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2021-12-31-accounts

In Kind Direct Company number: 03155226

IN KIND DIRECT (a company limited by guarantee)

Trustee Report and Financial Statements for the year ended 31 December 2021

Registered Company no: 03155226 Registered Charity no: 1052679

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In Kind Direct Company number: 03155226

Report and Financial Statements for the year ended 31 December 2021

Page
Reference and Administrative details 3
Supporters 4 - 6
Vision, Mission and Key Achievements 7 - 8
Directors' Report 9 - 27
Public benefit, objectives and activities
Achievements and performance
Plans for the future
Structure, governance and management
Financial review of 2021
Financial policies
Risk policy and management
Environmental policy
Directors and trustees
Independent Auditor’s report 28 - 30
Consolidated Statement of Financial Activities 31
Consolidated Balance Sheet 32
Company Balance Sheet 33
Consolidated and Company Statement of Cash Flows 34
Notes to the Financial Statements 35 – 46

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In Kind Direct Company number: 03155226

REFERENCE AND ADMINISTRATIVE DETAILS

Directors and Trustees

Teresa Tideman (Chair) Ajay Kavan (Deputy Chair) Scott Barton Graham Burridge Barry Furlong Tim Hinton Graham Inglis Tom Moody Martin Newman Andrew Rubin Debra Allcock Tyler Richard Wolff Ayesha Farooq Alec Grant Chirag Patel

Chief Executive Rosanne Gray

Independent Auditor Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Bankers Lloyds Banking Group 109 Finsbury Pavement London EC2A 1LB

Status

In Kind Direct is:

It is governed by a Memorandum and Articles of Association dated 16 January 1996, as amended by subsequent Special Resolutions.

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In Kind Direct Company number: 03155226

Supporters

In Kind Direct gratefully acknowledges support in 2021 from many individuals and organisations by way of encouragement, donated goods or services and funding. This support is provided by the people and organisations listed below, as well as those who wish to remain anonymous:

Our Patrons

In Kind Direct’s Patrons are a group of like-minded individuals and organisations who understand and recognise the unique impact that In Kind Direct’s work has in communities.

Our Patrons’ generosity is absolutely core to what we do. They have been instrumental in helping us respond to the particular challenges of the ongoing Covid-19 pandemic and helped us to sustain our service and increase our impact.

Without their support, our work would simply not be possible. We thank all those who have supported us in the year, including those named in this report.

The Investors’ Circle:

Lloyds Banking Group Nutt, Mr & Mrs Anthony & Eleanor

Diamond Patrons:

Amazon UK

Patrons:

Acheson, Mr & Mrs Kenneth & Fiona Santander

Other Financial Supporters

Amazon Smile Barclays 100x100 UK COVID-19 Community Relief Fund Essity TORK Henkel Lally, Tina Lovat Parks Primark The 29th May 1961 Charitable Trust The Cecil Pilkington Charitable Trust The JR Corah Foundation Trust The Warwick Trust

The Haramead Trust The Marsh Charitable Trust The Morgan Charitable Trust Sassoli, Danielle The Simon Gibson Charitable Trust The Sir James Knott Trust The Sobell Foundation Tideman, Mrs Teresa

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In Kind Direct Company number: 03155226

Donated Services

Abamentis Microsoft Amazon Web Services Pentland Brands Aspinall, Mark Procter & Gamble Directory of Social Change Santander Google The Customer First Group Javelin Voipfone Lloyds Banking Group

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In Kind Direct Company number: 03155226

Donated goods:

Household

Balsam Brands Beauty Kitchen Beiersdorf UK BAPS UK Bulldog Natural Skincare Charles Worthington Chemiteq Church & Dwight Colgate Palmolive Consuma Paper Products Contis Danidean Holdings DHL Duracell UK Dynamic Wipe Industries Ecotone Escentual Essity Essity - Bodyform Essity (formerly SCA Tissue) Estée Lauder Evo Lifestyle Products Faith in Nature Genesis Biosciences Henkel Johnson & Johnson Kimberly-Clark Kimberly-Clark Professional Lil-lets Group L'Oreal Mama Bamboo McBride Modibodi Naked Sprout Rowan International Sanxiderm SC Johnson Sodexo Sykes Global Services Tangle Teezer TCC Global Thornton & Ross Trendsetter Home Furnishings Unilever UK Vi-Spring V-TAC Exports

Household appliances, Tools & Electronics Philips Electronics UK Prêt à Pousser Samsung Electronics

General Retail Amazon.co.uk ASDA Stores Banner UK John Lewis & Partners M&S Tesco Very Group Zebra A/S - Flying Tiger Copenhagen Zenith Hygiene

Toys, Baby & Educational Big Game Hunters Big Potato Games Cath Kidston Character Group Colart Genie Toys H and A Hasbro Lapland UK Learning Resources LEGO Little Adventures Meri Michael O'Mara Micro Scooters The Den Kit Company The Disney Store Usborne Publishing Winning Moves World of Books WOW Toys

Work & Office

Martha Brook Newell Brands PG Paper Company Premier Paper Group Ricoh

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In Kind Direct Company number: 03155226

Clothing, Footwear & Sports

Samba Sports Shush Sports Vans Europe William Lamb Group

Babcock Shush Sports Beano Studios Vans Europe Brand Addition William Lamb Group Decathlon UK Ltd Esska Shoes Kitchen, Ambient & Pet Food Lacoste Bidfood Levi Strauss (UK) Costa Coffee London Marathon Events Exclusively Housewares (Event) Nike UK Greene King Outsourced Events Hill's Pet Nutrition Pantherella JUST Water Pentland Brands plc Lindt & Sprungli (UK) Petit Bateau UK Meyer Group Primark Pladis Global Reydon Sports The Waiter's Friend Company

Our Purpose

Creating powerful partnerships, enabling more communities to thrive.

Our Belief

Everyone deserves access to life’s essentials, and no usable product should go to waste. Product giving is a practical way to address the widening gap in need across society.

Our Values

Kindness It's in our name. We are compassionate and always working for the greatest good to increase equity and justice.

Togetherness Positive change in society is not the job of one individual, group, or organisation. Our impact is greatest when we collaborate, act as one and all move forward together.

Integrity How things are done is as impactful as what is done. We are open, accountable, and transparent and always strive to do the right thing.

Innovation Just as our founder challenged the status quo, we are always looking to evolve and improve. Our curiosity, creativity and resilience enable us to think big and adapt at pace.

Since 1996

£297 million at retail value of products distributed to charitable organisations. 11,655 charitable organisations have benefited from accessing our service.

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In Kind Direct Company number: 03155226

2025 Ambition

We will triple our impact to help ensure everyone can feel clean, safe and well, and to reduce the number of people forced to choose whether to heat, eat, or be clean.

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In Kind Direct Company number: 03155226

Trustees’ report for the year ended 31 December 2021

The Trustees, who are also the directors of the charity for the purposes of the Companies Act, present their annual report and audited financial statements for the year ended 31 December 2021.

Public benefit, objectives and activities

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission on determining the activities undertaken by a charity. The Trustees are satisfied that the aims and objectives of the charity, and the activities reported on can achieve the aims and principles of public benefit.

The charity’s objects are as follows:

In Kind Direct distributes products donated by companies to UK charitable organisations working in the UK and overseas. Founded in 1996 by HRH The Prince of Wales, we offer a simple solution to connect companies and their products to thousands of charities, community groups, foodbanks and schools supporting our communities.

In Kind Direct makes it easy for companies and brands to have a positive social impact with the products they make and sell. We have the logistics infrastructure and expertise to store and handle large and varied quantities of stock and distribute it to charitable organisations. We inspire confidence in companies to donate, by working with charitable organisations in our network to ensure the most needed products reach the communities that need them.

We enable charitable organisations to do more for less and put their local knowledge at the heart of our work. Charitable organisations register for free, and request goods via our online catalogue. They pay a small charge for products, which includes UK delivery. This contributes to our operational costs and protects companies from incurring VAT on their product donations.

The result is an efficient, practical solution which diverts usable goods from going to waste and unlocks huge additional resource into the sector. In 2021, we unlocked £27m in savings and reached 249,000 people each week. Charitable organisations in our network used these savings to cover core costs, deliver new services, and reaching those they otherwise could not during the Covid-19 pandemic.

In addition to our core service distributing donated products from companies, In Kind Direct, along with our trading company, also helps charitable organisations to access valuable resources by negotiating discounts on new and refurbished essential products and services through affiliate schemes.

So far, we have distributed £297m of essential products, supporting 11,655 charitable organisations and millions of people, and diverting 32,700 tonnes of usable goods from waste.

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The Trustees have identified the following public benefits flow from the charity’s objects and activities:

Achievements and performance 2021

2021 was the first year of our five-year strategy. Our ambition is to triple our impact by 2025 and place the needs of the communities we support at the heart of our approach. By taking a campaignbased approach this year, the charity was able to provide a consistent supply of core essentials, as well as specific products at the right time for communities across the year.

Covid-19 Pandemic Response

In Kind Direct’s work in the year continued to be driven by our response to the Covid-19 pandemic. 2021 was focussed on embedding new learnings, continuing to provide a high level of support, and creating our 2025 strategy. We maintained the record impact achieved in 2020 and increased the number of people supported each week. In recognition of the charity’s achievements, we were delighted to be finalists for both the prestigious Third Sector Charity of The Year, and Waste2Zero Best Closed Loop Project awards.

Impact measure 2021
Achieved		 2021
Target		 2020
Achieved		 % Growth
on lastyear
People supported each week 249,000 175,000 174,000 +43%
Value of products distributed £29m £29m £26m +12%
Organisations receiving products 3,198 3,333 3,312 -3%
Orders distributed 33,693 33,000 31,400 +7%
Newpartnersjoiningthe network 952 1,000 1,526 -38%
Average saving for each organisation £9,130 £8,100 £7,850 +16%

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In Kind Direct Company number: 03155226

Essential Support for Local Communities

In Kind Direct’s network comprises a wide range of organisations addressing issues right across the charitable spectrum at a local, regional, and national level. Among the network are community centres, foodbanks, disability support groups, schools, health and wellbeing charities, housing projects, child and youth support groups, and community nurseries. Most of the network are small and locally focussed. 56% have an income less than £100,000 per year and 86% have an income less than £500,000 per year. Over 80% of the organisations we supported are based outside London.

“Being able to access items from In Kind Direct has meant that we have been able to support families and their children within Bridgend Borough. Families who are suffering because of the impact that COVID-19 has had on them financially, emotionally, causing a massive decrease in their mental health and well-being.”

Splice Child and Family Project

Almost 60% work to support those from ethnic minorities. Ongoing restrictions in the year brought significant challenges to charitable organisations, unable to fundraise to maintain their income and meet increasing demand for their support.

Thanks to generous support from the Barclays 100x100 UK COVID-19 Community Relief Fund, we were able to provide account credits to 350 organisations in our network, unlocking at least £500,000 of products to families and households most affected by the pandemic. This was achieved by prioritising regions reporting the highest increase in demand for support (Wales, Scotland, Northern Ireland, Northeast England, West Midlands, and London) and those organisations that had not received crisis funding from other sources.

For a breakdown of the organisations receiving products in 2021 by geographic area and focus area see figures A and B.

Working with our corporate partners, we were able to supply a wide range of the most needed products to our local charitable partners. We identified 17 core product lines, covering essential hygiene and cleaning supplies, as well as products specifically supporting learning, development and safe social interaction. We distributed 33,693 orders to organisations across the UK, and a further £11.5m worth of products through other initiatives including placements and bespoke projects. For a breakdown of goods distributed, see figure C.

A Needs-based Approach

Following a strategic review in 2020, the charity has established a new five-year strategy, placing the needs of people and communities at the heart of strategic decision making. This included consultation with our network of over 4,000 charitable organisations, and a range of corporate and sector partners. We evidenced a significant continuing need for the practical support provided by In Kind Direct, as well as opportunity for the charity to service this demand with new supply and an expanded operation.

Even as the pandemic eased, the economic and social impact continued to reverberate across the UK. We believe no one should be forced to choose whether to heat, eat or keep clean. We know the impact a lack of access to essential hygiene supplies has on mental and physical wellbeing. As well as continuing to provide a broad and inclusive service, we identified three groups where In Kind Direct’s service add particular value. These were:

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In Kind Direct Company number: 03155226

Our activities in the year, and as part of our 2025 strategy, have prioritised these groups. Their needs have informed our product and network recruitment strategies, as well as the partnerships we have strengthened and created.

Our Impact

We regularly gather quantitative data and stories of the impact we generate and how it can be improved. This includes surveys, visits, focus groups and end of order feedback. In our quarterly impact surveys, at least two thirds of our network consistently reported an increase in demand, whilst no less than 40% reported decreased income. In November, we launched an Insights Panel of 90 network partners. This provides a mechanism for in-depth feedback to support the co-design and testing of our communications, campaigns, research and product strategy.

In September 2021 we updated our “ Products in a Pandemic: working together to keep people clean, safe and well” report to cover the period March 2020 to August 2021:

“To remain open safely, we have had to triple the use of PPE and hand sanitizers, hand washing soap and disinfectant, this has had a huge impact on our finances. Without the support of In Kind Direct, we would be looking at reducing staff hours to pay for this. We are eternally grateful for the hard work of the In Kind Direct team and the support they continue to offer communities and charities.” St Peters Pre-School

In 2021, our work meant:

In Kind Direct works at the intersection of social and environmental impact, reducing waste and redirecting products to enable communities to thrive. Our work supports UN SDG 1 (No Poverty), 3 (Good Health & Wellbeing) and 12 (Responsible Consumption & Production). As we work towards our 2025 vision to triple our social impact, we established our carbon emissions baseline in the year, ahead of setting meaningful reduction targets in 2022.

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In Kind Direct Company number: 03155226

Charity & Public Sector Partnerships

In Kind Direct’s values of togetherness and innovation drive our belief that working in partnership achieves more impact for the communities we support.

In May 2021 we celebrated the first year of the Product Giving Alliance with our partners FareShare, International Health Partners and Charity Digital. The Alliance aims to unlock the maximum social good from both surplus and donated products and services, by distributing these in an efficient way to communities. Together, the Alliance provides a single solution for any business wanting to benefit society. By May 2021, £68m of products and services had been distributed by Alliance members, to over 16,700 charities and communities.

We partnered with Business in the Community (BitC) and Charity Digital to deliver the Ditching the Digital Divide virtual roundtable in July. Likeminded companies and charities came together to discuss potential strategic and streamlined solutions to meet the need for increased tech product and digital skills for charities, schools, and communities. As a result of the connections made, in 2022 In Kind Direct will be part of a pilot project to meet the needs of schools.

We regularly work with other sector partners that receive product donation offers they cannot process and facilitate direct placements of products. Specific examples in the year included:

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In Kind Direct Company number: 03155226

Ongoing Brexit negotiations meant our fulfilment to partners in Northern Ireland remained under constant review, following a brief suspension of services in December 2020. Under the extended “grace period”, we were able to keep meeting community needs with small orders. In the year we supported 84 communities with £614,000 of products. We also submitted an expression of interest for membership of the Domestic Advisory Group and Civil Society Forum for the Trade and Cooperation Agreement (TCA). Notification is expected in 2022.

Store & Affiliate Partnerships

Organisations registered with In Kind Direct gain discounted access to office and facility supplies, IT equipment and services, and training via affiliate schemes with Ricoh, Ryman, Robert Dyas, Office Depot, Directory of Social Change and Enterprise Rent-a-Car. Through our Retail Donation Initiative, organisations are matched directly with local Disney Stores.

Sadly, the ongoing disruptions caused to the retail sector by the pandemic meant that our store partnerships, including our partnership with Disney Store, were significantly affected in the year.

Support for overseas relief

Our primary focus remains distributing essential goods to UK charitable organisations for use in the UK. In addition, we also distribute products to UK emergency relief and development charities working overseas in Eastern Europe, the Middle East and Africa. £3.4m (2020: £2.5m) in value of stock was distributed to UK charities supporting emergency relief and development work over the course of the year.

Corporate Partnerships

In Kind Direct engages and accepts goods from a wide range of manufacturers, retailers, and other organisations. We develop mutually beneficial multi-level relationships with our corporate partners. We help them to identify where stock available to donate may exist within their business and we strive to be front of mind for any company which has products to donate. We educate companies on the value of product giving to secure the range of essential consumer products required by charitable organisations and their beneficiaries.

“We are so proud to be supporting In Kind Direct with regular donations of refurbished Micro-Scooters. We want our Scooter Aid scheme to benefit children across the country, and our partnership with In Kind Direct allows us to reach communities in need everywhere in the UK, through a single point of contact.”

Ben Gibson, Managing Director, Micro Scooters

Increasingly, we work with companies and brands to develop high impact collaborative campaigns. By working with In Kind Direct, brands can deliver on their corporate responsibility objectives, enhance, and protect their reputations and build awareness and conversion.

Key brand campaigns run in the year included:

“‘We’re committed to ensuring no family goes without baby essentials such as nappies and through partnerships like this with In Kind Direct, we can help be there for babies and their families when they need us.” Selina Butler Baby & Fem Care Communications Manager, Pampers

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In Kind Direct Company number: 03155226

Overall, we received 6,417 pallets of goods (equivalent to 247 lorry loads) from 118 companies during the year, 44 of which were new to working with us. This was almost 80% of the volume donated during the first wave of the pandemic across 2020 (8,078 pallets).

For a full list of organisations donating product in the year see page 6.

Fig C: Value of donated goods distributed in 2021 by product category

Campaigns & Brand

In the year, we ran campaigns across different communication channels aimed at raising awareness of our work and opportunities to address topical issues. As well as providing a calendar of engagement for current and prospective corporate partners, campaigns offer a strong mechanism for recruiting new charitable organisation to our network, and securing local, regional, and national PR coverage.

In the year we also began work to establish our tone of voice and develop awareness of our brand, and its potential. This positioning work will continue into 2022, as we relaunch our websites, continue our PR and social media efforts, and celebrate our 25[th] anniversary. We recruited a new Marketing Manager role to oversee these activities.

“‘We had a resident who had been showering in washing up liquid. Since we’ve been able to provide them with shower gel and hair products, she said she is feeling 'human' again".

Streets Ahead for Information

Across the first half of the year, we ran our #commUNITY campaign. From February, the first campaign wave focussed on the reopening of community hubs and centres. The second wave focussed on supporting families and children’s mental health and wellbeing.

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In Kind Direct Company number: 03155226

In July, we launched #SummerOfPlay in partnership with Save The Children. It supported children and lower-income families to get active during the summer, recognising the impact of lockdown restrictions on children’s wellbeing and development. We distributed toys, games, sport supplies and books across the summer holidays. The insight of our network to identify key needs drove our conversations, including with five new companies, collectively donating 60,000 products. Through this six-week campaign, we distributed almost £500,000 of essential products to 1,400 local organisations.

In November and December, our “Warmth This Winter” campaign provided support to over 1,500 organisations in our network and focussed on our belief that everyone should feel emotional and physical warmth. Centred around a real essentials gift list of hygiene and other products, eight pieces of PR coverage were secured, across regional titles and radio. Over 75,000 winter products were distributed, and 126 charitable organisations joined our network.

Warehouse & Logistics

With a dramatic and sustained increase in orders, the increased demand and lockdown restrictions of the pandemic continued in the year. Based on our learnings from 2020, we remained operational throughout the entire year, with appropriate safety measures in place.

Over our twenty-five year operational history, we have developed a deep understanding of the specific processes and strategies required to deliver an efficient service for our corporate and charitable partners. Our Telford pick and pack operation and courier management is provided by a third party contractor, The Service Business (TSB), with whom we have worked closely to improve performance and efficiency since 2009. During further lockdown periods, the TSB fulfilment team maintained a weekly furlough cycle.

Operational efficiencies were achieved across the year, with streamlined picking, packing and storage solutions, as well as the rationalisation of temporary staff support. Orders were fulfilled more quickly, meaning products reached network partners and individuals that much sooner. Costs were also rationalised, with total logistics savings of over £130k in the year. Haulage costs and delays were experienced across the UK towards the end of the year, and In Kind Direct was no exception. Increased costs were largely offset by operational efficiencies and enabled robust cost modelling to support longer-term strategic planning. The charity experienced delays in some donations reaching the warehouse, due to the national shortage of lorry drivers.

As we embedded lessons from 2020, we continued our logistics review to facilitate projected growth. Our thanks to Mark Aspinall and Javelin for their generous support in this process.

The trustees extend their gratitude to TTS for their continued support with additional storage and transportation between warehouses across the year.

Because of the quantity, nature, and complexity of the products we handle, In Kind Direct has unique challenges in processing donated stock for distribution. Often, the product donations we receive from companies are hugely mixed and difficult to identify and categorise prior to reworking. This makes it impractical to value goods on receipt and, accordingly, goods are valued after being sorted, prepared and ready to be made available to charitable organisations.

Our well-established warehouse volunteer programme sees teams of volunteers from our corporate partners come into the warehouse to sort, pack and prepare donations of stock for distribution. With the lifting of some pandemic restrictions, we welcomed four groups from Lloyds Banking Group and Essity TORK in the year.

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In Kind Direct Company number: 03155226

Systems & IT

In Kind Direct has a reputation for high quality IT systems that give an excellent standard of service and support to our customers. Our primary business applications, infrastructure, web platforms and data services are managed internally, with support from key suppliers. All aspects of the service are monitored for availability, scalability, and security.

Thanks to our prior program of investment in cloud technology and the resilience and flexibility it provides, In Kind Direct remained well positioned to adapt its operations as the pandemic continued. Office-based staff were able to move successful between fully remote and hybrid working patterns as necessary. We recognise the adaptability of the team who together ensured the charity to exceed key KPIs and scale up our operations.

Throughout the year, traffic and volumes on our e-commerce and operational systems remained above pre-pandemic levels. Despite this, customers continued to receive the stable and consistent service they are used to. The charity continued to develop its systems and use of technology. This included:

Equality, Diversity and Inclusion, HR & Restructuring

From September, we carried out an Equality, Diversity and Inclusion (EDI) review with all staff and trustees, supported by external consultants, Social Justice Collective. Building on our new purpose, values and 2025 vision as well as the updated Charity Governance Code, we want In Kind Direct to be an inclusive organisation, and ultimately to reflect more fully those we exist to serve. Awareness sessions, workshops and a people survey in the autumn helped inform our approach and next actions. From 2022 we will be delivering our new holistic People Plan.

With a new leadership team in place from December 2020, five new manager roles were recruited in the year to support our growth. In November we continued the transition to a structure to deliver on our 2025 vision. By mid-2022, a further six new roles will be recruited. This will allow us to address skills gaps, support the creation and stewardship of impactful partnerships, utilise our systems to deliver robust reporting and financial planning, and establish our voice externally.

In Kind Direct is fortunate to benefit from a dedicated and skilled staff team who have performed very well during this challenging period. We provide a range of staff benefits including performance related remuneration, insurance, learning and development opportunities, volunteering leave, health reimbursement scheme, cycle to work and childcare voucher schemes.

Our paid internships provide six to nine months’ experience within a dynamic work environment. We are delighted that the intern scheme has helped provide a valuable starting point for individuals looking to start a career within the sector. In the year, no new internships we created. The two interns recruited in 2020 both successfully moved into permanent roles with the charity.

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In Kind Direct Company number: 03155226

In Kind Direct International (IKDI) Network

In the year, there were four IKDI network members: In Kind Direct, the founder member; Innatura, a German licensee; Dons Solidaires, a French licensee; and In Kind Direct (Singapore). Collectively to date, IKDI network members have distributed goods with an estimated retail value of £630 million, received from more than 1,660 corporate product donors, to over 15,800 charitable organisations. During 2021, work took place to support the establishment of new network members in Switzerland and Italy:

IKDI continues to review opportunities for potential expansion of the IKDI network.

In Kind Direct (Singapore) was granted charitable status in March 2021. Operations in Singapore continued to grow in the year, with the receipt of regular donations from two multinational donors. 29 charities received goods from In Kind Direct (Singapore) during the year. A review of the operating model was being carried out to assess the future strategic direction.

Demand for the services of established IKDI network members in the UK, France and Germany, continued during 2021, as network members supported communities affected by the Covid-19 pandemic. IKDI network members continued to work collaboratively during 2021, sharing know-how, experience, innovation, and donations, when appropriate. Regular conference calls were held throughout the year and the 2-day annual conference in November 2021 took place once again as a virtual event, due to the pandemic.

Since the IKDI network was formed in 2013, IKDI network members have shared donated goods between network members with an estimated retail value of £15.5 million. Goods are shared between network members if they are surplus to the requirements of the receiving network member or because a particular type of product is better suited to use in another country, for example due to need, size, labelling or configuration.

The financial results of IKDI have been consolidated in the Statement of Financial Activities and balance sheet of the In Kind Direct group, as In Kind Direct is the sole legal member of IKDI. This was the eighth year that IKDI has operated.

During 2021, IKDI received the following income:

Unrestricted Restricted
Licencefees £39,000 -
Other income £227 -
Donations and gift aid £35,000 -
Total income £74,227 -

IKDI’s expenditure was as follows:

IKDI’s expenditurewas asfollows:
Unrestricted Restricted
Staffcosts £57,224 -
Audit and accounting services £1,450 -
Licencefees toIKD £2,998 -
Legal fees £5,465 -
Other costs £731 -
Total expenditure £67,868 -

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In Kind Direct Company number: 03155226

IKDI’s reserves at the end of 2021 were:

Unrestricted Restricted
Balance on 1January2021 £64,235 £16,333
Movement during2021 £6,359 -
Balance on 31 December
2021		 £70,594 £16,333

Fundraising & Income Generation

In Kind Direct has a diversified income base comprising the following streams:

1) Contributions paid for our service by benefiting charitable organisations

It is free for charitable organisations to join our network. On ordering, charitable organisations pay a small charge which is a contribution to our costs for the provision of goods and includes UK delivery. This revenue is a crucial part of our income mix. In addition, we are required to levy a charge to protect donor companies from otherwise incurring VAT on the value of their donated goods. In 2021, we received contributions from recipient organisations of £2.2m, a decrease of 6% on the previous year (£2.3m).

2) Trading income

In Kind Direct has a wholly owned trading subsidiary called Trading IK which was set up in 2009 to help develop commercial income streams for the charity. All trading company net profits are gift aided to In Kind Direct.

One strand of the work is the public sale of goods donated to In Kind Direct, which are not suitable for distribution to our charity partners or are in excess of their requirements and have a commercial value. Products are sold via eBay, directly to purchasers or via partner organisations. No product is ever considered for this route without the explicit permission of the donating corporate partner, and consideration of the needs of our charitable partners.

Trading IK also facilitates various affiliate marketing schemes giving charitable organisations access to discounted products and services, particularly in categories where In Kind Direct struggles to secure adequate supplies of donated product. In 2021, we continued our existing schemes with Ryman, Staples Solutions, Robert Dyas, Office Depot and Enterprise Rent-a-Car to provide discounted access to office supplies, IT equipment and services to our charitable partners. Several of these schemes were severely affected by Covid-19 restrictions.

3) Fundraising

Another essential part of our income is support from companies, trusts & foundations and individuals who understand and are inspired by the unique impact of In Kind Direct’s work. Fundraising is particularly important in ensuring charges for providing goods are as low as is sustainable. This ensures our service remains accessible to smaller charitable organisations who rely on the products we provide. Without our Patrons and other funders’ support, our ability to maintain our service and trial new initiatives would simply not have been possible.

In Kind Direct’s fundraising in 2021 was carried out by employed staff and a retained consultant. In December, a new Philanthropy Partnerships Manager was recruited. Our activities principally comprised seeking funding from trusts and foundations and the development of partnerships with companies and individuals through our Patrons programme. We did not use professional agencies to carry out fundraising activities in the year.

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In Kind Direct Company number: 03155226

Several corporate partners provided significant financial support during the year in tandem with product donations, including Procter & Gamble, Primark, Amazon and Essity TORK. Our thanks also go to Lloyds Banking Group, our longest standing funder, for their continued stalwart support, and to Santander for their support to explore ways to address the UK’s digital divide.

In October, we were delighted to host a Patrons event in London, as Covid-19 restrictions were eased. We welcomed individuals, grant givers and corporate partners to hear about our impact during the pandemic, and our 2025 vision. It was a wonderful opportunity to reconnect with longstanding partners in person, and to nurture new relationships. After being postponed in 2020, the London Marathon also went ahead, and we extend our enormous thanks to Daniele Sassoli and Tina Lally, who ran for In Kind Direct and together raised £2,600. We also carried out small scale public facing fundraising campaigns using the JustGiving platform.

In Kind Direct is a member of the Fundraising Regulator. We work hard to comply with the Code of Fundraising Practice for the UK across all our fundraising activities. We comply with the key principles and behaviours of the Code to ensure that any vulnerable persons are treated fairly. No complaints about fundraising activity were received during the year.

We require signed agreements from all of those who fundraise on our behalf controlling any use of our logo or branding. We had two Commercial Participation Agreement relating to financial donations in place during the year with a corporate partner. Where we do work with third parties such as corporate partners to raise funds, we have agreements in place with close monitoring of performance in line with these agreements.

In what has been a particularly challenging time for many we are hugely grateful and extend our thanks to everyone who provided support to the charity throughout the year.

Volunteers & Pro Bono Support

In Kind Direct’s long-running warehouse volunteer scheme continued to be disrupted by the pandemic. Towards the end of the year, we welcomed four groups from Lloyds Banking Group and Essity TORK as restrictions allowed.

We were fortunate to receive the support of several companies and individuals who provided their services pro bono during the year. Our particular thanks go to Mark Aspinall at Javelin, regarding their support through our strategic review process regarding our logistics and operations.

The Trustees are hugely grateful to everyone who supported the charity through volunteering and donating time and expertise this year.

Financial review of 2021

Financial review of 2021
2021 2020 Variances
£ £ £ %
Charges for distributing goods 2,174,115 2,339,205 (165,090) -7%
Unrestricted donations 318,983 710,536 (391,553) -55%
Restricted donations 36,000 152,000 (116,000) -76%
Total donations 354,983 862,536 (507,553) -59%
Tradingcompany gross income 242,528 113,100 129,428 114%
Gift aid donation from tradingcompany 96,599 55,278 41,321 75%
Charitable activitycosts 2,786,858 2,718,106 68,752 3%
Support costs 1,906,312 1,586,258 320,054 20%

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In Kind Direct Company number: 03155226

In Kind Direct’s logistics operations generated income of £2.17m (2020: £2.34m). Revenue charges income decreased slightly by £165k compared to 2020. The charity maintained the record growth of 2020, demonstrating that sustainable growth will be possible in future years.

Trade income through the trading company has more than doubled in the year to £242,528. This was due to new initiatives to generate income from products not suitable to support the work of our network partners, that would otherwise have gone to landfill or incineration. This meant that the gift aid payment from the trading company to In Kind Direct also increased from £55,278 in 2020 to £96,599 in 2021.

Over £29m of In Kind Direct's expenditure was the value of the products distributed which is offset by the same amount recognised as an income for accounting treatment purpose. As outlined previously, the nature and complexity of the products donated to In Kind Direct make it nearimpossible to value goods at the point of receipt. A further £1.114m related to the costs of our logistics operation; the costs of maintaining our online ordering system; and the costs of In Kind Direct employees engaged in sourcing goods and servicing charity partners, as well as warehouse, distribution, and office expenses. See note 6 for an analysis of our expenditure.

Plans for the Future

In 2021, we created our 2025 vision, building on the extensive review and planning process initiated in 2020. Our ambition is to triple our impact through to 2025 (on a 2019 base). Our broad strategic priorities are summarised below. Each year we will review our organisational objectives to ensure we remain on track to meet this ambitious target.

Our Strategic Priorities

1. Transform our corporate partnerships

We build partnerships of equals with our corporate partners. We will develop bespoke programmes with our donors which lead to consistent and increasing supply of core products. We will communicate the impact of partnerships in an engaging, valuable and real-time manner.

2. Meet more of the needs of our communities

We will use data effectively to map need, fill gaps and drive decisions. Consistent product supply is key. We will add value for our partners and spread best practice. We will better target new partners with focused sector partnerships and improved, impactful storytelling.

3. Drive operational efficiency

We will review our operating model to build in flexibility and enable growth. We will automate and streamline key systems and use data to inform decisions across teams. We will understand our costs and ROI, and implement cost savings where possible.

4. Develop a more consistent and broad-based funding model

We will grow sustainable and long-term support from our corporate partners. We will reduce concentration risk by growing our pipeline of funders and shift to a proactive fundraising strategy. We will innovate and develop packages of funding for projects and impact.

5. Build a strong, fit for purpose organisation with a thriving culture

We will invest in our team as the foundation of our success. We will continue to build a safe and inclusive organisation that lives its values. Data and insight will drive efficiency and resilience. Impact will underpin our strategy, developing our voice to push for systemic change.

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In Kind Direct Company number: 03155226

Operational Plan for 2022

As we work toward our long-term strategic goals, our operational plans and objectives for 2022 are summarised below. All key metrics will feed into six organisational measures of success:

We have embedded the “In Kind Direct Approach” across the organisation, ensuring the delivery of our operational plans and wider strategic ambition aligns with our purpose and values.

The In Kind Direct Approach

Objective SummaryPlans
1.More of the right
product at the right time		 •
Reinvigorated corporate partner strategy, focussed on Big 17
core products lines
•
Ownership and strategic plan for impact beyond our
catalogue
•
Innovative solutions for specialist product e.g., tech
•
Employee engagement programme for corporate partners
2.Better understand
those we serve and our
impact		 •
Delivery of four strands of commissioned research
•
Enable a user-developed service through Insights Panel,
surveys, and inclusion in research scoping
•
Impact assessment review and continuous improvement
•
Network development strategy driven by end user needs and
where In Kind Direct can havegreatest impact
3.Grow our profile and
supporter base		 •
Development of corporate website and ecommerce platform
to improve user experience and engagement
•
25thAnniversary programme
•
Sector strategy focus for great impact, and to determine
where In Kind Direct has a voice for change
•
Patrons programme, focussed on multi-year support
4.Operational excellence
driving insight and
efficiency		 •
Operational review completed and recommendations
implemented
•
Systems migration, automation and improvements including
account management, finance and fundraising
•
Real time reporting and dashboarding to support self-serve
for internal and external stakeholders
•
Know, track and reduce our cost to serve, to support a pricing
model review
•
Improve customer onboarding and key journeys

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In Kind Direct Company number: 03155226

5.An organisation that
lives its values		 •
Implementation of EDI recommendations and framework
•
Governance review and trustee recruitment
•
Team development – 6 new roles
•
Develop staff benefits including learning and professional
development opportunities
•
Carbon emissions baseline and reduction targets

Structure, governance and management

In Kind Direct was founded in 1996 by our Royal Founding Patron, HRH The Prince of Wales. There are twelve trustees who meet quarterly as a Board, as does the Finance and Governance Committee. The latter Committee also constitutes the Remuneration Committee. There is also a Nominations Committee which meets as required.

New trustees are recommended by the Nominations Committee and appointed by the members in general meeting. The Board may appoint trustees to hold office until the next AGM where the appointment is approved by the members. Trustees are subject to retirement by rotation.

New trustees are given copies of the charity’s legal documents, management information and accounts, together with general reading material about the charity and Charity Commission literature. This is followed by meetings with the Chief Executive and at least one other trustee as part of the induction process.

Trustees are sent training updates as appropriate throughout the year and are encouraged to visit and learn from the organisations benefiting from In Kind Direct’s work and their beneficiaries. Network partners regularly share their impact and feedback at Board meetings.

In Kind Direct is also a company limited by guarantee. When a term of appointment as trustee/director ceases, membership of the company also ceases. In the event of winding up, the liability of each member of In Kind Direct is limited by guarantee to £10.

Day-to-day management of the charity is delegated to the Leadership Team led by the Chief Executive. Formal reporting by the Chief Executive to Trustees takes place regularly throughout the year. At the end of the period under review there were fifteen full-time and six part-time staff.

Since late 2020, In Kind Direct has been undertaking a Governance Review. A sub-group of the Board of Trustees and senior staff was created with delegated authority to explore, review, and recommend improvements to current practices. In September, this working group was disbanded, and the Finance and Audit Committee was reconvened as the Finance and Governance Committee with updated terms of reference and membership. The Governance Review is ongoing and will be completed in 2022. The extension of the Review was to accommodate the timing of, and enable the full engagement with, the charity’s EDI Review which began in September. As well as a review of all operational and staff policies, changes to the Governance Code of Practice in 2020 will also be incorporated to the Governance Review, alongside developing and reviewing processes around how trustees are recruited, upskilled and their performance reviewed. These steps will align with our broader People Plan, building transparent and inclusive practices for all staff and volunteers.

Financial policies

Reserves policy

In 2018, the Board’s review of the reserves policy concluded that the charity should aim to achieve unrestricted reserves equivalent to at least four months’ operational cashflow (2021: £567,000), with a longer-term aspiration that the Group achieve a minimum of six months’ unrestricted

23

In Kind Direct Company number: 03155226

reserves. This policy is assessed annually by the Finance & Governance Committee to ensure that it remains appropriate. The Group reserves as at 31 December 2021 were as follows:

Unrestricted reserves £ 761,823 Restricted reserves £ 698,380 Designated reserves £ 635,000

Total Group reserves as at 31 December 2021 £ 2,095,203

The Group unrestricted reserves balance of £761,823 equates to 5.3 months of operating costs for In Kind Direct and represents a decrease of £515,984 compared to the previous year (2020: £1,277,807). This is mainly due to the designation of £635,000 for specific projects to deliver our 2025 strategy, which is offset with an operating surplus of £119,016 in the year.

This means that the Group ended the year having achieved reserves in line with it reserves policy. The designated budget approved by the Trustees included a new warehouse and systems upgrade & integration logistics platform, upgraded websites and commissioned research.

Within the restricted funds (note 15a), £656,303 relates to the grant income received and receivable from Lloyds Banking Group towards the cost of In Kind Direct’s offices, less expenditure to date. This includes an accrual of the remaining grant income receivable. A further £30,800 is being retained as a separate restricted fund to pay for office dilapidations, should a break clause within the lease be exercised after 4 years.

Investment policy

In Kind Direct’s investment policy is to place funds in excess of short-term commitments on deposit for one to three months, leaving a sufficient balance in the current account. It is the opinion of the Board of Trustees that the interest earned is paid at a competitive market rate and that these investments perform to an acceptable level. Currently no funds are held on deposit. A review of the charity’s investments will be carried out in 2022.

In Kind Direct’s policy with regard to donated shares is that they will generally be sold at the earliest opportunity subject to any restrictions on sale. Staff seek concurrence prior to any proposed disposal from a member of the Finance and Governance Committee before either proceeding with the sale or give an explanation for not realising the value as soon as the restriction has lapsed. Currently no donated shares are held.

Executive Pay and Remuneration

Our approach to pay is to provide fair remuneration packages for people who can help the charity to maximise its impact. To do this we seek to balance the need to attract, develop and retain individuals with a need to ensure value for money for the charity.

We aim to provide remuneration packages and benefits that are competitive within the charity sector, proportionate to the complexity and scope of each role, and in line with our charitable objectives. We meet all national pay standards and provide all staff including interns with the Real Living Wage as a minimum.

The Remuneration Committee of the Board reviews and monitors senior staff pay, including the pay of the Chief Executive. Periodically, remuneration levels are reviewed and benchmarked by outside industry specialists.

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In Kind Direct Company number: 03155226

Qualifying indemnity insurance

The charitable company has granted an indemnity to its directors and officers against liability in respect of actions brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity insurance remains in force as at the date of approving the Trustees’ report.

Risk policy and management

The Trustees review the assessment of major risks to which the charity is exposed. The Leadership Team has compiled a risk register, which they also regularly monitor and amend as necessary. Risks are scored by likelihood and impact both prior and post mitigation measures taken. Management of risks with strategies to minimise and mitigate them is an ongoing task of the Leadership Team. Changes are reported to the Board at quarterly meetings. The top three risks faced by the charity at December 2021 were:

Risk Example Management & Mitigation Measures
Excessive reliance on a small
number of companies/key
contacts at these companies		 •
New business development to spread risk
•
Strengthen relationships with current partners
•
Multi-layer stewardship across organisations
•
Corporate Partner tiering process in place
•
Regular reporting and migration to Dynamics
Reliance on key staff to maintain
business continuity		 •
Regular leadership team meetings
•
3 month notice period for new managers
•
Documentation of all operational processes
•
Handover across Leadership team for periods of leave
•
Robust change management process to maintain
business continuity during transition periods
•
Training on key tasks shared across functions
Failure to provide goods
requested/needed by charity
partners		 •
Regular communication across teams to identify core
product categories and quantify need
•
Strengthen relationships with current partners
•
Monitoring of type and quantities of products requested
•
Process for Goods Acceptance

Environmental policy

In Kind Direct, a registered charity, distributes product from manufacturers and retailers to UK charitable organisations working at home and abroad. As well as helping charitable organisations, our work has a positive impact on the environment by diverting goods that might otherwise go to waste as landfill or external recycling, generating greenhouse gases. We also support an environmentally conscious approach by:

We recognise our obligation to comply with the law and to carry out our work in an as environmentally sound manner as possible. In the year we established our baseline carbon emissions, to help us to set meaningful reduction targets from 2022.

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In Kind Direct Company number: 03155226

In Kind Direct is committed to supporting a just transition to net zero and reducing the environmental impact of our operations and service delivery. We commit to monitoring our carbon emissions and resource usage. We will also establish a decision-making framework which supports staff to assess actions and services that have a positive environmental impact, but which may require more resource to implement, as well as the impact of new projects.

Our environmental statement and full environmental policy is available on our website.

Directors and trustees

The directors and trustees of In Kind Direct during the year and up to the date the accounts were approved were as follows:

Debra Allcock Tyler
Scott Barton
Graham Burridge
Barry Furlong
Tim Hinton
Graham Inglis
Ajay Kavan
Tom Moody
Martin Newman
Andrew Rubin Resigned 31 March 2022
Teresa Tideman (Chair)
Richard Wolff
Alec Grant Appointed 29thJune 2022
Ayshea Farooq Appointed 29thJune 2022
Chirag Patel Appointed 29thJune 2022

Changes in fixed assets

£15.1k was invested in fixed assets in 2021 relating to video conferencing equipment & investment on the accounts payable automation systems in response to changes to the way we operated during the pandemic.

Statement of trustees' responsibilities

The Trustees, who are also directors of In Kind Direct 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 trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

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In Kind Direct Company number: 03155226

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and group 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure to the auditor so far as the Trustees are aware:

Related Parties

None of In Kind Direct’s trustees are employed by a company with which In Kind Direct has a commercial relationship. However, one of the Trustee (Graham Burridge) was engaged as a consultant and paid for his service as interim finance manager until the position was filled (see note 8).

Trading IK Ltd is the wholly owned trading subsidiary of In Kind Direct. Graham Burridge, who is Chair of the subsidiary, is also a director/trustee of In Kind Direct. Rosanne Gray, Chief Executive also served as a directors of Trading IK Ltd during the year. Linda Kelly, Head of Finance left In Kind Direct, also serving as a director for TIK, in the year.

In Kind Direct is the sole legal member of IKDI. Three director/trustees of In Kind Direct are director/trustees of IKDI. They are Teresa Tideman, Graham Inglis and Richard Wolff. Rosanne Gray, Chief Executive of In Kind Direct is also a director/trustee of IKDI.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Auditors

Haysmacintyre LLP is deemed to be reappointed under section 487(2) of the Companies Act 2006.

On behalf of the Board

T M Tideman

Teresa Tideman

Date:…………………….. 28th August 2022

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In Kind Direct Company number: 03155226

Independent Auditor’s report to the members of In Kind Direct Opinion

We have audited the financial statements of In Kind Direct for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated and Company Statement of Cash Flows and notes to the financial statements. 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 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 group'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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. 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.

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.

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In Kind Direct Company number: 03155226

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 group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual 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 for the financial statements

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company 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 and the parent charitable company’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 the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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:

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In Kind Direct Company number: 03155226

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company'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 charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and charitable company’s members, as a body, for our audit work, for this report, or for the opinion we have formed.

……………………. Richard Weaver (Senior Statutory Auditor) for and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date:…………………….. 30 August 2022

30

In Kind Direct Company number: 03155226

Consolidated Statement of Financial Activities (including income & expenditure account) for the year ended 31 December 2021

s
Notes
INCOME
Income from donations
Value of donated goods distributed
4
Donations
3
Donated services for own use
4
Income from charitable activities:
Retail donation registration fees
Charges for providing goods
Other charitable income
Income from other trading activities:
Commercial trading operations
5
Investment income
TOTAL INCOME
EXPENDITURE
Costs of Raising Funds:
Costs of Raising Funds
6
Costs of Trading Activities
6
Expenditure on Charitable Activities:
Distribution of donated goods
6
Other Charitable Costs
6
TOTAL EXPENDITURE
6
Net Income for the Year Before Transfers
Gross Transfers Between Funds
Net Movement in funds
Funds brought forward at 1 January
Funds carried forward at 31 December
15a		 Unrestricted
Funds
£
29,198,822
318,983
97,874
-
2,174,115
65,482
242,528
-
32,097,804
103,685
73,551
177,236
29,198,822
2,602,730
31,801,552
31,978,788
119,016
-
119,016
1,277,807
1,396,823		 Restricted
Funds
£
-
36,000
-
-
-
-
-
-
36,000
11,177
-
11,177
-
184,128
184,128
195,305
(159,305)
-
(159,305)
857,685
698,380		 Totals
2021
£
29,198,822
354,983
97,874
-
2,174,115
65,482
242,528
-
32,133,804
114,862
73,551
188,413
29,198,822
2,786,858
31,985,680
32,174,093
(40,289)
-
(40,289)
2,135,492
2,095,203		 Unrestricted
Funds
£
16,302,722
710,536
252,305
3,315
2,339,205
72,851
113,100
212
19,794,246
88,027
54,222
142,249
16,302,722
2,560,741
18,863,463
19,005,712
788,534
-
788,534
489,273
1,277,807		 Restricted
Totals
Funds
2020
£
£
10,002,005
26,304,727
152,000
862,536
-
252,305
-
3,315
-
2,339,205
-
72,851
-
113,100
-
212
10,154,005
29,948,251
5,240
93,267
-
54,222
5,240
147,489
10,002,005
26,304,727
157,365
2,718,106
10,159,370
29,022,833
10,164,610
29,170,322
(10,605)
777,929
-
-
(10,605)
777,929
868,290
1,357,563
857,685
2,135,492

The financial activities above relate wholly to the continuing activities of In Kind Direct. There are no recognised gains or losses other than those dealt with in the above statement.

The notes on page 35 to 46 form part of these financial statements.

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In Kind Direct Company number: 03155226

Consolidated Balance Sheet at 31 December 2021

----- Start of picture text -----
Notes Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2021 Funds Funds 2020
£ £ £ £ £ £
Fixed assets
Tangible assets 10 1,393 - 1,393 3,607 - 3,607
Intangible assets 11 71,748 - 71,748 92,424 - 92,424
- -
Public benefit concessionary loan 20,000 20,000 20,000 20,000
Fixed Assets 93,142 - 93,142 116,032 - 116,031
Current assets
Debtors 13 130,866 368,716 499,582 129,087 519,023 648,110
Cash at bank and in hand 1,384,319 329,664 1,713,983 1,326,689 338,662 1,665,351
1,515,184 698,380 2,213,565 1,455,776 857,685 2,313,461
Creditors: amounts falling
due within one year 14 (211,503) - (211,503) (294,000) - (294,000)
Net current assets 1,303,681 698,380 2,002,062 1,161,775 857,685 2,019,460
Net assets 1,396,823 698,380 2,095,203 489,273 868,290 2,135,492
Funds
Balance at 1 January 1,277,807 857,685 2,135,492 489,273 868,290 1,357,563
Movement in Funds 119,016 (159,305) (40,289) 788,534 (10,605) 777,929
Balance at 31 December 15a 1,396,823 698,380 2,095,203 1,277,807 857,685 2,135,492
----- End of picture text -----

These financial statements were approved and authorised for issue by the directors and were signed on their behalf by:

T M Tideman

Teresa Tideman

Director and Trustee

28th August 2022

Date:……………………..

The notes on page 35 to 46 form part of these financial statements.

32

In Kind Direct Company number: 03155226

Company Balance Sheet at 31 December 2021

Notes
Fixed assets
Tangible assets
10
Intangible assets
11
Investments
12
Current assets
Debtors
13
Investments
Cash at bank and in hand
Creditors: amounts falling
due within one year
14
Net current assets
Net assets
Funds
Balance at 1 January
Movement in Funds
Balance at 31 December
15b		 Unrestricted
Funds
£
1,393
71,748
1
73,142
123,034
-
1,237,065
1,360,099
(190,924)
1,169,175
1,242,317
1,166,961
75,356
1,242,317		 Restricted
Funds
£
-
-
-
-
368,716
329,664
698,380
-
698,380
698,380
857,685
(159,305)
698,380		 Total
2021
£
1,393
71,748
1
73,142
491,750
-
1,566,729
2,058,479
(190,924)
1,867,555
1,940,697
2,024,646
(83,949)
1,940,697		 Unrestricted
Funds
£
3,607
92,424
1
96,032
106,588
-
1,243,612
1,350,200
(279,271)
1,070,929
1,166,961
366,740
800,221

1,166,961		 Restricted
Funds
£
-
-
-
-

519,023
-
338,662
857,685
-

857,685
857,685
868,291
(10,606)
857,685		 Total
2020
£
3,607
92,424
1
96,032
625,610
-
1,582,274
2,207,885
(279,271)
1,928,614
2,024,646
1,235,031
789,615
2,024,646

In Kind Direct has taken advantage of the exemption under section 408 of the Companies Act 2006 not to present the Statement of Financial Activities and Income and Expenditure Account of the parent charitable company in these financial statements. Income of the parent company amounted to £32,017,947 (2020: £29,859,964). The result for the year is a net movement of funds of (£83,949) (2020: £789,615).

These financial statements were approved and authorised for issue by the directors and were signed on their behalf by:

T M Tideman

Teresa Tideman

Director and Trustee

28th August 2022 Date:……………………..

The notes on pages 35 to 46 form part of these financial statements.

33

In Kind Direct Company number: 03155226

Consolidated and Company Statement of Cash Flows

Notes
Cash provided/(used in) by operating activities
20
Cash flows from investing activities
Interest income
Transfer of cash to current asset investments
Purchase of fixed assets
Cash (used in) investing activities
Cash flows from financing activities
Increase/(decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 Group
2021
£
63,730
-
-
(15,098)
(15,098)
48,632
1,665,351
1,713,983		 Group
2020
£
1,226,439
212
-
(36,551)
(36,340)
1,190,099
475,252
1,665,351		 Charity
2021
£
(447)
-
-
(15,098)
(15,098)
(15,545)
1,582,274
1,566,729		 Charity
2020
£
1,249,676
212
-
(36,551)
(36,340)
1,213,336
368,938
1,582,274

No analysis of changes in net debt is presented as the charity and group has no borrowings.

34

In Kind Direct Company number: 03155226

Notes to the Financial Statements – year ended 31 December 2021

1. Principal accounting policies

General Information

In Kind Direct is a charitable company limited by guarantee, incorporated in England and Wales (company number 03155226) and registered with the Charity Commission (charity registration 1052679). The registered office address is: 11 – 15 St Mary at Hill, London, EC3R 8EE.

Basis of Preparation

The financial statements have been prepared under the historical cost convention, and in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts, the Companies Act 2006 and applicable accounting standards (FRS 102). In Kind Direct meets the definition of a public benefit entity under FRS 102.

Basis of Consolidation

The consolidated accounts of the group incorporate the accounts of the charity and its subsidiary undertakings as per note 5 of their accounts. The accounts have been consolidated on a line-by-line basis, after eliminating the intercompany balances and transactions in full.

Going concern

The trustees are confident that In Kind Direct will remain a going concern and that there are no known material uncertainties about the charity’s ability to continue. A cash flow forecast has been prepared for the 12-month period following the date of signing of the accounts. This forecast includes all funding received to date as well as committed funding. Assumptions have been made around charges for goods income that show an increase of 16% growth against the 2021 targets which is line with the 2025 strategy. Unrestricted cash balances remain positive for the whole period and are expected to exceed the minimum requirement of £100,000.

Fund Accounting

Unrestricted funds (both general & designated) include funds and goods donated for distribution. Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds are unrestricted funds of the charity that the trustees have set aside for particular purposes. The Board of trustees agreed in 2021 to ringfence £635k of the unrestricted reserve for specific projects to support the 2025 strategy growth (see note 15 for details).

Restricted funds are funds and goods donated for distribution, which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for a specific purpose. The cost of raising and administering such funds is charged against the funds. The aim and use of each restricted fund is set out in the notes to the financial statements.

35

In Kind Direct Company number: 03155226

Income

All income is recognised in the SOFA when the charity has entitlement to the income, there is reasonable certainty of receipt, and the amount can be measured. Event income and charges for our service providing products are treated as income of the period to which they relate. Registration fees are generally non-refundable and are applied to income at the beginning of the year to which they relate. Interest receivable is treated as income of the period in which it accrues.

Goods and services donated for the charity’s own use

Goods, office cleaning and printing facilities, consultancy work and other services donated for the charity’s own use are recognised in the Statement of Financial Activities as both income and expenditure or capitalised if it is a capital item on the basis of the value of the gift to the charity.

Goods donated for onward distribution

Goods donated for onward distribution are included as both income and expenditure, at the time of distribution, at a reasonable estimate of their original market value, less adjustments to reflect condition where the goods are not in their original pristine condition. By their very nature, the product donations we receive from companies are often hugely mixed and difficult to identify and categorise without manual sorting and reworking. This makes it near-impossible to value goods on receipt.

Expenditure

Expenditure is classified in accordance with the Statement of Recommended Practice as shown below:

Charitable Activities - all expenditure directly relating to the objects of the charity including the direct cost of supporting charitable activities and covers the following activities as incurred:

Identification of potential donors, obtaining donated goods for onward distribution, the processes for distributing, reporting and accounting for those goods; the recruitment and registration of charities and maintenance of data relating to those charities.

Governance Costs – Being financial, legal, and administrative expenses incurred in connection with enabling the charitable company to comply with external regulations, constitutional and statutory requirements; and in providing support to the trustees in the discharge of their statutory duties. These costs are included within support costs.

Costs of Generating Funds - The costs incurred to obtain voluntary contributions to the charity including expenditure on increasing In Kind Direct’s general resources other than through obtaining registration income or goods for distribution and for improving general awareness of In Kind Direct within the overall community.

Support Costs - Expenditure incurred on activities falling directly within one expenditure classification is charged directly to that classification. Expenditure incurred on activities falling in more than one cost category is apportioned as follows:

According to the time spent by each member of staff on activities within that category.

Office expenses: In the same overall ratio as staff costs. Depreciation: In the same overall ratio as staff costs

36

In Kind Direct Company number: 03155226

Taxation

As a registered charity, the company is potentially exempt from taxation of its income and gains to the extent that these are applied to its charitable objectives. The company is registered for VAT. Income Tax recoverable under Deeds of Covenant and Gift Aid is accounted for on a receivable basis.

Termination costs

All costs included in terminating employee contracts are accounted for on an accrual basis and disclosed in aggregate within staff costs. Termination benefits are measured at the best estimate of the expenditure required to settle the obligation at the reporting date.

Pension costs

Contributions to group personal money purchase pension schemes are charged to the Statement of Financial Activities on an accruals basis.

Operating leases

Operating lease rentals are charged to the SOFA over the term of the lease. Incentives received to enter into an operating lease are credited to the SOFA, to reduce the lease expense, on a straightline basis over the period of the lease.

Tangible fixed assets

Fixed assets are capitalised in the balance sheet at cost or, for donated goods, at estimated market value, except for items costing less than £2,000, which are expensed in the year of purchase. Depreciation is calculated so as to write off the cost of tangible fixed assets, less the estimated residual values, on a straight-line basis over the estimated economic lives of the assets concerned. Computers and other capital equipment is written off over three years.

Intangible fixed assets

Intangible assets are initially recognised at cost and subsequently measured at cost less any accumulated amortisation and any accumulated impairment losses. In Kind Direct’s intangible fixed assets consist of software development costs. Amortisation is charged on a straight-line basis over the estimated useful economic life of the software (from two to six years) and is included in Finance & IT support costs in the SOFA.

Public benefit concessionary loans

The group provides a loan to further its charitable purposes at rates below prevailing market rates. In accordance with section 34 of FRS102 this loan has been classified and accounted for as a concessionary loan. Such loans are initially recognised and measured at the amount provided and subsequently adjusted to reflect any repayments, accrued interest and any subsequent impairments.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

37

In Kind Direct Company number: 03155226

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2 . Critical accounting judgements and estimation uncertainty

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the group’s and parent charitable company’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Those areas subject to judgement and uncertainty are as follows:

Goods donated for onward distribution are valued at a reasonable estimate of their original market value, less adjustments to reflect condition where the goods are not in their original pristine condition. Other goods and services received are valued either by the donor, or where no value is given, valued at the equivalent market cost were these to be purchased directly by the charity.

Accrued income and expenditure are estimated where no invoice has been provided. These estimates are based either on third party evidence or on known values as yet not invoiced by the group.

Cross charges of staff time spent are based on reasonable estimates of how much time staff employed by In Kind Direct spend working on matters related to Trading IK Limited or IKDI.

38

In Kind Direct Company number: 03155226

3. Other Voluntary Income

Unrestricted
Funds
£
Charitable Trusts
276,839
Business donations
37,826
Donations by individuals
4,318
3-TotaTotal Donations
318,983		 Restricted
Funds
£
318
30,000
5,682
36,000		 Total
Unrestricted
Restricted
Total
2021
Funds
Funds
2020
£
£
£
£
277,157
331,837
82,000
413,837
67,826
344,914
70,000
414,914
10,000
33,785
33,785
354,983
710,536
152,000
862,536

4. Donated goods and services

Donated goods and services were applied to the activities of the charity as follows:

4-TotaTotal Value of donated goods distributed
4-TotaTotal Value of Services donated for own use
4-TotaTotal Donations		 Unrestricted
Funds
£
29,198,822
97,874
29,296,696		 Restricted
Funds
£
-
-
-		 Total
2021
£
29,198,822
97,874
29,296,696		 Unrestricted
Funds
£
10,002,005
-
10,002,005		 Restricted
Total
Funds
2020
£
£
16,302,722
26,304,727
252,305
252,305
16,555,027
26,557,032

5. Subsidiary undertakings

Trading IK Limited

Trading IK Limited (Company no. 06950193) is a wholly owned subsidiary trading company of the charity, established on 2 July 2009. Its registered office address is 11 -15 St Mary at Hill, London, EC3R 8EE.

Its principal activity is generating alternative sources of income such as eBay sales and affiliate marketing agreements. The company gift aids its taxable profits to the parent company. The results for the trading company for the year ended 31 December 2021 were:

Turnover
Cost of sales
Gross profit
Distribution costs
Administration costs
Profit for the year
Gift Aid to In Kind Direct
Movement in Shareholder's Funds After Gift Aid		 31 December
31 December
2021
2020
£
£
242,528
113,100
(71,512)
(40,138)
171,016
72,962
(3,226)
(11,156)
(3,613)
(6,528)
164,177
55,278
(96,599)
(41,513)
67,578
13,765

Administration costs relate to audit fees and other professional fees from In Kind Direct to Trading IK Limited (2021: £4,800; 2020 £3,600) for the use of staff and resources . These have been eliminated on consolidation.

Current assets
Creditors and accruals
Net Assets		 £
£
133,009
49,205
(65,431)
(18,926)
67,578
30,278

At the balance sheet date the company owed a balance of £46,660 to In Kind Direct.

39

In Kind Direct Company number: 03155226

Subsidiary undertakings - Continued

IKDI

IKDI is a charitable company incorporated in England & Wales, (Charity no. 1157417; Company no. 08478660) of which In Kind Direct is the sole member. Its registered office address is 11 - 15 St Mary at Hill, London, EC3R 8EE. The results of the subsidiary charitable company for the year were as follows:

Income
Expenditure
Net surplus/(expenditure)
Funds brought forward at 1 January
Funds carried forward at 31 December		 31 December
31 December
2021
2020
£
£
74,227
39,246
(67,868)
(64,698)
6,359
(25,452)
80,568
106,020
86,927
80,568

Total expenditure relate to audit fees, travel, legal fees and other charges from In Kind Direct to IKDI (2021: £57,224 ; 2020: £57,370) for the use of staff and resources . These have been eliminated on consolidation.

At the balance sheet date the charity owed a balance of £22,041 to In Kind Direct.

6. Expenditure

Expenditure
Cost of Charitable Activities
Distribution of donated goods
Other charitable costs
Cost of Generating Funds
Fundraising activities
Trading activities
Total Expenditure		 Direct
cost
£
29,198,822
1,036,260
30,235,082
5,214
73,551
78,765
30,313,847		 Support
cost
£
-
1,750,598
1,750,598
109,648
-
109,648
1,860,246		 Total
2021
£
29,198,822
2,786,858
31,985,680
114,862
73,551
188,413
32,174,093		 Direct
cost
£
26,304,727
1,223,999
27,528,726
1,116
54,222
55,338
27,584,064		 Support
cost
£
-
1,494,107
1,494,107
92,151
-
92,151
1,586,258		 Total
2020
£
26,304,727
2,718,106
29,022,833
93,267
54,222
147,489
29,170,322

7.

Support costs

Support costs are the costs of premises, facilities, staff and office overheads and are allocated to the activities of the charity as follows:

Management/Other
Finance & IT
Logistics
Charities
Fundraising
Premises		 Cost of
Charitable
Activities
£
683,966
206,061
333,987
378,740
53,972
93,872
1,750,598		 Costs of
generating
funds
£
41,741
12,576
20,383
25,925
3,294
5,729
109,648		 Total
Total
2021
2020
£
£
725,707
668,227
218,637
189,376
354,370
227,400
404,665
163,203
57,266
250,722
99,601
87,331
1,860,246
1,586,258

Support costs are included in the expenditure in the SOFA and have been allocated on the basis of time spent.

Governance costs total 74,121

85,117

40

In Kind Direct Company number: 03155226

8. Employees

Staff costs comprise:
Total
2021
£
Salaries and wages
921,202
Social security costs
97,578
Other pension costs
82,315
Org. restructure costs*
113,127
1,214,222		 Total
2020
£
841,093
82,991
68,434
-
992,518

The average number of employees during the year, analysed by function, was:

Distribution of donated goods
Governance
The number of employees earning in excess
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,000 - £100,000
£140,000 - £150,000		 2021
2020
20
18
2
1
22
19
of £60,000 is as follows:
1
1
-
1
1
-
1
-
1
1

The key management personnel of In Kind Direct, the parent charity, comprise the Chief Executive Officer and Executive Directors. The comparatives for 2020 comprises the CEO & 6 head of departments. The total employee benefits (including employer's national insurance contributions) of the key management personnel of In Kind Direct were £472,674 (2020: £549,150).

The trustees did not receive remuneration for their services to the company during the period (2020: £nil), however one Trustee (Graham Burridge) has received £10,890 for his service as interim finance manager until the position was filled.

No expenses incurred by any trustee were reimbursed by the charity (2020: £nil).

9. Net income for the year is stated after charging:

Auditor remuneration - audit fee
Operating Lease rentals
Depreciation		 2021
2020
£
£
15,750
12,750
71,676
65,736
37,989
39,955

41

In Kind Direct Company number: 03155226

10. Tangible Fixed Assets

Warehouse

Cost as at 1 January 2021
Additions during year
Transfer to intangible assets
Cost as at 31 December 2021
Depreciation as at 1 January 2021
Charge for year
Depreciation as at 31 December 2021
Net book value as at 1 January 2021
Net book value as at 31 December 2021		 Equipment
IT Equipment
Unrestricted
Unrestricted
Total
Funds
Funds
2021
£
£
£
15,907
-
15,907
2,518
5,570
8,088
-
-
18,425
5,570
23,995
(12,300)
-
(12,300)
(6,125)
(4,177)
(10,302)
(18,425)
(4,177)
(22,602)
3,607
-
3,607
-
1,393
1,393

11. Intangible Fixed Assets

Cost as at 1 January 2021
Additions during year
Cost as at 31 December 2021
Depreciation as at 1 January 2021
Charge for year
Depreciation as at 31 December 2021
Net book value as at 1 January 2021
Net book value as at 31 December 2021		 IT Systems
Unrestricted
Total
Funds
2021
£
£
145,345
145,345
7,010
7,010
152,355
152,355
(52,920)
(52,920)
(27,687)
(27,687)
(80,607)
(80,607)
92,425
92,425
71,748
71,748
12.
Investment
(Charity)
Shares - subsidiary company Trading IK Ltd
Cost at 1 January 2021 and 31 December 2021		 Unrestricted
Funds
Total
2021
£
£
1
1
1
1

42

In Kind Direct Company number: 03155226

13a. Debtors - unrestricted

Prepayments
Trade debtors
Intercompany debtors
Taxation and social security
Accrued income*		 Group
2021
£
4,667
86,037
-
-
40,162
130,866		 Group
2020
£
53,107
53,093
-
158

22,729
129,087		 Charity
Charity
2021
2020
£
£
4,667

53,107

9,503

10,900

68,701

26,767

-
-
40,162
15,814
123,034
106,588

13b. Debtors - restricted

Grant income debtor* Group
2021
£
368,716
368,716		 Group
2020
£
519,023
519,023		 Charity
Charity
2021
2020
£
£
368,716
519,023

368,716
519,023

*This represents the value of the grant receivable by In Kind Direct until March 2025 in respect of the charity's office accommodation. The 2021 grant was received at the end of 2021

14. Creditors: amounts falling due within one year - unrestricted

Trade creditors
Accruals
Taxation and social security		 Group
2021
£
(82,764)
(50,451)
(78,288)
(211,503)		 Group
2020
£
(154,985)
(32,249)
(106,766)
(294,000)		 Charity
Charity
2021
2020
£
£
(66,479)
(154,034)
(44,758)
(21,107)
(79,687)
(104,130)
(190,924)
(279,271)

43

In Kind Direct Company number: 03155226

15a. Reserves (Group) 2021

Transfers
Balance at Income Expenditure between Balance at
1 Jan 2021 funds 31 Dec 2021
Restricted Funds: £ £ £ £ £
1 Lloyds Bank Premises Fund 760,303
 - (99,600) (4,400) 656,303
2 Premises Fund 3 - dilaps 26,400 - -
 4,400
 30,800
3 P&G Emergency Fund 982 - (982)
 -

 -
4 Sir James Knott - 5,000 (5,000)
 -

 -
5 JR Corah Foundation Fund - 1,000 (1,000) - -
6 Barclays COVID-19 70,000 (58,723)
 -

 11,277
7 Santander - 30,000 (30,000) -
8 Value of goods distributed - -
 -
 -
Total Restricted Funds 857,685 36,000
 (195,305)
 -
 698,380
Unrestricted Funds - General 1,277,807
 32,097,804 (31,978,788) (635,000) 761,823
9 Unrestricted Funds - Designated - - - 635,000 635,000
Total Unrestricted Funds 1,277,807 32,097,804 (31,978,788)
 -
 1,396,823
Total Funds 2,135,492
 32,133,804 (32,174,093) - 2,095,203

Details

1. Funds to pay rent, service charge, utilities and other office running costs.

2. Funds towards legal/professional fees and office dilapidations should the office lease break clause be exercised in year 5.

3. Funds towards supporting charities helping people affected by emergency situations.

4. Funds are for the purpose of enabling charities in a particular sector or geographical location to benefit from the IKD service. 5. Same purpose as no. 4 above.

6. Funds towards helping charities in their community efforts against COVID-19.

7. Funds towards supporting IKD's operations in distributing technology products to small & medium size charities across the UK in the wake of the Covid-19 crisis.

8. These are goods which the donor company has specified must go overseas, or that have been restricted by the donor in some other way.

9. Board agreed to designate £635,000 fund for the warehouse move(£320k), systems upgrade (£150k)& research/marketing/other (£165k) to support the 2025 strategy growth.

15a. Reserves (Group) 2020

Transfers
Balance at Income Expenditure between Balance at
1 Jan 2020 funds 31 Dec 2020
Restricted Funds: £ £ £ £ £
1 Lloyds Bank Premises Fund 845,034 - (80,331) (4,400) 760,303
2 Premises Fund 3 - dilaps 22,000 - - 4,400 26,400
3 P&G Emergency Fund 1,257 - (275) - 982
4 Sir James Knott - 5,000 (5,000) - -
5 GJW Turner Trust - 2,000 (2,000) - -
6 Barclays COVID-19 - 70,000 - - 70,000
7 The Prince of Wale's Charitable Foundation 75,000 (75,000) -
8 Value of goods distributed - 10,002,005 (10,002,005) - -
Total Restricted Funds 868,291 10,154,005 (10,164,610) - 857,685
Unrestricted Funds 489,273 19,794,246 (19,005,712) - 1,277,807
Total Funds 1,357,564 29,948,251 (29,170,322) - 2,135,492

Details

1. Funds to pay rent, service charge, utilities and other office running costs.

2. Funds towards legal/professional fees and office dilapidations should the office lease break clause be exercised in year 5. 3. Funds towards supporting charities helping people affected by emergency situations.

4. Funds are for the purpose of enabling charities in a particular sector or geographical location to benefit from the IKD service.

5. Same purpose as no. 4 above.

6. Funds towards helping charities in their community efforts against COVID-19.

7. Funds towards supporting IKD's operations in distributing technology products to small & medium size charities across the UK in the wake of the Covid-19 crisis.

8. These are goods which the donor company has specified must go overseas, or that have been restricted by the donor in some other way.

44

In Kind Direct Company number: 03155226

15b. Reserves (Charity) 2021

Reserves (Charity) 2021
Transfers
Balance at Income Expenditure between Balance at
1 Jan 2021 funds 31 Dec 2021
£ £ £ £ £
Restricted Funds:
1 Lloyds Bank Premises Fund 760,303
 - (99,600) (4,400) 656,303
2 Premises Fund 3 - dilaps 26,400
 - -
 4,400 30,800
3 P&G Emergency Fund 982 - (982) -
 -
4 Sir James Knott - 5,000 (5,000) -
 -
5 JR Corah Foundation Fund - 1,000 (1,000) -

 -
6 Barclays COVID-19 70,000 (58,723) -
 11,277
7 Santander - 30,000 (30,000) -
 -
8 Value of goods distributed - -
 -
Total Restricted Funds 857,685
 36,000 (195,305) - 698,380
Unrestricted Funds - General 1,166,961 31,981,947 (31,906,591) (635,000) 607,317
9 Unrestricted Funds - Designated -
 -
 - 635,000 635,000
Total Unrestricted Funds 1,166,961 31,981,947 (31,906,591) - 1,242,317
Total Funds 2,024,646 32,017,947 (32,101,896) - 1,940,697

Details

1. Funds to pay rent, service charge, utilities and other office running costs.

2. Funds towards legal/professional fees and office dilapidations should the office lease break clause be exercised in year 5.

3. Funds towards supporting charities helping people affected by emergency situations.

4. Funds are for the purpose of enabling charities in a particular sector or geographical location to benefit from the IKD service.

5. Same purpose as no. 4 above.

6. Funds towards helping charities in their community efforts against COVID-19.

7. Funds towards supporting IKD's operations in distributing technology products to small & medium size charities across the UK in the wake of the Covid-19 crisis.

8. These are goods which the donor company has specified must go overseas, or that have been restricted by the donor in some other way.

9. Board agreed to designate £635,000 fund for the warehouse move(£320k), systems upgrade (£150k)& research/marketing/other (£165k) to support the 2025 strategy growth.

15b. Reserves (Charity) 2020

Reserves (Charity) 2020
Restricted Funds:
1 Lloyds Bank Premises Fund
2 Premises Fund 3 - dilaps
3 P&G Emergency Fund
4 Sir James Knott
5 GJW Turner Trust
6 Barclays COVID-19
7 The Prince of Wale's Charitable Foundation
8 Value of goods distributed
Total Restricted Funds
Unrestricted Funds
Total Funds		 Balance at
Income
Expenditure
Transfers
between
Balance at
1 Jan 2020
funds
31 Dec 2020
£
£
£
£
£
845,034
-
(80,331)
(4,400)
760,303
22,000
-
-
4,400
26,400
1,257
-
(275)
-
982
-
5,000
(5,000)
-
-
-
2,000
(2,000)
-
-
-
70,000
-
-
70,000
-
75,000
(75,000)
-
-
-
10,002,005
(10,002,005)
-
-
-
-
-
-
-
868,291
10,154,005
(10,164,611)
-
857,685
366,740
19,705,959
(18,905,738)
-
1,166,961
1,235,031
29,859,964
(29,070,349)
-
2,024,646

Details

1. Funds to pay rent, service charge, utilities and other office running costs.

2. Funds towards legal/professional fees and office dilapidations should the office lease break clause be exercised in year 5. 3. Funds towards supporting charities helping people affected by emergency situations.

4. Funds are for the purpose of enabling charities in a particular sector or geographical location to benefit from the IKD service.

5. Same purpose as no. 4 above.

6. Funds towards helping charities in their community efforts against COVID-19.

7. Funds towards supporting IKD's operations in distributing technology products to small & medium size charities across the UK in the wake of the Covid-19 crisis.

8. These are goods which the donor company has specified must go overseas, or that have been restricted by the donor in some other way.

45

In Kind Direct Company number: 03155226

16. Donation of services for own use

The financial statements include the following donated services

Web hosting & IT services
Marketing & PR
Consultancy
Staff costs/training		 2021
2020
£
£
63,500
33,250
28,074
-
6,300
216,500
-
2,555
97,874
252,305

17. Obligation under operating lease

At 31 December the charitable company had the following future minimum rentals payable in respect of non-cancellable operating leases for one office premises as set out below:

Minimum rentals falling due:
Within 1 year
Between 1 and 5 years
More than 5 years		 2021
2020
£
£
53,757
53,757
161,386
215,143
-
-
215,143
268,900

Future payments have been adjusted for the effect of rent-free periods in years 5 & 7 included in the lease of In Kind Direct's offices.

18. Related party transactions

Due to the nature of the IKD group charitable activities which relies on donated goods by companies and the composition of the board of trustees being drawn from corporations, transactions may take place with businesses in which the trustees have an interest. All transactions involving such companies are conducted in accordance with the requirements of the SORP and followed the IKD financial policies & procurement procedures relating to connected and related party transactions. All Board members are required to sign a related party disclosure.

His Royal Highness, The Prince of Wales is Royal Founding Patron of In Kind Direct.

The total amount of donations made by trustees to the charity in 2021 was £15,682 (2020: £10,625).

19. Capital commitments

There were no capital commitments at the end of 2021 (2020: nil).

20. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Group Charity
2021 2020 2021 2020
£ £ £ £
Net income/(expenditure) for the reporting period (as (40,289) 777,929 (83,949) 789,615
per the statement of financial activities)
Adjustments for:
Depreciation 37,989 39,955 37,989 39,955
Dividends, interest and rents from investments - (212) - (212)
Decrease/(increase) in debtors 148,527 284,187 133,860 299,738
Increase/(decrease) in creditors (82,497) 124,579 (88,347) 120,580
Net cash provided by/(used in) operating activities 63,730 1,226,439 (447) 1,249,677

21 Post Balance Sheet Events

A loan of £20,000 was granted by IKD International to IKDI Singapore to assist with its development. The loan was unsecured and repayable annually in four equal instalments commencing on the fourth anniversary of the date of the loan agreement (10 May 2018). Interest accrues daily on the loan, chargeable at one percentage point above the Bank of England base rate, with interest levied payable quarterly in arrears. The IKDI Board approved at their March 2022 meeting to write-off the loan after they were informed the plan to close the IKDI Singapore operation at the end of 2022.

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