The trustees present their annual report and financial statements for the year ended 31 October 2025.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitable company'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)” (published in October 2019).
The object of The Fellowship Property Trust (‘FPT’) is to advance the Evangelical Christian Faith. In seeking to advance this, the charitable company acts in a corporate trustee capacity for church properties and seeks to further the objects and work of The Fellowship of Independent Evangelical Churches (‘FIEC’).
The trustees have considered the general guidance issued by the Charity Commission on public benefit and, in particular, its supplementary guidance on the advancement of religion for the public benefit.
During the year the charitable company continued to implement the strategy agreed in its Business Plan. This acknowledged an ongoing period of managed decline as client churches leave our trust holding, mainly by way of converting to Charitable Incorporated Organisation status or transferring to an alternative trust holding provider.
In addition, we strove to ensure that client churches:
have governing documents that are legally compliant and are of a standard to allow for registration with the Charity Commission, and so
are prepared, where relevant, for fulfilling their responsibilities should The Charities (Exception from Registration) Regulations 1996, as amended by The Charities (Exception from Registration) (Amendment) Regulations 2014, not be extended beyond 31 March 2031.
The charitable company has made a conscious decision not to accept any new client churches into its trust holding. The intention this year has continued to be to encourage churches to transfer their trust holding away from FPT.
In reviewing progress in the managed decline, the Board recorded a fall in the number of client churches from 87 in 2024 to 58 at 31st October 2025. It is envisaged this will further decrease in the coming financial year.
Income from charitable activities reduced to £2k (2024: £12k) while total income increased to £2k (2024: £16k).
The decrease in charitable activities income was due to less contributions received from closed churches in respect of past legal costs and utility bills.
Expenditure on charitable activities reduced to £11K (2024: £21K). This is mainly due to fall off of legal costs now entirely attributable to the company. There were also less expenses incurred by the trustees from last year.
Overall, the company had an operating deficit of £9k (2024 £5k). Further deficits are anticipated as the company moves towards winding down its Trust holding work over the next year or two.
At the end of the year total funds were £54k (2024: £63k).
At the end of October 2025, the available unrestricted funds held as net current assets was £54k. In view of the revised Business Plan aimed at withdrawing from trust holdings within a shorter time frame than 5 years, these were felt to be sufficient, albeit the Board recognise the importance of closely monitoring this as a matter of prudence and good governance. The Board have agreed on ways to release funds into the business to bolster the cash flow position.
The major risks are around maintaining suitably skilled staff and the reduction in available unrestricted funds to cover ongoing costs.
Plans for future periods
The continuing plan for the business is to wind it down as soon as is practical. This involves all the churches we currently have a trust holding responsibility for, either setting up a CIO into which can be transferred any buildings or finding an alternative trust holding provider. This desired outcome is being actively pursued with support being given to churches who request it.
The Fellowship Property Trust (FPT) is a registered charity and trust corporation and is a company limited by guarantee, without share capital. It was incorporated in 1927 and is governed by its Articles of Association. The name of the charitable company prior to 5th December 2019 was The Fellowship of Independent Evangelical Churches Limited (FIEC Ltd). This change of name was undertaken to help avoid the ongoing confusion amongst churches that the charitable company was the same as The Fellowship of Independent Evangelical Churches.
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
The trustees of FPT are appointed by the members. The members are:
the trustees of FPT;
the trustees of FIEC.
The trustees of FIEC have voting rights of 3:1 in proportion to voting rights of trustees of FPT. None of the trustees has any beneficial interest in the charitable company. All of the trustees are members of the charitable company and guarantee to contribute £1 in the event of a winding up.
Although they are separate charities, FPT works closely with FIEC, a Charitable Incorporated Organisation, Registered in England with charity number 1168037 and in Scotland with charity number SC047080 (FIEC), whilst complying fully with GDPR legislation and working within our Privacy Statement.
The significant proportion of churches for which FPT acts as holding trustee are also affiliated to FIEC.
At 31st October 2025, two of the FPT trustees were employed by FIEC (one being the Church Relations Director of the company who is seconded by FIEC for a period of time each week to undertake the role). The charitable company is, therefore, particularly careful to ensure that the inevitable conflicts of interest and loyalty are managed well in accordance with its Articles of Association and the subordinate Conflicts of Interest and Loyalty Policy.
All funds held by the charitable company on behalf of churches are held in accordance with the objectives outlined above and in accordance with the individual church trusts.
At the end of this current financial period Trust Holding Funds held by FPT stood at £1,053k of which £308k were monies restricted for use from the grant fund.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charitable company for the year ended 31 October 2025, which are set out on pages 5 to 12.
The charitable company’s trustees, who are also the directors of The Fellowship Property Trust for the purposes of company law, are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the financial statements under section 145 of the 2011 Act;
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 386 of the Companies Act 2006; and
to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Investments
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Fellowship Property Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 41 The Point, Market Harborough, Leicestershire, LE16 7QU.
The accounts have been prepared in accordance with the charitable company'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)” (published in October 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company 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 charitable company. 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.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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 unless the funds have been designated for other purposes.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received, except when donors specify that sums given to the charitable company must be used in future accounting periods, the income is then deferred until those periods.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.
Expenditure is included in the financial statements on an accruals basis.
Charitable expenditure comprises those costs incurred by the charitable company on the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them based upon either time spent on the actual activities or usage.
Tangible fixed assets 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 bases:
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 the statement of financial activities.
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 charitable company 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 charitable company's balance sheet when the charitable company 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 charitable company’s contractual obligations expire or are discharged or cancelled.
Trustees expenses
Insurance
Professional charges
Independent examiner's fee
Office expenses
Bank charges
Bad debts
Expenses of £4,730 were reimbursed to 1 trustee (prior year £6,588 to 1 trustee) in respect of travel and meetings; none of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The trustees of the charity are appointed by the Board together with the trustees of The Fellowship of Independent Evangelical Churches. During the year, the Trust recharged various expenses to the charitable company of £18 (2024 - £211).
In addition, A. Boulter, a trustee of the charitable company charged £1,360 for property consultancy advice.
A summary of the funds and corresponding assets at cost for which the charitable company is trustee is set out below. The value of churches, manses and other properties transferred when the trust was accepted are excluded from these figures. Properties purchased from Trust funds, whilst under management, are included at cost.