## **Annual Report & Accounts**
**Trustees’ Annual Report and Financial Statements 2022 Scripture Gift Mission (Incorporated)**
**Company number 145932 Charity number 219055**
Scripture Gift Mission (Incorporated)
**Page**
## **Contents**
Report of the Trustees incorporating the strategic report for the year ended 31 December 2022 ...... 3 Reference and administrative details of the charity, its trustees & advisors ......................................... 3 Aims, objectives & activities ................................................................................................................... 4 Review of achievements and performance during the year .................................................................. 5 Financial review .................................................................................................................................... 18 Plans for future periods ........................................................................................................................ 19 Structure, governance & management ................................................................................................ 20 Trustees’ responsibilities in relation to the financial statements......................................................... 22 Disclosure .............................................................................................................................................. 23 Independent auditor’s report to the members of Scripture Gift Mission (Incorporated) ................... 24 Statement of financial activities ........................................................................................................... 27 Balance sheet ........................................................................................................................................ 28 Statement of cash flows ....................................................................................................................... 29 Notes to the financial statements ........................................................................................................ 30
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## **REPORT OF THE TRUSTEES INCORPORATING THE STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
The trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 31 December 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011; the Companies Act 2006; the 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) (effective 1 January 2019).
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES & ADVISORS**
|Charity Number:|219055|
|---|---|
|Company Number:|145932|
|Operating Name:|Lifewords|
|Registered Office:|1A The Chandlery|
||50 Westminster Bridge Road|
||LONDON|
||SE1 7QY|
|Independent Auditor:|Mazars LLP|
||2ndFloor, 6 Sutton Plaza|
||Sutton Court Road|
||Sutton|
||SM1 4FS|
|Principal Banker:|Royal Bank of Scotland plc|
||Drummond House, 1 Redheughs Avenue|
||EDINBURGH|
||EH12 9RH|
|Investment Manager|BNY Mellon Fund Managers Ltd|
||Client Service Centre, PO Box 366|
||DARLINGTON|
||DL1 9RF|
## **Key management personnel: Trustees and Directors**
The Trustees of the charity are the Directors for the purposes of company law and throughout this report are referred to as “the Board” or “the Trustees”. Board members serving during the year were as follows:
Directors and Trustees Robin Baker Liz Heyburn (Chair) Mark Hurley Jo Jowett Bev Thomas Danielle Welch (from 6 December 2022) Company Secretary Eduardo Juan Harris
**Key management personnel: Executive Team** Creative & Communications Director Steve Bassett Finance & Operations Director Eduardo Juan Harris Global Bible Resources Director Jarek Jankowski
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## **AIMS, OBJECTIVES & ACTIVITIES**
The Charity is an inter-denominational Christian organisation, formed to take the Christian gospel worldwide by the creation and predominantly free distribution of Scripture products and programmes. This is achieved through an International and UK Office in London, which also has close links with legally separate organisations in Australia, Brazil, Canada, India, Indonesia, Kenya, and USA. Our Global Bible Resources programme is managed and run from Poland. Orders from USA are processed from the UK or Poland.
## **AIMS**
Working with partners around the world and with the church at large, the Charity works so that everyone, everywhere may have the opportunity to experience the Bible’s life words as good news for their lives, and for the world. We do this by creating opportunities for life words to be shared and lived out. All our programmes, resources, literature, and digital tools invite people to explore the Bible for themselves – and to share life words with others. We build bridges across languages and cultures, creating new ways into the Bible’s good news for all.
Our aims are achieved by:
- Creation and free (or for donation) distribution of Bible literature, providing ways into the Bible in many languages and for different audiences and cultures.
- Partnerships with a wide range of organisations to provide specialist Bible-based programmes, training, and resources for communities-at-risk.
- Provision of digital tools and resources to engage younger generations with the Bible’s life words on a regular/daily basis, as a way of life and practice.
- Ongoing research and development of new resources and programmes to engage specific communities and cultures with the Christian scriptures, for positive change.
- Engagement with individuals, churches, trusts, and other organisations – providing ways for people to support the work of the Charity around the world.
The Trustees confirm that they have complied with their duty per the Charities Act 2011 to have due regard to the Charity Commission's general guidance on Public Benefit.
## **STRATEGIC OBJECTIVES FOR 2022**
Alongside widespread distribution of resources, and provision of programmes with partners, in 2022 our strategic objectives were:
## **Bible Resources**
In line with our Scripture Gift Mission heritage of a core range of Bible literature in multiple languages that equips hundreds of thousands of Christians all over the world in their witness, evangelism, discipleship, and proclamation of the gospel, we will continue to deliver Bible resources in relevant languages, while adding to this range and investing in digital delivery to augment print. We will continue our project to refresh our existing library and extend the range of languages year-on-year, and achieve our initial target of at least two core titles (print and digital versions) in fifty languages by 2023.
## **Digital**
We will continue to apply learning of the migration to online that was experienced through the pandemic. Both in ensuring accessibility of existing resources and in working to create new, authentic digital engagement with Scripture. We will invest in digital development and invite supporters to partner in a new initiative to produce new “digital-first” engagement and innovation with Scripture with youth and teen content creators.
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## **Marketing/communications**
We will respond to capacity and mission needs by assessing and making any necessary changes/adjustments. We will increase ministry profile and impact of resources – working to extend profile of/through church-focused and culture-facing resources/programmes/projects/initiatives.
## **Church engagement**
We will continue networking as churches and opportunities open up. We will keep working to increase presence, profile and positioning within UK churches across marketing, communications, promotions, events and church partnerships.
## **Bible Engagement projects**
We will refine our larger scale projects and programmes (Bible resources, Pavement Project and NINE BEATS), ensuring the most fit-for-purpose shape, and seek to identify partners, both practical and financial. Pavement Project will continue to develop the learning from the experience of 2020/21 to embed app and online training and counselling in addition to renewed in-person counselling when possible/safe. The “train the trainers” model continues, with growth in other territories anticipated. NINE BEATS will similarly apply online learning and resume live events to further connect with churches and the culture at large.
## **Funding**
We will continue to seek new funding sources, nurture existing trusts and individual donors, and approach new funders for the ministry across traditional, core and new digital and entrepreneurial donors. Again, we will prioritise the development of UK networks for impact and support, and work with other Lifewords organisations outside the UK to better engage more people in this work of sharing the Bible around the world.
## **STRATEGIC REPORT**
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE DURING THE YEAR**
## **Providing ways into the Bible**
After the tough times of recent years, we caught our breath in 2022. Still, we faced challenges and again had to be agile in our response to finances, world events and the needs of Christians. When Russia invaded Ukraine at the beginning of the year, our team in Poland rallied to print and distribute Bible resources for churches and organisations in Poland and beyond who welcomed Ukrainian refugees. We had a great response to our appeal to make this happen. We received close to £50,000 which enabled us to produce many resources across a range of languages. It has also been a privilege to resource organisations, like Hope Lebedyn, who are based in Ukraine, and who work tirelessly to provide shelter, food, and hope to thousands as the conflict continues.
## **WAYS INTO THE BIBLE – core audiences**
## **LITERATURE**
2022 saw a high distribution of printed resources – the global ordering website saw a 68% increase on 2021. The high distribution resulted from a huge demand for resources in Ukrainian after the outbreak of the war and from our quick reaction to it. An additional factor supporting the growing distribution was the post-Covid reopening of many churches and a new enthusiasm for sharing the gospel seen in many communities around the world. Our growing offer of our materials was also attracting more orders and increasing the number of languages distributed.
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## **Global ordering website**
- **2,400 orders** (precisely: 2,443) processed from **54 countries** .
- **384,000 items** (precisely: 384,103) distributed in **52 languages** .
- Compared to 2021, the above statistics look as follows: orders 5% up, countries 10% down, items sent 68% up, languages 8% up.
## **Ukraine**
When war broke out in Ukraine at the beginning of 2022, the demand for Ukrainian resources suddenly became enormous – we started getting a lot of orders and our stock reserves started to disappear quickly. We reacted immediately by revising our publishing priorities and preparing to print a new version of _Finding Hope_ in Ukrainian (originally not planned for this year). Together with three other titles (also unplanned for this year), it quickly went to print. Within three weeks, we had processed over 100 orders from all parts of Poland and the high demand continued as we were one of the few sources of Ukrainian Bible resources in that part of Europe, and the only one to offer resource that was specially created as a pastoral tool for crisis situations. Because of the war, there was no single order from Ukraine, but we reached those in Ukraine via the _Finding Hope_ animation. Our Facebook campaign, which started immediately after the Russian invasion in February, was played 152,000 times in its first month.
## **New evangelistic title**
We were also pleased to introduce a new evangelistic booklet resource, _Follow Me_ . Through a series of Scripture episodes, people from different life experiences, are challenged by, or are drawn into Jesus’ invitation to “follow me” – an invitation to eternal life and a life of active discipleship.
## **50 languages**
2022 was the second year of the 50 languages project. During the year we published 29 new global titles, 10 revisions, five reprints and 27 animations (increasing our digital offer to 76 animations in 38 languages).[1] Just like in 2021, some of the new resources were the first Lifewords products published in a particular language this century.
The languages published in 2022 included:
- Printed resources:
- New: Albanian, Bengali, Croatian, Danish, Hungarian, Malayalam, Norwegian, Punjabi Indian, Portuguese European, Russian, Serbian, Slovak, Swedish, Tagalog, Thai, Ukrainian
- Revisions: Bengali, English, Polish, Portuguese Brazilian, Portuguese European, Spanish, Swahili Union, Ukrainian
- Reprints: Polish, Portuguese European, Spanish, Ukrainian
- Digital resources (all new): Albanian, Arabic, Dari, Danish. Gujarati, Hungarian, Kannada, Norwegian, Persian, Portuguese European, Serbian, Slovak, Sundanese, Swedish, Tagalog, Thai, Urdu
One of our newly offered languages is Portuguese European – demand for these materials has exceeded our expectations. We printed a small volume to test the waters, and it turned out that not even a month had passed and we had to plan reprinting, despite not having yet managed to promote these new resources. In August, Portugal was the third top country in terms of the highest distribution.
## **New resources in minority languages**
Lifewords has had a very long and good partnership with SIL. In recent years we have been supporting SIL and other organisations in preparing reprints or print runs of new materials for other ethnic minorities. In
> 1 These figures for new resources include new translations of existing titles – ie. “29 new global titles” will include new languages for existing resources as well as new titles. Similarly, “76 animations in 38 languages” means that there are two animations that have been translated and typeset for 38 languages.
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some cases, we help them prepare/typeset/re-create publications for local production, in others we simply authorise the partner organisations to do the reprints. In April 2022, we received a report on the publication of “Follow” booklet in Kaku – the language of Kaku people in Cameroon. Also in April, we authorised SIL to publish “Jesus is the Saviour of the World” in Kanuri, Fulfulde, Waci and Mia. We partnered with a local missionary from Niger to produce “Power to Save” series in Hausa Ajami. We typeset the booklets and provided the partner with print-ready files.
## **DIGITAL (GLOBAL)**
During the year we were actively promoting two animations ( _Finding Hope_ and _An Invitation_ ) in 22 languages on Facebook (44 animations in total). In parallel with Facebook, the same two animations were also available on YouTube in 36 languages (72 animations in total). However, YouTube only accounted for 2,000 plays.
- **8.8 million unique users** were reached by posts that included the animations.
- Animations were played **2.9 million times** (44% more than in 2021) resulting in **1.1 million users’ reactions** .
- **Ukrainian** was the most popular language, representing 37% of the year’s digital traffic.
- Apart from Ukrainian materials, the top ten languages with highest reach were: **Kannada, Urdu, Dari, Portuguese Brazilian, Arabic, Gujarati, Portuguese European, Persian, Hausa, and Polish** .
While our printed resources in Ukrainian were reaching war refugees in several countries, the digital materials were bringing hope also to those who stayed in Ukraine. The virtual products – unstoppable by borders or war zones – turned out to be a great tool for this difficult time and worked extremely well.
Apart from the social media platforms, the digital resources are offered on our global website. During the year people from 29 countries downloaded 771 digital products in 30 languages. An animation, once downloaded from our website, is often used several times, reaching many people. Some churches use the animations for their services (or online presence), some individuals share them via their networks of contacts, in which case the resources play a similar role to printed materials used in outreach.
## **Life Changing Words (LCW)**
The increased level of app installations, observed in 2021, continued in 2022.
- **17,000 new users** for the LCW app (84,000 total number of all-time app installs, with Android remaining the fastest growing platform).
- **13,000 shares** from the app and **67,000 responses/votes** from both the app and LCW emails. Text message has remained the most popular channel for sharing the verses, followed by Facebook.
- At the end of the year we had over **24,000 active email subscribers** from **202 countries** , receiving the LCW verses on a daily basis. This is a 5% decline compared with December 2021 – a smaller decrease than anticipated in the face of the growing popularity of the app.
- LCW widget (another form of using the LCW) was displayed in 11 languages on various websites **475,000 times** during 2022.
We conducted a user survey of those who receive the LCW email. The results showed that many people remain attached to the email service and appreciate its simplicity.
At the end of 2022, we were completing final tests of the new app. Its staged launch is planned for early 2023, which is a double anniversary year for the LCW project (20 years of the email service, 10 years of the app). The new version of the app offers a totally new look and engine, coded from scratch to ensure compatibility with today’s technological environment, and more features including sharing the verses with attractive graphic backgrounds, making the experience more engaging and the app more useful for social media.
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## **UK**
In the UK, we continued working with churches and organisations to resource them in their specific ministries, and added new partnerships to our database. We also connected with partners and supporters at exhibitions and events, and we published new resources for Easter and Christmas.
- **353,000** items distributed in the UK.
## **Church engagement/networking**
We have continued to outwork our church engagement strategy through a varied approach of face-toface meetings, phone calls, events and exhibitions, emails, and wider digital engagement. We also began to lay the foundations for the way we engage with churches and organisations, and the need to make connections with groups and organisations that reach into multiple churches and church leaders. The climate of Covid-recovery and the cost-of-living crisis meant that some of our engagement had to be adapted.
We had 25 meetings with a range of churches, networks and organisations. These are active and live contacts where we are exploring ongoing connection and partnership. We have also continued to make strong connections through attending events/exhibitions and via a range of communications (in person and online) with churches, networks and organisations.
## **Prison ministry**
Prison chaplains are some of our most engaged audiences. They share how they are grateful for the way the resources are presented and the fact that they are freely available at the point of need. This year, two organisations who work directly with prison chaplains across the country have used our resources in prisons – Junction 42 and Sixty-One. Junction 42 used _Encounters with Jesus_ with the 20,000 prisoners they come in contact with through chaplains. Sixty-One have taken 900 copies of OUTSIDE/IN to give to inmates across three prisons in Bristol. The groundwork we have done in developing partnerships with organisations like these will inform our work with prison chaplains in 2023 and both of these organisations will be invaluable partners and contacts in that sector.
The Message Trust in Manchester used 7,500 copies of OUTSIDE/IN as part of a Christmas gift pack for prisoners across 10 prisons. We are in conversation about ongoing and future partnership, especially in connection with our plans for 2023 prison ministry work. The Message Trust donated £1,500 for the resources.
_“Thank you so much for your faithful ministry that provides us with such wonderful resources for our residents. I can't tell you how much they are appreciated. Thank you and may God bless your ministry.”_ Rev Gail Miller, chaplaincy team, HMP Preston
## **2:19 Teach to Reach**
We were invited to 2:19 Teach to Reach’s national networking conference where new connections with churches and organisations emerged. 2:19 Teach to Reach equips and resources churches, helping them welcome and integrate speakers of other languages into their communities. One of the ways they do this is through establishing conversation classes that help improve English language skills, as well as building connections and sharing the gospel. The classes use Lifewords resources as tools to spark conversations and explore new vocabulary.
_“I use_ One Friday _with higher-level learners because of the beautiful use of language, straight from the Bible, but also because each page carries a theme that lends itself to further exploration – torture, powerlessness, forgiveness.”_ Maura, using our resources in her work with those learning English
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## **Trafalgar Road Baptist Church, Horsham**
Trafalgar Road based their Christmas services and outreach around OUTSIDE/IN. They used the content over a 4-week series, in their carols by candlelight service, when out carol singing, and also in gift packs to the community.
_“We as a church really like the resources Lifewords produce._ OUTSIDE/IN _and its message of welcome and invitation was so well suited to how we wanted to create a welcome into the Christmas story for our community.”_ John White, pastor
## **Community-facing churches**
We resourced Churches Together in Lymington & Pennington, Glendale, and Heaton for communityfacing events during the summer months. These are ongoing and growing partnerships with churches who are working to benefit and contribute to their communities. They are partnerships built on a strong foundation of mutual understanding of both ministries, and they have potential for story gathering and increased income. This year has been the first connection point, and we intend to build on this.
## **Exhibitions**
We attended the CRE National event in October 2022 and had lots of good conversations and connections with churches, organisations, and individuals. Some churches and individuals have followed up and been added to the welcome process.
We also attended Big Church Day Out – the first time since the outbreak of Covid – running a youth-facing exhibition stand and campaign. The focus this year was on the “best of VerseFirst”. We used the opportunity to do some market research among the young people who were attending the festival, asking them what they liked and how they engage with the Bible. The stand was interactive and stood out from others in the exhibition space because we seemed to be the only one there specifically for young people.
## **Easter**
We published a new card for Easter this year: _Finished/Risen_ . Also, _The Easter Journey_ booklet that came out in 2021 was released closer to Easter than we would usually do a new resource – due to uncertainty around the pandemic – so 2022 was the first year for some groups to use the resource. On social media, VerseFirst ran the campaign: Do You See This Woman? – a series of images and accompanying text.
## **Christmas**
We published a new Christmas booklet: _A Story for the Whole World_ whose design uses different cultural patterns to highlight how the common human yearning for meaning, hope, and love are met in Jesus’ coming. Over 30,000 copies were sent out, and many churches used it as part of their Christmas services and outreach.
## **UK digital**
We ran a competition asking for young people to present the Bible digitally in a way that was relevant to them. Rosie Brighton’s animation on the book of Job was chosen as the winner. The competition didn’t have as wide a reach as we would have liked, so work needs to be done on extending our reach and expanding our audience.
## _**Other resources**_
## **WAYS INTO THE BIBLE – unique mission opportunities**
## **PAVEMENT PROJECT**
The online counselling that started in 2020 as an emergency alternative during the pandemic was released in August 2022 for indefinite use. The new Pavement Project app continued to be tested and rolled out,
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offering workers greater flexibility in how and where they connect with vulnerable young people and their families.
- **4,088 counselling sessions** in 2022 (making a total of 93,248 counselling sessions).
- **30 training sessions** : 13 online, 17 face-to-face; 12 countries; 20 trainers; 91 partner organisations; 144 certified workers; 9 languages.
- **16 trainer meetings** : 11 online in Brazil, Kenya, Zimbabwe, Tanzania, Uganda; 5 face-to-face in Zimbabwe, Kenya. Tanzania.
- **Church engagement:** 10 in-person meetings with partners and workers; 11 online meetings with partners.
- **Online meetings to present Lifewords Pavement Project to potential partners:** 54 Compassion partner leaders from northeast Brazil; 9 church leaders who work with “quilombolas”, riverside, “sertaneja” and indigenous children.
_Aura, from Ecuador is a teenager who was very closed in her emotions, hardly expressing herself. During counselling with the Pavement Project, she opened her heart, saying how she felt guilty about her parents' separation – she believed she was responsible for her father leaving home. However, after being counselled, her self-esteem changed, understanding that God was not holding her responsible for that situation. The relationship between mother and daughter grew and they grew closer._
_“Empowering people to use the green bag represented a prayer answer for me. Venezuela is going through a very critical situation that prevents children from developing well, and Pavement Project has been an outstretched hand of help."_ Ruthmari, Venezuela
## **Green bag panel and new app**
In October, first versions of the green bag panel and app were launched. The app has been developed by Holdapp, an agency in Poland; the panel by Piotr and Adam, volunteers from Poland. Testing was conducted with the help of trained workers. We have 169 workers and 117 partner organisations with access to the new app in 15 languages. We shared a launch video with our partners and PP workers: https://www.youtube.com/watch?v=xT_J3u3lNsY.
## **Online counselling**
A study into online counselling was conducted with 104 children from 6 countries (Bolivia, Brazil, Chile, Ecuador, El Salvador and Mexico) counselled by 33 PP workers. 96% of the children had their self-worth increased, as signs of the start of healing and a journey with God. The online workers’ training resources were finalised and made available to all Portuguese and Spanish-speaking trainers. Translations into Indonesian and English are in process.
## **New website**
The Brazilian team developed a new Lifewords Pavement Project website which is available in three languages: Portuguese, Spanish and English.
## **Child protection policy**
We conducted three online “A safe place” workshops in Brazil with 55 participants from 12 organisations to raise awareness of the need to have a written protection policy, to be followed by all involved with children. Five organisations have already produced their own policy and are implementing it.
## **BRAZIL**
Brazil continued to work with partners to reach young people and their families through Pavement Project. Choose Life built on a successful pilot period with more organisations taking the resource and using it to educate, mentor, and support young people.
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## **Pavement Project**
- **14 churches or projects** who serve riverside dwellers, “sertanejos”, “quilombolas”, and adolescents in conflict with the law were equipped with Pavement Project through the **training of 21 workers.**
Pavement Project reached children considered “invisible” in Brazil (due to the violation of several of their rights), including groups of riverside dwellers, “sertanejos” (living in semi-arid areas), “quilombolas” (descended from African slaves) and adolescents in conflict with the law.
_“The reality of poverty among children in the semi-arid is cruel. But the work of our organisation, with Pavement Project, has been to help them recognise their emotions in the face of the suffering they experience. I have noticed a transformation in the lives of children counselled with the green bag, they are happier, they feel precious, and they are enjoying the new opportunities that our organisation offers. The reality of children is changing.”_ Camila Albuquerque, whose organisation serves children in the semi-arid area of Pernambuco, Brazil
## **Choose Life**
- At least **490 children reached** .
The children reflected on everyday topics such as: resolving conflicts, prioritising others, cultivating healthy friendships, deciding between right and wrong, as well as wanting to know more about God. These experiences and good choices are being encouraged through Choose Life meetings.
_“For the Project C3 teachers it has been a unique experience to use Choose Life with our children. The children were very involved in the modules, they were very focused and participative. Following the guidelines in the manual, we had some internal and external dynamics, always encouraging our children to reflect on everyday situations in which a simple attitude can change a person's entire day. We thank Lifewords for providing us with this high quality, productive content and for partnering with us.”_ Hélito Cout, the director of the C3 Project in Teresópolis, Brazil
## **AUSTRALIA**
Chaplains, churches and ministries are back to pre-COVID activity with orders for our pastoral range of resources increasing, mostly from chaplains in hospitals, care facilities, aged services and schools. The WW1 Gospels had renewed interest, and we reconnected with many youth ministries via _Little Book of Help_ and _Little Book of Chaos_ .
A number of national gatherings that have not been possible over the past two years are re-emerging, including The Australian forum of Bible Agencies, The Surrender/Justice Conference and the Converge Network for youth outreach and research.
## **Work with chaplains and churches**
Prison chaplains are ordering resources and sending prayer points to us; hospital chaplains are ordering pastoral literature; schools are ordering Little Books and WW1 gospels. Lifewords continued to be a resource to chaplains, ministries, and churches. Chaplain John is a retired truck driver whose roadside “truck chapel” is often stationed at Mittagong Service Centre. During Covid, John was not allowed to have his chapel open, but since reopening there has been great opportunity for sharing _Daily Strength_ , _The Way to Life_ , and other resources.
Examples of how our resources integrate into existing church outreach include a church women’s craft group that made up dozens of care packages for other women in flood areas in Northern NSW. Each box
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included a _Daily Strength_ booklet. One woman had been living in a caravan for the past six months, her home uninhabitable from flood damage. She said, “This care pack made us feel seen and valued. The little books spoke to us, and although I’m not religious, I found the words comforting and helpful”. This led to further conversations and support.
## **WW1 Gospels**
ANZAC day and remembrance events continue to be a time for WW1 gospels to be used.
_“The WW1 Gospels have been a staple part of our ministry for years now. It is the only Bible resource that many take on tour, and it is the first offer I make to those I’m working with. While spirituality may be in decline nationally, it is a significant part of the armed services and I am finding that many are turning to the Lord for comfort, healing, understanding, and purpose.”_ Padre Wade, Armed Service Chaplain
_“Thank you so much for producing such a thoughtful resource. These are so poignant and fantastic”._ Elise, Army Cadet
## **Working with indigenous communities**
Rob Reeve, Chair of Lifewords Australia, has been working with David Glasgow (long-term indigenous Pastor and translator) on the creation of resources for indigenous communities. This project had stalled through Covid, but we are meeting again and pushing forward. This project is set to feature and develop more in 2023.
## **Ninefold Path**
A good amount of effort has been put into learning labs facilitated by Mark Scandrette, equipping young leaders with extra skills in how to take people through a meaningful engagement with Scripture.
_“...one small group ... had 20 people attend to work through The Way of Trust and taking on Worry / Anxiety. People opened up like they’ve never seen before. The small group leader has been leading for nine years and said this was by far one of the most impactful weeks they’ve experienced.”_ Daniel, participant.
With nearly 200 different people participating in learning labs and events in Australia over the past two years, such impact underlines the fruitfulness of this journey in and through the beatitudes – and our ability to resource people. Dozens of churches are now involved and Australia Director Dan Hardie took a retreat with a group of pastors where he shared the resources with them. Each lead churches of very different styles and sizes, and most have indicated that they are planning to take their churches through the series. Churches were provided with welcome packs so they could connect with the broader Lifewords work.
_“The beatitudes are such a great theme for our church to rally around. I’ve been looking for ways to unify and boost our connectedness after two difficult years. ... The group guide and individual notebooks will really help us go deep and do the practices together.”_ Philip, COC pastor, Sydney
## **AFRICA (KENYA)**
The team in Kenya continued engaging people with the Bible through booklets, Pavement Project, and Choose Life. They also developed relationships with partners across Africa.
## **Bible resources and partnerships**
- **52,981 copies of printed literature distributed** in English, Swahili and local languages in **13 African countries** : Kenya, Uganda, Tanzania, Zambia, Zimbabwe, Rwanda, Burundi, Nigeria, Malawi, Sierra Leone, South Sudan, DRC and Ethiopia.
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- **52 meetings for partnerships and distribution** : 40 online and 12 in-person.
- **52 new partnerships** for programmes and Bible resources.
- **Partnership meetings (online and face-to-face) with partners from 14 African countries** for partnership for programmes and Bible resources: (Kenya, Uganda, Tanzania, Burundi, Rwanda, South Sudan, Zimbabwe, Zambia, Sierra Leone, Nigeria, Malawi, DRC, Ethiopia, and South Africa.)
_“The mission to Nakuru and Nyahururu Counties was such a big success! Thanks to Lifewords Bible Resources from Kenya office which enabled us to reach out to over 500 pastors. The two host bishops expressed a desire to have more of_ Little Book of Help _in Kikuyu as it spoke to the hearts of their leaders and congregants. As we come towards the end of 2022, our local church has reached over 15,000 people in Kenya, Ethiopia, Rwanda and Zanzibar using the inspiring and enriching materials of Lifewords. Allow me to convey our heartfelt gratitude to all who have sacrificially given so that people in Kenya and beyond are encouraged and inspired by the living Word of God. God bless and again thanks.”_ Rev. Kennedy Salano
## **Pavement Project**
- **21 meetings with partners** : 10 in-person, 11 online.
- **10 hybrid meetings for partnership interactions and feedback** , this involved PP partners from Kenya, Uganda, Tanzania and Zimbabwe.
- **1 worker training** , involving 12 workers certified, 6 partnerships (3 of which were new).
- **14 meetings with trainers:** 9 online with trainers from Kenya, Uganda, Tanzania and Zimbabwe; 5 in-person with trainers from Kenya, Zimbabwe and Tanzania.
_A 15-year-old boy in Tanzania who had been rejected by his parents felt very sad and worthless. He compared himself to a sad young man who has given up because he cries all the time. He picked the Light card when given an opportunity to choose a pocket card because he now wanted God to be the light in his life so that he doesn’t again get lost. And at the end of the session, he compared himself to a diamond because he could see himself as very worthy._
## **Choose Life**
- **6 online mentorship meetings** for 2 Choose Life trainers.
- **176 Sunday school teachers from 62 churches** were equipped to implement the Choose Life programme in Kenya. The trainings were done in 4 locations: Mombasa, Nairobi, Bungoma and Malaba by 2 trainers: Jane and Daniel.
- **5,000 copies** of the children booklets printed.
- **2,000 children** were introduced to the first module, Choose Others.
_Sabine Museve is one of the teachers trained in Choose Life from Kimilili, Bungoma, Kenya in 2008. She has been consistently using the Choose Life programme through her organisation, Christian Mission International where they have a childcare programme, reaching out to orphans and supporting them in their education, as well as their other physical, psychological and spiritual needs. She says the Choose Life programme has been a viable tool in equipping the young people with moral values, and therefore enabling them to make the right choices in life. During the last school holidays, she reached out to us for more children booklets and later engaged them using the Choose Right module during a holiday camp. She was excited to see the children open up, share some of the wrong choices they have made as they later at the end committed to change, to Choose Right._
## *******
_Three years ago, we shared a story of our work with schools and churches in West Pokot, a region where female genital mutilation (FGM) cultural practice is rampant. Through the Choose Life programme, the young girls are being helped to change their attitudes and make different choices._
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_School and Sunday school teachers began to use the curriculum as a mentorship tool to help the girls caught up in the dilemmas with FGM practices._
_During our follow up with Susan, the chairperson of the women’s network in Kacheliba, she reported having rescued 60 girls who were facing the risk of FGM in their homes. The network is housing them in their centres as they go to school. She said many of them no longer think it is something to be proud of and are making more informed choices concerning the rites of passage options in their culture. The women from the network are thankful to God for the opportunities to introduce the Choose Life programme to their community. Pray that the girls and families affected will experience healing from their trauma as they engage them through the Bible._
## **INDONESIA**
Over the year the team have continued to take mobile missions to several places, conducting The Visible Story (TVS) and flipcard training, booklet distribution, Lifewords Kids Ministry, retreats, seminars, and conferences.
- Mobile missions to **South East Timor** (Naibonat, Kupang, SoE (Timor Island)); **Ba’a** (Rote Island); **Kalabahi** (Alor Island); **North Sulawesi** (Manado, Tomohon, Tondano (Sulawesi Island)); **Central Java** (Banyumas, Purwokerto, Cilacap, Solo, Klaten (Java Island)); **East Java** (Malang, Tulungagung, (Java Island)); **West Java** (Bogor, Bandung, Bekasi. (Java Island)); **West Kalimantan** (Pontinak, Landak, Sanggau, Ketapang); **Banten** (Tangerang, Baduy – Serang (Java Island)); **Jogyakarta** (Java Island).
- **650** pastors, church leaders, seminary students, Sunday school teachers joined TVS and flipcard training.
- **4,500 children** and **2,750 adults** reached.
- **54 locations** for Lifewords Kids Ministry.
## **Mobile missions**
Throughout the year, the team travelled across Indonesia to connect with and train different communities in how to use TVS, flipcards, and other Lifewords resources, and also how to train others to use the material. They have trained pastors, church leaders, Sunday school teachers and Bible college students, some from very rural communities. Sometimes the communities they are visiting are facing poverty, especially in the aftermath of the pandemic, so the team often give groceries and food parcels to those in need.
“ _The first time I received TVS I was very happy because this is the material that I have been looking for. Very simple, colourful, easy to use, and it helps all children to focus and listen to the Bible story. So this why I use TVS for every moment, for Sunday school, for birthday parties, and to reach our children.”_ Jimmy, from Manado, North Sulawesi, one of the Sunday school teachers who joined the TVS training.
## **Lifewords Kids Ministry**
Lifewords Kids Ministry continues to engage groups of children all over Indonesia with the Bible using games, songs, and Bible stories. The aim is to talk to the children about Jesus and encourage them to respond, while also investing in them for the future.
Another aspect to Lifewords Kids Ministry is responding to local needs. There are three people from Pelita Dunia Seminary’s Alumni who serve in Naibonat, which is home to refugees from East Timor. Lifewords Kids Ministry opened Rainbow Kindergarten to reach some of the many children who had not had any formal education due to lack of government support for refugees from East Timor. Many children have had opportunity to study in this school and now most of them can read and write. There are plans to train all teachers, pastors, and church leaders so that they can help children to recover from their trauma, and also for their parents as they deal with the aftermath of the conflict that they have faced for many years.
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_“It was wonderful to see all the children change. Two years ago almost every child did not go to school, and their parent also did not ask their children to go to school, because for many of them education is not important. I have visited them every day and encouraged them to go to school, and praise the Lord now almost all children in Naibonat go to school.”_
## **INDIA**
Bible resources continued to be widely used in India. Pavement Project continued to be a large part of Lifewords India’s ministry with training and translation work continuing in 2022. New potential partnerships were explored via three online gatherings.
## **Bible resources**
- India office helped in the translation and review of Bible Resources in **6 languages.**
- **More than 1,200** copies of _Can You Believe It_ and _Finished/Risen_ were distributed after a small print run in March.
- **6,000** copies of Christmas resources distributed in December. Resources were used by individuals and churches for Christmas programmes and outreach during the Christmas season.
Christian Medical College in Tamil Nadu has been using Lifewords resources to share the good news with their patients coming from all over India. The ministry team from the hospital regularly keep in touch with and update the resources. Students from two Bible Colleges in Andhra Pradesh are using Lifewords Bible resources for their outreach as they share the gospel and establish churches in 10 villages. NLAG Church in Chennai invited 100 non-Christian students from IIT, Chennai on 21 May and contacted Lifewords for resources. Later Vijay, one of the organisers, shared that around 80 non-believer students came for the programme. They heard the gospel for the first time and Lifewords resources ( _You Matter, Finding Hope_ and _Little Book of Character_ ) were shared with them. One Church, Pune, used English and Hindi _You Matter_ to minister to techies in Pune. This church focuses on reaching out to individuals working in corporate companies. Annette from One Church says, “ _You Matter_ is one of the best booklets that we have used to help youth.” Evangelists in Maharashtra, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal also use our resources regularly in sharing the good news.
## **Pavement Project**
- **5 training workshops** – 3 in Kerala, 1 in Andhra Pradesh and 1 in Gujarat, using 3 languages: Malayalam, Telugu, Gujarati.
- **39 workers trained** from the states of Kerala, Andhra Pradesh, Rajasthan, Gujarat and Maharashtra.
- **1 trainer certified** to train others – Biju Kannan can train in 2 languages: English and Malayalam.
- **Translation** of workers resources in Telugu and Gujarati in process.
10 couples who are children’s home wardens from Gujarat and Maharashtra were trained in November 2022. Pavement Project India will reach around 1,000 children with the green bag through this group. Most of the children are from tribal communities from rural areas of Gujarat.
Two Pavement Project workers from Sri Lanka that we trained in 2017 give regular updates about their activities and use of the green bag. The workers themselves are from economically difficult backgrounds and they have been tirelessly working among the community conducting activities for children. Through the children they reach out to the families. In December, we raised funds to give gifts for 150 children and for programme expenses. The children and the couple were greatly blessed and have expressed their special gratitude and thanks to Lifewords.
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_Alice* is a 14-year-old girl. Her parents left her in a children’s home a few years ago and never returned. Alice felt very sad and compared herself to a kitten, who doesn’t have anyone to take care of her and who wanders around and has to live at the mercy of others. As she heard the Bible stories from the green bag, she said that she felt happy that Jesus cares for her. She chose the ‘Protecting Hands’ pocket card and said, “God will protect me because he cares for me”. At the end she compared herself to a bird, which is the pet of a loving home. The worker shared that Alice left the room happier knowing that Jesus loves her and cares for her. * Name has been changed._
## **WAYS INTO THE BIBLE – Reaching and engaging new generations**
## **VERSEFIRST**
In 2022, VerseFirst saw increased development in how it reaches new audiences on social media, with a number of different strategies, including increased advertising of posts which meant it reached beyond its established followers; experimenting with video content to keep up with the algorithm; market research among teenagers at Big Church Day Out; a design competition to encourage young people in their engagement and presentation of the Bible.
- **614,794 accounts reached** by our Instagram posts, an increase of 84% on the previous year.
- **7,902** profile views, an increase of 44% from 2021.
- **336 new followers** .
- **Top “liked” VerseFirst post:** “Don’t get side tracked; keep your feet from following evil” (Proverbs). Liked by 1,068 people, 56% of whom were in our target age range of 18–24.
## **Campaigns**
Through the year we posted stand-alone verses as usual, and also had three special campaigns:
- Easter – Do You See This Woman?
- Summer – StorySharers competition.
- Christmas – 4 specially designed posts and 4 reels.
We learned from each of these campaigns, not least avoiding the trap of our own age-based bias in terms of design and tone. The StorySharers campaign was a great start at reaching new, creative audiences, and has given us a base to build on.
## **Target audience**
The target for VerseFirst has been to reduce the age of the audience to re-align the project with the original audience of teenagers. In January, a post-boost caused a spike in the number of accounts we were shown to, and one 14-year-old commented this:
_“Thank you so much. I’m 14 and only started reading the Bible regularly recently. I needed this. Praise the Lord! I also think that this verse can help my friends a lot.”_
The largest age group we are reaching is still 25–54, but we are down from 40.5% to 35.8%, which is in line with our target from last year to reduce the age range of our audience. The next largest age group is 18–24, which is currently at 27.8%.
Our Facebook reach is healthy, but the age of people typically using that platform is higher than our target audience on Instagram, so we don’t focus on Facebook. Engagement of any kind on Instagram is a struggle because the algorithm favours sales posts and influencers. Our plans for 2023 are to continue to reduce the age range of followers and engaged accounts.
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## **In-person activity**
In May we exhibited at Big Church Day Out with the intention of canvassing the opinion of young people who were attending the festival – see information above.
## **NINE BEATS**
Work on next steps and future re-shaping of NINE BEATS continued as live events slowly became more prevalent, though still tentative. Through the year, we maintained presence online and in person, and explored how we might best provide the environment and trajectory for the project to reach more of its potential in the church and beyond.
## **Live events**
Two live events (sponsored by Jerusalem Trust) were held in October. We will carry over the remaining grant for this to later in 2023. At Ascension Church in Hulme and Inclusive Gathering, Birmingham, we shared the beatitudes with a mix of music, spiritual formation, storytelling, liturgy, beatitudes teaching, spoken word and more. Some general attendee feedback:
_“It was just a beautiful, beautiful afternoon. It really reflected our values as a community and what we’re trying to be here in this space ... it was a real thrill ... so I am really, really grateful and I’m hoping we can do more together.”_
_“It was really phenomenal, and we could really experience God’s presence in many ways, and the music, and the band was awesome. It included everyone, it was inviting, and it’s really good to be here.”_
_“First time here. Loved music and communion. Found the experience very uplifting.”_
_“Thank you for bringing such joy to our Sunday. It was lovely to feel so uplifted, yet real – plus relevant issues were discussed.”_
A small spike owing to the two events only confirmed that activity is key to the nature of the engagement. Small increments, up to 1,676 followers on Instagram, around 1,000 on Facebook – but a focussed push needs to be implemented when live events allow, as this is the main gateway for engagement in this realm.
## **Church engagement, funding and partnerships**
Since we have been initiating our church engagement strategy over the past few years, NINE BEATS and Ninefold Path have been a connection point for numerous networks/groups. In 2022, conversations with several were initiated, including: Heartedge Network – both core and five churches/communities linking NINE BEATS/Music & Spiritual formation; St Stephens Church Norwich; Top Church Dudley; St James, Clerkenwell & The Pitch; The Crosby Collective, and several more. We also began developing a link with Churches Together in England (CTE), and exploring other avenues for partnerships.
At a leadership meeting in June, we decided that the best opportunity to deliver and grow the project was to maximise seeking funding and partnerships from external sources, rather than from Lifewords alone. This began a careful process, as any integration with our church relationships needed to be kept in mind as we continued to seek external funding and partnerships, while maintaining the benefit already evident for our internal church engagement. Our goal is to honour the investment made by Lifewords and generate future opportunities for a project that is appreciated in several spaces within the Christian mission world, in as much as it aligns with Lifewords mission, vision, and direction in a rapidly changing missional and cultural environment.
A three-day developmental workshop was held with key collective members in Pepperdine University, USA to scope out what collateral was needed to create and use in meetings seeking support, funding, and partnerships in 2023. The USA side of the project is a very different cultural and religious space than
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UK/Europe and has potential for a different level of development. Subsequent conversations have indicated some substantive sources of potential funding. The aim is to get us in front of the right people and organisations in order to assess potential by the end of 2023. It is also worth recognising that one of the prime components of the project is the diversity of the collaboration (people and content): our conversations sought to maintain and develop this aspect in and of itself, and to reach a more diverse audience, in the medium and long term.
## **Ninefold Path**
During April we completed the stipendiary relationship with Mark Scandrette with a spring OMS Learning Lab – sharing our gratitude for the co-creation (with Danielle Welch) and initial delivery in UK, USA, Kenya and Australia.
A reminder of the impact of the curriculum came from participants in the lab:
_“This is a beautiful opportunity to steep in the words of Jesus, allow them to do deep work in you, and move you from contemplation to action. This methodology is highly commendable and is causing me to re-evaluate some of the methods we use in ministry!”_
_“It is amazing that meeting just once a week to look at the Ninefold Path and taking part in the labs actually embeds the teaching into everyday life. Very powerful learning too.”_
The door is ajar should particular groups require (and fund) the live curriculum labs. The content is also an ongoing component in the broader presentation and events context. The Ninefold Path resource began to be promoted more primarily as a group booklet resource/series for churches and groups, in line with original concepts – starting in Australia and in UK at the start of 2023. The switch of structure allows us to bring other voices to the fore and widen the way NINE BEATS/Ninefold Path is presented and perceived by audiences.
## **FINANCIAL REVIEW**
Income was £2,595,799, an increase of £1,176,082 (+83%) on the previous year [2021: decrease of £121,351]. This reflects higher donations and grants (an increase of £42,414 on 2021) and higher legacy income (an increase of £1,145,823 on 2021). The financial statements show that 36% of income came from donations and grants [2021: 62%], 63% from legacies [2021: 35%], and 1% from literature sales, investments and other income [2021: 3%]. Total expenditure was £1,446,909 – an increase of £74,125 (+5%) on the previous year [2021: decrease of £121,050]. The Charity spent 93% of total expenditure on developing, producing, and delivering products and programmes in the UK and overseas [2021: 93%]. 7% was spent on raising funds [2021: 7%].
During the past financial year there was a surplus on ordinary activities of £1,148,890 [2021: surplus of £46,933]. The net movement in funds in 2022, which includes other recognised gains and losses, produced a surplus on the total funds of £2,054,288 [2021: surplus of £1,185,716]. This surplus includes FRS102 actuarial gains on the defined benefit pension scheme of £947,000 [2021: actuarial gains of £976,000].
## **Reserves policy**
The Board has a formal reserves policy which is to hold in reserve sums to cover nine months’ planned expenditure (currently calculated at £1.5m) in order to respond to any (unforeseen) change in circumstances and levels of income. Through the approval and management of appropriate budgets the Charity also ensures it is in a position to maximise investment opportunities. Free reserves at 31 December 2022 (calculated as net assets, excluding restricted funds, the pension reserve, property & fixed assets and stock) were £2,267,692 [2021: £2,065,702]. This is above the reserves policy level (taking into account legacies recently notified, and also plans for future use of Ministry Development funds) and is considered adequate to meet the needs of the Charity.
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## **Investment policy and review**
The Trustees pursue an investment policy on behalf of the Charity which provides a balance between income and capital growth, with a medium level of risk over the longer term, thereby enabling the Trustees to meet their objectives in respect of the requirements of the charity. Designated funds have been invested in the Newton Growth & Income Fund for Charities in line with the above policy. The performance of the Newton Fund during the year was -4.7% against the comparative index of -6.7% [2021: performance of 19.2% against comparative index performance of 13.3%]. During the year the Fund outperformed its comparative index by 2% [2021: outperformed by 5.9%]. The fund remains ahead of the index over three, five and ten years. At the end of the year the investments in the Newton Fund showed cumulative unrealised gains of £472,496 [2021: unrealised gains of £544,098]. The Trustees are satisfied with the current return on capital.
## **Pension fund**
The Charity has two pension schemes. One is a defined contribution scheme with Aegon which is currently open to new members and meets the requirements of auto-enrolment. The second is a defined benefit scheme invested with Legal & General and administered by Barnett Waddingham LLP, which has been closed to new members since 25 March 2003 and closed to new accrual since 23 May 2012; and which, for the purposes of FRS102, showed a funding deficit of £619,000 [2021: deficit of £1,702,000]. The corresponding asset / liability does not result in an immediate cash flow impact on the Charity. In September 2014 the Trustees put in place a contingent asset security agreement with the trustees of the defined benefit pension scheme (on a property currently valued at the book value of £713,303) to strengthen the employer covenant and to give the pension trustees greater financial security over the assets of the employer. A full triennial actuarial valuation of the pension fund as of 6 April 2022 is currently under way. If necessary, the Recovery Plan will be adjusted to take account of the result of this valuation. Contributions to the pension scheme are met through additional contributions from the Charity. The pension liability is therefore excluded from the free reserves calculation. Details of the retirement benefit schemes are disclosed in Note 19 to the financial statements.
## **PLANS FOR FUTURE PERIODS**
As always, our desire is to be diligent stewards of the ministry and to work out of a vision for the mission and work of Lifewords that remains sustainable, fruitful and transformative.
While Covid has eased as a “clear and present danger”, finances, income generation, church activities, supporter engagement/nurture, capacity, all in the context of global mission and Bible work, continue to be our challenge. Our priorities are always to foster outcomes that nurture the best collaborative partnerships, most appropriate infrastructure, best content/delivery and most effective engagement with the Bible.
In 2023 we will do that in part by maintaining the ongoing development, growth and delivery of our core, regular mission offerings:
## **Bible Resources**
In line with our Scripture Gift Mission heritage of a core range of Bible literature in multiple languages that equips hundreds of thousands of Christians all over the world in their witness, evangelism, discipleship, and proclamation of the gospel; we will continue to deliver Bible resources in relevant languages, while adding to this range and investing in digital delivery to augment print. We will complete our project to refresh our existing library and extend the range of languages year-on-year and achieve our initial target of at least two core titles (print and digital versions) in fifty languages by (or before) end 2023.
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## **Digital**
We will continue to learn, develop, adapt to and be aware of the ever-changing digital and broader online environment, working to ensure accessibility of our existing resources in digital formats and create new, authentic digital engagement with Scripture. We will keep on exploring and investing in digital development and innovation to engage Scripture with youth and teen content creators.
## **Marketing/comms**
We will increase ministry profile to uplift impact of our resources – extending profile through churchfocused and culture-facing resources/programmes/projects/initiatives.
## **Church engagement**
We will continue networking with churches, communities, and partners to increase presence, profile and positioning within UK churches – positioning Lifewords as a vibrant, go-to producer of resources, projects and programmes that bring the Bible’s message to people in all walks of life. We will continue to position ourselves as a forward-looking heritage brand, producing materials that empower and equip, inspire, and engage people with the Bible’s life words.
## **Bible Engagement projects**
We will refine our larger scale projects and programmes (Bible Resources, Pavement Project and NINE BEATS), ensuring the most fit-for-purpose shape, and seek to identify partners, both practical and financial.
## **Pavement Project**
We will embed a new trainers’ app and online training, alongside in-person counselling. The “train the trainers” model will continue, with growth in more regions.
## **NINE BEATS**
Our beatitudes-based project will look to more partnerships and networks, and continue to assess scale/funding opportunities and development. We will further connect with churches and the culture at large, both through the Ninefold Path curriculum and live events as appropriate. We will continue to foster the broad collaboration around the beatitudes/Sermon on the Mount as a key text for our time.
## **Funding**
We will continue to seek new funding sources, nurture existing trusts and individual donors, and approach new funders for the ministry across traditional, core, and new digital and “entrepreneurial” donors. We will grow UK networks for impact and support, and work with other Lifewords organisations outside the UK to better engage more people in this work of sharing the Bible around the world.
## **STRUCTURE, GOVERNANCE & MANAGEMENT**
## **Governing document**
Scripture Gift Mission (Incorporated) is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association dated 30 December 1916, and altered by subsequent special resolutions, the most recent being dated 23 June 2011. Anyone over the age of 18 can become a member of the Company and there are currently 61 members [2021: 64], each of whom agrees to contribute £1.05p in the event of the winding up of the Company.
## **Organisation**
The Board administers the Charity and meets at least four times a year. To facilitate effective operations, the Board has established an International Executive Team to lead the Mission and who have authority, within terms of delegation from the Board, for operational matters including finance, employment, and programme-related activity. The International Executive Team consists of the international directors: Steve Bassett (Creative & Communications), John Harris (Finance & Operations), Jarek Jankowski (Global
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Bible Resources), Clenir dos Santos (Pavement Project), and Dan Hardie (Australia/New Zealand). The dayto-day operations in the UK are overseen by Steve Bassett & John Harris with Jarek Jankowski in constant contact.
The Charity is the leading member of the Lifewords global family of organisations. The other members are separately incorporated companies in their respective countries. In 2022, there were agency agreements with member organisations in Australia, Brazil, Canada, Kenya, India, Indonesia, and USA. Our Global Bible Resources programme is managed and run from Poland. Orders from USA are processed from the UK or Poland.
## **Appointment of trustees**
Trustees are appointed by the Board or by Ordinary Resolution of members for a three-year term and are eligible for re-election on two successive occasions only. A trustee cannot serve for a period of more than nine years, save with approval by unanimous vote from the Board.
## **Trustee induction and training**
An introductory pack for potential trustees is in use. A programme of preliminary meetings with the Executive Team and Board members (including the Chair) precedes an invitation to attend a Board meeting, prior to an invitation to join the Board. Trustees are offered the opportunity to attend trustee training courses such as those provided by the National Charity Voluntary Organisation (NCVO).
## **Related parties**
The Charity has two wholly owned dormant subsidiary companies in which the share capital is unpaid. Only Lifewords Ltd is likely to be used for the purpose of servicing future commercial needs. This company remained dormant during 2022.
The Finance Director and Company Secretary acts as trustee for the charity Radstock Trust CIO which gave grants to the Charity during the year totalling £350,000 [2021: £350,000].
Jadan Reeves-Bassett, son of the Creative Director, was paid £5,075 for design services [2021: £1,125].
The aggregated total amount of donations received without conditions from key management personnel during the year was £370 [2021: £363].
## **Pay policy for senior staff**
The Trustees consider the Board of Trustees (who are the Company Directors) and the senior staff with International Office responsibilities, comprise the key management personnel of the charity in charge of directing, controlling, running, and operating the charity on a day-to-day basis. All Trustees give of their time freely, and no Trustee received remuneration in the year. Details of Trustees’ expenses are disclosed in Note 9 of the financial statements.
The pay of all staff, including senior staff, is reviewed annually and normally increased in line with (CPI) inflation, if funds allow. If funding is under pressure, preference is given to lower-paid staff when making any pay awards. Senior staff pay is benchmarked against pay levels in similar organisations (religious/Christian charities of a similar turnover and size) using information from Third Sector pay surveys (published by ACEVO and Global Connections). The remuneration benchmark is the mid-point of the range paid for similar roles. Salaries were last benchmarked in September 2019.
## **Fundraising practice**
The Charity is committed to ensuring all fundraising activities are carried out in an ethical and godly manner. The Charity is registered with the Fundraising Regulator and adheres strictly to their Code of Fundraising Practice and all legal obligations. We proactively monitor revisions to this code to ensure all our fundraising activities remain fully compliant. We confirm that we received no complaints regarding
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our fundraising activities or practices during this year or the previous year. We do not sell or swap data with other charities or organisations or make any cold telephone calls to the general public. In 2022 the Charity did not contract the services of professional fundraisers as defined by section 58 of the Charities Act 1992. We encourage all feedback, whether positive or negative, and we regularly monitor and analyse what people tell us to make sure we are continuously improving our procedures. If we become aware of any vulnerable people on our database, we ensure that they do not receive any appeals and ensure that any requests for details to be updated or deleted from our database are handled quickly. We have signed up to receive suppressions under the Fundraising Preference Service.
## **Risk management**
The Trustees acknowledge that they have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise. Board members are also cognisant of the requirement and responsibility for safeguarding the assets of the Charity and have taken steps towards the implementation of an ongoing process of risk assessment.
The risk management strategy includes:
- An annual review of the risks the Charity may face
- The establishment of systems and procedures to mitigate identified risks
- The implementation of procedures designed to minimise any potential impact on the Charity should these risks materialise
The key risks facing the charity are identified as (a) reliance on legacy income; (b) deficit position of the charity’s Defined Benefit Pension Scheme; (c) loss of key management personnel; and (d) loss or damage to reputation (and subsequent loss of support). The Trustees and senior staff have sought to address these risks in 2022 through ongoing review of long-term financial strategy; ongoing management of the Pension Scheme; ongoing development of local Boards and personnel in the associated organisations outside the UK (increasing capacity and reducing the risk of losing key personnel in the UK); and ongoing oversight of creative development, particularly in new areas, with a view to safeguarding reputation.
## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
The Charity Trustees (who are also the Directors for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company. In preparing the financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently
- observe the methods and principles in the Charities SORP 2019 (FRS102)
- make judgements and estimates that are reasonable and prudent
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
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The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **DISCLOSURE**
The Trustees confirm that, so far as they are aware, there is no relevant audit information of which the Charity’s auditors are unaware, and that they have taken all reasonable steps as charity trustees to make themselves aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
Approved by the Board and signed on its behalf by:
Liz Heyburn Chair of the Board Date: 14 August 2023
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SCRIPTURE GIFT MISSION (INCORPORATED)**
## **Opinion**
We have audited the financial statements of Scripture Gift Mission (Incorporated) (the ‘charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended.
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
24
Scripture Gift Mission (Incorporated)
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report included within the Report of the Trustees has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Report of the Trustees.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime, and take advantage of the small companies’ exemption in preparing the Report of the Trustees.
## **Responsibilities of Trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 23, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the charity and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulations.
25
Scripture Gift Mission (Incorporated)
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
- Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.
In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to income recognition and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of the audit report**
This report is made solely to the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
## **Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Mazars LLP**
Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS Date: 16 August 2023
26
Scripture Gift Mission (Incorporated)
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **for the year ended 31 December 2022**
|**STATEMENT OF FINANCIAL ACTIVITIES**
**for the year ended 31 December 2022**||||||
|---|---|---|---|---|---|
|**Notes**
**Funds**
**Income**
**£**
**Unrestricted Funds**
**Revaluation Reserve**
**General Fund**
**Designated**|**Unrestricted Funds**||**Restricted**
**Funds**
**£**|**Total**
**2022**
**£**|**Total**
**2021**
**£**|
|||**Funds**
**Designated**||||
|Donations and grants|436,271|-|486,116|922,387|879,973|
|Legacies|840,689|-|800,000|1,640,689|494,866|
||1,276,960|-|1,286,116|2,563,076|1,374,839|
|||||||
|Investment income
3
Other income
4|22,274
10,449|-
-|-
-|22,274
10,449|20,978
23,900|
|**Total income**|**1,309,683**|**-**|**1,286,116**|**2,595,799**|**1,419,717**|
|**Expenditure**
5||||||
|**Costs of raising funds**
**Expenditure on charitable activities**
Providing Bible resources
Enabling programmes for communities-in-need
Strengthening capacity of branches & partners|95,337
532,046
231,387
24,268|-
25,000
25,000
-|-
477,014
36,857
-|95,337
1,034,060
293,244
24,268|100,497
1,006,153
245,391
20,743|
||787,701|50,000|513,871|1,351,572|1,272,287|
|**Total expenditure**|**883,038**|**50,000**|**513,871**|**1,446,909**|**1,372,784**|
|||||||
|**Net income/(expenditure) before gains and losses**|**426,645**|**(50,000)**|**772,245**|**1,148,890**|**46,933**|
|Realised & unrealised gains on property assets
11
Realised & unrealised (losses)/gains on investment assets
12|30,000
(71,602)|-
-|-
-|30,000
(71,602)|27,183
135,600|
|**Net income/(expenditure)**|**385,043**|**(50,000)**|**772,245**|**1,107,288**|**209,716**|
|**Other recognisedgains and losses**||||||
|19
Remeasurement gains on defined benefit pension scheme|947,000|-|-|947,000|976,000|
|||||||
|**Net movement in funds**|**1,332,043**|**(50,000)**|**772,245**|**2,054,288**|**1,185,716**|
|**Reconciliation of funds**||||||
|Funds brought forward 1 January 2022|787,295|475,000|52,937|1,315,232|129,516|
|**Funds carried forward 31 December 2022**|**2,119,338**|**425,000**|**825,182**|**3,369,520**|**1,315,232**|
All income and expenditure in each of the above two years are derived from continuing activities. There are no other recognised gains or losses relating to either year.
27
Scripture Gift Mission (Incorporated)
## **BALANCE SHEET**
## **at 31 December 2022**
|**BALANCE SHEET**
**at 31 December 2022**|**BALANCE SHEET**
**at 31 December 2022**|
|---|---|
|**2022**
**2021**
**Fixed assets**
**Notes**
**£**
**£**||
|Tangible assets
10
Investment property
11
Investments
12|841,218
873,493
30,000
-
914,109
985,711|
|**Total fixed assets**|**1,785,327**
**1,859,204**|
|**Current assets**||
|Debtors
14
Stock
Short-term deposits|1,639,596
407,873
24,428
25,100
152,411
151,799|
|Cash at bank and in hand|468,499
722,270|
|||
|**Total current assets**|**2,284,934**
**1,307,042**|
|**Liabilities**||
|||
|15
Creditors: amounts falling due within one year|(81,741)
(149,014)|
|||
|**Net current assets**|**2,203,193**
**1,158,028**|
|**Net assets excluding pension liability**|**3,988,520**
**3,017,232**|
|Defined benefit pension scheme liability
19|(619,000)
(1,702,000)|
|**Total net assets**|**3,369,520**
**1,315,232**|
|**Represented by:**||
|**Restricted funds**
16
Unrestricted funds
16
General fund
Designated funds
Revaluation reserve (property investment)
Pension scheme reserve deficit
19
**Total unrestricted funds**|**825,182**
**52,937**
1,802,838
1,583,795
1,330,500
1,380,500
30,000
-
(619,000)
(1,702,000)
**2,544,338**
**1,262,295**|
|**Total charity funds**|**3,369,520**
**1,315,232**|
These financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.
The notes on pages 30 to 39 form part of these financial statements.
Approved by the Trustees on 14 August 2023 and signed on their behalf by:
Liz Heyburn Chair of the Board Date: 14 August 2023
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Scripture Gift Mission (Incorporated)
## **STATEMENT OF CASH FLOWS at 31 December 2022**
|**STATEMENT OF CASH FLOWS**
**at 31 December 2022**||||
|---|---|---|---|
||**Notes**|**2022**|**2021**|
|**Cash flows from operating activities**||**£**|**£**|
|Net income as per SOFA||2,054,288|1,185,716|
|Adjustments for:||||
|Depreciation|10|30,236|32,736|
|Losses/(gains) on investments|11/12|41,602|(162,783)|
|Investment income|3|(22,274)|(20,978)|
|(Increase)/decrease in debtors|14|(1,231,723)|98,270|
|Inventories|BS|672|(2,936)|
|(Decrease)/increase in creditors|15|(67,273)|57,287|
|**Net cash provided by operating activities**||**805,528**|**1,187,312**|
|**Cashflows from investing activities**||||
|Purchase of property plant and equipment|10|2,039|(7,601)|
|Proceeds on disposal of investments|11|-|70,683|
|Investment income|3|22,274|20,978|
|**Net cash provided by investing activities**||**24,313**|**84,060**|
|**Cashflows from financing activities**||||
|Movement in defined benefit pension scheme|19|(1,083,000)|(1,127,000)|
|**Net cash used in financing activities**||**(1,083,000)**|**(1,127,000)**|
|Change in cash and cash equivalents in the reporting period|20|(253,159)|144,372|
|Cash and cash equivalents at the beginning of the reporting period|20|874,069|729,697|
|**Cash and cash equivalents at the end of the reporting period**|**20**|**620,910**|**874,069**|
29
Scripture Gift Mission (Incorporated)
## **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022**
## **1 LEGAL STATUS OF THE CHARITY**
The Charity is a company limited by guarantee having no share capital. At the accounting date there were 61 members [2021:64]. Each member undertakes to contribute such amount as may be required in the event of the winding up of the Charity up to a maximum of £1.05 (one guinea) each.
## **2 ACCOUNTING POLICIES**
## **a) Basis of preparation**
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) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The trustees have reviewed detailed cash flow projections to 31 December 2024 and have agreed detailed budgets for the year ending 31 December 2023. Both sources of income and types of expenditure have been reviewed. Whilst one of the main charitable purposes of the Charity is to help people everywhere to experience the Bible as good news for their lives through programmes, resources, literature, and digital tools, the level of this needed expenditure is at the discretion of the Trustees and can be adjusted during the year. The Trustees have also considered the Charity's working capital and capital expenditure requirements. As a result of the foregoing the Trustees are satisfied that it is appropriate to prepare the accounts on a going concern basis.
The Charity 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 note(s).
## **b) Fund accounting**
Unrestricted Funds are funds which are available to use at the discretion of the Board in furtherance of the Charity’s charitable objects. There are two designated funds, the first of which is a fund of £905,500 with a corresponding long-term liability of the same amount designated as security against the deficit of the defined benefit pension scheme, giving a balance at year end of £nil [2021: £nil]. The second fund of £425,000 is a capital fund for new ministry development [2021: £475,000]. These designated funds were established following the surrender of the lease of the Charity’s former offices in 2010. Restricted Funds are funds which are used in accordance with restrictions expressed by donors or which have been raised for specific purposes. The details of the appropriate funds in the accounting year are shown at Note 16.
## **c) Income**
All income is reflected in the financial statements when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earliest date of the Charity being notified of an impending distribution or the legacy being received. No value is included where the legacy is subject to a life interest held by another party. No amounts are included in the financial statements for services donated by volunteers.
## **d) Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the Charity’s charitable activities. Where possible, all direct costs have been allocated to the appropriate activity. All other costs have been assigned as support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **e) Allocation of support costs**
Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include general management, finance and IT, premises and facilities, governance costs, and administration costs for the defined benefit pension scheme. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in Note 6.
30
Scripture Gift Mission (Incorporated)
## **f) Depreciation**
The basis for charging depreciation is that assets are depreciated on a straight-line basis to write off the cost of those assets over their estimated useful lives in the Charity’s activities.
Office long-term lease – over 50 years Office purchase costs and irrecoverable VAT – over 50 years Leasehold improvements and refurbishment – over 10 years Equipment, fixtures and fittings – over 5 years Computers – over 4 years
## **g) Investment property**
The investment property, which comprises a half share in four freehold blocks of flats is shown at the valuation date of September 2022 (Note 11). At 31 December 2022 the investment property consists of the freehold as the last remaining apartment was sold during the prior year [2021: freehold]. Ground rent is being received in respect of the 16 apartments already sold. The investment property is being held jointly with another charity. No depreciation is provided in respect of this property. The rental income from the investment had been shown net after expenses, in view of the immaterial amounts involved.
## **h) Fixed asset investments**
Fixed asset investments are stated at market value at the accounting date. All unrealised gains and losses representing the change in value from the previous accounting date are charged against the appropriate fund.
## **i) Stocks**
Printing costs are charged to production costs at the date of purchase, but no account is taken of the stocks of completed or incomplete publications at the end of the accounting period, as these will be given away free of charge (Note 13).
## **j) Operating leases**
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain the lessor’s, are charged against income as incurred.
## **k) Taxation**
As a registered charity, the Charity has no liability to United Kingdom taxation on its charitable activities.
## **l) Pension**
The Charity operates a funded defined benefit pension scheme based on final pensionable salary, which is now closed to new employees and to further accrual. This has been replaced by a defined contribution scheme with Aegon based on individual personal pension funds for new employees. The assets of both schemes are held separately from those of the Charity, being invested with the above insurance companies. Contributions to both schemes are charged to the Statement of Financial Activities so as to spread the cost of pensions over employees' working lives with the Charity. The contributions to the defined benefit scheme are determined on the recommendation of a qualified actuary and to the defined contribution scheme by agreement between the Charity and its employees.
In accordance with FRS102, the SOFA includes: the cost of benefits accruing during the year in respect of current service (charged against net income/(expenditure)); the expected return on the scheme’s assets and the increase in the present value of the scheme’s liabilities arising from the passage of time (charged against net income/(expenditure)); and actuarial losses recognised in the pension scheme (shown within net movement of funds). In accordance with FRS102, the balance sheet includes the deficit in the scheme, taking assets at their yearend market values and liabilities at their actuarially calculated values discounted at year-end AA corporate bonds yield curve. Further details regarding the scheme are disclosed in Note 19.
## **m) Foreign currencies**
Foreign currencies have been converted to £ sterling at rates of exchange approximating to those ruling at the Balance Sheet date.
31
Scripture Gift Mission (Incorporated)
## **n) Significant management judgements**
The following are the management judgements in applying the policies of the Charity that have the most significant impact on the amounts recognised in the financial statements:
- Accrued legacy income: The Charity has made an assessment as to whether the conditions recognition of legacy income are met on a case by case basis, specifically in respect of the measurement of the amount due. In making these judgements, management considered the detailed criteria set out in the Charities SORP 2019 (FRS 102).
## **3 INVESTMENT INCOME**
The Charity’s investment income of £22,274 [2021: £20,978] arises from dividends from fixed asset investments (£20,514 [2021: £20,308]), interest bearing deposit accounts (£1,760 [2021: £670]).
## **4 OTHER INCOME**
The Charity’s other income of £10,449 [2021: £23,900] arises from HMRC employment allowance (£5,000 [2021: £4,000]), HMRC Job Retention Scheme (£nil [2021: £16,189]), literature sales, some church display rack sales, and the sale of NINE BEATS albums, merchandise, and Ninefold Path resources (£5,449 [2021: £3,711]).
## **5 ANALYSIS OF TOTAL EXPENDITURE**
||**Direct**|**Support**|**Total**|**Total**|
|---|---|---|---|---|
||**Costs**|**Costs**|**2022**|**2021**|
|**EXPENDITURE**|**£**|**£**|**£**|**£**|
|**Costs of raising funds**|66,864|28,473|95,337|100,497|
|**Total cost of raising funds**|**66,864**|**28,473**|**95,337**|**100,497**|
|**Expenditure on charitable activities**|||||
|Providing Bible resources|851,388|182,672|1,034,060|1,006,153|
|Enabling programmes for communities-in-need|276,633|16,611|293,244|245,391|
|Strengthening capacity of branches & partners|14,741|9,527|24,268|20,743|
|**Total expenditure on charitable activities**|**1,142,762**|**208,810**|**1,351,572**|**1,272,287**|
|**TOTAL EXPENDITURE**|**1,209,626**|**237,283**|**1,446,909**|**1,372,784**|
## **6 ANALYSIS OF SUPPORT COSTS**
||**£**
**General**
**management**|**£**
**Premises,**
**Finance**
**& IT**|**£**
**DB pension**
**admin, legal &**
**finance**|**£**
**Depreciation**|**£**
**Governance**
**costs**|**Total**
**2022**
**£**|**Total**
**2021**
**£**|
|---|---|---|---|---|---|---|---|
|Costs of raising funds|4,930|11,415|5,612|3,628|2,888|28,473|38,856|
|Providing Bible resources|31,225|72,293|37,882|22,979|18,293|182,672|198,318|
|Enabling programmes for communities-in-need|2,876|6,659|3,274|2,117|1,685|16,611|15,542|
|Strengthening capacity of branches & partners|2,054|4,757|-|1,512|1,204|9,527|6,331|
|**Total support costs**|**41,085**|**95,124**|**46,768**|**30,236**|**24,070**|**237,283**|**259,047**|
Cost allocation includes an element of judgement and the Charity has had to consider the cost benefit of detailed calculations and record-keeping. To ensure full cost recovery on projects, the Charity adopts a policy of allocating costs to the respective cost headings through the year. This allocation includes support costs where they are directly attributable. Therefore, the support costs shown are a best estimate of the costs that have been so allocated. The defined benefit pension administration and finance costs include elements from both the General Fund and the Defined Benefit Pension (FRS102) Fund.
32
Scripture Gift Mission (Incorporated)
## **7 ANALYSIS OF GOVERNANCE COSTS**
||**Total**|**Total**||
|---|---|---|---|
||**2022**|**2021**||
|**GOVERNANCE COSTS**|**£**|**£**||
|Auditors' fees|11,453|10,173||
|Professional and legal fees|2,099|498||
|Strategic management|9,867|1,787||
|Trustees' expenses|651|-||
|**Totalgovernance costs**|**24,070**|**12,458**||
Auditors' fees include £11,453 for Audit fee and irrecoverable VAT on fee [2021: £9,600] and £nil for other services [2021: £573].
## **8 STAFF COSTS**
|**8**
**STAFF COSTS**||||
|---|---|---|---|
||**Total**|**Total**||
||**2022**|**2021**||
|**Staff costs**|**£**|**£**||
|Salaries|300,915|352,185||
|Social security|32,172|34,532||
|Pension|31,195|35,889||
|**Total staff costs**|**364,282**|**422,606**||
No employees had employee benefits in excess of £60,000 during the year or previous year. Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds. During the prior year one staff post was made redundant, with a statutory termination payment of £5,440, all of which has been paid.
The key management personnel of the Charity, comprise the Trustees, Creative Director, Finance Director and Global Bible Resources Director. The total employee benefits of the key management personnel of the Charity were £162,744 [2021: £161,895].
The average monthly head count was 10 staff [2021: 10 staff]. At year-end the charity had 4 full-time staff [2021: 4 full-time staff] and 3 part-time staff [2021: 4 part-time staff]. The average monthly number of full-time equivalent employees during the year was 7 [2021: 9].
In the way that our global family of organisations operates, senior staff (key management personnel) in the UK are also responsible for facilitating and supporting work in the other six Lifewords centres in Brazil, India, Indonesia, Australia, Kenya and USA. All other national or functional directors report to the International Executive Team, as part of a global leadership team. Together as a global family we employ a further 20-25 staff outside of the UK, and have about the same number again of volunteers making a significant contribution to training and coordinating our Bible programmes. A further 50+ volunteers serve as facilitators (peer mentors) for Pavement Project initiatives.
During the year the Charity transferred £165,648 to the defined pension scheme as part of the Recovery Plan [2021: £186,396] and £nil in respect of accrual of benefits [2021: £nil] in accordance with the Schedule of Contributions.
## **9 TRUSTEES**
The Board members were not paid and did not receive any other benefits from employment with the Charity during the year or previous year. The aggregated amount of expenses reimbursed to one Board member during the year was £651 [2021: £nil]. No Board member received payment for professional or other services supplied to the charity during the year or previous year.
33
Scripture Gift Mission (Incorporated)
## **10 TANGIBLE FIXED ASSETS**
**----- Start of picture text -----**
Equipment, Office purchase,
fixtures refurbishment Office
**----- End of picture text -----**
||**fixtures**|**refurbishment**|**Office**||
|---|---|---|---|---|
||**and fittings**|**& VAT costs**|**leasehold**|**Total**|
|**Cost**|**£**|**£**|**£**|**£**|
|At 1 January 2022|127,536|207,349|869,880|1,204,765|
|Additions|2,326|-|-|2,326|
|VAT adjustments|-|(4,365)|-|(4,365)|
|Disposals and written off|(24,593)|-|-|(24,593)|
|**Cost at 31 December 2022**|**105,269**|**202,984**|**869,880**|**1,178,133**|
|**Depreciation**|||||
|At 1 January 2022|119,940|72,151|139,181|331,272|
|Charge for the year|4,608|8,232|17,396|30,236|
|Disposals and written off|(24,593)|-|-|(24,593)|
|**Depreciation at 31 December 2022**|**99,955**|**80,383**|**156,577**|**336,915**|
|**Net book value**|||||
|**At 31 December 2022**|**5,314**|**122,601**|**713,303**|**841,218**|
|**At 31 December 2021**|**7,596**|**135,198**|**730,699**|**873,493**|
All the above assets were used in direct furtherance of the Charity's charitable objects.
The Trustees have granted a first legal charge over the office leasehold to the trustees of the defined benefit pension scheme to strengthen the employer covenant and to give the pension trustees greater financial security over the assets of the employer.
## **11 INVESTMENT PROPERTY**
|**11 INVESTMENT PROPERTY**||||
|---|---|---|---|
||**2022**|**2021**||
|**UKproperty**|**£**|**£**||
|Value at 1 January|-|43,500||
|Revaluation|30,000|27,183||
|Disposals during year||(70,683)||
|**Value at 31 December**|**30,000**|**-**||
The investment property at 31 December 2022 consists of a half share in four freehold blocks of flats [2021: freehold]. Ground rent is being received in respect of the 16 apartments already sold. The investment property is being held jointly with another charity. The freehold was valued in September C Hennessy MRICS Register Valuer. There are no charges over this property or restrictions on its use.
||**2022**|**2021**||
|---|---|---|---|
|**Revaluation Reserve balance**|**£**|**£**||
|At original valuation at 1 January|-|6,293||
|Disposals during year|-|(6,293)||
|**At original valuation at 31 December**|**-**|**-**||
|**Revaluation reserve balance (Note 16)**|**30,000**|**-**||
The original valuation was the market valuation at the date of death, as the property was acquired as a legacy.
34
Scripture Gift Mission (Incorporated)
## **12 FIXED ASSET INVESTMENTS**
|**12 FIXED ASSET INVESTMENTS**||
|---|---|
|Market value at 1 January
Change in value in the year|**2022**
**2021**
**£**
**£**
985,711
850,111
(71,602)
135,600|
|||
|**Market value at 31 December**|**914,109**
**985,711**|
|Historical cost:
At 31 December|441,613
441,613|
Listed investments are represented by 584,992 units in Newton Growth & Income Fund for Charities at a book value of £441,613 [2021: £441,613]. The cumulative unrealised gains on these investments are £472,496 [2021: £544,098].
## **13 STOCK OF SCRIPTURES**
Stocks of Scripture publications held for future distribution, which have not been included in the assets on the Balance Sheet as these will be given away free of charge, have been valued by the Charity at 31 December 2022 at the sum of £110,000 [2021: £119,000]. This valuation has not been subject to audit.
## **14 DEBTORS**
|**14 DEBTORS**||||
|---|---|---|---|
||**2022**|**2021**||
||**£**|**£**||
|Legacy debtors (unrestricted)|775,224|373,422||
|Legacy debtors (restricted)|800,000|-||
|Taxation recoverable|8,799|12,728||
|VAT recoverable|34,032|-||
|Pre-payments and other|21,541|21,723||
|**Total debtors**|**1,639,596**|**407,873**||
## **15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
||**2022**|**2021**||
|---|---|---|---|
||**£**|**£**||
|Taxation and social security|7,351|9,295||
|Trade creditors|32,422|51,570||
|VAT liability|-|16,705||
|Other creditors|41,968|71,444||
|**Total creditors due within one year**|**81,741**|**149,014**||
35
Scripture Gift Mission (Incorporated)
## **16 MOVEMENTS IN FUNDS**
**----- Start of picture text -----**
Balance at Income Expenditure Transfers Investment Actuarial Balance at
1 January Gains/(losses) Gains 31 December
£ £ £ £
Restricted funds
**----- End of picture text -----**
|**Restricted funds**||
|---|---|
|Providing Bible resources|17,937
449,572
(467,509)
-
-
-
-|
|Choose Life|-
777
(777)
-
-
-
-|
|Pavement Project
NINE BEATS|5,000
835,647
(36,857)
-
-
-
803,790
30,000
120
(8,728)
-
-
21,392|
|**Unrestricted funds**
**Designated**
Security against the deficit of the
defined benefit pension scheme
Ministry development
**Revaluation Reserve**
**General**||
||**52,937**
**1,286,116**
**(513,871)**
**-**
**-**
**-**
**825,182**
-
-
-
-
-
-
475,000
-
(50,000)
-
-
-
425,000
-
-
-
-
30,000
-
30,000
787,295
1,309,683
(883,038)
-
(71,602)
947,000
2,089,338|
||**1,262,295**
**1,309,683**
**(933,038)**
**-**
**(41,602)**
**947,000**
**2,544,338**|
|**Total funds**|**1,315,232**
**2,595,799**
**(1,446,909)**
**-**
**(41,602)**
**947,000**
**3,369,520**|
The fund for providing Bible resources covers publications in a wide range of countries. Restricted income was also received and expended towards the development of the NINE BEATS project, aimed at engaging emerging generations with the Bible through the Beatitudes.
The funds for Choose Life and Pavement Project cover the current operation and ongoing development of these programmes (a values-based life-skills curriculum for teenagers, and the training & resourcing of workers in a Biblebased counselling process for children-at-risk, respectively).
There are two designated funds, the first of which is a fund of £905,500 with a corresponding long-term liability of the same amount designated as security against the deficit of the defined benefit pension scheme giving a balance at year end of £nil [2021: £nil]. The second fund of £425,000 is a capital fund for new ministry development [2021: £475,000].
## **17 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
**----- Start of picture text -----**
General Revaluation Designated Restricted
Fund Reserve Funds Funds Total
£ £ £ £ £
Fund balances at 31 December 2022 are represented by:
Fixed assets 424,827 30,000 1,330,500 - 1,785,327
Current assets 1,459,752 - - 825,182 2,284,934
Current liabilities (81,741) - - - (81,741)
Total net assets before pension liability 1,802,838 30,000 1,330,500 825,182 3,988,520
Long term pension liability 286,500 - (905,500) - (619,000)
Total net assets 2,089,338 30,000 425,000 825,182 3,369,520
**----- End of picture text -----**
36
Scripture Gift Mission (Incorporated)
## **18 RELATED PARTY TRANSACTIONS**
The Charity has two wholly owned dormant subsidiary companies in which the share capital is unpaid. Only Lifewords Ltd is likely to be used for the purpose of servicing future commercial needs. This company remained dormant during 2022.
The Finance Director and Company Secretary acts as trustee for the charity Radstock Trust CIO which gave grants to the Charity during the year totalling £350,000 [2021: £350,000].
Jadan Reeves-Bassett, son of the Creative Director, was paid £5,075 for design services [2021: £1,125].
The aggregated total amount of donations received without conditions from key management personnel during the year was £370 [2021: £363].
## **19 PENSION**
The Charity operates two pension schemes in the UK. The assets of both schemes are held separately from those of the Charity, being invested with separate insurance companies. One is a funded defined benefit scheme invested with Legal & General and administered by Barnett Waddingham LLP, and the other a defined contribution scheme with Aegon; the former having closed to new employees on 25 March 2003 and closed to further accrual on 23 May 2013, with the latter being open to all new employees. Contributions to the defined benefit scheme are assessed on the basis of the advice of qualified actuaries using the projected unit credit method.
|**Pension costs charged were:**
Defined benefit scheme (Recovery Plan)
Defined benefit scheme (additional transfer)|**2022**
**2021**
**£'000**
**£'000**
166
162
-
24|
|---|---|
|Defined contribution scheme|31
36|
|**Total**|**197**
**222**|
No amounts were owing at the year end [2021: £nil].
## **Additional FRS102 disclosures**
The valuation used for FRS102 disclosures has been based upon the latest full actuarial valuation at 6 April 2019 and updated by a qualified independent actuary. The major assumptions used by the actuary were:
|**%**|**2022**|**2021**|**2020**|**2019**|**2018**|
|---|---|---|---|---|---|
|Rate of increase in salaries
Rate of increase for pensions in payment and deferred pension
Discount rate
Inflation assumption - retailprice index increase|n/a
3.05
4.85
3.20|n/a
3.15
1.85
3.30|n/a
2.85
1.25
2.95|n/a
2.90
2.05
3.00|n/a
3.10
2.90
3.20|
37
Scripture Gift Mission (Incorporated)
## **19 PENSION (continued)**
**The assets in the scheme and the expected rate of return were:**
|Legal & General funds|**Long-term**
**rate of**
**expected**
**return at**
**31/12/20**
**%**
**2019**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/22**
**%**
**2021**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/21**
**%**
**2020**
**fair value**
**£'000**|**Long-term**
**rate of**
**expected**
**return at**
**31/12/20**
**%**
**2019**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/22**
**%**
**2021**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/21**
**%**
**2020**
**fair value**
**£'000**|**Long-term**
**rate of**
**expected**
**return at**
**31/12/20**
**%**
**2019**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/22**
**%**
**2021**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/21**
**%**
**2020**
**fair value**
**£'000**|**Long-term**
**rate of**
**expected**
**return at**
**31/12/20**
**%**
**2019**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/22**
**%**
**2021**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/21**
**%**
**2020**
**fair value**
**£'000**|**Long-term**
**rate of**
**expected**
**return at**
**31/12/20**
**%**
**2019**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/22**
**%**
**2021**
**fair value**
**£'000**
**Long-term**
**rate of**
**expected**
**return at**
**31/12/21**
**%**
**2020**
**fair value**
**£'000**|
|---|---|---|---|---|---|
|||||||
|Managed Funds
Annuities|4.8
2.7|3,569
1,155|4.8
2.7|5,112
4.8
1,478
2.7|4,575
1,664|
|**Total market value of assets**||4,724||6,590|6,239|
|||||||
|**Present value of scheme liabilities**||5,343||8,292|9,068|
|**Deficit in scheme being the net pension liability**||**(619)**||**(1,702)**|**(2,829)**|
|**Analysis of the amount charged against operating income**|||**2022**
**£'000**|**2021**
**£'000**||
|Current service cost
Past service cost
**Total operating charge**|||-
-
**-**|-
-
**-**||
|Expected return on pension scheme assets
Interest on pension scheme liabilities
**Net return**
(Losses)/gains on assets in excess of interest
Experience losses on liabilities
Gains from changes to demographic assumptions
**Re-measurements over the year**
**Re-measurements over the year**
Gains from changes to financial assumptions
**Analysis of the amount credited to other finance income**
**or debited to other finance costs**|||**2022**
**£'000**
121
(151)
**(30)**
**2022**
**£'000**
(1,927)
(108)
2
2,980
**947**|**2021**
**£'000**
77
(112)
**(35)**
**2021**
**£'000**
374
-
5
597
**976**||
|Deficit in the scheme at beginning of year
Movement in year
Contributions
Interest on assets
Interest cost
Re-measurements over the year
**Deficit in the scheme carried forward**
**The movements on the scheme deficit during the period for FRS102 purposes**|||**2022**
**£'000**
(1,702)
166
121
(151)
947
**(619)**
**are:**|**2021**
**£'000**
(2,829)
186
77
(112)
976
**(1,702)**||
38
Scripture Gift Mission (Incorporated)
## **19 PENSION (continued)**
## **History of experienced gains and losses**
|Total amount recognised in SOFA (£'000)
Percentage of thepresent value of the scheme liabilities
Difference between actual and expected return on scheme assets (£'000)
Percentage of scheme assets at end of year
Experience gains/(losses) on scheme liabilities (£'000)
Percentage of the present value of the scheme liabilities|**2022**
**2021**
**2020**
**2019**
**2018**
**2017**|
|---|---|
||(1,927)
374
228
410
(253)
190
(40.8)
5.7
3.7
6.8
(4.7)
3.4
(108)
-
45
40
-
3
(2.0)
-
0.5
0.5
-
0.0
947
976
(843)
(617)
159
(67)
17.7
11.8
(9.3)
(7.6)
2.3
(0.9)|
## **Volatility of FRS102**
It should be noted that the methodology and assumptions prescribed for the purposes of FRS102 mean that these disclosures are inherently volatile, varying greatly according to investment market conditions at each accounting date.
## **20 NOTE TO THE CASH FLOW**
|Cash at bank
Cash on deposit
**Net cash**|At 1
January
2022 Cash flows
At 31
December
2022
722,270
(253,771)
468,499
151,799
612
152,411
874,069
(253,159)
620,910
**874,069**
**(253,159)**
**620,910**|
|---|---|
39