The Free Shop
UK Charity registration No: 1194346
Annual Report and Unaudited Financial Statement for the year ended 31[st ] May 2025
The Free Shop Registered Charity Number: 1194346 Registered UK Address: 7 Carline Road, Lincoln, LN1 1HL
Legal and Administrative Information
Board of Trustees:
Alice Rose Corrigan Arthur Newton Emily Josephine Amy Carpenter Francesco Tessari Elizabeth Jo Costello Tasker Abigail Anna Swan Tom Page Mark Byrne
Departure from trusteeship Robert Albert Corrigan
Chair
appointed 21 February 2025 appointed 21 February 2025 appointed 21 February 2025 appointed 21 February 2025 appointed 1 February 2026
resigned 21 February 2025
Charity Number: 1194346 Charity Registered Name: The Free Shop
Registered Ofce: 7 Carline Road Lincoln LN1 1HL Telephone: 07308 522050 Email: operations@thefreeshoplebanon.org
Trustees Report for the year ended 3 ~~1~~[st ] ~~M~~ ay 2025
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).
Charitable Objectives and activities
The prevention or relief of poverty in the Middle East and North Africa (MENA) and Europe by providing items and services to individuals in need and/or charities, or other organisations working to prevent or relieve poverty.
Achievements and performance
The main achievements of the charity from 01.06.2024 to 31.05.2025 include supporting circa 4,000 families in need in the Bekaa Valley, Lebanon, with access to vital relief and humanitarian support. Families suffer from the ongoing economic crisis and rising levels of unemployment and poverty in the region. Our relief ensures they can still meet their daily basic needs.
In the Bekaa Valley, Lebanon, tens of thousands of families are suffering from multidimensional poverty, majorly living in informal tented settlements. As well as Syrians who live in tents, we also extend support Palestinian and Lebanese families who are living in brick houses and apartments. The aid distributions we organise are done through our physical free shop, meaning families have the freedom to browse and choose the donations they uniquely need in a physical space. No beneficiary pays for the donations they receive. During the period we enabled children to have decent clothing, new underwear, families to have warm bedding at home and for people to have shoes to wear to go to school/work. We also continued to distribute essential hygiene items, including; toothbrush, soap, washing up liquid and more. These items improve not only physical health but also personal confidence and feelings of self-worth. We also distribute toys for children, improving mental health. We also launched during the reporting period a new "back to school" project to distribute school items (notebooks, pencils, crayons etc.) to children in schools in our nearby area. We have benefited from a continued welcome reception from the local community, and operate our work using the community-based approach, giving locals the tools they need to create change in their society.
We monitor our outputs and impact through data collection and implement a web-app for stock and distribution tracking. Tracking our impact through data as well as beneficiary feedback forms has assisted us to grow as a charity and take on board the voice of our service users, ensuring our work fills genuine needs in the area and families we support. We sent one 40ft container of aid during the period, onboarded new remote volunteers, improved our safeguarding training for local team members, and also further diversified our income streams.
Structure, governance, and management
Type of governing document: Governing Document
How is the charity constituted? CIO
Policies and procedures adopted for the induction and training of trustees:
Upon induction, trustees are sent the advice on being a trustee from the Charity Commission. The trustees have meetings and record minutes. The trustees also have a WhatsApp Community and email chain where trustees can follow-up with any questions they have.
Financial Review
During the financial period we benefited majorly from crowdfunding activities, as well as income from grants via trusts and foundations. We secured continued grants from international funder ‘Choose Love’ (among others) and gained these funds through a relationship with a local fiscal sponsor with whom we have a robust Memorandum of Understanding. This mitigates the challenges posed to our charity by the large financial crisis in Lebanon, as we cannot open a bank or access funds through direct bank transfers as USD can not be withdrawn. Due to this, the charity also sends funds via TapTapSend (similar to Western Union) into Lebanon. Although fees were incurred, this was seen as safer than moving cash, as crime rates have increased in the country during this ongoing crisis.
During the funding period, we paid off loans totalling £10,081.94 totally wiping out the debt of the charity. At the end of the financial period, the charity owes loans to the amount of £0.
At the end of the financial period, unrestricted reserves are held, to the amount of £5,293.
The trustees have no uncertainties of the charity continuing.
A description of the principal risks facing the charity
As the charity operates in Lebanon, the charity faces some risks. These include the ongoing economic crisis, lack of political security and Governmental structure, high rates of poverty (high demand on services) and lack of power and electricity. The risks grew in October 2023, with the beginning of a conflict in the region. The daily activities of the charity have not been affected by this conflict as it is geographically located far away from danger. There has been some additional influx of beneficiaries to the region, which has added to the workload of the charity, but not to the general risks of it carrying out charitable operations. In this year, some of these effects still continue, as people who came to the area have stayed. The charity mitigates risks by having one trustee on the board who currently lives in Lebanon, one who formerly lived in Lebanon, one who speaks Arabic and three who have visited the country. In addition, connection with locals assists the understanding of changing environments in the country along with watching the news and keeping up to date with political, social and environmental developments. The charity also implements a wise series of safeguarding policies including a Risk Assessment and an Anti Corruption Policy. All safeguarding policies are translated into Arabic and given with training to all local volunteers to ensure they can be implemented.
Statement of trustees’ responsibilities
Law applicable to charities in England & Wales requires the trustees to prepare a financial statement for each financial period which give a true and fair view of the charity’s financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:
• select suitable accounting policies and then apply them consistently.
• observe the methods and principals in the Charities SORP.
• make judgements and estimates that are reasonable and prudent.
• state whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the Board of Trustees and signed on its behalf by:
………………………………….. …………………………………
Alice Rose Corrigan
Dated: 16/12/2025
Chair
Independent examiner’s report to the trustees of The Free Shop (Charity Number 1194346)
I report to the trustees on my examination of the accounts of the above Charitable Incorporated Organisation (“the CIO”) for the year ended 31 May 2025.
Responsibilities and basis of report
As the CIO's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the CIO’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
-
the accounting records were not kept in accordance with section 130 of the Charities Act; or
-
the accounts did not accord with the accounting records; or
-
the accounts did 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.
Signed
R.Armstrong
R Armstrong, MAAT
LimeGreen Accountancy Limited 20-22 Wenlock Road London England N1 7GU
30 March 2026
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
For the year ended 31[st ] May 2025
| Unrestricted Funds £ 2025 |
Restricted Funds £ 2025 |
Total £ Year ended 2025 |
Total £ Year ended 2024 |
||
|---|---|---|---|---|---|
| Notes | |||||
| Income From: | |||||
| Grants from trusts and foundations |
93,362 | 8,739 | 102,101 | 47,885 | |
| Public donations | 11,062 | - | 11,062 | 8,691 | |
| Donations from trustees | - | - | - | ||
| Other income | 2,952 | - | 2,952 | 2,038 | |
| Total Income | 3 | 107,376 | 8,739 | 116,115 | 58,614 |
| Expenditure On: | |||||
| Raising Funds | - | - | - | - | |
| Charitable Activities | 4 | (47,634) | (8,739) | (56,373) | (24,187) |
| Support costs | 6 | (45,772) | - | (45,772) | (40,265) |
| Total resources expended | (93,406) | (8,739) | (102,145) | (64,452) | |
| Net (outgoing)/ incoming resources |
13,970 | - | 13.970 | (5,838) | |
| Net movement in funds | 13,970 | - | 13,970 | (5,838) | |
| Fund balances at 31stMay 2024 |
(8,677) | - | (8,677) | (2,839) | |
| Fund balances at 31stMay 2025 |
5,293 | - | 5,293 | (8,677) |
The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities.
STATEMENT OF FINANCIAL POSITION
As at 31[st ] May 2025
| As at 31stMay 2025 | |||
|---|---|---|---|
| 2025 | 2024 | ||
| Notes | £ | £ | |
| Current assets | |||
| Debtors | 7 | - | 2,240 |
| Cash at bank and in hand | 24,979 | (182) | |
| Creditors: amounts falling due within one year | 8 | (19,686) | (10,735) |
| Net current assets | 5,293 | (8.677) | |
| Income funds | |||
| Unrestricted funds | 5,293 | (8,677) | |
| 5,293 | (8,677) |
The CIO is entitled to exemption from audit under Section 144 of the Charities Act 2011 for the year ended 31 May 2025.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2025.
The trustees acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 137 of the Charities Act 2011.
The financial statements were approved by the Board of Trustees, and authorised for issue, on and were signed on its behalf by:
....................................
Alice Rose Corrigan
Chair
Dated: 16.12.2025
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31[st ] May 2025
1. Accounting policies
Charity information
The Free Shop is a charitable incorporated organisation registered with the England and Wales Charity Commission. The registered office is 7 Carline Road, Lincoln, LN1 1HL.
1.1Accounting convention
The accounts have been prepared in accordance with the charity's Articles of Association and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Funding in the current climate of conflict in the region and growing competition for funding pots has been carefully considered and will be raised for discussion at all trustee meetings but is not currently considered to cause significant difficulties for the charity in this regard.
1.3 Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Resources expended
Income and expenses are included in the financial statements as they become receivable or due. Expenses include VAT where applicable as the charity cannot reclaim it.
1.6 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.7 Financial instruments
The charity has applied the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.8 Allocation of support costs
Support costs are these functions that assist the work of the charity, but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, and governance costs, which support the charity's projects and activities.
2. Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3. Income
| Unrestricted funds 2025 |
Restricted funds 2025 |
Total 2025 | Total 2024 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Grants from trusts and foundations | 93,362 | 8,739 | 102,101 | 47,885 |
| Public donations | 11,062 | - | 11,062 | 8,691 |
| Donations from trustees | - | - | - | |
| Other income (inc sale of assets) | 2,952 | - | 2,952 | 2,038 |
| Totals | 107,376 | 8,739 | 116,115 | 58,614 |
4. Charitable activities
| 4. Charitable activities | ||||
|---|---|---|---|---|
| Unrestricted funds 2025 |
Restricted funds 2025 |
Total 2025 | Total 2024 | |
| £ | £ | £ | £ | |
| Shipping and containers | 10,925 | 3,000 | 13,925 | 12,754 |
| Transport and fuel | 7,613 | - | 7,613 | 2,869 |
| Clothes purchased to supplement donated items |
3,226 | - | 3,226 | 923 |
| Shop supplies and stationery | 963 | - | 963 | 574 |
| Hygiene products purchased to supplement donated items |
7,216 | 3,107 | 10,323 | 1,205 |
| Individual case support (per grants policy) |
582 | - | 582 | 5,862 |
| Support for refugees from southern Lebanon (Emergency Support) |
5,895 | 2,632 | 8,527 | - |
| Fuel to Distribute | 2,161 | - | 2,161 | - |
| School Supplies to Distribute | 719 | - | 719 | - |
| Kitchen Project | 8,334 | - | 8,334 | - |
| Totals | 47,634 | 8,739 | 56,373 | 24,187 |
5. Restricted income and expenditure
The accounts include restricted income of £3,106.96 was provided by Pads4Refugees, restricted to the purchase of hygiene items. £3,000 was from The Pachamama Project CIO to pay for shipping and container costs. £2,631.58 was from an individual donor (J) for aid distributions.
6. Support costs
| Unrestricted funds 2025 |
Restricted funds 2025 |
Total 2025 | Total 2024 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Subscriptions | 305 | - | 305 | 547 |
| Communication, printing and postage | 1,155 | - | 1,155 | 424 |
| Miscellaneous | 1,525 | - | 1,525 | 457 |
| Transaction and currency fees | 339 | - | 339 | 1,959 |
| Rent and utilities | 7,813 | - | 7,813 | 6,483 |
| Foreign exchange gains/losses | - | - | - | 1,764 |
| Stipends and employee costs | 34,635 | - | 34,635 | 28,631 |
| Totals | 45,772 | - | 45,772 | 40,265 |
7. Debtors
| 7. Debtors | ||
|---|---|---|
| 2025 | 2024 | |
| £ | £ | |
| Accrued grant income | - | 2,240 |
| Totals | - | 2,240 |
8. Creditors
| 8. Creditors | ||
|---|---|---|
| 2025 | 2024 | |
| £ | £ | |
| Deferred grant income | 15,000 | - |
| Loans | 4,686 | 10,736 |
| Totals | 19,686 | 10,736 |
9. Related party transactions
All loans with related parties have been repaid and/or written off during the year ended 31 May 2025.
10. Trustees
None of the trustees (or any persons connected with them) received any remuneration nor were reimbursed any expenses during the period.
11. Employees
We have three volunteers who help at The Free Shop. To enable them to volunteer and interact with members of the public and vulnerable individuals they undergo DBS checks and training. In recognition they are provided with a stipend.