustees are as follows:

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. Constitution

The Paloma Foundation is a registered charity, number 1187153, and is constituted under a CIO Constitution (foundation model).

b. Methods of Appointment or Election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the CIO Constitution. The Charity comprises three Trustees and one volunteer. The Trustees delegate the day-to-day admin of the Charity to Martine Beard (volunteer).

There must be at least three charity Trustees. The maximum number of Trustees is nine.

In appointing Trustees, due consideration is given to ensuring that the Trustees have, between them, the skills and experience necessary to manage the Charity effectively and in accordance with charity law.

c. Organisational Structure and Decision-Making Policies

All decisions are made by the Trustees. No decision can be taken at a meeting unless a quorum is present at the time when the decision is taken. The quorum is two Trustees. A Trustee is not counted in the quorum present when any decision is made about a matter upon which he or she is not entitled to vote. Questions arising at a meeting are decided by a majority of those eligible to vote. In the case of an equality of votes, the decision is not carried.

d. Policies Adopted for the Induction and Training of Trustees

The induction of new Trustees is designed to provide a full briefing on the work of the Charity. It involves meetings with the other Trustees, covering the work of the Charity, policies and procedures and future direction. Trustees are given a welcome pack that includes a copy of the CIO constitution, the latest Annual Report and Accounts and copies of relevant Charity Commission guidance as well as other relevant material.

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THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Future Direction of the Charity

There has been a delay to the planned Programme-related investment to The Jericho Trust which was detailed in last year's report. Details are included below.

The Paloma Foundation has been asked to consider making a Programme Related Investment of £250,000 to The Jericho Trust (Charity No 1205926) for five years with an annual coupon of 5% to enable the Trust to acquire a property at Thamesworks, Church Street, Chiswick W4 2PD. The proposed use of the building is partly as an HMO to accommodate care leavers, partly as a residential unit with communal space to be occupied by a Christian family who will manage the care facility and host Christian events and partly as commercial space leased to third party tenants to generate income.

The Trust aim is to act as a resource, within a Christian ethos, for young people by providing advice and assistance and organising programmes of physical, educational and other activities as a means of: a) advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals. b) advancing education c) providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons. d) protecting and preserving good health. Any material change to this “Christian Ethos” will be an event of default under the terms of the loan. If this opportunity progresses then full due diligence will be carried out.

Also, the Charity is considering supporting the activities of StandOut, Hope into Action and ASLAN by way of a grant, to be confirmed. All these charities are run according to a Christian ethos.

StandOut is an award-winning charity that empowers people to rebuild their lives after prison. Through a threephase programme, they help participants discover their potential, make positive changes and prepare for life after release. Each journey is individual, and leaving prison isn’t easy. That's why StandOut provides one-to-one coaching and support that bridges the transition between prison and the community. They are determined that more people leaving prison are empowered to make positive change that has an impact on them, their families, and society.

Hope into Action’s vision is for every church to lovingly make a home for people who have been homeless. They believe the church has the ability to respond to all three forms of poverty. To provide the resource of a house. To offer relationships of friendship and support. And to share a message which can transform someone’s very identity. Their mission is to mobilise, unite and unleash Christian prayer, investments, donations and relationships to fight the injustice of homelessness. The possibility of acquiring 2-3 bedroom houses in cities where Hope into Action already operates, to be rented to Hope into Action for them to house homeless people, together with a grant to meet the costs of running the house, is being considered.

The All Souls Local Action Network (ASLAN) began as a tea run back in 1988, and since then has grown into a number of projects working with those affected by homelessness across London’s West End. ASLAN run a variety of initiatives including serving a hot breakfast every Saturday morning, visiting people where they sleep (starting with those on our front steps), and a be-friending programme that offers support, regular meals, and weekly Bible studies for those interested. In the winter months, they usually host a shelter. The team are committed to manifesting God’s love to homeless people through their actions by addressing physical, mental and spiritual needs; by giving help and affection without preconditions; by transmitting their joy in Christ; and by steadily improving standards of care and support, with God’s guidance. The Foundation is considering a three year commitment to fund the majority of the cost of running the shelter that ASLAN operates.

There are no plans for the future direction of The Paloma Foundation to change materially from the aims and strategy as set out above.

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THE PALOMA FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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 & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the CIO Constitution. 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.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mr Jack Pitman Chair

Date: 30 July 2025

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THE PALOMA FOUNDATION

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE PALOMA FOUNDATION ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2024.

RESPONSIBILITIES AND BASIS OF REPORT

As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

INDEPENDENT EXAMINER'S STATEMENT

Since the Charity'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 The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

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 accounts to be reached.

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Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed: Dated: 30 July 2025

Michael Hewett FCA DChA

Peters Elworthy & Moore Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA

Page 9

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024

Note
INCOME FROM:
Donations
4
Investments
5
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
6
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
2024
£
227,200
30,161
257,361
2,762
2,762
254,599
927,658
254,599
1,182,257
Total
funds
2024
£
227,200
30,161
257,361
2,762
2,762
254,599
927,658
254,599
1,182,257
Total
funds
2023
£
925,500
7,572
933,072
5,414
5,414
927,658
-
927,658
927,658

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 12 to 20 form part of these financial statements.

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Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

BALANCE SHEET AS AT 31 DECEMBER 2024

Note
FIXED ASSETS
Social investments
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
12
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Unrestricted funds
13
TOTAL FUNDS
3,750
881,027
(2,520)
2024
£
300,000
882,257
1,182,257
1,182,257
1,182,257
-
630,058
(2,400)
2023
£
300,000
627,658
927,658
927,658
927,658

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr Jack Pitman Chair

Date: 30 July 2025

The notes on pages 12 to 20 form part of these financial statements.

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Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1. GENERAL INFORMATION

The Paloma Foundation is a charitable incorporated organisation (CIO) registered with the Charity Commission of England and Wales (charity registered number: 1187153). Its principal office is disclosed on page 1.

The functional and presentational currency of the Charity is GBP.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Paloma Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 GOING CONCERN

There are no material uncertainties in respect of the Charity's ability to continue as a going concern.

2.3 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants and donations are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income from programme related investments is recognised on a receivable basis. Receipts owing are accrued; receipts in advance are deferred.

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 12

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.4 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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support and governance costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 DEBTORS

Debtors are recognised when there is an entitlement at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.7 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 PROGRAMME RELATED INVESTMENT

Programme related investments are held at cost less impairment.

2.9 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.10 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 13

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.11 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

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.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Valuation of programme related investments

Programme related investments are valued at cost less impairment. When assessing the carrying value of the investments, the Trustees consider whether there are any impairment indicators and whether an impairment (or a reversal of a previous impairment) is required. The value of programme related investments subject to this judgement is £300,000 (2023 - £300,000).

Page 14

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

4. INCOME FROM DONATIONS

Unrestricted
funds
2024
£
DONATIONS
Donations
181,760
Gift Aid
45,440
227,200
Unrestricted
funds
2023
£
DONATIONS
Donations
740,400
Gift Aid
185,100
925,500
5.
INVESTMENT INCOME
Total
funds
2024
£
181,760
45,440
227,200
Total
funds
2023
£
740,400
185,100
925,500
Unrestricted
funds
2024
£
Bank interest
15,161
Programme related investment interest
15,000
30,161
Unrestricted
funds
2023
£
Programme related investment interest
7,572
Total
funds
2024
£
15,161
15,000
30,161
Total
funds
2023
£
7,572

Page 15

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

6. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2024
£
Charitable activities
2,762
Unrestricted
funds
2023
£
Charitable activities
5,414
Total
2024
£
2,762
Total
2023
£
5,414

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Charitable activities
Charitable activities
Activities
undertaken
directly
2024
£
242
Activities
undertaken
directly
2023
£
3,014
Support
costs
2024
£
2,520
Support
costs
2023
£
2,400
Total
funds
2024
£
2,762
Total
funds
2023
£
5,414

Page 16

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

7. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED) ANALYSIS OF DIRECT COSTS

Bank charges
Legal fees
ANALYSIS OF SUPPORT COSTS
Accounts preparation (governance)
Independent examination (governance
8.
INDEPENDENT EXAMINER'S REMUNERATION
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts
Fees payable to the Charity's independent examiner in respect of:
Preparation of statutory financial statements
Total
funds
2024
£
242
-
242
Total
funds
2024
£
1,890
630
2,520
2024
£
630
1,890
Total
funds
2023
£
184
2,830
3,014
Total
funds
2023
£
1,800
600
2,400
2023
£
600
1,800

9. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - £NIL).

Page 17

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

10. SOCIAL INVESTMENTS

Programme
related
investments
£
COST
At 1 January 2024
300,000
300,000
NET BOOK VALUE
At 31 December 2024
300,000
At 31 December 2023
300,000
Social investments comprise:
PROGRAMME RELATED INVESTMENTS
Loans
2024
Total
2024
£
£
Loan to UK Christian Schools Ltd
300,000
300,000
Total
£
300,000
300,000
300,000
300,000
Total
2023
£
300,000

The loan has been made to help UK Christian Schools Limited (UKCS) purchase new premises located at 30-32 Tabard Street, London. These premises will be used by UKCS to engage in activities that are aligned with those of the Paloma Foundation. The loan is repayable in five years' time and yields interest of 5% per annum.

11. DEBTORS

DUE WITHIN ONE YEAR
Accrued income
12.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accruals
2024
£
3,750
2024
£
2,520
2023
£
-
2023
£
2,400

Page 18

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

13. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
UK Christian Schools
GENERAL FUNDS
General Fund
TOTAL UNRESTRICTED FUNDS
Balance at 1
January
2024
£
300,000
627,658
927,658
Income
£
-
257,361
257,361
Expenditure
£
-
(2,762)
(2,762)
Balance at
31
December
2024
£
300,000
882,257
1,182,257

Designated funds

The UK Christian Schools fund represents the loan made to UK Christian Schools Ltd to finance the purchase of their new premises located at 30-32 Tabard Street, London. Further details of this programme related social investment are included in Note 10 .

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
UK Christian Schools
GENERAL FUNDS
General Fund
TOTAL UNRESTRICTED FUNDS
Income
£
-
933,072
933,072
Expenditure
£
-
(5,414)
(5,414)
Transfers
in/out
£
300,000
(300,000)
-
Balance at
31
December
2023
£
300,000
627,658
927,658

Page 19

Docusign Envelope ID: 7FAD019C-89E4-4BB2-B073-7C6557495E9E

THE PALOMA FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

14. RELATED PARTY TRANSACTIONS

During the year, total donations (including Gift Aid) received from Trustees amounted to £227,200 (2023 - £925,500). There were no other related party transactions during the year (2023 - £NIL).

Page 20