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2021-07-31-accounts

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JULY 2021

Registered Company number: 03135903 Registered Charity number: 1056453

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

CONTENTS Page
Reference and administrative details 1
Trustees’ Report 2 – 13
Auditor’s Report 14
Consolidated Statement of Financial Activities 16
Charity Statement of Financial Activities 17
Group and Charity Balance Sheets 18
Consolidated Statement of Cash Flows 19
Notes to the financial statements 20 – 28

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 JULY 2021

People for the Ethical Treatment of Animals (PeTA) Foundation is a Registered Charity, number 1056453 and Registered Company, number 03135903.

DIRECTORS

The Directors of the Company who are also Charity Trustees who served during the year were:

L Lovich I Newkirk L Chappell

COMPANY SECRETARY

Ingrid Newkirk

REGISTERED OFFICE

78 Cannon Street London EC4N 6AF

AUDITOR

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

SOLICITORS

Stone King Sewell 3 Queen Square Bath BA1 2HJ

BANKERS

Co Operative Bank Head Office PO Box 101 1 Balloon St Manchester M60 4EP

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2021

The Trustees of the Charity, being the Company’s Directors, present their report and financial statements for the year ended 31 July 2020. These financial statements are a consolidation of the Charity with its wholly owned subsidiary PeTA Europe Limited. The financial statements have been prepared in accordance with Statement of Recommended Practice “Accounting and Reporting by Charities” SORP 2015 (Second Edition, effective 1 January 2019) (FRS 102), in preparing the annual report and financial statements of the Charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

PETA is a company limited by guarantee and is a registered charity. It has no share capital and the liability of the members is limited to £1.

PETA was incorporated on 8 December 1995. The main aim of the Charity is to research the treatment of animals throughout society and to educate the public about steps to reduce cruelty to animals.

Organisational Structure

The Trustees of PETA were:

L Lovich I Newkirk L Chappell

Trustees were originally asked to serve by the founder. They are experienced in animal rights issues and animal protection matters and often have their own business experience. They receive legal advice from experienced solicitors when necessary, as, for instance, when there is a new regulation or law that might affect the organization.

Risk statement

The major risks to which the Charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to mitigate those risks. The Trustees, aware that this is an ongoing process, updated their risk assessment in the year and are satisfied that, where appropriate, effective controls are in place to mitigate against key risks.

Public Benefit

The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard with the Charity Commission’s general guidance on public benefit “Charities and Public Benefit”. After careful consideration, they have concluded that:

  1. The aims of PETA continue to be exclusively charitable.

  2. The aims, and the work done in pursuance of them, give clearly identifiable benefits to the public including, both indirectly and directly, to individuals in need;

  3. The benefits are for the public at large, and are not unreasonably restricted in any way (and certainly not by ability to pay); and

  4. There is no significant detriment or harm arising from the aims or activities.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

PeTA Europe Limited

PeTA Europe Limited (PEL) is a wholly owned non-charitable subsidiary of the Charity. The results of PEL are consolidated in the financial statements of the Charity set out on pages 14 - 25. During the year the aims of PEL continued to be that of preventing or relieving suffering of animals, in particular through seeking participation in campaigns to end or curtail animal suffering, and educating the public concerning animal abuse, protection and related subjects.

On 30 September 2009, People for the Ethical Treatment of Animals (PeTA) Foundation commenced the transfer of all the activities and assets of PeTA Europe Ltd., following discussions with the Charity Commission to ensure that all of PEL’s activities could be validly carried on by PETA.

MISSION

We believe that animals have an intrinsic worth of their own, quite apart from their utility to humans, and should not be reduced to human commodities. Therefore, PETA’s motto is “Animals are not ours to experiment on, eat, wear, use for entertainment, or abuse in any other way.”

PETA works through public education, research, legislation, special events, celebrity involvement and protest campaigns.

STRATEGY

Public awareness is PETA’s most effective weapon against animal mistreatment. The video footage and other findings from our exposés of facilities in which animals are neglected and abused draw millions of Web viewers each year. Our media campaigns—and especially our use of celebrity spokespeople—put animal issues in the headlines of major media outlets every single day. Our grassroots outreach, with demonstrators and leafleters on the streets all over the UK, is constantly reaching new consumers.

With this approach, we’re getting animal tests replaced with sophisticated non-animal test methods. We’re persuading designers and retailers to stop selling fur and skins. We’re turning people away from live-animal shows and exhibits. We’re engaging young people and revolutionizing the way future generations will regard animals. And we’re inspiring countless people to go vegan, to buy only cruelty-free products, and to make animal-friendly choices in all aspects of life. PETA is using this method in our work to achieve a world in which animals are respected and people are aware of and concerned about the ways in which their daily decisions affect the lives of other sentient beings.

OBJECTIVES AND ACTIVITIES

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TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENTS AND PERFORMANCE

The sections which follow demonstrate the manner in which PETA met its charitable purposes in 2020–2021 and list the organisation’s principal achievements within the scope of each of its stated objectives which benefit the public.

Preventing or Relieving the Suffering of Animals and Promoting the Prevention and Relief of the Suffering of Animals

PETA is an active member of the PETA Science Consortium International e.V. The Science Consortium coordinates and applies its members’ scientific and regulatory expertise in order to promote reliable and relevant strategies for reducing and ultimately eliminating the use of animals in experiments. Its website (ThePSCI.eu) has continued to grow and is a valuable resource for those involved in regulatory testing.

This year, the Science Consortium was appointed as a member of the European Commission’s influential high-level roundtable on the Chemicals Strategy for Sustainability, ensuring a voice for animals is heard on key decisions made in this important arena.

PETA and our affiliates continue to engage with the European Chemicals Agency (ECHA) – the administrative body overseeing the European Union’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) programme – to promote the reduction and replacement of animals in testing. For example, the Science Consortium has continued to support companies in appealing ECHA requests for tests on animals.

Furthermore, with the help of consultants, the European Commission is currently investigating how polymers could be registered under REACH. This has the potential to increase the number of animals used in testing dramatically. Acting on behalf of the Science Consortium, PETA’s scientists have contributed to the advisory group that analyses potential animal test requirements.

In order to minimise tests on animals, the Science Consortium has presented at international conferences on the topic of using fish in toxicity studies and submitted numerous expert comments in response to consultations run by the European Commission.

The Science Consortium provided an early-career scientist with an award for his poster that he presented at the European Commission’s JRC Summer School on Non-Animal Approaches in Science. The award recognises the work of the scientist in developing and optimising a three-dimensional human cell model for assessing the photoirritancy and eye irritancy of medical devices and drugs without using any animal components.

Consortium scientists highlighted non-animal testing approaches at the 60th annual Society of Toxicology (SOT) meeting, the largest toxicology conference in the world, attracting thousands of attendees each year from government, industry, and academia. In the weeks leading up to this year’s virtual meeting, PETA scientists hosted five webinars through an SOT speciality section on modern approaches to test substances for their potential to cause cancer, drawing hundreds of attendees. They also presented on this topic during the meeting and won an award for their poster showing how these approaches can replace the use of mice and rats in tests. PETA scientists also presented on animal-free methods that can show how chemicals and other substances affect the lungs once inhaled.

When PETA learned that mice and baby squirrels were being accidentally caught in water-filled “pot traps” made to catch insects for a Dutch university project, we contacted the institution and quickly persuaded it to change course. To further our impact, we offered the university humane methods for studying insect biodiversity that will save insects, too.

PETA has continued to engage with universities and companies and urge them to end the use of the forced swim test, in which terrified rats, mice, or other small animals are plunged into sheer-sided containers of water and search frantically for a way out. Our campaign has even caught the attention of scientists and regulators and led to an article denouncing certain uses of the test.

Following PETA’s decade-long campaign, iconic London department store Fortnum & Mason made the decision to stop selling cruelly produced foie gras. Our campaign involved tens of thousands of letters from our supporters, ads in the London Underground, countless colourful protests, and involvement from celebrities including the late Sir Roger Moore.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENT AND PERFORMANCE (continued)

After PETA campaigns against cruelty to ducks and geese, Nirvana Spa in Wokingham and cruise company ROL Cruise also dropped the foodstuff, which is made by force-feeding birds, from their offerings.

An application for a vile factory farm in Sprotbrough – which would have confined nearly 1,000 pigs at a time to a small building where they wouldn’t have been able to breathe fresh air or see daylight – was rejected after 22,000 PETA supporters signed a petition urging Doncaster Council to reject the application.

PETA vigorously opposed proposed rabbit farms in Cornwall and Buckinghamshire – which would have treated hundreds of female rabbits like breeding machines and sent their babies off to slaughter just weeks after birth. After hearing from PETA and tens of thousands of our supporters, council members ruled in our favour and rejected the plan.

PETA worked with numerous travel companies to help them adopt more animal-friendly holiday itineraries and policies. After prompts from PETA, travel providers Destinology, Pure Destinations, Honeymoon Dreams, and Your Co-op Travel agreed to stop selling tickets to SeaWorld, the world’s most notorious marine abuse ment park. Southall Travel, dnata Travel Group, Pure Destinations, and Honeymoon Dreams previously offered elephant rides and also agreed to remove these from their itineraries. And the petitions and calls from nearly 100,000 compassionate people moved ExxonMobil to stop sponsoring the deadly Iditarod dog-sled race in 2022.

After a catastrophic explosion hit Beirut, a PETA staff member travelled to the city to assess the situation and help the dogs, cats, and other animals affected by the devastation. While there, the team member helped scour the ruins for animals, delivered dog food to guardians displaced by the blast, and found loving homes for homeless animals.

Retailer Canada Goose announced it would end the sale of fur after years of campaigning by PETA, our international affiliates, and dedicated activists around the globe – including eye-catching protests, hard-hitting exposés, celebrity actions, and boardroom and legal battles.

After more than two years of campaigning by PETA and our affiliates – which included protests in London and other major cities around the globe, as well as more than 320,000 people using our online action alerts to pressure the company – French fashion giant American Vintage banned the use of angora in future collections. Italian fashion house Valentino followed suit, and after pressure from PETA, it also confirmed that it won’t use angora wool or fur in future.

Ireland shut down its few remaining mink farms – joining the ranks of other countries, including England, Scotland, and Wales. This is an issue PETA has actively worked on for years – sending tens of thousands of letters to the country’s agriculture minister, staging provocative protests, and working with notable artists and celebrities to keep the issue front and centre of the public and political arena.

Our work saw luxury fashion company Puig stop the sale of items made from the skins of snakes, crocodiles, and other exotic animals.

After we shared a PETA exposé, which revealed that crying alpacas are roughly shorn and left cut up and bleeding from deep wounds, with fashion brands Next, New Look, Matalan, and Ted Baker, they all confirmed that they will end the use of alpaca in their collections. In a similar vein, after sharing our exposé of the mohair industry in South Africa – the source of the majority of the world’s mohair – leading interior designer Kelly Hoppen stopped producing mohair items and has banned the cruelly obtained fibre from future collections.

Advancing Public Education Concerning the Care and Treatment of Animals

Media outlets reported on our annual Fashion Awards, which celebrated the luxury labels and forward-thinking, up-andcoming brands that made big statements for animals in 2020. The coverage helped us inform shoppers that there is now a vast array of animal-friendly styles for anyone who wants to look good and feel good about their fashion choices – from Henrik Vibskov ’s range of coats with Ecodown recycled-polyester filler to FABORG’s Weganool , a plant-based wool, and Pīferi , winner of PETA’s Vegan Luxury Award for its high-end vegan shoes.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENT AND PERFORMANCE (continued)

PETA’s fourth annual Vegan Homeware Awards were issued, recognising top designs and innovations that guarantee a stylish, cruelty-free home. The awards – and subsequent media coverage – provided consumers with information on leaving animals out of their interior-design choices.

PETA organised many eye-catching events and demonstrations to raise awareness of the ways in which animals suffer on factory farms, on fur farms, and in the entertainment industry. For example, as part of our ongoing efforts against foie gras, we marked St George’s Day with a dramatic stunt that grabbed the attention of the media and passers-by: a supporter sat at a dinner table, next to which a sign read “Foie Gras: Barbaric, Not British”. The supporter was “force-fed” her dinner through a tube – the same way foie gras producers pump grain into the stomachs of terrified geese and ducks to enlarge their livers, a process that’s so un-British it’s illegal in the UK.

In light of reports that minks have tested positive for coronavirus on fur farms across Europe – and workers are believed to have contracted the virus from the animals – PETA supporters took to the streets of Milan ahead of the city’s fashion week wearing stylish, high-end versions of hazmat suits. The protest ensured that media coverage of the event drew attention to the suffering of animals in the global skins trade – and highlighted that today’s top designers are dropping fur in droves.

We brought stilt walkers to Parliament to call on leaders to stand tall for animals by supporting a sales and import ban on fur.

As conservation experts warned that the trade in exotic skins risks fuelling the spread of diseases like COVID-19, a trio of PETA supporters wearing bright yellow hazmat suits and gas masks descended on London Fashion Week to call on designers to drop exotic skins from their collections.

We placed eye-catching billboards and bus adverts across the UK and Europe to advance public awareness on issues which affect animals. For example, we plastered Rome and Copenhagen with ads reminding people of the link between pandemics and mink farms. We also blitzed the county of Powys – known as the “poultry capital of Wales” – with ads pointing out that the only sure-fire way to get rid of the county’s monstrous chicken factory farms is to go vegan.

PETA made exciting headway in our campaigns for animals used for food. By conducting an undercover investigation that revealed bleeding, dead, and decomposing birds at suppliers for the Happy Egg Co, we shattered the myth that “free-range” means cruelty-free.

Our corporate team spoke on a panel about sustainable eating at the Food Matters Live trade show, making sure animals were not left out of the conversation.

PETA, Cruelty Free Europe, and over 450 cruelty-free brands and companies working towards regulatory change – including Dove, Simple, and The Body Shop – sent an open letter to the European Parliament, the European Commission, and the European Council calling on them to uphold the EU Cosmetics Regulation’s animal testing and marketing bans, which set a precedent for assuring safety without subjecting animals to cruel tests.

PETA obtained and released video evidence documenting the misery of animals used in forced swim test experiments in University of Bath laboratories and continues to pressure the institution to end this cruelty.

PETA spokespeople appeared on numerous television, radio, and podcast programmes to promote animal rights. Notably, spokespeople appeared on Good Morning Britain , one of the UK’s highest rated morning TV programmes, to provide expert commentary on a variety of issues, including the use of animals for food and fish sentience, and to encourage people not to use animal words in a derogatory way.

PETA gave our remote presentation “Changing the World with Your Wardrobe” at six top universities, including Condé Nast College of Fashion and Design, to inform fashion students about the use of animal skins in fashion.

With the help of a generous supporter, we delivered over 100 copies of PETA founder Ingrid Newkirk and Gene Stone’s book AnimalKind to secondary schools and public libraries in Gloucestershire.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENT AND PERFORMANCE (continued)

Celebrities Gemma Collins, Lucie Donlan, Wallis Day, Greg James, and Dani Harmer all posed for PETA ad campaigns promoting kindness towards animals. The campaign images were widely shared on social media platforms by their legions of fans.

Actor Alan Cumming sent a letter on PETA’s behalf to MP Alok Sharma, the president of the United Nations Climate Change Conference (COP26), urging him to ensure only vegan food is served at the event. The appeal received widespread media attention, highlighting that the meat, egg, and dairy industries are a leading cause of the climate crisis the Glasgowbased event seeks to combat.

SuperValu, one of Ireland’s biggest supermarkets, dropped the coconut milk brand Chaokoh after it was implicated in PETA Asia’s investigation into the use of monkeys in Thailand’s coconut industry.

PETA teamed up with fashion brand Skinnydip London to release a joint line of clothing and accessories – emblazoned with colourful animal rights messaging, like “fur is dead” and “live cruelty-free” – allowing fashion fans to wear their hearts on their sleeves.

We offered expert advocacy to numerous government consultations on issues related to the abuse and exploitation of animals, including keeping primates as “pets”, banning the live export of animals for fattening and slaughter, and the proposed Animal Welfare (Sentience) Bill.

Hythe Town Council passed a motion decreeing that only vegan food be served at official events. The motion was introduced by a PETA supporter and Green Party councillor, in line with the council’s climate and ecological emergency declaration, following discussions with PETA.

To show that you can make anything vegan, we teamed up with top Flemish chef Nicolas Decloedt to put a vegan spin on a classic Belgian dish, moules-frites.

We released a new video exposé of a farm in Vietnam that supplies snake skin for use in the global leather industry. The footage revealed horrific cruelty to snakes: workers sealed their mouths and anuses with rubber bands and then inflated them to death with an air compressor, crushing their heart and causing severe pain. The video, shared by many online, reminds consumers exactly why they should steer clear of exotic animal skins.

PETA issued tips (printed in the media and published on our blog) to protect companion dogs, cats, and rabbits during extreme weather and fireworks.

We responded to the surge in “pedigree” and “designer” puppies popping up on the Instagram pages of numerous celebrities by placing a heart-wrenching billboard in central London calling for people to stop fuelling the puppy breeding trade that prevents homeless dogs in shelters from getting a home. The ad campaign drew the attention of passers-by and was also featured in numerous media outlets, giving the issue added exposure.

In our work for animals used for fashion, we partnered with other charities to deliver more than 1 million signatures in support of our joint campaign for a Fur Free Britain. The government has since reaffirmed its intention to bring forward a sales and/or import ban on fur. PETA also submitted detailed evidence outlining the cruelty inherent in the trade, the decline in demand for fur, and the popularity of similar fur bans across the world.

Following incidents in which young people were involved in cruelty to animals, PETA sent humane education kits to schools in an effort to prevent future incidences of violence. Our materials are designed to teach young people to have respect for all members of the community, regardless of species.

More and more companies are using the “PETA-Approved Vegan” logo, which makes it easier for compassionate shoppers to spot animal-friendly fashion items on the shelves.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENT AND PERFORMANCE (continued)

Every month, we reach around 4 million people on social media with our animal rights messages and achieve almost 600,000 page views on PETA.org.uk, where people can find helpful information about the link between animal abuse and violence to humans, making choices that don’t cause animals to suffer, ways to lead a healthier lifestyle and reduce the risk of developing diseases, and the devastating impact that the meat, egg, and dairy industries have on the environment.

We secured free placement of Tom Hardy’s animal adoption ad and Gemma Collins’ anti–marine parks ad in New! And OK! magazines. Altogether, we garnered over £100,000 worth of free ad space.

The market for meals, snacks, and drinks free from meat, eggs, and dairy is stronger than ever – and PETA recognised some of the most exciting new plant-based offerings in our eighth annual Vegan Food Awards. The awards logo was proudly displayed by some of the winners, including KFC, Papa John’s, and Nando’s.

Our corporate team actively worked with restaurant chains and other food establishments to help them develop and promote their vegan options, making it even easier for people to enjoy compassionate dining. Following outreach from PETA, new vegan options were added by businesses including Wimpy UK, Papa John’s, Burger King, and British Airways. Waterstones, Welcome Break, and Deliveroo all shared our vegan starter kit on their websites and social media platforms, and we engaged with Costa Coffee, Harry Ramsden’s, Subway, Thames Water, Birds Eye, and Kew Gardens to promote and develop vegan foods.

At our request, a dozen MPs joined PETA in going vegan on Earth Day to promote eco-friendly, plant-based eating among their constituents.

We spoke at six fashion universities and colleges around the UK – including the prestigious Fashion Retail Academy – providing aspiring designers, fashion journalists, and businesspeople with information about the suffering of animals used for fashion. We also introduced them to exciting, modern technology and innovations that are making animal-derived materials redundant.

With the help of celebrity supporter Deborah Meaden, PETA launched a campaign calling on ABTA (the largest British travel association) to put visiting marine parks with cetaceans on the list of unacceptable practices. The campaign has garnered national media coverage.

Conducting and Publishing Research

PETA recently conducted its first-ever vegan car interior survey, and the results are good news for animals. Vegan interiors were defined as consisting of no animal-derived materials on any surface, including steering wheels, seats, panelling, and gear sticks. The survey found 13 major car companies with vegan models, and the vegan model was standard in many of them.

The takeaway market is booming because of the pandemic, and PETA helped chicken shops meet the demand for plantbased meats with its new “Guide to Vegan Fried Chicken for Takeaway Businesses”.

PETA placed opinion pieces in The Independent , Harper’s Bazaar , The Herald , and euronews , among other news outlets around the world, on subjects ranging from the suffering endured by sheep in the wool trade to the link between factory farms and pandemics.

FUTURE PLANS

Based on our experience in the past year and our analysis of new opportunities, PETA will carry out the following activities in the year ahead:

Advancing Public Education Concerning the Care and Treatment of Animals

We will provide the public with information about cruelty-free products and, where necessary, give examples of crude and egregious animal tests. We will also use consumer pressure to persuade companies conducting or commissioning these tests to change their policies.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

FUTURE PLANS (continued)

PETA will continue to respond to threats of increased use of animals in laboratories – such as legislative changes or plans to build new facilities – and to new information about existing animal testing. We will bring these issues to the attention of the public and the media and mobilise our supporters to express objections through appropriate democratic means.

On our website and social media platforms and in our other written materials, PETA will continue to provide accurate, current information about experiments on animals and their alternatives. We will also continue to give such information to the Science Consortium to publish on its website.

PETA will campaign to persuade retailers and restaurants to remove foie gras from their shelves and menus and increase their vegan options, making it easier than ever for people to make compassionate food choices.

PETA will work to persuade more companies to use the “PETA-Approved Vegan” logo on their clothing and accessories to make it easier for consumers to choose fashion items that don’t result from animal suffering.

We will distribute various forms of literature – including leaflets, magazines, guides, and postcards – to inform the public about the many ways in which animals are abused in experiments, for food, for clothing, and in the entertainment industry and the detrimental consequences that this abuse has, in turn, on the planet, our health, people living in poverty, and our moral progression.

In order to inform the public about the health benefits of adopting a vegan lifestyle and the ways in which animals suffer for human interests, PETA will look to secure free advertising space in magazines, online, and on the radio for our ads and public service announcements.

PETA will work to inform tourists visiting Spain about the barbarity of bullfighting – and the psychological scars it can leave on spectators – and encourage tourists to avoid camel, donkey, and horse rides wherever they are offered.

We’ll continue to raise awareness of pedigree dogs’ predisposition to genetic disorders and the ways in which they suffer as a result of being bred for exaggerated physical characteristics. In addition, PETA will encourage the public to consider adopting from animal shelters and will promote the spaying and neutering of animal companions to address the cat and dog overpopulation crisis caused by breeders and pet shops.

As a tool against companies that refuse to stop unethical practices, PETA will also call on celebrity supporters to endorse various campaigns.

PETA will continue to inform the public about the benefits of vegan eating with regard to health, the environment, and animal welfare through media campaigns, online promotions, mailings, and eye-catching demonstrations and events.

We’ll continue to expose the cruelty inherent in using animals for their skin and to encourage consumers to choose animalfree clothing.

PETA will keep supplying companies and other entities that use animals with information about non-animal approaches, and we’ll keep engaging with students and others to foster studies and career development that don’t involve animal use.

In response to instances of cruelty involving young people, PETA will provide schools with our free humane education kits.

Preventing and Relieving the Suffering of Animals

PETA will engage in regulatory actions, consultations, and expert working groups to ensure that the EU cosmetics testing ban is not undermined by companies that test ingredients on animals for the purposes of REACH.

The Science Consortium will intervene in cases about animal testing before the ECHA Board of Appeal and the European Court of Justice, providing points of principle that may influence how decisions are made by ECHA in the future.

PETA will work with chemical companies, regulators, and governments to ensure that all possible opportunities to reduce animal testing under REACH are taken advantage of.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

FUTURE PLANS (continued)

Our head of science, science policy advisors, and research associates, as accredited stakeholders, will participate in the work of a number of international forums, including the OECD Test Guidelines Programme, the EURL ECVAM Stakeholder Forum, the European Food Safety Authority, and ECHA as well as that of international and European medicine regulators (of both human and veterinary products), where necessary, to promote the development and use of non-animal methods in regulatory testing. PETA’s head of science and science policy manager, representing the Consortium, will participate in various ECHA meetings, including those of the Member State Committee. They will also participate in OECD meetings, representing the Science Consortium through the International Council on Animal Protection in OECD Programmes.

PETA will continue to campaign for the repeal of Section 24 of the Animals (Scientific Procedures) Act 1986 to ensure that transparency in the regulatory system is maximised, and we will advocate for greater protection of animals used in science as the UK prepares to leave the EU.

We will continue to provide financial support for the development and validation of appropriate non-animal methods as they arise.

PETA will continue to seek and exploit opportunities to promote the replacement of live animals in undergraduate teaching in the UK. We will also work towards the elimination of dissection in schools.

PETA will continue to oppose factory-farm planning applications, focusing our resources on those farms that would have the most negative impact on the largest number of animals and those that would set negative trends that others may follow, such as zero-grazing facilities.

By organising eye-catching events, offering vegan food samples, and informing people about the options available, PETA will continue to advocate vegan eating.

We will continue working to develop good relationships with retailers and encourage them to promote animal-friendly fashion and stop selling products that come from cruel industries.

PETA will also keep working to encourage department stores, major venues, and sporting-event organisers to implement more animal-friendly policies. This will include having meetings with key decision-makers, spreading the message to buy only from ethical companies, and posting action alerts to enlist the help of our supporters in writing letters.

We will maintain our efforts to reduce the number of animals exploited for human entertainment by informing the general public about the suffering animals in the industry are forced to endure and encouraging tour operators not to promote activities that are cruel to animals.

We will continue working with groups in Spain and elsewhere to push for bans on bullfighting.

We will continue to develop our relationship with travel companies, offering guidance on animal welfare issues and animal welfare policies to help reduce the suffering of animals in tourism.

Conducting and Publishing Research on Animal Care, Animal Behaviour, the Use and Treatment of Animals, and Vegan Foods

PETA will continue to share investigative findings with designers and clothing retailers and promote developments in animal-free fabrics.

We will maintain our own knowledge base with regard to alternatives to using animals and, as appropriate, disseminate research and other information. PETA’s head of science, science policy manager, research associate, and science policy advisors will continue to participate in scientific workshops, conferences, and symposia to represent the scientific case for reducing animal use, and we anticipate delivering papers and presentations at these and other events.

PETA will conduct research in support of a wide variety of animal protection issues and publish and distribute reports and informational materials to the general public throughout the year in an effort to reduce animal suffering.

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PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

FUTURE PLANS (continued)

Through the Science Consortium, PETA will continue to publish articles on minimising testing on animals in relevant outlets.

PETA will continue to develop relationships with restaurants to share the benefits of vegan food to human health, the planet, and animals.

REMUNERATION POLICY

Consistent with its charitable mission, PETA sets compensation at modest and charity-appropriate levels while still ensuring it can recruit and retain the skilled, experienced staff necessary to carry out its work in a competitive job market. PETA is committed to dedicating as much revenue as possible directly to its charitable activities, so it sets staff compensation with this in mind.

FUNDRAISING POLICY

We are registered with the Direct Marketing Association (DMA) and the Fundraising Regulator, and we commit to conducting legal, open, honest, and respectful fundraising, meeting the standards set in both organisations’ Codes of Practice. We also ensure that nobody who appears to be vulnerable is asked to commit to giving, as per our own internal guide of conduct for staff and following the DMA guidelines for dealing with vulnerable persons. Our fundraising is carried out by a team of professional fundraisers who are all employed by PETA. In 2021, we received a total of 136 complaints (2020: 184) from individuals concerning fundraising appeals that we sent them. All these complaints were dealt with by us, and there was no requirement for us to escalate them to the Fundraising Regulator.

FINANCIAL REVIEW

Results for the year

A summary of the results of the Group and Charity is set out in the Statement of Financial Activities on pages 14 and 15. Income for the Group for 2021 totalled £5,545,693 (2020: £4,504,002). Net income totalled £682,116 (2020: net income of £231,361).

PETA has received/accrued legacy income totalling £987,284 (2020: £898,617) in the year ended 31 July 2021, as well as donations and interest receivable, leading to a total income of £5,545,693 (2020: £4,504,002).

A summary of the trading results and balance sheet of the subsidiary, PeTA Europe Limited, is set out in note 7 to the accounts. At 31 July 2021 the Group had accumulated funds of £4,023,144 (2020: £2,982,661).

11

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2021

Reserves policy

It is important to provide financial stability and in order to continue and maintain our principal activities we build up appropriate general and designated reserves, together classed as unrestricted reserves. Reserves are particularly important for PeTA as we are entirely dependent on voluntary income which is unpredictable.

We aim to maintain free reserves equivalent to between six and twelve months unrestricted expenditure. At the year-end free reserves (unrestricted reserves less fixed assets) totalled £3,872,830 (2020: £2,869,520). This represents approximately 12 months’ unrestricted expenditure. Total funds at the year end were £4,023,144 of which £123,140 were restricted.

The Trustees are satisfied that the Charity is able to meet its obligations when they fall due.

Investment powers, policy and performance

In accordance with Article 4 of the Charity’s Memorandum of Association and the Trustee Act 2000, the Charity’s investment policy is as follows:

Surplus cash of the Group shall be invested appropriately for adequate protection in the event of emergencies, unforeseen contingencies, and to enable the Charity to plan effectively for longer term projects over a five year horizon. Such investments shall be undertaken consistent with the Charity’s animal protection mission, meaning no assets shall be invested in any enterprise directly engaged in the exploitation of animals. The Charity may invest in equities, bonds, cash equivalents, or other mechanisms consistent with this policy. This is in accordance with the Charity’s investment powers and ensures that the appropriate balance of liquidity, security and income is maintained.

Grants

The Trustees do not regard the Charity as a grant making charity. However, periodically the charity receives donations restricted geographically meaning that a grant has to be made to an organisation able to fulfil the instructions of the donor.

Principal risks

PETA’s principal risks are loss of funding, data breach, fraud, and reputational harm. PETA mitigates these risks by employing a wide range of fundraising methods; using strict internal procedures regarding data protection and handling and working with an experienced IT team to ensure systems are secure and up-to-date; using strict internal procedures on invoice processing and money handling; and obtaining legal advice and thoroughly training staff in order to avoid reputational harm.

COVID-19 presented a major new risk to PETA. We strongly encouraged staff to take every precaution to protect their own health and successfully made the transition to working from home. During the lockdown, PETA was unable to conduct creative direct outreach events, which are usually an opportunity to disseminate animal rights literature while also generating media coverage that takes our message to countless more people. Fundraising was at risk not only because of the wider economic impact of the pandemic and its effect on donors’ ability to donate but also because people couldn’t get to the post to respond to mail appeals. PETA met these challenges through the use of online outreach, our first virtual (Zoom) fundraising events, the promotion of online giving in mail appeals, and e-mails and social media posts urging our supporters to remember that animals still need our help during crises primarily affecting humans.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also Directors of PeTA Foundation 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,

12

PEOPLE TrY)R THE ETHICAL 111EATMENT OF ANIMAIS (PeTAI FOUNDATION TRUSTEKS. REPORT (coTrtinDed) FOR THE YEAR ENDEDJI JULY 2021 STATEMEprf OF TRUSTEFS. RFSPONSIBILfnFS {eootl•lltd) including the incorne End expetwJitur¢, of the ¢lwi¢•ble Coo]rAny 8nd 8mup for thttt pcriil In pr¢pJrin8 th5¢ finan¢i81 Statemen￿ Ihe"ITUStets required to: selttt suitsble accwntjng policics appty trm C(￿5]#￿. obsetve the Meth￿15 and principk5 itl th¢ Chariti¢5 SORP. ak¢ jud8em¢nisond cstimatesth& are rcasonabk aThJ wu¢knt Statc whcthcr appliuble UK Ac¢ouniin8 stsndards have bttn folltswe4 Abie&¢ to thiy material (kr4nures disck>5 and explained in tk fit￿ncial staments' Pr¢pa￿ th¢ fLrwiciBi 5W+ana)ts OD the goin8 co[￿￿ unless li is to P￿5￿M¢ th¢ C(mJw will tinuc in Trustees u¢ rtsTAmsibk for kceping prorrt ¥¢owitin8 record% which di￿￿)St with re4sonabk x¢u￿Y at thy tsme the fManc1￿ wsition of thc c￿npWnY gnd youp athj 10 enable IIKM th erEure thc financid statcmLts wmply with tkn¢ Cunp&nies Act 21KK>. lThey are also rcsponsibk for ¥af¢gwding ts ss ofilxcornpgny and 8TOUP hen¢¢ foriaklng In $0 fAr as w¢ •waff'. 'lThete is no ￿levant audit iThfonnaLion of which the ¢htri￿le Compony's auditor is unaware.. and The TTua¢¢S hav¢ tsken •ll slep$ thal they ou8hi w havc ￿keft w mllkc themsrlvw aware of any relevani audit infornlation and to establish th#1 th¢ awjiior is ffivare of inf01m￿th. (baUtyln8thlrd party 11￿¢￿DIty provlM• 'lThe Charity hds granted att ittdemnity ￿ its Trusiees 889ina liability ITh re5PXt ot'a¢¢ion% broughl ty third pArtie4 subjert the ￿nditionS sci oul in Ih¢ Lomwies Ad 2(M)6. S￿￿ qualifyL"n8 third pwty indemnily wjvision remoiTh% in force at the datc of llpproviTrg thc Truses' w. AUDITORS Th¢ ¢hari¢y'$ oudjwry Haysmxintyrc LLP. hav¢ • willingnr¥5 iu continue in Ind a rejoliition pn)rA)%ln8 th¢iT r¢appoinlmenl will ￿ pui io the ￿￿berS in o¢¢(*dw with the C(Anp￿leS Act 21Xk6. This T¢[￿n h&$ been PTcpJred in I￿￿Kdancr with the Sw¢ment of Recunmen&d Pr#titt AcC￿￿ting and Reportin8 by ChaTitiCS SORP 2015 (Second FAiiiion, cffe¢ilve l January 20191 IFRS 1021 in x¢0rd￿¢ with th¢ spe¢iAI provisions of th¢ Lompanies Act 2Q06 ￿latIng 10 Small cnti¢i¢5. By Order of the PA)•rd of Tru￿￿$ IDgrid Newkfrk Trus1ee Date: 07112Ql 13

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

Opinion

We have audited the financial statements of People for the Ethical Treatment of Animals (PeTA) Foundation for the year ended 31 July 2021 which comprise the Consolidated and Parent Charitable Company Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 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 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.

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’ Report.

14

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION (CONTINUED)

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 trustees’ responsibilities statement set out on page 11, 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:

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 GDPR, health and safety regulations, fundraising regulator and employment 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 SORP and tax regulations.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

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.

15

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION (CONTINUED)

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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

Adam Halsey (Senior statutory auditor) 10 Queen Street Place for and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG

Date: 21 January 2022

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

16

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME & EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2021

2021 2020
Unrestricted Restricted Total Total
Note £ £ £ £
INCOME FROM:
Donations and legacies 3 4,393,938 1,113,884 5,507,822 4,476,809
Investment income 24,441 - 24,441 27,193
Other income 317 - 317 -
-------------------- ------------------- -------------------- --------------------
Total income 4,418,696 1,113,884 5,532,580 4,504,002
-------------------- ------------------- -------------------- --------------------
EXPENDITURE ON:
Raising funds 876,470 - 876,470 680,912
Charitable activities 2,911,872 1,062,122 3,973,994 3,591,729
------------------- ------------------- -------------------- --------------------
Total expenditure 4 3,788,342 1,062,122 4,850,464 4,144,763
-------------------- -------------------- -------------------- --------------------
Net income before gains on investments 630,354 51,762 682,116 231,361
Net gains on investments 358,368 - 358,368 27,966
------------------- ------------------- -------------------- --------------------
Net movement in funds 988,722 51,762 1,040,484 259,327
Funds at 1 August 2020 2,911,283 71,378 2,982,661 2,723,334
--------------------- ------------------ --------------------- ---------------------
Funds at 31 July 2021 11 3,900,005 123,140 4,023,144 2,982,661
========== ========= ========== ==========

All amounts have been derived from continuing activities. There are no other gains or losses other than those stated above.

The accompanying notes are an integral part of these accounts. Details of comparative figures by fund are disclosed in note 16.

17

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

CHARITY STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME & EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2021

2021 2020
Unrestricted Restricted Total Total
Note £ £ £ £
INCOME ON:
Donations and legacies 3 4,407,040 1,113,884 5,520,924 4,476,809
Investment income 24,441 - 24,441 27,193
Other income 317 - 317 -
-------------------- ------------------- -------------------- --------------------
Total income 4,431,798 1,113,884 5,545,682 4,504,002
-------------------- ------------------- -------------------- --------------------
EXPENDITURE FROM:
Raising funds 876,470 - 876,470 680,912
Charitable activities 2,911,533 1,062,122 3,973,655 3,591,362
------------------- ------------------- -------------------- --------------------
Total expenditure 4 3,788,003 1,062,122 4,850,125 4,272,274
------------------- ------------------- -------------------- --------------------
Net income before gains on investments 643,795 51,762 695,557 231,728
Net gains on investments 358,368 - 358,368 27,966
------------------- ------------------- -------------------- --------------------
Net movement in funds 1,002,163 51,762 1,053,925 259,694
Funds at 1 August 2020 2,888,032 71,378 2,959,410 2,699,716
--------------------- ------------------ --------------------- ---------------------
Funds at 31 July 2021 3,890,195 123,140 4,013,335 2,959,410
========== ========= ========== ==========

All amounts have been derived from continuing activities. There are no other gains or losses other than those stated above.

The accompanying notes are an integral part of these accounts.

18

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS {PeTAI FOUNDATION COMPANY NUMBER: 0313YJ03 GROUP AND CHARITY BALANCE SHEETS ASAT31 JULY 2021 Group CTrarity 2021 GroDP 2020 Charity 2020 Not¢ FIXED A&SETS T*nBiblc fLKed assets Inv¢s(ments 27.175 2,028.133 27,175 1028,134 41.763 1.661.939 41,763 .661.940 2.055.308 1055,309 1,703.702 .703.703 CURRENT A&SETS Deblors Cash * bonk 683.622 1.534.160 684.231 1.523.741 102,016 1,40&524 102,649 1.382.640 1217.782 1207.972 1.508.540 1.4115.289 CURRENT LIABILITILS Creditors.. amounti falling thle within onc ycar (249.9451 1249.9461 229.5811 1229.3821 iYET CURRENT A&SETS 1,967.837 1.938.026 1278.959 1255.7(>7 NET ASSETS 4,023.145 4.013J35 1982.661 1939.410 FUNDS UNRESTRicfED FUNDS aenernI fund5 Tradin8 funds 3,8W.195 9.810 3.81KJ,195 2,888,032 23.251 1888.032 RESTRICTED FUNDS R¢ytrict¢d funds 123.140 123.140 71.378 71.378 TOTAL CHAIUTY FUNDS 4,023,145 4.013,335 2,982,661 2.959,410 Thc financial st&cmcnts havc bctn ry¢Ffjr¢d in with the pwis1￿ wli¢abk to ¢h•ritsbk ¢4)mpanies sllly'L￿ to the small companies re8ime. The fin8ncial statLY￿Thts w¢rc 8rorovcd and aUtt￿ for issu¢ by the Bowd of Tn￿tr¢s on 07112Ql ￿ were sigDed bclow on its beh￿r by.. Irtgrid Newkirk Trust 19

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2021

2021 2020 2020
£ £ £ £
Cash flows from operating activities:
Net cash provided by operating activities 115,319 180,969
Cash flows from investing activities:
Bank interest 536 737
Dividend income 23,905 26,456
Purchase of tangible fixed assets (4,299) (7,810)
Purchase of investments (202,533) (230,719)
Proceeds from sale of investments 194,707 218,392
----------------- ---------------------
Net cash generated from investing activities 12,316 7,056
---------------- ----------------
Change in cash and cash equivalents in the reporting
period 127,635 188,025
Cash and cash equivalents at the beginning of the
reporting period 1,406,524 1,218,499
---------------- ----------------
Cash and cash equivalents at the end of the reporting
period 1,534,159 1,406,524
======== ==========
Reconciliation of net income to net cash flow from operating activities
2021 2020
£ £
Net income for the reporting period
(as per the statement of financial activities) 1,040,484 259,328
Adjustments for:
Depreciation charges 18,003 23,604
Bank interest (536) (737)
Dividend income (23,905) (26,456)
Loss on the sale of fixed assets 884 18
Gain on sale of investments (358,369) (27,966)
(Increase)/Decrease in debtors (581,606) 45,402
Increase/(Decrease) in creditors 20,364 (92,224)
----------------- -----------------
Net cash provided by operating activities 115,319 180,969
======== ========
At 31 At
August 31 July
Analysis of net debt 2020 Cash flows 2021
£ £ £
Cash at bank 339,724 (145,886) 193,838
Deposit accounts 1,066,800 273,522 1,340,322
----------------- ----------------- -----------------
Total cash and cash equivalents 1,406,524 127,636 1,534,160
========= ========= ========

20

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

a) Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Statement of Recommended Practice “Accounting and Reporting by Charities” SORP 2015 (Second Edition, effective 1 January 2019) (FRS 102) and the Companies Act 2006.

The charity is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee (company number: 03135903 and charity number: 1056453).

b) Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows and taking into account any potential future impact from COVID-19 pandemic the trustees confirm that they have no material uncertainties about the charity’s ability to continue as a going concern for the foreseeable future.

c) Group accounts

The Group financial statements consolidate the results, assets and liabilities of the Charity’s wholly owned trading subsidiary, PeTA Europe Limited (company number: 02886928) on a line by line basis. The charity has taken advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a charity only Cash Flow Statement with the consolidated financial statements.

d) Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general and trading funds.

General funds comprise the accumulated surplus or deficit from the Statement of Financial Activities which is not restricted nor designated funds. They are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Trading funds are the accumulated surpluses of the trading subsidiary.

Restricted funds are used for specific purposes as stated by the grantor. Expenditure which meet these criteria is charged to the fund.

e) Income

Income represents donations from the public, legacies and investment income. All income is accounted for on a receivable basis.

f) Expenditure

Expenditure is accounted for on an accruals basis.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on staff time attributable to each activity.

Governance costs comprise the costs of strategic planning, external audit, any legal advice for the Charity’s Trustees and all the costs of complying with constitutional and statutory requirements.

21

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES (continued)

g) Operating Leases

Rentals for assets held under operating leases are charged to the profit and loss account as they become payable.

h) Tangible fixed assets

Tangible fixed assets are stated at cost, less depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less residual value of each asset on a straight line basis over its expected useful life as follows.

Leasehold improvements - over 10 years Furniture - over 7 years Computer software - over 5 years Computer equipment - over 3 years

Individual items of capital expenditure over £500 are treated as fixed asset additions.

i) Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised with the exception of investments which are held at fair value. Financial assets held amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

j) Cash and bank

Cash at bank and in hand includes bank accounts, 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.

k) 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.

l) Estimation uncertainty

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

22

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

2. TAXATION

The charitable company is exempt from taxation under the Income and Corporation Taxes Act 2010.

3. DONATIONS AND LEGACIES 2021 2020
£ £
Public donations
Group 4,533,651 3,578,192
Charity 4,533,640 3,578,192
--------------------- ---------------------
Legacies
People for the Ethical Treatment of Animals (PeTA) 987,284 898,617
Foundation
------------------ -------------------
987,284 898,617
========= =========
4. TOTAL EXPENDITURE Staff Other 2021 2020
Costs costs Depreciation Total Total
£ £ £ £ £
Cost of raising funds:
Fundraising 263,955
608,914		 3,601 876,470 680,912
Charitable activities:
Education and prevention of cruelty 1,565,169
2,380,423		 14,402 3,959,994 3,578,169
Governance costs -
14,000		 - 14,000 13,560
-----------------
---------------------		 --------------- -------------------- --------------------
1,829,124
3,003,337		 18,003 4,850,464 4,272,641
========
==========		 ======= ========== ==========

Group expenditure disclosed above includes £4,850,125 (2020: £4,272,275) relating to the Charity alone. All expenditure is directly incurred in connection with each activity. Staff costs are allocated across activities based on time spent.

Governance costs relate solely to the fee for audit and advisory services.

TOTAL EXPENDITURE Staff Other 2020 2019
costs costs Depreciation Total Total
£ £ £ £ £
Cost of raising funds:
Fundraising 255,253 421,882 3,777 680,912 737,857
Charitable activities:
Education and prevention of cruelty 1,513,119 2,045,223 19,827 3,578,169 3,393,022
Governance costs 13,560 - 13,560 13,884
----------------- --------------------- --------------- -------------------- --------------------
1,768,372 2,480,665 23,604 4,272,641 4,144,763
======== ========== ======= ========== ==========

23

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

4. TOTAL EXPENDITURE (continued)

TOTAL EXPENDITURE (continued)
Net income is stated after charging: 2021 2020
£ £
Depreciation 18,003 23,604
Auditor’s remuneration:
Audit fees 14,000 14,640
Operating lease expense 117,940 128,203
======== ========

5. TRUSTEES AND EMPLOYEES

The Group did not pay the Trustees any remuneration, nor did it reimburse to them any expenses (2020: none). One employee received remuneration between £60,000 - £70,000 and one employee received remuneration between £70,000 - £80,000 (2020: One employee £60,000 - £70,000 and one employee £70,000 - £80,000). The total remuneration of key management personnel during the year was £279,361 made up of four employees. (2020: £287,878 four employees)

four employees)
2021 2020
£ £
Wages and salaries 1,521,803 1,413,535
Social security cost 178,388 143,404
Pension cost 119,382 63,386
----------------- -----------------
1,819,573 1,620,325
========= ========
The average number of employees during the year was as follows:
2021 2020
No. No.
Charitable activities 42 42
========= ========
6. TANGIBLE FIXED ASSETS – GROUP & CHARITY Leasehold
Improvements Equipment Total
£ £ £
Cost
At 1 August 2020 47,268 66,515 113,783
Additions - 4,299 4,299
Disposals - (3,049) (3,049)
--------------- --------------- ---------------
At 31 July 2021 47,268 67,765 115,033
--------------- --------------- ---------------
Depreciation
At 1 August 2020 36,634 35,387 72,021
Charge for the year 4,727 13,275 18,002
Disposals - (2,165) (2,165)
--------------- --------------- ---------------
At 31 July 2021 41,361 46,497 87,858
--------------- -------------- ---------------
Net Book Value 5,907 21,268 27,175
At 31 July 2021
======= ======== ========
At 31 July 2020 10,634 31,128 41,762
======= ======= =======

All fixed assets are wholly used for charitable purposes.

24

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

7. INVESTMENTS Group Charity
2021 2021
£ £
Market value
At 1 August 2020 1,661,938 1,661,939
Additions 202,533 202,533
Disposals (194,707) (194,707)
Gain on revaluation 358,369 358,369
-------------- --------------
At 31 July 2021 2,028,133 2,028,134
======== ========
Investments in subsidiaries 1
Listed securities 2,000,745 2,000,745
Investment cash 27,388 27,388
-------------- --------------

PeTA Foundation acquired the whole of the issued share capital of PeTA Europe Limited during 1997. PeTA Europe Limited is a private company (company number: 02886928) limited by shares and registered in England and Wales. Its registered office is 78 Cannon Street, London, EC4N 6AF.

The share has been included in the accounts of the Charity at cost (£1). The subsidiary is registered in the UK and educates the public concerning animal abuse, protection and related subjects, and seeking participation in campaigns to end or curtail animal suffering. A summary of the profit and loss and balance sheet of PeTA Europe Limited are set out below:

set out below:
31 July 31 July
Profit and loss account 2021 2020
£ £
Income 11 -
Expenditure (339) (366)
---------------- ----------------
Profit before tax (328) (366)
Tax - -
Gift aid donation to PETA Foundation (13,113) -
----------------- -----------------
Profit for the financial year (13,441) (366)
======== ========
Balance sheet
Net current assets 9,811 23,252
------------------ ------------------
Net assets 9,811 23,252
========= ========
8. DEBTORS Group Charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 456,368 13,678 339,756 13,678
Other debtors 1,970 7,301 1,970 7,301
Amounts owed from subsidiary - - 610 633
Prepayments and accrued income 225,284 81,037 225,284 81,037
------------------ ------------------ ------------------ ------------------
683,622 102,016 684,230 102,649
======== ========= ========= ========

25

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

9. CREDITORS: amounts falling due Group Group Charity Charity
within one year 2021 2020 2021 2020
£ £ £ £
Trade creditors 171,751 134,343 171,751 134,343
Tax and social security 38,343 39,576 38,343 39,576
Amounts owed to subsidiary - - 1 1
Accruals 17,350 13,000 17,350 13,000
Other creditors 22,501 42,662 22,501 42,662
---------------------- ---------------------- ------------------ ------------------
249,945 229,581 249,946 229,582
=========== ========= ========= =========
10. FINANCIAL INSTRUMENTS Group Charity
2021 2020 2021 2020
£ £ £ £
Financial assets measured at amortised cost 4,059,924 3,145,962 4,060,535 3,146,595
========== ========== ========== ==========
Financial liabilities measured at cost 211,602 190,005 211,603 190,006
========== ========== ========== ==========

Financial assets measured at amortised cost comprise of trade debtors, other debtors, accrued income and cash.

Financial liabilities measured at amortised costs comprised of trade creditors, other creditors and accruals.

11. FUNDS As at 1 August As at 31 July
2020 Income/ Expenditure Transfers 2021
gains
£ £ £ £ £
Unrestricted funds:
General funds 2,888,032 4,777,053 (3,788,003) 13,113 3,890,195
Trading funds 23,251 11 (339) (13,113) 9,810
-------------------- ------------------- --------------------- ------------------ --------------------
2,911,283 4,777,064 (3,788,342) - 3,900,005
------------------- -------------------- --------------------- ------------------ -------------------
Restricted funds:
Vivisection - 601,333 (601,333) - -
Skins - 113,978 (113,978) - -
Animal Rahat 38,621 265,089 (229,570) - 74,140
PETA US 320 4,264 - - 4,584
Global Compassion Fund 32,437 50,478 (82,915) - -
Global Compassion Fund – - 55,516 (11,100) - 44,416
Romania
PETA India - 22,386 (22,386) - -
PETA Asia - 840 (840) - -
------------------ -------------------- --------------------- ------------------ ------------------
71,378 1,113,884 (1,062,122) - 123,140
-------------------- -------------------- --------------------- ------------------ --------------------
Total Funds 2,982,661 5,890,948 (4,850,464) - 4,023,145
========== ========== ========== ========= ==========

26

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

Trading funds represents accumulated profits retained within the trading subsidiary PeTA Europe Limited. Restricted funds represent amounts raised for particular programmes and spent in accordance with donor’s wishes.

11. FUNDS As at 1 August As at 31 July
2019 Income/ Expenditure Transfers 2020
gains
£ £ £ £ £
Unrestricted funds:
General funds 2,696,717 3,886,130 (3,434,815) (260,000) 2,888,032
Trading funds 23,617 - (366) - 23,251
-------------------- ------------------- --------------------- ------------------ --------------------
2,720,334 3,886,130 (3,435,181) (260,000) 2,911,283
------------------- -------------------- --------------------- ------------------ -------------------
Restricted funds:
Vivisection - 313,845 (573,845) 260,000 -
Skins - 109,809 (109,809) - -
Animal Rahat - 110,716 (72,095) - 38,621
PETA US - 880 (560) - 320
Global Compassion Fund - 92,177 (59,740) - 32,437
Fur - 81 (81) - -
PETA India - 15,590 (15,590) - -
Northern Ireland 3,000 - (3,000) - -
PETA Asia - 2,740 (2,740) - -
------------------ -------------------- --------------------- ------------------ ------------------
3,000 645,838 (837,460) 260,000 71,378
-------------------- -------------------- --------------------- ------------------ --------------------
Total Funds 2,723,334 4,531,968 (4,272,641) - 2,982,661
========== ========== ========== ========= ==========
12. FUNDS - GROUP General Trading Restricted Total
Funds funds funds 2021
£ £ £ £
Fixed assets 27,175 - - 27,175
Investments 2,028,133 - - 2,028,133
Current assets 2,084,832 9,810 123,140 2,217,782
Current liabilities (249,945) - - (249,945)
-------------------- ---------------- ------------------ --------------------
3,890,195 9,810 123,140 4,023,145
========== ======== ========= ==========
FUNDS - GROUP General Trading Restricted Total
funds funds funds 2020
£ £ £ £
Fixed assets 41,763 - - 41,763
Investments 1,661,939 - - 1,661,939
Current assets 1,413,911 23,251 71,378 1,508,540
Current liabilities (229,581) - - (229,581)
-------------------- ---------------- ------------------ --------------------
2,888,032 23,251 71,378 2,982,661
========== ======== ========= ==========

27

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS (PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

13. OPERATING LEASES – GROUP & CHARITY

At the year end, the company was committed to making the following payments in total in respect of operating leases:

leases:
Buildings Equipment
2021 2020 2021 2020
£ £ £ £
Payments due:
Within one year 115,555 138,600 1,215 1,351
Between 2 - 5 years 17,096 153,131 453 1,689
More than 5 years - - - -
======= ======= ======= =======
132,651 291,731 1,668 3,040

14. SHARE CAPITAL

The Charity is a company limited by guarantee and a registered Charity. It has no share capital and the liability of the members is limited to £1.

15. RELATED PARTY TRANSACTIONS

At the 31 July 2021, the Charity was owed £610 (2020: £633) from PETA Europe Ltd the wholly owned subsidiary company. There were no other related party transactions in the year.

28

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

16. PRIOR YEAR COMPARATIVES BY FUND

CHARITY 2020
Unrestricted Restricted Total
Note £ £ £
INCOME ON:
Donations and legacies 3 3,830,971 645,838 4,476,809
Investment income 27,193 - 27,193
Other income - - -
-------------------- ------------------- --------------------
Total income 3,858,164 645,838 4,504,002
-------------------- ------------------- --------------------
EXPENDITURE FROM:
Raising funds 680,912 - 680,912
Charitable activities 2,753,902 837,460 3,591,362
------------------- ------------------- --------------------
Total expenditure 4 3,434,814 837,460 4,272,274
------------------- ------------------- --------------------
Net expenditure before gains/(losses) on
investments 423,350 (191,622) 231,728
Net gains/(losses) on investments 27,966 - 27,966
Net income/(expenditure) 451,316 (191,622) 259,694
Transfers between funds (260,000) 260,000 -
------------------- ------------------- --------------------
Net movement in funds 191,316 68,378 259,694
Funds at 1 August 2019 2,696,716 £3,000 2,699,716
--------------------- ------------------ ---------------------
Funds at 31 July 2020 2,888,032 £71,378 2,959,410
========== ========= ==========

29

PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS

(PeTA) FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 JULY 2021

16. PRIOR YEAR COMPARATIVES BY FUND (continued)

GROUP 2020
Unrestricted Restricted Total
Note £ £ £
INCOME FROM:
Donations and legacies 3 3,830,971 645,838 4,476,809
Investment income 27,193 - 27,193
Other income - - -
-------------------- ------------------- --------------------
Total income 3,858,164 645,838 4,504,002
-------------------- ------------------- --------------------
EXPENDITURE ON:
Raising funds 680,912 - 680,912
Charitable activities 2,754,269 837,460 3,591,729
------------------- ------------------- --------------------
Total expenditure 4 3,435,181 837,460 4,272,641
-------------------- -------------------- --------------------
Net expenditure before gains/(losses) on
investments 422,983 (191,622) 231,361
Net gains/(losses) on investments 27,966 - 27,966
Net income/(expenditure) 450,949 (191,622) 259,327
Transfers between funds 11 (260,000) 260,000 -
------------------- ------------------- --------------------
Net movement in funds 190,949 68,378 259,327
Funds at 1 August 2019 11 2,720,334 3,000 2,723,334
--------------------- ------------------ ---------------------
Funds at 31 July 2020 11 2,911,283 71,378 2,982,661
========== ========= ==========

30