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2020-08-31-accounts

Registered number: 03540878 Charity number: 1069589

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

WOOLF INSTITUTE

(A Company Limited by Guarantee)

CONTENTS
Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 20
Trustees' Responsibilities Statement 21
Independent Auditors' Report on the Financial Statements 22 - 24
Statement of Financial Activities 25
Balance Sheet 26 - 27
Statement of Cash Flows 28
Notes to the Financial Statements 29 - 50

(A Company Limited by Guarantee)

WOOLF INSTITUTE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Trustees

Dr E Kessler MBE, Founder Director Lord Blair of Boughton, Chair until June 2020 - B Brenninkmeijer Schuerholz, Vice Chair Dr J Carleton Paget Lord Carlile of Berriew (appointed 29 September 2020) Rev Dr M Forward P F Halban D Leibowitz (resigned 29 September 2020) Prof J Lipner FBA (resigned 29 March 2020) Lady M Woolf (resigned 10 December 2019) S A Randeree CBE, Appointed Chair June 2020 E J Williams Rt Rev T J Stevens S Yamani J Woolf (appointed 23 March 2020)

Company registered number

03540878

Charity registered number

1069589

Registered office

Woolf Institute, Madingley Road, Cambridge, CB3 0UB

Company secretary

A Rhys-Davies

Independent auditors

Peters Elworthy & Moore, Salisbury House, Station Road, Cambridge, CB1 2LA

Bankers

CAF Bank Limited, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ

Investment advisors

Smith and Williamson, 25 Moorgate, London, EC2R 6AY

President

The Rt Hon The Lord Woolf PC CH

Page 1

WOOLF INSTITUTE

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Honorary Vice-Presidents

Rev. Dominic Fenton, Lord Hameed of Hampstead, Mr John Pickering

Royal Patron

HRH The Princess Royal

Patrons

HRH Prince Hassan bin Talal of Jordan, The Most Revd and Rt. Hon. Justin Welby, Archbishop of Canterbury Chief Rabbi Mirvis, Chief Rabbi of the United Hebrew Congregations of the Commonwealth, Cardinal Vincent Nichols, Archbishop of Westminster, Archbishop Gregorios,

Archbishop of Thyateira and Great Britain, Rev David Robertson, Free Church Moderator, Baroness Julia Neuberger, Senior Rabbi West London Synagogue, Rabbi Joseph Dweck, Spanish & Portuguese Jews' Congregation, Lord Sacks of Aldgate

Interfaith Patrons

Baroness Elizabeth Butler-Sloss GBE, Dr Richard Stone CBE

Page 2

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees are pleased to present their annual trustees’ report, together with the financial statements of the charity for the year ending 31 August 2020, which are prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The Trustees confirm that the annual report and financial statements of the charitable company comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association and 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 (FRS 102) (second edition October 2019 effective 1 January 2019).

As the charity qualifies as small under section 383, the Strategic Report and Directors’ Report required of larger companies under The Companies Act 2006 are not required.

The Woolf Institute Covid-19 Overview

The Woolf Institute’s mission has become increasingly urgent, exacerbated by continuing prejudice and conflict, especially in the wake of the COVID-19 pandemic, which has placed significant pressure on tolerance across the globe. The Institute’s work has been challenged in unexpected ways under these circumstances and already new opportunities for vital research are emerging which will help positively inform and influence communities and governments in the months ahead.

COVID-19 threatens lives, health, prosperity and our way of life. We have taken action to protect the health of our staff, students and researchers. In the months ahead, we will work determinedly, energetically and cooperatively to ensure Institute staff continue to work safely within Government COVID safety guidelines either from home or within the building, and maintain regular communication between Trustees, staff, students and supporters.

At the beginning of the UK-wide lockdown in March 2020, the Woolf Institute undertook a thorough review of its finances and the immediate and likely future impact of COVID-19 on its operations, including research projects planned and already underway, as well as pledged income and expenditure commitments. Financial projections anticipated a possible 25% reduction in income (Circa £268K) for 2020-2021 and, as a result, a phased plan was devised to deal with shortfalls identified in the Institute’s income as a result of the pandemic. The priority was to preserve cash and the Institute’s endowment funds, whilst continuing to deliver the Institute’s charitable objectives.

The impact of Government restrictions as a result of the COVID-19 crisis has led the Charity to temporarily move the majority of its activities online, whilst the physical building has been closed to staff and visitors periodically during national lockdowns and localised tier guidelines. Whilst the online provision was greatly expanded allowing the Institute to bolster its online presence over the course of the year, a small part of the charity’s research activities was suspended whilst in person interactions were prohibited (such as embedded fieldwork with different faith communities), though many moved online where viable and acceptable solutions where identified.

As an educational institution affiliated with the University of Cambridge, the Institute is continuing to follow the University guidelines, and to ensure that everything feasible is done to support all existing and incoming MPhil and PhD students, as well as residential staff and tenants.

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WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

CHAIR’S REPORT

The Woolf Institute continues to pursue a robust scholarly study of both the historical encounter between Jews, Christians and Muslims so that we can better understand and guide our society and inform and shape a more tolerant, respectful and collective future together.

The Institute successfully brings together professionals and community leaders, both secular and religious, through a variety of academic and practice-based courses that provide a framework within which people can establish common ground and constructively tackle differences. The Institute has a multi-disciplinary track record of academic research, in-house and online teaching and innovative public outreach programmes. Working closely with the University of Cambridge, it is the Institute’s combination of scholarship of the highest order with broad-based public education that makes it distinctive and a global leader in addressing one of the most pressing challenges of our time: improving the relationship between religion and society.

The Woolf Institute’s mission has become increasingly urgent, exacerbated by continuing prejudice and conflict, especially in the wake of the more recent COVID-19 pandemic, which has placed significant pressure on tolerance across the globe. The Institute’s work has been challenged in unexpected ways under these circumstances and already new opportunities for vital research are emerging which will help positively inform and influence communities and governments in the months ahead.

Reflecting on the 2019-20 academic year, I would like to take this opportunity to acknowledge the Management Team’s excellent leadership and adaptability throughout the COVID-19 pandemic during 2020 and beyond.

This year presented unique challenges to which the Institute responded quickly and commendably demonstrating the extent of its innovation by being one of the first educational Institutes to implement video-conferencing technology to host webinars, lectures and tutorials ahead of many Cambridge colleges, who rapidly followed suit. As such, the Institute has enjoyed large audience numbers and participation rates even at the height of the global pandemic, allowing its mission to continue unhindered by global restrictions. I would like to personally thank the staff, students and researchers for their vital contributions during this year, and to the entire Institute team for their resilience and excellent leadership in a particularly challenging period.

The continuing pandemic will inevitably bring further challenges for the Institute, though I am confident that we will be able to overcome them with the extremely dedicated Trustees and staff we have.

In closing, I would like to acknowledge the invaluable contributions of Trustees Julius Lipner, David Leibowitz and Lady Woolf who have been active Board Members and friends to the Institute in their capacity as advisors and Trustees. I would also like to extend my gratitude to Lord Blair, who announced his retirement as Chair of the board earlier this year, while retaining a key role as Trustee. I would like to thank Lord Blair most sincerely for his valuable contribution over the years and, in particular, his dedication to the Institute’s mission of global tolerance and understanding In addition, I would like to extend a warm welcome to our new Trustees, Jeremy Woolf and Lord Alexander Carlile. We very much look forward to collaborating with our new Trustees in the coming year.

Shabir Randeree, CBE Chairman, Woolf Institute 25/05/2021

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WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Purposes and Aims

The Trustees have paid due regard to the guidance issued by the Charity Commission in deciding what activities the charity should undertake for public benefit. The charity’s purposes as set out in the objects contained in the company’s Articles of Association are:

  1. The advancement of education by the promotion of:

The study and understanding of the beliefs, practices and histories of the Jewish, Christian and Muslim faiths; and

Ways of improving mutual understanding and respect among Jews, Christians and Muslims.

  1. The promotion of good relations between Jewish, Christian and Muslim communities (in particular by providing facilities whereby members of these faiths can work together in discussion and investigate areas of mutual concern).

The Woolf Institute aims to strengthen the ethical framework needed for meaningful political, economic and social work, as well as improve public and voluntary sector services through education, outreach and community engagement.

The Institute’s aims and objectives are set out in a five-year strategy document covering 2020-2025, which are in line with the Charity’s overall purposes and aims. The five-year strategy is reviewed at regular intervals (at least annually) by Trustees. Activities undertaken during the year align with the five-year strategy.

Ensuring our work delivers our aims

The Woolf Institute reviews its aims, objectives and activities at the end of the financial year, focusing on outcomes of its work in the previous 12 months. The review helps to ensure aims, objectives and activities remained focused on the stated purposes. The Charity Commission’s general guidance on public benefit has been referred to when reviewing aims and objectives, and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

The focus of our work

The purpose of the Woolf Institute is to serve the public good through tackling issues of religious difference with a focus on relationships between Jews, Christians and Muslims. The Woolf Institute’s vision is one in which collaborative discussion and constructive engagement foster tolerance and understanding between those of all faiths and none, overcoming prejudice and intolerance. It combines research, teaching and outreach activities that enhance understanding of key concepts of public life: community and identity, personal responsibility and social solidarity. As an independent institute working closely with the University of Cambridge and other universities, it has the expertise and flexibility necessary to combine theory, research and practice while offering world-class scholarship in a rich learning environment.

Who used and benefited from our services?

Our objectives and funding allow for research and outreach projects, online courses, face to face and online teaching and lectures involving communities and individuals both in the UK and abroad.

Further information about who benefits directly from our services is explained in the analysis of performance and achievements below. The impact of our work goes far beyond those we help directly. Most individuals that we train or engage with return to their communities, workplaces, homes or place of worship and relay their positive experiences to others. They may be teachers or faith leaders themselves who have the ability to widen the Institute’s reach.

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WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Our main activities and who we try to help are described below. All of the Woolf Institute’s charitable activities focus on improving relations between religion and society through education and are undertaken to further its charitable purposes for public benefit.

To learn more about the Woolf Institute, visit our website at www.woolf.cam.ac.uk or telephone 01223 761984.

2019-2020: A Year in Review TEACHING

During the 2019/20 year, 4 online courses were delivered:

Due to the COVID-19 pandemic, the Institute quickly adapted to host a series of innovative and accessible online broadcasts in the forms of webinars, interactive online seminars and lectures. 131 students engaged with the Institute’s online courses from multiple countries including Australia, Belgium, Bosnia-Herzegovina, Canada, China, Egypt, Hong Kong, India, Ireland, Israel, Kenya, Montenegro, Morocco, Netherlands, Norway, Pakistan, Serbia, Singapore, South Africa, Spain, Turkey, UK and USA.

Media Engagement

13th November Research Day was held at the Institute in the K C Shasha Suite and provided the opportunity for students, staff and researchers to showcase their academic work and progress. There were nineteen speakers in total, each granted five minutes to give a brief presentation, followed by a Q&A session for audience members to engage with the topics presented. The event was live-streamed globally and garnered 1,958 views overall, to a diverse audience. All presentations were digitally uploaded, attracting 3,608 views on YouTube, with individual presentations benefiting from between 200 and 1600 views.

Face-to-Face Teaching

The Woolf Institute delivers teaching as part of its mission in collaboration with the University of Cambridge and the Cambridge Theological Federation (CTF). This year, Institute staff taught over 200 students through face-toface teaching including:

One student undertaking the Muslim-Jewish Relations MPhil in collaboration with the Faculty of Asian and Middle Eastern Studies at the University of Cambridge;

Co-PhD supervision of a PhD candidate at the University of Oldenburg;

Co-supervision of a Professional Doctorate at Anglia Ruskin University / Cambridge Theological Federation

Supervision of undergraduates for the Department of Politics and International Studies (POLIS) and for the firstyear courses ‘Understanding Contemporary Religion’ for the Faculty of Divinity;

An International conference, “Strictly Observant Religion, Gender and the State”, 25-26 March 2019 at the Woolf Institute, bringing together 21 scholars working on political-religious contestations of gender and sexuality in contexts as diverse as Canada, Brazil, Israel, Germany, Malaysia and the United Kingdom;

Termly seminars at the Woolf Institute on Law and Religion, in conjunction with the Centre for Public Law and European Public Law Organisation;

The CTF one-day conference Perspectives on Judaism attended by 46 students. Sessions included ‘Understanding Judaism’, ‘Jewish prayer’ and ‘Zionism: History and Myth in the Israeli-Palestinian Conflict’;

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WOOLF INSTITUTE

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Supervision of MPhil papers as part of the Health, Medicine and Society programme at the University of Cambridge.

A Muslim-Jewish-Relations Seminar Series in the Faculty of Asian and Middle Eastern Studies, University of Cambridge;

Teaching in the Historical Sociolinguistics Summer School in Metochi, Lesbos attended by 40 enthusiastic students from Europe and the USA.

The Institute introduced two Summer Schools during 2019, which ran as part of the new MA courses for the Cambridge Theological Federation, awarded by Anglia Ruskin University. Two programmes were offered: 1) Religion and Society from the Medieval to the Modern and 2) New Neighbours: Diverse Parishes. The programme adopts a multidisciplinary approach to questions and debates around citizenship, identity, integration, cohesion, migration and discrimination within religiously and ethnically diverse communities in the UK.

RESEARCH

Due to constraints imposed by the COVID-19 pandemic, the Institute had to move classes and seminars onto online platforms. Webinars were subsequently conducted over Zoom.

Broadening the Woolf Institute’s Policy work, Dr Julian Hargreaves continued to provide academic advice to the Commission for Countering Extremism’s Secretariat and Head of Research, having been invited to join the Commission’s Expert Group.

Research projects undertaken and ongoing during the year included:

Living in Harmony: Music, Memory and Encounters between Jewish, Muslim and Christian Neighbours (Dr Merav Rosenfeld-Hadad and Dunya Habash);

Woolf Diversity Study (Previously the Woolf Tolerance Index) (Dr Julian Hargreaves);

Measures of Success: Evaluating the impact of Interfaith Dialogue (Dr Katherine O’Lone);

Religious Sisterhood - Encounters of Gender, Religion and Belonging in the UK (Dr Lea Taragin-Zeller);

Minorities in English Law (Dr Patrick Nash).

Strictly Observant Religion, Gender and the State (Dr Kessler, Dr Tobias Müller);

A full description of current and past research projects can be found at https://www.woolf.cam.ac.uk/research.

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WOOLF INSTITUTE

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Living in Harmony: Music, Memory and Encounters between Jewish, Muslim and Christian Neighbours

Generously funded by the KC Shasha Charitable Foundation, this project focuses on the cultural and social implications of musical encounters between Jewish, Muslim and Christian neighbours in historical Iraq and Syria. It examines how the role of music and musical performance created a sense of communal belonging in the past and may continue to create a sense of commonality among various faith communities in diaspora. In other words, how interactions through shared musical traditions have influenced Jewish, Muslim and Christian relations in the past and how the consideration of music and musical encounters can facilitate interfaith dialogue in the present and in the future.

Woolf Diversity Study

The Woolf Diversity Study worked closely with Survation (a data collection agency in London) during the year to survey over 11,000 people across England and Wales and analyse individual attitudes towards others based on ethnicity, nationality and religion. The Institute’s experienced scholars continued to provide academic advice to the Commission for Countering Extremism (CCE) and convened a working group to explore alternative approaches to counter-terrorism with the Metropolitan Police.

The Woolf Diversity Study surveyed 11,701 people across England and Wales and asked questions concerning their attitudes towards ethnic, national and religious diversity and their experiences of it. To bring these issues closer to home, we invited respondents to share their attitudes towards a close relative marrying someone from a different background. We also explored our lived experiences of diversity both at work and among friendship groups.

The study is the largest known study of diversity undertaken in the UK. We have the data needed to drill down to the local level, to consider a wide array of demographic and socio-economic factors and to make recommendations for future policymaking in this area.

Measures of Success: Evaluating the impact of Interfaith Dialogue

The Woolf Institute is conducting a two-year research project entitled Measures of Success: Evaluating the Impact of Interfaith Dialogue. The project is aiming to develop a set of indicators that measure the impact of direct and grassroots interreligious dialogue initiatives.

The primary research questions are as follows:

Through both research and outreach activities the project seeks to develop a theoretical framework that will inform the development of a set of reliable indicators to measure the effectiveness of interfaith dialogue initiatives. The development of such a tool will be of use to researchers, academics, policymakers and practitioners of interfaith dialogue at both the local and grassroots level.

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WOOLF INSTITUTE

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Religious Sisterhood - Encounters of Gender, Religion and Belonging in the UK

This ethnographic study focuses on the emergence of grassroots female interfaith initiatives, analysing the creative ways religious women negotiate their challenges and struggles as women of faith, together. By focusing on the emergence of Jewish-Muslim female interfaith initiatives, this study furthers the understanding of gender and religion by examining the ways women from different religious backgrounds come together as they debate, struggle and critique traditional gender ideals rooted in male leadership and authority.

Minorities in English Law

Patrick Nash is working to finish a book, British Islam and English Law, for the ‘Law in Context’ series by Cambridge University Press. The project is due for completion in 2021 and aims to place the fraught relationship between English civil law and British Islam on a more principled and practical footing. The theoretical aspect of the research analyses the two most influential models for regulating religion – liberal individualism and multiculturalism – and finds them wanting in important ways across various sectors affected by the growth of Islam. It argues for an alternative regulatory model, liberal pluralism, which focuses upon the protection of institutions and is better able to address unofficial normative systems generated by Islam and associational activity more generally within civil society.

OUTREACH

Conferences, Talks, Seminars and Panels

The Woolf Institute hosted and engaged with a diverse audience through conferences, talks, seminars and panels over the course of the financial year. These included:

Diversity in End of Life Care

The Diversity in End of Life Care Handbook, based on previous sessions of the Institute’s successful training programme of the same name, was written during the 2018/19 academic year and published in the following year in November 2019. It aims to assist healthcare workers when dealing with religious requirements and expectations of end of life care for patients of diverse backgrounds and their loved ones. In July 2019, a Diversity in End of Life Care one-day training workshop was held in Cardiff in association with the Muslim Council of Wales with 35 participants including religious funeral directors and chaplains.

Events

The Institute has taken full advantage of the campus premises as a conferencing space and events continued to attract very satisfying audience numbers in the first few months of the year. New collaborations, including those with the Ismaili Centre and the Hikma Foundation, have connected the Institute to new communities and networking opportunities. An ambitious and successful engagement events programme was developed to engage with members of the local community, faith leaders, academics, donors and students, all with the intention of broadening the Institute’s reach.

Here is a selection of the 60+ conferences, seminars and events organised during the year:

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WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Annual Research Day

Held in Cambridge hosted by the Institute via Zoom, with the purpose of:

London Research Evening

This event was generously hosted by David Leibowitz at Mischon de Reya, supported by Mohammad Khamisa and Anthony Julius. It was designed to showcase the Institute’s research work to major and principal gift donors, existing supporters and a significant number of individuals new to the Institute’s work, including the Lord Lieutenant’s office for Greater London, partners, staff and relevant clients of Mishcon de Reya.

Media Engagement

The year 2019-2020 saw a significant increase in the Institute’s digital presence, which has improved the reach and impact of its research. There has been continuous growth on Facebook and Twitter. As of 29 September 2019, there were 2,104 likes on Facebook (up from 2,088 likes in May) and 4,919 followers on Twitter (up from 4,867 in May). On Twitter, there have been on average 24k+ impressions per month. Posts on Facebook organically reached 580 people per day in August 2019 with 2,207 people following the page.

Our YouTube channel, , is regularly updated with short films presenting the work of the institute.

A television documentary was shown on the German public broadcaster SWR, featuring the research of Dr John F. Mueller on the interaction of Jewish retailers and the Christian population of Germany in the late 19[th] and early 20[th] century, during prime-time television, with 1.9 million viewers.

All presentations from 8[th] November Research Day were digitally uploaded, attracting 3,608 views on YouTube, with individual presentations benefiting from between 200 and 1600 views.

Work on podcasts continues and although audience numbers were initially relatively small, they grew significantly when the Institute partnered with The Independent newspaper. The Institute has now established the technological expertise needed to produce professional quality podcasts and we intend to bring the first series of Encounter to a close, and to seek media partnerships, starting with Naked Scientists (based in Cambridge and the most popular science podcast in the UK) in autumn 2019. It is hoped that a more strategic approach to developing an audience will significantly increase the Institute’s reach, influence, and global audience.

Publications and reviews

During the academic year, Institute affiliated lecturers and researchers published the following books and articles:

Articles

Brill and The Hague Academy of International Law; De Gruyter; Ethnic and Racial studies; Jewish History Online; Journal for the Cognitive Science of Religion; Journal of Dialogue Studies; Journal of Hindu Studies; Journal of Modern Jewish Studies; London Palgrave; Oxford Journal of Law & Religion; Oxford University Press; Political Theory; Religion, State & Society; Syracuse University Press

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WOOLF INSTITUTE

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Books

Berghahn Books, New York and Oxford; Brill; Palgrave Macmillan London and New York; Routledge, London and New York.

Volunteers

Two Erasmus volunteers generously offered their time and resources to the Institute during the year. The first volunteer was a Research Assistant at the Department of Philosophy and Religious Sciences in Faculty of Theology, Bursa Uludag University, Turkey. They joined the Woolf Institute on an Erasmus researcher and trainee scholarship, funded by Project Management Center of Uludag University until 31 May 2020. The second was a PhD student in the History of Philosophy Department at the Faculty of Theology, Bursa Uludag University, Turkey. They were also a Research Assistant in the same department and works as an Assistant Editor for Ilahiyat Studies: A Journal On Islamic And Religious Studies. Their work was essential to the creation of two photographic exhibitions, ‘Churches as Spaces of Encounter and Challenge’ and Art History from Below – the Imagery of the Cairo Genizah, working collaboratively with exhibition team members and

Policy

A senior member of the Institute was asked to join the Commission for Counter-Terrorism Expert Group, involving review of policies and research at governmental level.

The Charity organised a closed event exploring with stakeholders how to manage Holy Spaces regarded as of significant importance by more than one faith group.

FINANCIAL REVIEW

At the year-end, the Woolf Institute had net assets of £7,823,269. The overall surplus in 2019 – 2020 is £216,855 (2018-29: £412,072).

In September 2019, £16,000 was drawn down from the Endowment Fund (QW648) representing 4% of the overall fund as valued at the end of August. This was in line with the planned one withdrawal per year to fund the Willie and Jo Kessler Studentship.

The Institute did not draw down on its expendable reserves during the year, despite the global pandemic arriving in early 2020. A review of projected income and expenditure in late March 2020 identified a possible gap in funding at some point during the next 18 months due to the pandemic. The Management Team took an early decision to reduce costs to preserve cash and give the Institute the best chance of moving through this difficult period.

Accommodation income was £104,106 this year including study bedroom lettings, conference space hire and annual service charge. Commercial conferencing was curtailed extensively during the year due to the global epidemic, which perpetuated after the year end.

At the end of the financial year the Woolf Institute had £6,458,967 available in unrestricted funds, together with restricted funds of £451,385 and expendable endowment funds of £912,917. There was a net loss on investments experience in the latter part of the financial year, the value of which recovered after the year end.

Reserves Policy

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned expenditure, where this cannot be avoided. The charity presently has unrestricted funds of £6,458,967 and expendable endowments of £912,917, which is regarded as being set aside to ensure the charity has sufficient working capital at any time.

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WOOLF INSTITUTE

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

It is the policy of the charity that unrestricted funds and an expendable endowment which have not been designated for a specific use should be maintained at a level equivalent to between three- and six-months’ expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised.

Considering all funds including assets and liabilities, the charity had free reserves of -£330,179. Free reserves are unrestricted funds available for spending and are calculated by taking the total unrestricted funds of a charity and deducting any balances not available for spending (such as assets and investments).

During the last year, immediate cost savings have been identified including (but not limited to) utilities, development consultancy, cleaning, IT support and staff. In addition, contracts were retendered to reduce expenditure, conference lettings progressed, and overall expenditure reduced and controlled. Focus increased on improving small, regular donations and emphasis on collaborations with other charities and organisations where mutual goals existed resulting in charitable objectives being fulfilled at a reduced cost.

COVID-19 Financial Implications

Accounting Policy

Since the year end, the impact of Government restrictions as a result of the COVID-19 crisis has led to the charity temporarily moving the majority of its activities online, whilst the physical building was closed to staff and visitors. Whilst the online provision was expanded, a small part of the charity’s research activities were suspended whilst in person interactions were prohibited (such as embedded fieldwork with different faith communities), though many moved online where possible. At the time these financial statements were produced a national lockdown was in place requiring the majority of staff, researchers and students to work from home.

During the second half of the financial year when a UK-wide lockdown was imposed, the Woolf Institute undertook a thorough review of its finances and the immediate and likely future impact of COVID-19 on its operations, including research projects underway, pledged income, and expenditure commitments. Financial projections anticipated a 25% reduction in income (Circa £268K) for 2020/2021 and, as a result, a phased plan was devised to deal with shortfalls identified in the Institute’s income as a result of the pandemic. The priority was to preserve cash and the Institute’s endowment funds, whilst continuing to deliver the Institute’s charitable objectives.

Phase 1 looked at immediate expenditure commitments and sought to reduce the Institute’s outgoings as much as practically possible. For example, where the building was unoccupied, cleaning contracts were put on hold or hours reduced, utility contracts retendered and support contracts reduced either temporarily, or on an ongoing basis. The Institute took advantage of the Government’s furlough scheme for three staff members not able to fulfil their roles adequately from home.

The Development Office reached out to donors and grant-making organisations to discuss challenges posed to project deliverables as a result of the pandemic, agreeing a way forward that was acceptable to both the funder and the Institute.

During the same phase, all members of the senior management team took a voluntary pay cut between April and June 2020.

Phase 2 focused on the Institute’s largest cost – salaries. A staff review was conducted, and positions evaluated based on the trajectory of the pandemic at the time. It was determined that building operations were unlikely to begin to return to a pre-pandemic situation before summer 2021, at the earliest. Furthermore, it was anticipated that roles in this area would not be replaced and therefore, with sadness, two positions were made redundant, producing a further cost saving.

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WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees and Management Team also focused on generating additional income during the summer of 2020 in order to avoid implementing Phase 3.

Phase 3 was a voluntary reduction in pay for the Founder Director, three members of the Management Team and two other support staff members for a period of up to 12 months. Part of this phase has been implemented. However, with £115,000 pledged over the summer of 2020, combined with Phase 1 and Phase 2 cost saving measures, full implementation of Phase 3 was delayed.

Along with many other organisations, the charity’s investment portfolio valuation fell at the beginning of the pandemic, though has significantly improved since then with a total value of £895,637 in August 2020.

Reserves 13-Feb-20 09-April-20 14-Aug-20
Expendable Reserves £514,693 £448,785 £480,194
Willie and Jo Kessler
Masters Studentship		 £437,154 £377,115 £415,443
Total Endowments £951,847 £825,900 £895,637

Trustees reviewed and approved revised budgets and cash flow projections up until 31 August 2021. Upon review, Trustees agreed that expendable reserves could be drawn down on if required to cover a cash flow deficit. Trustees were comfortable that the Charity can continue to meet its liabilities as they fall due and continue to adopt the going concern basis in preparing the financial statements.

Principal Funding Sources

As well as academic and non-academic grants, the running costs of the Institute are also supported by fundraising events such as fundraising dinners and from the continuing support of trusts and individuals, who are listed in this report. Many supporters have generously agreed to provide ongoing support for a number of years. The resources expended in the year were in accordance with the key objectives of the Institute.

Investment Policy

Investment powers and policy

There are no specific investment powers. The Trustees have delegated investment of the expendable endowment funds to professional investment managers, Smith and Williamson Fund Managers. A total returns approach has been adopted with a cautious phased approach to investment given the current market fluctuations and uncertainties.

Investments policy

Following the investment advice from Smith and Williamson Fund Managers, the Institute is following a fundsbased solution using funds approved by the Charity Commissioners, rather than a segregated account with individual securities managed by a discretionary manager.

The table below shows the preferred asset allocation.

Strategy %
UK Equities 30.00
Overseas equities 25.00
Bonds 20.00
Property 7.50
Hedge fund / other 7.50
Cash 10.00

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WOOLF INSTITUTE (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The charity aims to grow its endowment funds so that its charitable activities can continue in spite of economic downturns or other significant events such as a global pandemic. These endowment funds will secure charitable activities of the Woolf Institute for future years, in line with its objects.

The charity considers the social, environmental and ethical impact of its investment policies.

Plans for Future Periods

Research, teaching, outreach and policy will continue to provide the bulk of the Woolf Institute’s work. Greater emphasis will be placed on generating research income through innovative academic projects, and public education. During the year, a new five-year strategy was developed by the Management Team in consultation with the Trustees and other stakeholders, covering the period 2020 – 2025, to follow on from the existing fiveyear plan. This was reviewed and approved by Trustees after the year end.

Whilst the charity’s work has been wide-reaching and impactful, it was felt that more emphasis was needed on dissemination and translation of research findings through the Institute’s public education and outreach activities, in order to tackle growing polarisation in society. The Woolf Institute’s unique position is its combination of academic excellence and timely translation of its research results into the public realm. Examples of this include its Diversity in End of Life Care training, production of guidance and materials for Religious Education teachers in schools, courses for the Foreign and Commonwealth staff and interfaith courses for those training for religious leadership. In the past, the Institute has employed a dedicated Public Education Manager and more recently tested a model where public education and policy work was delivered by research staff within their project areas. The latter model lacks continuity and does not provide sufficient resources for the work required. It also makes it more difficult to maximise synergies between public education activities. Neither model fully addresses the policy community. Therefore, the Institute created a dedicated Outreach Manager post to accelerate and coordinate Woolf results in the public space and within the policy world. Essentially, they co-ordinate activity for both our ‘bottom-up’ and ‘top-down’ routes of influence, to bring about positive change. This post was the focus of much of the Institute’s fundraising activity during 2018/19 and its success in securing funds for the appointment will have a positive impact on the Institute’s delivery of its mission in future years.

The pandemic after the year end has provided an opportunity for the Institute to modify its methods of engagement with the global community. The huge success of webinars and podcasts as part of the Institute’s outreach program has permanently and positively altered the way in which the charity engages with its audiences. They have now become a vital part of the future dissemination strategy. Whilst this is a new way of interacting with the Woolf community, the ability of researchers and staff to engage with community members face to face has been negatively impacted. When it is safe to do so, face to face engagement and activities will resume as part of a wider and more enriched outreach programme.

As described in more detail earlier in this report, the Development team is focused on generating income to fund the charity’s work and to grow endowment and non-endowment gifts, underpinning the long-term future of the Woolf Institute.

Page 14

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

The Trustees have a risk management strategy which comprises:

• The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

Woolf Institute Risk Register

Risk Area Consequences Mitigation
Board
of
Trustees
skills & experience
gaps.		 Charity loses full oversight &
development opportunities.		 Updated Articles of Association, including tenure,
in place. Keep trustee skills under review.
Recruit trustees who fill skills gap.
Pressure on key staff. Charity loses momentum as
key staff lose energy and
capacity.		 Positive management. Regular staff resource
review. Introduce support mechanisms where
possible.
One trustee is too
powerful.		 Charity
loses
ability
to
function democratically.		 Ensure key Institute functions are equally and
appropriately distributed between all members of
the senior management team. Ensure strategic
decisions at board level are not solely driven by
one trustee. No individual control over any
element
of
Governance,
HR,
Finance,
Development, or Research project development.
Insufficient
trustee
numbers.		 Charity is no longer quorate,
proceedings are invalid.		 Potential suitable trustees regularly identified by
the Nominations Committee and introduced to the
Institute’s work. List of potential trustees
maintained, and individuals regularly engaged
with relevant proposals and upcoming projects
Related
Party
Transactions
e.g.
contracts
with
the
Institute		 Charity is unduly influenced
by related parties. Charity
suffers reputational damage.		 Contracts to be regularly tendered and reviewed.
Only value for money contractors appointed
through tender returns analysis. Possible related
party connections to be established before
appointment.
Projects
make
financial loss.		 Charity
engages
in
loss
making research & public
education affecting financial
viability.		 Research Committee to appraise all potential
projects and associated costs. Reject high risk
projects. Evaluate projects retrospectively to
identify losses. Update Research Committee
appraisal criteria to avoid future loss-making
projects. Research projects approved meet
Institutes current strategy and full funding will be
available before projects commence. Accept
some of the risk as necessary to fulfil the
Institute’s purpose.

Page 15

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Project
pipeline
failures.		 Failure to attract sufficient
support for projects leads to
reduced output, funding and
profile.		 Research Committee to ensure appropriate
planning lead time. Grant funding diversification.
Work on contacts and partnerships. Use agreed
PR management strategy.
Partner problems. Charity engages in projects
with
partners,
clients
or
funders who do not share
values
so
affecting
reputation
&
academic
standing.		 Conduct due diligence. Prepare contingency PR
plan.
Competition. Charity
loses
impact
&
business to rivals affecting
reputation & resources.		 Regularly scan horizon and make contact with
funders. Diversify funding base. Raise charity's
profile.
Health
&
Safety
Incidents.		 Incident/s suggests charity
has
inadequate
H&S
procedures, with consequent
HSE involvement and action
affecting reputation & senior
staff priorities.		 Maintain written procedures, Brief staff, Secure
senior staff commitment. Monitor & test. Take
professional advice where appropriate.
Disaster Recovery. Charity loses premises &/or
IT and so unable to function
for a period affecting op
performance.		 Keep disaster recovery plan up to date. Brief staff
and contractors. Test recovery systems.
Third Party Usage. Failure to meet statutory
requirements
for
lettings
leads to closure of this
business and reputational
damage.		 Check contracts with lawyers; follow advice from
H&S and property professionals. Seek advice
from Westminster College when necessary.
Follow Cambridge University model processes.
Events. Staff resources insufficient
to deliver academic and
public events programme
leading
to
reputational
damage.		 Early pre-planning. Prioritise staff resources.
Income Shortfall. Expenditure always exceeds
income leading to heavily
depleted
endowment
reserves, reduced activity
and eventually to closure.		 Seek
support
from
Development
Council.
Implement strategy in “A case for support”. Draw
on existing, well established donor base, and
diversify where possible. Implement fundraising
and grant application strategy. Further diversify
funding sources. Progress the endowment appeal
to strengthen finances. Strengthen staff resource
for grant & fundraising. Manage in-year financial
performance. Review and reduce expenditure if
expenditure exceeds income. New activities
delayed if no clear funding plan. Ensure new
projects meet the Institutes current strategy.
Loan Repayments. Insufficient
unrestricted
funds
to
meet
loan
repayments
leading
to
continuing
deficit
funding
and eventual closure.		 Engage
Development
Council.
Ensure
fundraising and endowment attracts unrestricted
donations. Make paying back loan a priority.
Extend repayment period. Seek other easements
with lenders, if necessary.

Page 16

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Insufficient resources
to run building.		 Insufficient funds to staff and
exploit facilities in building.		 Strengthen resources and assets available to the
development
office.
Implement
fundraising
strategy, including transferring capital donors to
revenue.
Consolidate
and
engage
with
Development Council. Wherever possible,
extend outsourcing.
Investment policies. Investments
mismanaged,
under-perform or too risky
affecting
income
&
reputation.		 Finance and Audit Committee to regularly review
investment performance, agree appropriate risk
levels, and amend strategy where appropriate.
Adverse Publicity Charity
criticised
for
research, policies, reports or
actions, or for accepting
donations
from
dubious
sources, so affecting its
reputation,
academic
standing
&
donor
confidence.		 Close
senior
supervision.
Engage
Ethics
Committee. Close contacts with grant givers &
academic partners. Due diligence on donations,
research
and
outreach
partners
before
acceptance of gifts or commencing work together
& if necessary avoidance. PR monitoring and
response.
Identify, train and rehearse with
relevant spokesperson(s).
Poor Public Profile. Charity loses impact & donor
support through low profile.		 PR strategy to be regularly reviewed and adapted
to meet Institutional goals. Coordination of staff
through
PR
consultancy
and
professional
instruction of staff when engaging with media.
Public impact, outreach and PR considered for all
projects.
Cyber Risk. Charity is hacked or systems
compromised and sensitive
information
or
money
released or lost affecting its
reputation,
academic
standing
&
donor
confidence.		 Ensure all staff are sufficiently trained. Maintain
weekly systems/server back-ups and review
approval processes. Consider increased payment
firewalls. Test the system regularly.
Reportable Incidents Charity does not adhere to
duty to report incidents to
the
Charity
Commission
resulting in the Charity being
investigated
leading
to
penalty,
loss
of
donor
confidence and reputation		 Ensure all senior staff are aware of what
constitutes a reportable incident and correct
reporting procedure. Maintain register to record
all incidents along with a regularly updated list of
current reportable incidents
Reg. failures. Charity found not to comply
with
statutory
or
reg.
requirement, including data
protection
regulations,
leading to penalty, censure
& loss of donor & staff
confidence.		 Ensure adequate written policies meet all
requirements
and
are
disseminated
and
understood by staff. Undertake independent
assessments to ensure regulatory compliance.

This work has identified that financial sustainability is the major financial risk for the charity. A key element in the management of financial risk is a regular review of available funds to settle debts as they fall due, fundraising activity and academic grant activity to ensure sufficient working capital by the Trust.

Attention has also been focused on non-financial risks arising from academic research and staffing pressures. These risks are managed by ensuring accreditation is up to date, having robust policies and sound HR procedures in place.

Page 17

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Governing document

The Woolf Institute was established by charity deed on 26th November 1996 with the Charity Commission for England and Wales (No. 1059772), under the original title, Centre for Jewish-Christian Relations. It then merged with a Charitable Company limited by Guarantee (No. 1069589) and, with the approval of the Charity Commission, was incorporated at Companies House on 18th May 1998 (No. 3540878). The change of name to the Woolf Institute was approved by Companies House on 29th June 2010.

Appointment of Trustees and Directors Interests

The directors of the company are also charity Trustees for the purpose of charity law and under the company’s’ Articles are known as members of the Board. As set out in the Articles of Association, the Chair of the Trustees is nominated by the Board.

The method of recruitment and appointment of Trustees is carried out by the Board of Trustees.

There is no restriction on the maximum number of Trustees that can be appointed. The minimum number is three.

None of the Trustees has any beneficial interest in the company. All the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

During the year, no Trustee held the title to any property belonging to the charity. No other names were used by the charity during this period.

Induction and Training of Trustees

The Trustees are already qualified by being involved in or supportive of inter-faith activities or by being professional religious clerics or academics. The induction process is by presentation of information packs provided by the Charity and meetings dedicated to explaining the charity's ethos and aims.

Pay of Key Management Personnel

The pay of key management personnel is set having regard to Cambridge University and Cambridge Theological Federation analogues. This year, as in previous years, these personnel, in line with all permanent staff, received a cost of living increase of 2.5%. No key management personnel received remuneration more than £70,000 in the year.

Organisational Structure

There are no specific restrictions imposed by the governing document concerning the way the charity can operate. During the period 1 September 2019 to 31 August 2020, a change in management structure occurred. Katherine O’Lone was promoted to Outreach Manager Dr Esther-Miriam Wagner as Executive Director of the charity in July 2019, with the delegated authority to manage the day to day operations of the Institute, along with implementation of the five-year strategy. Dr Esther-Miriam Wagner is supported by a Management Team, consisting of the Company Secretary and Director of Services and Administration, Development Director and Director of Studies. She reports to Founder Director Dr Kessler.

Day to day operational decisions are made by Dr Esther-Miriam Wagner. Strategic decisions and decisions affecting the future of the charity are taken by Trustees. For example, approval of the charity’s strategic plan, Trustee appointments, risk management, budget approval and investment strategies are agreed at Board level.

Partnerships and Collaborations

Since inception, the Woolf Institute has been an Associate Member of the Cambridge Theological Federation and has an Academic Agreement with St Edmund’s College, Cambridge, signed in 2014.

Page 18

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The Woolf Institute also collaborates with the University of Cambridge’s Prince Alwaleed Bin Talal Centre for Islamic Studies, the Cambridge Commonwealth, European and International Trust and the Faculty of Asian and Middle Eastern Studies, as well as contributing to the provision of the University of Cambridge’s undergraduate and postgraduate teaching programme.

International academic cooperation has been a vital part of the Institute’s academic outreach and cooperation for over a decade. An agreement was made with the American University in Washington in 2010 to deliver an annual e-learning programme entitled Bridging the Great Divide: the Jewish-Muslim Encounter and an academic Memorandum of Understanding was signed with the Doha International Center for Interfaith Dialogue, based in Qatar, in 2012.

Financial support through grants and donations

The Woolf Institute greatly appreciates the gifts and grants that it receives in support of its activities from individuals, private companies, public bodies, trusts and foundations. We sincerely thank all of our donors who have supported the Institute through significant grants and donations in 2019/20.

A selection of organisations that have supported the Institute are:

Atkin Charitable Foundation; Exilarch’s Foundation and Dangoor Education; Harold Hyam Wingate Foundation; Headley Trust; Hikma Foundation; Humanitarian Trust; Ian Karten Charitable Trust; Kirsh Foundation; Randeree Charitable Trust; K C Shasha Charitable Foundation; Shoresh Charitable Trust; Sternberg Charitable Foundation; Spalding Trust; Wren Charitable Trust

We also acknowledge with gratitude those organisations and individuals who prefer to remain anonymous.

Fundraising practices

The Woolf Institute did not employ any professional fundraisers or commercial participators to carry out fundraising on its behalf during 2019/20. Fundraising was carried out by employees of the Woolf Institute, including the Founder and Executive Directors, the Development Director and others. Donations were sought from grant-making trusts and foundations, organisations and individuals in meetings, correspondence, mailings and via its website. Some events were also arranged which sought to secure funding for the work of the Woolf Institute and to thank and steward its donors

The Woolf Institute is registered with the Fundraising Regulator and committed to the Code of Fundraising Practice. There were no breaches of the code, nor any complaints received by the charity about its fundraising activities during this period. In addition to working according to the Code of Fundraising Practice, the Woolf Institute aims to ensure that its fundraising complies with its own Ethical, Health and Safety, Safeguarding and Data Protection policies and other relevant policies as they are introduced or updated. These may be seen at . The goal is to ensure that Institute fundraising is carried out to the highest possible standards given the resources available.

FUNDRAISING

The Woolf Institute is moving its fundraising from its previous model where funds were primarily raised and expended within the same year, or two consecutive years, to one with a balance between in-year requirements, longer term grant agreements (multi-year project funding) and endowment of long-term activities, to provide greater financial security through greater investment income resulting from the endowment(s). This will be supported by a diversification of the Institute’s income streams, primarily through teaching and training at present, and reduction of its debt against its building costs. A gift of £250,000 in October 2019 allowed one such loan to be repaid and further gifts will be sought to accelerate pay-down of the outstanding mortgage. Conferencing and accommodation income have been and will continue to be greatly reduced for some time as a result of the direct and indirect effects of the COVID-19 pandemic.

Page 19

WOOLF INSTITUTE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The effects of the COVID-19 pandemic have been and will continue to be felt in the Institute’s fundraising activities and results, alongside the impact of Brexit, from 2019/20 to at least 2021/22. This year, uncertainty surrounding Brexit negotiations and the UK’s relationship to the EU beyond the transition period led the lead researcher on a €1.5million Early Career Grant successfully secured with the Woolf Institute as host institution to decide to take the grant instead to a university in a country remaining in the EU. Further impacts on research funding may result from the remaining negotiations underway at the time of writing. Despite this, it is expected that philanthropic income, whether for short-term expenditure or long-term investment for annual income generation, will remain the Institute’s primary source of income due to the nature of its work and hoped that it will be possible to grow formal research grant income.

Supporter and alumni communications are timetabled so that a full e-newsletter is dispatched every other month and reaches approximately 2,000 contacts. The database and mailing activities, through all channels, are maintained with due regard for GDPR and associated requirements. The e-newsletters typically include 4 news items from across the range of the Institute’s activities and always include a link to update contact preferences. E-newsletters alternate monthly between a targeted message and a wide-ranging e-newsletter. They receive positive feedback and are a useful tool in introducing new people to the nature and breadth of the Woolf Institute. The Institute’s mailing lists are expanding as a result and are dynamically maintained so that communications are sent to an increasingly engaged and active audience. Response rates for the e-news are universally higher than industry average that has an open rate of less than 20% and a click rate of around 2% (data from Constant Contact metrics derived from anonymised information about their users).

In order to allow for better returns on deployment of resources, fundraising activities are focused on targeted appeals made to individuals, groups of donors, and prospective donors through meetings and communications donors and prospective donors are encouraged to take part in existing parts of the Institute’s events programme that form an integral part of delivering the Institute’s mission, such as the Living in Harmony concerts, the annual Research Day, seminars and training sessions. These give the individuals involved a more in-depth understanding of the Institute’s work, the opportunity to meet staff and beneficiaries and to see the work in action and allow the Institute to best deploy its limited fundraising resources for appropriate returns. All events are adapted as needed to be COVID-secure.

Page 20

l•VOOLF INSTITUTE {A Company Limitad by Guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2020 The Trustees Iwho are also the diredors of the Chanty for the purposes of company law} are responsible for preparing the Truslee5' Report and the finan¢ial statements in aceord8nce with applicable law and United Kingdom Accounting Standards (Unrted Kingdom Genèralty Accepted Accounting PTaGlice}. Corllpany13w requires the Trustees lo prepaTe finan¢ial stslemenls for each financial Under company law, the Trustees musl nol appiove the financial slalemenls unless they ale satisfièd that they give a true and fair view of the slal¢ ol affairs ol the Charity and of ils incoming resources and application ol resources. including ils income and expenditure, for that peiiixl. In preparing these financial slalemenls, the Trustees are iequired lo.. select suitable accounting pol￿￿eS and then apply them consistenty", observe the methods and principles of the Charrties SORP IFRS 102).. make judgments and a¢¢ounling eslimales that are reasonable and pwdent." slate whether appluble UK Accounting Standards {FRS 1021 have been followed. subject lo Sny m8lerial departures disc105ed and explained in the financial slalemenls., prepare the financial statements on the going COn￿rI) basis unless il is inappropriate to presume that the Charity will Continue in business. The Trustees are responsible for keeping adequale accounling ￿CordS that are sufficient lo show and explain the Charity's tran￿¢tionS and disclose with reasonable 8ccuracy at any lime the financial position tsl Ihe Charity and enable them lo ensure that the finan¢ial statements comply with the Companies Act 2006. They ale also responsible lor safeguardin9 the assets of the Charily and herbce lor taking reasonable steps for the prevention and delèclion of Irau¢J and other irregulalllies. Approved b order of the members of the board of Trustees and signed on ils behalf by.. Dr E Kessler MBE Trustee. Foundei and Director Dale.. Shabir Randeree CBE Trustee 2510512021 Pa9e 21

(A Company Limited by Guarantee)

WOOLF INSTITUTE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOLF INSTITUTE

Opinion

We have audited the financial statements of Woolf Institute (the 'charitable company') for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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

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

Page 22

WOOLF INSTITUTE

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOLF INSTITUTE (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' 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.

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.

Opinion 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 our 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' Report.

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

Page 23

(A Company Limited by Guarantee)

WOOLF INSTITUTE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WOOLF INSTITUTE (CONTINUED)

Responsibilities of trustees

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

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

Auditors' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jayne Rowe (Senior Statutory Auditor) for and on behalf of Peters Elworthy & Moore Chartered Accountants Statutory Auditors

Salisbury House

Station Road Cambridge CB1 2LA 27 May 2021

Page 24

WOOLF INSTITUTE

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
INCOME AND
ENDOWMENTS
FROM:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
TOTAL INCOME AND
ENDOWMENTS
EXPENDITURE ON:
Raising funds
8,9
Charitable activities
10
TOTAL
EXPENDITURE
Net (losses)/gains on
investments
14
NET
INCOME/(EXPENDIT
URE)
Transfers between
funds
19
NET MOVEMENT IN
FUNDS
RECONCILING
FUNDS:
Total funds brought
forward
Net movement in funds
TOTAL FUNDS
CARRIED
FORWARD		 Unrestricted
funds
2020
£
554,793
61,618
-
133,599
750,010
10,926
575,633
586,559
-
163,451
(65,841)
97,610
6,361,357
97,610
6,458,967		 Restricted
funds
2020
£
172,880
555,903
-
-
728,783
-
650,238
650,238
-
78,545
53,944
132,489
318,896
132,489
451,385		 Endowment
funds
2020
£
-
-
-
-
-
2,780
-
2,780
(22,361)
(25,141)
11,897
(13,244)
926,161
(13,244)
912,917		 Total
funds
2020
£
727,673
617,521
-
133,599
1,478,793
13,706
1,225,871
1,239,577
(22,361)
216,855
-
216,855
7,606,414
216,855
7,823,269		 Total
funds
2019
£
1,066,687
500,001
101,000
127,953
1,795,641
155,344
1,265,283
1,420,627
37,058
412,072
-
412,072
7,194,342
412,072
7,606,414

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 29 to 50 form part of these financial statements.

Page 25

WOOLF INSTITUTE (A Company Limited by Guarantee) REGISTERED NUMBER: 03540878

BALANCE SHEET AS AT 31 AUGUST 2020

Note
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
NET CURRENT ASSETS / LIABILITES
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
17
TOTAL NET ASSETS
CHARITY FUNDS
Endowment funds
19
Restricted funds
19
Unrestricted funds
19
TOTAL FUNDS		 68,047
120,089
188,136
(137,146)		 2020
£
7,570,965
1,658,117
9,229,082
50,990
9,280,072
(1,456,803)
7,823,269
912,917
451,385
6,458,967
7,823,269		 78,836
50,578
129,414
(387,186)		 2019
£
7,720,430
1,671,361
9,391,791
(257,772)
9,134,019
(1,527,605)
7,606,414
926,161
318,896
6,361,357
7,606,414

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Page 26

W¢)OLF INSTITUTE IA Company Limit¥d by Guarant801 REGISTERED NUMBER: 03540878 BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2020 The financial slalemenls were approved and aulhorised for issue by the Trustees arhd signed on their behalf by. Shabir Randeree CBE Trustee Dr E Kessler MBE Trustee, Founder and Director Dale.. 2510512021 The nol?s on pages 29 10 50 form part of these financial slalemenls. Page 27

WOOLF INSTITUTE

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
21
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash transferred (to)/from investment portfolio
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of borrowing
Loan interest payable
NET CASH USED IN FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
22		 2020
£
243,812
133,599
(1,924)
(257,786)
(126,111)
(27,828)
(20,362)
(48,190)
69,511
50,578
120,089		 2019
£
310,633
127,953
(15,428)
(356,604)
(244,079)
(27,831)
(20,543)
(48,374)
18,180
32,398
50,578

The notes on pages 29 to 50 form part of these financial statements

Page 28

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. GENERAL INFORMATION

The Company is a company limited by guarantee. The members of the Company are the trustees as named on page 1. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Company.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 (FRS 102) second edition October 2019 (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Woolf Institute 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.

2.2 GOING CONCERN

Since the year end, the impact of Government restrictions as a result of the COVID-19 pandemic has meant that the charity has continued to operate the majority of its activities online, whilst the physical building was closed to the majority of staff and visitors. The online provision continued to be expanded and a small part of the charity’s research activities, which were temporarily suspended, were able to resume online. At the time these financial statements were approved restrictions had begun to lift once again, and employees had started to return to the building in a COVID secure way. Active enquiries had been received for in person conferences and meetings from September 2021, with provisional bookings taken. Over 60 million people in the UK had received their first vaccination and concern had started to abate over the COVID Indian variant, which the most widely used vaccines seemed to protect against. Further restrictions seem likely to be lifted over the summer paving the way for a return to pre-pandemic activities.

In light of the circumstances, the Trustees have prepared and approved budgets and cash flow projections up until 31 August 2022. These include assumptions of improved income from the previous year. The Charity has expendable endowments fund which could be drawn down on if required to cover the cash deficit. The Trustees are therefore comfortable that the Charity can continue to meet its liabilities as they fall due and continue to adopt the going concern basis in preparing the financial statements.

The balance sheet shows net current assets of £50,990 at 31 August 2020.

Page 29

WOOLF INSTITUTE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (CONTINUED)

2.3 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Donation income is recognised when received or before receipt if it becomes reasonably certain that the donation will be received and the value of the income can be reliably measured.

Where rent is received in advance by the Charity under long term lease, the deferred income is discounted to present value and the credit is recognised as donation income. The unwinding of this discount is recognised within interest payable and similar charges.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 30

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (CONTINUED)

2.5 FOREIGN CURRENCIES

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives .

Depreciation is provided on the following bases:

2.7 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.

Investment property is carried at fair value determined annually by the Trustees based on advice received. Fair values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.

2.8 DEBTORS

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

2.9 CASH AT BANK AND IN HAND

Cash at bank and 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.

Page 31

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (CONTINUED)

2.10 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.11 FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 OPERATING LEASES

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.13 PENSIONS

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

2.14 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds represent an expendable endowment held to cover any deficit arising on unrestricted funds.

Investment income, gains and losses are allocated to the appropriate fund.

Page 32

WOOLF INSTITUTE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Tangible fixed assets are recognised at cost, less accumulated depreciation. Depreciation is charged over the estimated useful life of the asset to its estimated residual value. The estimated useful life of the property is split between the components of the buildings, between 25 and 121 years.

Deferred income due in more than 1 year is discounted at a market rate of interest identified as 3%, this rate is deemed to be the likely borrowing rate the charity could get on a commercial basis.

Page 33

WOOLF INSTITUTE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2020
£
Donations
554,793
TOTAL 2019
412,095		 Restricted
funds
2020
£
172,880
241,146		 Endowment
funds
2020
£
-
413,446		 Total
funds
2020
£
727,673
1,066,687		 Total
funds
2019
£
1,066,687

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2020
£
Course and grant income
61,618
TOTAL 2019
44,058		 Restricted
funds
2020
£
555,903
455,943		 Total
funds
2020
£
617,521
500,001		 Total
funds
2019
£
500,001

6. INCOME FROM OTHER TRADING ACTIVITIES Income from non charitable trading activities

Unrestricted
funds
2020
£
Fundraising events
-
TOTAL 2019
101,000		 Total
funds
2020
£
-
101,000		 Total
funds
2019
£
101,000

Page 34

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

7. INVESTMENT INCOME

Unrestricted
funds
2020
£
Accommodation income
104,106
Dividend and distributions
29,347
Interest
146
133,599
TOTAL 2019
127,953		 Total
funds
2020
£
104,106
29,347
146
133,599
127,953		 Total
funds
2019
£
103,309
24,271
373
127,953

8. EXPENDITURE ON RAISING FUNDS

COSTS OF RAISING VOLUNTARY INCOME

Unrestricted
funds
2020
£
General fundraising expenses
6,865
Building fund fundraising expenses
-
Wages and salaries
-
Social security costs
-
Pension costs
-
6,865
TOTAL 2019
92,856		 Restricted
funds
2020
£
-
-
-
-
-
-
(11,733)		 Total
funds
2020
£
6,865
-
-
-
-
6,865
81,123		 Total
funds
2019
£
4,681
(11,733)
75,647
8,358
4,170
81,123

Page 35

WOOLF INSTITUTE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. EXPENDITURE ON RAISING FUNDS (CONTINUED) FUNDRAISING TRADING EXPENSES

Unrestricted
funds
2020
£
Fundraising events expenses
4,061
TOTAL 2019
71,790		 Total
funds
2020
£
4,061
71,790		 Total
funds
2019
£
71,790

9. INVESTMENT MANAGEMENT COSTS

Investment management fee
TOTAL 2019
ANALYSIS OF EXPENDITURE BY ACTIVITIES
Direct
costs
2020
£
Educational programmes (see below)
659,997
TOTAL 2019
848,576		 Endowment
funds
2020
£
2,780
2,431
Support
costs
2020
£
565,874
416,707		 Total
funds
2020
£
2,780
2,431
Total
funds
2020
£
1,225,871
1,265,283		 Total
funds
2019
£
2,431
Total
funds
2019
£
1,265,283
Educational programmes (see below)
TOTAL 2019

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Total expenditure on charitable activities attributable to restricted funds is £477,646 (2019: £629,195).

Page 36

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

Analysis of direct costs

Educational
programmes
2020
£
Staff costs
340,927
Depreciation
151,389
Direct costs
121,909
Interest payable
45,772
659,997
TOTAL 2019
848,576
Analysis of support costs
Educational
programmes
2020
£
Staff costs
350,674
Support costs
190,128
Governance costs
25,072
565,874
TOTAL 2019
416,707		 Total
funds
2020
£
340,927
151,389
121,909
45,772
659,997
848,576
Total
funds
2020
£
350,674
190,128
25,072
565,874
416,707		 Total
funds
2019
£
453,815
152,174
171,832
70,755
848,576
Total
funds
2019
£
148,510
242,311
25,886
416,707

Page 37

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

11. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
578,586
59,827
53,188
691,601		 2019
£
583,227
56,102
51,171
690,500

The average number of persons employed by the Charity during the year was as follows:

Executive
Academic
Administration		 2020
No.
5
5
7
17		 2019
No.
5
8
4
17

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2020 2019
No. No.
In the band £60,001 - £70,000 1 2

Key management personnel of the Charity comprises the Trustees, the Founder Director, the Executive Director, the Director of Development, the Director of Studies and Director of Services and Administration. The total employment benefits of key management personnel, including employer's pension contribution and employer's national insurance were £293,961 (2019: £299,442).

During the year, one Trustee received remuneration of £41,634 (2019: £61,375) in respect of his role as Founder Director. This payment has been exceptionally approved by the Charity Commission.

During the year, five Trustees (2019: one Trustee) received reimbursement of expenses of £5,051 (2019: £2,261).

During the year, total amounts paid as settlements for leaving office was £NIL (2019: £NIL).

Page 38

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. NET INCOME/(EXPENDITURE)

This is stated after charging:

2020 2019
£ £
Depreciation of tangible assets - owned by the Charity 151,389 152,174
Auditors' remuneration - audit 8,000 8,000
Auditors' remuneration - other services 17,072 17,886

13. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 September 2019
Additions
At 31 August 2020
DEPRECIATION
At 1 September 2019
Charge for the year
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Leasehold
property
£
7,844,162
-
7,844,162
255,122
120,675
375,797
7,468,365
7,589,040		 Fixtures and
fittings
£
173,798
-
173,798
48,964
27,644
76,608
97,190
124,834		 Books &
equipment
£
96,621
1,924
98,545
90,065
3,070
93,135
5,410
6,556		 Total
£
8,114,581
1,924
8,116,505
394,151
151,389
545,540
7,570,965
7,720,430

Page 39

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. FIXED ASSET INVESTMENTS

COST OR VALUATION
At 1 September 2019
Additions
Disposals (sales proceeds £525,304, loss
£18,331)
Revaluations
Net movement in cash
AT 31 AUGUST 2020
NET BOOK VALUE
AT 31 AUGUST 2020
AT 31 AUGUST 2019		 Listed
investments
£
911,938
485,298
(543,634)
(3,402)
-
850,200
850,200
911,938		 Investment
property
£
745,200
-
-
-
-
745,200
745,200
745,200		 Cash at
brokers
£
14,223
-
-
-
48,494
62,717
62,717
14,223		 Total
£
1,671,361
485,298
(543,634)
(3,402)
48,494
1,658,117
1,658,117
1,671,361

Page 40

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. FIXED ASSET INVESTMENTS (CONTINUED)

All fixed asset investments are held in the UK.

INVESTMENT RISK

All investments are listed on recognised stock exchanges. Day-to-day management of the investments was delegated by the Trustees during the year to Smith & Williamson.

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open-ended investment companies are at bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in financial review and investment policy and performance sections of the Trustees' Annual Report.

The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Charity's investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

15. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income		 2020
£
3,355
55,000
9,692
68,047		 2019
£
-
65,000
13,836
78,836

Page 41

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2020
£
29,632
-
19,065
16,260
762
71,427
137,146		 2019
£
28,686
250,000
11,999
16,730
-
79,771
387,186

Bank loans due within one year are secured by a fixed charge over the Charity's assets. The loan is repayable over 20 years with interest being charged at 2.25% above the Bank of England base rate.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans
Accruals and deferred income
Included within the above are amounts falling due as follows:
BETWEEN ONE AND TWO YEARS
Bank loans
BETWEEN TWO AND FIVE YEARS
Bank loans
OVER FIVE YEARS
Bank loans		 2020
£
608,586
848,217
1,456,803
2020
£
30,533
97,239
480,814		 2019
£
638,804
888,801
1,527,605
2019
£
29,614
94,312
514,878

Bank loans due in more than one year are secured by a fixed charge over the Charity's assets. The loan is repayable over 20 years with interest being charged at 2.25% above the Bank of England base rate.

Page 42

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. DEFERRED INCOME

Deferred income represents the balance of rental income received in advance from the investment property.

Deferred income at 1 September 2019
Amounts released from previous periods
DEFERRED INCOME AT 31 AUGUST 2020		 2020
£
928,203
(38,255)
889,948		 2019
£
966,457
(38,254)
928,203

Page 43

WOOLF INSTITUTE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
General funds
ENDOWMENT FUNDS
Appeal fund
Willie and Jo Kessler Masters Studentship
RESTRICTED FUNDS
Research grants and projects
Student bursaries
TOTAL OF FUNDS		 Balance at 1
September
2019
£
6,361,357
495,148
431,013
926,161
318,896
-
318,896
7,606,414		 Income
£
750,010
-
-
-
689,896
38,887
728,783
1,478,793		 Expenditure
£
(586,559)
(1,408)
(1,372)
(2,780)
(588,856)
(61,382)
(650,238)
(1,239,577)		 Transfers
in/out
£
(65,841)
11,897
-
11,897
31,449
22,495
53,944
-		 Gains/
(Losses)
£
-
(11,636)
(10,725)
(22,361)
-
-
-
(22,361)		 Balance at
31 August
2020
£
6,458,967
494,001
418,916
912,917
451,385
-
451,385
7,823,269

Page 44

WOOLF INSTITUTE (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19. STATEMENT OF FUNDS (CONTINUED)

Appeal fund

The appeal fund was launched in 2002 and represents expendable donations received to help establish and secure the Woolf Institute's financial future. These funds are expendable at the discretion of the Trustees.

Willie and Jo Kessler Masters Studentship

This represents funds received as an expendable endowment to support students enrolled on the MPhil presently known as the MPhil in Middle Eastern Studies: Muslim - Jewish Relations

Research grants and projects

This funds represents grants received for research projects.

Student bursaries

This fund represents donations received to support student bursaries for those wishing to study at the Institute.

Public Relations

This fund represents donations received to raise the profile of the Institute.

Building Fund

The building fund represents monies to support the purchase of land and development of a new building for a permanent home for the Woolf Institute.

Transfers

There were a small number of transfers to clear overdrawn or completed restricted funds at the year end. There is a transfer from general reserves to bring the Endowment fund in line with the Investment portfolio.

Page 45

WOOLF INSTITUTE (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
General funds
ENDOWMENT FUNDS
Appeal fund
Willie and Jo Kessler Masters Studentship
RESTRICTED FUNDS
Research grants and projects
Student bursaries
Building funds
Public relations		 Balance at
1 September
2018
£
6,349,031
637,921
-
637,921
164,073
-
-
43,317
207,390		 Income
£
685,106
-
413,446
413,446
661,132
35,520
437
-
697,089		 Expenditure
£
(800,734)
(1,365)
(1,066)
(2,431)
(529,943)
(57,492)
11,733
(41,760)
(617,462)		 Transfers
in/out
£
127,954
(148,116)
(11,717)
(159,833)
23,634
21,972
(12,170)
(1,557)
31,879		 Gains/
(Losses)
£
-
6,708
30,350
37,058
-
-
-
-
-		 Balance at
31 August
2019
£
6,361,357
495,148
431,013
926,161
318,896
-
-
-
318,896

Page 46

WOOLF INSTITUTE (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR (CONTINUED)

TOTAL OF FUNDS

Balance at
1 September
2018
£
7,194,342		 Income
£
1,795,641		 Expenditure
£
(1,420,627)		 Transfers
in/out
£
-		 Gains/
(Losses)
£
37,058		 Balance at
31 August
2019
£
7,606,414

Page 47

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT PERIOD

Unrestricted
funds
2020
£
Tangible fixed assets
7,570,965
Fixed asset investments
745,200
Current assets
132,136
Creditors due within one year
(137,146)
Creditors due in more than one year
(1,456,803)
Inter-fund loans
(395,385)
TOTAL
6,458,967		 Restricted
funds
2020
£
-
-
56,000
-
-
395,385
451,385		 Endowment
funds
2020
£
-
912,917
-
-
-
-
912,917		 Total
funds
2020
£
7,570,965
1,658,117
188,136
(137,146)
(1,456,803)
-
7,823,269

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR PERIOD

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Inter-fund loans
TOTAL		 Unrestricted
funds
2019
£
7,720,430
745,200
63,414
(387,186)
(1,527,605)
(252,896)
6,361,357		 Restricted
funds
2019
£
-
-
66,000
-
-
252,896
318,896		 Endowment
funds
2019
£
-
926,161
-
-
-
-
926,161		 Total
funds
2019
£
7,720,430
1,671,361
129,414
(387,186)
(1,527,605)
-
7,606,414

Page 48

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 21. ACTIVITIES

Net income for the period (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease in debtors
Decrease in creditors
Interest payable
NET CASH PROVIDED BY OPERATING ACTIVITIES
22.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
TOTAL CASH AND CASH EQUIVALENTS
23.
ANALYSIS OF CHANGES IN NET DEBT
At 1
September
2019
£
Cash at bank and in hand
50,578
Debt due within 1 year
(278,686)
Debt due after 1 year
(638,804)
(866,912)		 2020
2019
£
£
216,855
412,072
151,389
152,174
22,361
(37,058)
(133,599)
(127,953)
-
51,380
10,789
4,564
(41,570)
(186,307)
17,587
41,761
243,812
310,633
2020
2019
£
£
120,089
50,578
120,089
50,578
Cash flows
At 31
August 2020
£
£
69,511
120,089
249,054
(29,632)
30,218
(608,586)
348,783
(518,129)

Page 49

(A Company Limited by Guarantee)

WOOLF INSTITUTE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

24. PENSION COMMITMENTS

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £53,188 (2019 - £51,171). At the year end contributions not paid over to the scheme amounted to £NIL (2019 - £NIL).

25. OPERATING LEASE COMMITMENTS

At 31 August 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2020
£
1,708
1,708
3,416		 2019
£
1,708
3,416
5,124

26. RELATED PARTY TRANSACTIONS

The Charity previously received a loan of £250,000 in 2017 from a company controlled by a close family member of a Trustee. This loan was interest free and repayable in four years from the date of the loan. The loan was repaid in the year.

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