OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

New Israel Fund 2021 Audited Accounts & Annual Report

The New Israel Fund UK is a community for a just, equal, and secure Israel. Together we fund, develop and connect impactful organisations and inspiring leaders to defend democracy and deliver a fairer society for all living in Israel. Equality We embody Arab-Jewish partnership and enable those advocating and advancing a genuinely shared society. Justice We work to realise Israel's founding vision of 'liberty, justice, and peace". Our partners and grantees address the challenges which threaten democracy and human rights. Community We connect people through shared values and passion. I nspired by Jewish culture to fight for the rights of all communities in Israel, we welcome everyone tojoin us. 2021 brought both challenges and opportunities. Violence in Jerusalem, Gaza and within Israel's mixed cities reminded us of civil society's crucial role in calming community tensions and creating longer-lasting Arab-Jewish partnership. A shift in government, which for the first time includes an Arab party, has been seen to embrace law makers who share our values. With your support, important work has started to address entrenched inequalities between Israel's Jewish and Palestinian citizens. We and our partners will continue working with and putting pressure on Israel's leaders to create a fairer society for all living in Israel.

Our work Advancing Arab-Jewish Partnership We model and create meaningful Arab-Jewish partnership. We fund organisations and develop leaders building a genuinely shared society. Defending Democracy and Human Rights We protect and advance rights and freedoms, including freedom of expression and protest. Our grantees make sure laws are upheld and safeguard democratic institutions. We challenge abuse of power within Israel and across the Occupied Palestinian Territories. Improving Israel for All We protect and provide for Israel's minorities and marginalised communities in Israel. These include refugees, women, LGBTQ+ people, those who are economically disadvantaged, and groups affected by religious coercion. To read more visit newisraelfund.org.uk12022

  1. Our Impact in Numbers £832,000 to NIFS core work (up £57,000 on 2020) £2.35 million to Israeli organisations defending democracy and advancing equality supported 115 inspiring organisations Our training centre Sh8til developed 1,800 leaders 5,775 hours of advice and guidance to social change organisations 3,338 donations from 985 supporters Current & Creative Programming We engaged over 4,000 people in 2021, embracing a digital approach to programming while welcoming back in-person opportunities. Our hybrid Wuman Rights Awards engaged 750 guests and raised over £500,000. We developed 4 virtual on the ground tours with our global colleagues, bringing thousands of viewers together worldwide. We are proud to have sponsored numerous high calibre cultural events that highlight NIFS work and the issues we address.

Arab-Jewish Partnership Collaborating for Change The Israeli government recently allocated an unprecedented £7 billion of funding to close the gaps between Jewish and Palestinian citizens of Israel. This was due in large part to the work of our core grantees, among them Sikkuy-Aufoq, who we seed funded 30 years ago and with whom we continue to partner. The next generation of leaders To celebrate NIF UKS 25th anniversary you invested in and nurtured the next generation of Arab and Jewish leaders. A third of the 25th Anniversary Fund went to Shatil s programme growing the capacity of 34 Palestinian civil society organisations and their leaders. These organisations and leaders will be better equipped to work together with other Israeli NGOS and seek government funding to address issues such as deprivation, crime and gender-based violence. Defending Democracy & Human Rights Online protection from hate & incitement Experts at Fake Reporter successfully uncovered 20 social media groups planning violent attacks against Palestinian citizens of Israel during the unrest in May 2021 . The organisation works to stop disinformation and hate speech online. Vaccines in the Occupied Territories We secured 120,000 Covid-19 vaccines for Palestinians in the Occupied Territories.

Israel For All Housing Following years of campaigning, the government has approved 4,700 new subsidised homes each year for the next decade. These units will house the most vulnerable Israeli citizens. Education for asylum seeker children There are roughly 28,000 asylum seekers who have sought safety in Israel. Over the years their children have faced segregation and poor educational standards compared to their Israeli peers. This year several legal victories will mean children from the asylum seeker community can now attend mainstream Israeli schools.

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

NEW ISRAEL FUND

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Registered Company Number: 03296825 (England and Wales) Registered Charity Number: 1060081

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS Pages
Trustees’ report 1-10
Independent auditor’s report 11-14
Statement of Financial Activities 15
Balance sheet 16
Statement of cash flows 17-18
Notes to the financial statements 19 - 30
Reference and administrative information 31

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

TRUSTEES’ REPORT

Board of Trustees

The Board of Trustees (who are also individually members of the Company) is required to conduct the affairs and the general business of the New Israel Fund and meets regularly. The Articles of Association provide that one third of the Trustees must retire at each Annual General Meeting (AGM). Persons being appointed or re-appointed must be recommended to the Board or proposed by a Company member and not less than 14 or more than 35 days before the date of the AGM together with a notice of willingness to be appointed or re-appointed signed by the proposed Trustee.

During the year the Board comprised:

Clive Sheldon QC (Retired 29 April 2021) Paul Amit Lance Blackstone Julie Blane Paul Burger Hannah Brady (Appointed 2[nd] February 2021) Sir Trevor Chinn CVO (Retired 20[th] April 2021) John Cohen Noeleen Cohen (Appointed 30[th] April 2021) Jane Grabiner Suzanne Jacobs Martin Paisner CBE Sarah Peters Dana Segal (Appointed 2[nd] February 2021) Dr Juliet Stevens Noam Tamir (Retired 6[th] December 2021)

1

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

PRINCIPAL GOALS AND ACTIVITIES OF THE NEW ISRAEL FUND

The New Israel Fund UK is a community for a just, equal , and secure Israel . Together we fund, develop, and connect impactful organisations and inspiring leaders to defend democracy and deliver a fairer society for all living in Israel .

New Israel Fund UK is an independent charity registered in England and Wales that is part of an international philanthropic partnership. NIF UK raises funds to make grants in support of the work of NIF, Shatil and our grantees in Israel.

NIF is more than a funder. NIF has created, developed, and funded hundreds of impactful organisations. Through Shatil we nurture, train and support inspiring leaders, and build coalitions of Israeli organisations to protect and provide for Israel’s marginalised and minority communities.

We engage a growing community of supporters in the UK with our work and shared vision and values. We offer a much-needed space for passionate yet respectful discussion of the changes and challenges affecting Israel, Israelis and Palestinians. Through our funding of dozens of grantees, development of hundreds of leaders, and engagement of thousands of supporters, NIF directly engages over 20,000 people. The work we fund impacts and improves the lives of hundreds of thousands of Israelis and Palestinians.

Public Benefit

In setting the Fund’s objectives, the Trustees have paid due regard to the Public Benefit guidance published by the Charity Commission. Further information on the public benefit delivered during the year is included in the achievements and performance section of this report.

Aims and Objectives

2021 was the final year of a period working towards three Strategic Objectives to:

Since our inception in the UK, our grant making in Israel has provided £38 million to hundreds of important, inspiring and innovative organisations and projects. We also support NIF Israel leadership and capacity building programme, Shatil, who work to increase the impact of organisations and leaders building a just, democratic and shared society. Shatil provides consulting and training to social change organisations, builds coalitions and networks and advocates for policy-change.

2

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

Shatil is widely recognised as a leading player in the creation and growth of Israel’s vibrant civil society. Over the last decade, Shatil has annually provided more than 10,000 hours of capacitybuilding, consultation, and organising services to over 400 organisations, movements, and coalitions and trained 1,500 people.

NIF’s work in Israel has focused on six key issue areas:

3

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NIF’s Work and Impact in Israel in 2021

Throughout 2021 NIF, Shatil and our grantees have been determined in their defence of democracy and pursuit of justice and equality.

Housing and Health: we advanced equitable healthcare, expanded access to public housing, incubated the Public Housing Forum, and redressed health inequalities in the peripheries

Expanding public housing stock and accessibility . Following a three-year freeze on new public housing, in August 2021 the Housing and Construction Ministry released a plan for housing options for vulnerable populations including the purchase of 1,700 new apartments for public housing by 2023. This followed a campaign led by the Public Housing Forum, which included a protest outside Housing Minister Zev Elkin’s home and various Hebrew media appearances.

£150m (650m NIS) investment in Arab health sector : contributions from Physicians for Human Rights Israel, The Galilee Society, and Shatil-ledArab-Jewish Citizens Forum for the Promotion of Health in the Galilee. Nitzan Horowitz MK (Health Minister): “Our government is making a big change in its relations with the Palestinian-Israeli public … also expressed in budgets.”

Human rights: our work has curtailed police discrimination, ended one type of West Bank home invasion, fought evictions, curbed settle violence, and provided legal assistance to Palestinians

Shared society that is diverse, equal, and just: we progressed shared cities legislation, secured support for Arabic in public, reduced violence in marginalised communities, widened employment opportunities, countered gender and LGBT discrimination, and supported progressive Haredim. A partnership example was ACRI and Public Knowledge Workshop website for reporting hate crime.

Seeking political change: we held a conference on Jewish-Arab partnership with Haaretz and senior politicians and Shatil’s Centre for Policy Change enabling NGOs to engage with and influence from within rather than outside government. Shatil is bringing Jewish and Palestinian Israeli NGO directors together for its newest training course Adaptive and Innovative Management (AIM).

Closing social and economic gaps between Arab and Jewish communities , including through much better consultation and coordination with local leaders. See more here.

NIF’s fundraising this year offered two examples of the growing partnership between the global NIF community and Israelis. For the first time during a major appeal, more than half the funds raised for Bridge the Divide came from outside the USA, with Israel contributing the second highest figure and the UK third. In November, almost 2 million NIS was raised from thousands of Israelis during NIF Israel’s crowdfunding campaign. In 2021 one in five donors to NIF were Israeli, including Palestinian citizens of Israel.

4

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NIF’s Work and Impact in the UK in 2021

Entering a second year of limited in-person programming required us to create content that appealed to existing and new audiences. Our most successful online content was our virtual tours developed in ’ partnership with NIF in Australia, Canada, Israel and the USA, as well our two HRAD winner s videos.

Our response to the violence in April & May and the formation of an unprecedented coalition Government, connected the community here with Jewish and Arab leaders discussing current events whilst advancing our values. We hosted a session on the unprecedented number of women in Government with Francis Raday, Nabila Espanioly, and Elah Alkalay.

We created educational ‘explainer’ content in newsletters and on social media. When Ghaida Zoabi MK visited, alongside the event we recorded short videos expanding engagement opportunities and covering a broader range of topics (e.g. the role of the budget in reducing inequality).

We continued to deliver relevant and resonating webinars on current affairs, including on vaccine access for Palestinian; the Israeli elections; the situation in Israel’s mixed cities; the diversity of Israel’s new government; and ongoing challenges for Bedouin communities in the Negev.

Partnerships

We were more creative with partnerships, moving away from sponsoring individual events, instead looking at multiple opportunities to expand our reach and engage with justice and equality in Israel through culture. We didn’t always realise everything planned due to the uncertainty arising from the pandemic. However, this approach was fruitful and places us in a strong position for 2022.

Communities

We strengthened existing partnerships and invested in new community outreach. We were Finchley Progressive’s main Israel education partner and they raised over £7,000 for NIF. Crouch End Havura is a new partnership, with four sessions in 2021. We engaged hundreds of members at New London Synagogue, Alyth and Belsize Square, offering in-person and digital content delivered by our senior leadership.

NIF UK felt the impact of reduced enthusiasm for online programming. Together with limited opportunities for in-person programming, there was a drop from 8000 programming engagements in 2020 to 4,100 in 2021. We remain proud of the quality and volume of our UK programming in 2021.

5

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NIF’s Performance and Financial Outcome in 2021

Fundraising

In 2021 we raised £2.49m. This strong performance featured:

Utilisation of £100,000 of the surplus from 2020 which was designated for grants in 2021, and £230,561 of cash received in 2021 which is part of the accrued pledges reflected in the 2020 accounts (see note 9), enabled us to make grants totalling £2.35m (2020: £2.2m) to projects in Israel .

For the third consecutive year, we increased our direct support of NIF Israel’s core grants with £832,000 (2020: £775,000 | 2019: £675,000).

The New Israel Fund does not use any external or third-party fundraisers. No complaints were received about our fundraising activities.

Leadership and Strategy

2021 saw the completion of Adam Ognall’s ten-years as Chief Executive and Clive Sheldon’s six years as Chair. During their tenures, New Israel Fund UK significantly expanded its reach across the UK Jewish community, mobilising thousands of people and millions of pounds in pursuit of a more just and equal Israel. Noeleen Cohen (Chair) and David Davidi-Brown (CEO) took on their positions in June and July respectively and focussed on building on Clive and Adam’s excellent work, strengthening relationships with our key stakeholders, and scoping our priorities and plans for the next three years.

2021 also saw the completion of a trustee recruitment process focussed on finding more diverse voices to join our Board. Hannah Brady and Dana Segal bring community, events, communications, and fundraising expertise, whilst also bringing different perspectives to our work, including but not limited to how we thoughtfully engage with younger supporters.

The Board continued the development of its committee structure, particularly for Grants and Finance. At the end of 2021 we set a calendar for the Board to ensure more detailed oversight of specific areas comes before the Board make decisions and review progress on our strategic priorities.

6

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

Finances

With income of £2.486m in 2021 and expenditure of £2.829m, our audited accounts reflect a shortfall of £343k. 2020’s accounts accrued £266,485 of income pledged in 2020 that was received in 2021 with the remaining amount of £35,924 received in 2022 (see note 9). In 2020 we designated £100,000 to NIF Israel (see note 12) that was allocated from 2020’s £163k surplus. The net effect is that the difference between funds received and available in 2021 is a deficit of £12,439.

Charitable expenditure was £2.63m (2020: £2.47). Grants of £2.35m (2020: £2.2m) were made, enabling NIF UK to support over 110 grantees and programmes in Israel. The cost of generating funds was £200k (2020: £158k).

We are committed to ensuring the majority of funds raised goes directly to grants and charitable activities. We are pleased that 7% of spending in 2021 was on income generation. We plan a modest increase in our team that will enable us to increase our capacity to engage more people and raise significantly more funds.

We ended the year without expending our reserves despite having some significant one-off expenditure (recruitment and office refurbishment) and facilitating the return of all team members to working their full hours (compared to furlough and reduced hours during much of 2020).

Reserves Policy

The Board’s reserves policy is to maintain a minimum level of six months’ fixed operating costs considering the predominant risks to the organisation, specifically a fall in income. The minimum unrestricted reserve goal for 2021 was set at £200,000. At the end of 2021, funds carried forward totalled £581,889 of which £419,156 was unrestricted and £162,733 was restricted.

The Board has reviewed the current free liquid reserves of the Charity and considers that, in view of the anticipated expenditure plans over the next year, the level is sufficient.

Future Plans

We have agreed our three guiding priorities for 2022-2025:

  1. Income : Increase, broaden and diversify our income

  2. Compelling communications : be a storytelling organisation maximising digital tools and content

  3. Engagement : Deepen engagement with our supporters and reach new audiences

Building on previous success, the focus will be on:

7

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Trustee Recruitment, Induction and Training

New members of the Board are appointed by existing Trustees through an open recruitment process 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 AGM.

On appointment new Trustees undertake a detailed induction process. They receive our governance pack which provides relevant Charity Commission guides, a copy of the Memorandum and Articles of Association, a full set of the Charity’s Policies including the Trustee Terms of Reference, the current Strategic Plan, the latest Statutory Accounts and an outline of their duties and responsibilities. New Trustees meet with the Chair, the Chairs of Board Committees and Chief Executive to undertake the induction process. A tailored training programme is also developed for each trustee.

Organisation

The Board delegates responsibility for the day-to-day management of the Charity to the Chief Executive and Professional Team who report to the Board on the performance of the Charity. Trustees review financial and operational trends measured against the annually approved budget. Key Performance Indicators and Business Plans have been developed to assist this process and the board has an active committee structure to ensure full oversight of all areas of operation.

Remuneration of Key Management Personnel

The pay and remuneration of the charity’s Chief Executive is proposed by the Board Remuneration Committee and approved by the Board of Trustees, following the Chief Executive’s formal appraisal.

Principal Risks and Uncertainties

Risks are identified and reviewed under five key headings: governance and strategy; external; regulatory and compliance; financial; and operational. There are assessed and managed through a risk register that was reviewed by the Board in April 2021.

Key risks relate to leadership, operating processes, and the lingering impact of the pandemic. Measures were implemented to ensure a successful and smooth transition of lay and professional leadership. The previous work on trustee recruitment, allocation of responsibilities and strong committees continues to mitigate risks to the organisation of a potential lack of experience or expertise. In relation to fundraising and community engagement challenges arising during and after the pandemic, we have invested time and capacity in building and maintaining relationships with major donors and trusts, as well as diversifying our delivery of content to not solely rely on in-person activity. Our hybrid HRAD 2021 has given us experience and confidence in planning and offering

8

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

flagship fundraising events that can respond to the changing needs of our donors and the external situation.

The Board regularly reviews areas of risk across the range of the Charity’s activities. As well as the Risk Register, the annual budget and organisational planning processes include reviews and assessment of the possible risks to the Charity, the consequences of those risks and plans to mitigate their effects on the delivery of our charitable activities. The Board are notified of any significant changes in the risk to the organisation.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also the directors of New Israel Fund for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom 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 the application of resources, including the income and expenditure, of the company for that period. In preparing these financial statements, the Trustees are required to:

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 Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

9

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

RELEVANT AUDIT INFORMATION

Insofar as we are aware:

This report was approved by the Board of Trustees on 18[th] May 2022 and signed on its behalf by:

Noeleen Cohen Chair

10

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF NEW ISRAEL FUND

Opinion

We have audited the financial statements of New Israel Fund for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

11

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the directors’ report).

12

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF NEW ISRAEL FUND

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 9, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

13

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

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

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

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

Use of audit report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

Date : 27 May 2022

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

14

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND EXPENDITURE Unrestricted Restricted Total funds Total funds
Funds Funds 2021 2020
Note £ £ £ £
s
Income from:
Donations and legacies 2 769,327 1,710,321 2,479,648 2,769,990
Investments 4 69 - 69 343
Government grants (Covid 19) 6,451 - 6,451 16,673
----------------- ------------------- ------------------- -------------------
Total income 775,847 1,710,321 2,486,168 2,787,006
----------------- ------------------- ------------------- -------------------
Expenditure on:
Raising funds 6 (200,427) - (200,427) (157,810)
Charitable activities:
Israel Projects 5,6 (69,123) (2,349,849) (2,418,972) (2,247,741)
UK Programme 6 (209,471) - (209,471) (218,655)
------------------ ------------------- --------------------- ---------------------
(278,594) (2,349,849) (2,628,443) (2,466,396)
----------------- ----------------- --------------------- ---------------------
Total expenditure (479,021) (2,349,849) (2,828,870) (2,624,206)
----------------- ----------------- --------------------- ---------------------
Net income/(expenditure) 12 296,826 (639,528) (342,702) 162,800
Transfer between funds (387,466) 387,466 - -
Net movement in funds (90,640) (252,062) (342,702) 162,800
Fund balances brought forward at
1 January 2021 509,796 414,795 924,591 761,791
---------------- ----------------- ------------------- -------------------
Fund balances carried forward at
31 December 2021 419,156 162,733 581,889 924,591
======== ========= ========= =========

All of the above results were derived from continuing activities. The Charity has no recognised gains or losses other than those dealt with in the Statement of Financial Activities.

The accompanying notes form part of these financial statements.

15

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 18,182 4,173
CURRENT ASSETS
Debtors 9 61,077 280,981
Cash at bank and in hand 526,690 676,349
----------------- -----------------
583,352 957,330
CREDITORS:amounts falling due
within one year 10 (24,060) (36,912)
------------------ ------------------
NET CURRENT ASSETS 563,707 920,418
----------------- -----------------
NET ASSETS 581,889 924,591
======== ========
Unrestricted funds 11 419,156 509,796
Restricted funds 12 162,733 414,795
------------------ ------------------
581,889 924,591
========= =========

The financial statements were approved and authorised for issue by the trustees on 18[th] May 2022 and signed on their behalf by:

Noeleen Cohen Chair

16

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

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

STATEMENT OF CASH FLOWS

2021 2020
£ £ £ £
Cash flows from operating activities:
Net cash provided by (used in) operating activities (126,675) 130,713
Cash flows from investing activities:
Interest from investments 69 343
Purchase of property, plant and equipment (23,053) (1,270)
----------------- -----------------
Net cash provided by (used) in investing activities (22,984) (927)
---------------- ----------------
Change in cash and cash equivalents in the
reporting period
(149,659) 129,786
Cash and cash equivalents at the beginning of the
reporting period 676,349 546,563
---------------- ----------------
Cash and cash equivalents at the end of the
reporting period
526,690 676,349
======== =========
Reconciliation of net income/(expenditure) to net cash flow from operating
activities
2021 2020
£ £
Net income/(expenditure) for the reporting period
(as per the statement of financial activities) (342,702) 162,800
Adjustments for:
Depreciation charges 9,044 2,221
Interest from investments (69) (343)
Decrease/(increase) in debtors 219,904 (1,480)
Decrease/ (increase) in creditors (12,852) (32,485)
----------------- -----------------
Net cash provided by/(used) in operating activities (126,675) 130,713
======== ========

17

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

STATEMENT OF CASH FLOWS CONTINUED

Analysis of cash and cash equivalents 2021 2020
£ £
Cash in hand 526,690 676,349
----------------- -----------------
Total cash and cash equivalents 526,690 676,349
======== ========
Movement in net debt:
2020 Cashflows 2021
Cash at bank 676,349 (149,659) 526,690

18

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

The principle accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland – (Charities SORP FRS 102) (second edition, effective 1 January 2020), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Going Concern

The accounts have been prepared on the assumption that the Charity is able to carry on its activities as a going concern and there are no material uncertainties regarding the going concern assumption. In assessing the Charity’s ability to continue as a going concern, the Trustees have considered the Charity’s liquidity position and reviewed cash flow forecasts for the foreseeable future. In addition to its cash reserves, it has no external debt or security.

For this reason, the Trustees continue to adopt the going concern basis in preparing the accounts.

19

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

Incoming resources

Donations and legacies are recognised when the charity is legally entitled to the income, receipt is probable and the amount can be quantified with reasonable accuracy. The date of entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. Where donors impose conditions which have to be fulfilled before the charity becomes entitled to such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.

Charitable income is recognised on an accruals basis. Investment income is recognised on a receivable basis.

Government grants relate to Coronavirus Job Retention Scheme (CJRS) income recognised as receivable in line with the period that the relevant expense has been incurred.

Resources expended

Expenditure is charged to the statement of financial activities on an accruals basis and has been classified under headings that aggregate costs related to each particular charitable activity. Grants are included in the financial statements when approved by the Trustees and notified to recipients. The value of committed grants unpaid at the year end is accrued. Support costs that relate to the delivery of our charitable activities including IT, payroll, administration, health and safety, human resources, print, communications and management, have been allocated to activities on a basis consistent with the use of the resources.

Pension costs

The charity operates auto-enrolment of staff once they have completed 3 months of employment.

Funds

Restricted Funds: Where a donor has specified a particular purpose for a donation, the income is recognised in the statement of financial activities, and it is held in a separate restricted fund which can only be used for the purposes originally specified by the donor.

Unrestricted Funds: These are funds available for use at the discretion of the Trustees in furtherance of the objectives of the charity.

20

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

1. ACCOUNTING POLICIES (continued)

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities.

Tangible fixed assets

Depreciation is calculated by the straight line method to write off the cost/value, less anticipated residual value, over the expected useful lives of assets as follows.

Computers and equipment - 3 years

Fixtures and fittings - 3 years

Debtors

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

Cash at bank and in hand

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

Creditors and provisions

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

2. DONATIONS AND LEGACIES 2021 2020
£ £
Individual donors 751,999 850,475
Trusts and Corporate donors 1,727,649 1,919,515
-------------------- --------------------
2,479,648 2,769,990
========== ==========

21

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

3. NET INCOME FOR THE YEAR 2021 2020
£ £
The net income for the year is stated after
charging:
Depreciation 9,044 2,221
Auditor’s remuneration:
Audit 10,800 10,800
Other 1,800 2,880
Operating lease pa charge 20,400 13,261
======= =======
4. INCOME FROM INVESTMENTS 2021 2021
£ £
Bank interest receivable 69 343
======= =======
5. ISRAEL PROJECTS EXPENDITURE 2021 2020
£ £
Grants:
Shared Society 739,658 853,660
Human Rights 914,181 47,191
Religious Freedom 54,003 75,817
Social and Economic Justice 519,071 592,305
Israeli-Arab Society 17,901 566,926
New Initiatives for Democracy 105,035 53,664
-------------------- --------------------
Total grants payable 2,349,849 2,189,563
Grant support costs 69,123 58,178
-------------------- --------------------
2,418,972 2,247,741
========= ==========

As noted in our plans for the future (page 7), we intend to focus our work around three rather than six areas, replacing the above with Arab-Jewish Partnership, Defending Democracy and Human Rights, and Israel for All. Different projects relate to one another and have been categorised differently in different years, causing apparent fluctuations as above. It is intended that the move to three areas will provide a more useful illustration of our investment in Israeli civil society.

22

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

6. TOTAL EXPENDITURE - 2021
Direct Support 2021
Costs Costs Total
£ £ £
Raising funds 21,053 179,374 200,427
Charitable activities:
Israel Projects 2,349,849 69,123 2,418,972
UK Programme 50,702 158,769 209,471
-------------------- ----------------- ---------------------
2,421,604 407,266 2,828,870
========= ========= ==========
TOTAL EXPENDITURE - 2020
Direct Support 2020
Costs Costs Total
£ £ £
Raising funds 15,797 142,013 157,810
Charitable activities:
Israel Projects 2,189,603 58,138 2,247,741
UK Programme 66,345 152,310 218,655
-------------------- ----------------- ---------------------
2,271,745 352,461 2,624,206
========= ========= ==========
=

Total governance costs included within support costs are £10,970 (2020: £13,900).

23

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

7. STAFF COSTS 2021 2020
£ £
Wages and salaries 262,330 228,070
Social security costs 24,819 20,105
Pension costs 4,697 4,164
----------------- -----------------
291,846 252,339
======== ========

Staff costs of £49,566 (2020: £14,525) are charged to Israel Projects, £113,849 (2020: £149,013) to UK Programme and £128,624 (2020: £88,095) to costs of generating funds.

The average monthly number of employees engaged in the activities of the Charity during the year was 7 (2020: 6). No employees had emoluments (including benefits in kind) of more than £60k in the year (2020: one between £80,001 and £90,000).

8. TANGIBLE FIXED ASSETS Computers Fixtures Total
and and
equipment fittings
£ £ £
Cost
At 1 January 2021 22,550 1,363 23,913
Additions 7,157 15,896 23,053
Disposal
---------------- ---------------- ----------------
At 31 December 2021 29,707 17,259 46,966
---------------- ---------------- ----------------
Depreciation
At 1 January 2021 18,831 909 19,740
Charge for the year 3,044 6,000 9,044
Disposal
--------------- --------------- ---------------
At 31 December 2021 21,875 6,909 28,784
---------------- ---------------- ----------------
Net Book Value
At 31 December 2021 8,832 10,350 18,182
======== ======== ========
At 31 December 2020 3,719 454 4,173
======== ======== ========

24

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

9. DEBTORS 2021 2020
£ £
Accrued income 35,924 266,485
Other debtors and prepayments 25,153 14,496
------------------- -------------------
61,077 280,981
======== ========
10. CREDITORS: amounts falling due 2021 2020
within one year £ £
Trade creditors 4,078 707
Other Creditors 1,233 1,740
Other taxes and social security 6,334
 11,158
Accruals 12,415
 23,307
---------------- ----------------
24,060 36,912
======== ========
11. NET ASSETS BY FUNDS - 2021 Unrestricted Restricted 2021
£ £ £
Balance at 1 January 2021 509,796 414,795 924,591
Net movement in funds (90,640) (252,062) (342,702)
---------------- ----------------- -----------------
Balance at 31 December 2021 419,156 162,733 581,889
---------------- ----------------- -----------------
Represented by:
Tangible fixed assets 18,182 - 18,182
Debtors 61,077 - 61,077
Cash 363,957 162,733 526,690
Creditors (24,060) - (24,060)
------------------ ---------------- ----------------
Total funds 419,156 162,733 581,889
========= ======== =========
=

25

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NET ASSETS BY FUNDS - 2020 Unrestricted Restricted 2020
£ £ £
Balance at 1 January 2020 205,874 555,917 761,791
Net movement in funds 303,922 (141,122) 162,800
---------------- ----------------- -----------------
Balance at 31 December 2020 509,796 414,795 924,591
---------------- ----------------- -----------------
Represented by:
Tangible fixed assets 4,173 - 4,173
Debtors 280,981 - 280,981
Cash 261,554 414,795 676,349
Creditors (36,912) - (36,912)
------------------ ---------------- ----------------
Total funds 509,796 414,795 924,591
========= ========= =========

26

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

12. TOTAL FUNDS - 2021 As at As at
1 January 31
December
2021 Income Expenditure Transfers 2021
£ £ £ £ £
Unrestricted
General 409,796 775,847 (479,021) (287,466) 419,156
Designated for Grants to 100,000 - - (100,000) -
NIF Israel
----------------- ------------------- ----------------- ----------------- -----------------
Balance at 31 December 509,796 775,847 (479,021) (387,466) 419,156
2021
======== ========= ======== ======== ========
Restricted
Donor Advised Grants Fund 414,795 1,265,334 (1,517,396) - 162,733
Special Projects Fund - 444,987 (832,453) 387,466
----------------- ------------------- ----------------- ----------------- -----------------
Balance at 31 December 414,795 1,710,321 (2,349,849) 387,466 162,733
2021
======== ========= ======== ======== ========

The Donor Advised grants represent funds where the donor stipulates the project to which the monies should be applied in Israel. Special Projects Fund represents funds received to implement specific one-off projects.

As a grant giving organisation, NIF UK raises general support funds that are then spent on specific grants and therefore dispersed as restricted funds. This is part of our organisation and Trustees having proper oversight of how charitable funds are used overseas. This explains the disparity between income and expenditure for Special Projects Fund (and restricted funds in the SOFA on page 15) and the transfer of general funds to meet the costs of some of our grants.

Designated fund represents £100k transferred from unrestricted funds in 2020’s surplus that were allocated for grants to be made to NIF Israel in 2021.

27

NEW ISRAEL FUND

FOR THE YEAR ENDED 31 DECEMBER 2021

TOTAL FUNDS - 2020 As at As at
1 January 31
December
2020 Income Expenditur Transfers 2020
e
£ £ £ £ £
Unrestricted
General 205,874 911,309 (434,643) (272,744) 409,796
Designated for Grants to - - - 100,000 100,000
NIF Israel
----------------- ------------------- ----------------- ----------------- -----------------
Balance at 31 December 205,874 911,309 (434,643) (172,744) 509,796
2020
======== ========= ======== ======== ========
Restricted
Donor Advised Grants Fund 447,384 1,412,894 (1,445,483) - 414,795
Special Projects Fund 108,553 462,783 (744,080) 172,744 -
----------------- ------------------- ----------------- ----------------- -----------------
Balance at 31 December 555,937 1,875,677 (2,189,563) 172,744 414,795
2020
======== ========= ======== ======== ========

13. STATUS

The New Israel Fund is a registered charity constituted as a Company limited by guarantee and does not have a share capital. The liability of each member is limited to £1.

14. OPERATING LEASES

A 5-year operating lease in respect of Land and buildings was entered into during November 2020. At the end of the year total commitments payable were:

2021 2020
Amounts due: £ £
Within one year 20,400 17,000
Between two and five years 56,100 63,750
-------------- --------------
76,500 80,750
======== =========

28

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS (continued)

15. RELATED PARTIES

Total remuneration of key management personnel for the year was £107,595 (2020: £83,473).

In 2020 all staff including key management personnel adjusted their hours and therefore remuneration as part of planning around the impact of the Covid 19 pandemic. In addition, for part of 2021 both the outgoing and incoming Chief Executive were employed to allow for sufficient handover and a successful transition of leadership. This explains the increase for the cost of total remuneration of key management personnel between 2020 and 2021.

None of the Trustees received any emoluments during the year (2020 - none). No expenses were reimbursed to Trustees while on the charity’s business during the year (2020 - none). Trustee indemnity insurance paid in the year was £2,430 (2020: £2,051).

Total Donations received from trustees and other persons considered to have significant influence, and key management personnel can be considered to have significant influence was £71,902 (2020: £156,706).

NB: in 2020 we combined the figure for direct donations from trustees and donations from Trusts and Foundations where our Trustees were also persons with significant influence on donations.

Additionally, we received donations from Trusts and Foundations where our Trustees are also persons who have significant influence on donations as below:

There were no other related party transactions requiring disclosure in the year.

29

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

16. GRANTS

Grants totalling £832,000 were made to the New Israel Fund Israel to contribute to its activities including its grants to Israeli not-for profit organisations in furtherance of its mission and the work and project of its action arm Shatil. This is the work reported in the Trustees’ Report above.

The grant to NIF Israel included support for (in alphabetical order):

Alliance for Israel Future (Lod) Association for Civil Rights in Israel [ACRI] FakeReporter Ir Amim Israel Religious Action Centre [IRAC] Kick It Out Israel LGBT: shared role for 16 organisation advancing rights for LGBT people in Israel Mitvim Omdim Beyachad (Standing Together) Public Housing Forum Shatil Capacity building for Shared Society Sheli Fund for the Environment Sikkuy-Aufoq (Media Project)

In addition, in 2021, 82 projects were funded through our Donor-Advised initiative. The following are organisations who received over £20,000 in funds from UK donors (in alphabetical order):

15 Minutes - Public Transport Consumers Union ALLMEP Assaf: Aid Organization for Refugees and Asylum Seekers Association for the Improvement of the Status of Women in Lagiya Breaking the Silence B'Tselem: Israel Information Center for Human Rights Clore Community Center Crossroads Givat Haviva Jewish-Arab Center for Peace Hadassah Hospital Jerusalem Business Development Center: MATI Krembo Wings Kuchinate - African Refugee Therapeutic Services Mabat - Awareness in a Multi-Cultural Society Maslan - Women's Crisis Center of the Negev Middle East Education through Technology Nine Seven Two: Advancement of Citizen Journalism Omdim Beyachad (Standing Together) Physicians for Human Rights in Israel Sikkuy-Aufoq: Israel Association for the Advancement of Equal Opportunity Summit Institute The Israeli Centre for Public Affairs - ICPA Towards the Horizon Tsofen Women's Fund for Human Rights (Machsom Watch)

30

NEW ISRAEL FUND FOR THE YEAR ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATIVE INFORMATION

Registered Office Registered Office Third Floor
Star House
104-108 Grafton Road
London
NW5 4BA
Registered Charity 1060081
Number
Company 03296825
Registration Number
Bankers Coutts & Co
440 Strand
London
WC2R OQS
Auditor Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Solicitors BCLP
Adelaide House
London Bridge
London
EC4R 9HA

31