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2022-12-31-accounts

Charity registration number 1028947

RAINFOREST CONCERN

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

RAINFOREST CONCERN

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Pulido Cruz
M C B Syed
M Van Nieuwenhuyse
O Walley
M Gardner
N Page (Appointed 4 March 2022)
S Schutt (Appointed 4 March 2022)
Charity number 1028947
Principal address 66 Great Pulteney Street
Bath
BA2 4DL
Auditor Begbies
9 Bonhill Street
London
EC2A 4DJ
Bankers Barclays Plc
Epsom Branch
PO Box 96
82-84 High Street
Epsom
Surrey
TK19 8BH
Solicitors - Chile Philippi Prietocarrizosa Ferro DU & Uria
Av. El Golf 40
Piso 20
Santiago
Chile
Solicitors - Ecuador Bustamante Holguín
Quito
Ecuador

RAINFOREST CONCERN

CONTENTS

Page
Trustees' report 1 - 10
Independent auditor's report 12 - 14
Statement of financial activities 15 - 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 35

RAINFOREST CONCERN

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2019). Rainforest Concern is a Charity registered with the Charity Commission under Registration Number 1028947.

Trustees A Pulido Cruz
M Gardner
M C B Syed
M van Nieuwenhuyse
O Whalley
N Page (appointed 4 March 2022)
S Schutt (appointed 4 March 2022)
Advisory board Martin Gardner (RBG Edinburgh)
Dr John Hemming CMG
Professor Sir Ghillean Prance FRS VMH
Prof Antonio Lara
Andrew Mitchell
Chief executive and honorary secretary Peter J Bennett
Principal address 66 Great Pulteney Street
Bath
BA2 4DL
website:www.rainforestconcern.org
Auditor Begbies
9 Bonhill Street
London
Bankers Barclays Plc
Epsom Branch
PO Box 96
82-84 High Street
Epsom
Surrey
TK19 8BH

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Trustees and Organisational Structure

Rainforest Concern is a non-governmental, non-political, non-religious organisation constituted under a Trust Deed dated 15th November 1993. It is registered as a Charity with the Charity Commission.

The Trust Deed describes that there should not be less than three trustees, with no maximum number. New Trustees are appointed following formal interviews with the Trustees and the Honorary Secretary with the Board looking particularly for people with experience in conservation, scientific research and fund-raising initiatives.

The charity’s Honorary Secretary is responsible for the day to day operation of the charity and manages the staff of the charity on behalf of the Trustees.

The charity has its principal office in Bath and a wide range of partner organisations with whom it delivers its programme. The principal partner organisations are as detailed in the activities, achievements and performance.

General purpose and approach

Rainforest Concern was established in 1993 for the purpose of:

• Researching, monitoring and restoring ecosystems to ensure their long-term conservation. Fundamental to Rainforest Concern’s philosophy is the establishment of strong partnerships with conservation NGOs in the countries in which the charity operates. Sound local knowledge and regular communication is vital to success in the field. Over 25 years Rainforest Concern has been instrumental in helping protect over 2.2 million hectares of native forest ecosystems and the vast biodiversity they contain. It has worked with 21 partner organisations and 8 indigenous tribes in 12 different countries, Colombia, Ecuador, Brazil, Peru, Chile, Surinam, Costa Rica, Panama, Uganda, India, Sri Lanka and Romania. The Charity has over 2000 members and is a member of IUCN. The methods and activities for conservation include:

As described in the Charity's Trust Deed, Rainforest Concern is not limited to the conservation of rainforests. Its principle guiding aim is protection of natural ecosystems with their dependent biodiversity and indigenous peoples. The charity aims to conserve strategically important critically endangered ecosystems (that often include rainforest). Ecosystems by nature are not separated and include a wide range of habitats across ecological gradients - inherent in watersheds, mountains, rivers and coast for example. The charity does not aim to protect single species unless they are ‘flagship’ species that facilitate the protection of habitat. Wherever possible the charity tries to help protect, restore and research to prevent fragmentation and degradation, striving for connectivity.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Decision making and operation

Rainforest Concern has a small team with only two full time staff. A small team allows us to dedicate the majority of our income directly to projects. This had allowed the charity to support conservation of significant areas of threatened ecosystems and indigenous land. Funding decisions are made with weekly meetings and constant dialogue with particularly active board of trustees. The charity is also strongly guided by the needs of partners and their adaptive management requirements whilst addressing emerging threats including logging, land invasion, mining and climate change. The trustees advise both on strategic conservation priorities and potential donors. If needed they are provided with conservation or project briefs produced by the staff. Trustees are selected for the expertise and experience that they can bring to bear, as they follow the activities and progress of the charity. They require little induction and are encouraged to work alongside and occasionally make trips to projects for capacity building. The charity seeks out local partnership with experienced teams and groups on the ground (near or adjacent to the ecosystem). The key partnership criteria are: local experience, science-based, social inclusion and the ability to work effectively without support. Over recent years the charity is seeking partnerships to develop more social and biological science based, conservation actions in light of rapid change. Staff pay and remuneration is proportional to responsibility operating in a flexible way, encouraging autonomy. The pay of the director and office manager are benchmarked against average pay levels in other comparable organisations. Volunteers and trustees can be remunerated for travel and subsistence expenses.

Specific objectives and activities

The Charity’s objectives are to protect threatened natural habitats, the biodiversity they contain and the indigenous people who still depend on them for their survival. At present the charity has 13 conservation projects in 9 countries: Ecuador, Peru, Chile, Colombia, Brazil, Costa Rica, Belize, India and Romania. The Charity works closely with local conservation organisations in these countries to protect forests threatened natural habitats. The charity's current partners include:

ADEPT (Romania),

Carpathia Foundation (Romania),

Amazon Watch (Brazil),

Corporación Bosques de Zapallar (Chile),

Parques Para Chile (Chile),

FORECOS Foundation (Chile),

Universidad Austral de Valdivia (Chile),

DECOIN (Ecuador),

Los Cedros Reserve (Ecuador),

ANIA (Peru),

Fundacion Entropika (Colombia),

Fundacion TierrAmar (Colombia),

Fundación Gaia Amazonas (Colombia),

Gurukula Botanical Sanctuary (India),

Royal Botanic Gardens, Edinburgh (RBGE, UK)

Fundación Cuencas de Limón (Costa Rica),

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Central to Rainforest Concern’s philosophy is the establishment of strong partnerships with local small yet dynamic organisations in the countries where it operates. Such long-term partnerships have repeatedly underpinned success of projects. Likewise, the charity seeks the guidance of scientists to identify research and conservation priorities and provide in-situ training.

The Charity's conservation work falls into four categories:

Conservation is central to our operations towards the protection and management of critically important ecosystems, including forested land and natural habitat to create protected reserves integrated to needs of local people. This sometimes includes the purchase of land, usually in the name of the local NGO, Rainforest Concern or the local community. The Charity places particular emphasis on the legal recognition of indigenous territory particularly in Colombia and Brazil. Particular emphasis is placed on the creation of forest corridors that connect existing protected areas thereby reducing fragmentation. This greatly assists the effectiveness of these reserves by enabling species to move freely from one to another. Reforestation or habitat restoration of degraded ecosystems (with native local provenance species) also falls into this category. The charity recognizes forest dynamics and biodiversity may require a degree of management, especially in the absence of large animals.

Programmes for alternative income generation, health and education are developed with the local communities living near the projects. These are designed to reduce the negative human impact on forests and ecosystems arising from firewood extraction and cattle ranching for example. Examples of these projects include sustainable small-scale horticulture (for example cultivation of shade grown coffee), forest products, production of handicrafts and responsible ecotourism.

Research, including ecological and biodiversity studies are encouraged. These can focus on baseline species inventory and mapping; species taxonomy and discovery; key species ecology and conservation science. European and national scientists as well as students from national and international universities have undertaken and continue to undertake research at several of our projects. Results are presented in the annual review, scientific papers and on the charity’s website.

Campaigning is essential to give a voice to indigenous communities and scientists. The charity seeks to maximize collaboration and join forces to protect critically important ecosystems and indigenous peoples. This includes supporting advocacy champions for areas and people otherwise ignored.

Ensuring success

The principle measure of success is the protection of threatened ecosystems; gauged by the size and strategic location of ecosystems, as well as biodiversity conservation ‘value’ (such as endemism or rarity of species/ habitats). This is dependent on income raised, where donors require the charity to direct as much income as possible to tangible conservation outcomes. The charity’s short-term aim is to delimit and protect; setting up reserves with the aim of stemming fragmentation and consolidating habits as functional landscape units in close collaboration and involvement of local people and government. The long-term aim is for ecosystem conservation to be culturally absorbed into local communities and policy, working to engage schools and regional administration for example. The charity is increasingly aware of the need to monitor reserves with mapping systems and closer dialogue with local communities, whilst the effects of climate change, plant pathogen, logging and human migration are on the increase.

Competitive grant making is not especially relevant as the charity seeks out strategic local partners that are already set-up to conserve, protect and restore land for both biodiversity and people. Grants do not require high levels of stipulated compliance and reporting. However, the charity recognises that in an environment of ever more legislative change around land protection, there is a greater need to ensure more detailed reporting and published research. The charity continues to use locally paid and pro-bono lawyers of high integrity to ensure that changes around land ownership and tax, are adjusted and adhered to for land purchase and management. No conservation land was purchased during the year.

Conservation work is undertaken either directly by the charity and their associates, or by supporting students locally with grant funding channelled through local NGO. Grants paid to projects in the year totalled £185,489 and work undertaken directly £171,702 in addition to land purchases.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees have considered the Charity’s objects and activities during the year and believe that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

Voluntary help

The charity has well established volunteer programmes and benefited from numerous volunteers during the year. These include groups of gap year students as well as mature volunteers who work on projects that include tree planting, trail maintenance and data collection. The charity has not provided in the accounts for an estimate of the value given by volunteers as the work they undertake, does not fall within the SORP recommendation for the valuation of gifts in kind.

ACHIEVEMENTS AND PERFORMANCE

Ecuador

Neblina Reserve: The reserve was expanded with the purchase of 50 hectares of land with good forest cover in Oct 2022 adjacent to an area of the reserve with sightings of Andean bears. In addition to the usual camera trap research, following the sighting of an Endangered black-and-chestnut eagle pair and juvenile last year, further research into the species was begun with 2 year’s funding by the PTES. By the end of 2022, it was confirmed there was a nest within the reserve, and two more nests in nearby forest. The team at Neblina talked with communities to explain the importance of the species. They worked with both the government and local communities to create the new management plans for our SNAP areas, as well as helping nearby communities with access to water, and supporting environmental education programmes.

Llurimagua: Rainforest Concern continued to support the long running legal appeal to protect the community cloud forests of Llurimagua from the copper mining, funding more species research in the forests to be used as evidence in a constitutional challenge based on the rights of nature and the rights of people to prior and informed consent. The case saw a significant step forward in September 2022 when the endemic long-nose harlequin frog’s status was changed from Extinct to Critically Endangered.

Los Cedros Reserve: The charity renewed its financial support for 2022. The main priorities were to financially support the research station post pandemic and to continue working with communities to establish long-term protection and management. This involved securing the jobs of key local staff and maintenance of the research station, replacing some older facilities, as well as improving forest trails. As set out by the court after they ruled to ban mining, the team worked closely with the surrounding communities and the Ministry of Environment, with the input from the scientific community, to start updating the official management plan, which sets the conservation priorities and activities for the reserve. With thanks to the Planet Foundation who started funding this project in 2022, helping to support the above conservation work as well as supporting aspects of the ecotourism programme.

Los Cedros Reserve: The charity renewed its financial support for 2021. The main priorities for the reserve were to financially mitigate the worst impacts of the pandemic, and to continue to help oppose mining concessions within the reserve. This involved securing the jobs of the core local team and maintaining the research station ready for the return of visitors, as well as helping to support the ongoing legal challenges against the mining concessions. In December 2021, the Constitutional Court of Ecuador ruled in favour of Los Cedros, banning all mining within the reserve. After many years of legal challenges to the mining, this is a huge win for the reserve, and sets a legal precedent fin Ecuador for other protected forest reserves facing similar threats in Ecuador.

Chile

El Boldo: During 2022 two important scientific studies have been started in the forest corridor. The first one, a 4- year Climate Refugia Study led by Patricio Pliscoff aims to identify areas that can act as refugia from climate change for Chile's biodiversity. The study will use sensors to take measures of the forest conditions including temperature, humidity, and vegetation mapping. The second study is a camera trap study, the first one to be done in the area, which will allow researchers to collect data about the animal species living in the forest corridor. So far cameras have been able to take images of Guiña, Gato Colo-colo and Zorro Culpeo among others. Regarding the Education Programme at El Boldo Park, the new field guides and other educational materials created have connected grownups and kids alike with the fauna and flora of the park. The nursery has also developed different activities for children and neighbours allowing them to get to know endemic plant species of the forest.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Nasampulli: During 2022 basic repairs were made to the access road, mainly replacing a bridge that was severely damaged by water erosion from heavy winter rains. Trails inside the reserve were also subject to maintenance: removing dead trees that blocked the trails, extracting exotic plant species, trimming branches that block the path, repairing signs and other activities. The cabin also needed repairs as heavy snow during the winter had damaged the chimney pipe and it needed to be replaced. During the season the ranger was permanently stationed in the reserve. One student completed an internship during January. Finally, during 2022 the camera trap study was continued using 10 cameras that allow data collection from the animal species living and moving through Nasampulli. During the past two years 42 species of animals have been identified. It has been observed that the presence of red deer inside the reserve has increased.

Costa Rica

Urpiano: The 2022 nesting season was exceptionally challenging. The economic situation meant more poachers, and in contrast to the 2020 and 2021, there was little civil authority presence at the beach. However, the team patrolled 4.2 km of beach every day during the season. There were fewer turtles making nests on the beach – numbers of nests naturally vary from year to year - but the concentration of nests was significantly higher compared to other turtle nesting beaches. At Urpiano in the 2022 nesting season, 145 of 521 nests (28%) were saved. A total of 11,220 eggs were collected and protected at the nursery, and 7,043 neonates were released to the sea. 14 local people were given traineeships – involvement of the community is vital to the long-term viability of the colony. In 2022 the team also made a start on much needed infrastructure repairs.

Bosque de las Madres: A two-year project with long-term partners, Fundación Cuencas de Limón, began in 2022 to help consolidate the protection of a newly declared biological corridor running from the Cerro Chirripó, the highest peak in Costa Rica, to the Caribbean coast. The project had three main strands - an environmental education campaign, a year-long community events campaign, and the funding of rangers, air surveillance. These involved communities in activities and helped raise awareness of the importance of the watersheds and the importance of reducing illegal logging and poaching. Two full time rangers were employed to install camera traps and monitor jaguars. They also carried out foot patrols to deter illegal logging and poaching, in conjunction with several forest surveillance flights.

They were also able to complete the two year research project funded by the PTES into the presence of Andean bears in the reserve. The Andean bear was chosen as an umbrella species as they are critical to the ongoing health of the cloud forest ecosystem. 17 individual bears were identified, including four juveniles. In total, 18 different mammal species were recorded on camera traps, of which 18 are listed on the IUCN Red List. From the findings, the principal investigator concluded that the Neblina Reserve is in a good state of conservation and enabling the mobility of many species across the forest landscape - making it ‘one of the most important ecological corridors in the province’.

Colombia

Delays caused by the COVID-19 pandemic meant that the environmental education programme with Fundación TierrAmar was delayed in 2021, and activities took place during 2022. The project focused on addressing the lack of environmental education within remote schools close to forests and other fragile and vital ecosystems in Colombia. The team delivered lectures alongside practical activities (like planting medicinal gardens) to 15 schools across several different ecosystems. The project aims to not only inspire and educate the young people, but also influence the wider community, fostering greater environmental care and protection of vital ecosystems in the future.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

India

2022 was a good year for Gurukula Botanical Sanctuary. Difficulties caused by the pandemic resolved themselves. Four new ecosystem gardeners were trained, funded by Bryan Guinness Charitable Trust. The botanic garden within GBS 1 has undergone rearrangement to curate better learning on native species for visitors. Workshops and short modules were offered to a wide range of people, including forest personnel and staff of other NGOs. Several residential programmes were held for schools from the region. The Sanctuary are now on the steering committee of the national level Ecological Restoration Alliance of India and envisage more engagements and partnerships at regional and national levels. There was international media coverage through AFP and Radio France. In December of 2022 Suprabha Seshan received the prestigious Green Teacher Award from Sanctuary Nature Foundation for her contribution to nature education. At Thiriyannara Refuge, GBS II, planting of different species of highland shrubs(Osbeckia, Strobilanthes and Crotalaria), and monitoring for herbivory and other pressures continued. Several small groups visited for exotic species removal. Multiplication of high elevation species continues at an offsite nursery in the highlands, as well as at GBS 1.

Romania

Progress on Rainforest Concern / Planet Foundation grant of £153,750 to Fundatia ADEPT Transilvania for restoration of farm buildings in the Angofa Valley and of associated grasslands. In 2022, the grassland restoration work proceeded according to plan. ADEPT restored a further 8ha of abandoned haymeadow and 12 ha of pasture in Angofa. Thus, total restored under the project is 59.5ha, exceeding the target of 55h. Equally important, grassland flora diversity has increased significantly: flora species richness increased in the haymeadows by over 12%, and in pastures by a remarkable 30%. ADEPT have also had further meetings with local farmers in 2022; the farmer-friendly manual of indicator species developed under the grant is in use. Grassland conservation targets have exceeded expectations. The completion of the farmhouse restoration has unfortunately been delayed by planning approvals, but ADEPT expects to complete the farmhouse work in 2023.

More detailed information on these projects may be found on the Charity’s website: rainforestconcern.org

Dissemination

Traffic to the website remained stable in 2022. We continued to send email newsletters and those signed up to our mailing list has grown steadily.

Schools programme

An education consultant, Helen Brown, was taken on to undertake school visits in the local area, giving presentations about Rainforest Concern and the charity’s work.

FINANCIAL REVIEW

As shown in the Statement of Financial Activities, the Charity’s income for 2022 showed a decrease from the previous year to £602,225 (2021: £735,934) as a result of fewer restricted grants. Expenditure made in the direct execution of the Charity’s objectives of direct and grant funded activities increased to £398,223 (2021: £363,527) excluding land purchases and fundraising costs.

In the pursuit of its objectives, Rainforest Concern buys land for conservation of rainforests and other threatened habitats. The great majority of land is bought in the name of our partner organisations or local communities. However, in special cases the Charity buys land in its own name and therefore holds title to forested land which is included in Assets. Land purchased in the current year was £39,534 (2021: £24,336). Support costs amounted to £92,321 (2021: £91,451), and are apportioned as shown in the Statement of Financial Activities. Overall the year resulted in a surplus of £87,225 (2021: £245,612).

Strategic purchases of rainforest land require considerable time and negotiation and transactions may take up to a year before the deeds are transferred. Funds held by solicitors on behalf of the charity at the year-end awaiting the transfer of title deeds totalled a further £16,754.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Since the charity operates to achieve high conservation impact with low overhead costs, it has not expended a high percentage of resources to monitor changes in protection status of vulnerable ecosystems. Our approach has been to seek and find experienced trustworthy in-country partners with necessary ecological monitoring capacities and deep local knowledge of socio-economic conditions. However, the charity monitors carefully the expenditure and legal compliance to ensure funds are used for the conservation outcomes for which they were raised. Our trustees realise that it is incumbent upon them to look for ways to build our capacity for sciencebased monitoring and risk assessment across the gamut. Most ecosystems and rural livelihoods are being affected by climate change, and the charity is increasingly aware of the need to assess and monitor: biodiversity, flood and fire risk, change to carbon stocks, impact of human migrant, amongst others.

The Charity’s Trustees held an AGM on 9[th] December 2022.

Investment policy

The Trustees have the power to invest in such assets as they see fit. However, the charity’s current policy is to keep any surplus liquid funds in short-term deposits which can be accessed readily. The charity would like to improve its interest rate return however this has proved difficult when funds are often required at short notice.

Risk management

The major risks to which Rainforest Concern is exposed are reviewed annually and systems have been established to mitigate those risks. Whenever possible this aspect is covered by insurance. As required the charity has Employers Liability Insurance. The charity ensures all partners, volunteers and employees are aware of the UK Bribery Act of 2010 and operate in a transparent fashion. The Trustees and staff are experienced in the countries in which the charity operates, as such partnerships are forged solely with known trustworthy organisations and individuals. All employees and volunteers are thoroughly briefed before working with overseas partners, insured before travel with immunisation updates and follow UK Foreign and Commonwealth Office travel advice. Funds are only transferred through international in-country bank branches. Land purchase funds are not transferred to the local partners/NGO’s. Funds are handled by the charity’s (often long-standing) legal representatives, and only transferred at the time of purchase. Management and project funds are transferred to partners in quarterly transfers and only through international banks. UK banking is low-risk and held in several accounts.

The charity is aware of the possibility of illegal land invasion or government expropriation, and in 25 years have not suffered in this way. The charity endeavours to reduce risk to conservation areas held or supported, by maintaining long-term dialogue with partners and an awareness to governmental policy change, instability and adjustments. As referred to, the key risk reduction strategy is to ensure that local people benefit from the establishment of conservation areas (and projects) with ecosystem services and resources. This also includes land ownership with government level land title registration and national support for conservation concessions.

Reserves policy

It is the policy of the Trustees to retain reserves equivalent to approximately one year’s operating expenditure and to cover any committed grant funding for the forthcoming year. At the year end the reserves held by the charity totalled £1,990,986. Of the total reserves held £308,132 were restricted in their use and £1,682,854 are unrestricted.

Of the unrestricted funds £1,293,749 is invested in rainforest land and a further £2,097 in the charity’s functional fixed assets such as office computers and so accordingly is not available to freely spend on the charity’s day to day activities. These allocations leave £387,008 available for general charity use.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

There were no committed grants at the charity’s year end the operating expenditure in 2022 (expenditure excluding discretionary grants) totalled £329,511. The free reserves of the charity exceed this target figure and the trustees consider that the charity has sufficient reserves to be able to cover short-term income fluctuations and to carry out the plan for future action detailed in this report.

Grant making policy

The Trustees consider grant making an effective means of delivering aid using local partners. Local partners have access to facilities, expertise, staff or other resources, in the field and they may be better placed to deliver, speedily and effectively. The projects which the Charity chooses to support are recommended to us, in particular by our partner organisations.

Plans for the future

The Charity will develop and support its existing projects whilst looking for and responding to new conservation priorities and opportunities in the coming year with funding sought for these purposes. The charity’s website will be regularly updated on at least a monthly basis and with emphasis to provide an image-rich and educational website.

The Trustees are clear that short-term achievements are high and even exceptional when benchmarked against other conservation organisations of similar size. However due the rapidly developing global volatility around climate change, food supply and ecological population displacement, amongst other issues, they are also clear that the charity needs to develop a clear vision and strategy for long-term conservation outcomes, that include ensuring conservation benefits are enjoyed by local people. This requires the charity to look for additional research support, to demonstrate how ecosystem services sustain livelihoods and agriculture and wellbeing.

The Trustees are clear that short-term achievements are high and even exceptional when benchmarked against other conservation organisations of similar size. However due the rapidly developing global volatility around climate change, food supply and ecological population displacement, amongst other issues, they are also clear that the charity needs to develop a clear vision and strategy for long-term conservation outcomes, that include ensuring conservation benefits are enjoyed by local people. This requires the charity to look for additional research support, to demonstrate how ecosystem services sustain livelihoods and agriculture and wellbeing.

Fundraising

The charity does not contract with any commercial fundraising agencies. The charity is signed up to the Fundraising Regulator, the independent regulator of charitable fundraising in England, Wales and Northen Ireland. This is to ensure public trust, confidence and consistently high fundraising standards.

No complaints have been received by the charity from its fundraising.

The charity only sends fundraising material and updates on the charity’s work to individuals who have actively opted in to receive contact of this nature from the charity in order to protect the public from intrusion. We aim to protect vulnerable members of the public from persistent contact by ensuring that updates on the charity’s activities are not too frequent, and are controlled at chief executive level.

Our approach to fundraising is that we never cold call members of the public as potential donors although we do reach out to corporate entities and charitable trusts. We reach the public through the production of our Rainforest Review and aim to raise funds by valuing long term relationships with our funders.

RAINFOREST CONCERN

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Statement of trustees' responsibilities

The trustees 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).

The law applicable to charities in England and Wales 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 of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Auditor

In accordance with the company's articles, a resolution proposing that Begbies be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

.............................. N Page Trustee Dated: .........................11/10/2023

RAINFOREST CONCERN

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees 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).

The law applicable to charities in England and Wales 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 of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RAINFOREST CONCERN

Opinion

We have audited the financial statements of Rainforest Concern (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RAINFOREST CONCERN

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

– Agreement of the financial statement disclosures to underlying supporting documentation to assess compliance with those laws and regulations having an impact on the financial statements and disclosure requirements. In particular, Accounting and Reporting by Charities: Statement of Recommended Practice;

– Enquiries and confirmation of management and the trustees as to their identification of any non-compliance with laws or regulations, or any actual or potential claims;

– Review of minutes of the Board meeting during the period;

– incorporating unpredictability into the nature, timing and/or extent of testing.

– Evaluation of the selection and application of the accounting policies chosen by the charity.

– In relation to the risk of management override of internal controls, by undertaking procedures to review journal entries and evaluating whether there was evidence of bias that represented a risk of material misstatement due to fraud; and

– We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

RAINFOREST CONCERN

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RAINFOREST CONCERN

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...16/10/2023.... Begbies Chartered Accountants 9 Bonhill Street Statutory Auditor London EC2A 4DJ

Begbies is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

RAINFOREST CONCERN

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Current financial year
Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
2
252,247
349,496
Investments - interest
482
-
Total income
252,729
349,496
Expenditure on:
Raising funds
4
116,777
-
Charitable activities
Conservation
5
82,582
315,641
Total charitable expenditure
82,582
315,641
Total expenditure
199,359
315,641
Net incoming resources before transfers
53,370
33,855
Gross transfers between funds
39,534
(39,534)
Net income/(expenditure) for the year/
Net movement in funds
92,904
(5,679)
Fund balances at 1 January 2022
1,589,949
313,811
Fund balances at 31 December 2022
1,682,854
308,132		 Total
2022
£
601,743
482
602,225
116,777
398,223
398,223
515,000
87,225
-
87,225
1,903,760
1,990,986		 Total
2021
£
735,922
12
735,934
126,795
363,527
363,527
490,322
245,612
-
245,612
1,658,148
1,903,760

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

All income and expenditure derive from continuing activities.

RAINFOREST CONCERN

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Prior financial year

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
2
185,022
550,900
Investments - interest
12
-
Total income
185,034
550,900
Expenditure on:
Raising funds
4
122,175
4,620
Charitable activities
Conservation
5
74,825
288,702
Total charitable expenditure
74,825
288,702
Total expenditure
197,000
293,322
Net incoming resources before transfers
(11,966)
257,578
Gross transfers between funds
24,336
(24,336)
Net movement in funds
12,370
233,242
Fund balances at 1 January 2021
1,577,579
80,569
Fund balances at 31 December 2021
1,589,949
313,811		 Total
2021
£
735,922
12
735,934
126,795
363,527
363,527
490,322
245,612
-
245,612
1,658,148
1,903,760

RAINFOREST CONCERN

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
Fixed assets
Tangible assets
12
Land for conservation
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
18
Unrestricted funds
Designated funds
17
General unrestricted funds		 2022
£
£
2,097
1,293,749
1,295,846
48,901
658,972
707,873
(12,733)
695,140
1,990,986
308,132
1,295,846
387,008
1,682,854
1,990,986		 2021
£
£
299
1,254,215
1,254,514
59,953
612,436
672,389
(23,143)
649,246
1,903,760
313,811
1,254,514
335,435
1,589,949
1,903,760		 2021
£
£
299
1,254,215
1,254,514
59,953
612,436
672,389
(23,143)
649,246
1,903,760
313,811
1,254,514
335,435
1,589,949
1,903,760
1,254,514
649,246
1,903,760
313,811
1,589,949
1,903,760

11/10/2023 The accounts were approved by the Trustees on .........................

.............................. N Page Trustee

RAINFOREST CONCERN

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash generated from operations
23
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Purchase of land for conservation
Interest received
Net cash used in investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
(2,847)
-
(39,534)
482		 £
88,434
(41,899)
46,535
612,436
658,972		 2021
£
-
1,347
(24,336)
12		 £
212,164
(22,977)
189,187
423,248
612,436

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

Rainforest Concern is an unincorporated organisation constituted under a Trust Deed dated 15th November 1993. It is registered as a Charity with the Charity Commission.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's trust deed, the Charities Act 2011 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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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.

1.2 Going concern

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.

1.3 Charitable funds

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 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.

1.4 Incoming resources

Income is recognised when the charity 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.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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.

1.5 Resources expended

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.

Fundraising costs include those costs incurred in raising the profile of the charity and its work, and other expenses incurred in obtaining funding.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

The charity has only one charitable activity which is conservation.

Direct project costs includes payments to maintain and preserve the charity's own conservation land, undertake other conservation activities and the costs visiting the charity's own and grant projects. Costs are recognised when incurred by the charity. Where costs, such as salaries, are incurred in part for direct activities and in part for support activities an estimate is made of time spent on each activity.

Grants to partner projects are recorded when the partner is informed that they will be receiving funding without further approval processes.

Governance costs are the costs associated with the governance arrangements of the charity.

Support costs are the general costs incurred in support of meeting the charity's objectives, fundraising and in monitoring and awarding grants. Support costs are allocated in proportion to office-based staff salaries for each activity.

All cost include any irrecoverable VAT.

1.6 Tangible fixed assets

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:

Fixtures, fittings & equipment 20% straight line Computers 33% reducing balance

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.

1.7 Land for conservation

Land for conservation is land acquired by the charity and is recognised at cost. The freehold land has not been depreciated as allowed by the SORP for assets with indefinite lives. The assets are reviewed annually for impairment

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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).

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.10 Financial instruments

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

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. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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.

Derecognition of financial liabilities

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

1.11 Employee benefits

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.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
218,537
349,496
Legacies receivable
33,710
-
252,247
349,496		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
568,033
182,909
525,900
33,710
2,113
25,000
601,743
185,022
550,900		 Total
2021
£
708,809
27,113
735,922

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

3 Critical accounting estimates and judgements

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.

Critical judgements

Carrying value of land for conservation

In accordance with FRS 102 the land for conservation is recorded at cost. The charity has not opted for a policy of revaluation with regards to the conservation land owned, but does review for impairment annually. Given the inherent difficulties in valuing such land, and so ensuring the land is not impaired, a level of judgement is required. In considering whether there has been an impairment the physical condition of the land is considered in addition to the continuing legal rights of ownership.

4 Raising funds

Unrestricted
Restricted
funds
funds
£
£
Fundraising and publicity
Seeking donations, grants and legacies - share
of governance costs
4,333
-
Fundraising and donor events
1,980
-
Fundraising agents
17,390
-
Advertising, website and newsletter
3,166
-
Staff costs
42,952
-
Support costs
46,956
-
116,777
-
For the year ended 31 December 2021
Fundraising and publicity
122,175
4,620
122,175
4,620		 Total
2022
£
4,333
1,980
17,390
3,166
42,952
51,289
116,777		 Total
2021
£
4,333
9,675
18,712
4,877
42,725
50,806
126,795
126,795
126,795

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

5 Charitable activities

Conservation
Activities undertaken directly
Staff costs
Consultants and freelance fees
Urpiano turtle protection - Costa Rica
Neblina Reserve Ecuador - management and
support
Nasampulli Reserve Chile - management and
support
Grant funding of activities (see note 7)
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 31 December 2021
Unrestricted funds
Restricted funds		 Total
2022
£
34,362
20,831
15,843
74,417
26,249
171,702
185,489
37,565
3,467
398,223
82,582
315,641
398,223		 Total
2021
£
34,180
10,692
17,358
57,149
21,008
140,387
182,495
37,178
3,467
363,527
74,825
288,702
363,527

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5
Charitable activities
Expenditure by activity
Direct conservation costs
Neblina Reserve Ecuador - management and
support
Nasampulli Reserve Chile - management and
support
Grants to projects and partners
Direct conservation costs
Neblina Reserve Ecuador - management and
support
Nasampulli Reserve Chile - management and
support
Grants to projects and partners		 Direct
£
71,036
74,417
26,249
185,489
357,191
Direct
£
62,230
57,149
21,008
182,495
322,882		 (Continued)
Support
costs
Total
2022
£
£
8,160
79,196
8,549
82,966
3,015
29,264
21,308
206,797
41,032
398,223
Support
costs
Total
2021
£
£
7,834
70,064
7,194
64,343
2,645
23,653
22,973
205,468
40,645
363,527		 (Continued)
Support
costs
Total
2022
£
£
8,160
79,196
8,549
82,966
3,015
29,264
21,308
206,797
41,032
398,223
Support
costs
Total
2021
£
£
7,834
70,064
7,194
64,343
2,645
23,653
22,973
205,468
40,645
363,527
398,223
Total
2021
£
70,064
64,343
23,653
205,468
363,527

Further details of projects by geographical area are contained in the Trustees' Report and note 18.

Support costs are allocated in proportion to expenditure on charitable activities.

6 Conservation

Conservation

Grant giving

The charity achieves its objects by awarding grants to partner projects to protect the rainforest and its inhabitants and purchase land for conservation purposes. Grants for conservation purposes and research are identified as grants in these accounts, regardless of whether the activity takes place on the charity's or third party land.

Activities undertaken directly by the charity

Where suitable partners cannot be found for land purchase the charity may purchase this in its own name. Costs for the maintenance and protection of this land along with monitoring this, and all partner projects, are recorded under activities undertaken directly, except when paid as grants to partners.

The allocations have been revised in these accounts to identify activities on the Chile and Ecuadorian reserves.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Grants payable

Grants payable
Munnarakkunnu Trust - India
The Heart of Belize & Selvana - Belize
Los Cedros - Ecuador
Fundation Entropika - Colombia
Decoin - Ecuador
Fundatia Adept - Romania
Fundacion Tierramar - Columbia
Corporación Bosques de Zapallar - Chile
Indigenous Peoples Cultural Support Trust - Brazil
Foundation Conservation Carpathia - Romania
Fundacion Cuencas de Limon - Costa Rica
Other - below £2,000		 2022
£
9,100
15,490
33,440
-
7,008
45,215
1,000
8,631
-
-
65,605
-
185,489		 2021
£
4,576
28,454
15,050
5,118
13,854
87,457
7,179
-
10,400
8,700
-
1,707
182,495

Conservation

The charity carries out its charitable objects through grants to third parties, its own research and conservation activities and by land purchases. Accordingly the level of each type of activity varies across years. During the year the charity had acquired title to land for conservation to the value of £39,534 (2021: £24,336) in addition to making the above payments for grants, and maintenance and research costs detailed in note 5.

The purchase of land for conservation is shown in the accounts as an addition to land for conservation assets, and funds held by third parties for future purchases are shown in other debtors. The cumulative total of land for conservation purchases and grants in 2022 was £225,023 (2021: £241,595).

Commitments

No grants included in the above figures were unpaid at the current or prior balance sheet date, subject to conditions yet to be met by the recipient.

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration from the charity during the year (2021:£0). No trustees visited the charity's projects and had their flights and other expenses paid by the charity in the current or previous year (one trustee visited the El Boldo Reserve and La Judea project in Chile with no travel recharged to the Charity). No trustee claimed general travel expenses during the current or previous year. For other related party transactions please see note 21.

9 Taxation

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.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10
Support costs
Support costs
Governance
costs
£
£
Staff costs
33,134
-
Depreciation
1,049
-
Consultancy, legal and professional fees
7,238
-
Rent, rates, utilities and service charges
21,192
-
General expenses
20,378
-
Bank charges and fees
1,530
-
Audit fees
-
7,800
84,521
7,800
Analysed between
Fundraising
46,956
4,333
Charitable activities
37,565
3,467
84,521
7,800		 2022
£
33,134
1,049
7,238
21,192
20,378
1,530
7,800
92,321
51,289
41,032
92,321		 2021
£
34,549
599
10,248
21,038
15,487
1,730
7,800
91,451
50,806
40,645
91,451

Governance costs includes accrued and paid fees to the auditors of £6,500 excluding VAT (2021- £6,500 excluding VAT) for audit, bookkeeping and gift aid return fee.

Support costs have been allocated according to office-based staff wages.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

11 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or more,
not including employer's pension contributions, were:
£70,001-£80,000		 2022
Number
2
2022
£
101,156
7,374
1,918
110,448
2022
Number
1		 2021
Number
2
2021
£
102,045
7,600
1,809
111,454
2021
Number
1

Employers' pension contributions of £1,321 were made in total for the higher paid employee (2021: £1,319).

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12
Tangible fixed assets
Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021		 Fixtures,
fittings &
equipment
£
12,921
-
12,921
12,921
-
12,921
-
-		 Computers
£
1,006
2,847
3,853
707
1,049
1,756
2,097
299		 Total
£
13,927
2,847
16,774
13,628
1,049
14,677
2,097
299
13 Land for Conservation
Land for
conservation
£
At 1 January 2022 1,254,215
Purchases of land for conservation 39,534
At 31 December 2022 1,293,749

Land for conservation assets are areas of rainforest land owned across Ecuador and Chile. The charity purchases areas of conservation land in its own name when it is not possible for land to be held by local partners. The land is held is support of Rainforest Concern's charitable objects and the charity works with local groups in its maintenance and protection.

Five year purchase summary of conservation land

2022 2021 2020 2019 2018
£ £ £ £ £
Purchases 39,534 24,336 - 126,017 141,336

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

14 Debtors

Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2022
£
45,417
3,484
48,901		 2021
£
58,207
1,746
59,953

Other debtors includes £16,754 (2021: £20,979) held by third parties for land purchases spanning the year end. No legal commitments were outstanding at either year end in respect of these transactions.

15 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
3,182
710
8,841
12,733		 2021
£
5,876
2,462
14,805
23,143

16 Retirement benefit schemes

Defined contribution schemes

The charity operates defined contribution pension schemes for all qualifying employees under the automatic enrolment rules. The assets of the scheme are held separately from those of the charity in independently administered funds.

The charge to profit or loss in respect of defined contribution schemes was £1,918 (2021 - £1,809).

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

17 Designated funds

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:

Balance at
1 January 2021
£
Funds represented by land and other fixed assets
1,232,124
1,232,124		 Resources
expended
£
(1,946)
(1,946)		 Transfers
Balance at
1 January 2022
£
£
24,336
1,254,514
24,336
1,254,514		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2022
£
£
£
£
2,847
(1,049)
39,534
1,295,846
2,847
(1,049)
39,534
1,295,846		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2022
£
£
£
£
2,847
(1,049)
39,534
1,295,846
2,847
(1,049)
39,534
1,295,846
1,295,846

The funds designated represent that part of the unrestricted reserve which could not readily be used for ongoing expenditure.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January
2021
r
£
Ecuador Fund
5,000
Chile Fund
25,000
Carbon Forest Credits
-
India Fund
936
Costa Rica
-
Belize Fund
18,082
Rainforest Concern General Fund
24,344
Romania Fund
-
Brazil Fund
-
Colombia Fund
2,587
Fundraising salary
4,620
Covid Appeal
-
80,569		 Movement in funds 2021
Incoming
esources
Resources
expended
Transfers
Balance at
1 January
2022
r
£
£
£
£
220,598
(95,358)
(24,336)
105,904
-
(23,614)
23,614
25,000
489
(489)
-
-
3,000
(4,576)
640
-
25,000
(17,358)
-
7,642
49,875
(28,454)
-
39,503
115,047
-
(49,763)
89,628
133,591
(96,157)
8,700
46,134
-
(8,600)
8,600
-
1,500
(12,296)
8,209
-
-
(4,620)
-
-
1,800
(1,800)
-
-
550,900
(293,322)
(24,336)
313,811		 Movement in funds 2022
Incoming
esources
Resources
expended
Transfers
Balance at
31 December
2022
£
£
£
£
110,114
(124,330)
(39,534)
52,154
20,000
(39,058)
19,058
25,000
569
-
-
569
9,430
(9,100)
-
330
69,119
(81,448)
4,687
-
-
(15,490)
-
24,013
140,264
-
(24,745)
205,147
-
(45,215)
-
919
-
-
-
-
-
(1,000)
1,000
-
-
-
-
-
-
-
-
-
349,496
(315,641)
(39,534)
308,132		 Movement in funds 2022
Incoming
esources
Resources
expended
Transfers
Balance at
31 December
2022
£
£
£
£
110,114
(124,330)
(39,534)
52,154
20,000
(39,058)
19,058
25,000
569
-
-
569
9,430
(9,100)
-
330
69,119
(81,448)
4,687
-
-
(15,490)
-
24,013
140,264
-
(24,745)
205,147
-
(45,215)
-
919
-
-
-
-
-
(1,000)
1,000
-
-
-
-
-
-
-
-
-
349,496
(315,641)
(39,534)
308,132
308,132

Ecuador Fund To fund three partner projects and land purchase across Ecuador Chile Fund To fund three partner projects and land purchase in Chile Carbon Forest Credits A carbon offsetting scheme for use with specified carbon offset approved programmes

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 Restricted funds

(Continued)

India Fund To fund a single project in India Costa Rica Fund To fund a single project in Costa Rica Belize Fund To fund a single project in Belize Rainforest Concern General Fund To fund rainforest conservation work undertaken by the charity from Sponsor an Acre funds Romania Fund To fund a single project in Romania Brazil Fund To fund a single project in Brazil Colombia Fund To fund a single project in Colombia Fundraising Salary To fund the cost of employing a fundraiser Covid Appeal To help indigenous groups in Colombia and Brazil

Further details of all the projects are contained in the trustees report. Transfers between funds represent land purchases from restricted income or re-allocation of Sponsor an Acre funds which can be used for different geographical areas.

19 Analysis of net assets between funds

Unrestricted
reserves
Designated
reserves
Restricted
reserves
2022
2022
2022
£
£
£
Fund balances at 31 December 2022 are
represented by:
Tangible assets
-
2,097
-
Land for conservation
-
1,293,749
-
Current assets/(liabilities)
387,008
-
308,132
387,008
1,295,846
308,132		 Total
Unrestricted
reserves
Designated
reserves
2022
2021
2021
£
£
£
2,097
-
299
1,293,749
-
1,254,215
695,140
330,435
-
1,990,986
330,435
1,254,514		 Restricted
reserves
2021
£
-
-
318,811
318,811		 Total
2021
£
299
1,254,215
649,246
1,903,760

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 Operating lease commitments

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

2022 2021
£ £
Within one year 3,100 3,100

21 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation including employer's national insurance and pension 85,905 85,451

Transactions with related parties

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

At the year end key management personnel had received a salary advance of £2,982 (2021: £2,059) which was repaid after the balance sheet date. During the 2021 year a staff loan was made for £25,000 which is being repaid in monthly instalments and carries an interest rate of 2%. The balance at the year end stood at £17,340 (2021: £22,050).

The donations for the year include £125,991 (2021: £250,605 ) from the Swiss Planet Foundation, an organisation of whose board the Chief Executive of Rainforest Concern is a president. The grants are given for specific projects, with £62,872 in Ecuador and £63,119 for activities and grants in Chile (2021: £133,591 for activities and grants in Romania and £117,014 for activities and grants in Ecuador).

The Swiss Planet Foundation also transferred £56,773 for onward payment to the Lord Leycester Hospital for their conservation project. In accordance with the SORP, this payment is not shown as income of Rainforest Concern, and the entire grant was passed to its intended recipient by the balance sheet date.

RAINFOREST CONCERN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

21 Related party transactions

(Continued)

Nat Page, a trustee of Rainforest Concern, is also president of Fundatia Adept, a project partner in Romania. During the year £45,215 was paid to Fundatia Adept.

Total unrestricted donations from trustees and their connected parties were in aggregate £75,621 (2021: £43,400 ).

During the year under review, no trustee received payment or remuneration from the charity (2021: none).

22 Analysis of changes in net funds

The charity had no debt during the year.

23
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2022
£
87,225
(482)
1,049
11,052
(10,410)
88,434		 2021
£
245,612
(12)
599
(40,735)
6,700
212,164