The Trustees present their annual report and financial statements for the year ended 31 December 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 Company's governing document (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 charitable objects of the Company are to act as a Central Board of Trustees for The Free Church of England, otherwise called The Reformed Episcopal Church (hereinafter called 'the Church'), and to promote aid and further the objects and work of and to perform work and to transact business in connection with the Church and there has been no change in these during the year.
The aims of the charity are the advancement of the Christian Faith by supporting the Churches of the Denomination of the Free Church of England in worship and witness; by planting new Churches; and by activities supportive of these aims.
The charity is committed to advancing the faith of the Free Church of England by seeking new followers and facilitating the practice of the faith by existing followers. It also seeks to proselytise new followers sensitively and without coercion.
It does by (inter alia):-
sermons and religious seminars, talks, meetings and conferences
the encouragement and support of pastoral work;
promoting the study of religious teachings and practices and scriptures;
support of religious office holders for acting as such, including the provision of stipends and other living allowances, pensions and retirement accommodation;
the provision and maintenance of a buildings used for religious practice.
The Trustees have paid due regard to the public benefit guidance published by the Charity Commission in reviewing the charity's objectives and activities.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Services continue in all Churches of the Denomination allowing for the Christian Faith to be shared publicly in worship and witness, alongside the Occasional Offices (Baptisms, Solemnisation of Matrimony and Funerals) and ongoing Pastoral Care.
Grants are made to further the work of The Free Church of England.
The Free Church of England Central Trust maintains it commitment to pursue the charitable objectives of the institution and to work to support its sister organisation, the Free Church of England. The structure of all committee meetings keep the charitable objectives in focus so that progress and effectiveness can be monitored.
1. Property:
The property portfolio has been maintained so that it provides the best support for the charitable objectives. Properties that are no longer in use are in the process of being sold so that the assets can be realised and invested into the work of the Denomination. The priority at this time is to be able to provide suitable Parsonages for Clergy where there is currently no provision.
2. Central Board of Finance:
Having made the transition from one longstanding General Treasurer to two Treasurers during this year we have undertaken a comprehensive review of all our financial structures. We have been able to correct some instances of where funds have been applied but not drawn down from the appropriate designated funds. We have also taken steps to understand more fully the relationship between the Central Trust financial structures and the sister body, the Free Church of England. This will allow us to resume payments of dividends and grants to support the charitable objectives.
3. Training for the Ministry of the Church:
During this year some grants have been made to ministry candidates to support their theological education and ministry formation. Principally, this has been for book grants.
4. Maintenance for the Ministry:
The Denominational Stipend Scheme and the Denominational Pension scheme are fully operational.
We have continued to review the Clergy Working Agreements and keep abreast of the changes in employment law, especially as that applied to Clergy.
5. Church Planting and Evangelism:
Designated funds have been applied appropriately to Church Planting especially. New opportunities are being explored and a strategy developed.
6. Youth Education:
Central Trust is aware that this is an area of our Charitable Objectives that needs to be developed further. A review of what is currently offered is being undertaken, how that can be supported and what opportunities there might be for positive investment in this area.
Investment Performance
The investments made during the year have performed positively and the Trustees consider the investment manager's performance to be good.
The Company has operated satisfactorily during the year in the furtherance of its principal activities and a summary of those activities is set out in the Statement of Financial Activities on page 8.
There was a decrease of funds of £171,465 (2024 - £120,724 decrease).
As at 31 December 2025 the Company had reserves of £693,052 (2024 - £864,517) as detailed on the Balance Sheet on page 9.
It is the policy of the Company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
There are no restrictions on the Company's power to invest. The investment strategy is to maintain the long term purchasing power of the capital against inflation whilst achieving a balance between capital growth and income.
The investments are managed within the financial and ethical guidelines set down by the Trustees but otherwise at the discretion of the investment managers.
The Trustees have assessed the major risks to which the Company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Company is limited by guarantee and does not have a share capital. It is licensed by the Department of Industry to be registered without the addition of the word "Limited" to its name.
The Company was incorporated on 23 April 1941 under the Companies Act 1929.
The Company is a registered Charity, under the Charities Act 2011.
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:
All those elected to serve on the General Council of the Free Church of England are also appointed Trustees. Article III states that:
Convocation shall appoint at its Annual Meeting a Council of its members and delegate to such Council such administrative powers and functions as Convocation shall from time to time resolve. The Council thus appointed shall hold once until the next succeeding Annual Meeting of Convocation.
No other person or persons within the Free Church of England or external to it has the power or authority to appoint Trustees.
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.
Committees and working parties
1.1 The Executive Council may:
1.1.1 establish Committees consisting of those persons whom the Executive Council decide;
1.1.2 delegate to a Committee any of its powers; and
1.1.3 revoke a delegation at any time.
1.2 The Executive Council may establish Working Parties consisting of those persons whom the Executive Council decide. A Working Party may not take decisions on behalf of the Executive Council but may consider issues in depth with a view to making recommendations to the Executive Council.
1.3 The members of a Committee or a Working Party are to be appointed by the Executive Council but the Executive Council may give a Committee or a Working Party the right to co-opt individuals to its membership. The Executive Council is to determine the chair of each Committee or Working Party.
1.4 Each member of a Committee or Working Party (including the chair) is to hold office from the date of his appointment until the term of office for which he has been appointed expires or until he resigns or is removed by the Executive Council from the Committee or Working Party.
1.5 The Executive Council must determine the quorum for each Committee and Working Party it establishes.
1.6 The Executive Council must specify the financial limits within which any Committee may function. A Working Party can have no authority to incur expenditure.
1.7 Every Committee or Working Party must report its proceedings and decisions to the Executive Council as the Executive Council determines.
1.8 A meeting of a Committee or Working Party may be held entirely through telephone, video conferencing or other communications equipment, via a mixture of such communications equipment or with some people physically present at the meeting whilst others are present via communications equipment. If all the people participating in the meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is.
The Free Church of England Central Trust holds funds as Trustee on behalf of the Denomination and various churches within the denomination. The objects of the denomination and the various churches within are the advancement of the Christian religion by means and in accordance with the principles of The Free Church of England.
Investments at market value £971,319 (2024 - £921,556)
Cash deposits and other current assets £-535 (2024 - £42,138)
The amounts held as custodian trustee for each church/trust as at 31 December 2025 are as follows:
| 2025 | 2024 |
Emmanuel Church, Barnstable | £204,908 | £195,544 |
Crowborough Rectory | £35,758 | £34,123 |
Crowborough Church, East Sussex | £105,970 | £101,127 |
Emmanuel Church, Carshalton | £77,476 | £73,937 |
Putney | £93,326 | £89,067 |
Christchurch Exmouth Patten | £132,690 | £125,788 |
Farnham SSF | £77,006 | £73,662 |
St Georges, Blackburn | £46,616 | £44,489 |
Northern Diocese | £112,178 | £104,908 |
St Stephen's Church, Middlesbrough | £84,856 | £121,049 |
Total | £970,784 | £963,694 |
The objects of these churches and trusts are aligned and for the benefit of the Free Church of England Central Trust.
Funds held as custodian trustee are accounted for as separate funds within the charity's books and records.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Free Church of England Central Trust (the Company) for the year ended 31 December 2025.
Having satisfied myself that the financial statements of the Company are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Company’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
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 Company as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I am aware of ongoing correspondence with the Charity Commission in relation to various matters which may have occurred over recent years. As at the date of signing this report the matters remain outstanding and as such I have not noted this as a matter of material concern.
I confirm that there are 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 Free Church of England Central Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Azzurri House, Walsall Road, Aldridge WS9 0RB.
The financial statements have been prepared in accordance with the Company's governing document, 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 Company is a Public Benefit Entity as defined by FRS 102.
The 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 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 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.
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.
Cash donations are recognised on receipt. Other donations are recognised once the 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 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.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature to support them.
Grants are accounted for when the company is committed to paying them.
Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.
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.
The freehold properties purchased in 2022 and 2023 are not depreciated, on the basis of them having such a long useful life and a high residual value.
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.
A subsidiary is an entity controlled by the Company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the Company 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).
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 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 Company's balance sheet when the 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 Company’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 Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Company’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.
Incoming resources from charitable activities - contributions from churches
Interest receivable comprised £760 loan interest (2024 - £3,256) and £117 bank interest (2024 - £442).
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Company during the year.
The average monthly number of office holders receiving a stipend during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Other debtors includes a loan from the Central Trust to St Jude's Church, Walsall. No interest has been charged during the year. There are no fixed repayment terms. The balance owed to the Central Trust as at 31 December 2025 was £101,943 (2024 - £101,943). Also included in other debtors is £25,757 (2024 - £24,997) which is owed the the Central Trust by Christchurch, Broadstairs. Interest is charged at 3%. There are no fixed repayment terms.
The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
a) The Southern Diocese Stipend Fund represents funds set aside to augment stipends to clergy in the Southern Diocese.
b) The Russian Church Appeal represents funds available to assist the development of a church in St Petersburg, Russia.
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
a) The Clergy Benevolent Fund is used to assist retired clergy of The Free Church of England and their widows and to augment pension contributions on behalf of serving clergy of The Free Church of England.
b) The Somerville Bequest is used to assist the running of The Free Church of England Central Trust.
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.
There were no disclosable related party transactions during the year (2024 - none).