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ACTION FOR RACE EQUALITY A Company Limited by Guarantee Report of the Trustees and audited financial statements for the year ended 31st March 2025 Action for Race Equality 200a Pentonville Road, London, N1 9JP T: 020 7832 5800 E: hello@actionforraceequality.org.uk Charity registration number: 105604 Company registration number: 03203812

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 Contents Legal and administrative information Report of the Trustees (incorporating Chief Executive's Report) Independent auditor's report Statement of financial activities Consolidated balance sheet Balance sheet Cash flow statement Notes to the financial statements 3 6 25 28 29 30 31 32 2

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 Legal and administrative information Name of charity: Action for Race Equality (ARE) Charity registration number: 1056043 Company limited by guarantee registration number: 03203812 Principal and registered office: 200a Pentonville Road, London N1 9JP Charitable company's trustees and officers: Seema Manchanda, Chair Ambrose Quashie, Vice-Chair David Izamoje, Secretary (resigned September 2025) Femi Bola MBE Secretary (from September 2025) Kenneth Sule-Ejeh, Treasurer] Laura Durrant Chair of HR Sub Group lla Chandavarkar Marlon Bruce Raj Patel MBE Zahid Hussain Joel O'Loughlin, Advisor Patrons: Prof Greg Clark CBE Lieutenant Colonel Sulle D Alhaji Chief Executive Officer and senior staff members to whom day-to-day management of the charitable company is delegated by the trustees: Jeremy Crook OBE, Chief Executive Indra Nauth, Deputy Chief Executive Banker: Unity Trust Bank, Four Brindley Place, Birmingham B12JB Auditor: Able & Young, Airport House, Purley Way, Croydon, CRO OX 3

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Charitable company's other current staff Bowale Fadare, Policy and Research Officer (appointed 01.07.24) Brianna Cyrus, Head of Education and Youth Programmes Cornelius Alexander, Head of PR & Comms (appointed 21.07.25) Ellisha Coates, Programme Director (appointed 16.06.25) Emma Piet, Evidence into Action Programme Manager (Appointed 10.12.24) Kim Mcintosh, Windrush Policy Manager Maanya Jones, Programme Support Officer (Appointed 07.10.24) Meka Beresford, Head of Policy Nola Sterling, UPLIFT Programme Manager (Appointed 28.10.24) Qasim Alli, Policy and Research Officer Rabia Mirza, Windrush Policy and Comms Officer (Appointed 28.07.25) Stephen Roach, R2S Programme Lead (Appointed 18.06.24) Tara Shah, Programme & Finance Co-ordinator William De Sousa, PR & Communications Apprentice (Appointed 10.09.2024) ARE Senior Associates Alex Louis Ashok Shah Dr Liz Mackie Tebussum Rashid Dr Tutu Adebiyi The Trustees (who are also the directors for the purposes of company law) are pleased to present their report and the audited financial statements of Action for Race Equality for the year ending 31 March 2025. These comply with statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable to charities in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Public Benefit We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. Action for Race Equality provides public benefit by improving the lives of young Black, Asian and Mixed heritage people through our projects, supporting staff in Black and Asian led organisations and in our policy work on tackling poverty, inequality and employment. 4

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 ARE's Mission, Vision, Values and Aims Mission To end racial inequality Responsive: We listen, we observe, we learn and if we need to change what we do and how we do if we will Inclusive We engage across communties, sectors and generations. listening ond responding, respecting diverse views, issues and needs Collaborative. We work with partners and stokeholders to strengthen our intersectional opproach Loading by practice we are anti racist and lead by example. We believe in and deliver projects and activities based on an anti-racist and anti-discrimination agenda Vision To champion faitness, challenge discrimination and pioneer innovative solutions to empower Black, Asian and Mixed Heritage communities through education, employment and enterprise Aims To tackle GCSE attainment and school exclusion race disparities To tackle race disparities in the employment To tackle race disparities in the enterprise system To tackle race disparities in the criminal justice system To strengthen Black and Asian-led and organisations and charities To tackle systemic and institutional rocism in public services Report of the Trustees The Trustees continued to support our dedicated staff team. We developed our new strategic plan 2024- 27 which is underpinned with our theory of change. We delivered positive interventions for children and young people, piloted our new youth leadership programme, supported Black and Asian led civil society organisations and used our national voice to influence policy makers. The Board ensured our finances remained stable and supported Jeremy Crook and Indra Nauth - the senior leadership team to lead and manage programme delivery, staff development and organisational growth while expanding our activities where opportunities presented themselves. Overall, we focused on bearing down on racial inequalities and inspiring those with power and resources to use them effectively. In these challenging times our resilience is a symbol of our resistance. 5

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 Chief Executives' report We started the year with an expectation that the country would start a new chapter focused on economic growth and creating opportunities for young people. However, it was not long into the Government's first term in office that we witnessed dangerous racist riots across the country and a disturbing wave of anti-migrant and anti-immigrant hostilities which impacts on British Black and Asian communities. The spirit of many people across the country was heavily dampened by these developments. The disdain for EDI (including ethnicity and gender targets) and anti-migrant attacks emanating from the USA only exacerbate the situation. These are serious developments which impact on the attitudes and behaviours in our communities and workplaces and will continue to impact negatively on our communities and organisations between now and the next general election (and beyond) unless the Government and the people of this country robustly defend our values of race equality and inclusion. We prepared for the July General Election by producing our Ten Point Action Plan to increase the employment rates for young ethnic minority people and the Windrush Justice Programme policy manifesto. Shortly after the Labour Party's landslide General Election victory ARE produced a very important document - A Better Way to Tackle Institutional Racism - for the Alliance for Racial Justce which we helped to establish the previous year. Subsequently, ARE and other representatives from the Alliance for Racial Justice met with Seema Malhotra MP, the lead minister for race equality across Government, to discuss the recommendations in the above document. We set out that the rationale for the paper was to start a conversation about the need for legislation to go much further than the public sector equality duty in the Equality Act, and to explicitly identify and address institutional racism. Without an effective legislative foundation, we will not see the end of institutional racism in public organisations such as the Metropolitan Police. The new Government's election manifesto committed to introducing ethnicity pay gap (EPG) reporting and we were delighted to partner with ShareAction and Dianne Greyson (founder of

ethnicitypaygapcampaign) to lobby the Government to ensure there is a mandatory requirement on

employers to publish EPG data and produce effective actions plans to close any pay gaps. I was pleased to join the Home Office Strategic Race Board as an external trusted partner. The Board is chaired by the Second Permanent Secretary. In February the Home Office announced they would be appointing a Windrush Commissioner, and this was followed a month later with the creation of the Government's Race Equality Engagement Group chaired by Baroness Doreen Lawrence. We pride ourselves on evaluating and learning from our own programmes. Over the past three decades we have developed and applied different capacity building techniques to benefit Black and Asian civil society organisations. Consequently, we thought it was time to ask the question, what 'Really' works' 6

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 when it comes to capacity building in our sector and ARE led the first national conference to explore this theme. Positively, Voice 4 Change England, Olmec and The Ubele Initiative agreed to collaborate with us. We will use the evidence we have to influence charitable trusts and other funders to invest capacity building that leads to better organisational growth and sustainably for Black and Asian led organisations. We were pleased to employ our first staff member (Emma Piet, Evidence into Action Programme Manager) outside London via our Youth Futures Foundation funded Evidence into Action and Connected Futures Initiative. Emma is based at Hamara Healthy Living Centre in Leeds. I want to acknowledge the ARE team for their professionalism, excellent work and commitment. All of us continue to learn and develop our knowledge and skills. I am very proud of the work they do and the commitment to tackle racial injustice. I have been asked a few times this year by Black and Asian leaders in our sector, how do I keep motivated after so many years involved in anti-racist work? I draw much energy from the work we do with children and young people, ARE trustees and staff, our amazing volunteers and youth action network, the colleagues we work with across the civil society, public and private sector. I want to thank Seema Manchanda, (Chair), Ambrose Quashie (Vice Chair), Laura Durrant (Chair of HR Subgroup) and all the Trustee's for their leadership and support, and our understanding and supportive funders. Finally, I want to acknowledge Joel O'Loughlin, our Board Advisor and former Trustee for his commitment to ARE (formerly BTEG) when it was a project in NCVO over 30 years ago. He will be stepping away from direct involvement as an advisor. I want to thank him for the unwavering support he has given me and the charity. Jeremy Crook OBE

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 ARE POLICY, PROGRAMME AND COMMUNICATIONS DELIVERY POLICY This year our policy team grew to include a Policy and Research Officer and a Policy and Research Officer (Stakeholder Engagement) in addition to our Head of Policy. With additional staffing, we were able to increase our work significantly. We have re-established our policy newsletter, bringing the latest news, updates and information, and launched a new event series. The Policy Action Forum (PAF). Recognising that too frequently discussions of race and racism are treated as an add-on, the PAF invites experts across specific areas to unpack why racial disparities are occurring and invite discussion on what needs to happen to end disproportionality. We have looked at capacity building, equalities, use of reasonable force in schools, the Crime and Policing Bill, and other key areas of interest. We have also launched the Race Equity in Education Network, a group of about 40 ethnic minority organisations/expert individuals working across the education sector who have come together to collaborate on policy related to anti-racist education. This is particularly important to our work, as we recognise the roll of education as a doorway to other children's services, and as we continue to try and disrupt the 'school to prison pipeline.' The change in Government during this period gave us a new opportunity to meet with key ministers aligned with our work, including Lord Timpson (prisons and probation), Dame Diana Johnson (policing), Sir Nic Dakin (youth justice), and Seema Malhotra MP (race). The new government also presented several key policy consultations, which ARE submitted evidence to. This included the; proposed amendments to PACE Codes of Practice A and C: strip searches policy change; Equality and Human Rights Commission's strategic plan; Ministry of Justice's Independent Sentencing Review 2024-2025 Call for Evidence; Evidence submission to Justice Committee inquiry on Rehabilitation and Resettlement; Department for Education's Curriculum and Assessment Review Call for Evidence; HM Inspectorate of Constabulary and Fire & Rescue Services proposed policing inspection programme and framework 2025-29; Crime and Policing Bill call for evidence; Knives and offensive weapons policy framework; and the Mayor's Office for Policing and Crime (MOPAC) and policing plan. In addition, we also took part in several extensive consultations with the National Police Chief's Council on the Police Race Action Plan and with the Youth Custody Service on the development of their strategy, which was described as 'rich and powerful insight'. In addition to working on a national level, we also produced an evidence submission, which was supported by over 30 partner organisations, for the United Nations Committee on the Elimination of Racial Discrimination's review of the United Kingdom. Our evidence was submitted in July, and in August our Head of Policy and Deputy Chief Executive attended the hearing in Geneva and gave a 8

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 verbal statement to the committee. It was good to see many of the committee's recommendations align with our suggestions. ARE proudly work in collaboration with several key organisations, including members of the Alliance for Racial Justice. In April, we held a two-part roundtable with members and experts in the field of legislation and racial justice to discuss the effectiveness of the Equality Act 2010 and legislation in tackling institutional racism. In September, we published 'A Better Way to Tackle Institutional Racism', a report which draws on the knowledge exchanged at the roundtable and makes several recommendations to improve the ability to tackle racism in public bodies. Testimonials "Your contributions were so insightful and both you and the work of Action for Race Equality came across incredibly well to the Ministry of Justice, MOPAC and the dozen voluntary sector organisations." - Chair of the MOPAC Third Sector and Service User Adult Ethnic Disproportionality Working Group "Thought provoking, insightful, and extremely well led and facilitated." - attendee of the Alliance for Racial Justice 'A Better Way to Tackle Institutional Racism' report launch "I'm very much grateful Jeremy, to you and your members, I know I've already engaged with Meka, but this is actually another level, which is really rich and powerful, to actually be the start of this conversation." - Youth Custody Service lead on strategy engagement "Your input at the working group meetings and into the strategic plan and vision have been very important. ARE is going from strength to strength." - Better Justice Partnership co-ordinator. EDUCATION Route2Success (R2S) Ethnic Minority Role-model and Mentoring Programme ARE's Routes2 Success (R2S) Role Model Programme is in its twelfth year and final year funded by the Greater London Authority (GLA) under the New Deal for Young People (NDYP). We focused on expanding the programme's offer of 1-to-1 mentoring and increasing our delivery capacity by recruiting more volunteers. Working in partnership with Father2Father and Your Story has enabled us to exceed the number of children and young people that we have supported over the two years of NDYP funding. During this reporting period we have worked with over 283 young people aged 10 to 24. We joined the GLA's Virtual Mentoring platform to support role model recruitment, and our Project Development and Engagement Officer developed a strategic recruitment plan, resulting in 16 new volunteers. We were also selected by the GLA to be evaluated for systems change, a testament to the effectiveness and potential of our approach. As a result, we worked with the Institute for Voluntary 9

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Action Research (IVAR) to form a focus group with R2S stakeholders. During this focus group we explored ways to integrate systems change into our work, an important step toward long-term sustainability and innovation. The case study was published on the Propel website in May 2025 as part of the NDYP. R R We are pleased that our 1-to-1 mentoring reached its highest capacity to date, with 19 young people supported across three schools. The impact of these were powerful and positive experiences for both mentees and mentors. "I love these sessions so much because it has improved my mental state and I have a feeling that I can achieve all goals if I have a growth mindset. " - Year 9 student. Our role model sessions continue to motivate and inspire young people, with 67% reporting increased confidence about their future. We have worked with 12 schools across 8 London boroughs and 1 prison this year. This year saw an increase in Race Equality Action Projects (REAPs), and we are proud to have supported young Black boys and ethnic minority girls in successfully delivering three projects: a docu- drama on unconscious bias, a podcast on crime and policing, and a peer mentoring initiative. 10

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 STUDY SELLS. ITSE OKAY TO "I found the REAP an amazing experience and I am grateful for the opportunity. I have learnt a lot of skills that I can use for my personal life and as a peer mentor. At first when I started the project, / was not too sure on how I was going to do or even if I could do it. But I had amazing support around me, and I appreciate it because now I am doing well, and I have learnt a lot. " - Year 10 Student All of the young people that took part in a REAP reported that they had increased their socio- emotional skills such as teamwork, communication and discussing feelings. We continue to engage with the International Community of Mentoring, meeting quarterly with organisations worldwide including from Australia, Canada, the US, France, and Spain - to share best practice and insights. This collaboration led to the development of a shared set of mentoring principles. Youth leaders in the 215 Century Programme Piloted We successfully piloted ARE's new youth leadership programme with a focus on fostering essential leadership skills across key areas for young people aged 16-24 years old. External facilitators delivered seven impactful sessions, covering vital topics such as financial debt and management, power and power relationships, interrupting bias, and social action projects. Out of the 8 participants that started the programme, 6 sustained their involvement and successfully completed the course. We are exploring making the course accredited which could make it more appealing to young people. Karl Murray carried out an external evaluation of the programme and found strong findings on its impact. According to the evaluation 95% of participants reported that the 11

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 course was impactful and the unit on interrupting bias and power relationships received particularly positive feedback, with participants citing it as especially helpful and insightful. There are areas for refinement so that we can better meet the needs of a diverse group of young people including differentiation by age, stage in life, learning styles and ensure the programme remains an attractive, relevant and accessible learning opportunity. EMPLOYMENT Building Ethnic Diversity in the Youth Employability Sector This two-year programme funded by Youth Futures Foundation came to end in January 2025, culminating in an event to share learning from the programme, particularly our Deep Dive with ten organisations across England about what worked when providing employability support to young people from ethnic minority backgrounds. This programme led to the creation of ARE's first ever Youth Action Network (YAN), 10 young people who informed on our work, including shaping two national youth employment conferences, featuring in several podcasts discussing issues impacting young people, and the publication of a number of blogs by the YAN, one of which was reshared by the BBC on their social media platforms. ARE with our partner Making Education a Priority held a Northern Cities Youth Employment conference in Manchester in February 2025, which saw 80 people attend to hear from employers, young people, funders and other stakeholders about the challenges young people in Northern Cities face. Graduate Connector Programme Funded by Columbia Threadneedle Foundation ARE piloted a one-year programme from May 2024 which aimed to engage 200 ethnic minority graduates, seeking employment in London and connect them with work opportunities and support to help them develop the skills needed to land their first graduate-level job. We employed Freya Johnson, a recent graduate, to lead programme which was launched on Friday 31st May and over the year we engaged over 200 graduates looking for work. We held a series of online workshops including: pre-application workshops with employers who had graduate level vacancies; CV development workshops; using Al to aid job search and applications; maximising your Linkedin profile. The programme culminated with an in-person networking event at City Hall for graduates and employers, which also included a CV clinic and opportunity to get professional headshots. The job outcomes were much lower than planned. However, graduates benefited from the support, opportunities and contact with employers. ARE have used learning from the pilot to inform on our future employment programmes. 12

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Moving on Up This ten-year programme funded by Trust for London and City Bridge Foundation, testing out approaches to support young Black men in London aged 16-24 into quality jobs came to an end in October. Over its life, the programme engaged over 1000 young Black men and supported nearly 600 into work. As the work came to an end ARE produced a learning insights paper, which was turned into, 'Tackling ethnic minority youth employment 10 Recommendations for Action' document. One of these recommendations was to establish the Race Equity in Employment Taskforce with Business in the Community for twelve months and we began work on this. FUNDING FOR BLACK, ASIAN AND MINORITY ETHNIC LED ORGANISATIONS Windrush Justice Programme (WJP) Policy work It was a busy and productive year for the Windrush justice policy. In June, we launched, 'The Home Office Scandal: A Manifesto for Windrush Justice', ahead of the General Election. Following a survey of WJP groups and other key stakeholders, the manifesto highlighted the key issues the collective wanted the new government to tackle during their first year in office. The manifesto was covered as part of a Sky News package and Yvette Cooper MP, the then Home Secretary, wrote an Op-Ed in the Guardian committing to some of our recommendations. sky After the election, we built relationships with the new Ministers and civil servants to advance the cause of Windrush Justice. In October, the Home Secretary announced new support for Windrush victims, the Windrush Compensation Scheme Advocacy Support Fund. This is one of the recommendations in our Windrush manifesto. 13

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 We also developed relationships with more backbench MPs and in late-November, hosted a parliamentary event to bring attention to key issues such as the number of nil compensation awards for eligible claims, the need for funded legal representation and the new advocacy support fund. We used these new relationships with MPs to get relevant parliamentary questions asked and to write letters to the Home Secretary raising key concerns. Onward granting and capacity building The Windrush Justice Programme (WJP), a £1.3m fund, entered year 3 of its funded programme. During this period, we funded a further eight organisations bringing the total funded to 20, and the onward granting total to £450,000. The organisational development support to organisations on the programme, which included 1-to-1 consultancy support continued. One Windrush Justice Programme member, reflecting on the organisational development aspect of the programme stated: "We feel ARE have acknowledged our needs as an organisation, helping us to stabilise ourselves and keep going under the pressure of an enormous amount of work." 14

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 The network as a whole has continued to strengthen, with more established groups on the programme, mentoring newer ones. One group said that "As a growing organisation in this field, we have received tremendous support and mentoring from [another Windrush Justice Programme member]. [This member] has been helping us to train new Caseworkers to help with the backlog of potential cases." By the end of June 2024, 8 groups funded in Round 2 returned their case data, of which 192 potential Windrush victims/survivors had been supported. • 116 of these are for compensation, 3 are Tier 1 or Tier 2 reviews, 10 are to confirm citizenship via the Status scheme • At least 7 of these cases are supporting people based overseas. These include from countries in the St Lucia, Grenada and Nigeria. One new WJP member, reflecting on what the grant has enabled them to do, and the impact it has had on their work and those they support, said: "Through the Windrush project, we have supported individuals whose lives were profoundly disrupted by the injustices of the Windrush scandal. [The grant has] enabled [us] to significantly expand our reach and impact, providing dedicated support to individuals from the Windrush generation [...] With this funding, we have been able to employ a staff member who devotes one full day each week to this work, supported by three volunteers. This has ensured consistent, specialised support for those navigating complex documentation and legal processes. The grant has allowed us to see people from across London and even beyond the capital, demonstrating the widespread need for this type of service." Violence Reduction Unit (VRU) Stronger Futures & Innovation Fund ARE continued to deliver bespoke capacity-building support for organisations funded through the VRU's Stronger Futures programme. Through 15 interactive workshops and tailored 1-to-1 consultancy, 105 participants from 23 community-led organisations developed skills in governance, financial resilience, trauma-informed practice, communications, and monitoring and evaluation. Support covered a wide range of areas including strategic planning, HR, policy reviews and development, staff and team development, EDI-focused workshops and listening sessions, systems and process reviews, communications and marketing, and fundraising support (from identifying funders to critiquing draft applications). This broad offer has helped organisations strengthen their sustainability and increase their ability to showcase impact. Feedback highlighted the value of flexible, culturally competent support that enables long-term growth and resilience. Coaching for project leads and senior staff has been especially impactful in supporting wellbeing, leadership development, and strategic thinking. 15

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 "Over the past 14 weeks, I've had coaching sessions through ARE, which have been incredibly beneficial. I had been struggling with a mental block that made me take 10 steps forward and 5 steps back. This recurring pattern began to affect my personal growth and wellbeing." Participant on the programme. Pathways to Economic Opportunities (P2E) This two-year programme funded by JP Morgan Chase, where ARE provided organisational capacity building support, came to end an end in November 2024. 19 organisations received over 500 hours of 1-to-1 bespoke consultancy support and 6 workshops were delivered including: • Different aspects of utilising Microsoft 365 apps to maximise efficiency • Utilising the Lightening Decision Jam methodology to explore monitoring and evaluation • Exploring sustainability beyond the length of the programme. Feedback on the Consultancy Support: "At first, we came together to discuss offering volunteer opportunities to our young creatives. But little did we know, this meeting sparked the start of a wonderful partnership! My team and l are excited to explore more ways to make a lasting impact through storytelling and creativity in our communities. Our appreciation and gratitude go to our consultant for connecting us and for seeing the potential in our mutual work across both organisations. Our findings highlighted that P2E organisations have leveraged between 8% to 615% additional funds of their original grant amount awarded over the two-year programme. "The P2E programme has been a transformative experience for our organisation. Through targeted workshops, insightful assessments, and tailored coaching, the program has helped us identify and capitalise on our strengths while addressing areas for improvement. The impact on our organisation has been profound, fostering a shared sense of purpose, improved communication, and enhanced leadership capabilities." (PE Partner Organisation) With London Community Foundation the final programme event was held at JP Morgan Chase in Canary Wharf on 11 November. Speakers included colleagues from LCF, JP Morgan Chase, Ubele and ARE. There was a panel discussion co-facilitated by ARE, who interviewed two organisations and one consultant that took part in P2E. A final report was produced and available here. 16

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 National Capacity Building Conference A conference to explore capacity building and what 'really' works for Black and Asian organisations was held in December in partnership with Voice for Change England, The Ubele Initiative and Olmec. With over 40 attendees including some funders, there was an opportunity to hear what all four partners were doing in this space, hearing from Urban MBA about the use of Al in capacity building and the chance to take part in four themed workshops to explore issues around capacity building in more detail. There are plans to hold a series of roadshows across England to really understand the different models of capacity building and what's actually working. A report of the conference is available here. Evidence Into Action (EiA) The Youth Futures Foundation's (YFF) Evidence into Action programme helps organisations apply proven strategies to tackle youth unemployment, especially among marginalised groups, while Connected Futures builds local partnerships to address place-based employment challenges and create systemic change for young people. YFF awarded ARE Enterprise Ltd a three-year contract as Strategic Partner in their EiA and Connected Futures extension programmes. Our work began in May 2024, and involved providing support to over twenty organisations across England (including Leeds, Bradford, Walsall and Sheffield for Connected Futures and Birmingham, London, Manchester and Blackburn for Evidence into Action) to provide organisational development and enable funded partners to share their learning. In December we recruited a Programme Manager, Emma Piet who leads on this work. Emma is our first employee to be based outside of London and works from a Connected Futures lead partner office in Leeds. UPLIFT ARE began delivery on our £lmillion ten-year programme funded by City Bridge Foundation's Anchor Fund, to support up to 30 grassroots organisations per year to have a stronger voice and greater policy understanding and influencing skills. We recruited a new Programme Manager; Nola Sterling who started with ARE in October 2024. A twelve-month delivery plan with communications strategy was developed and we recruited 14 organisations to work with in the first year and held an induction workshop in July carry meet all groups and undertake an organisational strengths review. We participated with other Anchor funded programmes in learning sessions led by The Social Innovation Partnership to develop an overarching Theory of change. 17

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 ENTERPRISE ARE Business Support Work Islington Council commissioned ARE Enterprise Ltd to deliver a support programme to businesses in the borough, which is specifically targeted at those led by ethnic minorities, women or those with a disability. 32 businesses were enrolled on the programmes, of which 24 completed all the activities. The businesses had access to: • An average of 2.5 days of highly personalised one-to-one business support. • Six themed masterclasses run by expert consultants on topics such as business planning, marketing and financial management, in addition to three workshops delivered in collaboration with Islington Council on procurement, energy efficiency and climate resilience, and apprenticeship levy funding. A workshop on Al was also delivered by one of the programme participants. • Two networking events, at the programme mid and end points, were attended by Cllr Bell- Bradford, the Deputy Leader of the Council, which offered valuable opportunities for in-person relationship building and information sharing, including direct engagement with the council. • The opportunity to apply for a small grant. 23 businesses were successful and received £2,275 of funding. Both the businesses and Islington Council were very complimentary about the programme, which exceeded its targets. Overall: • 79% of businesses developed new/improved products/services. • 79% of businesses entered new markets. • 4 new jobs were created. There was a significant increase in business knowledge and confidence (e.g., 91.7% increase in strategic knowledge, 81.3% in financial planning). Separately, Camden Council funded ARE Enterprise Ltd with £15k to deliver a package of business support to businesses who they have funded. As of March 2025, there were 15 businesses on the programme receiving one-to-one business consultancy support. ARE Enterprise Ltd TRAINING & CONSULTANCY ARE Enterprise Ltd has expanded its consultancy and training portfolio, securing new work with ADVANCE, Brent Council, City Bridge Foundation, AB Charitable Trust, Tower Hamlets Council and Hull Forum CIC. We successfully delivered a range of workshops, including DEl training, "Language Matters" sessions, and a high-impact Away Day for ADVANCE involving over 100 women. Our role in facilitating the Tower Hamlets Women's Commission at short notice highlighted our ability to respond flexibly and effectively. We also facilitated the 'There's no justice without racial justice' event hosted by AB Charitable Trust, Barrow Cadbury Trust and Black Men 4 Change that reflected on and 18

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 recognised a 5-year journey between funders and VCS sector specialists keen to question, challenge and change the continued racial disproportionality in the criminal justice system. Case Study - ADVANCE Charity Away Day ARE facilitated ADVANCE's Away Day for more than 100 women, achieving excellent participant feedback (4.8/5). The event combined professional development with peer support, reinforcing ADVANCE's mission while showcasing ARE's expertise in designing and delivering inclusive, impactful experiences. COMMUNICATIONS This year has been one of expansion for ARE's communications work and a year where the strategy has been assessed for the future. From supporting high-profile events to securing national media coverage and relaunching digital channels, the team has strengthened ARE's visibility and credibility across key audiences. Efforts were directed at improving branding consistency, developing new resources for staff, and ensuring our campaigns reached wider and more diverse communities. The team has also had new recruitments including our first ever PR & Comms Apprentice, helping strengthen the capacity of the team. Branding & Resources A significant achievement during this period was the creation of over 100 communications materials, ranging from infographics, posters, and business cards to branded promotional items such as pens and notebooks for external events. The central SharePoint site was introduced to the wider team, helping streamline access to resources and reinforce a unified approach to communications. Additionally, the Routes2Success Instagram was successfully rebranded to reflect the whole of ARE, ensuring consistency across social media platforms. Website Communications supported the development and launch of over eight new webpages, including those for flagship initiatives such as UPLIFT, Evidence into Action, and the Race Equity in Employment Taskforce. Existing pages, such as the Windrush Justice site, were also refreshed. The website attracted steady traffic with over 4,138 sessions and 8,615 page views, with users spending an average of 1 minute 30 seconds per visit. Plans are underway to refresh the website further and align it with ARE's wider communications strategy. Social Media & Digital Engagement ARE grew its digital presence significantly this year, surpassing 10,400 followers across all platforms. Linkedin remained the strongest channel, gaining 1,900 followers and reaching 82,827 individuals, while newer platforms also expanded ARE's reach: a Bluesky account established in October 2024 now has over 2,000 followers. Facebook and Instagram grew steadily, while the X (Twitter) account gained 70 new followers. In total, ARE's posts reached over 97,000 individuals. The team also delivered 23 newsletters and e-shots, engaging over a thousand stakeholders and subscribers. 19

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Campaigns & Media Coverage ARE supported the successful launch of four major campaigns and projects, including Journey to Inclusion, Designing the Windrush Manifesto, a new blog series by Patrick Vernon, and the launch of the ARE podcasts. In late 2024, these efforts helped secure extensive Windrush coverage across Sky News, The Independent, The Voice, and the Evening Standard, raising the profile of ARE's policy and advocacy work. Events The communications team supported several major events across the year, including the VRU event (April 2024), P2E final event (November 2024), the Windrush Parliamentary event (November 2024), the Capacity Building Conference (December 2024), and the Northern Cities Youth Employment Conference (February 2025). Communications also supported programme teams by producing over 95 tailored posts, ranging from recruitment campaigns and statements to project updates and opinion pieces. Alliance for Police Accountability (APA) ARE continued to serve as the accountable body for the APA which includes managing their grants and employing staff. A Memorandum of Understanding between ARE and the APA was agreed, formalising governance and operational frameworks. The APA deepened its strategic partnerships, supported affected families, and influenced national discussions on police accountability, safeguarding, and systemic reform. ARE employed two APA officers at different times during the year and both moved the APA's priorities forward. Key Highlights • The Birmingham Race Impact Group (BRIG) joined as the APA's first regional partner and University of East London (VEL) became the first university research partner, supporting joint conferences and research development. • National Police Chiefs' Council's (NPCC) National Race Action Plan (PRAP) The APA convened and led the Civil Society Strategy Group to coordinate responses to the NPCC's consultation about the PRAP. This coalition successfully secured a pause in PRAP's development to allow for further scrutiny and stronger engagement with the National Black Police Association (NBPA). • Established a constructive "critical friend" relationship with the Independent Office for Police Conduct (IOPC). • Engaged with the Office of the United Nations High Commissioner for Human Rights (OHCHR) to highlight systemic racism in UK policing. 20

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 • Submitted joint comments with ARE and UEL to the UN Committee on the Elimination of Racial Discrimination (CERD). The APA wrote to the Home Secretary urging continuation of Baroness Casey's independent review into the Metropolitan Police Service and continued to advocate for automatic trauma support for children affected by police violence and for safeguarding reform. APA Events and Public Engagement 1. Policing and the Black Child Conference (May 2024): Co-hosted with UEL, this landmark event amplified the voices of families impacted by police violence. It generated recommendations for safeguarding Black children during police encounters, later published in the Policing & the Black Child report. 2. Truth and Transformation? Two Years on From Casey Conference (March 2025): Held on International Women's Day in partnership with UEL, this high-profile conference examined progress since the Casey Review. The event brought together 68 delegates and keynote speakers included: Dr Tina Stavranaki (UN CERD), Dame Diana Johnson DBE MP, (the then Policing Minister), Chantelle Lunt (APA steering group member), Deputy Commissioner Alison Heydari (NPCC), Simone Oretuwa (NBPA), and Dr Nadia Habashi (UEL). 3. Black LGBTQ+ Policing Roundtable (October 2024): Delivered in collaboration with UK Black Pride to examine the intersection of race, sexuality, and policing. 4. Child X Community Meeting (August 2024): The APA participated in community discussions supporting families affected by police violence, building on ongoing advocacy around the Child X case. The APA provided trauma-informed care and advocacy for families affected by police violence. The work ensured appropriate responses from local authorities and the IOPC and strengthened networks of peer and professional support. The APA continued to shape national discourse on policing and racial justice through targeted media engagement and public communications and featured in outlets including Open Democracy (on racial bias and adultification in policing) and The Voice Online (on disproportionate policing of Black children). Regular newsletters were sent to update members, stakeholders, and the wider community on key developments and opportunities for engagement. The APA valued the funding from Esmee Fairbairn Foundation, Clothworkers Foundation, Barrow Cadbury Trust and AB Charitable Trust. And continued building relationships with civil society funders to strengthen the APA's long-term capacity and independence 21

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 PLANS FOR THE FUTURE We will focus on developing new funding proposals for national and London strategic initiatives. Commission a feasibility study and develop a road map to acquire an asset for ARE. ARE will also help to strengthen the Alliance for Racial Justice and Alliance for Police Accountability. REVIEW OF THE FINANCIAL POSITION As with other charities of similar size and sector the inherent nature of grant funding is for short-term duration. The charity runs different projects to achieve its core objectives. Similar to other charities in this sector, it is finding it increasingly difficult to attract suitable funds to carry out all the objectives it wishes to achieve. The majority of the income of the charity is from grants. The income of the charity for the year was £2,029,566 (2024 - £1,166,953) and the resources expended were £1,452,454 (2024 - £1,048,292). The free unrestricted reserves at the financial year end were £292,827. Reserves of £627,600 have been designated towards future shortfalls in project commitments to meet the charity's mission commitments, an increased presence in the regions outside London and to cover potential redundancy pay liabilities. The restricted reserves of the charity were £590,062 which will be spent on delivering projects in accordance with the grant mandate. Reserves Policy The charity's aims is to hold free reserves equivalent to approximately nine months of charitable core costs in order to continue to fund the activity of the charity including support and governance costs. The core costs of the charity for nine months would be £305,000. The free reserves which are a part of the unrestricted reserves are held to make sure the charity can maintain its activities and meet its liabilities including liabilities to staff whilst awaiting the outcomes of grant applications. The free reserves held by the charity at the financial year end were £292,827 and represent approximately nine months of costs. Staff All staff are directly engaged in activities in furtherance of the objectives of Action For Race Equality and their cost has been allocated accordingly. The largest expenditure of the charity is staff costs and these are consistently reviewed to ensure optimization of the charity's resources. Structure, Governance and Management The organization is a charitable company limited by guarantee. The charitable company was incorporated on 24 May 1996 and registered as a charity on 10 June 1996. The registered charity 22

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 operates within its memorandum and articles of association. Action For Race Equality is a charity limited by guarantee. The guarantee of each member is limited to £1 Governance and Management Structure The Board of Trustees is comprised of individuals from the voluntary, private and public sectors with a broad range of knowledge and experience relevant to the charity. The Board convenes throughout the year and holds an additional strategic planning away day. Action For Race Equality Trustees have delegated management of the Action For Race Equality to the Executive Director who reports on performance against the Strategic Plan approved by the Trustees. Risk Assessment The Board of Trustees constantly review and assess the risks to which the charity is exposed, particularly our activities at national level, operational and financial risks. Trustees' Responsibilities Charity and company law require the Board of Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and the incoming resources and application of resources, including income and expenditure, for the financial year. In preparing the financial statements the trustees should: • Select suitable accounting policies and applied them consistently • Make judgments and estimates that are reasonable and prudent • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue on that basis. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group and the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware at the time of approving our trustees' annual report: • There is no relevant audit information of which the charitable company's auditor is unaware; and • The trustees have taken all steps that they ought to have taken to make them themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 23

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 The trustees are responsible for the maintenance and 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 legislations in other jurisdictions. Auditors Able & Young acted as the auditors of the charitable company and have expressed their willingness to continue in that capacity. Small company exemption This report of the Directors has been prepared in accordance with the Companies Act 2006 relating to small companies. By order of the Board Femi Bola Dated: 11 December 2025 24

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ACTION FOR RACE EQUALITY Opinion we nave audited the financial statements of Action for Race Equality (the parent company') and its subsidian undertakings (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Financia Activities (incorporating an Income and Expenditure Account), the Consolidated Balance Sheet, the Charity Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 'The Financial Reporting Standard applicable to the UK and Republic of Ireland' In our opinion the financial statements: - give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 March 2025 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. 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 Auditors' 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 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 charitable company'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 Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a materia misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 n our opinion, based on the work undertaken in the course of the audit. the information given in the Report of the Trustees for the financial year for which the financial statements ar prepared is consistent with the financial statements; and • The Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 25

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ACTION FOR RACE EQUALITY Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - The trustees were not entitled to take advantage of the small company's exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustees 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 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 charitable company or to cease operations, or have no realistic alternative but to do so. Our 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 a Report of the Independent Auditors that includes 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: Based upon our understanding of the company and the industry, we identified that the principal risk of non-compliance with laws and regulations related to company law applicable in England and Wales, 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 and payroll tax. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the override of controls) testing the appropriateness of journal entries and other adjustments, assessin vhether judgement made in making accounting estimates are indicative of potential bias Audit procedures included: - Enquiring with management regarding correspondence with regulators and tax authorities; - Evaluating management controls designed to prevent fraud and detect irregularities; - Challenging assumptions and judgements made by management in their critical accounting estimates. further description of our responsibilities for the audit of the financial statements is located on the Financial Reportin ouncil's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report Page 26

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ACTION FOR RACE EQUALITY 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 undertaker o that we might state to the charitable company's members those matters we are require 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Rekle Shet Rekha Shah (Senior Statutory Auditor) For and on behalf of Able and Young Ltd Chartered Accountants And Registered Auditors Airport House Purley Way Croydon England 16 December 2025 Page 27

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 Action For Race Equality (A company limited by guaraniee) Consolidated statement of financial activities (Including consolidated income and expenditure account) For the year ended 31 March 2025 Income Donations and legacies Income from charitable activities Other trading activities Investment income Total income Expenditure Raising funds Chantable activities Total resources expended Net incoming/(outgoing) Resources before transfers Transfers between the funds Net movement in funds for the year Fund balances brought forward at 1 April 2024 Fund balances carried forward at 31 March 2025 Unrestricted Notes Restricted Total Funds Funds 2025 Funds 2025 2025 2 8,981 178,000 259,229 47,087 493,297 € 46,224 1.490.045 1,536.269 55.205 1,668,045 259.229 47,087 2.029,566 Total Funds 2024 34,395 871,702 221,137 39.719 1,166.953 3 15 248,335 53,982 3302.317 190.980 (35.677) 155.303 765.124 920,427 1.150.137 1,150,137 386.132 35.677 421,809 168,253 590,062 248.335 1,204,119 1,452.454 577.112 - 577.112 933.377 1,510.489 146,829 901.463 1.048.292 118.661 - 118.661 814.716 933,377 ort era ge sues dis income from eminung shaniable grans and acites The resus diso nolude income and expenses "here were no recogrised gains and losses other than those included in the staemen: of finandal acantes atove. 28

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 Action For Race Equality (A company limited by guarantee) Consolidased balance sheet As at 31 March 2025 Fixed assets Tangible assets Current assets Debtors Short term investments Cash at bank and in hand Notes 9 11 12 1 2024 1 251,509 163,150 1,463,216 - 1,877,875 367,387 29.644 159,757 1,690.115 1,879.516 946,140 Creditors - amounts falling due within one year Net current assets Net assets Funds Income funds Unrestricted funds General funds Designated funds Restricted funds Total funds 1,510.488 1,510,489 933,376 933,377 15 292.827 627,600 590.062 1,510.489 462,124 303,000 168,253 933.377 The trustees have prepared group accounts in accordance with the Companies act 2006. s. 398 and the Chantes Act 2011, S. 138. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constiture the annual accounts required by the Companies Act 2005 and are for circulation to members of the company. Approved by the trustees on and signed on their behalf by. Emence e de S Manchanda Trustee Date: 11 December 2025 29

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 Action For Race Equality (A company limited by guarantee) Charity balance sheet As at 31 March 2025 Notes € 2025 2024 Fixed assets Tangible assets Investments Current assets Debiors Short term investments Cash at bank and in hand 3 3 Creditors - amounts faling due within one year Net current assets Net assets Funds Income funds Unrestricted funds General funds Designated funds Restricted funds Total funds 13 269,518 163,150 1.414.583 1,847,251 360,978 7,634 159,758 1,670,898 1,838,289 929,129 1,486,273 1.486,276 909,160 909.163 268,614 627,600 590.062 1,486,276 437.910 303,000 168.253 909.163 to members of the company. Approved by the trustees on and signed on their behalf by: sme S Manchanda Trustee chede Date: 11 December 2025 30

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended,31st March 2025 ction For Race Equalit A company limited by guarantee cash flow statemen or the year ended 31 March 202 Notes Group 2025 (261,190) 47,087 Charity 2025 (291,364) Cash provided (used) in operating activities 16 Cash flows from investing activities: Interest income Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents brought forward Cash and cash equivalents carried forward 34,291 35,049 (226,899) 1,690,115 1,463,216 (256,315) 1.670,898 1,414.583 Group 2024 485,575 39,719 (3.993) 35.726 521,301 1,168,814 1,690,115 Charity 2024 478978° 39.497 (3,993) 35,504 514,482 1,156.416 1,670,898 31

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Action For Race Equality (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2025 1 ACCOUNTING POLICIES The principle accounting policies, which have been applied consistently, are as follows: 1.1 Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable io charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 1.2 1.3 Action For Race Equality meets the definition of a public benefit entity under FRS 102, Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. Company status The company is limited by guarantee. The guarantors are the directors of the company. The liability in respect of the guarantee is limited 10 E1 per member. Going concern The financial statements have been prepared on a going concem basis, which is dependent upon the availability of adequate continued funding. The nature of the company's funding is inherently uncertain and should grant funding be discontinued in the future years, the charity would have to find other sources of funding. or significantly curtail its activity. After reviewing the chanty's forecasts and projections, the trustees have a reasonable expeciations that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financia statemenis. 1.4 Group financial statements The consolidated financial statements comprise Action For Race Equality, the charity, and its wholly owned subsidiar, ARE Enterprise Ltd . A separate Statement of Financial Activities and income and expenditure account for the charity has not been presented because the Chantable Company has taken advantage of the exempiion afforded by section 408 of the Companies Act 2006. 32

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Action For Race Equality (A company limited by guarantee) Noses to the financial statements For the year ended 31 March 2025 (continued) 1.5 Fund accounting Unrestricted funds Unrestricted funds are grants and other income received or generated for the objects of the charity without further specified purpose and are available as general funds. General funds are available for use at the discretion of the trustees in the furinerance of the general objecüves of the trust. Designated funds represent unrestricted funds allocated by trustees for particular purposes. 1.6 Restricted funds by the donors. Restricied funds are funds to be used for specified purposes based on the conditions imposed All income and expenditure is shown in the Statemen: of Financial Activities. 1.7 Income Income from grants and donations, including capital grants, is included in the Statement of Financial Activities when the charitable company is entitled to the funds, any performance conditions attached io the grants have been met and the amount can be measured with reasonable certainty. Income is deferred when the charitable company has to fulfil concitions before becoming entitled to it or where it is received for use in a future accounting penod. The notes to the Statement of Financial Activities show the gross amount received together with the changes in the amount deferred. Deferred ncome is included in creditors. Income from charitable trading activities is inciuded in income in the period in which the activity takes place and includes income receivable for training, consultancy, conferences. commission and publication sales. 1.8 Resources expended All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay. Expenditure items have been classified under headings that aggregate all costs related to each category. Where costs cannot be directiy attributed to particular activities. they have been allocated on the basis of staff time spent on each activity. Staff costs and overnead expenses, including any support or governance costs, are allocated to activities on the basis of siaff time spent on those activities. Costs of raising funds are these costs arising from trading activities. 1.9 Pension costs The company operates a money purchase (defined contribution) pension scheme. Contribution payable to this scheme are charged to the statemen; of financial activities in the period to which they relate. These contributions are invested separately from the company/s assets. 33

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended 31st March 2025 Action For Race Equality (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2025 (continued) 3 Total resources expended Staff and extema! staff costs Training and recruitment Premises Contencisemina racies Grants / Payments to partners Travelling and subsistence Audit and legal fees Depreciation Policy & Children & Research Young people 173,072 145,857 2,570 818 10,363 8,683 12 2,578 11,055 3,016 110,594 1,605 1,907 1,389 1,063 2,740 2,644 193.330 286,637 Employment & Enterprise 327,092 1,696 9,599 11,481 7,358 52,325 6,356 1,623 5,577 423.107 Capacity & Partnership Grants & Training 188.418 34.150 2.316 141 6,796 1,208 15.735 8,023 5,950 454 253.270 2,377 173 805 1,543 920 476.588 46.607 support cosis 24,145 197 1,421 241 181 26.185 Restricted Charitable activities Unrestricted Costs of generating voluntary income Charitable activities 36 2025 Total 892.734 6.738 38.070 46.306 20.597 416.189 12,418 6,604 12.796 1.452.453 1,150.137 248,335 53.982 1.452.454 2024 Total 555.849 7,381 29,770 113.627 11.309 313.374 7,134 5.812 3.993 1.048.249 875.469 146.829 25.994 1,048.292

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended, 31st March 2025 Action For Race Equality (A company limied by guarantee) Notes to the financial statements For the year ended 31 March 2025 (continued) 15 Statement of funds General funds Designated funds Restricted funds Total funds Balance Notes 31 March 2024 € 462,124 303,000 a b 168,253 933,377 Incoming 193,297 1.536.269 2,029.566 Outgoing € (302.317) (1,150.137) (1,452.454) Transfers (360,277) 324,600 35,677 Balance 31 March 2025 292,827 627,600 590.062 1,510,489 The balances will be carned forward and used as follows: a The balance will all be utilised in the forthcoming months to meet the delivery commitments made by the charity. b The balance will be used to continue the funding of the charity's mission. Due to the short term nature of the funding that the charity receives the charity is building up a nine month reserve, on grounds of prudence, to finance its activities during the time lag between existing grants expiring and new sources of funds being obtained and in the event of any unforeseen circumstances. Designaied funds are funds Designated funds are unresiricted funds that have been set aside at the discretion of the trustees for following purposes. Service development. research and staffing fund Regional networks 2025 € 477.600 150,000 627,600 2024 198,800 198,800 The charity wishes to contnue its successful work in developing policy research, working with young people and increasing employment for the minority communities In order to achieve these bjectives the charity relies on grant funding which is generally of a short term nature. in order t eliver the objectives mentioned the charity designates its unrestricted reserves for any shorifall funding until the funding is confirmed. Designated funds were increased by transferring €174,600 (2024: £104,200) to the service development, research and staffing fund and €150.000 to regional networks fund 41

Action For Race Equality (A company limited by guarantee) Report of the Trustees and audited financial statements for the year ended 31st March 2025 Action For Race Equality (A company limited by guarantee) Notes to the financial statements For the year ended 31 March 2025 (continued) 16 Reconciliation of net movement in funds to net cash flow from operating activities Net incoming resources (as per the statement of financial activities) Depreciation charge Interest income Decrease (increase) in short term investments Decrease (increase) in debtors Increase (decrease) in creditors Net cash provided by operating activities Group 2025 577,112 12,796 (47,087) (3,393) (221,864) (578,753) (261,190) 2024 € 118,661 3,993 (39,719) (2.975) 14.927 390,688 485.575 577,112 10.961 (46,009) (3,393) (261,884) (568,151) (291,364) Charity 118,661 3,993 (39,497) (2,975) (6,764) 405,560 478,978 17 Commitments under operating leases Total commitments 2025 10,080 2024 6,048 42

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ethnicitypaygapcampaign) to lobby the Government to ensure there is a mandatory requirement on