Chabad Lubavitch of Bloomsbury - Central - Charities report - 20.1.6

REGISTERED COMPANY NUMBER: 07442727 (England and Wales)

REGISTERED CHARITY NUMBER: 1140342

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

CHABAD LUBAVITCH OF BLOOMSBURY - CENTRAL

LONDON

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

to

8

Notes to the Financial Statements

9

to

15

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the

financial statements of the charity for the year ended 31 December 2019. The trustees have adopted the provisions of

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).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The objects of the charity are:

(i) The advancement of the Jewish religion and Jewish religious education in accordance with the principles of Chabad

Lubavitch.

(ii) The relief of poverty in particular but not exclusively by providing training and advisory services to poor people to

enable them to acquire skills equipping them for life and for earning a livelihood.

(iii) The advancement of education.

Public benefit

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when

reviewing the aim and objectives and in planning the charity's future activities. In particular, the trustees consider how

planned activities will contribute to the aims and objectives set.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Based on the Chabad Lubavitch teachings and philosophy, Chabad Lubavitch of Bloomsbury - Central London operates a

Chabad House that provides Jewish educational classes, cultural resources, welfare resources and religious services in

central London. We focus primarily, although by no means exclusively, on young people.

We work extensively with students, as part of the Jewish Student Centre at the Chabad House. Many students are leaving

home for the first time when attending university. We provide them with personal care and a wide range of religious,

educational, social and cultural programming. We also provide specific programming for older students, young professionals

and young families as well as the wider community.

Our weekly events have continued to grow in popularity and attendance, the most popular being our Shabbos programmes.

In addition to synagogue services and classes, we also continued to host large Friday night dinners. Each year we host over

6,000 people at our various programmes and events, from a wide variety of backgrounds and social-economic situations.

The charity continued with and built upon the relationship with the AEPi fraternity. We hosted other various events, geared

towards philanthropic work with the broader community. We also expanded our cooperation with other Jewish student

groups, with very positive effect.

We have continued our cooperation with other providers to provide events for young professionals. This has been a great

success and has helped people connect with their Judaism in a sophisticated yet fun way.

We have expanded our programmes for young children and families. We have hosted several events which allow children to

engage with their heritage and tradition in a fun and positive manner, whilst teaching them the values of sharing and

cooperation.

Over the year we have received requests for welfare assistance, in line with our relief of poverty objective. Our assistance

ranged from providing food, organising temporary accommodation when required, assisting with finding employment and

occasional direct grants. We also provide counselling and a listening ear when required. In addition to those who attend out

in-house programmes and events, we extended assistance to an estimated 2,500 people through these projects.

In 2017 we purchased premises to serve as the permanent base for the charity and its operations. This is a very exciting

development for our charity and will enable us to expand our programmes and our reach. It was purchased with a sitting

tenant on a short lease. The tenant vacated in the 3rd quarter of 2018 and we are currently working on a full refurbishment

and fitting out please G-d, whilst partly utilising the premises in the meantime.

Summary of the main achievements during the period:

- Record attendees at our High Holy Day explanatory and inclusive services at the Chabad House. No charge to attend,

ensuring that everyone can participate.

- Further developed our relationship with AEPi, hosting new events and assisting with their philanthropic work.

- Further developed our relationship and cooperation with other Jewish student groups. Working together for the benefit of

all Jewish - and non-Jewish - students of all backgrounds, endeavouring to ensure that nobody is left out.

- Developed our relationship with other Young Jewish Professional groups, including operating under the umbrella 'Young

Jewish London'. Hosted events geared to that demographic, to ensure a positive engagement with Judaism in a more

sophisticated yet fun and friendly manner.

- Expanded our offering to children and parents.

- Increased the diversity of participants at our regular events.

- Continued with women's events and added events to empower women through, and within, Jewish practice and tradition.

- Started talks with the aim of offering classes and events in other languages, specifically French.

- Continued with leadership courses.

- Expand our existing cooperation and intercommunal work with the local community.

- Continued with wider coordination with other organisations within the Jewish community to work on joint programming for

our target audience.

FINANCIAL REVIEW

Financial position

The financial results of the charity for the year ended 31 December 2019 are fully reflected in the attached Financial

Statements together with the Notes thereon.

Income from donations and other income aggregated £452,586 (2018: £547,717). Total resources expended was £441,361

(2018: £497,212) resulting in net surplus of £11,225 (2018: £50,505).

Reserves policy

As at 31 December 2019, the charity had total unrestricted funds of £620,640 (2018: £609,415).

FUTURE PLANS

Response to Covid-19

The following are our key objectives as part of our 5 year plan. In light of the current situation with COVID-19 and its

impact on society at large, as well as on our organisation and community, those objectives remain as a strategic direction.

The immediate focus is on our COVID-19 response, which includes: urgent material support under our relief of poverty

objectives, including food packages, basic goods for those in isolation, transport help, delivery services for those who are

homebound; mental and emotional support for those in need, including those facing acute challenges due to the current crisis

and those affected by the increase in domestic abuse; pro-active sessions to give people the tools to better address the

challenges they face and to be able to identify key trigger points for mental health and relationship crises and identify

mechanisms for dealing with them before they become acute.

We are very grateful to have received significant funding for a number of the crucial projects which form our COVID-19

response from The National Lottery Community Fund - distributed by City Bridge Trust through the London Community

Response Fund. Thank you to National Lottery players for making this possible.

We are also very grateful to our general partners for their continued and solid partnership and support in a challenging

environment. Last but not least, we thank our dedicated staff and volunteers who have stepped up with such aplomb in this

challenging situation in order to provide much needed assistance to others.

In addition to the above emergency Covid-19 response, the charity has developed a five year strategic plan which

encompasses four key objectives:

- To expand, develop and continually improve its services to meet the needs of existing and potential users;

- To attract, recruit and retain the best quality staff and volunteers;

- To provide high quality, cost effective service delivery across all of its services; and

- To establish new partnerships and build on existing relationships and work with its partners in the areas of operation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee,

as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

New trustees are appointed due to their interest in the work of the charity and their recognised experience in specific fields

which will further support the work of the Jewish Student Centre. Trustees can retire when they wish as they do not serve

under a fixed term of tenure.

The trustees, who are also directors for the purpose of company law, administer the charity. The power to appoint new

trustees is vested in the current board.

Organisational structure

All trustees give their time voluntarily and receive no benefits from the charity.

Related parties

None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and

guarantee to contribute £1 in the event of winding up.

There are no related charities.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07442727 (England and Wales)

Registered Charity number

1140342

Registered office

85 Great Titchfield Street

London

W1W 6RJ

Trustees

Mr Y Y Kopfstein

Mr Y Y Weisz

Mr A L Lee

Independent Examiner

Mr Pesach Davidoff

FCCA

DAS Accounting Services Ltd

105 Eade Road

OCC Building A

2nd Floor, Unit 11A

London

N4 1TJ

Approved by order of the board of trustees on 30 October 2020 and signed on its behalf by:

Mr A L Lee - Trustee

Independent examiner's report to the trustees of Chabad Lubavitch of Bloomsbury - Central London ('the

Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2019.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the

preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and

are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out

under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions

given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I

am qualified to undertake the examination because I am a registered member of FCCA which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination

giving me cause to believe:

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

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

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be

drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mr Pesach Davidoff

FCCA

DAS Accounting Services Ltd

105 Eade Road

OCC Building A

2nd Floor, Unit 11A

London

N4 1TJ

30 October 2020

2019

2018

Unrestricted

Total

funds

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

422,586

505,738

Investment income

3

30,000

41,979

Total

452,586

547,717

EXPENDITURE ON

Charitable activities

4

Direct charitable expenditure

332,397

365,197

Other charitable expenditure

108,964

132,015

Total

441,361

497,212

NET INCOME

11,225

50,505

RECONCILIATION OF FUNDS

Total funds brought forward

609,415

558,910

TOTAL FUNDS CARRIED FORWARD

620,640

609,415

2019

2018

Unrestricted

Total

funds

funds

Notes

£

£

FIXED ASSETS

Tangible assets

11

2,018,764

2,000,000

CURRENT ASSETS

Debtors

12

46,184

17,172

Cash at bank and in hand

15,986

3,077

62,170

20,249

CREDITORS

Amounts falling due within one year

13

(170,278

)

(84,934

)

NET CURRENT ASSETS

(108,108

)

(64,685

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,910,656

1,935,315

CREDITORS

Amounts falling due after more than one year

14

(1,290,016

)

(1,325,900

)

NET ASSETS

620,640

609,415

FUNDS

16

Unrestricted funds

620,640

609,415

TOTAL FUNDS

620,640

609,415

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 30 October 2020 and were signed on its behalf by:

Mr A L Lee - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of

Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting

Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies

Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts have been prepared on an ongoing basis based on the continued support by the Trustees to meet its

liabilities as and when due.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, the trustees are requires to make judgments, estimates and

assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The

estimates and associated assumptions are based on historical experience and other factors that are considered to be

relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the

revision and future periods if the revision affects both current and future periods.

The trustees do not consider there are any critical judgments or sources of estimation uncertainty requiring disclosure

beyond the accounting policies listed below.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is

probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity

to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount

of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified

under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular

headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not

accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

over the period of the lease

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable

company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as

either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a

residual interest in the assets of the entity after deducting all of its liabilities.

Basic Financial Instruments

Trade and other debtors

Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Subsequent to

initial recognition, trade and other debtors that are classified as receivable within one year are measured at the

undiscounted amount of the cash or other consideration expected to be received net of impairment. If the

arrangement constitutes a financial transaction, for example, if payment is deferred beyond normal business terms,

then they are measured at the present value of the future payments discounted at a market rate for a similar debt

instrument.

Trade and other creditors

Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent

to initial recognition trade and other creditors that are classified as payable within one year are measured at the

undiscounted amount of the cash or the other consideration expected to be paid. If the arrangement consitutes

amount of the cash or other consideration expected to be paid. If the arrangement constitutes a financial transaction,

for example, if payment is deferred beyond normal business terms, then they are measured at the present value of the

future payments discounted at a market rate for a similar debt instrument.

2.	DONATIONS AND LEGACIES

2019

2018

£

£

Donations and gifts

351,866

443,079

Grants received

12,725

35,245

Event income

57,995

27,414

422,586

505,738

Donations and gifts include donated assets and services totalling £59,422 (2018: £151,893) as follows:

2019

2018

£

£

Outreach expenses

47,969

134,259

Rent and rates

-

9,291

Telephone and IT

10,453

8,343

Repairs and Maintenance

1,000

-

59,422

151,893

3.	INVESTMENT INCOME

2019

2018

£

£

Rental income

30,000

41,978

Deposit account interest

-

1

30,000

41,979

4.	CHARITABLE ACTIVITIES COSTS

Grant

funding of

Direct

activities

Support

Costs (see

(see note

costs (see

note 5)

6)

note 7)

Totals

£

£

£

£

Direct charitable expenditure

205,581

126,816

-

332,397

Other charitable expenditure

-

-

108,964

108,964

205,581

126,816

108,964

441,361

5.	DIRECT COSTS OF CHARITABLE ACTIVITIES

2019

2018

£

£

Staff costs

23,430

18,296

Outreach expenses

180,036

266,339

Advertising and marketing

105

1,500

Depreciation

2,010

-

205,581

286,135

6.	GRANTS PAYABLE

2019

2018

£

£

Direct charitable expenditure

126,816

79,062

The total grants paid to institutions during the year was as follows:

2019

2018

£

£

Grants to Institutions

45,078

33,415

All grants paid to institutions went towards one of the following purposes: the relief of poverty, advancement of

Jewish religion and advancement of Jewish religious education.

The following grants to institutions were paid during the year:

£

Chabad Lubavitch UK

32,963

Chabad of the Waterways

3,580

Less than £3,000

8,535

Total Grants to Institutions

45,078

The total grants paid to individuals during the year was as follows:

2019

2018

£

£

Grants to Individuals

81,738

45,647

7.	SUPPORT COSTS

Governance

Management

Finance

costs

Totals

£

£

£

£

Other charitable expenditure

50,547

56,226

2,191

108,964

8.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2019

2018

£

£

Independent Examiner's Fee

1,440

1,440

Depreciation - owned assets

2,010

-

9.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2019 nor for the year ended

31 December 2018.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2019 nor for the year ended

31 December 2018.

10.	STAFF COSTS

2019

2018

£

£

Wages and salaries

33,919

27,356

Pension costs

100

-

34,019

27,356

The average monthly number of employees during the year was as follows:

2019

2018

Administration

2

4

Outreach

1

-

3

4

No employees received emoluments in excess of £60,000.

11.	TANGIBLE FIXED ASSETS

Improvements

Long

to

leasehold

property

Totals

£

£

£

COST

At 1 January 2019

2,000,000

-

2,000,000

Additions

-

20,774

20,774

At 31 December 2019

2,000,000

20,774

2,020,774

DEPRECIATION

Charge for year

2,010

-

2,010

NET BOOK VALUE

At 31 December 2019

1,997,990

20,774

2,018,764

At 31 December 2018

2,000,000

-

2,000,000

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Other debtors

5,288

5,221

Prepayments and accrued income

40,896

11,951

46,184

17,172

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts (see note 15)

35,270

34,655

Trade creditors

10,954

10,690

Social security and other taxes

1,053

859

Other creditors

123,001

38,730

170,278

84,934

14.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans (see note 15)

1,290,016

1,325,900

15.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

£

£

Amounts falling due within one year on demand:

Bank loans

35,270

34,655

Amounts falling due between two and five years:

Bank loans - 2-5 years

141,078

144,041

Amounts falling due in more than five years:

Repayable by instalments:

Bank loans repayable by instalments

1,148,938

1,181,859

16.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.19

in funds

31.12.19

£

£

£

Unrestricted funds

General fund

609,415

11,225

620,640

TOTAL FUNDS

609,415

11,225

620,640

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

452,586

(441,361

)

11,225

TOTAL FUNDS

452,586

(441,361

)

11,225

Comparatives for movement in funds

Net

movement

At

At 1.1.18

in funds

31.12.18

£

£

£

Unrestricted funds

General fund

558,910

50,505

609,415

TOTAL FUNDS

558,910

50,505

609,415

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

547,717

(497,212

)

50,505

TOTAL FUNDS

547,717

(497,212

)

50,505

17.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2019.