The trustees present their annual report and financial statements for the year ended 31 March 2025.
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 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's objective is to donate funds to predominantly UK based charities, although it is not limited to UK charities and would consider donating to global charitable organisations in suitable circumstances.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The charity normally makes donations to UK based charities. However, this year it concentrated on growing its investments in order to continue with its objective of donating funds in future years.
Net incoming resources for the year amounted to £13,948 (2024: £12,073) before taking account of profit/loss on revaluation and disposal of investments of £31,386 gains on investments (2024: £80,390 gain). The overall net movement in funds for the year was £45,334 increase (2024: £92,463 increase). Total funds carried forward at the end of the year amounted to £819,708 (2024: £774,374), split between unrestricted general funds of £653,278 (2024: £639,330) and unrestricted revaluation reserve of £166,430 (2024: £135,044). The revaluation reserve represents the amount by which the fair value of investment assets exceeds cost.
The charity currently adopts a zero-level reserves policy for the following reasons:
The assets of the charity do not include tangible fixed assets or commitments to operate and maintain assets for the purpose of carrying out the charity’s activities;
The small amount of administrative and governance costs incurred are covered by donations from the trustees;
The charity does not commit to programmes of expenditure but determines expenditure on a case-by-case basis, giving due consideration to the financial position of the charity at that time.
The trustees' investment policy is to create sufficient income and capital growth within the portfolio to enable the charity to carry out its charitable purposes in the future with due regard and proper consideration. The trustees reserve the right to exclude companies or funds that carry out activities contrary to their aims or from holding particular investments that would damage the charity's reputation.
During the year the charity has not made any disposals or additions to its investments, but has been happy with the performance of those currently held. The charity has seen growth in the form of unrealised gains of £31,386 giving a market value at the year end of £824,985 including cash balances, a 5.94% increase.
The trustees are satisfied that systems are in place to identify and mitigate exposure to risk.
The charity is a company limited by guarantee, incorporated on 12 February 2013 and registered as a charity on 19 February 2013. The charitable company was established under a memorandum of association which sets out its charitable objects and powers and is governed under its articles of association.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The Board consists of the charity founders and their positions continue until they are terminated in accordance with the charity’s articles. New trustees would be recruited and appointed by the standing trustees at a board meeting. New trustees are advised of their roles and responsibilities when appointed and are advised of suitable external induction and training courses, including charity commission guidance CC3 'The essential trustee'.
None of the trustees has 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 charity is run by the trustees who determine the overall policy of the charity.
The trustees' report was approved by the Board of Trustees.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of VB Charitable Trust for the year ended 31 March 2025, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of VB Charitable Trust and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than VB Charitable Trust and the charity's trustees as a body, for our work or for this report.
It is your duty to ensure that VB Charitable Trust has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and surplus of VB Charitable Trust. You consider that VB Charitable Trust is exempt from the statutory audit requirement for the year, and is not required to obtain an independent examiner's report.
We have not been instructed to carry out an audit or a review of the financial statements of VB Charitable Trust. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 6 to 11 form part of these financial statements.
The notes on pages 6 to 11 form part of these financial statements.
VB Charitable Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Treedown House, Spreyton, Crediton, Devon, EX17 5AS.
The financial statements have been prepared in accordance with the charity's articles of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds are unrestricted funds set aside for specific purposes.
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 recognised at the time of the donation.
Dividends and interest from listed investments are recognised when the charity's right to receive the income has been established.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Fixed asset investments are initially measured at transaction price 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.
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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors 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 creditors 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.
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.
Raising funds
Independent examiner's fees
Other costs
None of the trustees (or any persons connected with them) received any remuneration, benefits or reminbursement of expenses from the charity during the year.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The historic cost of listed investments is £615,216 (2024: £615,216).
The unrestricted revaluation reserve represents the amount by which the fair value of investment assets exceeds historic cost.
The total amount of donations received from trustees of the charity without conditions amounted to £2,432 (2024: £1,332).