REGisfERED COMPANY NUMBER: 03270679 (England and Wales) REGIsfERED CHARrrY NUMBER: 1059660 REPORT OF THE TRusfEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 FOR PILOTLIGHT (UMITED BY GUARANTEE)
PILOTLIGHT (LIMITED BY GUARANTEE) CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Page Report of the Trustees I to 13 Report of the Independent Audltors 14 to 16 statement of Flnancial Artlvltles 17 Statement of Flnanclal Positlon 18 statement ol Cash Flows 19 Notes to the Statement of Cash Flowg 20 Notes to the Financlal Statements 21 to 33
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102) leffective I January 20191. OUR OBJECTIVES While the world appears to be growing further apart. Pilotlight has spent the last 30 years ref ining a model to bring people f rom busine55 and cha rity closer together. These are different worlds and it can be dlfflcult to sustain impactful partnerships between both. Our unlque model, whlch is focused on creating shared a nd equltable value for all participants, consistently dellvers impressive outcomes. Through our carefully facilitated programme5, we have developed an outsta nding reputation with business, charities and skilled-volunteers, enabling each to do more for their world. The overlapping challenges of poverty, discrimination, insecurity and the climate emergency call for new solutions and Pilotlight is at the heart of efforts to empower partnerships and accelerate positive action. Since 1996, by mobilising teams of business experts (we call them Pilotlightersl we have helped over 1,300 charities working for Social or environmental improvement to ignite cha nge that lasts. Thi5 is our report of our work and progress over a year in which charities acr055 the U K have continued to play a critical role in supporting people who are vulnerable or in need, but who are themselves facing significant challenges. Higher levels of need, more competition for fundraising, charity closures, squeezes on reserves, lower levels of overall volunteering, burnout from Chairs or Chief Executives.. these are all factors that we recognise in our work with charities, meaning that just as thelr services are never more needed, so this is one of the most demanding of perlods for a long time for the charitable sector. The answer to this doesn't lie at the level of the indivldual charity, as much as they can do to organise and innovate as effectively as they can. The answer is that society needs to value more fully what charities do. Our tontribution to thi5 IS to unlock new forms of support by creating pa rtnerships of shared value - and shared value5 - acr055 business and charities. As a charity ourselves, we are inspired to play the role that we can, of bringing in expertise, support and advice, by seeing the courage and empathy that the charities that we partner have shown in their own work. As a social enterprise, working with a revenue model based primarily on earned income rather than grants, we are also inspired by the openness and entrepreneurialism of the businesses that we partner with as they seek to engage purposefully at a time of change.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 These pressures are the foreground to our work and not a backdrop. They mean that our focus on organisational support, to help charities to be effective and sustainable over time is all the more compelling. As trustees, we want to thank all of our partners in the business 3 nd charity sector, all our Pilotlighters, for their p3rticipation and support and 311 of our staff team for what we have been able to achieve by working together. OUR PERFORMANCE AND IMPACT This has been a nother encouraging year for Pilotlight. We have seen an increase in our strategic business partnerships which has grown the number of professional voluntee rs - our Pilotlighters - by 20Y¢. Du ring the yea r, 1,259 Pilotlighters collaborated on 162 projects delivering strategic and operational guidance and support to 142 charities and Social enterpri5e5. Collectively, these organisation5 SUPPOrt over 11 million people across the United Kingdom. This means that slnce we were founded, Pilotlight has delivered 1,588 projects of support to 1,323 charitles. We cluster the support we offer to charities under three primary service lines, engaging pro bono events, consulta ncy style projects and longer-term strategic coaching. In each case, we are using business experts to offer insights on way to overcome organisational challenges faced by their charity client. In 2024, we saw a shift in our programme mix, with growth in our events and consultancy offer and a reduction in the level of our long-form programme, Pilotlight 360, which focuse5 on strategic coaching. Our assessment is that market demand has moved away from extended programmes and that the investment we have made in innovation around short-form programmes in line with our strategy to build partnersh ips with large employer has proved to be timely and of rea S value. Alongside this, th rough our work on innovation, we have started to explore options for new ways to deliver our coaching offer in future. In 2024, we en hanced our tracking of impact made through our different progra mmes. For charities, for example, we evolved a framework to measure the impact of the support we give through "seven pillars of charity resilience" a model we have adapted f rom origina I work by the Charities Aid Foundation. The support on offer to charities varies accordingly, with a focus most commonly on operational challenges, ways to improve impact, financial models and opportu nities, effective leadership or work to c5a rify and advance the core purpose of the cha rity, For skilled volunteers, we developed a Learning and Development Framework, focusing on the key learning outcomes for them from their participation. Charities serving ch ild ren a nd young people make up around a quarter123%1 of the charities we support. Across our field of partner charities, those working to 5UPPOrt employment, training and education123%1 and those working to promote mental health and well-being123Yol are the m05t common.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 The majority of ch3 rities we work with are located in the most deprived areas of the UK. 83% of the charities we worked with a re based in England. The regional spread of our work is assisted by our partnership with the Garfield Weston Foundation and The National Lottery Community Fund in the Midlands. We celebrated our tenth year of partnership with the Garfield Weston Foundation on The Weston Charity Awards, wh ich have been extended to include charities working in the f ield of environment31 action. We are grateful to the Foundation for this partnership and in additlon for its decision to support an independent evaluation of the ten years of the Weston Charity Awards. To mark this milestone, an independent eva luation of the Awards was carried out by I nsid e Impact which concludes that the Awards are achieving positive outcomes for both charity leaders and their orga nisations, with most planned outcomes stlll being experienced todav.. Desired outcomes for charitles are overwhelmingly positive and long-lasting. Outcomes for charity leaders have also been overwhelmingly positive, with many still experiencing benefits. Almost all charity leaders196%1 reporting back sald that their cha rity Is more operationally fit as a result of the support. Four out of f ive183Yol said that the improvements are still felt to th is day. A nota ble nv mber of charities attributed increases in income, reserves, staff, reach, impact, and qual ity of services to the Weston Charity Awards. Similarly, we have a Iso worked over 2024 to understand the value that we create f or business participants and for the businesses that employ them. Offering their pro-bono expertise in responding to a challenge often outside of their own field, business pa rticipants are given an opportunity to develop on their existing capabilities 3s a coach whilst also advancing their existing/new professiona I skills. This symbiotic experience of giving a nd gaining means that business participants also experience the benefits of exposureto new sectors, ways of thinklng, and challen8e5 in a similar way to charity participa nts. As an example, we have tracked the learning and development opportunities of skllls-based volunteering through a pa rtnersh ip with Wellington Management Company to contribute to the Wellington Leadershi p Development Programme with participants from arou nd the world. The outcomes included that.. 66Yo of those taking part from the business reported increased confidence in translating a client's vision into actionable 5teps;72% reported increased confidence across all problem-solving and critical th inking competencies. while 100% reported satisfaction with feeling included. For both cha rity and business participants, we have seen a rise in 2024 of the satisfaction rates of participation in ou r programmes. With an average satisf3Ction rate of 4.8 f or charity participants and 4.6 for business pa rticipants, both are well above the target of 4.2 set by the Board for 2024. Additionally, both grou ps return strong 'net promoter, scores, as to whether they would recommend the Pilotlight progra mme to a colleague with cha rity participants scoring +79 and business participants +53. Both are outstanding results compared to commercial benchmarks.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 Our events programme for both has grown over the year. We ran, for example. our first World Environment Pilotlight Impact Day, hosted by Linklaters in London, the s3me day that in Birmingham we welcomed 22 charities to our Pilotlight 360 programme under the Weston Charity Awards. We brought our partners together in November 2024 for an enhanced annual event that we called the Pilotlight Summit, with a theme of 'empowering business to be a greater force for good, We are grateful to the Dual Group for hosting us at this event and to our excellent panellists and chairs for the day. There is a clear line of sight from the outcomes for Individual Pllotlighters to the galns to the buslnesses that employ them. We were grateful to have the support of Pro Bono Economics over 2024. responding to our request for economic research on the value of volunteering. The proven buslness benefits of volunteering they identified included productivity gains, reduced Sickness and Improved well-being. In an excellent report, Triple Dividend, the authors concluded that "workplace volunteering schemes such 05 those run by Pilotlight could deliver between £1.50 and £3.60 of benefits for every £1 spent. The return on investment of skills-based volunteering was also echoed in research published in 2024 by the Oxford University Wellbeing Research Centre. This reviewed interventions by employers tried out across 143 different organisations in the UK with a combined total of 27,932 employees. The conclusion is that wellbeing interventions fail to improve mental wellbeing, with one single, positive exception - which is where companies support their workforce around the option of volunteering. OUR ACTIVITIES We operate a number of pro bono programmes on a model of'ski115 sharing, in which we attract people with business and organlsational skills to support charity leaders- with both learning through the process. In terms of coachinE, our most longstanding programme runs over 3 10-month period, where four Pilotlighters collaborate to coach a charity leader and their board through the strategic challenges they face. In our consulta ncy programmes, there is a focus on specific challenges that charities may face, supporting them to address these and move forward with confidence. In our events programmes, our shortest offer runs over ninety minutes and involves a high energy exchange curated across a diverse range of professionals, all focused on generating ideas around a specific challenge faced by a charity.
PILOTLIGHT {LIMITED BY GUARANTEE) (03270679} REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 OUR STRATEGY The charity is working to a ten-year strategy approved by the Board in 2021. The strategy sets out that over the coming ten years, we want to make a systems change, to bring about a fundamental shift in how skills sharing is perceived and delivered to the sector, with the following vision, mission and values.. Vision A world that is fairer and more sustainable because charities, wider social enterprises and inclusive businesses have the skills that they need to tackle disadvantage. Mission To facilitate and promote the sharing of professional skills to help charities help people most effectively. Values Our values are aligned with our vision and mission and characterise how we believe that skills sharing can work to its potential: We bring people together We believe in potential We expect the best If we are successful, there will be a joined up skills based support 5VStem across the UK for charities and social enterprises. Thi5 will be a system that makes a major contribution to sustainable development goals. Two key themes in our strategy are those of 'innov3tion' and 'collaboration' In late 2024, in line with the selection of a new Chair to replace Sally Bailey who was completing her term on the Board after six outstanding years, we Indicated as a Board that the charity would look to review and refresh our strategy in 2025. OUR FINANCES Pilotlight meets Its objectives of supporting charitles to increase their soci31 Impact through a business model that we have developed over time. We fund our activities principally through individual business member donation5 and corporate fees, the remainder through grants primarily from trusts and foundations. Pilotlight uses its income to design and deliver carefully curated project5, oriented around support for charities looking to increase their social impact, aligning the needs of the partner5 and supporting positive outcomes through effective project management and impact measurement. The programmes are provided to participating charities free of charge.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 In 2024 grants make up around 28% of our total income with member donations and corporate income being our primary source of income. Our total income was £1,708,797. Our grant income includes support from the Garfield Weston Foundation and the National Lottery Community Fund. Included in creditors is deferred income of £619,506 of which £414,207 is to be recognised in less than one year. Our costs were £1,705,129. Cash at bank the year end was £1,083,861. We have continued to invest in developing our work for the future, in line with the long-term strategy. Significant flnancial commitments over 2024 included further improvements in our technology platform, including the integration of Hubspot as a marketing platform and improvements of our use of data building on our upgraded $3lesforce instance, The level of income Is a new high for the charity and with careful cost controls, we outperformed our deficit budget set for the year and concluded with a positive out-turn. While there were ups and downs In demand for different programmes, the revenues from the growth areas more than covered ny downsides. We do recognise these changes as ones that present a different risk prof ile than before. Whereas running long-form programmes meant that we needed capacity across all the year, the demand for short-form programmes is more seasonal, tending to come together, such as around periods such as Volunteers Week in June. In Autumn 2024, we reviewed the operating model and made some changes to ensure we can better cope with the demand and capacity in future ye3rs, alongside a clear set of indicators to monitor ongoing performance. Financial risks are managed as part of an overall system of risk governance with a focus on upside opportunities and not simply downside risks. This approach has underpinned for example a focus on innovation in line with the long-term strategy, with success over 2024 in the form of a new programme offer for business partners that has proved popular and impactful for both charities and businesses. The primary financial risks over 2024 were on the income rather than the expenditure slde, although like other charities, Pilotlight face5 pressure to ensure that salaries remaln competitive in the context of wider inflation and changes in the labour market. Charities have traditionally attracted staff because of their strengths a5 values-based organisations and ones that typically offered 3 high degree of flexibility. Pilotlight has varied sources of income including donation5 from individual Pilotlighters and fees from companies who sponsor their employees, participation in our programmes. Payment from individuals is received across the full calendar year. The or8anisation also receives occasional grants which typically involve one or more lump sum receipts. Finally, we have in the past received ad hoc donations f rom private or corporate donors. We do not typically engage in open public fundraising. Pilotlight's expenditure consists mainly of monthly salary costs and the cost of our office in London. The charity typically holds its assets in cash balances but could receive donations in the form of property, land or other forms of investment product.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 OUR STRUCTURE AND GOVERNANCE Pilotlight is a charita ble com pany limited by guarantee, incorporated on 29 October 1996 and registered as a cha rity on 6 December 1996. The organisation is led by a Chief Executive Off icer I CEO I, Ed Mayo. The company was established under a Memorandum of Association which set the objects and powers Of the charitable com pany and is governed under its Articles of Association. A review of the legal instruments of the cha rity led to changes to our constitution, to bring these into line with current good practice, a nd these were approved by the relevant regulatory authorities in 2021. The Board operate to a n up-to-date set of governance policies and process in a Trustee Handbook and undertake in most years an annual Board Effectiveness Review led by the Cha ir, These take account of the recommendations of the Charity Governance Code. The policies set out reserved and delegated matters, including around Pilotlight's f inanclal assets. The comm ittee structure of the Board is reviewed on a re8ula r basls, with the Finance and Risk Committee supporting the Board in relation to financia I compliance and performance, Trustees of Pilotlight's Board a re required to disclose all relevant interests and register them with the Chief Executive and withd raw f rom decisions where a conflict of interest arises. A policy on conf licts of interest governs the handling of decisions, including where a trustee is also involved with another relevant organ ization with whom we may co-operate with, setting out that trustees may, under appropriate circumsta nces, be involved in discussions about it but not in any decision-making process. All related pa rty tra nsactions are disclosed in note 26 to the accou nts. The Handbook forms a key element of our system of trustee induction, alongside a structured programme of engagement in our work and for meetlng people within the staff team, New members of the Trustee Board are instructed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association and the decision-making process by other members of the Committee. This forms part of a structured a pproach to the induction of new trustees and for the ongoing development of all trustees. Train ing topics completed by the Boa rd i ncluded sessions around social media and reputation risks, research on skilled volunteering good practice and the duties of Directors. Alongside thi5, trustees have access to the regular governance bulletins of NCVO, the national association for voluntary organisations. The Treasury and Investment Policy sets out the charity's approach to the management of its funds and its liquidity requirements in this context. In line with this, the charity is active in the context of social investment, participating in two social venture capital funds operated by B ridges - the Bridges Social Impact Bond Fund and the Bridges Social Outcomes Fund11. We monitorthe financial performance of these, aware of the risk that soci31 investment has faced in an uncertain economy. These are consid ered to be a way of generating both financial and socia I returns, in line with our charitable objects. These two funds have a net book value of £81,478. The social Impact Bond is in a liquidation phase, so no further drawdowns are expected in relation to this. The charity has no funds in the form of investment asset5 overseas. The investment period for the Social Outcomes Fund11 runs to June 2025.
PILOTLIGHT (LIMITED BY GUARANTEE) {03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 The Reserves Policy sets out that the unrestricted funds not committed or invested in tangible fixed as5et51'the free reserves'l held by the cha rity should as a target be around 6 months of running costs. We are currently operating in line with this level, but not more. In addition to our deferred revenue balances, the Board feels that this would enable the funding of working capital, provide resources against unforeseen circumstance5, and support new growth projects, in line with our strategy. In the event of a significant drop in funding, it would be necessary to consider how the funding would be replaced or activities changed. Unrestricted reserves in 2024 increased by £19,197 to £803,565. The Trustee Board oversees the charity and meets around four times a year, with additional committee and working group meetings where required. The Chair of the Board is Sally Bailey (to December 20241 and the Vice Chairs are Fion3 Rodford and Mei Li Powell. Mei Li Powell is Treasurer and Chair of the Finance and Risk Committee. Fiona Rodford is Chair of the People and Culture Committee and Chair of the Nominations Committee, a committee formed on a time limited basis when there is a governance recruitment need. Peter Moss (to December 20241 is Chair of the Innovation Committee, being replaced in this role by Katherlne Mathieson. We express our deep gratitude and profound respect to our outgoing Chair, Sally Bailey, along with fellow trustee Peter Moss, both of whom have completed their term of appointment as trustees, in line with our Articles. The Board appointed Nicola Pye as trustee in March 2024, to complement the skills on the Board with the addition of her knowledge of the field of learning and development. Following 3 careful recruitment process, with the support of search firm Eton Bridge, the Board approved the appointment of Alison Forrestal as trustee from December 2024 and the new Chair of Pllotlight following the resignatlon of Sally. Allson was able to observe the Board and partlcipate in an induction programme In late 2024 In preparation for this. The CEO is appointed by the Board to manage the day-to-day operations of the charity. The CEO, Ed Mayo, is supported by a Leadership Team that includes Mel Whitney-Long IHead of Operations), Sarn Matthews (Head of Delivery) and Tom Leavesley-matthews (Head of Partnerships). Mila Evanics (Head of Charities and Impact) served as a member of the Leadership Team until November 2024. The Board oversees a framework for the appropriate governance of risk, including a Risk Register, risk controls and mitigation a nd regular management and Board scrutiny of relevant risk5. Our governance approach includes a consideration of our risk appetite. As an entrepreneu rial charity for whom the majority of our income is earned through our activities, we know that risk and opportunity go hand in hand and in the context of our goals for the charity, expressed in our ten year strategy, we look to take positive, calculated risks in order to ensure that we minimise the la rger risk of failing to achieve our over311 goals. In this context, we are also grateful therefore to have support from the MIVA Foundation over three year5 to support innovation in our efforts to help charities to scale their impact.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 In terms of downside risks, 2024 Saw uncertainty in economic conditions and the highest risk for the charity was perceived to be a loss of income. Other risks have included failure to recruit the right cha rities (leading to an inability to fulf il our mission and commitments) and reputationa I risks in the scenario of adverse publicity. The latter reflects in part the way in which social media has become more polarised. Looking forward, given the continued economic uncertainty, we expect to continue to be operating in a relatively high-risk environment, in which innovation may be of particular value. The pay of all staff, including senior staff, is reviewed annually and a pay pot is set for incre35es i remuneration across staff where required, in line with an overall pay policy agreed by the Boa rd. The Trustee Board benchmarks against pay levels in other voluntary sector organisations of a similar size and uses information from annual sector pay surveys to inform their decision-making. We are conscious that the current conditions in the economy, society and state of the environment are ones that continue to be challenging when it comes to people's mental health and we keep a close eye on this for our staff through the ongoing work of the People and Culture Committee, Staff sickness was a key performance indicator for2024 and we fell just short of our goal to keep sickness absence below 1.5%. The charity conducted an annual staff survey in 2024, the results of which are considered by the People and Culture Committee and reported to the Board. Compared to previous surveys, the results were more mixed. The statements which achieved the highest average ratings in the staff survey, 'Ifeel thot there is someone in the orgonisution I con go to if I hove a problem,, '1 am treoted with fairne55 and respect,. '1 am proud to workfor Pilotlight, and 'lfeel comfortable and accepted as part of the Pilotlight tetim, Statement5 achieving lowest average ratings were 'Communicotion between different teoms is effective, and 'lfeel l om being paid afoir amountfor the work I do,. Followlng ca reful consultation and co-design with staff, the Board also approved the runnin8 of 3 trial by Pilotlight of a Reduced Hours Working Week, running from July- December 2024. The core idea of this was to improve well-being and staff retention by enabling staff to work reduced hours at full pay while maintaining full productivity. To assess the resu Its, we used a range of indicators, including prodLSCtivity, performance, employee well-being, and operational efficiency. The results speak to the positive impact the approach had on work culture, the perception of Pilotlight as a progressive employer and the impact on productivity specif ically. At a team level, for example, staff viewed 315 indicators (communication, collaboration, culture, productivity in process and productivity in outcome51 as having improved as compared with the period before the tria l. The trial also had a positive impact on staff retention, as measured through staff turnover and estimates of the value that staff place on reduced hours working. The results, according to staff, were to make for a more empowering and effective work environment, reinforcing that Pilotlight has become both a 'nicer' and a 'better' place to work. Staff wellbeing improved and 100% of the staff team responded that they felt that the way of working should continue. The Trustee Board has had due regard to the Charity Commission guidance on public benefit and has complied with the duty in section 17 of the Charities Act 2011. For completeness, we would add that there are no exemptions from disclosure or funds held as a custodian trustee on behalf of other5 that are applicable to the charity.
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 DIVERSITY, EQUITY AND INCLUSION (DEI) The charity has m3de a commitment to champion anti-racism and promote Diversity, Equity and Inclusion {DEII in its work. We see this as a sustained process of commitment and learning through action. Within the UK charity sector and in collaboration with the business sector, we recognise that we are operating in a context of overlapping and multi-gener3tional challenges of power inequalities, racism and injustice. To be part of changing that requires us to operate as a community in ways that shift power and dismantle privilege. We have an active programme of action on DEI, with targets for progress operating over time. Two trustees act as DEI champions (Katherine Mathleson and Finia Kuhlmannl, in liai50n with the Leadership Team and a staff DEI Committee. Pllotlight is reciplent of a Silver Award under the Incluslve Employers Standard, awarded by an independent accreditation body. ENVIRONMENTAL, SOCIAL AND GOVERNANCE {E5G) The Board recognises the value of tracklng how the charity interacts with the natural environment, with society as well as our governance. The core focus of the charity is to achieve social impact and we see that our current work contributes to f ive United Nations Sustainable Development Goals.. I no poverty; 5-gender equality. 10 reduced inequalities; 11-sustainable cities and communitie5' 17 partnership for the goals. We consider the environmental and social impact of our operations, including working to an agreed Climate Emergency Policy and promoting actions such as around greening our off ice in London. Alongside this, we have extended our work to provide support for environmental charities. Our World Environment Day event marked the launch, following extensive research and piloting, of the first UK pro bono environmental programme, bringing professional skills to support the work of environmental charities. OUR FUTURE PLANS The Board approved in November 2024 an Operational Pla n and budget for Pilotllght for our work in 2025 as part of a longer-term strategy and objectives. The 2025 Operating Plan Includes a set of Key Performance Indicators, including.. forecast surplus lon budget or better); 90% partner business retention rate; net promoter scores of 60 or above: and staff who feel supported if they are facing challenges. Integrated with the Operational Plan for the year are 3 Suite of key initiative5 intended to take our work forward in line with our strategy. These include- a test project on fundraising from trusts and foundations; a review of our marketplace,. supporting the Board to refresh the strategy to 2030,. a brand refresh. trialling project management software and the use of Artifici31 Intelligence IAII a5 3 tool in our work. io
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 OUR FUTURE PLANS (continued) Under the strategic theme of collaboration, Pilotlight will continue to build on key partnerships over the year ahead. The Weston Charity Awards are run in partnership with Garfield Weston Foundation. One further partnership is the U K Pro Bono Association, which is an informal collaborative network which serves as a welcome learning network for those in the field. The CEO, Ed Mayo, is also member of the steering group for a new coalition of infrastructure organisations for the voluntary sector, the Civil Society Group. This supplements the work of NCVO, the national association of which the charity Is also a member. The risks that we foresee for the year mirror the risks th3t we have experienced in 2024. These include the impact of wider economic conditions on the partnerships with business and charlties that we look to curate. We can see that conditions are challenging for charitie5, With greater competition for funding and a higher level of closures reported. With new business partners, we need to understand and build positive collaboration, so that these can become lon8Standing partnerships of value. There are technology risks too, with a continuing risk around cyber security but emerging risks too. Such as if we fail to take appropriate advantage of Al as we look to run our operations effectively. The theme of 'achieving sustainable impact, is the motto for our 2025 Operational Plan, to ensure that we are operating in an effective way, generating compelling results for our partners. In line with the objectives of our ten-year strategy, which commenced in 2021, the Board has agreed a set of Strategic objectives for the charity for the period up to the end of 2026. Of these, we have moved into financial balance in 2024 one year earlier than planned, while in terms of innovation, targets include that by the end of 2026, learning and development is over 30% of earned income, while sustainability is over 20% of earned + grant income. In 2025, the Board will review and refresh the strategic goals set for the charity to achieve by 2030. li
PILOTLIGHT (LIMITED BY GUARANTEE) (03270679) REPORT OFTHE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 OUR REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 03270679 IEngland and Wales) Registered Charity number 1059660 Scottlsh Charity Registratlon Reference SC038844 Registered office 5th Floor, 14 Bonhill Street, London EC2A 4BX Prlnclpal address 5th Floor, 14 Bonhill Street, London EC2A 4BX Trustees S F Bailey Ichair, resigned 181121241 AM Forrestal (Ch3 ir, a ppointed 181121241 F M Rodford (Vice Chairl M L Powell ITreasurer, Vlce Chairl A Halliday F Kuhlmann OSWLloyd K T S Mathieson P D Moss Iresigned 18112/241 N L Pye (appointed 191031241 A L Rothwell F Siddiqui Auditors Hartley Fowler LLP Statutory Auditors Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU Bankers HSBC Weybridge Commercial Centre Church Street Weybridge Surrey KT13 8DF 50licitors Anthony Collin5 Solicitors, 134 Edmund Street, Birmingham, B3 2ES Chlef Executive Officer and Company Secretary Mr E Mayo 12
PILOTLIGHT (LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are asso the directors of charitable company (Limited by guarantee) for the purposes of company law) a responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdorn Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Stsndard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare financial ststements for each financial year which give a true and falr view of the stste of affairs of the charitable company and of the irtcoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to select gjitable accounting policies and then apply them consistentlyi obseNe the methods and principles in the Charity SORP; make judgements and estimate5 that are reasonable and prudent; prepare the financlal siatements on the going concern basls unless it Is Inappropriate to presume that the charitable company wlll continue in buslness, The trustees a re5pDnslble for keeping proper accounting records which disc105e with reasonable accuracy at any time the rinancial p051tiDn of the charitable cornpany and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charitles Accounts (Scotland) Regulation5 2006 (as amended). They are also reSponsie for safeguarding the assets of the charltable company and hen for taking reasonable rteps for the preventlon and detection of fraud and other irregularities. In so far a5 the trustees are aware: there is no relevant audit information of whlch the charitsble company's auditors are unaware,. and the trustees have taken all steps that they ought to have tsken to make themselves aware of any relevant audit informatlon and to establish that the auditors are aware of that informatlon. Thi5 report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the board of trustees on 17 lune 2025 and slgned on its behalf by.. M L Powell - Trustee -13-
REPORT OF THE INDEPENDENT AUDrroRS TO THE TRUSTEES AND MEMBERS OF PILOTLIGHT (LIMITED BY GUARANTEE) Opinion We have audited the financial statements of Pllotlight (Llmited by guarantee) (the 'charitable company'l for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Stalement of Cash Flows and notes to the financial statement5, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation Ss applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 December 2D24 and of Its incomlng 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 ACpted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2D06, the Charitles and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulation5 20a6 (a5 amended). Basis for opinlon We conducted our audit in accordance wh International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standard5 are further deribed in the Auditors, responsibilities for the audit of the financial statement5 section of our rert. We are independent of the charitable company in accordance with the ethical requirements that are releVt to our audit of the financial ststements in the UK, includlng the FRC'S Ethical Standard, and we have fulfilled our other ethial respongbilities in accordance with these requirements, We believe that the audit evidence we have obtained is sufficlent and appropriate to provide a basls for our opinlon. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the golng concern basis of accounting In the preparats'on of the financial statements is appropriate. Ba*d on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, IndIduallY or collectivelyi may cast signiflcant 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 3uthorised for155ue. Our respon51bllities and the responsibilitle5 of the trustee5 With respect to going concem are described in the relevant sections of this report. Other Inforniation The trustees a responsible for the other information. The other information compdses the information included In the Annual Report, other than the flnancial statements and our Report of the Independent Audltors thereon. Our opinion on the financiol Statements does not cover the other information and, except to the extent otherwlse explicitly stated In our report, we do not express any form of assurance concluslon thereon. In conneclion with our audlt of the financial ststements, our re5ponsibillty is to read the other informatlon and, in doing 50, consider whether the other information is materially inconsistent with the financial slaternents Dr our knawledge obtained in the audit or Otheise appears to be materially mi5Stated. Ir we identify such rnaterial inconsistencies or apparent material mi55tatements, we are required to deterrnine whether thls gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material rn15Statement of this other nformation, we are required to report that fact. We have nothing to report in this regard. Opinion5 On other matters prescribed by the Companie5 Act 2006 In 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 are prepared is consistent with the financial statements,. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. -14-
REPORT OF THE INDEPENDENT AUDITORS TO THE TRusfEES AND MEMBER5 OF PILOTLIGHT (LIMITED BY GUARANTEE) 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 and the Charities Accounts (Scotland) Regulatlolls 2006 (as amended) requires us to report to YOLJ 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; rjr certaln disclosures of trustees, remuneration specified by law are not made. or we have not received all the inforniatton and explanations we require for our audit; or the trustee5 were not entitled to prepare the financk41 statements in accordance with the small companies regime and tske advantage of the small companie5 exemption in preparing the Report of the Trustees, Responsibilities of trustees As explained more fully in the Statement of TTustees' Responsibilities, the trustees are responsible for the preparation of the financial 5tstements and for being satisfied that Lhey give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of flnancial statements that are fe from material misstatement, whether due to fraud or error. In preparin9 the flnanclal statement5, the trustees are responslble for assessing the charilable company's abillty to continue a5 3 going c(fftcern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend lo IlquidaLe the charltable company or to cease operations, or have no realistic alternalive bul to do so. Our responsibilities for the audit of the financial statements Our objectwes are to obtain reasonable assurance about whether the finanoal statements as a whole are free from maleriol misstatement, whether due to fraud or error, and to issue a Report of the Independent Audltors that includes our opinlon, Reasonable assurance 15 a high level of aUrance, but15 not a guarantee that an audit conducted in accordance with ISA5 (UK) will always detect a materlal 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 financlal ststement5. The extent to which our procedure5 are capable of deterting irregularities, including fraud is detslled below.. We identlfy and assess rLsk5 of mater131 misstatement of the financial st&ements, whether due to fraud or error, and then design and perform audit procedures responsfve to those rlsks, including obtalning audit evidence that Is sufficlent and appropriate to provide a basis for our oplnion, In identifylng and assesslng risks of material mlsstaternent In respect of irregularltie5, Including fraud and non-compliance wlth laws and regulaOn5, we considered the following: -the nature of the Industry and sector, control environment and the charities activities; -results of our enquirie5 Of management about their own identifScation and as5e55ment of the risk5 of irregularities, -any matters we identified having obtslned and reviewed the charitable company's documentation of their policies and procedures relating to.. identifylng, evaluating and complying with laws and regulations and whether they were aware of any instance5 of non -compliance; detecting and responding to the risks of fraud and whether they have knowledge of any attual, suspected or alleged fraud,. the intemal controls established to mitigate risks of fraud or non-c0mpl1an with laws ond regulations; the matters discu55ed among the avdit engagement team regarding how and where fraud might occur in the financial statements and any potential indicator5 of fraud. As a result of these procedure5, we considered the opportunities and incentSves that may exist within the organi5ation for fraud. In common with all audit5 we are also required to perform specific procedures to respond to the risk of management override. -15-
REPORT OF THE INDEPENDENT AUDITORS TOTHE TRUSTEES AND MEMBERS OF PILOTLIGHT (LIMITED BY GUARANTEE) We also obtsined an understanding of the legal and gUlatOry framework that the tharitsble company operates in. The key laws and regulations we considered in thls context included the Charities Act 2011, Charitle5 and Trustee Investment (Scotland) Act 2005, (tharities Accounts (Scotland) Regulations 21J06, UK Companies Act and tax legislation. In addition we considered provisions of other laws and regulations that do not have a d1ct effect on the financlal statements but Complian with whlch may be fundamental to the charitable company's ability to operate or to avoid a material penalty. As a result of perfomin9 the above, we did not Identify any key matters related to the potentlal risk of fraud or non-compllan with laws and regulatlons. Our proureS to respond to risks identlfied incILed the following: revlewlng the financlal statement dlxlosures and testlng to supporting documentation to assess compllance with provision of levant laws and regulations dscribed as havlng a direct effect on the financial staternents; enqulrlng of management concernlng artual and potential Iltlgation and claims; -performing analytical prOdureS to Identify any unvsual or unexpected relationshlps that may Indicate rlsks of materlal mlsstatement due to fraud, -revlewing fflinutes of meetings of those charged wlth governan, revlewlng Internal reports, and -in addressing the risk of fraud through management overrlde of controls, testing the appropriateness of Journal entfle5 and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business ratlonale for any significant transactlons that are unusual or outside the normal course of business. We also communlcated relevant identified laws and regulatlons and potential fraud risks to all engagement team members and remained alert to any Indlcation of fraud or non-compliance with laws and regulations throughout the oudlt. A fiJrther descrlption of our responsibilitles for the audit of the financial statements is located on the Flnanclal Reportlng Council'5 webslte at www.frcorg.uVauditorsresponslbilities. Thls descripilon forms part of our Report of the Independent Auditors. 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, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audlt work has been undertaken so that we might state to the charltable company's members and the trustees those matters we a required to state to them in an auditors, report and for no other purpose. To the fullest extent permltted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for thls report, or for the opinions we have formed. Jonathan Askew (senior for and on behalf of Ha Statutory Audltors Chartered Accountants Eligible to act as an auditor In terms of Sectlon 1212 of the Companies Act 2006 4th Floor Tuition House 27-37 st Grge,$ Road Wimbledon London SW19 4EU tory Audito Fowler LLP 18 June 2025 -ifr
PILOTLIGHT (LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUKn FOR THE YEAR ENDED 31 DECEMBER 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Notes INCOME AND ENOOWMENTS FROM Donations and legacies 185,215 185,2L5 255,585 Charitsble activities Providlng busine sUPPOrt to UK charitie5 981,415 482,886 1,464,301 1,222,503 Other trading activities Investment income 2,570 56,711 2,570 56,711 12,158 Total 1,225,911 482,886 1,708,797 1,490,246 EXPENDITURE ON Raising funds 35,989 35,989 41,951 Charitable activities Providing business support to UK charities 1,186,254 482,886 1,669,140 1,642,705 Total 1,222,243 482,886 1,705,129 1,684,656 Net gains on investments 15,529 15,529 16,720 NET INCOMEI(EXPENDrruRE) 19,197 19,197 (177,690) RECONCILIATION OF FUNDS Total funds brought forward 784,368 784,368 962,058 TOTAL FUNDS CARRIED FORWARD 803,565 803,565 784,368 The notes form part of these financial statements -17-
PILOTUGHT (LIMITED BY GUARANfEE) STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2024 2024 2023 Notes FIXED ASSErs Intanglble assets Tangible assets Investments 15 16 17 65,450 16,155 81,478 65,494 46,897 102,297 163,083 214,688 CURRENT ASSErs Debtors Cash at bank 18 264,166 1,083,861 195,308 1,475,625 1,348,027 1,670,933 CREDrroRS Amounts falling due wlthSn one year 19 (502,246) (559,187) NEf CURRENT ASSETS 845,781 1,111,746 TOTAL ASSEfs LESS CURRENT LIABILXTIES 1,008,864 1,326,434 CREDITORS Amounts falllng due after more than one year 20 (205,299) (542,066) NEf ASSErs 803,565 784,368 FUNDS Unrestricted funds 803,565 784,368 TOTAL FUNDS 803,565 784,368 These flnancial statements have been prepared In accordonce wlth the provlslons applicoble to charitable companies subject to the small companies regime. The flnancial statements were approved by the Board of Trustees a1 authorised for issue on 17 June 2025 and were signed on its behalf by: M L Powell - Trustee The notes form part of these financial statements -18-
PILOTLIGHT (UMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations (463, 126) (500,548) Net cash used in operating activities (463,126) {500,548) Cash flows frorn investing activities Purchase of intangible flxed assets Purchase of tsngible fixed assets Purchase of fixed asset investments Sale of fixed asset investment5 Interest recelved (18,070) (3,627) (3,729) 40,077 56,711 (19,869) (8,127) (8,336) 84,333 12,158 Net cash provided by Investing activities 71,362 60,159 Cash flows from financing activities Loan repayments in year (2,556) Net cash provlded byl(used inl financlng activities (2,556) Change in cash and cash equivalents In the reporting period Cash and cash equivalents at the beginning of the reporting perlod (391,764) (442,945) 1,475,625 1,918,570 Cash and cash equivalents atthe end of the reporting period 1,083,861 1,475,625 The note5 form part of these financial statements -19-
PILOTLIGHT (LIMITED BY GUAIiANTEE) NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 RECONCILIATION OF NET INCOMEI(EXPENDrruRE) TO NET CASH FLOW FROM OPERATING AcfiviTIES 2024 2023 Net incDmel(expenditure) for the reporting period (as per the ststement of Financial Activities) Adjustments for: Depreciation charges Gain on investments Interest received Decrease in fixed asset investments Increase in debtor5 Decrease in creditor5 19,197 (177,690) 52,483 115,529) 156,711) 50,747 (16,720) (12,158) 79,232 (28,260) 1395,699) (68,858) 1393,708) Net cash used In operations (463,126) (500,548) ANALYSIS OF CHANGES IN NET FUNDS At 111124 Cash flow At 31112124 Net cash Cash at bank 1,475,625 (391,764) 1,083,861 1,475,625 (391,764) 1,083,861 Totsl 1,475,625 (391,764) 1,083,861 The note5 form part of these financial ststernents -20-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 GENERAL INFORMATION The charitable compary is incorporated and dornicllEd in England and Wale5. The oddress of its regSstered office is 5th Floor, 14 Bonhill Street, London EC2A 4BX. The regISted number of the company is 03270679. The registered number of the charity 15 1059660. The Scottish registered number of the charity Is SC038844. The financial information presented is for the year ended 31 December 2024 and 31 December 2023. The financlal information is presented in sterling. ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements or the charltable companyi whKh is a public benefit entity under FRS 102, have been prepared in accordance with the Charities 50RP (FRS 102) 'Accounting and Reporting by Charities.. Statement of Recornmended Practice applicable to charitles preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 {effective I lanuary 2019), Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland,, the Companies Act 2006, The Charities and Trustee Investment (Scoyandl Act 2005 and The Charities Accounts (Scotlandl Regulations 2006 (as amended). The financial statements have been prepared under the historical c05t convention. a) Preparation of the accounts on a going concern basis The financial statements have been prepared on the assumption that the charity 15 able to continue as a goSng concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves, the flnancial posltion, futu plans and the expected level of income and expenditure for 12 months from authorising these financlal statements.The trustees consider that there are no materlal uncertainties about the charity's ability to continue as a going concern. b) Significant judgements and estimates. Preparatlon of the financial statements requi5 management to make significant judgements and e5tlmates. The Items in the financial statements where these judgements and estlmates have been made Include.. (l) Deferred income, This represents corporate membershSp Income and grant income that relates to future accounting periods. Income All incorne is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it 15 probable that the income will be received and the amount can be measured reliably, Corporate membership income is deferred and only released to the Ststement of Financial Activities over the period to which the membership relates. Voluntary income is received by way of grants, donations and gifts, including gift aid income where applicable, and is included in full in the statement of financial activities when receivable. Income from grants, where related to performan and specific deliverables, is accounted for when It is probable that the income will be received and amount can be measured reliably. Where conditions are imposed that must be met before the charity has unconditional entitlement, the income is deferred and not included in income until the pre-conditions for use have been met. Glfts in kind are included at the estimaled monetary value to the charity. Where Services are provided to the charity as donats.on that would normally be purchased, this contribution is included in the financial statements at an tImate based on the value of the contribution to the charity. Donated assets are recogni5ed at current fair value. The donated asset is recognised a5 donation incorne and debited to fixed a55et investments. Investment Income - Interest on funds held on deposit 15 included when receivable and the amount can be measured reliably by the Charity, -21-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 ACCOUNTING POLICIES - continued Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation commltting the charity to that expenditure, It is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and ha5 been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular heading5 they have been allocated to activities on a basis conslstent with the use of resources. Raising funds Raising fund5 includes all expenditure incurred by the charity to raise fund5 for its charitable purposes and include5 Costs of all fundraising activities, events and non-charitable trading. Governance costs Since there is no direct cost to holding Trustee Board meets'ngs and no Trustee Board expense5 are reimbursed, governance costs only include statutory audit fees. Website development costs Website development costs are capitallsed only if they are reliably measurable, the pr¢)duct Is technically feasible, It Is probable that future economSc benefits will be generdted, and the charlty has the Intention and sufficient resour5 to complete the development. Website development costs are amortized by the straight-line method over their estlmated useful life, of flve years, from the day on which the website became available for use. Customer Relationship Management (CRM) development costs CRM development costs are capitslised only if they are reliably measurable, the product is technically feasible, it is probable that future economic benefits will be generated, and the charity has the intention and sufficient resources to complete the development. CRM development Costs are amortized by the straight-line meth(Ki ¢)ver their estirnated useful Ilfe, of five years, from the day on whlch the Soare became available for use. Tangible fixed assets Depreclatlon is provided at the following annual rates In order to write off each asset over its estlmated useful Ilfe. All capltal items a capitallsed and a full yeals depreciation is charged on a monthly basis from the date of purchase. Depreciation Is provided on all tanglble fixed asset5 at rates calculated to write each asset down to its e5b'mated residual value evenly over it5 expected useful life, as follows. Office Equipment- over 3 or 5 years. Taxation The charity is exempt from corporation tax on its charitable actNlties. Fund accounting Unrestricted funds can be used in accordance with the charitable objectNes at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes wlihln the objects of the charity. Restrictions arlse when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Pension costs and other post-retirement benefits The charitable cornpany operates a defined contr5bution pension scheme. Contributs'ons payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. -22-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 ACCOUNTING POLICIES - continued Fixed asset investments Fixed asset investments comprise two funds.. (i) The Bridges Social Impact Bond Fund, and (li) The Bridges Social Outcomes Fund Il. The Investments in the Funds are initially recognised at transaction value and subsequently measured at falr value as at the balance sheet date. The Funds are valued at the fair value of the net assets. Distributions from the Funds are a return of capitsl and dlsclosed a5 a d15posal in the fixed asset investment note. The statement of financial activltles includes the net galns and I0e5 on revaluation and disposals durlng the year. Cash at bank Cash at bank includes bank deposit accounts and short term highly Ilquid investments with a short maturity of three months or less from the date of acquisition or opening of the dep051t or slmilar account. Debtors Trade and other debtors are recognised at the settlement amount due. Prepayments are recognised at the invoiced cost prepaid. Creditors Credblors a recognlsed when the charlty has a present obligalion resulting from a past event that will probably result In the Iran5fer of funds to a tliird party and the amouni due to settle the obllgation can be measured or estlmated reliably. Creditors are normally recogni5ed at the settlement amount. Impairment Asset5 not measured at fair value are reviewed for any indlcation that the asset may be Impaired at each balance sheet date. If such indlcation exists, the recoverable amount of the asset, or the asset's cash generating unit, is estiniated and cornpared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss Is recognised in profit or loss unless the asset Is carried at a valued amount where the impairment loss is a revaluatlon decrease. DONATIONS AND LEGACIES 2024 2023 Donatlons - Individuals and Trusts 185,215 255,585 OTHER TRADING ACTivrrIES 2024 2023 other income 2,570 -23-
PILOTLIGHT (UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 INVESTMENT INCOME 2024 2023 Deposit account interest 56,711 12,158 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activty Providing business support to UK tharities Provlding buslness support to UK charities Corporate Contract Income Grants 985,415 478,886 808,204 414,299 1,464,301 1,222,503 Grants received, included in the above, are as follows,. 2024 2023 The Garfleld Weston Foundatlon The Natlonal Lottery Communlty Mlva Foundation Grant 336,766 90,120 50,000 323,367 90,932 476,886 414,299 RAISING FUNDS Raising donations and legacies 2024 2023 Consultancy fees 35,989 41,951 CHARITABLE AcfIviTIES COSTS Direct Cosls (see note 9) Support osts (see note 10) Totals Provldlng business support to UK charities 1,264,203 404,937 1,669,140 -24-
PILOTLIGHT (UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 DIRECT COSTS OF CHARITABLE ACTniITIES 2024 2023 staff costs Travel 1,245,419 18,784 1,230,662 25,174 1,264,203 1,255,836 io. SUPPORT COSTS Governance C05tS Management Tota15 Providlng buslne55 SUPPOrt to UK charitles 398,387 6,550 404,937 Support Costs, included In the above, are as follows.. Man39ement 2024 Providing business 5UPPOrt toUK charities 2023 Total actlviLie5 Rent and offlce costs Insurance Telephone Sundries Recrultment costs Legal and professional fees nancial outsourcing Bank charges Amortisation of intangible fixed assets Depreciation of tangible and heritage assets 167,333 8,073 9,865 22,116 32,032 77,983 25,934 2,568 18,114 34,369 173,381 6,791 8,375 28,239 11,289 73,004 26,217 1,976 10,970 39,777 398,387 380,019 Governance ¢osts 2024 Provlding business support toUK charities 2023 Totsl attivities Auditors, remuneration Audltors, remuneration for non audit work 5,150 1,400 5,000 1,850 6,550 6,850 -25-
PILOTUGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2024 ii. NEf INCOMEICEXPENDITURE) Net incomel(expenditure) is stated after chargingl(crediting)'. 2024 2023 Auditors, remuneration Auditors, remuneration for non audit work Depreoation - owned assets Oevelopment costs amortisation Operating leases 5,150 1,400 34,369 18,114 82,021 5,000 1,850 39,777 10,970 82,012 12. TRUSTEES, REMUNERATION AND BENEFrrs There were no trustees, remunerotion or other beneflts for the year ended 31 December 2024 nor for the year ended 31 December 2023, Tru5tees' expenses One trustee received reimbursement of £74 for travel expenses during the period (2023.. £nll). 13. srAFF cosrs 2024 2023 Wages and salaries Social security costs Other pension costs 1,084,986 113,714 46,719 1,070,683 113,414 46,565 1,245,419 1,230,662 The average monthly number of employee5 durlng the year was as follow5,. 2024 26 2023 26 Charity Work The number of employees whose employee benefits {excludSng employer pension costs) exceeded £60,000 was,, 2024 2023 £60,001- £70,000 £90,001 £100,000 Durlng the year redundancy payments of £22,33612023 £nil) were made by the charlty and are included in staff c05t5. -26-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL sfATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 14. COMPARATIVES FOR THE sfATEMENT OF FINANCIAL AcrivrriES Unrestricted funds Restricted runds Total funds INCOME AND ENDOWMENTS FROM Donations and legaues 255,585 255,585 Charitable activities Providing business support to UK charities 808,2¢)4 414,299 1,222,503 Investment income 12,158 12,158 Total 1,075,947 414,299 1,490,246 EXPENDITURE ON Raising funds 41,951 41,951 Charltable activities Providing buslness support to UK charlties 1,221,756 420,949 1,642,705 Totsl 1,263,707 420,949 1,684,656 Net gains on investments 16,720 16,720 NET INCOMEI(EXPENDITURE) (171,040) (6,650) (177,690) RECONCILIATION OF FUNDS Totsl funds brought forward 955,408 6,650 962,058 TOTAL FUNDS CARRIED FORWARD 784,368 784,368 INrANGIBLE FIXED ASSETS Development costs COST At l January 2024 Additions 83,120 18,070 At 31 December 2024 101,190 AMORTISATION At l January 2024 Charge for year 17,626 18,114 At 31 Decernber 2024 35,740 NET BOOK VALUE At 31 Dember 2024 65,450 At 31 December 2023 65,494 -27-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 15. INTANGIBLE FIXED ASSETS - continued (i) Development costs of £30,720 incurred in 2021 related to the development of the charity's website which came into operation in December 2021.The trLtstees' consider that the useful estimated life of the website is five years. (li) Devdopment costs of £32,531 incurred in 2022 and £16,869 incurred in 2023 related to the development of the charity's CRM software which came into operation in July 2023.The trusiees, Consider that the useful estimated life of the CRM software is five years. (iii) Development costs of £3,000 incurred in 2023 relating to further development of the charty'5 softsvare wlll be effective in 2024 when the cosLs will be amortised over the useful estimated life. (iv) Development costs of £18,07Q incurred in 2024 relating to further development of the charity's sorare will be effective in 2025 when the costs will be amortised over the useful estimated life. TANGIBLE FIXED ASSErs Offlce equlpment Cosr At l January 2024 Addltions 235,659 3,627 At 31 December 2024 239,286 DEPRECIATION At I lanuary 2024 Charge for year 188,762 34,369 At 31 December 2024 223,131 NET BOOK VALUE At 31 December 2024 16,155 At 31 December 2023 46,897 17. FIXED ASSEf INVESTMENTS Unlisted Investments MARKET VALUE At l January 2024 Addltions Di5P05als Revaluations 102,297 3,729 (40,077) 15,529 At 31 December 2024 81,478 NET BOOK VALUE At 31 December 2024 81,478 At 31 December 2023 102,297 There were no investment assets outside the UK. Pilouight have invested into 2 fund5: -28-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 17. FIXED ASS INVESTMENTS - continued (I) Bridges Social Impact Bond Fund In March 2018 Pilotlight became in limlted partner in this fund. At the year end Pilotli<Jht had an unfunded commitment of E79,232 (2023 £79,232). The market value of 8rldges Soclal Impact Fund LP at 31 December 2024 was £5,35012023 £23,108) as per the valuation disclosed In the audited financial stalements for the period l April 2022 to 12 March 2023 {the termination date) less subsequent drawdown5. Thi5 fund 15 in the process of an orderly liquidation. The market value excludes the unfunded commitment. (li) Bndges Soclal Outcomes Fund 11- In March 2019 Pilotllght became in limited partner in this lund. At the year end Pilotlight had an unfunded commitment of £122,294 (2023 £126,022). The market value of Bridges Social Outcomes Fund II at 31 December 2024 wa5 £76,131 (2023 £87,203) as per the valuation disclosed in the audited financial statements for the year ended 31 December 2024.The market value excludes the unfunded commitment. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Other debtors Membership debtors VAT Accrued income Prepayment5 69,576 111,748 8,310 14,413 60,119 39,163 101,408 1,483 53,254 264,166 195,308 19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors Social security and other taxes Other creditors Deferred Income Accrued expenses 29,846 8,546 5,136 414,207 44,5LI 7,414 28,824 7,419 486,038 29,492 502,246 559,187 2024 2023 me Balance at I lanuary 2024 Deferred Income - amount5 falling due after more than one year (transferred) Amounts deferred in the year Amounts released to income 486,038 336,767 77,438 (486,036) 429,275 336,767 149,271 (429,275) Balance ot 31 December 2Q24 414,207 486,038 Deferred incorne at 31 Decernber 2024 consists of £78.782 (2023 £99,271) corporate Income and £335,425 (2023 £386,767) grant incorne whSch relate5 to the year ended 31 December 2025. -29-
PILOTLIGHT (UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2024 20. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR 2024 2023 Deferred income 205,299 542,066 2024 2023 ferred Inc Balance at l January 2a24 Deferred income - omounts falling due within one year (transferred) 542,a66 {336,767) 878,833 (336,767) Balance at 31 December 2024 205,299 542,066 In 2022 Garfield Weston awarded Pllotllght a grant of £1,000,000 to be spread over three years towards the partnershlp between Garfield Weston and Pilotlight on the Weston Charity Awards. 21. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows,, 2024 2023 Within one year Between one and flve years 108,568 66,686 64,318 166,404 175,254 230,722 22. ANALYSIS OF NET ASSEfs BETWEEN FUNDS 2024 Total funds 2023 Total funds Unrestricted funds Restricted fund5 Fixed assets Investments Current asset5 Current liabilities Long term liabllitles 81,605 81,478 807,311 (166,829) 81,605 81,478 1,348,027 (502,2461 (205,299) 112,391 102.297 1,670,933 (559,187) 1542,066) 540,716 (335,417) (205,299) 803,565 803,565 784,368 Comparatives for 2023 net assets between funds Unre5trfcted funds Restricted funds 2023 Total funds Flxed assets Investments Current assets Current liabilities Long term liabilities 112,391 102,297 742,100 (172,240) 112,391 102,297 1,670,933 (559,187) 1542,066) 928,833 (386,767) (542,0661 784,368 784,368 -30-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2024 23. MOVEMENT IN FUNDS Net movement in funds At 31112124 At 111124 Unrestricted funds General fund 784,368 19,197 803,565 TOTAL FUNDS 784,368 19, k97 803,565 Net movement in funds, Included in the above are a5 follows: Incoming resource5 Resources expended Galns and losses Movement in funds Unrestrltted funds General fund 1,225,911 11,222,243) 15,529 19,197 Restrfcted lunds The National Lottery Communlty Fund The Garfield Weston Foundation Miva Foundation 96,120 336,766 50,000 (96,120) 1336,766) (50,000) 482,886 (482,886) TOTAL FUNDS 1,708,797 (1,705,129) 15,529 19,197 Comparatives for movement in funds Net movement In funds At 31112123 At 111123 Unrestricted funds General fund 955,408 (171,040) 784,368 Restricted funds Pro Bonoloak Foundatlon 6,650 (6,650) TOTAL FUNDS 962,058 (177,690) 784,368 -31-
PILOTLIGHT (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2024 23. MOVEMENT IN FUNDS - continued Comparative net movement in funds, included in the above are as follows: Incoming Resources resour5 expended Gains and losses Movement in fund5 Unrestricted fund5 General fund 1,075,947 (1,263,707) 16,720 (171,040) Restricted funds Pro Bonoloak Foundation The National Lottery Community Fund The Garfield Weston Foundation 16,6501 (90,932) (323,367) (6,6SO) 90,932 323,367 414,299 (420,949) (6,650) TOTAL FUNDS 1,490,246 (1,684,656) 16,720 (177,690) Restricted Funds (i) The Garfield Weston Foundation. Supporting Pilotlight and chanbes in the Midlands, North-East, North-west of England and Wales through the Weston Charity Award5. See the note on deferred income for more details. (il) The Natlonal Lottery Community Fund. To establish a sustainable presence for PilDtllght in Birmingham, enabling charities in the area to access it5 hlghly managed capacity building programmes and to build sustainable local support nelworks beleen charities and busine55e5. {lii) The Mlva Foundation, A three year Inltlative in partnership wlth the MIVA Foundation for a new post to allow Pllotlight to extend and broaden its support over time for selected charities identlfied as having high potential to scale impact. (Iv) Pro Bono Economics l Oak Foundation: Providlng speciallst skills for 10 housing and homelessness charitles In Oak Foundation's portfolio of grantees, 24. EMPLOYEE BENEFIT OBLIGATIONS Pilotlight operates o defined contribution penslon scheme. The assets of the scheme are held separatety from those of the charity in an Independently administered fund. At 31 December 2024 £5,45912023 £5,407) was payable to the fund and is included in creditors. 25. OTHER FINANCIAL COMMITMENTS (I) Bridges Social Impact Bond Fund At the year end Pilotlight had an unfunded commltment of £79,232 {2023 £79,232). (li) Bridges Social Outcomes Fund 11 - At the year end Pilouight had an unfunded commltment of £122,924 (2023 £126,022), -32-
PILOTLIGHT (UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2024 26. RELATED PARTY DISCLOSURES Key management cornpensation 2024 2023 Salaries and other short-term benefits Post-employment beneflts 372,225 17,918 359,312 14.396 390,143 373,708 Key management include5 certain senior employees who have authority and responslbility for planning and controlling the activities of the charity. During the year trustees made donations of £2,563 (2023 £7,093). COMPANY LIMrrED BY GUARANTEE The charity Is limitaj by guarantee and has no share capital. The liabillty of each member is determlned by the Artlcles of the charity and shall not exceed £1. There were 10 members as at 31st December 2024 (2023.. 10). 27. -33-