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2020-09-30-accounts

UNITED JEWISH ISRAEL APPEAL

FINANCIAL STATEMENTS | 30[th] September 2020

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Registered Charity (England & Wales): No. 1060078. Registered Charity (Scotland): No. SC 039181
A company limited by guarantee and registered in England: 3295115
Haysmacintyre LLP, Chartered Accountants, 10 Queen Street Place, London EC4R 1AG
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ANNUAL REPORT & FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

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UJIA

CONTENTS PAGE

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Report of the Trustees including Strategic Report Page 3
Statement of Financial Activities Page 16
Balance Sheet Page 17
Cash Flow Statement Page 18
Notes To The Financial Statements Page 19
Independent Auditors’ Report Page 31
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REPORT OF THE TRUSTEES INCLUDING STRATEGIC REPORT

UJIA – OUR VISION AND MISSION

Israel is a core part of the identity of the vast majority of British Jews. Facilitating a connection to the diverse peoples, languages, places, cultures and stories of Israel, and showing a commitment to Israel and Judaism through learning about, experiencing and giving to Israel, is what UJIA does. Our vision is “a strong British Jewry with a lifelong commitment to Israel” and our mission, UJIA’s role, is “to develop informed, confident Jews who are inspired by Israel”, and we work across the breadth of the Jewish community in the UK with Jews who identify in a whole spectrum of different ways.

Whether it is through best-in-class educational programming, creating people-to-people connections between British Jews and Israelis, running training and leadership seminars and activities, organising exceptional, lifechanging educational travel experiences (short-, medium- and long-term) in Israel or directing philanthropy to invest in improving the life-chances of some of the most disadvantaged Israelis, UJIA works in the UK and in Israel to fulfil our mission and bring about our vision. As an impact-led organisation, we believe that, in addition to aiming to reach more people with our programmes and raise more money through our fundraising campaign, we must also monitor and evaluate the change we are making, both in the UK and in Israel. Through a range of methodologies, we have embedded impact evaluation practices across UJIA and increasingly amongst our partners.

UJIA – OUR STRATEGY

UJIA’s work is spread across two countries (UK and Israel), and within both countries in many localities. Our programme in the UK spans many dozens of different interventions, and in Israel our portfolio of grants, engagement programmes and capital projects is large and complex. We also have many functions that support our impact, for instance fundraising, marketing, finance and facilities.

Beginning in 2018, we worked to develop an impact-led strategy for the organisation as a whole, that was prepared and ready for the start of the 2019/20 programme year. Once the pandemic hit, there was an urgent need to review our programmatic and broader organisational strategy. We were proud to publish the resulting document in September 2020, charting a course for the next three years, focusing on the core concept of connection, articulating five clear values and giving details about how both our programming and our organisational ways of working and culture will change and adapt to meet the needs of the pandemic and post-pandemic world. The strategy is available to read on our website.

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VOLUNTEERS AND STAFF

The fundraising activities of the UJIA are supported by hundreds of volunteers around the UK and Israel and the Trustees thank them for their tremendous contributions to the ongoing development of the Charity. The Trustees also wish to record their appreciation to the professional staff, without whose dedication and commitment, the results of the campaign and programme would not have been achieved.

PRINCIPAL OBJECTIVES AND ACTIVITIES OF THE UNITED JEWISH ISRAEL APPEAL

The objects of the United Jewish Israel Appeal (“UJIA”) as defined in its Articles of Association are for the public benefit.

The Trustees have had due regard to the Charity Commission’s guidance on public benefit when considering the Charity’s objectives and activities.

UJIA Israel

UJIA Israel, formerly the British Olim Society Charitable Trust, is a charity registered in Israel, providing us with services such as due diligence on projects undertaken in Israel under a formal agreement. This year they have received directly substantial donations that will enable them to undertake a series of capital projects for schools and homes for youth at risk around Israel, including the Galil, which is the focus for and is co-funded by UJIA UK.

ACHIEVEMENTS, PERFORMANCE AND FUTURE PLANS

Financial Overview:

Total income in 2019-20 was £8.2 million compared with £9.8 million in 2018-19. Total expenditure declined from £9.7 million in 2018-19 to £8.5 million in 2019-20.

Our Work in 2019-20 – A Year Like No Other

The Covid-19 pandemic which was declared by the World Health Organisation as starting in March 2020 had an impact on the finances and operation of the Charity. Some relevant staff worked remotely, others were put on furlough and covered by the Government’s Job Retention Scheme. The senior management team took an agreed salary reduction. Actions were taken to reduce running costs wherever possible.

As with all other organisations and charities, UJIA’s programme year was also enormously impacted by the ongoing pandemic. UJIA had to rapidly reshape our programme, pivoting our offering online where appropriate, cancelling several flagship initiatives, introducing many new ideas and projects, restructuring our programme team and working closely to understand the impact of the pandemic on our educational partners.

Despite the many challenges of the pandemic, UJIA continued to find ways to deliver our mission of connecting British Jews to Israel, and in Israel of providing education and employment opportunities to some of the most disadvantaged communities. The context was transformed but our dedicated professionals, supported by our Trustees and other lay leaders, displayed amazing creativity and flexibility. 2019-20 was certainly a unique year but also one of many highlights and exciting innovations.

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Before the Pandemic

UK Programme

A number of programmes/projects had already been entirely or substantively delivered before the pandemic hit, or had participants signed up and ready to go before those programmes sadly had to be cancelled.

The Chazon Seminar in Israel established UJIA’s relationship of year-round support for the movement workers. Upon completion of the seminar:

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76% 100% 76%
OF PARTICIPANTS agreed or strongly OF PARTICIPANTS agreed or strongly OF PARTICIPANTS agreed or strongly
agreed that they could see how UJIA could agreed that they improved their agreed that the seminar helped them think
support them throughout their year of relationships with movement workers about ways to work together with other
movement work from other Youth Movements Youth Movements throughout the year
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The seminar is also an important and effective way for movement workers to develop relationships with their peers from other movements, facilitating further cross-communal collaboration. We also offered all youth movement workers and UJS sabbatical officers mentors from across the community to support their development, and via our “POD” scheme careers-focused advice and guidance for their next steps.

Our flagship Israel education programme for Sixth Formers, UJIA Israel Fast Track, had its fourth cohort of 14. They began in October 2020 and met monthly up to and including March 2020, including a residential weekend at the start of the programme and a five-day trip to Israel in the February half-term, where they met a range of exceptional speakers and educators representing a diverse range of views. Feedback from the programme was excellent and the impact it has is demonstrable through evaluation.

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36% arrow-up 73% 100%
OF PARTICIPANTS before the OF PARTICIPANTS upon completion
programme agreed or strongly agreed of the programme, felt that their
that it is important for British Jews to experiences as part of the group
feel a connection to Israel rising to 73% would help them in their future Israel
on completion of the programme engagement activities
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UJIA Israel Fast Track aims to equip participants with the knowledge and confidence to engage further in Israel education as leaders in the UK Jewish community. There have now been over 75 alumni of the programme who are setting the agenda about Israel on their university campuses, at their youth movements and in the future in their places of work.

UJIA funds and manages two shlichuyot (positions for Israelis from the Jewish Agency for Israel to come to Diaspora Jewish communities to educate and inspire) in Leeds and in Manchester. These shlichim are integral to these two communities, working in synagogues, schools, youth movements and with other communal organisations. A highlight in Manchester was a speaker tour by the Israeli journalist Ben-Dror Yemini. Their hard work and exceptional creativity is always appreciated by the local communities. UJIA also provided half-funding for a shlichut in Redbridge, in partnership with Jewish Care. In Glasgow, in partnership with the Glasgow Jewish Community Trust, we hired an exceptional youth worker from Canada to work with the local community on a wide range of educational activities. Her creativity and connection to the community allowed her to run outstanding initiatives that engaged hundreds of families.

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Our educational programmes with synagogues and local communities included IBBM clubs (where those approaching Bar/Bat Mitzvah come together to learn about becoming a Jewish adult through the stories of the diverse populations that make up Israeli society), which had 55 families engaged before they had to stop for the pandemic, and gap year fairs run to showcase options for younger members of those communities to spend time in Israel the following year. These took place in both Orthodox and Progressive communities. UJIA educators also delivered 25 sessions at Limmud Festival 2020, a major educational/cultural gathering of 2,500 Jews from around the world.

UJIA’s JAMS programme, running educational sessions in non-Jewish schools, had run over 360 sessions up until the closure of schools in March 2020. The schools we work with are in London, Manchester, Leeds and Glasgow and range from having hundreds to a dozen Jewish pupils; the provision is especially valuable where if UJIA JAMS did not exist, there would be no Jewish education on offer.

UJIA’s grant-making in the UK totals almost £1,357k, of which about half is core grants to the youth movements who have proven over the decades to be such incredible generators of inspiring, values-based leadership for our community. Other major grants were given to the Jewish Agency for Israel, UJS, Maccabi GB, four of the Jewish secondary schools and Reshet, as well as many smaller grants (for both “core” and “activity”). In addition, this year we agreed to fund a two-year project with PaJeS to design an entirely new curriculum to teach year 9s in Jewish schools about Israel. Our strategy with grant-making is to combined due diligence with a focus on impact, helping our partners to both “prove” that what they do has relevant outcomes for the participants and “improve” their activities to be more impactful in future. We also offer training opportunities to our educational partners when relevant; for instance, this year we coordinated sessions by Keshet UK and by JAMI for the youth movements.

UJIA also holds two funds with specific purposes. The UJIA Ashdown Fund is for programmes that support Jewish educational leadership in Jewish schools; we have partnered with PaJeS on two projects in this regard. The first is an annual overnight Heads’ Seminar, the latest of which took place in November 2020 for 36 heads from a wide range of schools. The second is a fellowship programme for Senior Leaders, combining a formal qualification obtained through the Institute for Education with regular enrichment sessions. This has been able to continue, albeit online, throughout the pandemic. The Mamlock House Fund is specifically for activity in Manchester and supports one primary and one secondary school with bursaries for trips to Israel and Poland respectively; this year, only the latter was able to take place (in February 2020).

In the winter, we send 32 young adult participants on Birthright, a free ten-day trip to Israel. Over 130 also took part in a number of activities aimed specifically at Birthright alumni. By March, when the pandemic struck, we had 225 participants signed up for a variety of summer trips, with more being assigned to trips every day; sadly, these programmes were unable to take place. We also had a full cohort of 24 students signed up for our Onward Israel internship programme in Israel; this again was cancelled, with all participants offered first refusal on a place for summer 2021.

Through our partnership with Masa (a Jewish Agency for Israel/Government of Israel framework to support long-term educational programmes in Israel), 345 young adults were able to spend anywhere from four months to a full year on a wide variety of programmes in Israel. This represented growth of 3% on the year before. 2019/20 was also the first year for a decade where a more than half of participants were on non-Torani programmes (programmes where the major focus is not on spending time studying at a yeshiva or seminary). Of particular note were the increasing number of participants on Masa Israel Teaching Fellows (with whom UJIA is developing a bespoke partnership) and on nonyouth movement gap years. Despite the pandemic, recruitment for the following year (commencing in autumn 2020) remained strong and it is predicted that 2020/21 will be the largest Masa cohort for five years.

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As the pandemic struck, we were due to have our largest Israel Tour summer since 2010, with 1264 young people in school year 11 signed up for what would have been a fantastic three-week experience in Israel. Over 200 of them had also requested financial assistance through our anonymised bursary process. What had seemed unthinkable in January became inevitable by late-March and UJIA and our partners at the Jewish Agency for Israel took the decisions to cancel the entirety of Israel Tour for the first time ever. We worked closely with our youth movement/ organisation partners to ensure that all parents were refunded monies owed in a timely fashion; compared to much of the rest of the international travel industry, our refund process was efficient and ensured that parents/families could maintain confidence in UJIA, the Jewish Agency and the youth movements/organisations.

Israel Programme

UJIA’s work in Israel is divided into three areas: support to partner organisations in the fields of education and employment; the Si3 social investment fund and a capital portfolio. Before and during the pandemic, our work continued to advance each of these areas. Specifically, our philanthropic portfolio of programmes supported some 11 initiatives for children and youth at risk and providing access to education and employment for adults in disadvantaged communities. As the needs in Israel have only grown in the past year, this work has become even more critical.

Our capital programme continued with advancements in a number of the projects. Of particular note, two new family houses were built in the Carmiel Children’s Village. This facility for children at risk enables the children who have been removed from their biological families to grow up in warm “family home” with parents and their own children. Each house houses a nuclear family plus 12 children from the village. Prior to the renovations these children and the families were living in very difficult conditions, with damp and leaking roofs. The new houses give the children a sense of security and calm and directly impact on the children’s behaviour and self-esteem. The two renovated houses were completed by end 2020. Additional progress was made on capital buildings such as the Maase building for gap year volunteering in Akko and also the Aleh facility for children with special needs in Bnei Brak.

Si3, UJIA’s Social Impact Investment Initiative, not only has enormous benefit for a growing portfolio of organisations (eleven by end of 2019/20, two of whom has already repaid the loan), who in turn impact on thousands of Israelis, but also acts as a portal for the engagement of British Jews. The investment committee comprises 14 lay leaders from a range of backgrounds, and they are supported by an advisory committee of 40 younger professionals. They help to assess and rank the prospective investments, a process now entirely online. The Si3 portfolio comes from a larger pool of almost 60 applications. Our investments cover a diverse range of projects, including urban regeneration in Lod and Haifa, micro-finance for Ethiopian entrepreneurs and social enterprises working with some of Israel’s most vulnerable communities, including Bedouin, Haredim (strictly orthodox Jews) and children with disabilities.

During the Pandemic

Government restrictions on business, travel and everyday life began in Israel in February 2020 and in the UK in March 2020. Although the exact terms of the rules waxed and waned over the rest of the programme year, fundamentally UJIA’s programme changed in mid-March 2020 and had not returned to normality by the end of September 2020. Through these challenges, UJIA decisively pivoted and innovated, offering new types of funding, creating new programmes, and transforming existing ones. Staff who had been working on some programmes for many years found themselves suddenly deployed to create totally new ones and grabbed this opportunity with both hands. Their hard work meant that far from our impact being diluted, we reached even more British Jews than ever before, and continued to have a substantial impact in Israel.

UK Programme

We ran a variety of activities for Yom HaShoah, Yom HaZikaron and Yom HaAtzmaut. These included an online tekes (ceremony), led by the community in Manchester and us supporting one of our grantees, Etgar, to run a fun online quiz that was played by hundreds of families worldwide. We also entered into a major new partnership with PJ Library, who send children’s books on Jewish/Israel themes to 7,800 Jewish children across the UK, by creating a series of exceptional online and paper-based educational resources that were bundled with their April 2020 book mailing.

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Our shlichim ran daily online Hebrew activities aimed at primary school-aged young people from April until July in a newly-created programme called “Ivrit B’Kef”. An average of 20-30 young people attended each day. A Jewish primary school was so impressed that they used the programme as their Hebrew class.

We also created a range of online educational resources and events. For Shavuot we set up a website where families could download the resources necessary to run a “pyjama party”, and for the first time we marked Pride Week with our “Rainbow Israel” initiative. We started two podcasts: an interview show with famous and inspiring people led by teenagers from Manchester called JAMS Radio; and a short-form educational story format aimed at primary schoolaged young people called Hatikvah Histories. We also launched a weekly newsletter to share the best Israel events and resources from across the community, and a major feature on the Jewish News website collating hundreds of online resources about everything to do with Israel. In Glasgow, our youth worker created a series of videos and activity sheets called “Chavaya B’Chava” (Experience on the Farm), incorporating Hebrew, Jewish ideas, connections to Israel and an appreciation for nature. We also partnered with a range of other organisations to launch the “Matana Club”, a monthly box through the post containing resources and activities usually connected to the festival or time of year. It spread far beyond Glasgow and had over 150 sign-ups from families across Scotland. Finally, we set up direct “mifgashim” (encounters) between Israeli young people and British Jewish young people, to continue their personal connections even when travel was not possible. These included an entrepreneurship project run with our Israeli partner Unistream and an innovative format from an Israeli television show called “Slicha Ha’Sheila” (Sorry, What’s the Question?) that paired Yavneh College in Hertfordshire with the Carmiel Children’s Village in the Galil in Israel.

Finally, as a result of the restrictions, no travel programmes or overnight activities in the UK were allowed over the summer. In order to make up for this, UJIA launched our Summer Engagement Fund, a £100,000 open-application grant scheme to support innovative, exciting activities for Jewish young people and families. We had an incredible 71 applications, and were able to award 24 grants ranging from a few hundred pounds to £10,000. The grantees were from across the religious spectrum of the Jewish community and from all parts of the UK, and the projects included day camps, online camps, virtual tours of Israel, posted activities “in a box” and more. In total, over 7,000 people were reached by the activities, and we aim to repeat the scheme in winter 2020 and beyond.

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Israel Programme

During the first lockdown in Israel (March-May 2020) when most of the country was under tight restrictions, a number of steps were taken: A majority of the UJIA Israel staff were furloughed, and we conducted a review of all our financial programmatic commitments to ensure we could continue to meet these commitments. Outreach to all grantees took place to assess the situation, understand how their operations were being adjusted and impacted and as a result, guided the necessary decisions which essentially led to UJIA Israel to make reductions in the majority of our programmatic commitments to reflect reduced activity.

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With the reopening of Israeli society, staff returned to work in July and for most part, all of our programmatic partners continued to operate, pivoting to take place on-line or within government restrictions of social distancing. In addition, we surveyed our partners to understand if there were additional needs that arose as a result of COVID. One key area that became clear was the need for tablets and laptops for the children of the Carmiel Children’s Village to be able to connect to online learning. Since March, school has been online for the vast majority of children (there were a few months that younger age children returned to the classroom). A gift of 18 computers to the children’s village ensured that they could participate fully in their studies.

In the second part of the year, we closed on two new Si3 investments – Siraj - a start up for Bedouin engineers that provide employment opportunities for this marginalized group and Lotus a high tech hub for Druze women. The portfolio companies continue to perform as expected and with the exception of two companies, we didn’t experience any issues with loan repayments. We worked with these companies to work out plan to ensure they can get back on track with payments.

FUNDRAISING APPROACH AND PERFORMANCE

UJIA has invested in securing a talented and experienced fundraising team. The fundraising strategy is reviewed on a regular basis and performance is monitored regularly by the Finance Committee and Trustees. This includes our strategy for generating income from legacies, which has its own steering group comprising professionals, Trustees and other lay people.

The charity undertakes fundraising activity to its supporters via direct mail, telephone, fundraising events, sponsored events, gala dinners and email in line with the Fundraising Code of Practice set by Fundraising Regulator. We also utilise a range of social media platforms to engage our supporters, both with educational content and to highlight relevant fundraising opportunities.

We have a Data Protection Policy, which together with our Legitimate Interest & Consent Policy governs how to identify and clarify who, when and how UJIA may contact its Participants under its Legitimate Interests or via consent. Careful consideration is given to the context of the data processing intended, in order to satisfy the balancing test of not putting UJIA interests ahead of the interests of the data subject in respect of relying on Legitimate Interest and, how and when consent is achieved when relying on consent.

This Policy is acted upon in accordance with UJIA’s Data Protection Policy which sets out the obligations of UJIA regarding data protection and the rights of its Participants (“data subjects”) in respect of their personal data under EU Regulation 2016/679 General Data Protection Regulation (“GDPR”). In addition, our website has a Privacy Policy detailing how information collected online is used.

We have a training programme for all our fundraising staff to regularly reinforce our fundraising ethics.

Charity supporters registered on the Telephone Preference Service are only called with an appeal if they have agreed to receive such calls. Callers are thoroughly trained and updated on the charity’s work and calls are regularly monitored.

We have an established complaints process. We have not received any complaints directly nor are we aware of any complaints which have been received by the ICO or Fundraising Regulator in the year.

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SUBSIDIARY TRADING COMPANIES

The Charity’s trading company, UJ Events Plus Ltd, donated its profit of £116,000 (2019 £84,000) by way of gift to the Charity. The company’s income is mainly derived from advertising and fundraising event income and sponsorship. The movement in income for the year and thus in profits is not a significant factor in measuring the success of the Charity in raising funds.

UJIA Legacy Services Limited acts mainly in a statutory capacity in relation to legacies. It was dormant by September 2020 and wound up from 31 December 2020.

UJIA RISK AND GOVERNANCE STATEMENT

The Trustees have undertaken procedures which are in line with best practice for charities. They have undertaken a detailed risk management process, which outlines all the major risks of the Charity, relevant control procedures, responsibilities and future actions to be taken. Future monitoring of risk has now become embedded within the overall agreed procedures of the Charity.

The Trustees have established committees. These include the Finance and General Purposes Committee whose role includes the identification of the business risks that the organisation faces. As part of a review of the risk management process, two new committees were set up being:

Remuneration Committee - which oversees staff compensation.

Governance Committee - which deals with compliance and governance matters.

Other risks are identified, assessed and controls established throughout the year. Key controls include:

The Trustees are satisfied that all the major risks to which the Charity is exposed are being reviewed and systems of internal control are being established to manage those risks. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

The major risk to the UJIA is having insufficient funds to support the medium and long term objectives of its Israel and UK programmes. The mitigation strategies are set out below.

MANAGING RISK

Programme Budget and Monitoring

UJIA’s grant management system enables us to monitor spending and its impact. The process is as follows: Following informal discussions and shared development of ideas with UJIA staff, partner organisations are invited to apply in writing (including project narrative and financial information) for grants for specific charitable activities that are aligned with UJIA’s goals. This enables us to support partners and to make strategic connections between grantees.

The professional staff work with Trustees and volunteers to develop and monitor the programme. Our Lay Leadership Committee structure works on the basis of delegated responsibility from the Trustees under which Committee recommendations are fed back to Trustees. The Lay Leadership and Trustees network provides an additional layer of accountability to the organisation’s donors in the deployment of charitable funds.

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Partner grants are monitored carefully for delivery in both financial and programme terms and checked for charitable activities and compliance. Payment is generally made in three instalments in January, May and October.

Partner grants are monitored carefully for delivery in both financial and programme terms and checked for charitable activities and compliance. Payment is generally made in three instalments in January, May and October.

The programme budget has been reviewed and discussions held with beneficiaries and partners as a result of the Covid-19 pandemic. While it is impossible to provide certainty in the current situation, UJIA has taken steps to reduce its allocations to beneficiaries where appropriate. The Trustees have assumed that donations will fall substantially between March 2020 and September 2021 but that expenditure will reduce in line with this. Several educational activities did not take place in summer 2020 and may not take place in summer 2021. The budget has been amended for this circumstance. In addition, the Trustees have taken steps to reduce running costs and obtain such government support as is available. Trustees expect to have to spend some of the charity’s reserves in this challenging period, but because of many years of prudent financial management, they expect to have sufficient funds available to maintain a responsible level of reserves as UJIA restructures its activities and operations as a result of the pandemic.

STRUCTURE, GOVERNANCE & MANAGEMENT

CONSTITUTION

The United Jewish Israel Appeal (UJIA) is a registered Charity in England & Wales (no. 1060078) and in Scotland (SC 039181) and a Company limited by guarantee (no. 3295115) and is governed by its Articles of Association. The Trust was established on 16 December 1996 and started operations in January 1997. It changed its name from the Joint Jewish Charitable Trust with effect from 26 June 2000.

MEMBERSHIP

The Trustees constitute Directors of the Company for Companies Act purposes. The governing body of the Company is a Board of Directors whose members are elected by the Members of the Company. The Articles of Association enable the Board to determine membership criteria and admit new members at their discretion. Each member is entitled to vote at general meetings.

BOARD OF DIRECTORS

The Board of Directors, all of whom are Members of the Charity and are Trustees, is required to conduct the affairs and the general business of the Charity and meets a minimum of six times per year. Under Article 40 of its Articles of Association the Charity is required to have a minimum of three Board members, with no upper limit. Membership of the Board is currently as listed on page 15.

New members of the Board are co-opted by existing Trustees to maintain or augment the range of skills and experience appropriate to the needs and activities of the Charity and subsequently proposed for election by the Members at the next general meeting.

On appointment, new Trustees are provided with appropriate Charity Commission guides, training materials, a set of the Charity’s policies, the current Strategic Plan, the latest Statutory Accounts and an outline of their duties and responsibilities. They also have access to a copy of the Articles of Association. New Trustees meet with the Chief Executive to undertake an induction process.

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The Board delegates responsibility for the day-to-day management of the Charity to the Chief Executive and the Senior Management Team (SMT). The SMT reports to the Board on the performance of their respective departments against the Strategic Plan set out by the Trustees and financial and operational trends measured against the annually approved budget. Key performance indicators are in place to assist this process. The Charity is supported by a team of specialist professional advisors listed on page 15.

PAY POLICY FOR SENIOR STAFF

The Board considers that the Trustees and the Senior Leadership Team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. The pay of the senior staff is reviewed annually and normally increased in accordance with earnings in similar organisations in the sector

INVESTMENT POLICY AND PERFORMANCE

The Charity has wide powers of investment and can delegate these powers to professional investment managers entitled to carry out such business under the Financial Services and Markets Act 2000.

The Charity holds funds for investment mainly in the form of restricted funds for projects awaiting completion and due diligence checks. These funds are held in a liquid format enabling ready access. In addition, the Charity has embarked on a series of social impact investments through loan finance, details of which are shown at note 8.

UJIA GRANT MAKING POLICY

The Charity distributes funds in fulfilment of its aims as expressed in its Mission Statement. Funds are allocated towards a range of educational and welfare projects in Israel that serve the needs of all Israelis, especially those from disadvantaged communities. Funds are also allocated towards the renewal of Jewish life in the United Kingdom, through support of a variety of innovative educational programmes and projects, particularly those oriented towards young people. All grants given are monitored closely and, when material, are subject to written reports and site visits.

CONNECTED CHARITIES

The Charity was established to act as a focal point for charities concerned with Jewish education in the United Kingdom and work in saving Jewish life in Israel and the Near & Middle East by providing assistance and support for refugees and new immigrants and making suitable provision for their education and welfare, in accordance with charity law in the UK.

On 31 March 1998, the Charity entered into an agreement with the connected charities, the Jewish Philanthropic Association for Israel & the Middle East (“JPAIME”) (registered charity no: 256689), the JJCT Charity (registered charity no: 1043047 - which ceased operations in September 2002 and ceased to be a registered charity on 20 September 2006) and the Society of Friends of Jewish Refugees (“SFJR”) (registered charity no: 227889), under which and over a period of time, the activities and funds of those charities would be transferred to the Charity. On 1 April 1998, this Charity became sole corporate trustee of the other charities. This amalgamation was pursued to streamline the administration of all these connected charities, to achieve economies of scale and to provide a clearer focus for fundraising efforts.

Although the activities transferred to date are being administered and accounted for as restricted funds of the Charity, this does not make the transferor charities themselves “special trusts” of the UJIA; nor are they considered to be “branches” of the Charity in the absence of any Uniting Direction by the Charity Commission. Separate accounts have therefore been prepared for them for the year to 30 September 2020.

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RESERVES

The Trustees have considered the financial risks associated with the various income streams and expenditure types and wishes to hold reserves sufficient to protect the ongoing programmes of the UJIA from unexpected variations in income. The Trustees’ intention prior to Covid-19 was to maintain unrestricted reserves of some £3m to meet this objective. At the balance sheet date, general unrestricted reserves were £3,193,000 (2019: £3,176,000). While it is impossible to predict the impact of the Covid-19 pandemic, an initial revised budget still shows an adjusted positive unrestricted reserve balance in September 2021 after required allocation from reserves towards charitable activities.

Our Trustees and Finance Committee continually review our finances and concluded that the charity was in a position to enhance its programme with a responsible, partial release of funds from within its reserves.

In addition, the Trustees have designated a sum of £720,000 for a variety of projects in the UK and Israel. This is expected to be spent over a 3-4 year period.

In the opinion of the Trustees, the assets of the Charity are sufficient to meet its liabilities and consequently we have a reasonable expectation that we have adequate resources to continue in operational existence for the foreseeable future. The financial statements have therefore been prepared on the basis that the Charity is a going concern.

EQUAL OPPORTUNITIES POLICY

The Charity is committed to promoting equal opportunities in employment. Applications for employment by disabled people are always fully considered, bearing in mind the aptitudes of the applicant concerned and any reasonable adjustment in line with the Equality Act 2010. We seek to support disabled people applying for employment and will consider their application as fairly and fully as possible. Every reasonable effort is made to ensure that, if a member of staff becomes disabled during their employment with the Charity, their employment continues and additional training and support is provided.

It is the policy of the Charity that members of staff receive equal treatment regardless of disability. Training, career development and promotion of disabled people will, as far as possible and with any reasonable adjustment, be identical to that of other employees.

TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors for the purposes of English company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 14

UJIA

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Charities Act 2011, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the Trustees at the date of this report is aware, there is no relevant audit information of which the Charity’s auditor is unaware. Each Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.

AUDITORS

Haysmacintyre LLP have indicated their willingness to be reappointed as statutory auditor. This report, which incorporates the Strategic Report, was approved by the Board of Trustees on 27 May 2021.

Louise Jacobs, Chairman

ANNUAL REPORT & FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 15

UJIA

ANNUAL REPORT & FINANCIAL STATEMENTS

TRUSTEES:

SOLICITORS:

Louise Jacobs (Chairman)

Rafi Addlestone

Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH

Melvin Berwald

Karen Goodkind

Bryan Cave Leighton Paisner LLP Governors’ House 5 Laurence Pountney Hill London EC4R 0HH

Ruth Green (resigned 18 March 2021)

BANKERS:

Steven Kaye

Marc Lester

Barclays Bank Plc 54 Lombard Street London ECV 9EX

Brian May

Jonathan Morris

Hilton Nathanson

Bank Igud - Union Bank of Israel Diamond Centre Building Rechov Jabotinsky 3 Ramat Gan Israel

Warren Persky

AUDITORS:

David Pliener (appointed 18 March 2021)

Miles Webber

Nici Wertheim

Haysmacintyre LLP Chartered Accountants 10 Queen Street Place London EC4R 1AG

CHIEF EXECUTIVE:

REGISTERED OFFICE:

Mandie Winston

1 Torriano Mews London NW5 2RZ

STATEMENT OF FINANCIAL ACTIVITIES | 30[TH] SEPTEMBER 2020 16

UJIA

STATEMENT OF FINANCIAL ACTIVITIES

----- Start of picture text -----
INCOME AND EXPENDITURE
Unrestricted Funds Restricted Funds Total 2020 Total 2019
INCOME FROM: Notes 2020 £’000 2020 £’000 £’000 £’000
Voluntary Income
Donations 4,384 2,211 6,595 7,091
Tax refunds 206 - 206 309
Legacy Income 1,021 159 1,180 2,122
Investment Income
Income from trading subsidiaries (net) 2 116 - 116 80
Bank interest received 95 - 95 70
Other Income 22 - 22 108
Total Income 5,844 2,370 8,214 9,780
EXPENDITURE ON:
Raising Funds 1,605 21 1,626 1,762
CHARITABLE EXPENDITURE ON ISRAEL PROGRAMMES
Galil Initiatives
Educational Infrastructure (Capital Projects) 3 87 149 236 460
Educational programmes 3 488 313 801 2,053
Social Welfare & Medical programmes 3 11 - 11 107
Employment & Small Business programmes 3 77 13 90 82
Other Programmes in Israel
Educational Infrastructure (Capital Projects) 3 402 910 1,312 82
Educational programmes 3 354 564 918 720
Social Welfare & Medical programmes 3 10 24 34 212
Employment & Small Business programmes 3 23 22 45 76
CHARITABLE EXPENDITURE ON UK PROGRAMMES
Educational programmes 3 1,914 231 2,145 2,047
Israel Experience 3 108 139 247 948
Research & Evaluation 3 65 - 65 55
Living Bridge Programmes 3 - - - 97
Community Education & Awareness 3 871 97 968 981
Welfare 3 17 9 26 21
Total expenditure 4 6,032 2,492 8,524 9,703
NET (EXPENDITURE)/INCOME FOR THE YEAR (188) (122) (310) 77
Reconciliation of funds:
Funds brought forward at 1 October 2019 4,101 2,223 6,324 6,247
Funds carried forward at 30 September 2020 3,913 2,101 6,014 6,324
----- End of picture text -----

There are no gains or losses other than as shown above. All activities are continuing. Comparative figures for restricted and unrestricted income and expenditure for the Statement of Financial Activities are shown in note 16.

The notes on pages 19 to 30 form part of these financial statements

COMPANY NUMBER: 3295115 | BALANCE SHEET | 30[TH] SEPTEMBER 2020

UJIA

17

BALANCE SHEET

----- Start of picture text -----
30 Sept 30 Sept
Notes £’000 2020 £’000 £’000 2019 £’000
TANGIBLE FIXED ASSETS 7 66 101
SOCIAL INVESTMENTS 8 454 413
CURRENT ASSETS
Debtors 10 1,248 2,199
Cash at Bank and in hand 8,359 8,174
9,607 10,373
CREDITORS amounts falling due within one year 11 (3,657) (4,009)
NET CURRENT ASSETS 5,950 6,364
CREDITORS amounts falling due after more than one year
Pension Deficit Reduction Contributions 15 (456) (554)
NET ASSETS LESS TOTAL LIABILITIES 6,014 6,324
REPRESENTED BY
Unrestricted funds 12
- General 3,193 3,176
- Designated 720 925
3,913 4,101
Restricted funds 12 2,101 2,223
6,014 6,324
----- End of picture text -----

Approved and authorised for issue by the Trustees on 27 May 2021 and signed on their behalf:

Louise Jacobs

Warren Persky

The notes on pages 19 to 30 form part of these financial statements

CASH FLOW STATEMENT | 30[TH] SEPTEMBER 2020 18

UJIA

CASH FLOW STATEMENT

----- Start of picture text -----
2020 2019
£’000 £’000
Reconciliation of net outgoing resources to net cash inflow / (outflow) from operating activities
Net income (310) 77
Depreciation 56 56
Interest received (95) (70)
(Increase) / Decrease in debtors 951 (105)
Increase/ (Decrease) in creditors (352) 254
Increase/ (Decrease) in long term liabilities (98) 98
Net cashflow from operating activities 152 114
Net cashflow from operating activities 152 114
Cash flow from investing activities
Bank interest received 95 70
Sale/ (Purchase) of fixed assets (21) -
Social Impact Investments (41) (280)
Net change in cash and cash equivalents in the period (185) (96)
Cash and cash equivalents at the beginning of the period 8,174 8,270
Cash and cash equivalents at the end of the period 8,359 8,174
----- End of picture text -----

The notes on pages 19 to 30 form part of these financial statements

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 19

UJIA

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

(a) Statement of compliance and Basis of Accounting

The financial statements are prepared under the historical cost convention which is consistent with the prior year. The format of the financial statements has been presented to comply with the Companies Act 2006, Charities Act 2011, FRS102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (“SORP 2019”). The Charity is a Public Benefit Entity as defined by FRS102.

The Charity purchased the share capital of Design & Promotions Limited (now renamed “UJ Events Plus Limited) on 1 April 1999 for a consideration of £26. The share capital of UJIA Legacy Services Limited was acquired on 26 March 2012 for a consideration of £1. In the opinion of the Trustees, the activities of both companies are immaterial to the group as a whole and therefore consolidated financial statements have not been prepared. The companies’ results and net asset position at 30 September 2020 are set out in note 2 below.

(b) Going concern

Having assessed the Charity’s financial position, its plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. This assessment has been based on the review of budgets and forecasts prepared to cover a period in excess of 12 months from the date the accounts are approved. This assessment has considered the risks and uncertainties faced by the charity such as the continued impact of the Covid-19 pandemic.

(c) General information

The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 3295115) and a charity registered in England and Wales (charity number: 1060078) and Scotland (charity number: SC 039181). The Charity’s registered office address is 1 Torriano Mews, London NW5 2RZ.

(d) Income

Income is included in the SOFA when the charity is legally entitled to the income, receipt is probable and the amount can be measured reliably.

i) Donation income Is typically accounted for on a receipts basis.

ii) Income from Gift Aid is recognised on an accruals basis, in line with the recognition of the underlying donation. iii) Pecuniary legacies are recognised once probate has been granted and notification of entitlement has been received. Residuary legacies are recognised when probate is granted and there is sufficient information to value them and any conditions attached to the legacy are either within the control of the charity or have been met. iv) Interest received is accounted for on an accruals basis.

(e) Expenditure

Expenditure is recognised as soon as the related liability is incurred and has been classified under headings that aggregate all costs relating to that category. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the expenditure.

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 20

UJIA

Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s).

Expenditure on raising funds comprises trading costs, fundraising costs and finance costs. Finance costs comprise interest payable and depreciation.

Expenditure on charitable activities comprises

i) Charitable grants in respect of Israel programmes as set out in note 3; ii) U.K. Programmes implemented by the Charity as set out in note 3;

iii) Education & Communal awareness programmes to raise awareness and inform the public about the work of the Charity; iv) Allocations to institutions participating in the Kol Nidre Appeal; and v) Sundry Welfare payments.

Restricted fund expenditure represents funds passed on to other organisations in satisfaction of the specific criteria under which they were raised.

Support costs represent indirect costs relating to raising funds and the Charity’s charitable activities. Support costs, including governance costs, are allocated to activities on bases that represent the Trustees’ best estimate of actual use. The bases used to allocate costs to the above categories of expenditure are set out in note 5.

Governance costs comprise the costs of running the charity, including strategic planning for its future development, auditors’ remuneration, certain legal costs and all costs of complying with constitutional and statutory requirements, such as costs of Board meetings and of preparing the statutory accounts. In accordance with the provisions of SORP 2019, governance costs are now included within support costs.

Staff costs are allocated according to the functions of staff as well as an estimate of the time spent by them in promoting the programmes of the Charity.

(f) Grants Payable Policy

Grants payable are charged when the offer is conveyed to the recipient and all the conditions attaching to these grants are fulfilled. In the case where grants payable are dependent on donations receivable, the grant payable does not become a commitment until the donation is received.

(g) Tangible Fixed Assets and Depreciation

Tangible fixed assets are initially recognised at cost. Items of furniture, apparatus and equipment, and desk or laptop computers, costing less than £2,000 are charged against income in the year of purchase. Assets with a cost of £2,000 or more are capitalised and stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on a straight-line basis over its expected useful life as follows:

Freehold Premises 2% Leasehold Premises over life of lease Computer Equipment between three and six years Assets under Finance Lease over life of lease

The carrying values of tangible fixed assets are reviewed for impairment in accordance with the requirements of FRS102.

(h) Social Investments

Social Impact Investments are programme related loans which are initially recognised at the amount paid. The carrying amount is adjusted in subsequent years to reflect repayments and any accrued interest and adjusted if necessary for any impairment.

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 21

UJIA

(i) Financial instruments

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

Debtors and creditors

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure.

Bank borrowings

Liabilities for borrowings which are subject to a market rate of interest are measured at the value of the amount advanced, less capital repayments.

(j) Leasing

Assets obtained under finance leases and hire purchase contracts are capitalised in the balance sheet and depreciated over their estimated useful lives. The interest element of the rental obligations is charged to the Statement of Financial Activities over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.

(k) Investments

Investments are included at market value at the balance sheet date. The investments are considered to be fully impaired when they are received with sales restrictions or a reliable valuation cannot be obtained.

Any realised and unrealised gains and losses on revaluation or disposals are combined in the statement of financial activities. Income from investments is included in the year in which it is received.

(l) Pensions

Contributions to the Zionist Federation Staff Pension Scheme defined contribution pension scheme and to employees’ personal pensions are recognised as expenditure when they fall due. The Zionist Federation Staff Pension Scheme (ZFSPS) is a multi-employer defined benefit scheme for which the Charity’s share of the underlying assets and liabilities cannot be separately identified. This scheme is therefore accounted for as a defined contribution scheme in accordance with section 28 of FRS102.

Service costs, curtailments, settlement gains and losses, net financial returns and remeasurement gains and losses are included in the Statement of Financial Activities in the year to which they relate.

Changes in the assets and liabilities of the scheme in the year are disclosed and allocated as follows:

The assets, liabilities and movements in the surplus or deficit of the scheme are calculated by qualified independent actuaries as an update to the latest full actuarial valuation.

Details of the scheme assets and liabilities and major assumptions are shown in note 15.

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 22

UJIA

(m) Foreign exchange

Exchange differences on US Dollar or Israeli Shekel balances held at the end of the financial year for projects pending transfer are treated as charitable expenditure.

(n) Taxation

As a registered charity within the definition of Section 2020 of the Corporation Tax Act 2010, the charity is exempt from taxation on the surpluses generated by its charitable activities. Irrecoverable VAT is not separately analysed and is charged to the SOFA when the expenditure to which it relates is incurred and is allocated as part of the expenditure to which it relates.

(o) 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.

Designated funds comprise funds that have been set aside at the discretion of the Trustees for specific purposes. The purpose and use of the designated unrestricted funds are set out in the notes to the accounts.

Restricted income funds comprise unexpended balances of donations and grants held in trust to be applied for specific purposes.

2. INCOME FROM SUBSIDIARY COMPANIES

The results of the Charity’s subsidiary, UJ Events Plus Limited, which is not consolidated (see note 1(a)), are as follows:

----- Start of picture text -----
2020 2019
£’000 £’000
Turnover 214 368
Less: Cost of sales (81) (257)
Net Operating income 133 111
Less: Administrative expenses (17) (31)
116 80
Add: Other income - -
Operating profit 116 80
Deed of Covenant payments to UJIA (116) (80)
Retained profit for the year retained in subsidiary - -
Retained profit brought forward - -
Retained in subsidiary - -
----- End of picture text -----

At the balance sheet date, the net assets of UJ Events Plus Limited amounted to £27.

UJIA Legacy Services Ltd, which is not consolidated, had no income or expenditure in 2020. It was wound up as at 31 December 2020. At the balance sheet date there were net assets of £1.

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

23

UJIA

3. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

----- Start of picture text -----
Other Charitable Support & Total Total
Grants expenses Governance costs 2020 2019
ISRAEL PROGRAMMES £’000 £’000 £’000 £’000 £’000
Galil Initiatives
Educational Infrastructure 177 51 8 236 460
(Capital Projects)
Educational programmes 750 27 24 801 2,053
Social Welfare & Medical programmes 11 - - 11 107
Employment & Small Business programmes 82 8 - 90 82
Other Programmes in Israel
Educational Infrastructure 1,224 12 76 1,312 82
(Capital Projects)
Educational programmes 860 11 47 918 720
Social Welfare & Medical programmes 30 2 2 34 212
Employment & Small Business programmes 41 2 2 45 76
UK PROGRAMMES
Educational programmes 1,032 744 369 2,145 2,047
Israel Experience 72 117 58 247 948
Research & Evaluation - 44 21 65 55
Living Bridge Programmes - - - - 97
Community Education & Awareness 227 741 - 968 981
Welfare 26 - - 26 21
4,532 1,759 607 6,898 7,941
----- End of picture text -----

All funds allocated by the Charity for expenditure in Israel are restricted to projects within its internationally recognised borders. Support costs mainly represent staff related expenditure.

Comparative figures for 2019 as are as follows:

----- Start of picture text -----
Grants Other Charitable expenses Support & Governance costs Total 2019
ISRAEL PROGRAMMES £’000 £’000 £’000 £’000
Galil Initiatives
Educational Infrastructure (Capital Projects) 446 (8) 22 460
Educational programmes 1,988 (35) 100 2,053
Social Welfare & Medical programmes 61 41 5 107
Employment & Small Business programmes 80 (2) 4 82
Other Programmes in Israel
Educational Infrastructure (Capital Projects) 80 (2) 4 82
Educational programmes 694 (9) 35 720
Social Welfare & Medical programmes 194 8 10 212
Employment & Small Business programmes 51 21 4 76
Absorption & Victim Support - - - -
UK PROGRAMMES
Educational programmes 1,018 666 363 2,047
Israel Experience 21 556 171 948
Research & Evaluation - 45 10 55
Living Bridge Programmes - 79 18 97
Community Education & Awareness 324 657 - 981
Welfare 21 - - 21
5,178 2,017 746 7,941
----- End of picture text -----

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 24

UJIA

The number of grants to institutions in the year was 113 (2019 – 132) and values were as follows.

----- Start of picture text -----
2020 2019
£’000 £’000
UJIA Israel 1,047 831
Aleh 794 -
Jewish Agency for Israel 787 749
Union of Jewish Students 118 77
Federation of Zionist Youth 105 171
King David High School Manchester 103 125
Karmiel Youth Village 93 135
B’nei Akiva 83 164
RSY Netzer 71 111
Maccabi GB 67 103
NOAM 57 62
Amit Mischon School in Hatzor 50 30
Danciger High School 47 89
Atidim 30 120
Equaliser 7 30
Bell Scholarships for Tel Hai University - 230
Dror Educators Kibbutz in Akko - 219
Netiv Tefachot Dormitories - 112
Other grants and bursaries 1,073 1,745
4,532 5,178
----- End of picture text -----

A full list of grants made to institutions of £1,000 and above is available on request from the registered office of the Charity. It should be noted that the grant to UJIA Israel in 2020 included funds for charitable activities in 2019 which had not been granted to them by the time that 2019 accounts had been signed.

4. SUPPORT & GOVERNANCE COSTS

----- Start of picture text -----
Staff Other Total Total
Costs Costs 2020 2019
£’000 £’000 £’000 £’000
Raising Funds 887 739 1,626 1,762
Charitable activities 1,571 5,327 6,898 7,941
2,458 6,066 8,524 9,703
----- End of picture text -----

Included in other costs are audit fees of £28,752 (2019 £23,040).

Operating lease payments during the year were £237,500 (2019: £250,000). Foreign exchange losses (2019 - gains) during the year were £25,000 (2019: (£104,000)).

Comparative figures for 2019 are as follows:

----- Start of picture text -----
Staff Other Total
Costs Costs 2019£’000
£’000 £’000
Raising Funds 881 881 1,762
Charitable activities 1,648 6,293 7,941
2,529 7,174 9,703
----- End of picture text -----

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

25

UJIA

5. STAFF COSTS AND NUMBERS & COSTS OF KEY MANAGEMENT PERSONNEL

----- Start of picture text -----
2020 2019
Staff costs comprise the following: £’000 £’000
Salaries 2,143 2,197
National insurance 210 217
Pension scheme contributions 105 115
2,458 2,529
----- End of picture text -----

Redundancy payments of £95,000 (2019 - £100,000) were made during the year. Staff related costs including recruitment

were £78,000 (2019 £68,000).

The average total number of staff during the year, including those who worked part-time and maternity cover was 61 (full-time equivalent 44) (2019 was 58 - full time equivalent 51). No provision has been made for accrued holiday pay since the amounts involved were not material.

The number of employees whose earnings in the year in relation to time spent on the Charity’s affairs exceed the equivalent of £60,000 p.a. excluding pension contributions was:

----- Start of picture text -----
2020 2019
£’000 £’000
- -
£60,000 - £70,000
£70,000 - £80,000 1 2
£80,000 - £90,000 2 2
£90,000 - £100,000 1 -
£100,000- £110,000 2 1
£110,000 - £120,000 - 2
£140,000 - £150,000 2 1
----- End of picture text -----

The total pension contributions for those earning in excess of £60,000 in the year was as follows:

£’000
Under money purchase schemes(5people): 29
Under fnal salaryschemes: -
29

Staff costs are allocated according to the functions of the staff and form part of UK Educational programmes, Fundraising and Support, as appropriate.

The Charity considers that its key Management personnel comprise its Trustees and Senior Management Team. The total employer benefits including employer NIC, and pension contributions paid to the Senior Management Team were £607,000 (2019 - £651,000).

The Charity has an insurance policy that protects the Charity from losses arising from the negligence or default of its Trustees and Officers by indemnifying the charitable funds against the consequences of such neglect or default. The cost to the Charity of this insurance for the year was £4,726 (2019 - £4,004).

6. DIRECTORS’ EMOLUMENTS

No remuneration or re-imbursement of expenses were paid to the Trustees during the year (2019- £Nil).

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

26

UJIA

7. TANGIBLE FIXED ASSETS

----- Start of picture text -----
Freehold Leasehold Computer Equipment
Property Property & Software Total
2020 2020 2020 2020
£’000 £’000 £’000 £’000
Cost
As at 1 October 2019 80 262 324 666
Additions - - 21 21
Disposals - - - -
As at 30 September 2020 80 262 345 687
Depreciation
As at 1 October 2019 32 209 324 565
Charge for year 2 53 1 56
Disposals - - - -
As at 30 September 2020 34 262 325 621
Net Book Value as at 30 September 2020 46 - 20 66
Net Book Value as at 1 October 2019 48 53 0 101
----- End of picture text -----

Freehold property represents the Charity’s office in Leeds.

8. SOCIAL INVESTMENTS

----- Start of picture text -----
2020 2019
£’000 £’000
Koret Economic development Fund for Ethiopian Community 86 86
Jindas Urban renewal in Lod - -
Desert 19 bookkeeping service 31 42
Lev19 bookkeeping service in Tsfat 39 42
Games for Peace 34 37
Enosh 66 85
Ampersand 85 85
Lotus Ussefiya 57 -
Hadarim Equity 56 -
Beit Issy Shapiro - 36
Total 454 413
----- End of picture text -----

Social Impact (Programme Related) Investment loans are approved after rigorous due diligence and approval by UJIA’s Si3 Committee and Trustees. These unsecured loans are normally repayable over a period of 3 to 5 years. Interest is charged at 2 to 5% per annum.

£’000
Amounts repayable within oneyear 48
Amounts repayable after oneyear 406
454

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

27

UJIA

9. OPERATING LEASE COMMITMENTS

----- Start of picture text -----
2020 2019
£’000 £’000
At 30 September 2020 the total of the future minimum lease payments are:
Land and buildings:
Not later than one year 237 250
Later than one year and not later than five years 250 250
Total 487 500
----- End of picture text -----

10. DEBTORS

----- Start of picture text -----
2020 2019
£’000 £’000
Accrued legacy income 713 1,521
Amount due from trading subsidiary companies 116 80
Other debtors & prepayments 419 598
Total 1,248 2,199
----- End of picture text -----

11. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR

----- Start of picture text -----
2020 2019
£’000 £’000
Jewish Philanthropic Association for Israel and the Middle East 2,274 2,533
Amount due to trading subsidiary companies 79 22
Other creditors 1,049 490
Other taxation and social security 55 45
Pension deficit reduction contributions (see note 16) 104 87
Accruals and deferred income 96 832
Total 3,657 4,009
----- End of picture text -----

12. ANALYSIS OF MOVEMENT IN RESTRICTED FUNDS

----- Start of picture text -----
Balance B/fwd. Income Expenditure during Closing balance
PROJECT NAME 1 Oct 2019 during year year 30 Sept 2020
£’000 £’000 £’000 £’000
Israel programmes
Bell Scholarships (Tel Hai) 478 - (5) 473
Danciger High School 67 6 - 73
Neve Michael Youth Village 84 - - 84
Zefat Nursing School 311 50 (39) 322
Western Galilee College 93 27 (13) 107
Legacy for forestry 101 - (3) 98
Kiryat Bialik 50 - (50) -
Carmiel Children’s Village - 155 (57) 98
Other Israel projects (including fundraising) 526 1,180 (1,397) 309
UK programmes
Mamlock House Fund 266 - (14) 252
Ashdown Fellows 70 - (21) 49
Birthright Programme 58 40 (32) 66
JAFI Youth Movement support - 470 (470) -
Reshet 50 74 (103) 21
Other UK programmes 69 278 (305) 42
2,223 2,280 (2,509) 1,994
----- End of picture text -----

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

28

UJIA

13. ALLOCATION OF FUNDS

----- Start of picture text -----
Unrestricted Funds Restricted Funds Total Funds
£’000 £’000 £’000
Fixed Assets 66 - 66
Social Investments 454 - 454
Net current assets 3,956 1,994 5,950
Creditors due after one year (456) (456)
4,020 1,994 6,014
Comparative figures for 2019 are as follows:
Unrestricted Funds Restricted Funds Total Funds
£’000 £’000 £’000
Fixed Assets 101 - 101
Social Investments 413 - 413
Net current assets 4,141 2,223 6,364
Creditors due after one year (554) (554)
4,101 2,223 6,324
----- End of picture text -----

Restricted funds comprise funds provided by the donor for a specific purpose or in support of a specific project. Information about some of the projects currently being supported are provided in the Report of the Trustees and further information can be made available upon request from our Registered Office.

Unrestricted funds comprise general donations which can be used at the discretion of the Trustees in accordance with the general aims and objectives of the Charity. These include funds which have been separately identified and designated by the Trustees for specific projects of £720,000. These include £672,000 earmarked for projects in Israel, the nature of which has yet to be determined. The balance is for specific projects that have been approved by the Trustees.

The movement in designated funds was as follows:

----- Start of picture text -----
2020 2019
£’000 £’000
Opening balance 925 1,002
Received 422 423
Remitted (627) (500)
Closing Balance 720 925
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14. RELATED PARTY TRANSACTIONS

Two Trustees of UJIA are Trustees of UJIA Israel, and UJIA staff act in a supervisory capacity as part of the financial control process in UJIA Israel. UJIA does not have control over UJIA Israel since UJIA acts in a supervisory capacity only. Some UJIA Israel staff act as agents of UJIA in monitoring the implementation of programmes in Israel. During the year, grants were made of £1,047,000 (2019 - £831,000) towards UJIA Israel’s monitoring and core programme costs. At 30 September 2020, UJIA owed UJIA Israel £45,116 (2019: £38,918) in respect of operational costs.

No payments were made to Trustees in the year for professional services. One Trustee, Jonathan Morris, is a partner in Bryan Cave Leighton Paisner LLP which did not provide any service to the Charity in the year.

During the year, individual Trustees donated a total of £119,435 (2019 - £133,544) to the Charity.

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020 29

UJIA

15. PENSION SCHEME COSTS

The Charity participates in a multi-employer final salary pension scheme, the Zionist Federation Staff Pension Scheme (“ZFSPS”). As a result it is not possible to identify the assets and liabilities of the scheme that are attributable to the Charity. The Charity also provides pensions for other pensioners who are not covered by formal pension arrangements.

The last report by the actuary of the ZFSPS covered the period to 6 April 2020. The valuation report stated that the market value of the entire scheme’s assets was £12,608,000 and that this represents 87% of the funding level required by the scheme. The report recommended a normal contribution rate of 44% for employers.

The Charity has recognised a provision in these financial statements, for additional special (deficit reduction) contributions to cover a potential deficit in the ZFSPS. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement relating to the deficit. The present value is calculated using a discount rate of 1%, which represents the interest rate available to the charity rounded up to the nearest whole per cent. The liability is shared with the Jewish Philanthropic Association for Israel & the Middle East (“JPAIME”) which is responsible for funding the pensions of those pensioners who were deferred and did not become employees of UJIA when the Charity started operations in January 1997.

The movements on the provision are:

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2020 2019
£’000 £’000
Provision at start of period 641 756
Deficit contributions paid (104) (104)
Unwinding of discount factor 1 1
Remeasurement due to change in contributions (22) (12)
560 641
Split as follows:
Due within one year 104 87
Due after one year 456 554
560 641
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Other organisations also contribute to the deficit funding agreement and the net present value of their contributions has been included in these accounts. The amounts for these included within other debtors and prepayments are £358 (2019: £472).

The UJIA also contributes to individual money purchase schemes for eligible staff members. The charge in the accounts represents normal contributions payable to the ZFSPS fund of £19,000 (2019: £20,000) and to the money purchase schemes of £101,000 (2019: £76,000).

NOTES TO THE FINANCIAL STATEMENTS | 30[TH] SEPTEMBER 2020

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UJIA

16. COMPARATIVE FIGURES FOR PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

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INCOME AND EXPENDITURE
Unrestricted Funds Restricted Funds Total 2019
INCOME FROM: Notes 2019 £’000 2019 £’000 £’000
Voluntary Income
Donations 4,612 2,479 7,091
Tax refunds 309 - 309
Legacy Income 2,122 - 2,122
Investment Income
Income from trading subsidiaries (net) 2 80 - 80
Bank interest received 70 - 70
Other income 108 - 108
Total Income 7,301 2,479 9,780
EXPENDITURE ON:
Raising Funds 1,734 28 1,762
CHARITABLE EXPENDITURE ON ISRAEL PROGRAMMES
Galil Initiatives
Educational Infrastructure (Capital Projects) 224 236 460
Educational programmes 1,324 729 2,053
Social Welfare & Medical programmes 33 74 107
Employment & Small Business programmes 82 - 82
Other Programmes in Israel
Educational Infrastructure (Capital Projects) 82 - 82
Educational programmes 167 553 720
Social Welfare & Medical programmes 39 173 212
Employment & Small Business programmes 76 - 76
CHARITABLE EXPENDITURE ON UK PROGRAMMES
Educational programmes 1,873 174 2,047
Israel Experience 753 195 948
Research & Evaluation 55 - 55
Living Bridge Programmes 97 - 97
Community Education & Awareness 885 96 981
Welfare - 21 21
Total expenditure 4 7,424 2,279 9,703
NET (EXPENDITURE)/INCOME FOR THE YEAR (123) 200 77
Reconciliation of funds:
Funds brought forward at 1 October 2018 3,936 2,311 6,247
Movement between funds 288 (288)
Funds carried forward at 30 September 2019 4,101 2,233 6,324
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INDEPENDENT AUDITORS’ REPORT | TO THE MEMBERS OF THE UNITED JEWISH ISRAEL APPEAL | 30[TH] SEPTEMBER 2020

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UJIA

INDEPENDENT AUDITORS’ REPORT

We have audited the financial statements of the United Jewish Israel Appeal for the year ended 30 September 2020 which comprise Statement of Financial Activities, the Balance Sheets, the Cash Flow Statement 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 charity 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.

RESPONSIBILITIES OF TRUSTEES FOR THE FINANCIAL STATEMENTS

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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.

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.

UJIA INDEPENDENT AUDITORS’ REPORT | TO THE MEMBERS OF THE UNITED JEWISH ISRAEL APPEAL | 30[TH] SEPTEMBER 2020

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CONCLUSIONS RELATING TO GOING CONCERN

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

OTHER INFORMATION

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:

INDEPENDENT AUDITORS’ REPORT | TO THE MEMBERS OF THE UNITED JEWISH ISRAEL APPEAL | 30[TH] SEPTEMBER 2020

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UJIA

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, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 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)

For and on behalf of Haysmacintyre LLP, Statutory Auditors 27 May 2021

10 Queen Street Place London EC4R 1AG