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2024-09-30-accounts

The carbon community '4The carbo.n Commtiri ANNUAL/REPORT,

Contents

Cover Letter 2 from the Trustees 3

2023/2024 Highlights

Annual Report & 19 Financial Statements

Cover Letter from the Trustees

2023/2024 has been a year of thriving - together . It has been a year shaped by purpose, progress, and people, as we advanced our mission across trees, science, and community .

We began the year with our most ambitious Big Tree Measure yet - this time with a new challenge. With the help of 120 dedicated community scientists, we set out to individually Glandwr Forest measure and geo-position 6,400 trees. Their efforts supported both our flagship Carbon Study and our new Measurement, Reporting and Verification (MRV) Study, laying the groundwork for future innovation in forest-based carbon capture.

If you’re new to The Carbon Community, allow us to share a little of our story. We started with a simple but powerful question:

“How can we help trees sequester more carbon?”

That question led to collaborations with leading scientists and the creation of a pioneering research programme focused on using nature to help forests grow faster, become more resilient, and store more carbon.

Our experimental research site, established in October 2020, investigates two forest types – mixed broadleaf and conifer - alongside two nature-based treatments: enhanced rock weathering and soil microbiome inoculation . This year marked the second phase of our study, with significant data collection efforts undertaken by our partners at Imperial College London and the Royal Botanic Gardens, Kew . We also launched our MRV Study with Swansea University , which has already delivered a robust baseline of data, including multi-spectral drone mapping, spatial analysis, and thousands of tree-level zmeasurements. This study is being funded by the Forestry Commission’s Woodlands Into Management Forestry Innovation Fund.

Science is at the heart of what we do - but so is community . One of the most unique aspects of our work is that we involve people directly in the research. In 2023/2024, we welcomed over 310 participants at 31 events. This included 25 community science days, during which participants gained hands-on experience while contributing to real-world environmental science.

Meanwhile, Glandwr Forest continues to flourish. Originally planted in 2021, the new woodlands were thoughtfully integrated into the existing landscape, and this care did not go unnoticed. In July 2023, The Carbon Community and our partner Tilhill Forestry were honoured with three prestigious awards at the Royal Welsh Show, one of Europe’s most prominent agricultural events. These awards recognised excellence in woodland management, community engagement, and sustainable innovation.

Beyond our research plots, Glandwr Forest includes mature hedgerow trees, grasslands, peatlands, and native biodiversity. This year, we welcomed visitors from near and far - scientists, landowners, policymakers, and supporters - as we look to develop this extraordinary site as a living, learning landscape for both carbon sequestration and nature recovery.

Together, through trees, science and community, we can thrive.

Charles, Heather and Jane

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The Carbon Community

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The Carbon Community

2023/2024 Highlights

Within the Glandwr Forest Carbon Study there are 6,400 trees, each with their own individual barcode. During our Big Tree Measure 2023, each of these trees was measured, including diameter at base, diameter at 1.3 meters and tree height. This year, these trees were also geo-positioned as part of our Measurement, Reporting and Verification Study.

Big Tree Measure October 2023

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The Carbon Community

The Carbon Community

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Research, Awards & Meadows

It was a busy summer at Glandwr Forest with researchers from Imperial College London; the Royal Botanic Gardens, Kew; Swansea University; and the University of Sheffield on site collecting data. In July, Glandwr Forest won three prestigious awards at the Royal Welsh Show, and we had various visits from meadow experts to advise us on how to best manage our meadow areas for biodiversity.

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The Carbon Community

The Carbon Community

Getting Ready for Big Tree Measure 2024

In August and September, we began preparing for Big Tree Measure 2024. Testing out our equipment and measurement protocol helps us ensure we have the right equipment for the growing trees.

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The Carbon Community

The Carbon Community

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The Carbon Community

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 30 September 2024

Company registration number: 12273280 Charity registration number: 1187231

UHY Ross Brooke, 31A Charnham Street Hungerford, Berkshire, RG17 0EJ

Contents

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Trustees’ Report

Trustees’ Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 September 2024.

Trustees

C M Nicholls H B Allen J K Nicholls

Objectives and activities

Independent 31 Examiner’s Report

Objects and aims

The Carbon Community is an environmental charity dedicated to accelerating carbon removal from the atmosphere, with breakthrough science. Our journey started with a question. ‘How do you maximise carbon sequestration in a forest?’ This led to many conversations with leading environmental scientists that helped design our landmark research program into helping trees grow faster, become more resilient and absorb more carbon from the atmosphere.

To achieve this our aim is to bring together trees, science and people by establishing a new broadleaf forest for future generations, facilitating scientific research and fostering community science.

Statement of 32 Financial Activities

Our guiding principles:

All of our work is grounded by the following guiding principles:

• Research: Support scientists, funding primary research on accelerating carbon sequestration in forest ecosystems and providing a research facility at Glandwr Forest for masters and PhD students.

• Education: Share our findings, learnings and insights with our community scientists, students and the global community.

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Balance Sheet

• Advocacy: Advance planting techniques for trees everywhere.

• Community: Build a vibrant community of people working to address the climate and biodiversity crises both local to our projects and in locations where our research can help local projects accelerate carbon sequestration.

Notes to the 34 Financial Statements

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The Carbon Community

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The Carbon Community

Trustees’ Report

Achievements and performance

In 2023/ 2024 our community has been thriving together, achieving remarkable progress across four of our guiding principles - Research, Education, Community and Action.

Research:

As a science-based environmental charity we are proud to report progress in 2023 / 2024 on both our primary research as well as the continued development of Glandwr Forest as a research facility.

Glandwr Forest Carbon Study

This pioneering field-trial represents a unique ongoing research program between The Carbon Community, leading environmental scientists, and a network of over 200 citizen scientist volunteers. As part of this study, research grants are given to both Imperial College London and the Royal Botanic Gardens, Kew.

The experiment was established in October 2020 and examines two types of forestry - broadleaf and conifer - and two nature-based treatments - enhanced rock weathering and soil microbiome inoculation. We are currently in the second phase of this research project and this year saw significant work on data collection from both researchers and citizen scientists.

Our financial year begins in October which is the time for our annual Big Tree Measure, the flagship event in our community science program. Between 4th to 14th October 120 volunteers came together at Glandwr Forest to measure 6,400 trees. This is our third year measuring the trees and we were delighted to welcome new volunteers as well as individuals and organisations who return to support this program year after year.

In last year’s report we highlighted our ongoing commitment to continue the Glandwr Forest Carbon Study through to the critical five-year mark in early 2026. As of the end of this financial year, we have reached close to 60% of our fundraising goal of £340,000 for this phase of the project.

Glandwr Forest MRV Study

In June 2023, The Carbon Community secured a two-year grant from the Forestry Commission’s Woodlands Into Management Forestry Innovation Fund for a two-year MRV (Monitoring, Reporting and Verification) project together with Swansea University. 2023 / 2024 has established a successful baseline of data - including tree geolocation, tree measurements, initial drone flights and initial spatial assessment.

Glandwr Forest as a Research Facility

In March 2024 we held our first research sharing session. There were presentations from Imperial College London; Royal Botanic Gardens, Kew; and ETH Zürich all of which are involved in our Carbon Study. In addition, there were presentations from scientists from the University of Oxford, University of Sheffield, and Swansea University who are conducting research at Glandwr Forest.

Education :

At The Carbon Community education revolves around our community science volunteering program which runs throughout the year including our flagship Big Tree Measure event in October. Each year we also try to broaden the reach of our education opportunities with events such as our guided wildflower walks which attracts new people with new interests.

Trustees’ Report

Education highlights for 2023 / 2024 have included:

• Community science volunteers have joined us to geo-position and measure trees as well as to help maintain the integrity of the study. They are able to learn new techniques and directly contribute to environmental research.

Community:

Throughout the year 310 event attendees joined us for 31 events, including 25 community science volunteering days.

Action:

The Carbon Community and Tilhill Forestry were recognised in July 2024 winning three prestigious forestry awards for Glandwr Forest at the Royal Welsh Show, one of the biggest agricultural shows in Europe. These awards recognised outstanding achievements in woodland management, community access, and innovative environmental practices. These results reflect the hard work and dedication of everyone who has been involved in our community.

This award recognised the exceptional growth rate of broadleaf trees, meticulous management, and dedication to enhancing biodiversity.

• Community or Public Access Woodland (Class H) - Bronze Medal

This medal acknowledges the huge support given by community volunteers to the scientific research conducted at the Glandwr Woodland, and the work done to provide community access and recreation.

Throughout the year we also took action to enhance habitat across Glandwr Forest in our meadows and our woodlands. Close to 400 trees were planted, with a focus on planting and remeasuring 325 trees that had died in our carbon and dose-response studies. Finding 325 specific trees across 11.5 hectares is quite a feat which was made easier by the geo-positioning work that had been done earlier in the year. We also planted 114 trees donated by employees of SAP, and 60 Black Poplar cuttings as part of our conservation efforts. This was the first year that we were able to remove tree shelters in our research areas where the trees are now large enough to survive without a shelter. All of these shelters will go to be recycled into new shelters as part of a closed loop recycling system.

When the new woodlands were planted in 2021 they were carefully designed to fit into the landscape and were planted on the least biodiverse areas of the site. Areas identified as being either of landscape significance or biodiversity value were left unplanted. There are close to 30 hectares dedicated to meadows, rhos pasture and peatland at Glandwr Forest. In 2023 / 2024 we welcomed visits from grassland enthusiasts, Carmarthenshire Meadows Groups and from Plant Life as part of the Glaswelltiroedd Gwydn (Resilient Grasslands) project which seeks to protect and enhance semi-natural grasslands across Wales. This was an important step to help us look at how best to bring more of the site into management.

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The Carbon Community

The Carbon Community

Trustees’ Report

Fundraising disclosures

Public Fundraising:

The Carbon Community’s aim is to raise funds in a respectful way that is aligned with our values. In all of our fundraising we work diligently to comply with the Code of Fundraising Practise and uphold the standards it promotes.

Public benefit

The public benefits that shape our annual activity are environmental protection and climate restoration. In shaping our objectives for the year and planning our activities, the trustees have given consideration to the Charity Commission’s guidance on public benefit (PB2).

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Data Protection:

The Carbon Community places great importance on the security of support and volunteer data and personal information. For information on how the charity uses and protects personal data, please see our privacy policy. https://www.carboncommunity.org/privacy-policy

Financial review

Overall, 2023/24 was a solid year financially for The Carbon Community with total income into the charity during the year of £76,977, of which £48,459 was from donations, £28,093 from government grants and £425 from gift aid reclaimed.

Total expenditure on charitable activities was £36,302 including:

Trustees’ Report

Policy on reserves

In the current stage of TCC’s evolution, the Trustee’s have approved a reserves policy to hold a minimum of three months of reserves and a maximum of nine months of reserves to cover our operating costs. These reserves will be separate to ensure that we have funds to cover our forward contracts. They will also be separate to ensure that we have sufficient working capital for tree maintenance due to the time lag in receiving funds from our contract with NRW (Natural Resources Wales). The Trustees will review this Reserves Policy a minimum of once per year. The current level of reserves will be reviewed at each Trustee meeting.

In reviewing our current level of reserves versus our reserves policy, the Trustees have reviewed the forward commitments to our research grants for the next 18 months, three months of running costs, our citizen science program and our site emergency reserve. The Trustees have also taken into account our ongoing mortgage commitments which has a repayment deadline of 30th September 2026.

Investment policy and objectives

The Charity does not have any investments. The Trustees are committed to developing an investment policy when we reach an appropriate stage in our evolution.

Plans for future periods

Aims and key objectives for future periods

In last year’s report we outlined that we are now looking towards the next phase of our development from 2024 – 2026 as we look at how to continue to bring together trees, science and people in support of our mission. This includes the development of Glandwr Forest, our research, Glandwr Forest as a research facility, and our community science program.

Trees - Development of Glandwr Forest:

Glandwr Forest is more than trees. There are close to 30 hectares dedicated to mature hedgerow trees, meadows, rhos pasture and peatland. Over the coming years we will be looking at how to bring more of the site into management for carbon sequestration, biodiversity, education as well as future research opportunities.

Within the £20,543 spent on spent on Scientific research there were two grants paid, £12,178 to the University of Swansea and £4,453 to the Royal Botanic Gardens, Kew.

The Charity made a loan of £46,602 to Carbon Community Trading Limited during the year for tree planting, forest management and maintenance.

Science – Glandwr Forest Carbon Study and Glandwr Forest MRV Study:

In 2025 and 2026 we hope to see the publication of the first findings from our primary research studies. Our Carbon Study aims enhance the fundamental understanding of carbon dynamics in forest ecosystems, identifying techniques to enhance CO2 uptake in trees and soil. The Glandwr Forest MRV Study looks at how to use remote sensing to measure the health, growth and carbon sequestration of young forests.

The funds held at the end of the year were as follows:

Science – Our Research Facility:

Restricted - £24,278

Designated unrestricted - Tangible asset - Land - £644,542

General unrestricted £607,931 (breakdown note 17 of the accounts)

Total £1,276,751

We wish to say thank you to all the supporters of The Carbon Community. To everyone who has volunteered, donated or helped spread the word, thank you for a fantastic year!

Continue to grow the number of organisations conducting research at Glandwr Forest.

People – Community Science:

Further develop our community science program building links with the community, young people, NGOs, researchers, government, forestry sector and our supporters.

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The Carbon Community

The Carbon Community

Trustees’ Report

Structure, governance and management

Recruitment and appointment of trustees

The subscribers to the Memorandum are the first Trustees of the Charity, who shall hold office for such a term of office as they determine. Any person who is willing to act as a Trustee of the Charity and is permitted to be so appointed by law and the articles, may be appointed to be a Trustee by a resolution of the Trustees. A Trustee shall serve a four-year term of office (unless the Trustees resolve that he or she should be appointed for a shorter period) and may be reappointed with no limit on the number of consecutive terms of office a Trustee may hold.

Organisational structure

The Carbon Community was officially registered at Companies House on 21st October 2019 and by the Charity Commission on 6th January 2020. The charity was constituted as a company limited by guarantee and is governed by Memorandum and Articles of Association dated 21 October 2019. The Trustees are directors for the purpose of company law. In the event of the company being wound down members are required to contribute an amount not exceeding £1.

Major risks and management of those risks

Through the course of 2023/2024, the Trustees have continued to look at five areas of risk for The Carbon Community - land management, science project implementation, financial resilience, volunteers and reputational risk.

Land Management:

Forest management is being handled by Tilhill Forestry who manage day to day forestry operations including ground preparation, tree planting, fencing, site maintenance, grassland management and site access. There are three areas of meadowland where a local farmer brings their sheep to graze which assists with grassland management, beyond this consideration is being given to the best ways to manage our grasslands going forward for the benefit of biodiversity. Volunteer access for our annual tree measurement continues to be important and investments have been made for this year’s event to secure access the bridge over the Afon Bran. Within two years the charity will need to resurface its primary access road and various options are being explored. A program of removal of trees suffering from ash dieback has been undertaken where these trees might present risk to members of the public.

Trustees’ Report

Science Project Implementation:

Our science project launched successfully on May 27, 2021. In November 2022 after our second year of tree growth in the field and second year of tree measurement, our Scientific Advisory Board agreed to extend the study for an additional three years. This five-year time horizon allows for a total carbon picture of the forest and requires additional funding for some of the streams. This time horizon will be assessed each year following our Big Tree Measure, the Scientific Advisory Board regularly reviews and manages risk.

Financial Resilience:

Glandwr Forest is now registered with The Woodland Carbon Code, which paves the way to raising funds from the sale of carbon credits should this be required. An initial repayment of the mortgage was made ahead of schedule in September 2022, the remaining balance of the mortgage will be paid in line with the sale of carbon credits which are being considered as a way of increasing reserves and paying down the loan.

During the past year, The Carbon Community secured donations from Pure Good Foundation, and SAP UKI, as well as a grant from the Forestry Commission for new research on remote verification. To address our long-term financial resilience and to extend our scientific research the Trustees continue to look at additional sources of funding the long term success of the charity, and to replace donations from Pure Good which we believe will come to an end.

Volunteers:

Throughout 2023 / 2024, The Carbon Community has continued our community science volunteer program with over 200 volunteers [to be confirmed in final audit] participating in our onsite volunteering programs. Risk assessments and safety briefings are in place.

Reputational risk:

The trustees have also discussed which kind of companies the charity should partner with and accept donations from. For each corporate donation, the trustees ensure that they are satisfied, and able to show, that it is in the best interests of the charity to accept the donation. This involves a careful consideration, based on evidence, of the risks of accepting the donation against its benefit. The Trustees are also aware of our commitments to under the Welsh Language (Wales) Measure 2011 and have put in place a Welsh Language Policy with target deliverables.

Third party liability insurance is in place and as the trees planted this season grow larger, the Trustees plan to investigate additional insurance to protect against pest, disease and fire risk. The Trustees are keeping a close eye on deer that have been spotted in the area, fencing has not been required this year, however this may be needed in future years.

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The Carbon Community

The Carbon Community

Trustees’ Report

Reference and Administrative Details

Trustees and officers

The trustees and officers serving during the year and since the year end were as follows:

C M Nicholls H B Allen Trustees J K Nicholls 40 Alma Road Windsor Principal Office Berks SL4 3HJ Company Registration Number 12273280 Charity Registration Number 1187231

The charity is incorporated in England and Wales.

UHY Ross Brooke 31a Charnham Street Independent Examiner Hungerford Berkshire RG17 0EJ

IBB Solicitors Capital Court 30 Windsor Street Uxbridge Middlesex UB8 1AB AgriAdvisor Henllan Pumsaint Llanwrda SA19 8AX

Solicitors

Starling Bank Limited 3rd Floor 2 Finsbury Avenue London EC2M 2PP

Bankers

Trustees’ Report

Statement of trustees’ responsibilities

The trustees (who are also the directors of The Carbon Community for the purposes of company law) 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), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006. The annual report was approved by the trustees of the charity on 23[rd] July 2025 and signed on its behalf by:

.............................................................................. signed by Charles Nicholls C M Nicholls Chairman of the Board of Trustees

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The Carbon Community

The Carbon Community

Independent Examiners Report

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 September 2024.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

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:

  1. accounting records were not kept in respect of The Carbon Community as required by section 386 of the 2006 Act; or

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

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

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.

..................................................................... signed by Kerry Hawkins

.....................................................................

Kerry Hawkins, FCCA, UHY Ross Brooke

31A Charnham Street Hungerford Berkshire RG17 0EJ

Date: 23[rd] July 2025

Statement of Financial Activities

(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Note
Income and Endowments from:
Donations and legacies
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
3
3
4
4
17
17		 Unrestricted
funds
£
22,510
22,510
(15,759)
(15,759)
6,751
9,646
16,397
1,236,076
1,252,473
Unrestricted
funds
£
151,826
151,826
(18,774)
(18,774)
133,052
51,448
184,500
1,051,576
1,236,076		 Restricted
funds
£
54,467
54,467
(20,543)
(20,543)
33,924
(9,646)
24,278
-
24,278
Restricted
funds
£
64,731
64,731
(77,113)
(77,113)
(12,382)
(51,448)
(63,830)
63,830
-		 Total
2024
£
76,977
76,977
(36,302)
(36,302)
40,675
-
40,675
1,236,076
1,276,751
Total
2023
£
216,557
216,557
(95,887)
(95,887)
120,670
-
120,670
1,115,406
1,236,076

All of the charity’s activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 17.

The notes on pages 34 to 43 form an integral part of these financial statements.

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The Carbon Community

The Carbon Community

Balance Sheet

Balance Sheet as at 30 September 2024

Note
Fixed assets
Tangible assets
8
Investments
9
Current assets
Owed by subsidiary undertakings
10
Cash at bank and in hand
11
Creditors: Amounts falling due within one year
12
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one
year
13
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
17
Unrestricted income funds
Unrestricted funds
Total funds
17		 2024
£
652,585
1
652,586
550,516
177,249
727,765
(63,600)
664,165
1,316,751
(40,000)
1,276,751
24,278
1,252,473
1,276,751		 2023
£
655,207
1
655,208
503,914
198,996
702,910
(82,042)
620,868
1,276,076
(40,000)
1,236,076
-
1,236,076
1,236,076

Notes to the Financial Statements

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The principal place of business is: 40 Alma Road Windsor

Berkshire

SL4 3HJ

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared 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)) (issued in October 2019)

Basis of preparation

The Carbon Community 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 notes.

Going concern

For the financial year ending 30 September 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Directors’ responsibilities:

The financial statements on pages 12 to 23 were approved by the trustees, and authorised for issue on 23[rd ] July 2025 and signed on their behalf by:

............................................................................ signed by Charles Nicholls

C M Nicholls

Chairman of the board of Trustees

The notes on pages 34 to 43 form an integral part of these financial statements.

Group accounts not prepared

The Carbon Community is exempt from preparing group accounts as it is a small group.

Income and endowments

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 the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

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The Carbon Community

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The Carbon Community

Notes to the Financial Statements

Notes to the Financial Statements

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Furniture and Equipment 5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interestbearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £250.00 or more are initially recorded at cost.

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The Carbon Community

The Carbon Community

Notes to the Financial Statements

3 Income from donations and legacies

3 Income from donations and legacies
Unrestricted
funds		 Restricted Total Total
General
£		 funds
£		 2024
£		 2023
£
Donations and legacies;
Donations 3,247 45,212 48,459 190,269
Gift aid reclaimed 299 126 425 182
Grants, including capital grants;
Government grants 18,964 9,129 28,093 26,106
22,510 54,467 76,977 216,557

4 Expenditure on charitable activities

4 Expenditure on charitable activities
Unrestricted
funds		 Restricted Total Total
General
£		 funds
£		 2024
£		 2023
£
Site management 782 - 782 2,019
Independent examiners fee 3,770 - 3,770 3,240
Insurance 1,152 - 1,152 1,050
Website 540 - 540 380
Postage, printing and stationery 7 - 7 85
Grants paid - 16,336 16,336 72,949
Volunteering expenses 2,670 2,341 5,011 4,308
Marketing 1,968 - 1,968 4,391
Legal and professional fees - - - 1,800
Donation platform fees 1,944 - 1,944 1,944
Software and software support costs 304 - 304 1,484
Research expenses - 1,746 1,746 914
Depreciation 2,622 - 2,622 1,223
Admin expenses - 120 120 100
15,759 20,543 36,302 95,887

Notes to the Financial Statements

6 Independent examiner's remuneration

6 Independent examiner's remuneration
2024
£		 2023
£
Examination of the fnancial statements 3,770 3,240

7 Taxation

The charity is a registered charity and is therefore exempt from taxation.

8 Tangible fixed assets

8 Tangible fxed assets
Furniture and
equipment
£		 Land
£		 Total
£
Cost
At 1 October 2023 13,111 644,542 657,653
At 30 September 2024 13,111 644,542 657,653
Depreciation
At 1 October 2023 2,446 - 2,446
Charge for the year 2,622 - 2,622
At 30 September 2024 5,068 - 5,068
Net book value
At 30 September 2024 8,043 644,542 652,585
At 30 September 2023 10,665 644,542 655,207

5 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

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38

The Carbon Community

The Carbon Community

Notes to the Financial Statements

9 Fixed asset investments

9Fixed asset investments
2024
£		 2023
£
Shares in group undertakings and participating interests 1 1

Shares in group undertakings and participating interests

----- Start of picture text -----
Subsidiary
Total
undertakings
£
£
Cost
Additions 1 1
At 30 September 2024 1 1
Net book value
At 30 September 2024 1 1
----- End of picture text -----

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

----- Start of picture text -----
Country of Proportion of voting
Undertaking incorporation Holding rights and shares held Principal activity
2024 2023
Subsidiary undertakings
Generating
Carbon Community
England and Wales Ordinary 100% 100% income for the
Trading Limited
parent charity.
----- End of picture text -----

Notes to the Financial Statements

Subsidiaries

The loss for the financial period of Carbon Community Trading Limited was £55,070 (2023 - £25,921) and the aggregate amount of capital and reserves at the end of the period was £(101,581) (2023 - £(46,511)).

Carbon Community Trading Limited was incorporated on 26.10.20. Company registration number 12973020.

Carbon Community Trading Limited was established as a trading company in 2020 for the purpose of future revenue streams with all future profits going to The Carbon Community. Tree planting and maintenance is undertaken by Carbon Community Trading Limited.

10Debtors
2024
£		 2023
£
Due from subsidiary undertakings 550,516 503,914

Debtors includes £550,516 (2023: £503,914) receivable after more than one year.

----- Start of picture text -----
2024 2023
£ £
Due from subsidiary undertakings 550,516 503,914
11Cash and cash equivalents
2024 2023
£ £
Cash at bank 177,249 198,996
12Creditors: amounts falling due within one year
2024 2023
£ £
Other loans 60,000 60,000
Accruals 3,600 22,042
63,600 82,042
13Creditors: amounts falling due after one year
2024 2023
£ £
Other loans 40,000 40,000
----- End of picture text -----

The loan of £100,000 (2023 - £100,000) is secured by a fixed charge over the Land at Glandwr, Cynghordy.

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40

The Carbon Community

The Carbon Community

Notes to the Financial Statements

14 Analysis of net assets between funds

14 Analysis of net assets between funds
Unrestricted
funds
General
£
652,585
1
703,487
(63,600)
(40,000)
1,252,473		 Restricted Total funds at 30
September
funds
£		 2024
£
Tangible fxed assets - 652,585
Fixed asset investments - 1
Current assets 24,278 727,765
Current liabilities - (63,600)
Creditors over 1 year - (40,000)
Total net assets 24,278 1,276,751
Total funds at 30
September
2023
£
Tangible fxed assets 655,207
Fixed asset investments 1
Current assets 702,910
Current liabilities (82,042)
Creditors over 1 year (40,000)
Total net assets 1,236,076

Notes to the Financial Statements

16 Commitments

Grant commitments

The Carbon Community awarded a grant of £158,976 to the Waring Ecology Lab at Imperial College London in September 2023.

The grant start date was 1st July 2023 and runs for a period of 36 months. The grant of £158,976 included a figure of £18,612 to cover the salary of a lab technician for a period of 5 months, 1st August 2023 to 31st December 2023. There were no performance related conditions to the £18,612 and these costs were therefore accrued in the accounts to 30th September 2023. £18,316 was paid to Imperial College in the year to 30th September 2024. At the start of the year the brought forward grant commitment was £140,364, no further claims where made during the year so the carried forward balance remains the same. The balance of £140,364 at 30th September 2024 is not provided for in the accounts.

During the year The Carbon Community awarded a grant of £24,396 to the University of Swansea. £12,198 was paid during the year. No further claims have been made, the further commitment of £12,198 has been carried forward but is not provided in the accounts at 30th September 2024.

The remaining balances of both grants are performance-related. No further services other than those already paid for in the year were provided by the recipients prior to 30th September 2024. Therefore no further costs are recognised in these accounts.

Outstanding commitments not recognised as a liability at 30th September 2024 are as follows:-

Imperial College Grant - £140,364 Swansea Grant - £12,198

Total £152,562

15 Related party transactions

Donations from the trustees and their immediate family during the year totalled £nil. (2023 - £nil).

Heather Allen, a trustee, has provided an interest free secured loan of £200,000 to the charity. The balance outstanding at the end of the year was £100,000 (2023 - £100,000). £60,000 of the £100,000 outstanding balance has been shown as a current liability, but there is a flexible repayment arrangement.

The Charity made a further loan of £46,602 to Carbon Community Trading Limited during the year. The balance due to be repaid at the end of the year was £550,516 (2023 -£503,914).

Carbon Community Trading Limited is a wholly owned and VAT registered trading subsidiary which runs the forest and site operations for The Carbon Community. Repayment of this loan is deferred until such time that Carbon Community Trading Limited starts to generate sufficient income to be in a position to make repayments. Due to the uncertainty surrounding the loan repayments, we have not valued the loan at the present value of the future payments discounted at a market rate of interest. We do not consider this to affect the true and fair view given in the accounts at the year end date.

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42

The Carbon Community

The Carbon Community

Notes to the Financial Statements

17 Funds

17
Funds
Balance at
1 October
2023
£		 Incoming
resources
£		 Resources
expended
£		 Transfers
£		 Balance
at 30
September
2024
£
Unrestricted funds
General
Unrestricted 591,534 22,510 (15,759) 9,646 607,931
Designated
Land 644,542 - - - 644,542
Total unrestricted funds 1,236,076 22,510 (15,759) 9,646 1,252,473
Restricted funds
Scientifc research - 44,821 (20,543) - 24,278
Tree planting - 9,646 - (9,646) -
Total restricted funds - 54,467 (20,543) (9,646) 24,278
Total funds 1,236,076 76,977 (36,302) - 1,276,751
Balance at
1 October
2022
£		 Incoming
resources
£		 Resources
expended
£		 Transfers
£		 Balance
at 30
September
2023
£
Unrestricted funds
General
Unrestricted 407,034 151,826 (18,774) 51,448 591,534
Designated
Land 644,542 - - - 644,542
Total unrestricted funds 1,051,576 151,826 (18,774) 51,448 1,236,076
Restricted
Scientifc research - 25,667 (77,113) 51,446 -
Tree planting 63,830 39,064 - (102,894) -
Total restricted funds 63,830 64,731 (77,113) (51,448) -
Total funds 1,115,406 216,557 (95,887) - 1,236,076

43

The Carbon Community

UK Register Charity number 1187231

Formed as a private company limited by guarantee, registration number 12273280

@TheCarbonCom

45

The Carbon Community