CFI_CHARITABLE_TRUST - Accounts

The Trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association, the Companies Act 2006 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)".

A major emphasis of Christian Friends of Israel is educational, that is, the provision of accurate and up-to-date information on Israel and the surrounding region, education on the Hebraic heritage of Christianity, and the need for positive Jewish-Christian relationships. This is carried out by regular news letters and other printed material, audio CDs and video DVDs, lectures, the organisation of educational conferences and promoting tourism to Israel at a study level.

By providing a Christian perspective on current events, the Trust endeavours to enable Christians to pray for Israel and her people intelligently.

Public benefit

The Trustees consider that the activities, as described above, fulfil all the requirements of the Charity Commissions public benefit disclosure and comply with the Charity’s objects.

Review of the year 2020

The arrival of the Covid-19 virus in early 2020 did affect the operations and finances of the Charity. However the Charity responded well to the changing environment in communications necessary to ensure the effectiveness of the ministry as evidenced below.

The education of the public concerning the country of Israel and its citizens

Given the restrictions that arrived early in the year, we were pleased just prior to hold a venue-based regional dinner together with the Jewish community with main speaker representing the Aramaic Christian community in Israel, supplemented by a student charity worker’s talk about furthering Israel understanding on campus and an interview by Israeli journalist, alongside music and film clips, exhibitors room and silent auction.

We attended a regional Christian resources exhibition at the start of the year, but others were deferred to the following year or went online.

We continued refreshing our communication material to make our message more accessible across the generations and circulated this across our support base, which was appreciated during lockdown period.

We particularly stepped up our social media communications using a variety of platforms and prepared a Jewish festival themed set of talks over the week of the festival.

The relief of the poor, sick, handicapped, aged or otherwise needy people who either live in Israel or are seeking to emigrate to that country

We were thankful that our restricted fund giving held up well, and once again alongside our regular restricted funds going to those in need in Israel, our trustees allocated funds held for ‘where most needed in Israel’ to cross-community (Jewish/Arab) needy causes in Israel, particularly for medical and medical research needs in light of the pandemic.

The advancement of education amongst Christians, Jews and the general public of what the Bible has to say about the history of the Jews in the land of Israel through to current times and God's plans for them

Several opportunities were taken by the chief executive and senior staff to communicate online, with an online Bible-teaching conference for young people, some online church talks plus we were able to prepare an online talk for a national Christian resource exhibition held online, which was the second highest watched.

Our annual conference this year was held entirely online, over two days, evening followed by morning sessions. Going online gave an opportunity to reach a wider number of participants than would otherwise travel to a venue-based conference. It featured a lecturer from Australia with doctoral and postdoctoral research in the area of Israel and the wider regions’ religious ethnicities. The second speakers used a question-and-answer discussion format between the pastors and younger generation youth workers. Together these provided clear and practical biblical teaching to understanding Israel better, and reach the younger generation.

Much work went into an online Holocaust remembrance event for Holocaust Memorial Day, the following January, with contribution from author and previous department head at Yad Vashem the Holocaust memorial museum in Israel, alongside the CFI Jerusalem project for Holocaust survivors, Forsake Them Not, interspersed with music, film, art and poetry.

We continued to identify, promote and sell educational books, booklets, audio and audio-visual resources and distribute free literature, including writing and editing a further free pamphlet and Israel in Context series booklets. We also started the refresh of our teaching CDs and DVDs into a new Explore series.

The advancement of the Christian faith with particular reference to its teaching about the Jewish people

Monthly subscriptions of Judaic Christian themed teaching CDs were distributed.

Our quarterly magazine readership benefited from articles and regular features including Israel-related biblical exposition, hebraic teaching and Hebrew word studies, plus highlighted humanitarian causes.

The regional links and church links used what communication they were able, but the restriction limited their work considerably. We supplemented this centrally by increasing our online presence, doubling up our previously fortnightly news and comment communication.

Encouragement and informed prayer for Israel and its people

We edit a monthly prayer letter written in Israel which is widely read, alongside weekly and fortnightly email updates of news and prayer items. We periodically update a prayer page on our website.

Our prayer encouragement coordinator was a speaker at some outside regional prayer-themed online conferences and trialled an online prayer network for older supporters.

We had to cancel a venue-based national prayer conference but were able to deliver the material in written format.

Income received from regular giving held up well with those giving with gift aid above budget, though slightly under for those non gift aided. The previous year’s increase in churches and trust giving declined due to less opportunity to speak, plus many churches were occupied with more immediate congregational needs. Legacy income reduced from the previous two years but continued to make important contribution to income received.

Regular outgoings were maintained under control. We upgraded several computers to assist with online communication. Having last year reduced some staff-time for health reasons, we were able to recruit two additional staff members to include providing cover for one year of maternity leave. We only had to furlough one staff member who eventually decided to leave employment and relocate to care for an elderly mother. A few improvements were made to the premises, with a more comprehensive improvements programme planned over the coming year, for which a reserve has been set aside of £60,000. Mailing costs were kept to budget.

The year ended in a surplus of £26,461 on unrestricted funds with a fair proportion from sustained increased legacy income.

Public benefit

The Trustees consider that the activities detailed above fulfil all the requirements of the Charity Commissions public benefit disclosure and comply with the Charity’s objects.

Reserves policy

The Trustees consider it prudent to maintain the set-aside of £150,000 representing approximately six month's operating expenditure on General Fund. An additional £60,000 was set aside this year for planned security and building works. Our policy remains to distribute restricted funds in a timely but cost-efficient manner, generally distributing these on a quarterly cycle. We continue to keep our financial resources and obligations under review, mindful of our Christian, charitable and financial responsibility to be good stewards.

The Charity is a company limited by guarantee established by Memorandum and Articles of Association dated 3 December 2003, registration number is 04984515. The Charity is also registered with the Charity Commission in England and Wales, registration number 1101899.

Further information such as the business and registered office addresses, and details of professional advisors can be found on the information page.

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

The Trustees seek to appoint additional Trustees whenever necessary following recommendations from existing Trustees or the chief executive. A potential Trustee would be invited to attend Trustees' meetings as an observer for a few meetings, before any decision is taken concerning their ongoing involvement as a Trustee.

Potential Trustees are provided with all the relevant guides from the Charity Commission before any appointment.

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 a winding up.

The day-to-day work of the Trust is overseen by the chief executive and support staff who are accountable to the Board of Trustees. The Trustees meet regularly and are responsible for the overall direction of the Charity, and for major financial decisions. The chief executive is assisted in his work by the senior staff.

Risk Management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that the systems and policies in place are adequate to mitigate the Charity’s exposure to the major risks.

The Trustees' report was approved by the Board of Trustees.

The Trustees, who are also the directors of CFI Charitable Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these 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;

- 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; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

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

I report to the Trustees on my examination of the financial statements of CFI Charitable Trust (the Charity) for the year ended 31 December 2020.

As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Charity 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 the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, 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 that in any material respect:

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

the financial statements do not accord with those records; or

the financial statements 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

the financial statements 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 financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

CFI Charitable Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF.

The financial statements have been prepared in accordance with the Charity's Memorandum and Articles of Association, the Companies Act 2006 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)". The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Covid-19 and the government restrictions and requirements imposed in its wake have resulted in changes to the way the Charity operates. Their also continues to be uncertainty over how and when restrictions will change. At the time of approving the accounts, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is included in the donation to which it relates to and is recognised at the time of the donation.

Income from charitable activities is recognised when the risks and rewards have been transferred to the purchaser of services or products. It is stated net of VAT, if any.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Charitable costs are allocated between the categories of direct charitable expenditure and support costs, such as administration, in accordance with the nature of the costs. Governance costs are those incurred in the overall governance of the charity and compliance with constitutional and statutory requirements.

No figures are included for services provided by volunteers as these are not possible to measure accurately.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Fixed Asset additions below £250 are not capitalised.

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks of product are valued at cost less provision for slow moving and obsolete items.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

From 1 January 2016 the Charity set up a pension scheme for all employees with the National Employment Savings Trust (NEST). Contributions payable are charged in the General fund in the year they are payable.

In the opinion of the Trustees, the Charity is not subject to United Kingdom corporation tax on its income.

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

General Fund (Unrestricted)

This oversees the day to day work of the Charity.

Designated Funds

Reserve fund

This represents funds put aside as a general reserve in accordance with best practice.

Where Most Needed in General

This fund represents specific gifts given to the Charity to be used by the Trustees at their discretion for specific needy areas of the general fund. Sums given to the Charity to be disbursed where needed.

Change Management fund

This fund represents money set aside from legacies to provide resources to cover the costs of future changes.

Development fund

This fund represents money set aside from legacies to provide resources to develop our website/e-commerce/database and for social media expansion.

Building and Security fund

This fund represents money set aside for an upgrade to the premises and security in 2021.

Restricted Funds

Social and Humanitarian fund

This fund incorporates monies for social and humanitarian causes mainly in Israel but also in other parts of the world. It is made up of:

CFI Jerusalem (A separate Charity, or Amuta, in Israel).

Non-CFI Jerusalem (Various projects including Where most needed in Israel).

Conferences and Tours

This fund encompasses the various prayer and educational conferences of CFI and tours to Israel and is regarded as restricted. Offerings taken at the conferences are utilised to cover the costs and any surplus is noted so that it may be used for the general purposes of the Charity if considered necessary.

Ministers Tour

This fund was specifically set up to fund clergy tours to Israel.

Courses, conferences and tours

Product sales and fees

FA Investment Israel Bond Growth

Furlough government grant

Product costs (adjusted for stock)

Courses, conferences and tours

Printing, postage and stationery

Communication and contributors

Education and promotional events

Advocacy

Training, Meetings and hospitality

Premises costs, head office and north east office

Office equipment, software and consumables

IT and web consultants

Travelling and accommodation

Miscellaneous

Accountancy fees

Independent examination fees

Bank and finance charges

Board expenses

No remuneration is paid to the Trustees. Reasonable travel, accommodation and related expenses were reimbursed of £969 (2019: £1,198).

The charge to statement of financial activities in respect of defined contribution schemes was £5,011 (2019 - £3,868).

No contributions were outstanding and due to the pension fund at the end of the year (2019 - £nil).

The average monthly number of full and part time employees during the year was:

Israel Bonds

Stock represents books, (audio) CD's and (video) DVD's and other related products.

Unrestricted & Designated funds

Unrestricted & Designated funds

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel (including employer's national insurance and pension contributions) is as follows.

During the year the Charity entered into the following transactions with related parties:

The Charity engaged Caladine Ltd to provide accounting support to the Trustees. Caladine Ltd is a company controlled by John Caladine, who serves the Charity as Company Secretary. Details of fees paid to Caladine Ltd are shown in the table above.

The total amount of donations without conditions received from the Trustees during the year was £2,870 (2019: £2,920).

CFI Charitable Trust is a company limited by guarantee and has no share capital. Under the terms of the memorandum of association every member is liable to contribute a sum not exceeding £1 in the event of the company being wound up during the time he or she is a member or one year thereafter. At 31 December 2020 there were 4 members (2019 – 4 members).