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 Charity's trust deed, 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 objects are promoting, within the province of Warwickshire, and support of the Masonic charities. Following a reorganisation and the approval of the Charity Commission on 11 November 2024 the assets and liabilities of this charity were transferred to a separate charity, the Warwickshire Freemasons' Charitable Foundation, on 15 January 2025. Once the formalities of the transfer are complete, this charity will be closed.
The Charity's main method of raising funds was by encouraging Freemasons to support our work particularly by the use of Gift Aid. The Charity has been the grateful recipient of numerous donations and bequests over the years.
The Charity was the holding company for the Provincial charitable funds which are incorporated into these financial statements.
As the Charity is incorporated, it acted as a nominee investment holder on behalf of the Warwickshire Masonic Benevolent Fund ("the WMBF"). The WMBF is a connected charity, having a number of common trustees, albeit unincorporated and having its own separate registration with the Charities Commission.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
The WMCA made donations to a wide range of Masonic and Non-Masonic charities, both nationally and locally, therefore the WMCA's activities are considered to have far reaching benefits to society as a whole. The Charity aims - through its grant making policy - to give grants to help as many worthy causes as possible.
On receipt of a request for a grant, the policy is for the Provincial Charity Steward to appraise the substance and suitability of the application, and the nature of the applicant before submitting his proposal to the "Grants" sub-committee for final approval. All decisions regarding Grants are made having in mind the Charity Commission guidance on public benefit.
Following the transfer of the assets and liabilities to the new charity, this charity ceased to undertake charitable activities directly but they continued within the new charity.
The Statement of Financial Activities shows incoming resources in the year of £nil (2024 - £325,793). The main recurring income source of the Charity is from investment income which amounted to £nil for the year (2024 - £287,534).
The Statement of Financial Activities reflects market value of listed investments had risen by £nil (2024 - £352,997) during the year. This resulted in a surplus in the net movement in funds for the year, before the transfer, of £nil (2024 - £331,991).
Non-Masonic Charities
The grants to Non-Masonic charities made during the year amounted to £nil (2024 - £195,060).
Reserves policy
It was the intention of the trustees, working with the investment advisors, to maintain the capital of the investments with growth at CPI plus 3%.
Grants were paid out based on income that can be drawn out of the investments, whilst maintaining the principle above.
A small reserve was then maintained to deal with any urgent grants that the trustees consider it appropriate to make.
Following the transfer of assets, no reserves are now held by the charity.
Application of Trustees' investment powers
Under the Memorandum and Articles of Association the Charity's Trustees have wide ranging powers.
Investment policy
All investment holdings were managed strictly in accordance with provisions of the Trustee Act 2000 under professional advice from the Charity's stockbrokers, Evelyn Partners. The charity operated an Investment Sub-Committee and held meetings four times a year at which members of Evelyn Partners were invited to discuss the performance of the portfolio.
The Investment Criteria was between income and long term growth, with an annual income target of £250,000.
Risk policy
The Trustees have examined the major strategies and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks.
Following the approval of the Charity Commission, a new charity, the Warwickshire Freemasons' Charitable Foundation has been formed to adopt the responsibilities of the Warwickshire Masonic Benevolent Fund and of the Warwickshire Masonic Charitable Association Limited. The Charity Commission approved the transfer of the assets and liabilities on the 11 November 2024 and the transfer has happened following the year end on 15 January 2025.
The directors, being Trustees of the Charity, are named on the legal and administrative information.
The Trustees when complete consist of at least eight and no more than twenty-three persons, elected at the Annual General Meeting.
The Trustees, who are considered to be the key management of the Charity, received no remuneration for their services.
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.
Appointment, induction and training of new Trustees
All Trustees are appointed from the senior ranks of Freemasons in Warwickshire, consideration having been given to their known assiduity and business-like approach to Masonic charitable matters; their induction, training and experience having been gained, for the most part, by charitable activities in their individual Masonic Lodges.
Organisation
The Charity is organised so that the Trustees meet at least twice a year to oversee the management of its affairs. Some detailed activities are delegated to sub-committees, e.g. the Investment Sub-Committee and the Non-Masonic Grants Sub-Committee. The Non-Masonic Grants Sub-Committee considers requests for assistance following pre-determined criteria agreed by the Board of Trustees.
The administration of the Charity is carried out by the Charity Office and is made up of three people, one of whom is a paid employee, under the direction of the Provincial Almoner. Remuneration is set at what management believe to be the market rates for the employee's role. Fundraising is co-ordinated by the Provincial Charity Steward who is supported by the individual Masonic Lodge Charity Stewards.
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 Warwickshire Masonic Charitable Association Limited(The) for the year ended 31 December 2025, which comprise the statement of financial activities, the summary income and expenditure account and the related notes from the charity’s accounting records and from information and explanations you have given us.
This report is made to the charity's Trustees, as a body, in accordance with the terms of our engagement letter dated 3 April 2025. Our work has been undertaken solely to prepare for your approval the financial statements of Warwickshire Masonic Charitable Association Limited(The) 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 Warwickshire Masonic Charitable Association Limited(The) and the charity's Trustees as a body, for our work or for this report.
It is your duty to ensure that Warwickshire Masonic Charitable Association Limited(The) 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 deficit of Warwickshire Masonic Charitable Association Limited(The). You consider that Warwickshire Masonic Charitable Association Limited(The) 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 Warwickshire Masonic Charitable Association Limited(The). 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Warwickshire Masonic Charitable Association Limited is a charity registered in England and Wales, Charity No. 211588. It is a private company limited by guarantee incorporated, registered and domiciled in England and Wales Company No. 402213. The registered office is: Yenton Assembly Rooms, 73 Gravelly Hill North, Erdington, Birmingham, B23 6BJ.
The charity was constituted as a Company limited by guarantee on 18 December 1945 and is, therefore, governed by a Memorandum and Articles of Association.
The charity's objects and principal activities continue to be those of promoting, within the Masonic province of Warwickshire, support of the Masonic charities. The Charity also supports non-masonic charities as far as funds allow.
The financial statements have been prepared in accordance with the Charity's trust deed, 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. The principal accounting policies adopted are set out below.
As noted in the trustees' report the activities of this charity have now ceased and the trustees anticipate winding up the charity as soon as practicable.
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.
Permanent endowments are made up of donated funds where the donor has stipulated that the capital must be maintained. Currently there are only permanent endowments where the income generated must be applied for specific purposes.
Expendable endowments consist of funds that carry no restrictions as regard maintaining the initial capital but which the trustees have chosen to invest in order to provide the Charity with future income, to be distributed either in accordance with the restrictions relating to each of the funds or, in the case of the D B Hillyard Fund at the discretion of the trustees. It is the Charity's policy to invest large bequests.
Donations are included in the accounts on receipt, that is usually in the form of Gift Aid, and the associated Income Tax recoverable is included when received. Owing to the nature of the income, the receipt of donations is considered to be the point at which the income becomes receivable; up until this point there is uncertainty surrounding the timing and value of the cashflow, meaning that it is not appropriate to recognise the donation.
Legacies are included in the accounts when written notification has been received and the probate value and legal nature of the bequest determined.
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.
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.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
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).
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.
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.
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
Governance costs includes payments to the auditors of £nil (2024 - £9,600) for audit fees.
During the year, the charity relied on the unpaid services of the Secretary and members of the Management Committee to carry out its administrative functions. No paid employees were engaged in an administrative capacity during the year (2024 - one employee). Relevant salary and associated costs were recharged by the Provincial Grand Lodge of Warwickshire (PGL) in 2024.
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Investment property comprised 3 properties as follows:
Reading Court, Tiddington, Warwickshire
Shop premises, Warwick Road, Greet, Birmingham
Millfield Court, Henley in Arden, Warwickshire
In order to determine the open market value of the investment properties, the directors engaged Simon T. Lee, CBE, FRICS, FRVA of Shaw, Gilbert & Frogatt (Chartered Surveyors) to carry out a valuation in March 2021. Simon was not an employee of the charity. Following his retirement, the property management has been passed to Cottons, Chartered Surveyors, based in Birmingham.
As part of its charitable objects, the land at Reading Court was leased to Masonic Housing Association on a long lease at a peppercorn rent.
Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
Permanent endowments
FV Weller, MBE Fund: Vernon Weller was a member of George Beech Lodge No. 2897 who died in 1995, leaving funds of £78,132 in the care of WMCA. The income is to be applied to the Warwickshire Masonic Benevolent Fund.
Warwickshire Subscription Fund: The £5,000 capital must be maintained. The income is to be applied to the subscriptions of Masons in temporary distress, who would otherwise be lost to Freemasonry.
R M London Members' Subscription Fund: The £8,400 capital must be maintained. At the discretion of the Trustees the income may be applied to the subscriptions of Masons in distress, not covered by the Warwickshire Subscription Fund.
Expendable endowments
The Chapman Fund: Norman Chapman was a member of Fidelity Lodge No 3708. His widow Jean died in 2016, leaving funds of £1,343,353 for the general use of WMCA.
Archie Hatton Fund: Archie Hatton was a member of Earl Leofric Lodge No 6081. His widow Gretta died in 1993, leaving funds of £231,588 to the Lodge, invested in a Relief Chest. The Lodge surrendered its warrant in 2012, and funds of £230,000 were transferred for the general use of WMCA.
Douglas Hillyard Fund: Douglas Hillyard, a member of David Garrick Lodge No 4243 and a widower, died in 1991, leaving funds of £1,350,000 for the general use of WMCA.
K & M Woodthorpe Trust: Ken Woodthorpe, a member of Chevron Lodge No 6021 and a widower died in 1994, leaving funds of £123,460. The income was to be used for charitable purposes as agreed between the WMCA and the Almoner of Chevron Lodge. Following the closure of that lodge, the funds are available for the general use of the WMCA.
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 R West Fund: Funds received in 2022 from the estate of Anthony West of Guys Cliffe Lodge No. 8874 are to be held on behalf of the Lodge for the benefit of charities nominated by the Lodge.
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 charity paid rent and service charges, to include utilities, at an agreed rate to the Provincial Grand Lodge of Warwickshire. These charges are shared equally with Warwickshire Masonic Benevolent Fund and for the year under review the charity's share of these costs amounted to £nil (2024 - £12,338).
Following the approval of the Charity Commission, a new charity, the Warwickshire Freemasons' Charitable Foundation was formed to adopt the responsibilities of the Warwickshire Masonic Benevolent Fund and of the Warwickshire Masonic Charitable Association Limited. The Charity Commission approved the transfer of the assets and liabilities on the 11 November 2024 and the transfer happened on 15 January 2025.
As stated in the Trustees' Report, because of its incorporated status, the Charity acted as the nominee investment holder for Warwickshire Masonic Benevolent Fund (an unincorporated, registered charity) whose investments at market value total £nil at the year end (2024 - £4,909,929).
Both Charities are subject to the control of several of the same Trustees, but are operated as separate distinct Charities having different constitutions and regulations with the Charity Commission.