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2022-03-31-accounts

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Annual Report and Financial Statements

Year ended 31 March 2022

Registered Company: 3451979 Registered Charity: 1065552

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The Nationwide Foundation’s trustees’ report for the year ending 31 March 2022

About the Nationwide Foundation

The Nationwide Foundation is an independent charity that seeks to improve the lives of people in need. It does this by funding charitable causes and influencing for meaningful, long-term, and lasting systems change. At its heart, the Nationwide Foundation seeks to tackle the root causes of social problems that lead to disadvantage, poverty, and inequality. Key to the Nationwide Foundation’s approach is creating a legacy, so that fewer people experience negative social outcomes in the future thanks to timely and innovative intervention today.

The Nationwide Foundation was established by Nationwide Building Society in 1997 as a fully independent charitable foundation. The Nationwide Foundation’s main benefactor is Nationwide and it receives an annual donation from the building society.

Charitable objects

The Nationwide Foundation was established with the objects:

“To promote such purposes being exclusively charitable according to the law of England and Wales as the trustees shall from time to time determine. In carrying out the objects the Foundation may make and receive donations.”

Decent Affordable Homes strategy overview

The Nationwide Foundation believes that everyone should have access to a decent home that they can afford. As a charity that helps to create positive and lasting changes to tackle disadvantage in the UK, the Nationwide Foundation uses its knowledge, leverage and funding of others to influence changes to the housing system and achieve its aim of increasing the availability of decent affordable homes for people in need.

The Nationwide Foundation is committed to its Decent Affordable Homes strategy, which started in 2013 and is due to run until at least 2031. This is in recognition of the severity of the housing crisis and the significant changes needed to help create a modern housing system that works for everyone.

The strategy is structured in phases: the first ran from 2013-2016; phase two from 2016-2021; and in 2021/22 the strategy entered its third phase.

Public benefit

Having somewhere safe and secure to live is a basic necessity, yet the lack of decent, affordable housing is one of the most pressing social problems facing the UK today, causing harm to the health of individuals, families, their communities and society at large.

The UK is facing a long-term housing crisis: homeownership is increasingly unaffordable; there is a severe shortage of social housing; and the options available in the private rented sector are too often unaffordable and of poor quality. The high cost of housing in many areas is a direct cause of poverty, with poor-quality housing exacerbating the impact of poverty and narrowing, or even blocking, the pathways available to people to improve their health, employment, education and family life.

The Nationwide Foundation’s trustees understand that the conditions, stability and cost of housing have far-reaching impacts on the quality of people’s lives. What is more, those who are vulnerable are most deeply affected by the damaging impacts of inadequate housing, while at the same time often being those with the least resource available to proactively change the housing system.

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The Nationwide Foundation’s Decent Affordable Homes strategy aims to tackle the root causes of those negative impacts by creating conditions for increasing the availability of good quality and affordable homes for all who need it, for as long as they need it.

The Nationwide Foundation’s trustees refer to the Charity Commission’s guidance on public benefit when reviewing the Nationwide Foundation’s aims and objectives, in planning future activities, setting grant-making policy and making funding decisions.

Summary of the year

In 2021/22 the Nationwide Foundation continued to deliver phase two of the Decent Affordable Homes strategy. As more of the phase two projects reached maturity in this year, there was plenty of opportunity for the Nationwide Foundation and its grant-holders to use the evidence that has been gathered to share with stakeholders and key decision-makers.

At the same time, much of the Nationwide Foundation’s focus was given to designing the third phase of the Decent Affordable Homes strategy. The intention was to build on the progress of the second phase and to ensure that the Nationwide Foundation was making good progress towards the aim of the strategy.

After reviewing the work and progress of phase two and how it could best impact systems change, the Nationwide Foundation’s trustees agreed the shape of the next three-year phase which will focus on generating and using evidence to influence changes to the housing system so that the availability of decent affordable homes increases. A key part of phase three is to deliver knowledge that will lead to better understanding of the housing system by mapping its complexities and revealing levers for change.

Phase three of the strategy got underway during 2021/22.

Ongoing response to Covid-19

In the previous financial year, the Nationwide Foundation had identified that the impact of the pandemic had a particularly significant effect on those projects due to complete within 12 months. These projects had less time to recover from the impact of the pandemic and grant-holders were also entering a much more challenging funding environment. Therefore, these grant-holders were able to access a funding extension so they could complete their work. It was during 2021/22 that this funding was distributed.

In addition, in recognition of the toll taken on leaders and senior management teams during the pandemic, the Nationwide Foundation set up a fund to support the wellbeing of leaders at the organisations it funded. This was offered so that leaders could use it to care for their own wellbeing and strengthen their resilience, and therefore they could maintain strong leadership and continue to support the wellbeing of others over the coming months.

Learning and evaluation

The Nationwide Foundation wants to know what progress it is making towards achieving its outcomes; what it can learn from the activities it funds; and how it can use the learning to inform greater progress towards the outcomes.

The Nationwide Foundation received the final evaluation report on phase two of the strategy from Sheffield Hallam University. Learning from this was a key component of the design of phase three.

Grant-making policy

The Nationwide Foundation’s trustees and staff strive for robust, transparent governance and grantmaking policy, including commitment to:

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The Nationwide Foundation:

The Nationwide Foundation is a Living Wage Friendly Funder and is committed to ensuring that fair wages are paid, as an obvious and simple way of helping to tackle poverty and disadvantage.

The Nationwide Foundation’s impact on the environment

The Nationwide Foundation helps to reduce carbon emissions by:

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Decent Affordable Homes Phase Two

Some of the activity during 2021/22 was carried out to deliver Decent Affordable Homes phase two, which began in 2016. The strategy of phase two is shown below.

Decent Affordable Homes Phase Two
Our vision is for everyone in the UK to have access to a decent home that they can afford
Our aim is to increase the availability of decent, affordable homes for people in housing need
Our charitable focus is on solutions that reach people who are, or are at risk of being, in need
Our commitment is long term (10 years)
Our strategic approach
is		 to influence changes to the housing system by supporting, testing and evidencing
solutions for increasing the availability of decent, affordable homes for people in housing
need
To do this we will use all of our resources to
•
support new ideas for solutions
•
support practical experience to learn what works on the ground
•
connect those with knowledge to those with power to make change happen at
scale
•
collaborate and engage with others
Our programmes are Nurturing Ideas to Change
the Housing System		 Backing Community-Led
Housing		 Transforming the Private
Rented Sector
The change we want to
see (our outcomes)		 Ideas for protecting and
creating decent, affordable
homes flourish and result
in changes that lead to an
increased number of
homes for people in need		 Community-led housing
delivers an increased
number of homes for
people in need		 The private rented sector
provides homes for people
in need, which are more
affordable, secure,
accessible and better
quality
To make the changes we
want to see happen, our
funding focusses on		 Generating more ideas on
how to protect and
increase the supply of
decent affordable homes
Having an improved		 Ensuring there is better
access to information,
support, advice and
technical expertise that is
needed to progress a
scheme		 Ensuring there is more
robust evidence of the
solutions to address the
issues of cost, quality,
security and access in the
private rented sector is
available and used to
inform policy and practice
Making sure tenants have
a stronger voice in the
debates on the private
rented sector and housing
understanding of which i h ilbili
ideas have the potential to
create change
Changing policy and
practice to support the
implementation of ideas		 Increasng te avaaty
of suitable and affordable
finance at every stage
Increasing access to land
and properties currently
not used as homes

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Decent Affordable Homes Phase Three

Strategic review

A review of the Nationwide Foundation’s Decent Affordable Homes strategy ran from September 2020 until June 2021 to consider how phase two of the strategy would evolve into phase three.

The review was informed by an evaluation of phase two which was undertaken by Sheffield Hallam University and delivered in the previous year. This evaluation confirmed that the Nationwide Foundation had been making good progress in phase two, and that there was opportunity to build on the learning in phase three.

The Nationwide Foundation’s strategic review identified that the Nationwide Foundation’s collaborative approach should continue, as it is valued and it contributes to achieving better results. It also highlighted that the Nationwide Foundation can and should use its name, voice and influence more.

In June 2021, the board of trustees approved the outline of the phase three strategy.

Decent Affordable Homes phase three has three pillars:

Features of Decent Affordable Homes phase three

Phase three builds on the excellent headway that was made in phase two. The first two pillars of this phase focus on generating and using the evidence that comes from the work we funded in phase two.

We will continue to support projects which were funded in phase two to build evidence and learning, with greater emphasis on how that evidence and learning can be used to influence change.

The test and learn nature of the work means that generation and use of evidence happens at the same time and that learning gathered along the way is used to adapt and then retest to build stronger evidence.

Pillar three – revealing the housing system - brings one new large strategic project to the Nationwide Foundation’s portfolio. This work has two components: first, to map the complexities of the housing system to identify causal loops and levers for change within it. The second component is to create a systems change framework to help build an understanding of how change can happen and how stakeholders who share a common vision can work together. This work will convene change agents, such as key organisations, stakeholders and funders, around a route map to deliver the changes.

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Activities and achievements in 2021/22 across phase two and phase three

Grant-making

The Nationwide Foundation has three programmes and in all these programmes, funding was granted during 2021/22 – the vast majority from the budget for phase two.

In the year 2021/22, the Nationwide Foundation awarded £1,377,970 in grant funding for charitable work that aligned with the objectives of Decent Affordable Homes phase two. This figure includes grants awarded to existing phase two projects, for Covid-19 support and for added value.

There were two pieces of work that were funded under phase three of the strategy, totalling £386,415. These were awarded to Fair Housing Futures and the Town and Country Planning Association.

Influencing change

It is the Nationwide Foundation’s belief that strategic change is required across the UK’s housing system. This change will mean that effective and long-lasting improvements can happen to reduce the harm that poor quality and unaffordable housing causes and perpetuates.

Influencing key decision-makers and stakeholders is fundamental to the Nationwide Foundation’s approach. Much of the Nationwide Foundation’s time is spent working with and alongside grant-holders in support of the programmes’ aims.

The Nationwide Foundation influences for positive change in two ways; indirectly, by funding others that share the Nationwide Foundation’s vision and partnering with grant-holders to disseminate and amplify their evidence and learning; and directly, through its own activities, such as meetings, writing consultation responses, and engaging with governments and other stakeholders. The Nationwide Foundation also convenes and connects as a way of building consensus and voice across sectors and between stakeholders.

Since the beginning of phase two of the Decent Affordable Homes strategy, the Nationwide Foundation has been expanding its influencing activities across all three of its programmes to bring about changes to the housing system. However, to take this even further, a key organisational focus of phase three will be driving up the stakeholder engagement and public affairs activity carried out by the Nationwide Foundation. This will allow the Nationwide Foundation to make a greater contribution to the aim of the strategy to increase the availability of decent, affordable homes for people in need.

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The Nationwide Foundation’s Programmes

Nurturing Ideas to Change the Housing System

Activities, achievements and outcomes

The Nurturing Ideas to Change the Housing System programme ensures that ideas for protecting and creating decent, affordable homes flourish and that these ideas result in changes that lead to an increased number of homes for people in need.

Moving towards legislation that will make homes healthier environments

The Nationwide Foundation has been funding the Town and Country Planning Association to persuade the government to legislate the built environment in order to prevent the creation of poor-quality housing. The Town and Country Planning Association aims to ensure that new legislation will implement 11 high-level principles to be adhered to when new homes are being built, which, taken together, define what is meant by a decent home.

During 2021/22, the healthy homes campaign found an opportunity to influence by working on an amendment to the Building Safety Bill as it was undergoing scrutiny in the House of Lords. The proposed amendment was to extend the definition of safety so that it is not just the absence of immediate physical harm, but also includes the consideration of wider health and wellbeing. The amendment had cross-party support when it was presented at committee stage in February 2022, and the Nationwide Foundation convened bishops and peers to meet with the Town and Country Planning Association to build support for the healthy homes principles. Although the amendment was not passed by the House of Lords at the subsequent report stage, the government minister agreed that how to bring health and wellbeing into the built environment should be on his agenda.

In addition, through direct influencing activity, the Nationwide Foundation responded to the housing, communities and local government select committee’s consultation on permitted development rights, drawing on the Town and Country Planning Association’s No Place for Placemaking report, which was funded by the Nationwide Foundation and which examined the impacts of permitted development rights on place-making. Specifically, the Nationwide Foundation’s response highlighted that permitted development rights can play a role in increasing the supply of new homes, but numbers should not be prioritised over decency standards and good design in place-making. When making new legislation, the government introduced safeguards to permitted development rights, which included light and minimum space standards, which the campaign called for.

To take the healthy homes campaign to the next level, in March 2022 a 36-month grant of £404,482 was awarded to the Town and Country Planning Association from the Decent Affordable Homes Phase Three budget. This will allow the evidence gathered to date from the healthy homes campaign to be used to influence policy and practice.

Accessing land to support the delivery of decent affordable homes

The Nationwide Foundation knows that accessing land is a key barrier to building genuinely affordable and decent homes and therefore it seeks to find ways to change the system to more easily release suitable land. During the year, Housing Justice, a funded project that has been exploring how surplus church land can be used to create decent and genuinely affordable housing in Wales, has delivered an interactive mapping tool to identify all Welsh church land. This mapping tool now plays a key role in enabling Housing Justice to work more effectively with churches to identify surplus land and ownership quickly. Housing Justice works with social housing developers that are searching for suitable land for development of homes which are genuinely affordable. The ambition of this approach is for it to be replicable across other faith groups which own land and want to deliver genuinely affordable homes. An indicator of the relevance of this project came during a debate in the House of Lords in 2021, brought by the Archbishop of Canterbury, when evidence from Housing Justice into accessing church land was used as an example of good practice.

Meanwhile, We Can Make, a project run by Knowle West Media Centre and funded by the Nationwide Foundation, has been exploring innovative ways to use microsites on a housing estate in south Bristol to

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create affordable homes through modern methods of construction. In July 2021, the land transfer process for the microsites was officially approved by the secretary of state. This achievement means that a new supply of land exclusively for community-led genuinely affordable housing has been created and We Can Make has a tested and proven model for affordable housing delivery that can now be adopted and adapted to other communities.

Engaging with members of the House of Lords

The House of Lords’ Built Environment Committee undertook an inquiry on meeting housing demand. Evidence taken from the Nationwide Foundation’s submission was referenced in the Committee’s report in the chapter on housing types and tenures. This was a wide-ranging inquiry that allowed the Nationwide Foundation to present robust evidence about housing solutions, tenure mix and planning and innovation opportunities that had been drawn from funded projects.

Changing the way that the public thinks about housing

The Nationwide Foundation is funding the Frameworks Institute to bring forward new, tested ways to discuss housing so that the public is engaged and supportive of moves to transform the housing system to deliver more decent, affordable homes. This project reached a landmark achievement in 2021/22 with the publication of its strategic brief: Communicating About Housing in the UK: Obstacles, Opening and Emerging Recommendations. The key document provided valuable insight into the way the public understands housing issues, and it also forms the basis of the next phase in the research, which is to design and test ways of talking about housing that shift hearts and minds to build public support for more decent and affordable housing. As part of the mobilisation of this framing guidance, bespoke workshops were provided for Shelter and other key stakeholders to disseminate the work.

Securing long-term funding for Housing First

Housing First improves the lives of homeless people with multiple and complex needs by providing them with a home that they can call their own at the very start of long-term support. The Nationwide Foundation jointly funds Homeless Link to expand its Housing First services across England, and the evidence from this has been used to help secure long-term funding. Homeless Link’s submission to the government’s Spending Review 2021 provided evidence to make a case for a national programme for Housing First. The submission contributed to the government’s decision to allow local authorities to apply for funding of up to three years under its Rough Sleeping Initiative; previously, this was limited to one year. This will markedly improve the Housing First services as they are eligible to apply to this fund. The Nationwide Foundation provided Homeless Link with an added value grant to attend the Housing First international conference to share its learning that graduations from Housing First are very low in England and therefore that support needs to be commissioned for the long-term.

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Backing Community-Led Housing

Activities, achievements and outcomes

The Backing Community-Led Housing programme enables the community-led housing sector to deliver an increased number of homes for people in need.

- Activity to directly influence for sustainable finance for community led housing

Community Housing Fund distribution

During the year, the government’s £4 million Community Housing Fund Revenue Programme 2021/22 awarded 52 grants to community organisations across England which are planning to deliver over 1,200 additional affordable homes. This distribution of funds was a significant outcome for the Nationwide Foundation and its grant-holder, the Community Land Trust Network, because for a number of years both organisations have collaborated to campaign for investment in this fund. The Nationwide Foundation’s continued engagement in this sustainable investment for affordable community-led housing work this year included a member of the Nationwide Foundation’s staff sitting on the grants panel for the fund and the Nationwide Foundation calling for an extension to the fund in a submission to the government’s autumn 2021 Spending Review.

Proving community-led housing has a pipeline of homes

The Nationwide Foundation recognised that there was a need to evidence the scale of demand for community-led housing to make the case for the government’s Community Housing Fund and for the delivery of homes via alternative sources of funding. Therefore, the Nationwide Foundation co-funded research with Power to Change, revealing that 12,000 community-led homes were in the pipeline. The new research informed key decision-makers when it was launched by the Community Land Trust Network in September 2021 at an event attended by the minister of state for housing.

Evidencing the speed of delivery for community-led housing

Sheffield Hallam University extracted evidence from its review of the Nationwide Foundation’s strategy proving that it takes the same length of time or quicker for community-led housing groups to build new homes compared to private housebuilders (Sheffield Hallam University – Nationwide Foundation). This knowledge equipped stakeholders in the community-led housing sector with data to influence for more community-led housing schemes.

Ground rents exemption for community-led housing

In June 2021 the government published a bill to ban ground rents and it included an exemption for community land trusts. The Nationwide Foundation has been supporting its grant-holder, the Community Land Trust Network, to raise awareness of this issue over the last five years, so this was a good outcome. The exemption will ensure community land trusts can work in partnership with housing associations to build affordable homes; keep them in community ownership; and generate a small income for the community.

- Other activities, achievements and outcomes in Backing Community Led Housing

Government support for the Right to Build Taskforce

There was a key outcome in the Nationwide Foundation’s support of self and custom-build this year, as the government announced further support and funding for the Right to Build Task Force. This taskforce was funded from scratch by the Nationwide Foundation through Nacsba, with support beginning in 2017. The taskforce’s value is still recognised and it is now sustainable without the Nationwide Foundation’s support.

Exploring the barriers that black and minority ethnic communities face in the sector

New funding of £21,600 was awarded in 2021/22 to Leeds Community Homes to fund the delivery of a oneyear project. Despite the recent expansion of the community-led housing sector, it has not extensively engaged with or been taken up by black and minority ethnic communities in the UK. This research will explore the barriers encountered by black and minority ethnic communities in developing community-led housing. Community-led housing may offer one solution to black and minority ethnic communities that are seeking both affordable and secure housing and the opportunity to influence and shape the planning,

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development and allocation of housing. This research supports the Backing Community-Led Housing programme by aiming to make community-led housing solutions more available and accessible in England.

Wessex Community Assets grant ended

Wessex Community Assets’ four-year grant to strengthen the support for community-led housing in Devon, Dorset and Somerset came to an end in 2021/22. The funding enabled Wessex Community Assets to work with local organisations in Torbay and Mendip to explore options for community-led housing to support the specific needs of people who are homeless. A focus of this grant was how to establish financial sustainability, and the outcome is that both areas are now operating a financial model to raise funds to purchase and refurbish properties that can be rented to people in housing need.

New Economics Foundation grant ended

The New Economics Foundation’s three-year funding came to an end in 2021/22. The purpose of this work was to create the conditions in which surplus public land is better used to deliver affordable homes, including for community-led developments. A key part of the work has been the data research looking at sales of public land for affordable housing, which was previously unreported by government. The New Economics Foundation disseminated the innovative research methods to the public accounts committee. This resulted in the Department for Levelling Up, Housing and Communities commissioning Ordnance Survey to use this methodology to report on affordable and social housebuilding as part of the ongoing public land sale programme. The New Economics Foundation maintained dialogue with the Department of Levelling Up, Housing and Communities and influenced to secure an ongoing commitment for the data to be published on a yearly basis. This will ensure there is improved transparency and better access to public land for community-led groups.

Long-term empty properties are brought into use for people in housing need

The Nationwide Foundation had one remaining grant from phase one of Decent Affordable Homes. During 2021/22, this funded work ended. YMCA Glenrothes has converted empty properties into homes for seven families or 11 people sharing.

Adding value

There were three added value grants awarded for Backing Community-Led Housing grant-holders in 2021/22. Communities Housing Trust has been funded to attend the Scottish Chartered Institute of Housing conference to share learning and experience of delivering community-led housing in Scotland. Meanwhile, human resources support was provided to South of Scotland Community Housing, and East Midlands Community Land Trust received support for its outcomes monitoring and reporting.

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Transforming the Private Rented Sector

Activities, achievements and outcomes

The Transforming the Private Rented Sector programme wants to ensure the private rented sector provides homes for people in need which are more affordable, secure, accessible and better quality.

With the government considering how it would bring forward a Renters’ Reform Bill, the Nationwide Foundation invested much of its energies this year into influencing for changes to legislation on private renting. This once-in-a-generation opportunity to improve the rights and protection given to private tenants in England has a clear link with the Nationwide Foundation’s long-term aim to strengthen the voice of renters. The focus was on ensuring that renters had better security of tenure and would know they could stay living in their homes for as long as they wanted or needed to; and also to ensure that the forthcoming changes to legislation would not lead to unintended consequences and would address other pressing issues in the sector, such as access to justice, safety, decency, and affordability.

Renters’ Reform Coalition blueprint

The Nationwide Foundation helped create and fund the Renters’ Reform Coalition to offer solutions for reform to the private rented sector. The Nationwide Foundation is an active member of the coalition, along with national housing and homelessness charities, renter unions, advice centres and thinktanks.

In March 2022, the coalition launched its blueprint for reform, which is a milestone in the national campaign to secure meaningful change to private renting. Safe, Secure and Affordable Homes for All: A Renters’ Blueprint for Reform sets out solutions for reform shaped by the experiences of the renters that Renters' Reform Coalition members work with.

Following the launch in Parliament, which was attended by the minister for rough sleeping and homelessness, members of the coalition, including a representative from the Nationwide Foundation, were invited to speak to the minister at a specially convened roundtable.

Learning from the Scottish private rented sector

During 2021/22, research being carried out by Indigo House into the impact of changes to the Scottish private rented sector continued to gather evidence. This research, funded by the Nationwide Foundation, is being used both with Scottish Government and to help guide the Westminster government in its reforms. This year Indigo House focused on understanding the experiences of landlords and low-income tenants. As part of its effort to influence, Indigo House presented at the UK Collaborative Centre for Housing Evidence’s Scottish Housing Policy Conference: A Fair, Flexible Future Rental Market, which took place in February 2022. The presentation, titled ‘Getting the right balance – opinion from tenants and landlords,’ was informed by the research that the Nationwide Foundation is funding.

Engaging with the Department for Levelling Up, Housing and Communities

The Nationwide Foundation has built up robust funded evidence on the private rented sector and used it during 2021/22 to influence changes to the system ahead of the Renters’ Reform Bill White Paper. In the course of the Department for Levelling Up, Housing and Communities’ evidence gathering in preparation for the white paper, this evidence was applied to demonstrate which changes would have the greatest positive impact.

No-DSS case, Shelter

Following on from the discrimination case in the previous financial year that set a powerful precedent to protect tenants from ‘no DSS’ discrimination, Shelter, which led the court action, was shortlisted for an award by the Sheila McKechnie Foundation in May 2021. The Nationwide Foundation had contributed towards the legal action by underwriting the costs. Among the successes of the campaign that the awards identified were:

i. The Competition and Markets Authority updated guidance to state that any landlord or agent who untruthfully claims to have a DSS restrictive mortgage is acting unlawfully.

ii. The prime minister confirmed that the government is working to tackle the problem and the housing minister stated that ‘if the sector is unwilling to take action, the government will then explore all options to remove this practice’ .

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Evidence on the make-up of the private rented sector

In June 2021, new research was published by the University of York’s Centre for Housing Policy which was funded by the Nationwide Foundation. In Property Supply to the Lower End of the English Private Rented Sector, questions are posed about how the lower end of the private rented sector can be sustained in light of research findings that landlords are indicating that they will be exiting the market. The research, carried out by Dr Julie Rugg, included assessing the impact of reduced investment in social housing, changes to the benefits system and the impact of landlords leaving the market.

The Nationwide Foundation had previously funded other research reports by the University of York into the private rented sector and this portfolio of work continues to have relevance and attract attention. The evidence was used in the roundtables with the Department of Levelling Up, Housing and Communities, and it also drew the attention of BBC Radio Four’s You and Yours programme. The Nationwide Foundation facilitated an interview with Dr Julie Rugg, who spoke about the findings of this latest report.

Tenants’ voice projects

The Nationwide Foundation continued to fund seven tenant voice projects with the overall aim of strengthening the voice of tenants in debates on the private rented sector and housing. The projects are spread across England, Scotland and Northern Ireland, and each has a different model for engaging renters to support them to have a voice.

The projects have made solid progress on building awareness of renter rights with the tenants they have engaged and also of gathering evidence on issues affecting renters. Over the past year, many of the projects have moved into supporting tenants to advocate directly with local and national decision-makers, with some winning early political commitments. Highlights include:

Using evidence from place-based funding to influence change

Fair Housing Futures received an additional £73,714 of funding from the budget for phase three of the Decent Affordable Homes strategy. This was so that the evidence that has been created over the last four years can be used to influence changes to the private rented sector in Greater Manchester. Fair Housing Futures is a place-based collaborative programme to innovate and improve upon services and interventions in Greater Manchester’s private rented sector housing, intent on finding system-wide solutions to transform renting for vulnerable tenants.

Fair Housing Futures mapped the private rented sector in Greater Manchester to identify the key problems in the region and awarded grant funding to five organisations via the Community Foundation of Lancashire and Merseyside to test innovative solutions to these problems. In this way, Fair Housing Futures is developing an evidence base, informed by tenant experience, of ways of addressing problems.

Over the remainder of the project, with this new funding, Fair Housing Futures’ primary focus will be to convert this learning into lasting change in Greater Manchester by influencing for policy and practice changes in line with the recommendations coming out of the project.

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Future Plans

Strategic focus

The Nationwide Foundation’s strategic focus during 2022/23 will be on embedding and delivering phase three of the Decent Affordable Homes strategy. This will include:

Grant-making activities

The Nationwide Foundation’s grant portfolio is made up of mainly multi-year grants that will be ongoing during 2022/23. Some of these projects will receive additional funding under phase three to take them to the next level of generating more evidence and using what has been discovered.

Work due to be undertaken or completed by grant-holders in 2022/23 includes:

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Future uncertainties

The Nationwide Foundation is mindful that the national and global context can affect our programmes. The following, in particular, have been identified as potentially impacting on our and our grant-holders’ work in 2022/23:

The Nationwide Foundation will monitor these and other issues that arise and adapt accordingly.

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Structure, Governance & Management

Governance

The Nationwide Foundation:

Equality, diversity and inclusion

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Staff

Key relationships

Fundraising activity

The Nationwide Foundation had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. Almost all the Nationwide Foundation’s income comes from an annual donation from Nationwide Building Society and a funding agreement is place which sets out the basis for the donation.

Statement of trustees’ responsibilities

The trustees (who are also directors of the Nationwide Foundation for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are trustees at the time when this trustees’ report is approved has confirmed that:

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The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Financial Review

Income

Income for 2021/22 totalled £1,770,175 (2020/21: £2,282,589). This is primarily made up of an annual donation from Nationwide in 2021/22 of £1,700,000 (2020/21: £2,000,000). In addition to the annual donation, in 2021/22, the Society donated services to the Nationwide Foundation totalling £99,755 (2020/21: £95,782). This represents the provision of office space, technology, legal and accountancy support.

The Nationwide Foundation’s principal source of income is an annual donation from Nationwide Building Society. The donation is received annually and is at least 0.25% of Nationwide’s pre-tax statutory profit averaged over three years. Nationwide provides a three-year donation floor to provide the Foundation with a commitment that supports the Foundation to plan for the medium term. The floor can only be adjusted in specified extraordinary circumstances. Those extraordinary circumstances happened in 2020/21 due to the impact of Covid-19. Nationwide Building Society provided confirmation early in the year that it would not adjust the floor and the floor amount would be honoured.

Expenditure

Expenditure for 2021/22 totalled £2,315,899 (2020/21: £1,905,175). The majority of the Nationwide Foundation’s funds are used to award grants for charitable purposes, and to cover the costs of running the Nationwide Foundation. Grants are paid in instalments, and multi-year grants are released annually, subject to approval from the chief executive. Each grant is subject to monitoring to ensure satisfactory progress.

There was a reduction in expenditure in two areas during the year: support costs were lower, due mainly to pandemic-related travel restrictions; and grant expenditure was lower because the focus was on supporting and managing ongoing multi-year grants during the pandemic.

Reserves policy

The trustees review the reserves policy annually and monitor the level of reserves throughout the year. Reserves held throughout 2021/22 were in-line with the reserves policy.

All the Nationwide Foundation’s reserves are unrestricted and trustees have agreed how and why the funds should be designated as set out below:

Designated
to		 Purpose Amount 2022/23
Contingency
fund		 To hold sufficient funds to deal with an unexpected
and significant event, such as the withdrawal of
support from our main benefactor. This is comprised
of:
•
running costs for up to three years to manage
existing funding commitments and give trustees
time to consider what action to take
•
costs of third-party expertise to assist the
trustees in what may be complex circumstances.		 This amount is determined
annually following a review of
a budget tailored to the
specific circumstances of the
Nationwide Foundation losing
its income.
Target - £550,000

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Pledged
fund		 To hold sufficient funds to meet all funding
commitments to grants that have been awarded but
not yet released.		 This is determined by the
amount that has been
awarded in grants but not yet
released.
Allocated
fund		 To hold the funds that have been allocated by the
trustees to each funding programme, but not yet
awarded as grants.
Funds from this designation are awarded over the
duration of the funding programme, which is usually
across multiple years.
The allocated fund may have sub-categories for
different funding programmes.		 This is determined by taking
the agreed budget for funding
programmes and deducting
the funds that have been
awarded to date.
Programme
related
investment
fund		 The value of programme related investment
commitments.
These funds can only be realised by disposing of the
investment in line with the terms of that investment.		 Determined by the value of the
programme related
investments that have been
awarded.

Note 16 of the accounts provides details of the amounts designated at 31 March 2022.

Investment policy

The Nationwide Foundation’s investment policy sets out the following objectives:

The investment policy identifies the Foundation’s attitude to risk, which recognises that charitable activity is funded from the annual donation and the Foundation’s activity is not reliant on income from investments. This is why preserving the value of its capital in real terms is an objective and minimal risks are taken. The policy specifies the criteria that must be applied when making different types of investments to manage the risks. This includes spreading the funds across different financial institutions that meet a set of requirements, such as minimum credit ratings and being based in the UK.

The trustees have considered the ethical standards that the Foundation wishes to meet through its investments and the following statement is included in the investment policy:

“The Nationwide Foundation is committed to ensuring that all investment decisions are made responsibly. The Foundation has a strong preference for an ethical investment portfolio that is consistent with the values and objectives of the Foundation.”

In addition to broad ethical considerations that take into account the impact that the assets being invested in have on society, specific consideration will be given to investment in assets that directly relate to the strategy at the time. The Foundation will not invest in assets that are in conflict with the strategic objectives.

For example, while delivering the Decent Affordable Homes strategy, funds will not be invested in residential property that does not support the creation of decent, affordable homes.

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The policy permits trustees to manage the Nationwide Foundation’s investments up to an agreed amount. In 2021/22 this amount was £7.5m. The use of an investment manager is reviewed annually.

During 2021/22 the Nationwide Foundation started a comprehensive review of its investment policy to ensure that the policy allowed for the Foundation to make the best use of its assets. This review will be completed in 2022/23.

Investments

The majority of funds are held in either fixed-term or instant access cash accounts on which interest is earned. Interest earned in 2021/22 totalled £9,549 (2020/21: £27,277).

In 2021/22 the Foundation held funds in CCLA’s COIF Charities Ethical Investment Fund as it met the Foundation’s risk requirements and ethical standards.

At 31 March 2022 the value of the investment was £694,444 (31 March 2021 £622,515), a gain of £71,929. The investment performance was strong throughout the year, despite the pandemic and Brexit-related economic uncertainty. The investment met the investment objectives set out above.

Programme related investment policy

The policy on social investments adheres to the following guidance from the Charity Commission:

“Programme related investments (also known as social investments) are made directly in pursuit of the organisation’s charitable purposes. Although they can generate some financial return (funding may or may not be provided on commercial terms), the primary motivation for making them is not financial but to further the objects of the funding charity.”

During the year:

Financial outlook

The Nationwide Foundation has a minimum donation committed from Nationwide for 2022 and 2023 which, due to pre-pandemic wider market conditions, is slightly less than 2021/22. The Nationwide Foundation has planned for this reduction in income by designating surplus funds in previous years to a future fund in order to smooth the reduction in income and maintain charitable activity as far as possible.

The longer-term economic outlook remains uncertain as the UK economy recovers from the impact of Covid-19 and Brexit. This uncertainty may lead to a reduction of the minimum donation commitment for the 2023/24 donation. The Nationwide Foundation’s trustees monitor this throughout the year and are prepared to be responsive and flexible to any changes.

Guarantees

The guarantor members of the charity, who are also the trustees, guarantee an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2022 was 9 (2020/21: 9). The members are only entitled to voting rights and do not have a beneficial interest in the charity.

Auditors

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Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor.

Approval

The trustees have agreed these financial statements which have taken advantage of the small companies exemptions provided by section 415a of the Companies Act 2006.

Approved by the board of trustees on 15 September 2022 and signed on behalf of the board of trustees by the chair and another trustee:

Chair ……………………………………………………………………………………………………..

Saphié Ashtiany

Trustee……………………………………………………………………………………………………

Sarah Mitchell

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Trustees/Directors

Terrie Alafat ◊

∞ Saphié Ashtiany (chair)

Antonia Bance ∞

Sara Bennison † ∞ (resigned xxxxxx)

Rob Collins † ◊

Gill Leng ◊

Judith McNeill

Sarah Mitchell (vice-chair) ◊ ∞

Usha Prashar † ∞

Christopher (Kit) Beazley ◊ (appointed 24 April 2022)

Rachael Sinclair (appointed 15 August 2022) †

Anya Martin (observer - not a director. Observership ended July 2022)

Chief Executive: Leigh Pearce

Accountant: Daisy Pittams

Auditors: Crowe U.K. LLP, Aquis House, 49-51 Blagrave Street, Reading, Berkshire, RG1 1PL Bankers: CAF Bank, 25 Kings Hill, West Malling, Kent, ME19 4JQ

Investment managers: CCLA Investment Management Limited and CCLA Fund Managers Limited, Senator House, 85 Queen Victoria Street, London, EC4V 4ET

Solicitors: Bates Wells Braithwaite, 10 Queen Street Place, London, EC4R 1BE

Registered charity no. 1065552 Registered company no. 3451979

Registered office address: Nationwide House, Pipers Way, Swindon, SN38 1NW

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Independent Auditor’s Report to the Members of The Nationwide Foundation

Opinion

We have audited the financial statements of The Nationwide Foundation (‘the charitable company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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 charitable company 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 trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a 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 our audit

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Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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

As explained more fully in the trustees’ responsibilities statement set out on page 15, 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were Charity Commission regulations, taxation legislation, employment legislation and General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within timing of recognition of income, the application of grant expenditure and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for bias, reviewing the grant recognition calculations and supporting documentation, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

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

Alastair Lyon

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP Statutory Auditor Reading

Date: 26 September 2022

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THE NATIONWIDE FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022 (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

Notes 2022 2021
£ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies 2 1,770,175 2,159,530
Income from investments 3 9,549 27,277
Other incoming resources 4 99,755 95,782
Total income and endowments 1,879,479 2,282,589
EXPENDITURE ON:
Charitable activities 5 (2,315,899) (1,905,175)
Total expenditure (2,315,899) (1,905,175)
Net gains on fixed asset investments 73,614 119,990
Gains/(losses) from movements in foreign exchange 9,130 (9,162)
Net(expense)/income and net movement in funds (353,676) 488,242
Fund balances brought forward 4,228,618 3,740,376
Fund balances carried forward 16 3,874,942 4,228,618

The notes on pages 4 to 13 form part of these financial statements.

All income is unrestricted. All amounts relate to continuing operations.

There were no recognised gains or losses other than the net income for the year in the Statement of Financial Activities (2021: £nil).

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THE NATIONWIDE FOUNDATION BALANCE SHEET AS AT 31 MARCH 2022 COMPANY REGISTERED NUMBER: 3451979

Notes 2022 2021
£ £
FIXED ASSETS
Programme related investments 10 230,727 251,746
Investment 11 694,444 622,515
TOTAL FIXED ASSETS 925,171 874,261
CURRENT ASSETS
Programme related investments 10 14,810 2,065
Debtors 12 10,251 14,208
Fixed term deposits 1,100,000 2,000,000
Cash at bank 2,493,981 2,112,280
TOTAL CURRENT ASSETS 3,619,042 4,128,553
CURRENT LIABILITIES
Creditors 13 (669,271) (774,196)
NET CURRENT ASSETS 2,949,771 3,354,357
TOTAL ASSETS LESS CURRENT LIABILITIES 3,874,942 4,228,618
NET ASSETS 14 3,874,942 4,228,618
UNRESTRICTED FUNDS OF THE CHARITY
Designated funds 16 3,874,942 4,228,618
TOTAL FUNDS 3,874,942 4,228,618

The notes on pages 29 to 37 form part of these financial statements.

The financial statements were approved by the board of Trustees on 15 September 2022 and signed on behalf of the board of trustees by the chair and another trustee

  Chair – Saphié Ashtiany 

 Trustee – Sarah Mitchell 

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THE NATIONWIDE FOUNDATION CASH FLOW STATEMENT AS AT 31 MARCH 2022

2022 2021
£ £
Cash flows from operating activities
Net movement of funds per statement of financial activities (353,676) 488,242
Adjustments for:
Interest from investments (9,549) (27,277)
Decrease in debtors 3,957 26,911
Decrease in creditors (96,648) (755,287)
Gains on fixed asset investments (73,614) (119,990)
(Gains)/losses from movements in foreign exchange (9,130) 9,162
Net cash used in operating activities (538,660) (378,239)
Cash flows from investing activities
Fixed term deposits redeemed 2,000,000 3,000,000
Fixed term deposits issued (1,100,000) (2,000,000)
Interest from investments 9,549 27,277
Receipts from programme related investments 9,959 56,392
Net cash generated from investing activities 919,508 1,083,669
Effect of exchange rate changes on cash and cash equivalents 853 (9,162)
Increase in cash and cash equivalents in the year 381,701 696,268
Cash and cash equivalents at the beginning of the year 2,112,280 1,416,012
Total cash and cash equivalents at the end of the year 2,493,981 2,112,280

Cash and cash equivalents comprises cash at bank.

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THE NATIONWIDE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies

Charity information

The Nationwide Foundation is a company limited by guarantee (registered number 3451979), which is incorporated in the UK. The address of the registered office is Nationwide House, Pipers Way, Swindon, SN38 1NW.

Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2019), applicable UK accounting standards including the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006.

The Nationwide Foundation 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 Nationwide Foundation has cash resources and has no requirement for external funding. The Trustees have a reasonable expectation that the Nationwide Foundation has adequate resources to continue in operational existence for the foreseeable future, and for the year ended 31 March 2022 have considered in this assessment the war in Ukraine, ongoing Covid-19 impacts and the developing cost of living crisis. They continue to believe the going concern basis of accounting is appropriate in preparing the annual financial statements.

Significant judgements and estimates

The management consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

Accounting policies

The following accounting policies have been applied consistently in the preparation of the financial statements.

(i) Income

(ii) Grants

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1. Accounting policies (continued)

(iv) Donated goods and services

(vi) Designated funds Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of such designated funds is set out in the notes to the financial statements.

(vii) Irrecoverable VAT

Irrecoverable VAT is charged to the Statement of Financial Activities.

(viii) Cash flow statement

A cash flow statement has been prepared under FRS 102. Cash and cash equivalents represent cash in hand and notice deposits of less than 30 days.

(ix) Pension costs

The officers of the Foundation are part of Nationwide Group pension arrangements. The only pension costs to the Foundation are the employer’s pension scheme contributions which are re-charged to the Foundation. Pension scheme liabilities are borne by the Society.

(x) Debtors Debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

(xi) Creditors Creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

(xii) Financial instruments

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1. Accounting policies (continued)

(xiii) Fixed asset investments

(xiv) Gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Gains and losses are calculated as the difference between the market value at the balance sheet date and opening market value (or purchase value if the date is later).

(xv) Foreign currency translation

2. Donations and legacies

2022 2021
£ £
Nationwide Building Society 1,770,000 2,159,230
Other donations 175 300
Total 1,770,175 2,159,530

3. Income from investments

2022 2021
£ £
Bank interest receivable 6,924 24,801
Interest fromprogramme related investments 2,625 2,476
Total 9,549 27,277

4. Other incoming resources

2022 2021
£ £
Donated services from Nationwide BuildingSociety 99,755 95,782
Total 99,755 95,782

Donated services are analysed in note 5(b).

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5. Analysis of total expenditure

2022 Decent Affordable Governance costs Total
Homes funding
Charitable activities by strategy
objective
£ £ £
Staff costs 366,857 33,312 400,169
Support costs 37,667 13,923 51,590
Grants 1,764,385 - 1,764,385
Donated services 91,127 8,628 99,755
Total 2,260,036 55,863 2,315,899
2021 Decent Affordable Governance costs Total
Homes funding
Charitable activities by strategy
objective
£ £ £
Staff costs 394,466 26,018 420,484
Support costs 57,098 11,399 68,497
Grants 1,320,412 - 1,320,412
Donated services 88,579 7,203 95,782
Total 1,860,555 44,620 1,905,175
For further analysis of staff costs see note 6.
2022 2021
£ £
(a) Analysis of support costs
Administration and IT 66,411 45,387
Learning and evaluation and system mapping (14,821) 23,110
Total 51,590 68,497
2022 2021
£ £
(b) Donated services
Specialist staff services 33,755 29,782
Facilitycosts 66,000 66,000
Total 99,755 95,782

Donated services represent the cost of specialist staff services and accommodation which have not been directly charged to the Foundation by Nationwide Building Society. In addition, Nationwide Building Society provides the Foundation with other services such as IT support which cannot be readily quantified. IT costs for the maintenance of the Foundation’s grants administration system are paid by the Foundation and are included in support costs.

2022 2021
£ £
(c) Analysis of governance costs
Staff costs 33,312 26,018
Trustees’ expenses 165 -
Audit costs (inclusive of irrecoverable VAT) 13,758 11,399
Donated services 8,628 7,203
Total 55,863 44,620

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6. Staff costs

The officers of the Foundation are employed by Nationwide Building Society and assigned to the Foundation for the duration of their employment under the terms of the Framework Agreement between the Society and the Foundation.

The amounts charged as direct staff costs comprised:

2022 2021
£ £
Salaries 285,581 310,883
Social security 31,686 33,087
Pension contributions 82,902 76,514
Total staff costs 400,169 420,484

The average number of persons employed by the Society who acted as officers of the Foundation was 8 (2021: 8). The number of employees of the Society who acted as an officer of the Foundation receiving emoluments of over £60,000 and less than £70,000 was 1 (2021: nil) and emoluments of over £70,000 and less than £80,000 was nil (2021: 1). All staff receive emoluments, including benefits in kind, in accordance with Nationwide Building Society employment policies. For details of pensions costs see note 1(ix).

The average number of employees during the year comprises the following:

2022 2021
Decent Affordable Homes funding strategy 7 7
Governance 1 1
Total 8 8

7. Net income resources for the year

Net income for the year is stated after charging:

et income for the year is stated after charging:
2022 2021
£ £
Trustees’ expenses 165 -
Auditors’ remuneration:
Audit services – current year 9,965 9,495

None of the trustees / directors received any emoluments in respect of services to the Foundation (2021: nil).

Trustees’ expenses

Trustees’ expenses include amounts reimbursed to trustees for out-of-pocket expenses and amounts paid for by the Nationwide Foundation to third parties for costs such as travel, accommodation, subsistence and training. During the year, 1 trustee (2021: none) received reimbursements of personal travel and subsistence expenditure amounting to £165 (2021: nil).

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8. Grants payable

The Nationwide Foundation committed to the following grants during the year in relation to its Decent Affordable Homes strategy.

All grants are made to institutions.

All grants are made to institutions.
2022 2021
£ £
DECENT AFFORDABLE HOMES FUNDING STRATEGY
Affordable Housing Commission 10,000 63,139
Citizens Advice 45,888 43,779
Communities Housing Trust (previously HSCHT) 43,226 90,000
COVID-19 support fund 310,317 69,493
Decent Affordable Homes - Added Value 5,989 10,231
Shelter (DSS discrimination case) 1,700 2,124
East Midlands Community Led Housing 24,777 35,500
Fair Housing Futures 127,305 48,449
Housing Justice 93,715 43,680
Frameworks 83,399 -
Greater Manchester Tenants Union (previously Tenants Union) - 25,338
Homeless Link 45,000 45,000
Indigo House 127,381 1,000
Leeds Community Housing 21,600 -
Living Rent 5,000 28,415
National Community Land Trust Network 75,000 24,100
National Housing Federation - 42,056
Networking and best practice for Tenants’ Voice Programme - 4,500
New Economics Foundation - 62,468
Renters’ Reform Coalition (previously Generation Rent) 93,844 83,156
Renters’ Rights London 11,499 37,639
Renters’ Voice NI (previously Housing Rights) 51,332 52,280
Shelter (tenant voice project, Bristol) 27,410 40,538
South of Scotland Community Housing Trust (previously Dumfries) 37,200 43,956
Town & Country Planning Association 259,110 23,356
University of Huddersfield - 10,516
University of York (48) -
Wales Co-operative Centre 121,342 225,081
We Can Make 117,399 -
Wellbeing Support Programme - 42,000
Wessex Community Assets Ltd - 47,618
Zacchaeus 2000 Trust 25,000 75,000
Total 1,764,385 1,320,412

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9. Taxation

Corporation tax payable for the year ended 31 March 2022 was £nil (2021: £nil).

10. Programme related investments

2022 2021
£ £
Non-current assets
Community Land Trust Fund II 26,461 42,375
Communities Housing Trust 54,266 59,371
CommunityLed HousingFund 150,000 150,000
230,727 251,746
Current assets
Communities Housing Trust 2,730 -
Community Land Trust Fund I 3,750 2,065
CommunityLand Trust Fund II 8,330 -
14,810 2,065
Totalprogramme related investments at 31 March 245,537 253,811

The Foundation has four ongoing programme related investments:

11. Fixed asset investment

2022 2021
£ £
Balance at 1 April 622,515 502,525
Revaluations 71,929 119,990
Balance at 31 March 694,444 622,515

The fixed asset investment comprises funds held in CCLA’s COIF Charities Ethical Investment Fund.

12. Debtors

2022 2021
£ £
Accrued interest 739 7,201
Prepayments 9,512 7,007
Total 10,251 14,208

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13.
Creditors
2022 2021
£ £
Amounts falling due within one year
Grants payable 509,548 587,865
Programme related investment commitments 100,000 100,000
Other creditors 33,120 35,824
Accruals 26,603 50,507
Total 669,271 774,196

14. Analysis of net assets between funds

14.
Analysis of net assets between funds
Designated Fund
2022 2021
£ £
Fixed assets 925,171 874,261
Current assets 3,619,042 4,128,553
Current liabilities (669,271) (774,196)
Total 3,874,942 4,228,618

15. Financial instruments

2022 2021
£ £
Financial assets measured at amortised cost 3,594,720 4,119,481
Financial assets measured at fair value 694,444 622,515
Financial liabilities measured at amortised cost (669,271) (774,196)

Financial assets measured at amortised cost comprise all cash and cash equivalents and debtor balances excluding prepayments.

Financial assets measured at fair value comprises a fixed asset investment.

Financial liabilities measured at amortised cost comprise all creditor balances excluding deferred income.

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16. Designated funds

The designated funds, represented below, are allocated as per the reserves policy described in the trustees’ report and as per note 1(vi).

2021/2022 As at
1 April 2021

Incoming
resources

Resources
expensed

Transferred
Gains and
losses

As at
31 March
2022
Decent Affordable Homes
strategy:
Future funds 1,017,858
1,779,724
-
(2,880,326)
82,744
-
Allocated:
Phase 2 284,691
-
(308,176)
104,090
-
80,605
Covid-support fund 655,507
-
(320,662)
(110,000)
-
224,845
Phase 3 -
-
(134,828)
2,093,473
-
1,958,645
Pledged 1,466,751
-
(1,000,719)
349,278
-
815,310
Programme related
investment		 253,811
-
-
(8,274)
-
245,537
Learning & evaluation -
14,821
-
(14,821)
-
-
Running costs -
-
(466,580)
466,580
-
-
Other designated funds:
Contingency fund 550,000
-
-
-
-
550,000
Total 4,228,618
1,794,545
(2,230,965)
-
82,744
3,874,942
2020/2021 As at
1 April 2020

Incoming
resources

Resources
expensed

Transferred
Gains and
losses

As at
31 March 2021
Decent Affordable Homes
strategy:
Future funds 547,982
2,186,807
-
(1,827,759)
110,828
1,017,858
Allocated:
Phase 2 -
4,851
(344,358)
624,198
-
284,691
Covid-support fund -
-
(69,493)
725,000
-
655,507
Pledged 2,320,475
(4,851)
(906,561)
57,688
-
1,466,751
Programme related
investment		 310,203
-
-
(56,392)
-
253,811
Learning & evaluation 11,716
-
(23,110)
11,394
-
-
Running costs -
-
(465,871)
465,871
-
-
Other designated funds:
Contingency fund 550,000
-
-
-
-
550,000
Total 3,740,376
2,186,807
(1,809,393)
-
110,828
4,228,618

Donated services from Nationwide Building Society are not included in the designated fund.

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17. Related parties

The Nationwide Foundation is an independent charity, set up and funded by Nationwide Building Society (“the Society”). A legal contract called the Framework Agreement sets out the working relationship between the Society and the Nationwide Foundation and encompasses the provision of funds and donated services including office space, technology and other support. All financial donations and donated services are disclosed in the financial statements. The Society can appoint three of ten trustees. In the opinion of the board, there is no ultimate controlling party of the Nationwide Foundation.

All staff and trustees are asked annually to record any conflicts of loyalty or interest and to declare them at the start of each board and committee meeting. During the year ended 31 March 2020, one related party transaction was registered: One trustee (Saphié Ashtiany), was also a trustee of the Joseph Rowntree Foundation (JRF). In 2019/20 the Nationwide Foundation agreed to jointly fund the Frameworks Institute with JRF. The trustee was not involved any decisions relating to the grant paid.

Total aggregate compensation paid to key management personnel (the Chief Executive) amounts to £85,266 (2021: £92,958).

18. Post balance sheet events

In June 2022, a donation of £2,405,000 was received from the Nationwide Building Society. These funds were designated for the Decent Affordable Homes Strategy as per the reserves policy in the trustees’ report.

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