CHARITY REGISTRATION NUMBER: 327060
M O Charitable Trust Unaudited Financial Statements 5 April 2024
HAFFNER HOFF LTD
Accountants 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
M O Charitable Trust
Financial Statements
Year ended 5 April 2024
| Pages | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 5 |
| Statement of financial activities | 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 |
M O Charitable Trust
Trustees' Annual Report
Year ended 5 April 2024
The trustees present their report and the unaudited financial statements of the charity for the year ended 5 April 2024.
Reference and administrative details
Registered charity name M O Charitable Trust Charity registration number 327060 Principal office 72 Windemere street Gateshead NE8 1XT The trustees M Kaufman E Kaufman Independent examiner D Schwarz FCCA 2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
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M O Charitable Trust
Trustees' Annual Report
Year ended 5 April 2024
Structure, governance and management
The Charity is a charitable trust constituted by a Deed of Trust dated 20 November 1985 and is a registered charity, number 327060.
The Charity is run by the trustees who all act in an honorary capacity. A new trustee would receive copies of the previous years' Annual Report and Accounts and a copy of the Charity Commission leaflet 'The Essential Trustee : What you need to know'.
Risk Management
The trustees have identified and reviewed the major risks to which the charity is exposed. Both manual and automated checks are regularly invoked, particularly those relating to the operations and finance of the charity. The trustees are satisfied that these systems and procedures mitigate any perceived risks.
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M O Charitable Trust
Trustees' Annual Report (continued)
Year ended 5 April 2024
Objectives and activities
The objectives of the charity are general charitable purposes.
Public Benefit Policy
We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.
Grant Making Policy
Grants are made to charitable institutions and organisations which accord with the objects of the charity.
Investment Policy
It is the policy of the Charity to maintain cash reserves so as to be able to take advantage of any investment opportunities that arise. This policy is regularly reviewed by the trustees and their investment advisors, who advise as to safe investments and when to sell properties and as to rent reviews.
During the year the charity's investments produced a return of 7%, this is significantly higher than rates on bank deposits and the trustees consider property to be an appropriate investment for the charity's funds.
Achievements and performance
The charity made grants totalling £216,992 (2023:£313,446) in furtherance of it objectives.
The charity also donated investment property with a value of £1,145,750 to The Rozac Charitable Trust.
The charity received donations of £1,500 (2023:£37,500) and rental income of £188,339 (2023:£243,647). Interest income was £4,495 (2023:645).
The charity made a gain of £10,000 (2023:loss of 2259) on the sale of investment property.
Financial review
At the year end, the free reserves being the net current liabilities of the charity, were (£38,787) (2023:assets of £213,745).
Reserves Policy
The unrestricted fund represents the unrestricted funds arising from past operating results.
The trustees are satisfied that the balance of the fund is an acceptable level of reserves. It is the policy of the charity to hold reserves sufficient to maintain regular grants at previous years levels. The trustees feel it would be prudent to maintain reserves at such a level that would enable the charity to generate its own income to meet this aim.
Although the charity has net current liabilities at the year end, the trustees are of the opinion that the charity remains a going concern. The investment properties generate significant income which will reduce this deficit on free reserves and the charity is under no obligation with regard to the size of grants to be paid in any particular year.
The accounts are prepared on the going concern basis due to the goodwill and support of the longterm creditors who are supporters of the charity.
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M O Charitable Trust
Trustees' Annual Report (continued)
Year ended 5 April 2024
Plans for future periods
It is anticipated that the charity will continue to support charitable purposes and institutions in accordance with its objects.
The trustees' annual report was approved on 30 January 2025 and signed on behalf of the board of trustees by:
M Kaufman Trustee
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M O Charitable Trust
Independent Examiner's Report to the Trustees of M O Charitable Trust
Year ended 5 April 2024
I report to the trustees on my examination of the financial statements of M O Charitable Trust ('the charity') for the year ended 5 April 2024.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
D Schwarz FCCA
Independent Examiner
2nd Floor - Parkgates Bury New Road Prestwich Manchester M25 0TL
30 January 2025
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M O Charitable Trust
Statement of Financial Activities
Year ended 5 April 2024
| 2024 | 2024 | 2023 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 1,500 | 1,500 | 37,500 |
| Investment income | 5 | 192,834 | 192,834 | 244,292 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total income | 194,334 | 194,334 | 281,792 | |
| ================================ | ================================ | ================================ | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | 6 | (94,568) | (94,568) | (84,703) |
| Expenditure on charitable activities | 7,8 | (1,366,798) | (1,366,798) | (317,550) |
| ----------------------------------------- | ----------------------------------------- | -------------------------------- | ||
| Total expenditure | (1,461,366) | (1,461,366) | (402,253) | |
| ========================================= | ========================================= | ================================ | ||
| Net gains/(losses) on investments | 11 | 10,000 | 10,000 | (2,259) |
| ----------------------------------------- | ----------------------------------------- | -------------------------------- | ||
| Net expenditure | (1,257,032) | (1,257,032) | (122,720) | |
| ========================================= | ========================================= | ================================ | ||
| Other recognised gains and losses | ||||
| Losses from revaluation of fixed assets | – | – | (438,373) | |
| ----------------------------------------- | ----------------------------------------- | -------------------------------- | ||
| Net movement in funds | (1,257,032) | (1,257,032) | (561,093) | |
| Reconciliation of funds | ||||
| Total funds brought forward | 3,232,245 | 3,232,245 | 3,793,338 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 1,975,213 | 1,975,213 | 3,232,245 | |
| ========================================= | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 8 to 14 form part of these financial statements.
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M O Charitable Trust
Statement of Financial Position
5 April 2024
| 2024 | 2023 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Investments | 15 | 2,714,434 | 3,035,500 | |
| Current assets | ||||
| Debtors | 16 | 18,319 | 78,922 | |
| Cash at bank and in hand | 16,310 | 144,054 | ||
| ---------------------------- | -------------------------------- | |||
| 34,629 | 222,976 | |||
| Creditors: amounts falling due within one year | 17 | 73,416 | 9,231 | |
| ---------------------------- | -------------------------------- | |||
| Net current liabilities | (38,787) | 213,745 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total assets less current liabilities | 2,675,647 | 3,249,245 | ||
| Creditors: amounts falling due after more than | ||||
| one year | 18 | 700,434 | 17,000 | |
| ----------------------------------------- | ----------------------------------------- | |||
| Net assets | 1,975,213 | 3,232,245 | ||
| ========================================= | ========================================= | |||
| Funds of the charity | ||||
| Unrestricted funds: | ||||
| Revaluation reserve | (522,186) | (522,186) | ||
| Other unrestricted income funds | 2,497,399 | 3,754,431 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total unrestricted funds | 1,975,213 | 3,232,245 | ||
| ----------------------------------------- | ----------------------------------------- | |||
| Total charity funds | 19 | 1,975,213 | 3,232,245 | |
| ========================================= | ========================================= |
These financial statements were approved by the board of trustees and authorised for issue on 30 January 2025, and are signed on behalf of the board by:
M Kaufman Trustee
The notes on pages 8 to 14 form part of these financial statements.
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M O Charitable Trust
Notes to the Financial Statements
Year ended 5 April 2024
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 72 Windemere Street, Gateshead, NE8 1XT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of investment properties measured at fair value through income or expenditure.
Going concern
Although the charity has net current liabilities at the year end, the trustees are of the opinion that the charity remains a going concern. The investment properties generate significant income which will reduce this deficit on free reserves and the charity is under no obligation with regard to the size of grants to be paid in any particular year.
The accounts are prepared on the going concern basis due to the goodwill and support of the long-term creditors who are supporters of the charity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements did not require management to make judgements, estimates or assumptions that affect the amounts reported at the year end besides for the valuation of investment property.
Fund accounting
General unrestricted funds comprise the accumulated surplus or deficit on income and expenditure account. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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M O Charitable Trust
Notes to the Financial Statements (continued)
Year ended 5 April 2024
3. Accounting policies (continued)
Incoming resources (continued)
- income from donated goods is measured at the fair value of the goods unless this is impracticle to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliabily measured. No amounts are included for the contribution of general volunteers.
Resources expended
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.
Charitable activities are made up of grants to institutions.
Expenditure also includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.
Governance costs are included on an accruals basis and are recognised when there is a legal or constructive obligation to pay for expenditure.
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
If a reliable measure of fair value is no longer available for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
4. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | ||
| £ | £ | £ | £ | ||
| Donations | |||||
| Donations | 1,500 | 1,500 | 37,500 | 37,500 | |
| ======================= | ======================= | ============================ | ============================ | ||
| 5. | Investment income | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | 2024 | Funds | 2023 | ||
| £ | £ | £ | £ | ||
| Income from investment properties | 188,339 | 188,339 | 243,647 | 243,647 | |
| Bank interest receivable | 4,495 | 4,495 | 645 | 645 | |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | ||
| 192,834 | 192,834 | 244,292 | 244,292 | ||
| ================================ | ================================ | ================================ | ================================ |
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M O Charitable Trust
Notes to the Financial Statements (continued)
Year ended 5 April 2024
6. Investment management costs
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Insurance and Service Charge | 19,637 | 19,637 | 16,345 | 16,345 |
| Heat and Light | 2,630 | 2,630 | 1,696 | 1,696 |
| Professional fees | 4,946 | 4,946 | 7,108 | 7,108 |
| Property repairs and maintenance | ||||
| charges | 47,515 | 47,515 | 44,059 | 44,059 |
| Rates | 1,127 | 1,127 | (769) | (769) |
| Sundry | 1,287 | 1,287 | 1,556 | 1,556 |
| Commissions | 17,426 | 17,426 | 14,708 | 14,708 |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 94,568 | 94,568 | 84,703 | 84,703 | |
| ============================ | ============================ | ============================ | ============================ |
7. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Charitable Activities | 216,992 | 216,992 | 313,446 | 313,446 |
| Charitable grants of property | 1,145,750 | 1,145,750 | – | – |
| Support costs | 4,056 | 4,056 | 4,104 | 4,104 |
| ----------------------------------------- | ----------------------------------------- | -------------------------------- | -------------------------------- | |
| 1,366,798 | 1,366,798 | 317,550 | 317,550 | |
| ========================================= | ========================================= | ================================ | ================================ | |
| Expenditure on charitable activities | by activity type | |||
| Grant funding | Support | Total funds | Total fund | |
| of activities | costs | 2024 | 2023 | |
| £ | £ | £ | £ | |
| Charitable Activities | 216,992 | – | 216,992 | 313,446 |
| Charitable grants of property | 1,145,750 | – | 1,145,750 | – |
| Governance costs | – | 4,056 | 4,056 | 4,104 |
| ----------------------------------------- | ----------------------- | ----------------------------------------- | -------------------------------- | |
| 1,362,742 | 4,056 | 1,366,798 | 317,550 | |
| ========================================= | ======================= | ========================================= | ================================ |
8. Expenditure on charitable activities by activity type
9. Analysis of support costs
| Analysis of | |||
|---|---|---|---|
| support costs | Total 2024 | Total 2023 | |
| £ | £ | £ | |
| General office | 456 | 456 | 504 |
| Governance costs | 3,600 | 3,600 | 3,600 |
| ----------------------- | ----------------------- | ----------------------- | |
| 4,056 | 4,056 | 4,104 | |
| ======================= | ======================= | ======================= |
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M O Charitable Trust
Notes to the Financial Statements (continued)
Year ended 5 April 2024
10. Analysis of grants
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Grants to institutions | ||
| AAC | – | 11,800 |
| Bedeech Kovod | 15,000 | – |
| Beis Ahron Trust | – | 20,000 |
| Beis Chinuch Lebonos | 15,000 | – |
| Beis Yoel | 15,000 | – |
| Chasdei Ahron | – | 18,000 |
| Choimel Dalim | 13,500 | – |
| Ezer Viznitz | 10,000 | – |
| Friends of BSS | – | 20,000 |
| Gateshead Kehilla | 13,030 | 13,200 |
| Gateshead Kehilla Kollel | – | 5,430 |
| Gevurath Ari Academy trust | – | 18,000 |
| GJPS Trust | – | 18,000 |
| Grants under £5,000 | 33,802 | 81,994 |
| Hachzokas Torah Vchesed Charity | – | 15,000 |
| Largsmount | – | 6,000 |
| Merkas Hatorah Belz Machnovke | 22,500 | 25,000 |
| Mifal Hachesed Vehatzedokoh | 12,500 | – |
| Mosdos Hatorah Pnei Menachem | – | 5,000 |
| Rozac Charitable Trust | 10,000 | – |
| Shir Chesed Beis Yisroel | 15,000 | – |
| Talmud Torah Yetev Lev | 15,000 | – |
| Tchabe Kollel | – | 18,000 |
| Telz Aacademy Trust | – | 18,000 |
| The Gateshead Cheder Limited | – | 5,672 |
| Weldowa Rehabilitiaon Trust | 10,000 | – |
| Yeshiva Letzeirim | 5,400 | – |
| Yishaya Adler Memorial Fund | 11,260 | 14,350 |
| Grant of property to Rozac Charitable Trust | 1,145,750 | – |
| ----------------------------------------- | -------------------------------- | |
| 1,362,742 | 313,446 | |
| ----------------------------------------- | -------------------------------- | |
| Total grants | 1,362,742 | 313,446 |
| ========================================= | ================================ |
11. Net gains/(losses) on investments
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Gains/(losses) on other investment | ||||
| assets | 10,000 | 10,000 | (2,259) | (2,259) |
| ============================ | ============================ | ======================= | ======================= |
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M O Charitable Trust
Notes to the Financial Statements (continued)
Year ended 5 April 2024
12. Independent examination fees
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Fees payable to the independent examiner for: | ||
| Independent examination of the financial statements | 3,600 | 3,600 |
| ======================= | ======================= |
13. Staff costs
Nil Nil
The average head count of employees during the year was Nil (2023: Nil).
No employee received employee benefits of more than £60,000 during the year (2023: Nil).
14. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
15. Investments
| Investment | |
|---|---|
| properties | |
| £ | |
| Cost or valuation | |
| At 6 April 2023 | 3,035,500 |
| Additions | 1,308,434 |
| Disposals | (1,629,500) |
| ----------------------------------------- | |
| At 5 April 2024 | 2,714,434 |
| ========================================= | |
| Impairment | |
| At 6 April 2023 and 5 April 2024 | |
| Carrying amount | |
| At 5 April 2024 | 2,714,434 |
| ========================================= | |
| At 5 April 2023 | 3,035,500 |
| ========================================= |
All investments shown above are held at valuation.
Investment properties
The investment properties are stated at market value at the year end as per the trustees valuation in conjunction with professional valuation.
16. Debtors
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Other debtors | 18,319 | 78,922 |
| ============================ | ============================ |
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M O Charitable Trust
Notes to the Financial Statements (continued)
Year ended 5 April 2024
17. Creditors: amounts falling due within one year
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Bank loans and overdrafts | 64,000 | – |
| Accruals and deferred income | 3,600 | 4,020 |
| Social security and other taxes | 4,740 | 4,740 |
| Other creditors | 1,076 | 471 |
| ---------------------------- | ----------------------- | |
| 73,416 | 9,231 | |
| ============================ | ======================= | |
| Creditors: amounts falling due after more than one year | ||
| 2024 | 2023 | |
| £ | £ | |
| Loans | 700,434 | – |
| -------------------------------- | ---------------------------- | |
| 700,434 | 17,000 | |
| ================================ | ============================ |
18. Creditors: amounts falling due after more than one year
19. Analysis of charitable funds
Unrestricted funds
| stricted funds | ||||||
|---|---|---|---|---|---|---|
| At 06 | Gains and | At 05 | ||||
| Apr 2023 | Income | Expenditure | Transfers | losses | Apr 2024 | |
| £ | £ | £ | £ | £ | £ | |
| General funds | 3,754,431 | 194,334 | (1,461,366) | (609,050) | 10,000 | 1,888,349 |
| Revaluation | ||||||
| reserve | (522,186) | – | – |
609,050 | – | 86,864 |
| ----------------------------------------- | -------------------------------- | ----------------------------------------- | -------------------------------- | ---------------------------- | ----------------------------------------- | |
| 3,232,245 | 194,334 | (1,461,366) | – | 10,000 | 1,975,213 | |
| ========================================= | ================================ | ========================================= | ================================ | ============================ | ========================================= | |
| At | Gains and | At | ||||
| 6 Apr 2022 | Income | Expenditure | Transfers | losses | 5 Apr 2023 | |
| £ | £ | £ | £ | £ | £ | |
| General funds | 3,877,151 | 281,792 | (402,253) |
– | (2,259) | 3,754,431 |
| Revaluation | ||||||
| reserve | (83,813) | – | – |
– | (438,373) | (522,186) |
| ----------------------------------------- | -------------------------------- | -------------------------------- | -------------- | -------------------------------- | ----------------------------------------- | |
| 3,793,338 | 281,792 | (402,253) |
– | (440,632) | 3,232,245 | |
| ========================================= | ================================ | ================================ | ============== | ================================ | ========================================= |
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M O Charitable Trust
Notes to the Financial Statements (continued)
Year ended 5 April 2024
20. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2024 | |
| £ | £ | |
| Investments | 2,714,434 | 2,714,434 |
| Current assets | 34,629 | 34,629 |
| Creditors less than 1 year | (73,416) | (73,416) |
| Creditors greater than 1 year | (700,434) | (700,434) |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 1,975,213 | 1,975,213 |
| ========================================= | ========================================= | |
| Unrestricted | Total Funds | |
| Funds | 2023 | |
| £ | £ | |
| Investments | 3,035,500 | 3,035,500 |
| Current assets | 222,976 | 222,976 |
| Creditors less than 1 year | (9,231) | (9,231) |
| Creditors greater than 1 year | (17,000) | (17,000) |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 3,232,245 | 3,232,245 |
| ========================================= | ========================================= |
21. Related parties
During the year the charity received donations of £1,500 from related parties.
Included in creditors is £17,000 (2023:£17,00) owing to the trustees of the charity. This loan is interest free.
Included in creditors is £167,100 owing to Kaufman Properties Ltd. Kaufman Properties Ltd is a related party by virtue of its directors being close relatives of the trustees. This loan is interest free.
The Rozac Charitable Trust is a related party by virtue of having a trustee in common with this charity. The charity granted investment properties with a total value of £1,145,750 as well as a £10,000 cash grant to Rozac Charitable Trust.
JOCT is a related party by virtue of the trustees being close relatives of the trustees of this charity. JOCT received a grant of £1,000 in the year. This was subject to normal grant criteria.
22. Taxation
M O Charitable Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
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