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2021-12-31-accounts

COMPANY REGISTRATION NUMBER: 02977740 CHARITY REGISTRATION NUMBER: 1042046

Demos

Company Limited by Guarantee

Financial Statements

31 December 2021

BURGESS HODGSON LLP

Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN

Demos

Company Limited by Guarantee

Financial Statements

Year ended 31 December 2021

Page
Trustees' annual report (incorporating the director's report) 1
Independent auditor's report to the members 12
Consolidated statement of financial activities (including income
and expenditure account) 16
Consolidated statement of financial position 17
Company statement of financial position 17
Consolidated statement of cash flows 19
Notes to the financial statements 20

Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 December 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2021.

Reference and administrative details

Registered charity name Demos
Charity registration number 1042046
Company registration number 02977740
Principal office and registered 15 Whitehall
office London
SW1A 2DD
England
The trustees
M A Aziz
Dr A Buonfino (Resigned 2 November 2021)
I Corfield
T McAuliffe
Dame J Mellor (Chair)
M W A Nixon (Resigned 2 November 2021)
J P Wise
Baroness S J Finn (Resigned 15 February 2021)
M A Boo (Appointed 7 July 2021)
A W K Dawson (Appointed 7 July 2021)
D C Robb (Appointed 7 July 2021)
(Appointed 7 July 2021, resigned
A K Mukwashi 12 May 2022)
Company secretary Polly Curtis
Auditor Burgess Hodgson LLP
Chartered accountants & statutory auditor
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Chair’s report

Demos went from strength to strength in 2021, despite the continuing fall out from the pandemic, economic uncertainty and political instability. Over the course of the year we continued to secure new work, driving strong revenues and improving our internal processes to service all our contracted research work.

Our healthy revenues, along with the comfort of a significant reserve, meant we could take the time to really explore the purpose of our organisation, both through a thorough board-led strategic review and by developing the intellectual framework of our organisation. Our outgoing Chief Executive Polly Mackenzie leaves us with an important legacy in her “Making Democracy Work” series, which sets out the foundations of our thinking for years to come.

Our board renewed in 2021 with three new board members, bringing a fresh range of skills. A review of board effectiveness identified the need to familiarise the wider organisation with the work of the board better. This resulted in a range of initiatives, including increasing team invites to trustee meetings and more facetime with trustees generally.

It is a significant turnaround in the four years that I have been chair of Demos, and is a strong platform for the new chief executive to pick up to further our mission. The new chief executive is mandated to diversify our funding, so we can increase our impact in the areas that we have identified as core: Advocating for more humble policy-making, involving the public in decision-making and creating more relational approach to public services. Our work on digital democracy cuts across all these themes and is central to the Demos vision for a more collaborative democracy.

In 2022 we will continue to drive strong revenues, while seeking to diversify our funding to double down even more of what makes us Demos. There are risks associated with a significant change in leadership. We will, for example, rephase our plans for growth particularly around our participation tech offering. I am confident that we can continue to deliver against our charitable aims to promote education and research for the public benefit in issues of politics, economics, and public policy - and increase our impact. With careful collaboration between the board, the new chief executive and the team, I feel confident we can make the transition while still pursuing a stronger, more impactful Demos by the end of 2022.

Structure, governance and management

Organisational structure and quality assurance

The principal activities of research, education and publication, to the public benefit, are reflected in the organisational structure of the charity. The overall management of Demos is the responsibility of the Chief Executive who provides leadership to the organisation and specifically leads the development of the intellectual and research agenda of the charity. Reporting to the Chief Executive are the Research Director, Chief Technology Officer, External Affairs Director, Director of CASM and the Director of Operations.

Research projects are managed by senior staff; a team of researchers undertakes research projects, supported by temporary assistants and interns, while the external affairs team manages the programme of events. Freelance and sub-contracted collaborations are entered into to fulfil technical and consultancy roles, as well as helping with particular aspects of research, writing and the production of publications. All projects have a budgetary review before contracts with funders are signed, and are subject to an extensive quality review process from initiation through to publishing the final report. All staff are encouraged to contribute to any appropriate aspects of research, administration, the achievement of the charitable objects and the planning processes.

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Objectives and activities

Activities and review

In 2021, Demos set out its core purpose and strategy, to help build a collaborative democracy in the United Kingdom by improving the way policy is made and politics is run. Over the course of the year Demos renewed its trustees, with a series of appointments to the board. The board then led a strategic review process to confirm the long term approach the charity will take, and the unique role it wants to play in our national life.

The charity continued to secure healthy revenues despite the challenging economic situation; with healthy reserves in place, the leadership team focused on maximising impact rather than margin, and therefore ran a smaller surplus than in previous years. For the second year running, Demos used its own resources to fund a programme of research and advocacy. In 2021, this was a series of pamphlets by the CEO, Making Democracy Work, that set out the challenges of democracy in the 21st century, the need for a radical transformation in the way policy is made, and called for a new "gravitational state", leveraging public services to build social capital. This has enabled the charity to centre its thinking and set out a clear agenda for future work.

At the core of our strategy is an approach we call "Humble Policy Making". Humble policy making identifies a central purpose of the state as building strong relationships: between people and each other, people and the economy, and people and politics. It recognises the need for consensus in creating lasting change, and prioritises what we can agree on over technocratic perfection. And finally, humble policy making is built on an expectation that citizens are involved in the policymaking process from start to finish, and that citizens (not just professionals) are part of the solutions to problems.

We want to make our approach to policy making popular, and well-understood. We will:

We want to demonstrate that this approach to policy making works well. We will:

We want to make public participation easier for policy makers at all levels to deploy. We will:

In June 2022 we saw the departure of our CEO, Polly Mackenzie, after four and a half years in post. Her tenure has seen the transformation of the charity's fortunes; under her leadership Demos has gone from more than a decade of negative assets to healthy reserves in line with Charity Commission guidelines. Even more importantly, over this period the trustees have been able to develop their long term thinking about Demos' role, and how it goes about fulfilling its charitable purpose. This insight and commitment from the board will help manage the transition to the new leader, who will

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

continue the implementation of the charity's strategy set out above. Our teams work to bring that vision into being by conducting research, convening events, and developing and promoting ideas for policy change in government, business, and civil society.

Governance and finance

In 2021 our ability to deliver on our ambitions was underpinned by improved governance including:

A comprehensive review of the board approach and effectiveness review. This covered foundational aspects (skills, role, relationships, strategy), board focus and controls (e.g. finance), the board in action (meetings, behaviours, practicalities) and board development (including review and learning). Actions were identified and will be taken forward by the new CEO.

Over the course of the year, Demos continued to improve its financial health, building on its strong reserves position. Given the healthy financial positions, the board directed the executive team to shift its priorities to maximising impact, rather than maximising the margin. This was delivered, with the charity running a much smaller surplus than in previous years, but still adding a small amount to reserves. Revenues were slightly down at £1,425,359 while expenditure - as a result of staffing investment and an increase in the external costs associated with some larger projects - rose from £1,265,155 to £1,395,942. This resulted in a surplus of £29,417. Very close to the budget set by the board at the start of the year.

Going into 2022, this gave the trustees confidence to support some immediate capital investment in the charity's main external outlet, its website. The trustees also set out their confidence in the financial viability of Demos' strategy and have committed to making further investments in staff capacity once the new CEO is in post. This will be focused on expanding the charity's political reach through events and advocacy work, and expanding our participation tech team, to ensure policy makers at all levels of government know about the opportunity to maximise public participation in policy through tech.

Demos' financial year runs in line with the calendar year, from January 1 to December 31. In recent years, the board and executive have worked on business planning and budgeting during the autumn, from September to November. However, this period coincides with one of the busiest periods for Demos: party conference season, which puts strain on the executive team and reduces the amount of time available for high quality input into the process.

At two consecutive board meetings, trustees considered the risks and benefits of altering our financial year-end to enable us to schedule the business planning process in the spring. The board conducted a full review of the finance team's ability to manage such a transition, to ensure this would not compromise our ability to compare current, previous and future accounting periods. Thanks to the improved financial oversight documented in previous Annual Reports, Demos now has management accounts produced in a consistent format for every quarter period from 2019 onwards. Trustees were therefore confident that comparable accounts could be produced to provide clarity about our current and future financial position, even if we made this change.

On the basis of that risk analysis, the board decided to extend the financial year 2022 to an 18-month period, and has agreed a budget and business plan for that period. The 2022 financial year will end in

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

June 2023. From then, Demos will report on the basis of a year running from July 1 to June 30, starting with July 2023 to June 2024.

Charitable objectives

The Chair and Trustees conducted a full review of Demos' charitable activities, and concluded that in order to fully reflect the current and future work of Demos, the charity's objects should be updated. Demos is a research and education charity which has used the insights and findings of its research to advance social and policy change.

Some of its work, while research-led, has a secondary objective of advancing other charitable purposes such as tackling social exclusion, promoting sustainable development, relieving poverty, or improving the efficiency of public services which serve a charitable purpose. The charitable objectives of Demos are as follows:

(1) To promote education for the public benefit in issues of politics, economics, technology and the digital economy, methods and practices of public deliberation, the environment and public policy. (2) To promote for the public benefit research in any of the above fields of education and to publish the useful results of such research. (3) To further such other purposes which are exclusively charitable under the law of England and Wales as the Trustees shall determine, with a focus on preventing social exclusion, promoting sustainable development, promoting the efficiency and effectiveness of public services, and relieving poverty.

(4) For the purposes of Article 3:

(a) "social exclusion" means being excluded from society, or part of society, as a result of being a member of a socially and economically deprived community; and (b) "sustainable development" means development which meets the needs of the present without compromising the ability of future generations to meet their own needs.

Achievements and performance

Achievements during 2021

Leading achievements for 2021 include:

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

outlined a package of policies that represent the commitments and trade-offs we as a country are prepared to make, based on the input from a nationally representative group of nearly 20,000 people. These measures, if taken together and taken soon, would result in a 42% reduction in emissions by 2030, exceeding the Government’s existing target and setting the country on a clear path to net zero.

Publications

Titles published during the year include:

THE IMPACT OF THE PANDEMIC ON THE CHARITABLE SECTOR: Claudia Wood's report with New Philanthropy Capital mapped the wide ranging and complex impacts that the Covid-19 pandemic had within the charity sector, affected fundraising, delivery costs, need and more.

POTENTIAL LIMITED: This report by Kitty Ussher and Ben Glover explored the economic impact on patients from being unable to control their asthma - in particular through lower earnings and more limited opportunities to work and study.

THE CARE COMMITMENT: Conservative MP Danny Kruger - former Political Secretary to Boris Johnson and the author of a recent government review of civil society - called for a shift to a more family and community-centred care system in a paper supported by the County Councils Network.

GOOD FOUNDATIONS: In this paper, Josh Smith, Alex Krasodomski-Jones and Ciaran Cummins examined two examples of internet protocols which may represent the next evolution of the Internet: New IP, developed by China's Huawei, and DNS over HTTPS (or 'DoH'), developed and championed, among others, by the Mozilla Foundation and Cloudflare. For each, we discuss the significant effects which these changes could have on the human and social layers of the Internet. T

A PICTURE OF HEALTH: Using an algorithm to analyse discussions on the social media platform Reddit, authors Josh Smith, Alex Krasodomski Jones, Ellen Judson and Maria Olanipekun found that users in online spaces do not behave consistently across multiple forums, but adjust their negative behaviour to the rules of the platform they are using.

FOOD IN A PANDEMIC: Rose Lasko Skinner and James Sweetland's report with the Food Standards

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

Agency found that our experiences of food have diverged widely during the pandemic. While some saw their eating habits improve, others faced acute levels of food insecurity.

POST PANDEMIC PLACES: This report by Kitty Ussher found that areas with more remote working are likely to see higher levels of local spending, suggesting that enabling remote working could key to the Government's plans for regeneration after the pandemic.

COMMUNITIES OF HUMANITARIAN THOUGHT: This essay collection brought together leading thinkers from political and civil society to mark the British Red Cross' 150th year and to outline a vision for the future.

RACE TO THE TOP: A NEW CORPORATE TAX DEAL FOR THE UK: This report by Charles Seaford and Ben Glover drew on 20 interviews with tax directors at large businesses with UK operations. Aligning strongly with President Biden's proposals for a global minimum corporation tax rate, we found that the current system's complexity and unpredictability posed a challenge to businesses, and that many big businesses are largely accepting of higher corporation tax rates.

THE NOWHERE OFFICE: This provocative paper by Julia Hobsbawm OBE launched our Workshift Commission. It set out a vision of workplace and work life reform on the back of the pandemic disruption, to improve our wellbeing and social health.

TIME FOR CHANGE: Our report, supported by the Joffe Charitable Trust, found that the Government should provide a boost to retailers on the high street by shifting the burden of business rates from retailers to landlords. It was written by Ben Glover, Charles Seaford and James Sweetland.

THE POWER OF FOOD: This research by Rose Lasko Skinner was supported by the British Poultry Council. It called for the Government to introduce funding to help tackle food insecurity by creating environments that improve social capital for those on low incomes.

DISTANCED REVOLUTION: This paper by Rose Lasko Skinner for our Workshift Commission used data and polling to better understand employees' experiences of working from home during the pandemic - the benefits, challenges and future opportunities.

DELIVERING LEVELLING UP: This second major report from our LIPSIT collaboration with a number of major UK universities drew together a wide range of evidence collected during our two-year investigation. The report mobilised the project's findings on regional institutions and regional economies in order to assess the potential for delivering 'levelling up' in the UK.

BOUNCING BACK: This research funded by Yorkshire Building Society looked at young people's financial resilience in the light of the pandemic. Ciaran Cummins and Ben Glover found that nearly half of young people had low financial resilience.

GOOD CREDIT INDEX 2021: The Good Credit Index 2021, supported by New Day, found that the financial support provided by the Government during the pandemic provided many households with a vital lifeline. In the Index's third year, there was an average increase in access to credit in the UK, mostly due to effective government intervention to prevent a financial crisis.

ALL EARS: This report by Ben Glover and Andrew Philips, made possible by the Politics and Economics Research Trust, argued that the public must be put at the heart of levelling up, finding that the public wants to be involved in local economic decision-making.

INSIDE JOBS: Research by Andrew Philips and Rose Lasko-Skinner explored the experiences of lowpaid homeworkers. Supported by Stonewater Housing, it recommended ways of making home working more viable for those on low incomes.

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

SILENCE, WOMAN: In partnership with BBC Panorama, Ellen Judson, Josh Smith and Alex Krasodomski Jones investigated the gendered abuse that contestants on reality shows Love Island and Married At First Sight UK faced online.

The Centre for the Analysis of Social Media

CASM strengthened its profile and influence in 2021, giving evidence in Parliament three times in 2021, building new long-term relationships with half a dozen MPs and presenting work at the EU, to the UK government and the White House. Its efforts on the "Good Web" project culminated in the Declaration for the Future of the Internet signed by 60 governments in countries around the world. CASM work is routinely cited in decision-making around current legislation, its networks into government are deep and broad, and it has built a strong reputation in places where previously we had a gap: notably charitable foundations.

As a team within Demos, CASM strengthened through the year, with solid fundraising and a strong cohort of research managers and researchers. Ellen Judson in particular has cemented herself as the engine driving our engagement with government and civil society networks.

Public Participation and Demos Technology

2021 has entrenched our reputation for running robust online deliberative polling. In particular, we have greatly expanded the number of projects using the deliberative tool Polis and developed a new methodology for combining the outcome of online conversations with focus groups exploring issues in more depth. Alongside new funders, we have strengthened our relationship with BT, and saw ways in which our influence is having lasting effects: after working with us last year the Cabinet Office have now hired a dedicated team to apply our participative approach across the civil service.

Alongside Polis, we have continued to present our research in novel ways, with climatecalculator.com, built in partnership with WWF, representing a new high watermark in Demos' web development. The site allows people to set their own policies for hitting the governments 2030 emissions targets, showing the economic cost of changes as well as the environmental impact of their choices. This is a new way of involving the public in policy. More recently, peoplepower.demos.co.uk takes a fresh look at publishing more traditional reports, in a collaboration between the research, design and development teams. In 2022 we will further entrench Polis as one of Demos' core research methodologies.

Financial review

DEMOS CONSULTING LIMITED

The charity controls Demos Consulting Limited (company number 2667039), a company limited by guarantee. The two Directors of Demos Consulting Limited are the chief executive of Demos and one of the charity's trustees. Demos Consulting traded profitably during the year 2021.

FINANCE REVIEW

The results of the year's activity are set out in the attached financial statements. Total incoming resources were £1,425,358: an decrease of £88,982 in the previous year (£1,514,340). Prior to 2017, the majority of income streams are broadly similar year on year ((2016 - £969,023), (2015 - £1,064,870),)/ Similarly, until 2017, resource expenditure remained relatively consistent (2016 - £1,103,760), (2015 - £1,064,870), (2014 - £1,182,085). Like 2020, 2021 shows a significant increase in expenditure, reflecting in the main the significant increase in staff to support new projects undertaken. Expenditure for the year was £1,395,942, compared with £1,265,155 in the prior year. Despite the fall in income and the increase in spending, there was still a positive surplus of £29,417, leading to positive reserves of £406,262.

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

RESERVES & GOING CONCERN

As set out in the Accounting Policies in Note 1.4 to the financial statements, the accounts have been prepared on the going concern basis, i.e. on the basis that the charity will continue in operational existence for the foreseeable future (being at least 12 months from the date of signing the financial statements). The trustees have made this judgement on the grounds that 2019 represented a good base year and that there is every sign that even allowing for the uncertainties of COVID and other factors, the charity will continue to build on this last successful year. The chief executive has taken substantial measures to manage costs and resources and deliver revenues wherever possible, working with the trustees to establish and embed improved governance and financial risk management. The trustees have set an overarching goal to improve net assets, in which the charity holds an appropriate balance of reserves, as soon as possible, recognising that this is likely to be achieved in the medium term.

Trustees have considered the impact of Covid-19 on the charity's ability to continue its work. The pandemic has affected the charity's pipeline of funded projects, but there are still a substantial number of projects in development with funders whose resource allocations will not be affected. At the time of writing, Demos' reserves have more than doubled since the end of 2019. In the event of a serious decline in revenues into 2022, the charity retains substantial flexibility on staffing, and would be able to downsize to meet its needs. Therefore the trustees consider the charity is well-placed to withstand the impact of the pandemic.

RISK ASSESSMENT

Demos continued to make significant improvements to its risk management approach in 2022. Demos continued to develop its project management controls, using technology, training and processes that encourage Demos personnel to recognise and prepare for risk events at project outset and consider "lessons learned" at their conclusion. In addition to this, Demos continued to review its operations against the operational risk register and developed numerous new internal policies relevant to risk areas, including but not limited to employee safeguarding, data protection and anti-fraud. To address financial risk, Demos overhauled numerous financial management processes and spending controls.

Demos selected new suppliers for its accountancy and legal requirements as part of strengthening risk management. Whilst rolling out these improvements, Demos received ongoing guidance and scrutiny at a Governance level from Demos' Finance and Audit subcommittee.

Future Development

The trustees have reviewed the latest results for 2021 and anticipated income and workflow projection for 2022 and beyond. The trustees are confident that Demos will continue to be in a strong financial position, and is able to weather any dip in revenue associated with the transition to a new CEO. Trustees continue to scrutinise budgets, spending and revenue forecasts to ensure Demos can meet its liabilities as they fall due for the foreseeable future and have therefore prepared the financial statements on the going concern basis.

Credit risks

The charitable company's principal financial assets are bank balances, cash and trade debtors which represent the company's maximum exposure to credit risk in relation to financial assets.

The company's credit risk is primarily attributable to its trade debtors. Credit risk is managed by monitoring the aggregate amount and duration of exposure to any one funder depending upon their credit rating. The amounts presented in the balance sheet are net of allowances for doubtful debts, estimated by the charitable company's management based on prior experience and their assessment of the current economic environment.

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings and / or with Government support, where applicable, assigned by international credit-rating agencies. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, 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).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

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

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Companies Act 2006. 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

Each of the persons who is a trustee at the date of approval of this report confirms that:

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the

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Demos

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 December 2021

small companies exemption.

The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Dame J Mellor (Chair) Trustee

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Demos

Company Limited by Guarantee

Independent Auditor's Report to the Members of Demos (continued)

Year ended 31 December 2021

Opinion

We have audited the financial statements of Demos (the 'parent charity') and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities (including income and expenditure account), consolidated statement of financial position, charity statement of financial position, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 group 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Demos

Company Limited by Guarantee

Independent Auditor's Report to the Members of Demos (continued)

Year ended 31 December 2021

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) 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 group'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 liquidate the group or to cease operations, or have no realistic alternative but to do so.

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Demos

Company Limited by Guarantee

Independent Auditor's Report to the Members of Demos (continued)

Year ended 31 December 2021

Auditor's responsibilities for the audit of the financial statements

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.

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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and charity performance.

We also consider the results of our enquiries of management, relating totheir own identification and assessment of the risks of irregularities and possible related fraud. This includes reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness.

Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end and posting of unusual journals.

We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit.

Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

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Demos

Company Limited by Guarantee

Independent Auditor's Report to the Members of Demos (continued)

Year ended 31 December 2021

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Collyer (Senior Statutory Auditor)

For and on behalf of Burgess Hodgson LLP Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN

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Demos

Company Limited by Guarantee

Consolidated Statement of Financial Activities (including income and expenditure account)

Year ended 31 December 2021

2021 2020
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 486 – 486 32,281
Charitable activities 6 1,030,536 393,491 1,424,027 1,248,212
Other trading activities 7 577 – 577 233,067
Investment income 8 268 – 268 780
-------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Total income 1,031,867 393,491 1,425,358 1,514,340
================================ ================================ ========================================= =========================================
Expenditure
Expenditure on charitable activities 10,11 1,002,451 393,491 1,395,942 1,214,200
Expenditure on trading activities 9 – – – 50,955
----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Total expenditure 1,002,451 393,491 1,395,942 1,265,155
========================================= ================================ ========================================= =========================================
----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Net income and net movement in funds 29,416 – 29,416 249,165
========================================= ================================ ========================================= =========================================
Reconciliation of funds
Total funds brought forward 376,846 – 376,846 127,661
----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
Total funds carried forward 406,262 – 406,262 376,846
========================================= ================================ ========================================= =========================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 20 to 31 form part of these financial statements.

- 16 -

Demos

Company Limited by Guarantee

Consolidated Statement of Financial Position

31 December 2021

2021 2020
Note £ £
Fixed assets
Tangible fixed assets 16 18,713 4,533
Current assets
Debtors 17 288,299 374,111
Cash at bank and in hand 371,706 531,625
-------------------------------- --------------------------------
660,005 905,736
Creditors: amounts falling due within one year 18 272,456 533,423
-------------------------------- --------------------------------
Net current assets 387,549 372,313
-------------------------------- --------------------------------
Total assets less current liabilities 406,262 376,846
-------------------------------- --------------------------------
Net assets 406,262 376,846
================================ ================================
Funds of the charity
Unrestricted funds 406,262 376,846
Restricted funds – –
-------------------------------- --------------------------------
Total charity funds 21 406,262 376,846
================================ ================================

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Dame J Mellor (Chair) Trustee

The notes on pages 20 to 31 form part of these financial statements.

- 17 -

Demos

Company Limited by Guarantee

Statement of Financial Position

31 December 2021

2021 2020
Note £ £
Fixed assets
Tangible fixed assets 16 18,713 4,533
Current assets
Debtors 17 345,987 488,858
Cash at bank and in hand 276,551 365,877
-------------------------------- --------------------------------
622,538 854,735
Creditors: amounts falling due within one year 18 234,989 482,422
-------------------------------- --------------------------------
Net current assets 387,549 372,313
-------------------------------- --------------------------------
Total assets less current liabilities 406,262 376,846
-------------------------------- --------------------------------
Net assets 406,262 376,846
================================ ================================
Funds of the charity
Unrestricted funds 406,262 376,846
Restricted funds – –
-------------------------------- --------------------------------
Total charity funds 21 406,262 376,846
================================ ================================

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Dame J Mellor (Chair) Trustee

The notes on pages 20 to 31 form part of these financial statements.

- 18 -

Demos

Company Limited by Guarantee

Consolidated Statement of Cash Flows

Year ended 31 December 2021

2021 2020
£ £
Cash flows from operating activities
Net (expenditure)/income 29,417 249,185
Adjustments for:
Depreciation of tangible fixed assets 4,251 1,293
Other interest receivable and similar income (268) (780)
Accrued expenses/(income) 14,786 (17,786)
Changes in:
Trade and other debtors (9,455) (52,939)
Trade and other creditors (180,987) 61,450
-------------------------------- --------------------------------
Cash generated from operations (142,256) 240,423
Interest received 268 780
---------------------------- --------------------------------
Net cash (used in)/from operating activities (141,988) 241,203
============================ ================================
Cash flows from investing activities
Purchase of tangible assets (17,931) (4,836)
---------------------------- --------------------------------
Net cash used in investing activities (17,931) (4,836)
============================ ================================
Net (decrease)/increase in cash and cash equivalents (159,919) 236,367
Cash and cash equivalents at beginning of year 531,625 295,258
-------------------------------- --------------------------------
Cash and cash equivalents at end of year 371,706 531,625
================================ ================================

The notes on pages 20 to 31 form part of these financial statements.

- 19 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 15 Whitehall, London, SW1A 2DD, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

Due to the surplus made in the year ended 31 December 2021, the charity has moved to an even stronger positive net reserves position when compared to the last financial year. Due to the manner in which Demos obtains funding and is commissioned to undertake projects, it continually undertakes business development activities. Careful management of cash in the financial year has led to a significant increase in cash over the period which has enabled the charity to develop resources to acquire, manage and deliver projects. The charity enters each year in the knowledge that its anticipated income for the year is not fully secured hence it carefully monitors its pipeline of new work and the success of the bids makes for funding. Historically this business model has proven to be appropriate and hence the trustees consider there are no material uncertainties over going concern, and there is a valid expectation that the charity will continue in operational existence for the foreseeable future (at least 12 months from the date of signing the financial statements). The financial statements have been prepared on a going concern basis.

Disclosure exemptions

The parent charity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

- 20 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued) Consolidation

The financial statements consolidate the financial statements of Demos and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the period are included from or to the date that control passes.

The parent charity has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical judgements

Revenue from contracts is assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract which is estimates using the time spent to date compared with the total time required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to a management review. These estimates may differ from the actual results to a variety of factors such as efficiency of working and accuracy of assessment of the progress to date. See note 20 for disclosure of the amount by which billing exceeds revenue.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

- 21 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued) Incoming resources

All incoming resources are included in the Statement of financial activities when the company has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

This is shown net of VAT.

Income from projects, grants, events and seminars is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Should income invoiced exceed the income that should be recognised in the accounts for the year, then this difference will be deferred.

Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Support costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

Projects 90% Publications and subscriptions 5% Events and seminar 5%

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

- 22 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

3. Accounting policies (continued) Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 5 years Computer equipment - 3 years

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Limited by guarantee

All directors are members of the charitable company and guarantee to contribute to the assets of the company in the event of it being wound up such amounts as may be required not exceeding £1. The number of guarantees at 31 December 2021 was 7 (2020: 7). The directors have no beneficial interest in the charitable company nor in its activities and are not remunerated. A register of business interests is maintained.

5. Donations and legacies

- 23 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Donations
Donations 486 – 486
============== ============== ==============
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations
Donations 12,281 20,000 32,281
================================ ============================ ================================
6. Charitable activities
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Projects 872,058 – 872,058
Events and seminars 76,451 – 76,451
Publications and subs 1,026 – 1,026
Grant funded research 81,001 393,491 474,492
----------------------------------------- ---------------------------------------- -----------------------------------------
1,030,536 393,491 1,424,027
========================================= ========================================= =========================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Projects 745,172 109,320 854,492
Events and seminars 4,300 – 4,300
Publications and subs 774 – 774
Grant funded research 10,000 378,646 388,646
-------------------------------- -------------------------------- -----------------------------------------
760,246 487,966 1,248,212
================================ ================================ =========================================
7. Analysis of grants
2021 2020
£ £
Grants to institutions
Charities and Foundations 206,375 217,585
Commercial organisations 594,473 551,954
Cultural and Educational organisations 71,017 79,496
NPDB 48,410 141,750
Government department 120,849 174,988
Non UK organisation 22,594 33,824
Other 171,024 80,726
----------------------------------------- -----------------------------------------
1,234,741 1,280,323
---------------------------------------- -----------------------------------------
Total grants 1,234,741 1,280,323
========================================= =========================================

8. Other trading activities

- 24 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Internships Income – – 3,000 3,000
Other Income 577 577 230,067 230,067
---------------------------- ---------------------------- ---------------------------- ----------------------------
577 577 233,067 233,067
============================ ============================ ============================ ============================
9. Investment income
Unrestricted Total Funds Unrestricted Total Funds
Funds 2021 Funds 2020
£ £ £ £
Bank interest receivable 268 268 780 780
============== ============== ============== ==============
10. Expenditure on charitable activities by fund type
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Projects 837,972 393,491 1,231,463
Events and seminars 10,693 – 10,693
Support costs 153,786 – 153,786
----------------------------------------- ----------------------------------------- -----------------------------------------
1,002,451 393,491 1,395,942
========================================= ========================================= =========================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Projects 572,112 537,993 1,110,105
Events and seminars 509 – 509
Support costs 102,168 1,418 103,586
-------------------------------- -------------------------------- -----------------------------------------
674,789 539,411 1,214,200
================================ ================================ =========================================

11. Expenditure on charitable activities by activity type

Activities
undertaken Support Total funds Total funds
directly costs 2021 2020
£ £ £ £
Projects 1,231,463 120,050 1,351,513 1,181,841
Events and seminars 10,693 – 10,693 509
Governance costs – 33,736 33,736 31,850
----------------------------------------- -------------------------------- ----------------------------------------- -----------------------------------------
1,242,156 153,786 1,395,942 1,214,200
========================================= ================================ ========================================= =========================================

- 25 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

12. Analysis of support costs

Projects Events &
Publications
Seminars
&
Subscriptions Total 2021 Total 2020
£ £ £ £ £
Premises 70,532 3,918
3,918		 78,369 704
General office 6,554 364
364		 7,282 42,029
Support costs - Other costs 57,496 3,194
3,194		 63,884 27,710
Support costs - Depreciation 3,826 213
213		 4,251 1,293
-------------- -------------- -------------- -------------- ----------------------------
138,407 7,689
7,689		 153,786 71,736
============== ============== ============== ============== ============================

13. Net (expenditure)/income

Net (expenditure)/income is stated after charging/(crediting):

2021 2020
£ £
Depreciation of tangible fixed assets 4,251 1,293
Foreign exchange differences 870 1,355
======================= =======================
Auditors remuneration
2021 2020
£ £
Fees payable for the audit of the financial statements 6,150 6,000
Fees payable for tax advisory services 500 450
Fees payable for non-audit services 4,100 4,050
-------------------------------- --------------------------------
10,750 10,500
================================ ================================

14. Auditors remuneration

15. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2021 2020
£ £
Wages and salaries 673,737 646,917
Social security costs 68,161 60,300
Employer contributions to pension plans 35,933 35,277
-------------------------------- --------------------------------
777,831 742,494
================================ ================================

Total remuneration paid to key management personnel, including benefits such as employer pension contributions, amounted to £106,000 (2020: £106,000).

The average head count of employees during the year was 20 (2020: 19). The average number of full-time equivalent employees during the year is analysed as follows:

- 26 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

15. Staff costs (continued)

2021 2020
No. No.
Projects 16 15
External affairs 3 3
Support costs 1 1
-------------- --------------
20 19
============== ==============

The number of employees whose remuneration for the year fell within the following bands, were:

£90,000 to £99,999

2021 2020
No. No.
1 1
============== ==============

16. Trustee remuneration and expenses

During the year, no Trustees received any remuneration or benefits in kind (2020: £nil). During the year, no Trustees received reimbursement of expenses (2020: £nil).

17. Tangible fixed assets

Fixtures and Computer
fittings Equipment Total
£ £ £
Cost
At 1 January 2021 3,305 6,773 10,078
Additions 1,933 16,498 18,431
----------------------- ---------------------------- ----------------------------
At 31 December 2021 5,238 23,271 28,509
======================= ============================ ============================
Depreciation
At 1 January 2021 846 4,699 5,545
Charge for the year 1,237 3,014 4,251
----------------------- ---------------------------- ----------------------------
At 31 December 2021 2,083 7,713 9,796
======================= ============================ ============================
Carrying amount
At 31 December 2021 3,155 15,558 18,713
======================= ============================ ============================
At 31 December 2020 2,459 2,074 4,533
======================= ============================ ============================
Debtors
Group Company
2021 2020 2021 2020
£ £ £ £
Trade debtors 175,870 182,167 86,562 166,076
Prepayments and accrued income 77,507 156,202 64,464 156,202
Other debtors 34,922 35,742 194,961 166,580
------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------
288,299 374,111 345,987 488,858
========================================== ========================================== ========================================== ==========================================

18. Debtors

- 27 -

Demos

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 December 2021

19. Creditors: amounts falling due within one year

Group Company Company
2021 2020 2021 2020
£ £ £ £
Trade creditors 55,381 84,656 55,381 84,613
Accruals and deferred income 132,840 260,055 112,367 260,055
Social security and other taxes 61,045 97,036 44,651 91,028
Other creditors 23,190 91,676 22,590 46,726
------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------
272,456 533,423 234,989 482,422
========================================== ========================================== ========================================== ==========================================

20. Deferred income

Group Company Company
2021 2020 2021 2020
£ £ £ £
At 1 January 2021 197,491 152,253 180,341 152,253
Amount released to income (197,491) (340,115) (180,341) (340,115)
Amount deferred in year 63,600 385,353 63,600 368,203
------------------------------------------ ------------------------------------------ ------------------------------------------ ------------------------------------------
At 31 December 2021 63,600 197,491 63,600 180,341
========================================== ========================================== ========================================== ==========================================

21. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £35,933 (2020: £35,277).

22. Analysis of charitable funds

Unrestricted funds

Group and company

At
At 31 December
1 January 2021 Income Expenditure 2021
£ £ £ £
General funds
376,846 1,031,868 (1,002,451) 406,262
============================ ================================ ========================================= ================================
At
At 31 December
1 January 2020 Income Expenditure 2020
£ £ £ £
General funds
96,216 1,050,121 (769,491) 376,846
============================ ========================================= ================================ ============================

- 28 -

Demos

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

Year ended 31 December 2021

Company At
At 31 December
1 January 2021 Income Expenditure 2021
£ £ £ £
General funds
376,846 1,001,290 (971,874) 406,262
============================ ================================ ========================================= ================================
At
At 31 December
1 January 2020 Income Expenditure 2020
£ £ £ £
General funds
96,216 953,391 (672,761)
376,846
=========================== ========================================= ================================ ============================
Restricted funds
Group and company

The subsidiaries have no restricted funds.

At 1 Income Expenditure At 31
January December
2021 2021
£ £ £ £
LIPSIT – 42,917 (42,917) –
Catholic Church – Death and – 21,850 (21,850) –
Dying
10Today Phase 2 – 171,024 (171,024) –
Hyde – 37,500 (37,500) –
WWF Climate Calculator – 110,000 (110,000) –
Barrow Cadbury – 10,200 (10,200) –
---------------------------- -------------------------------- -------------------------------- --------------------------------
– 393,491 (393,491) –
============================ ================================ ================================ ================================
At Income Expenditure At
1 January 2020 31 December
2020
£ £ £ £
Digital Power and Trust – – – –
Online
Character and social media – – – –
Active Radio – 66,397
(66,397)		 –
The Wealth Within – – – –
Pathways from Poverty – – – –
Gendered Disinformation 3,500 33,824
(37,324)		 –
GCI Interventions 23,893 92,222
(116,115)		 –
Power – 7,464
(7,464)		 –
Nuffield Bid 4,052 – (4,052) –
LIPSIT – 52,846
(52,846)		 –
Good Credit Index Year 2 – 30,000
(30,000)		 –

- 29 -

Demos

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

Year ended 31 December 2021 31 December 2021
Standard Life Tax – 109,460 (109,460) –
Investment App – 20,000 (20,000) –
Catholic Church - Death and – 22,650 (22,650) –
Dying
Open Rights Group - – 4,000 (4,000) –
Deliberation
10Today Award Extension – 52,001 (52,001) –
10Today Phase 2 – 17,102 (17,102) –
---------------------------- -------------------------------- -------------------------------- --------------------------------
31,445 507,966 (539,411) –
============================ ================================ ================================ ================================
23. Analysis of net assets between funds
Group
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible fixed assets 18,713 – 18,713
Current assets 660,005 – 660,005
Creditors less than 1 year (272,456) – (272,456)
-------------------------------- ---------------------------- --------------------------------
Net assets 406,262 – 406,262
================================ ============================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets 4,533 – 4,533
Current assets 905,736 – 905,736
Creditors less than 1 year (533,423) – (533,423)
-------------------------------- ---------------------------- --------------------------------
Net assets 376,846 – 376,846
================================ ============================ ================================
Company
Unrestricted Restricted Total Funds
Funds Funds 2021
£ £ £
Tangible fixed assets 18,713 – 18,713
Current assets 622,538 – 622,538
Creditors less than 1 year (234,989) – (234,989)
-------------------------------- ---------------------------- --------------------------------
Net assets 406,262 – 406,262
================================ ============================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Tangible fixed assets 4,533 – 4,533
Current assets 854,735 – 854,735
Creditors less than 1 year (482,422) – (482,422)
-------------------------------- -------------- --------------------------------
Net assets 376,846 – 376,846
================================ ============================ ================================

- 30 -

Demos

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

Year ended 31 December 2021

24. Analysis of changes in net debt

Group

Group
At At
1 Jan 2021 Cash flows 31 Dec 2021
£ £ £
Cash at bank and in hand 531,625 (159,919)
371,706
================================ ================================ ================================
Company
At At
1 Jan 2021 Cash flows 31 Dec 2021
£ £ £
Cash at bank and in hand 365,877 (89,326)
276,551
================================ ================================ ================================

25. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

2021 2020
£ £
Not later than 1 year 74,184 74,437
Later than 1 year and not later than 5 years 33,763 107,947
-------------- --------------------------------
107,947 182,384
============== ================================

26. Related parties

Company

At the balance sheet date £16,737 (2020: £2,912) was owed to companies under common control.

- 31 -