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2021-03-31-accounts

Changing Lives Together

Trustees’ Annual Report and Accounts 2020/21

Registered Name: Community Foundation in Wales Registered Company Number: 03670680 Registered Charity Number: 1074655

Contents

  1. Welcome

  2. How we work

  3. We are good partners

  4. We care about the people we work with 12. We make a difference

  5. A look back at 2020/21

  6. The year ahead

  7. Our trustees

  8. Financial review

  9. Covid-19

  10. Objectives and activities

  11. Independent Auditor Report 40. Consolidated statement of financial activities 41. Consolidated and charity balance sheet 42. Consolidated statement of cash flows 43 Notes to the Financial Statements

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

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Croeso

Community Foundation Wales has never experienced such challenging circumstances in its 20 year history but, out of adversity, we have without question played an important role in Wales’ response to the Coronavirus pandemic. Our ability to connect donors, funders and community groups enabled us to bring additional funding to Welsh communities when and where it was most needed.

Our grant-making for the year totalled £5.5million, an astonishing twofold increase in our previous annual total. This has enabled us to support more than a thousand groups as they struggled through the pandemic.

Partnership is embedded in how Community Foundation Wales works and this year, more than ever, this approach has been at the heart of our work. We have worked alongside donors and founders and have built closer

working relationships with Welsh Government and UK Government. I would like to pay tribute to our colleagues at UK Community Foundations and National Emergencies Trust, both of whom were vital in helping us to respond to the needs of Welsh communities during the pandemic.

In parallel to our emergency funding, we have continued to work on a number of longer term projects to help communities in Wales emerge from the Pandemic. We have been working with the Charity Commission and Welsh Government to launch “Revitalising Trusts”, a project to revive dormant trusts and to release funds for Wales. We also continue to work with a number of partners to strengthen Wales’ ability to secure funding from UK trusts and foundations.

Our endowment funds now stand at £19 million, having recovered from the fall in the market at the start of the pandemic. Therefore, we are making good progress to achieve our strategic target of a £30 million endowment fund to provide sustainable funding for generations in Wales.

We are very fortunate that the Foundation continues to benefit from a strong Board with representation across Wales. I should like to thank my fellow Trustees for their hard work and support during such an unprecedented year. We welcomed four new Trustees to the Board this year, each bringing new skills and experience which will be invaluable going forward. I am also pleased to welcome Gaenor Howells as an Ambassador for Community Foundation Wales.

No one knew what lay ahead when lockdown happened on March 23, 2020. There was fear, uncertainty and a realisation that life would never be the same again.

What amazed me was the speed at which Richard Williams and his team responded and adapted to this new situation, and the speed at which they delivered grants to communities across Wales. Rather than a Grants Panel once a quarter there were two or three a week. Rather than scaling down some of our external work, the whole team showed great flexibility to work together to deliver the enormous grants response needed. Thank you all for your incredible work. I would also like to thank Tanwen Grover, who chairs the Grants Committee, and the Trustees who sit on this Committee for all their guidance and encouragement they gave to help the team deliver grants to Welsh communities.

For many, this year has been one of reflection, recognising the important things in life and how to help others. A sense of community spirit which had seemed to be lost but fortunately rediscovered. We all have a role in helping our communities to thrive. There are many ways in which you can support Community Foundation Wales be that setting up a fund as a donor, whether on an individual or corporate basis, joining “Friends of Community Foundation Wales”, leaving a legacy in your Will, getting involved as a volunteer or by simply promoting the grants we have available to distribute. We would be very pleased to hear from you.

Again, a big thank you to everyone who has contributed and supported us during this year - diolch o galon!

Alun Evans

Chair, Community Foundation Wales

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How we work

Our staff and trustees review our values to ensure they are relevant and aligned with our purpose. These values underpin everything that we do:

We work to an Ethical Policy and also an Ethical Investment Policy which states that our investment portfolio should have no direct exposure to companies which have significant holdings in tobacco, arms, gambling and pornography investments. We are a Living Wage employer and a Living Wage Funder.

We protect the information you give us. We work within GDPR regulations and our Privacy Notice sets out how Community Foundation Wales uses and protects information that you give us. This is published on our website at https:// communityfoundationwales.org.uk/privacy-policy/

We are serious about high standards and promote good fundraising practice. We are registered with the Fundraising Regulator and work to the Code of Fundraising Practice.

If you would like to raise a complaint we can assure you that your concerns will be taken seriously and addressed and responded to as quickly as possible.

We are accredited through UK Community Foundations.

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Value #1

We are good partners

Success in working in partnership is essential to the ability of Community Foundation Wales to connect funders and donors with community that need support.

We have a wide range of long-standing and new partnerships in place with donors and funders, community groups, local authorities, businesses, Government, investment bankers, professional advisers and other organisations.

We would like to share some of these partnership success stories and encourage other organisations to join us in our work to strengthen communities in Wales.

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A crucial partnership in responding to the pandemic

The National Emergencies Trust launched the Coronavirus Appeal in response to the pandemic and established a grant-making agreement through UK Community Foundations, which led to partnership with Community Foundation Wales.

This was a substantial boost to our efforts to help fund the sector in Wales through the crisis and was the start of an agile, high-paced response.

Mhairi Sharp , Chief Executive of the National Emergencies Trust , said:

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Community Foundation Wales have been a crucial partner to the National Emergencies Trust and part of a wider group of Foundations who have collectively supported over 13,000 charities across the UK over the past 15 months.

Within 72 hours of receiving National Emergencies Trust funding Community Foundation Wales had funds on the ground making a difference at village and street level. On the March 26, just three days into the first national lockdown Cymru Creations received a grant of £2,000 to provide food and essentials, this marked the start of an indefatigable year of agile grant making for the team at Community Foundation Wales.

The dedication of the Community Foundation Wales team has resulted in meals, shelter, safety, support and advice for communities across Wales, the work of the Foundation and it’s network has undoubtedly saved lives and supported the nation during it’s time of need.

New connections

Admiral and Welsh Water were among the leading Welsh businesses who were quick to support our Coronavirus appeal, ensuring that community groups in Wales were well-supported through the pandemic.

During the year we started new partnerships with Castle Dairies, who are contributing a percentage of their annual profits to support STEM education opportunities for young people, and First Great Western , who are supporting projects in communities living alongside their rail services.

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Revitalising trusts

Welsh Government and the Charity Commission are partnering with Community Foundation Wales to deliver the Revitalising Trust programme to release £25m that is lying idle in dormant accounts.

The Commission will be identifying charities in Wales that are either inactive (meaning they have had no income or expenditure over the last five years) or ineffective (having spent less than 30% of their total income over the last five years).

Trustees will then have an option to act – with support to help the charity get back up and running if needed. Otherwise the funds are redeployed to causes in line with the aims of the dormant charity or the trust is transferred to Community Foundation Wales to be managed for the long-term benefit of local communities.

Jane Hutt, Deputy Minister and Chief Whip of Welsh Government , said:

“

The Welsh Revitalising Trusts programme will help charities and trusts to bring vital resources back into play in supporting our communities in Wales.

The programme has also seen us build on our existing relationship with Community Foundation Wales, an excellent organisation which has delivered funding from the National Emergencies Trust to support organisations throughout the pandemic.

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Working with STEP

We work closely with partners in STEP, the professional body for lawyers, accountants, financial advisors and other practitioners that help families plan for their futures.

In November our manager, Donor-Advised Giving, Katy Hales, joined STEP’s Spotlight conference for a session on Effective Giving Locally, looking at the crucial role community foundations play in working with philanthropists in the UK, USA and Canada.

It was a great honour for Community Foundation Wales, with the panel also including Robert Kleinman, from the Jewish Community Foundation of Montreal, and Lorie Slutsky, Chief Executive of the New York Community Foundation.

Wales based investment

Our endowment funds are how we continue to fund groups in Wales, today and for future generations.

Our funds are managed by our investment management partners – Brewin Dolphin, based in Cardiff city centre, and CCLA, who manage investments for charities, religious organisations and public sector.

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Value #2

We care about the people we work with

We understand how important it is to feel valued, to know that others respect your views and trust your judgement.

Showing compassion helps us to build stronger, long lasting relationships, with our donors and funders, with the groups and individuals we fund, with our stakeholders and with our team.

The last twelve months have highlighted more than ever before the need to show kindness to others, to listen and to help whenever possible.

We would like to tell you about some of ways in which we have supported those we have worked with to ensure they know how much we appreciate them.

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Wales Coronavirus Resilience Fund

One of the words that defined 2020 is ‘pandemic’ – it literally means affecting everyone. In Wales, the Coronavirus pandemic hit just weeks after many of our communities had been hit by widespread flooding.

People were suffering, not just physically due to ill health, but also emotionally, socially and economically. We strongly believe it is our responsibility to show compassion and to offer protection to those that are most vulnerable in our society.

Our Wales Coronavirus Resilience Fund was the vehicle to do that. It was the place where those that were able could come together to show their collective support.

We are grateful to National Emergencies Trust, Admiral, Waterloo Foundation, Principality, Welsh Water, Track 2000 and numerous other individuals and organisations for helping us to build a fund which distributed in excess of £5.5

million to the incredible army of charities and groups across Wales who have worked tirelessly to help people within their communities at such a challenging and ever-changing time.

We knew that groups could better use the time spent writing an application to focus on direct service delivery so we made our grant-making process as accessible and flexible as possible.

In most cases we were able to turn applications around within a week, thanks to the incredible dedication of our team and our Trustees.

We adapted our criteria as the pandemic progressed, offering funding to those continuing to respond to the emergency situation as well as to those looking ahead to the challenges of recovering from such an overwhelming global event. The needs of those we were supporting was always at the forefront of our thinking.

Adapting to the new normal

As was the case for many organisations, countrywide lockdown necessitated that the team work from home with immediate effect. It took us a few days to settle in to this new way of working and to ensure everyone had everything they needed to work safely and comfortably with access to equipment and files, etc.

We soon discovered what it means to be stuck at home, with computer screens being our only way of contact – home working and home schooling/caring via Teams and Zoom, very often at the same time, was never going to be easy.

Imagine then, what it must be like to join an organisation following a video interview, without ever having met anyone on the team. We recruited two new members of staff and also three trustees during this time.

The health and well-being of our team has always been high on our agenda, and it’s difficult to know if you are doing a good job, especially if you don’t really know some members of the team.

To try and maintain a good work life balance and look after the health and wellbeing of the team we:

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Rhiannon Walsh , a Grants Officer who joined the team in October 2020 said:

“

One of the things that has struck me about working at the Community Foundation Wales is how healthy and positive the work environment is. Since my first day in October, I have been impressed with not only the emphasis that the organisation has put on mental health and wellbeing, but also the actions that have been taken to put it into practise. In my eight years in the Third Sector and Education Sector, I have never experienced a workplace that has made me feel so valued, understood, and listened to.

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Loud and Clear

In September 2020, we published our Loud and Clear report, bringing together the views of more than 100 groups in Wales on how Community Foundation Wales and other funders can most effectively support their work.

This report was the result of our team going out and meeting with groups and charities from across Wales, talking and most importantly, listening to what they had to say.

Time and again, we heard the same messages – they want more core funding to enable them to exist and want longer-term partnerships with funders.

What they don’t want is the constant merry-go-round of having to submit short term funding applications that suck up time and energy that could be better used actually running services to help people.

Here is what a couple of the groups we spoke to told us: North Wales Women’s Centre Cylch Meithrin Wyddgrug “Funding is an on-going challenge. Insecurity “There’s plenty of funders who can help us to is affecting turnover of staff – people leave if buy equipment and run projects. they are insecure. Our cupboards are bursting with toys and things Sustainability is our biggest issue – to run activities. But we’ve no money to turn not just money. the lights on and pay insurance and salaries. Short-term funding doesn’t allow Finding core funding to keep us open is continuity and impacts what the our biggest challenge.” community expects from us.” oO+C

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Looking ahead

As we return to ‘business as usual’ and begin to open our established funds again, it would be remiss of us not to use this learning to inform our grant-making.

Wherever possible we have reworked the criteria of our funds to offer both core and multi-year funding. We have made changes to our internal processes to ensure that we are able to offer multi-year funding without impacting those projects for whom one year funding is required.

If, like us, you care deeply about Wales and its people and would like to work with us to give back in any way, you can make a donation by visiting our website or if you would like to volunteer we have a number of opportunities available - we would love to hear from you.

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Value #3

We make a difference

We aim to make a difference with everything we do.

This might be through the funding we distribute, the support we provide to third sector organisations or the guidance we give to philanthropists to donate to the causes they are passionate about, ensuring the maximum impact in the areas they care most about.

This year has been different in many ways and we have adapted how we work and the type of grant support we offer to meet the ever-changing needs of communities across Wales.

We have listened to what the third sector have told us and adapted how we work to make the biggest difference we can with the funding we have available.

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A year like no other

The pandemic brought new and increased challenges as lockdown was announced, businesses had to close their doors, workers struggled to make ends meet having been furloughed or laid off and isolation became the ‘norm’ for everyone.

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Supported over
1,000
groups
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Our usual funds were all replaced with the ‘Wales Coronavirus Resilience Fund’ which was launched on the March 23, 2020 for grass roots community groups and charities working tirelessly to adapt their service to support those most vulnerable to the impact of the virus.

Adapting to meet changing needs

Throughout the year we listened to what organisations required to keep going and adapted the criteria to meet those changing needs. To ensure we were cognizant of the challenges groups were facing we ran a survey during the first few weeks of the pandemic.

The groups that responded reported on average a 62% rise in demand for support.

Food and essential supplies for families on low incomes was one of the biggest needs.

29% of all grants given went to projects tackling food poverty and food delivery to vulnerable people.

The survey also highlighted the struggles for groups that were usually self-sufficient with strong income from fundraising events and charity shops. Those organisations saw income fall to zero overnight as charity shops closed and all events were cancelled.

We funded a number of these groups with a grant to support core costs to enable services to continue to those that require care or support at such a critical time in their lives.

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Awarded over
£5.5m in funding over the last
12 [months]
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The Black Lives Matter campaign in May 2020 drew attention to Black, Asian and Minority Ethnic (BAME) cultures and highlighted the significant impact that Coronavirus was having on their lives.

We had already reached out to this sector, offering grants to help groups communicate the Government messages to save lives via leaflet drops, phone calls and online support. We will be building on this and continuing to work with these groups to improve our understanding and representation of diverse cultures.

Looking forward

In September we adapted our funding to address the change in focus we were seeing in applications. We closed our Wales Coronavirus Resilience Fund to open our Respond and Recover Fund which was supporting organisations delivering emergency response in local lockdown areas but also available to organisations focused on recovering from the crisis to develop self-sufficiency and resilience, on solutions rather than on symptoms.

During the last quarter of this financial year we have used the learning gained from the findings of the Loud and Clear Report to adapt the funding we have available for next year to champion core and multiyear funding for grass roots organisations.

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A snapshot of who we have helped

Oasis Cardiff

Oasis Cardiff supports refugees and asylum seekers to integrate and be involved in the local community of Cardiff and wider afield.

A grant from the Wales Coronavirus Resilience Fund enabled them to provide daily, culturally appropriate meals and food parcels during the lockdown to those that would usually attend the centre.

Morrison, Volunteer

“I left Sudan when I was 18 years of age due to the war that had broken out. The journey was really difficult.

I was with my friend and he got killed on the way. Losing my friend was so hard and the things I have been through during the journey is something you can barely forget in your mind.

Oasis helped me rebuild myself, it’s like home for me. I am so grateful to be able to repay back the community for what they have done for me.”

Reynette Roberts, Director

“Food is essential and is what brings people together and makes people feel the same as each other.

When restrictions have allowed we have also used our adapted car park with our food trailer and a marquee to allow clients to sit to improve mental health and allow social interaction.

Many have commented on how much it has helped them to have a safe space to come to during this difficult time.”

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MS Society Cymru

The MS Society Cymru moved quickly to support people with Multiple Sclerosis (MS) when the Covid-19 pandemic hit in March 2020. Many of these people were “shielding” due to being deemed high risk, whilst others self-isolated due to mixed messages and confusion.

They were unable to support people in the traditional way - through face-to-face activities and engagement - so rapidly adapted their services to provide an online ‘Health and Wellbeing Hub’ offering support and a programme of activities to their MS community. This service helped to mitigate the challenges of the pandemic - keeping people with/affected by MS connected and mobile in their own homes.

Below, Jackie explains the importance of the Health and Wellbeing hub:

“

I’ve only been out of the house three times since last March. I don’t have to shield but I’m vulnerable when I’m out as I can’t get out of the way of someone quickly.

I live on my own, my daughter and a local volunteer shop for me. I’ve always been independent and done my own thing, giving the reins to somebody else has been difficult but I’ve had to get used to it.

Things are so different now but we make sure that we stay connected even if it’s just phoning someone, we are always at the end of the phone.

Being online has meant that I have taken part in activities I wouldn’t normally do. I’m now doing tai chi, physio, yoga, coffee morning, bingo, quiz, knitting and crafts, choir, pub and time to chat. I’m so busy now I wonder, what did I do with my time before?

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A look back at 2020

We had three goals last year:

Adopt and deliver a growth strategy that supports our 1 sustainability and helps us to reach our £30m endowment target.

Listen to the needs of our grantees and deliver funding and 2 support that meets the needs of groups and people.

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Continue to build our team, demonstrating our values in all we 3 do and working to best practice.

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The year ahead

We are working to a five year strategy 2020-2025 to change the lives of people in Wales by generating the funding that they need to strengthen their communities.

Four key ambitions have been set:

  1. To make Community Foundation Wales fully sustainable by having endowment and assets of £30m

  2. To offer funding that addresses the needs of groups

  3. To understand and quantify our impact

  4. To have a strong network of supporters and partners

This year’s Business Plan, shaped with input and engagement from the whole Community Foundation Wales team, is designed to support this journey.

Values driven

Our plan is underpinned by our values:

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We care
about the
+ +
people we
work with
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Key support factors for success:

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01 Grow our funds base

Develop sustainable funding resources for communities in Wales.

We will:

02 Provide great support for grantees

Deliver funding and support that meets the needs of communities across Wales.

We will:

03 Connect with more donors and supporters

Reach more donors and supporters by telling the stories of the people we are helping.

We will:

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04 Develop our team

Continue to build and enhance our team.

We will:

05 External policy alignment

Recognising our role in helping to drive change.

We work to deliver the Seven Well-being Goals for Wales, with a particular focus on:

A resilient Wales

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A more equal Wales
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A healthier Wales
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Our work will also help achieve the UN Sustainable Development Goals, specifically:

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Our Trustees

The Trustees of Community Foundation Wales have been recruited from across Wales. They have a variety of backgrounds and expertise and are ultimately responsible for the affairs of the charity.

Community Foundation Wales has a main board which is supported by four committees (Finance, Risk and Investment; Forward Planning and Development; Governance and Grants), along with any task and finish groups which may be established. The Governance Committee was established in 2019 to enable stronger focus on governance matters, including reviews and updates of policies.

The committees and full board meet on a quarterly basis. The rate of attendance at our board meetings was 91% (up from 86% last year) and the attendance at our committee meetings was 88% (up from 81% last year).

Key responsibilities of the Board:

  1. to approve a three year rolling Strategic Plan, to keep it under regular review and to amend it as appropriate

  2. to approve the annual Business Plan

  3. to monitor quarterly performance against the Business Plan

  4. to approve the annual budget and monitor quarterly financial performance against the budget

  5. to approve the investment strategy and keep under regular review

  6. to approve the audited accounts annually

  7. to approve and regularly review policies, a mission/vision statement, a statement of values and a quality framework

  8. to monitor compliance with the policies, the mission/vision statement, the statement of values and the quality framework

  9. to monitor external relations, public relations, public image, relations with the media and Community Foundation Wales’ website

  10. to recruit suitable new trustees

  11. to approve a policy for the induction, on-going training and retention of trustees

  12. to appoint or elect officers of the Board

  13. to identify major risks, and to put in place arrangements for mitigating their effect

  14. to monitor communications between the Board, the Chief Executive and the staff of Community Foundation Wales

  15. to recruit, appoint and, if necessary, dismiss the Chief Executive

  16. to agree the Chief Executive’s remuneration

  17. to ensure the maintenance and integrity of the corporate and financial information included on the company’s website.

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Four new trustees for Community Foundation Wales

Four new trustees joined the board of Community Foundation Wales during 2020/21 – bringing new skills and experiences to strengthen our work.

Annabel Lloyd

Annabel Lloyd has worked across a wide variety of public, private and third sector organisations, mainly as a communications consultant.

Annabel recently re-joined the world of freelance to get involved in a wider variety of activities and this has included her joining the board of trustees at Community Foundation Wales.

Annabel is based in Penarth, Vale of Glamorgan.

Samsunear Ali

Samsunear Ali, of Cardiff, has 25 years’ experience of working in the private, public and the voluntary sector and is the Deputy CEO of BAWSO, an organisation providing specialist services to BME communities affected by domestic abuse and other forms of Violence Against Women.

Her work involves lobbying and campaigning on Violence Against Women’s issues and she represents BAWSO both locally and nationally.

Sarah Corser

Sarah Corser is a Principal Associate with the national law practice, Shoosmiths and has experience of working with vulnerable families as well as supporting a number of charities who work with those who have suffered a mental or physical injury.

Sarah is from Meifod, Montgomeryshire.

Gwyn Owen

Gwyn Owen, of Beddgelert, Gwynedd, comes from a technical and legal background and has spent most of his career in dispute resolution, both as arbitrator at the ICC Court in Paris and in international mediation.

Gwyn is the current High Sheriff for Gwynedd and is an active fundraiser for local causes in the county.

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Wales Trustee appointed chair of UK Community Foundations

Community Foundation Wales trustee Andrew Tuggey has been appointed as Chair of UK Community Foundations.

Andrew first became engaged with Community Foundation Wales when he was High Sheriff of Gwent in 2015 and worked with the foundation to deliver the Gwent High Sheriffs’ Community Fund.

Andrew has been a trustee since 2018 after a career in Westminster as Chief Executive of the Commonwealth Parliamentary Association and, previously, as an Army officer serving all over the world, including six years with the Gurkhas.

Andrew said:

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It is a great privilege and honour to have been elected by my fellow Trustees to chair the Board of UKCF and I thank them.

As a Board we shall become more diverse and inclusive, and welcome additional skills and expertise. Reaching out across the network and listening to the experience of others, we shall show leadership by our commitment to reviewing UKCF’s own equality, diversity, and inclusion practices.

I and Board colleagues recognise that good, clear communications up, down and across the network are essential to continue and grow the success of our collaborative work. UKCF exists to support, assist and listen to the network, and to amplify and advocate the work of Community Foundations to our many stakeholders.

The board of Community Foundation Wales

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Financial review

Overview

Income

Income of £6.74m of which £733k was received from donations, £45k of this consisting of new endowment.

Income and dividends from investments was £480k . This is an increase on the previous year due to a buoyant stockmarket.

Charitable activity income of £5.33m is for grant-making from immediate impact restricted funds and is an increase of £3.7m on the prior year.

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11% Donations
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Core grants
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Income from charitable activities

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Investment income
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Expenditure

Expenditure of £6.35m , of which £138k , was spent on developing new funds and looking after our existing fundholders, £12.66k was spent on securing core grant income and £62k managing our investment portfolio to develop returns for grant-making - £51k of this was for the direct costs of the investment managers.

Charitable activity expenditure was £6.13m of which £6.03m was spent directly on grants to over 1157 projects.

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92% Grants
5%
Staff related costs
1%
Office overheads
2% Other direct costs
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Investments

Community Foundation Wales’ Finance, Risk and Investment Committee holds delegated responsibility from the Board of Trustees for overseeing all financial, investment and risk management aspects of Community Foundation Wales, including monitoring the investment strategy and evaluating investment managers’ performance. Meeting quarterly, the Finance, Risk and Investment Committee monitors and scrutinises the investment performance. This is also constantly reviewed, and analysed monthly, by the executive team which liaises regularly with our investment managers to update our asset allocation and other investment considerations. Our investment managers make a formal presentation to the Finance, Risk and Investment Committee at least once a year, during which performance, strategy, market conditions, and policy updates are reviewed.

To offer an endowment fund grant-making capability that increases with inflation, Community Foundation Wales’ investment strategy is to maintain the real value of both its capital and the funds available for charitable purposes over an economic cycle through a diversified portfolio of securities within an acceptable risk profile.

Further diversification is achieved by spreading the investments across two investment managers. Community Foundation Wales has a discretionary investment portfolio with Brewin Dolphin and pooled fund holdings with CCLA. Each endowment fund has a percentage share of the combined manager portfolios that is adjusted every time capital is added or withdrawn. Community Foundation Wales’ ethical investment policy means that the portfolio will have no significant direct investment exposure to tobacco, arms, pornography and gambling.

Community Foundation Wales operates a total return approach to managing the investment portfolio. Each year the trustees review the requirements from each fund, taking into account the needs of beneficiaries, expectations of fundholders and historic investment performance.

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The trustees set a maximum recommended distribution amount for each fund. This recommended distribution amount is a nominal amount. It is only officially designated as income as and when it is needed to meet expenditure requirements.

Community Foundation Wales still maintains a modest income flow which is designed to assist with meeting cashflow requirements. Cash will be withdrawn from the endowment funds to cover the management fees and to enable grant-making.

During 2020/21 the trustees recommended an across the board distribution figure of 3.5% of the opening year value of the endowment, except in specific cases where funds required higher distribution amounts to meet community needs and/or fund holder requirements.

Community Foundation Wales complies with the specific guidance from the Charity Commission regarding permanently endowed funds. The charity manages 12 funds which are considered to be permanently endowed, totalling £10.11m as at 31 March 2021 (see note 18).

The initial value of the permanently endowed trust for investment was established as 1st April 2012. For permanently endowed trusts established after this, it is the date the fund was established.

Community Foundation Wales has one investment property that is leased out until 2035. A reserve for maintenance costs over the life of the lease that fall to Community Foundation Wales as landlord was established in 2011 and is currently valued at £79k . Community Foundation Wales’ single investment property delivered a gross yield of 8.9% , 1% of this relates to historic rent from 2015 which is being paid off in annual installments.

The net assets of Community Foundation Wales at 31 March 2021 are £21.34m . Of this, £19.99m investments, which consists of an investment property valued at £500k and an investment portfolio valued at £19.49m .

The value of the investments increased by £4.17m , this resulted from the rapid market recovery following the shock of the pandemic which was felt at the end of the prior year.

The funds are managed by two investment managers, Brewin Dolphin who manage a segregated investment portfolio worth approximately £14.03m and CCLA who manage the remainder of the portfolio, valued at approximately £5.40m .

Reserves Polic y

The aim of the Trustees of Community Foundation Wales is to hold reserves to mitigate any significant drop in income levels. Trustees believe this should be a prudent minimum so as to maximise our grant-making funds.

The board recognises the need to grow endowment levels to a critical mass in order to provide a sustainable source of future income, not affected by new contracts or funding cycles. The current target is £30m , which would provide enough to cover the running costs of the Foundation at current levels.

If income levels are not sufficient to cover running costs, we need a plan to ensure the continued operation of

the foundation in the short term. To address this concern, we have developed the following reserves policy.

For the purpose of the policy neither expendable endowments nor restricted reserves will be included in total.

The board has set a level of £270k to be held in unrestricted reserves, this would give the foundation time to find alternative funding or to scale down expenditure to sustainable levels.

At the end of the current financial year, the reserves are £413k which exceeds the reserves policy however the forecast for 2021/22 is such that a proportion of these will be used, hence reducing the balance to the reserves policy level.

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Covid-19:

How we managed the risks and challenges of the pandemic

Like most organisations, the pandemic caused Community Foundation Wales immediate challenges to how we work, internally and externally.

Externally through the urgent need for additional funding support for communities in Wales, and internally through an immediate change in how we work.

To navigate our way through this, Trustees set up a working group that met weekly at the start of the pandemic to review our financial position and keep oversight of any emerging new risks.

Impact on our work

Due to restrictions on meeting face-to-face, our ability to generate new funds was affected. Our grants panel moved online to Teams and had to take place twice weekly to cope with the pace of grant-making for the emergency fund. We were incredibly grateful to the members of the Grants Panel, who support us on a voluntary basis, for their dedication and support throughout the pandemic.

All staff immediately moved to working from home. Despite the challenges of this, our team responded well and have managed to keep our day-to-day running business as usual through the pandemic. We were fortunate that our charitable work was not affected by any staff or trustee illness through Covid-19.

We decided that we did not need to furlough staff as our full resources were needed to support the emergency fund; generating donations and making grants. As a result of this we were very busy.

Other impacts included moving all governance meetings online through Teams and Zoom. Trustee inductions also took place through Teams, and three new Trustees were brought onto the board during this time.

A real positive impact was the stronger focus on digital communication. We have seen a huge increase in the amount of video content generated by our grant beneficiaries about their partnership with us, which is helping to raise awareness.

Impact on operations

As in every year, the Foundation starts the financial year with a budget deficit which is met through new fund generation.

With the announcement of a lockdown, we were facing uncertainty over our ability to generate new funds and potential shortfall in endowment-generated grants.

Trustees put in place a new weekly working group to review the financial position, overviewing income and expenditure. At this time too, our landlord showed understanding of our position and supported us with a short-term rent reduction.

As the emergency fund gathered pace, with the agreement of partnership with the National Emergencies Trust, and new support from donors and businesses, we were able to not only double our highest ever grantmaking total but also to meet our internal budget deficit.

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Some process changes were needed particularly in identifying fraudulent grant applications. We worked with other funders in Wales to share information about fraudulent claims, to minimise the risk.

Our face-to-face and paper approval processes were fully digitised to enable remote working.

We were committed to launching a new Customer Relationship Management system for the start of the financial year, as the lockdown was introduced. This caused the team significant challenges as we transferred across from our old database and trained staff on the new system. Our intention of a temporary shutdown in grant-making to enable the transfer was no longer possible and the team deserve huge credit for successfully completing the database transfer at such a busy operational time.

The restrictions on face-to-face meetings posed a challenge for our work in cultivating new relationships with potential future donors. Though not as effective as face-to-face conversations, we were able to adapt, putting on webinars and holding meetings by Zoom/Teams.

We were unable to open some of our funds during the year due to the amount of resource needed to cope with the activity due to the Coronavirus grants.

Given that we were in a period of emergency funding, we found that it was challenging to engage new donors on non-Covid related needs. So, while able to provide our highest ever grants total, we are aware that funding for projects not related to Covid has been difficult to find for groups.

Impact on investments

As an endowment-based foundation we kept a close eye on the turbulence in the markets, even though we take a long-term view and understand that markets will go up and down. There has been no short-term impact for us, our grant-making for last year was almost double our previous record year. Looking ahead, markets have recovered strongly during the year and we have been pleased with the recovery of our funds through our investment managers.

Impact on reserves

With learning from this year, we have updated our Reserves Policy to protect the level of reserves needed to ensure the survival of the organisation or the winding-up if that was ever necessary.

Due to the emergency funding, the level of reserves has increased, but as the future is still uncertain, it is likely the reserves may have to be drawn upon in the next financial year.

Impact on future aims and activities

We will benefit in the future from the process changes that were implemented in the pandemic, our ability to work flexibly, the growth in digital story-telling.

We are still working in a period of some financial uncertainty and it is unclear how philanthropic giving in Wales will be affected in the medium term.

Impact on any wider network and how this affects our operations

Community Foundation Wales is a member of UK Community Foundations. As part of this we often work in partnership with fellow foundations to deliver grant programmes. Aside from the coronavirus emergency funds, generating new alternative funds was a challenge in the year.

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Objectives and activities

Charitable objects

Community Foundation Wales’ charitable objects, as outlined in our Articles of Association, which were adopted on 24th March 2012, (and previously contained in the company’s Memorandum of Association) are:

Mission and Vision

Mission: To strengthen and enrich local communities across Wales by inspiring and managing philanthropy.

Vision: A Wales with a thriving voluntary and community sector, where local people lead projects and have the financial resources to develop their own solutions based on need.

Charitable activities

Promoting philanthropy and grant-making are Community Foundation Wales’ principal charitable activities, representing the two sides of Community Foundation Wales’ core purpose, that of encouraging charitable giving and investing in communities.

Public benefit

The Trustees of Community Foundation Wales, having reviewed the Charity Commission Guidance, demonstrate public benefit in a number of ways:

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Structure and governance

Governing document & legal status

Community Foundation Wales is a Charitable Company limited by guarantee registered as Community Foundation in Wales. The Charitable Company was established under a Memorandum of Association dated 19th November 1998 and is governed under its Articles of Association. Following a comprehensive review, new Articles of Association were adopted on 24th March 2012.

Community Foundation Wales is registered with the Charity Commission (registered charity number 1074655). It has the power to receive funds for donors and other contributors and make grants to eligible individuals and communities in support of charitable activities in and for Wales. Community Foundation Wales is also a registered company number 03670680.

We publish our audited accounts on an annual basis along with our annual report.

Membership

In the event of the company being wound up, Members are each required to contribute an amount not exceeding £1. The Members comprise the current Trustees.

Board recruitment, induction and development

The Directors of the company are also charity trustees for the purpose of charity law and, under the company’s Articles of Association, are known as Members of the Board of Trustees.

A Board Committee, called the Governance Committee, has a broad remit which includes ensuring that the charity has the appropriate trustees to lead Community Foundation Wales’ achievement of its rolling three year strategic vision and longer term ambitions. Terms of office, clear roles and responsibilities, Committee Terms of Reference, and a Trustee Development Plan are all in place.

The induction programme for new trustees includes: familiarisation meetings; a Trustee Handbook; visiting funded projects; staff briefings; and attendance at events and Foundation activities. Each trustee also sits on a Board Committee.

In order to achieve our ambitions, Community Foundation Wales’ Trustees are committed to learning from examples of best practice from across the community foundation membership and beyond.

Community Foundation Wales renews, invigorates and inspire its Trustees, bringing a strong breadth of skills and expertise to bear on decision-making and planning. This year Community Foundation Wales completed the induction of Annabel Lloyd (June 2020), Samsunear Ali (June 2020), Sarah Corser (September 2020) and Gwyn Owen (September 2020) as new trustees.

Wider network membership

Community Foundation Wales is a member of UK Community Foundations (UKCF). The role of UKCF includes: representing and raising the profile of community foundations across the UK; the negotiation and management of UK-wide grant programmes; technical assistance; and the provision of a range of member services including a national conference, formal and informal training, and enabling sharing and learning across the network. UKCF underpins the work of the movement, and Community Foundation Wales is proud to be a member. One of our Trustees sits on the board of UKCF.

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Quality accreditation

A further significant benefit of being a member of UK Community Foundations is the expectation that all community foundations maintain their quality accredited status which is re-accredited every three years. Community Foundation Wales was successful in reaching the exacting standards following our submission and interviews in April and May 2021.

Organisation governance and structure

Currently Community Foundation Wales has 12 Trustees on its Board.

The Company Secretary (the Chief Executive) attends Board meetings but has no voting rights.

Community Foundation Wales has a President (Captain Sir Norman Lloyd-Edwards).

HRH The Prince of Wales is Patron of the Fund for Wales, of which former Trustee and current Chair of the Wales Council for Voluntary Action, Peter Davies, and internationally renowned harpist Elinor Bennett (Lady Wigley), are Ambassadors.

The Board’s Committees are reviewed each year ensuring that Community Foundation Wales has an appropriate committee structure to enable it to deliver its objectives.

Committees operating in this financial year were:

  1. Grants committee, which approves grants on behalf of the Board. This year the Grants Committee monitored, evaluated and supported the management of £6.13m in grants on behalf of Community Foundation Wales’ Fund holders, donors and clients.

  2. Finance, Risk & Investment committee, whose work ensures appropriate risk management and achieves a benchmarked return on investment of our capital assets to achieve capital growth and income for grant making. It is also responsible for HR.

  3. Forward Planning and Development Committee which leads on our strategic planning and development activity.

  4. Governance Committee is responsible for ensuring the foundation complies with its governance duties, including regular review of policies.

The Board’s Committees meet regularly with responsibility for the delivery of the Three Year Strategic Plan sitting at the heart of their work. The monitoring of risk, Quality Accreditation Standards and the delivery of the Annual Business Plan are key tasks, and Trustees’ strategic perspective, oversight, expertise and input are key features of Committee work. All Trustees are welcome to attend and contribute to all Committee meetings, and this often happens in practice.

The Chief Executive sits on all Board Committees, with senior managers also in attendance. Staff members often join Trustees’ meetings and workshops and project visits.

Community Foundation Wales has insurance cover appropriate to the needs of the organisation, which is reviewed annually. This includes trustees indemnity of £1m.

Pay and remuneration

The Directors on the Board of Directors, who are the Trustees of Community Foundation Wales, consider that they, and the senior management team, comprise the key management personnel of the charity in charge of directing and controlling, running and operating Community Foundation Wales on a day to day basis.

All Directors give of their time freely and no Director received remuneration in the year. Expenses are paid in line with the Community Foundation Wales’ Expenses Policy, which relates to both Trustees and staff.

Details of Directors’ expenses and related party transactions are disclosed in note 7 and note 20 to the accounts.

Staff pay is reviewed annually in line with the Salary Review Policy which includes the following framework:

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Risk management

Community Foundation Wales continues to identify and review the major risks that it faces, and has robust procedures to mitigate and manage them. This includes each Committee taking responsibility for monitoring appropriate risks identified through the Risk Policy and Risk Register as a standing item on each meeting agenda. This ensures that all Trustees are aware of the range of risks faced, the likelihood and the mitigating actions taken to reduce risks, and their role in monitoring the delivery of the Risk Policy.

Risks actively monitored and mitigated this year have included:

Related Parties

Note 20 gives details of various small transactions with other related parties.

Subsidiary Charities - for accounting purposes, Community Foundation Wales is a Group comprising several separate charities whose accounts and activities are consolidated within this Group report and accounts. These charities within the Group are:

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xi. The TJ Jones Memorial Fund (registered charity number 1074655-2): to provide scholarships to assist beneficiaries to undertake training in engineering or advanced technical education at institutions of further education. Community Foundation Wales is the sole trustee.

Unless explicitly stated otherwise, the comments in this report apply to the Group.

Powys Welsh Church Fund - note 18 gives details of Community Foundation Wales’ involvement in the management of the Powys Welsh Church Fund.

Clwyd Welsh Church Fund - note 18 gives details of Community Foundation Wales’ involvement in the management of the Clwyd Welsh Church Fund.

During the year ended 31 March 2021, Community Foundation Wales awarded

Charity
Birth Partner
Y Cwmni Siarad
Bridge to Cross, Abergavenny
Ffn Dance, Abertillery
BAWSO Ltd
Mid Wales Music Trust
Brecon Mind
Mid North Powys Mind
Race Council Cymru		 Total of grants
awarded 2020-21
£15,300
£21,000
£5,000
£5,000
£15,000
£2,000
£29,822
£29,340
£2,000		 Total of grants
awarded 2019-20
-
-
-
-
£29,036
£1,500
£19,979
-
-		 Trustee or
member of staf
Andrea Powell
Ffon Roberts
Andrew Tuggey
Andrew Tuggey
Samsunear Ali
Emma Beynon
Emma Beynon
Emma Beynon
Samsunear Ali

The above, apart from are all trustees of the charities. Samsunear Ali works for BAWSO Ltd. The grant awarded to BAWSO Ltd was prior to Samsunear Ali becoming a Trustee.

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Reference and administrative details

The charity’s registered name is: The Community Foundation in Wales The charity’s trading name is: Community Foundation Wales The charity is known in Welsh as: Sefydliad Cymunedol Cymru Registered Company Number: 03670680 (registered in England and Wales) Registered Charity Number: 1074655 Principal & Registered Office: St Andrews House, 24 St Andrews Crescent, Cardiff, CF10 3DD

Trustees serving in the financial year, and at the date of approval of this report:

Alun Evans (Chairman)

Nigel Annett CBE (Vice Chairman)

Kathryn Morris (Honorary Treasurer) Lloyd Fitzhugh resigned 7 May 2020 Tanwen Grover Geraint Jewson Andrew Tuggey CBE DL Sarah Jennings Emma Metcalfe Annabel Lloyd appointed 10 June 2020 Samsunear Ali appointed 10 June 2020 Sarah Corser appointed 21 September 2020 Gwyn Owen appointed 21 September 2020 (resigned 6 September 2021)

The Trustees delegated the day-to-day management of the charity to the Chief Executive and Company Secretary, Richard Williams.

Senior management team

Director of Programmes: Andrea Powell

Finance Manager: Catherine Jewsbury Grants & Programmes Manager: Ffion Roberts

Manager, Donor Advised Giving: Katy Hales

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Auditors Azets Audit Services
Ty Derw
Lime Tree Court
Cardif Gate Business Park
Cardif
CF23 8AB
Bankers The Royal Bank of Scotland
South Wales Commercial Ofce
One Kingsway
Cardif
CF10 3AQ
Solicitors Geldards LLP
4 Capital Quarter
Tyndall Street
Cardif
CF10 4BZ
Investment Managers Brewin Dolphin Ltd
2nd Floor
5 Callaghan Square
Cardif
CF10 5BT
CCLA Investment Management Limited
85 Queen Victoria Street
London
EC4V 4ET

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35

The trustees present their report and financial statements for the year ended 31 March

2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s Articles of Association, the Companies Act 2006 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)” (effective from 1 January 2019).

Statement of trustees’ responsibilities

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

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company and the group and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Group for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable it to ensure that the financial statements comply with the Charities Act 2011, the Companies Act 2006, the applicable Charities (Accounts and Reports) regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the Charitable Company’s auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charity’s auditors are aware of that information.

Auditors

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (effective 1 January 2019) and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board of Directors on 14 December 2021 and signed on its behalf

Alun Evans Chairman of Trustees

Kathryn Morris Trustee & Treasurer

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Independent Auditor’s Report

Independent Auditor’s Report to the Members and Trustees of Community Foundation in Wales

Opinion

We have audited the financial statements of Community Foundation in Wales (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated Statement of Financial Activities, the consolidated and parent Balance Sheet, the consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement , the trustees (who are also the directors of the parent 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 groups and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under [the Companies Act 2006 and report in accordance with this Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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A further description of our responsibilities is available on the Financial Reporting Council’s website. This description forms part of our auditor’s report.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Sarah Case FCA DChA (Senior Statutory Auditor) Date:

For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Ty Derw, Lime Tree Court, Cardiff Gate Business Park, Cardiff, CF23 8AB

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Consolidated statement of financial activities

(including consolidated income and expenditure account)

----- Start of picture text -----
Note Unrestricted Restricted Endowment 2020/21 2019/20
funds funds funds Total Total
£ £ £ £ Restated
£
Income and endowments from:
Donations & legacies 2 516,135 146,119 71,017 733,271 2,739,978
Income from investments 3 2,957 47,853 429,430 480,240 161,435
Charitable activities
Grantmaking 4 - 5,325,310 - 5,325,310 1,625,485
Other income - - 200,000 200,000 -
Total income 519,092 5,519,282 700,447 6,738,821 4,526,898
Expenditure on: 5
Costs of raising funds
-
Fund development & donor care 123,237 14,949 138,186 122,126
-
Core grants 8,858 3,807 12,665 10,354
Investment income 10,923 - 51,002 61,925 44,940
Charitable activities
-
Grantmaking 178,670 5,849,221 6,027,891 3,324,938
-
Promoting philanthropy 90,270 15,228 105,498 95,532
Total expenditure 411,958 5,883,205 51,002 6,346,165 3,597,890
Net income/(expenditure) before
gains and losses on investments 107,134 (363,923) 649,445 392,656 929,008
Net gain/(loss) on investments 11 - - 3,896,950 3,896,950 (1,273,546)
Net income/(expenditure) for the
year 107,134 (363,923) 4,546,395 4,289,606 (344,538)
Transfers between funds 178,158 98,760 (276,918) - -
Gain on revaluation - - - - -
Net movement in funds 285,292 (265,163) 4,269,477 4,289,606 (344,538)
Reconciliation of funds
Fund balances brought forward 162,099 1,160,179 15,723,604 17,045,882 17,390,420
Fund balances carried forward 447,391 895,016 19,993,081 21,335,488 17,045,882
----- End of picture text -----

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

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Registered Name: Community Foundation in Wales Registered Company Number: 03670680 Registered Charity Number: 1074655

Consolidated and charity balance sheets

Fixed Assets Note Group
2020/21
£		 Group
2020/21
£		 2019/20
Restated
£		 Charity
2020/21
£
2019/20
Restated
£
Tangible assets 10 8,646 11,528 8,646
11,528
Intangible assets 10 26,017 2,090 26,017
2,090
Investments
Property 10 500,000 300,000 -
-
Securities 11 19,493,081 13,577,727 12,180,484
9,439,881
20,027,744 13,891,345 12,215,147
9,453,499
Long term debtors 12 75,744 81,664 -
-
Current Assets
Debtors 13 268,050 2,137,567 2,137,567 173,648
383,377
Provision for investment transfers 13 504,298 865,463 498,462
743,336
Cash at bank and in hand 1,211,823 1,042,745 1,042,745 903,159
897,395
Current Liabilities 1,984,171 4,045,775 4,045,775 1,575,269
2,024,108
Creditors: Amounts falling due
within one year 14 (698,171) (972,902) (632,990)
(843,895)
Creditors: Amounts falling due
after one year (54,000) - (7,000)
-
Net Current Assets 1,232,000 3,072,873 935,279
1,180,213
Net Assets 21,335,488 17,045,882 13,150,425
10,633,712
Represented by:
Unrestricted funds
General fund 16 447,391 162,099 447,391
162,099
Restricted income funds 17 895,016 1,160,179 1,160,179 669,798
934,976
Endowment funds 18 19,993,081 15,723,604 12,033,236
9,536,637
21,335,488 17,045,882 13,150,425
10,633,712

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. The notes at pages 43 to 69 form part of these accounts. The financial statements were approved by the Board of Directors on 14 December 2021 and were signed on its behalf by: Alun Evans Kathryn Morris Chairman of Trustees Trustee & Treasurer

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Consolidated statement of cashflows

----- Start of picture text -----
Note 2020/21 2019/20
£ Restated
£
Net cash used in operating activities 24 (222,632) (1,610,341)
Cash inflows from investing activities
Investment income 3 480,240 161,434
Net cash from investing activities 480,240 161,434
Cash flows from investing activities
Payments to acquire fixed asset investments 11 (4,740,735) (21,885,906)
Receipts from sale of fixed asset investments 11 5,018,366 21,995,513
Equalisation 11 13,114 -
Revaluation (200,000) -
Acquisition of fixed assets 10 (31,215) (17,585)
Add back depreciation and amortisation 10 10,170 3,967
Net cash generated used in investing activities 69,700 95,989
Operating cash flow in year 327,308 (1,352,918)
Management of liquid resources
Decrease in net cash in investment 11 (158,230) 455,852
(Decrease)/Increase in net cash at bank in the year 169,078 (897,066)
Cash and cash equivalents at 1 April 2020 1,042,745 1,939,811
Cash and cash equivalents at 31 March 2021 1,211,823 1,042,745
----- End of picture text -----

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Notes to the financial statements

1. Accounting policies

Charity information

Community Foundation in Wales is a charitable company limited by guarantee incorporated in England and Wales. The registered office is St Andrews House, 24 St Andrews Crescent, Cardiff CF10 3DD.

Accounting convention

The accounts have been prepared in accordance with the charity’s Articles and Association, the Companies Act 2006 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)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The Charitable Company’s functional and presentational currency is the pound sterling (£), and balances are rounded to the nearest £1.

Preparation of the accounts on a going concern basis

The Trustees consider that there are no material uncertainties about the Charitable Company’s ability to continue as a going concern.

Basis of consolidation

The group financial statements consolidate those of Community Foundation Wales and its subsidiary undertakings (see note 23), made up to 31 March 2021, on a line by line basis.

The consolidated entity is known as the ‘Group’.

Accounting policies specific to the Charitable Company or group in total are laid out below.

No separate company Statement of Financial Activities (SOFA) has been prepared for the Charitable Company as permitted by Section 408 of the Companies Act 2006 and paragraph 397 of the SORP.

Income

Income is recognised when the Charitable Company has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. It is derived from the activities outlined below.

Donations without conditions are accounted for on a cash received basis. In the event that a donation is subject to conditions that require a level of performance before the Charitable Company is entitled to the funds, the income is deferred and not recognised in full either until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the report period.

Income from government and other grants, whether capital or revenue grants, is recognised when the Charitable Company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that that income will be received and the amount can be measured reliably and not deferred.

Gift Aid receivable is included in income where there is a valid declaration from the donor.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

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Investment income comprises of bank interest and dividends and interest arising from discretionary investment activities. Investment income arising from discretionary investment activities is re-invested by the Investment Managers.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings:

The costs of generating funds consist of investment management costs and certain legal fees.

Costs of charitable activities include grants made, governance costs and an apportionment of support costs.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Charitable Company.

In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multiyear grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Charitable Company.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable. The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charitable company that would permit the charitable company to avoid making the future payment(s), settlement is probable and the effect of discounting is material.

Allocation of support and governance costs

Support costs are these functions that assist the work of the Charitable Company but do not directly undertake charitable activities. Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the Charitable Company and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

The bases on which support costs have been allocated are set out in note 5.

Taxation

The charitable members of the group are exempt from income and corporation taxes on income and gains to the extent that they are applied for their charitable objects.

Investments

Assets held for investment purposes are valued at market value at the balance sheet date. Investment properties are held for their investment potentials and not for use by the company and so their current value is of prime importance.

Realised gains and losses on investments are calculated as the difference between sales proceeds of these investments and their market value at the start of the year, or their subsequent costs, and are charged or credited to the statement of the financial activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end. Realised and unrealised investment returns are split across each endowment fund according to the fund’s percentage of the overall portfolio.

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Community Foundation Wales operates a total return approach to its investments. The power of total return permits the Trustees to invest permanently endowed funds to maximise total return and to apply an appropriate portion of the unapplied total return to income each year. Until the power is exercised to transfer a portion of unapplied total return to income, the unapplied total return remains invested as part of the permanent endowment. The power allows the trustees to decide in each year how much of the unapplied total return is transferred to income funds and so available for expenditure. The transfers between endowment and restricted funds and endowment and unrestricted funds reflect the income designated in this financial year.

Fixed Assets

Depreciation is provided on all tangible assets, other than land or investment properties, at rates established to write off the costs of over its expected useful life.

Leasehold property improvements – five years to next lease review.

Intangible Assets

These include software, web design and CRMs. They are amortised over the useful life, normally between three and five years.

Debtors

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

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.

Creditors and provisions

Creditors and provisions are recognised where the Charitable Company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Financial instruments

The Charitable Company 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.

Fund accounting policy

Funds held by the group are:

Unrestricted Funds - these cover the operating costs and reserves of the group; there are no designated funds.

Restricted Funds - these are given the following classifications:

Immediate Impact - these are funds where the money for grants payable originates from other organisations or individuals, but the originator has delegated all or part of the work of researching, recommending and/ or choosing suitable beneficiaries, managing grant applications, controlling the grant payments, and project monitoring/reporting. Examples may include situations where the group is acting as the local agent for national bodies, and where organisations or individuals have decided to out-source their grant-making.

Endowment Fund Income - these funds are used for the payment of grants out of the net investment returns designated by the trustees for income distribution from endowment funds with specified purposes.

Fundraising Activity - income and costs from events held by individuals not employed or contracted by Community Foundation Wales, to raise funds for specified purposes.

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Foundation Operating Costs - funds received for specific work undertaken by Community Foundation Wales to enable the delivery of charitable activities.

Endowment Funds - the endowment funds held at the balance sheet date are all to be used for specific purposes.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the period of the lease.

Pension costs

Contributions in respect of defined contribution pension schemes are charged to the statement of financial activities in the period in which they are payable.

Endowment Funds - Prior year adjustment

The accounts have been restated to incorporate the understatement of Endowment funds relating to Old College Newtown. The adjustment relates to the accounting period ended 31 March 2019. The adjustment has resulted in Endowment funds brought forward being increased by £300,000.

Restricted and Unrestricted Funds – Prior year adjustments

The accounts have been restated to reclassify a fund previously categorised as unrestricted funds to restricted funds. The adjustment relates to the accounting period ended 31 March 2020. The adjustment has resulted in the Restricted funds brought forward being increasing by £50,000 and Unrestricted funds brought forward decreasing by £50,000.

Critical accounting estimates and assumptions

The Charitable Company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next year.

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2. Income from donations and legacies

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Unrestricted Restricted Endowment 2020/21 2019/20
funds funds funds Total Total
£ £ £ £ £
Core grants
Welsh Goverment 40,704 - - 40,704 40,677
Donations
Charities/organisations 475,431 146,119 71,017 692,567 2,464,096
Corporate donors - - - - 103,998
Individuals - - - - 131,207
516,135 146,119 71,017 733,271 2,739,978
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3. Investment income

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Unrestricted Restricted Endowment 2020/21 2019/20
funds funds funds Total Total
£ £ £ £ £
Dividends - - 429,430 429,430 110,484
- -
Property rental 44,353 44,353 36,870
Grants returned to CFW - 3,500 - 3,500 8,885
Bank interest 2,957 - - 2,957 5,196
2,957 47,853 429,430 480,240 161,435
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4. Income from charitable activities

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Unrestricted Restricted Endowment 2020/21 2019/20
funds funds funds Total Total
£ £ £ £ £
- -
Charities/organisations 5,325,310 5,325,310 1,552,819
Corporate donors - - - - -
Individuals - - - - 72,666
0 5,325,310 0 5,325,310 1,625,485
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5. Expenditure

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Grants Staff- Other Office 2020/21 2019/20
related direct Overheads Total Total
£ £ £ £ £ £
Cost of raising funds:
Core grants - 12,335 - 330 12,665 10,354
-
Fund development & donor care 119,298 12,712 6,176 138,186 122,126
Investment income - 10,263 51,002 660 61,925 44,940
Charitable activities
Grantmaking 5,843,255 138,117 28,742 17,777 6,027,891 3,324,938
-
Promoting philanthropy 74,947 22,515 8,036 105,498 95,532
Total resources expended 5,843,255 354,960 114,971 32,979 6,346,165 3,597,890
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Grants totalling £5,759,679 (2019/20: £2,875,869) have been made to institutions and £83,576 (2019/20: £60,699) to individuals. The directors do not believe any particular institution received a material grant in the context of grant making.

Costs have been attributed on a basis consistent with the use of resources. Where costs cannot be allocated, they are apportioned by the estimated percentage of time spent on each activity. Office overhead costs equate to support costs - being premises and office-related costs.

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Governance costs

Governance costs are included under Community Foundation Wales’ charitable actvitites expenditure and are broken down as follows:

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Unrestricted Restricted Endowment 2020/21 2019/20
funds funds funds Total Total
£ £ £ £ £
Meeting costs - - - - 718
Trustees costs - - - - 8,920
- -
Subscriptions 11,631 11,631 11,877
Professional fees 11,533 7 - 11,540 12,817
Other - - - - -
- -
Staff related costs 58,112 58,112 42,243
- -
Office overheads 4,363 4,363 7,180
85,639 7 - 85,646 83,755
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6. Staff costs

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2020/21 2019/20
£ £
Salaries 310,308 265,423
Social security costs 29,662 25,920
Pension costs 15,199 11,743
355,169 303,086
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The average number of full-time equivalent employees during the year, analysed by category, was:

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2020/21 2019/20
Direct charitable 6 5
Business development 1 1
Governance 2 1
9 7
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The Foundation considers its key management personnel comprise the Chief Executive, Deputy Chief Executive, Finance Manager, Development Manager and Grants & Programmes Manager.

The total employment benefits including employer pension contributions of the key management personnel were £251,182.

One employee recieved emoluments (excluding pension contributions) exceeding £70,000 in the year.

No Trustee received remuneration.

7. Trustees

Due to the Covid pandemic during the year, no trustees (2019/20: 5) were reimbursed for expenses (2019/20: £8,377). All prior year costs were related to travel.

8. Net income for the year before transfers

2020/21
£
2019/20
£
The net income for the year before transfers is stated after charging:
Auditors remuneration
Operating lease rentals:
- Plant and machinery
8,400
6,875
2,100
2,384

9. Charity results

As per section 408 of the Companies Act 2006, the charity has not included its own income and expenditure account in these financial statements. The results of Community Foundation Wales are summarised.

2020/21
£
2019/20
£
Total income
Total expenditure
Net incoming/outgoing resources before transfers
Investment gain/(loss)
Transfers
Net movement in funds		 6,633,223
2,269,146
(6,331,175)
(3,403,967)
302,048
(1,134,821)
2,214,663
(607,830)
-
-
2,516,711
(1,742,651)

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10. Fixed and Intangible Assets

Investments - Property

10. Fixed and Intangible Assets
Investments - Property
Group
Charity
2020/21
£
2019/20
£
2020/21
£
2019/20
£
At 1 April 2020
Revaluation
At 31 March 2021
Properties at year end comprised:
Former county school at Newtown		 300,000
300,000
-
-
200,000
-
-
-
500,000
300,000
-
-
500,000
300,000
-
-

This property is part of the Montgomeryshire Intermediate & Technical Education Fund endowment. The historic cost of the property, when it was transferred into the group in the year to 31 March 2010, was £500,000. The property is valued quinquennially and was last valued on 14 January 2021 by Andrew H Turner MRICS from Morris Marshall on an open market valuation basis. Due to the pandemic, the valuation was delayed, but the rent was back dated to the due date of the valuation.

Tangible assets

Tangible assets
Group
Charity
Leasehold improvements 2020/21
£
2019/20
£
2020/21
£
2019/20
£
Cost
Opening balance 1/4/2020
Additions in year
Value at 31/03/2021
14,410
-
14,410
-
-
14,410
-
14,410
14,410
14,410
14,410
14,410
Accumulated depreciation 2020/21
£
2019/20
£
2020/21
£
2019/20
£
At 1/4/2020
Additions in year
Value at 31/03/2021		 2,882
-
2,882
-
2,882
2,882
2,882
2,882
5,764
2,882
5,764
2,882
Net book value 2020/21
£
2019/20
£
2020/21
£
2019/20
£
At 31 March 2020
At 31 March 2021		 -
11,528
0
11,528
8,646
-
8,646
-

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51

Intangible fixed assets

Intangible fxed assets
Group
Charity
Cost 2020/21
£
2019/20
£
2020/21
£
2019/20
£
Opening balance 1/4/2020
Additions in year
Value at 31/03/2021		 3,175
-
3,175
-
31,215
3,175
31,215
3,175
34,390
3,175
34,390
3,175
Amortisation 2020/21
£
2019/20
£
2020/21
£
2019/20
£
At 1/4/2020
Charge for year
At 31/03/2021		 1,085
-
1,085
-
7,288
1,085
7,288
1,085
8,373
1,085
8,373
1,085
Net book value 2020/21
£
2019/20
£
2020/21
£
2019/20
£
At 31 March 2020
At 31 March 2021		 -
2,090
-
2,090
26,017
-
26,017
-

11. Investments - Securities

11 Itt - Siti
. nvesmens ecures Group
Charity
2020/21
£
2019/20
£
2020/21
£
2019/20
Restated
£
Listed investments at valuation
Opening valuation
Additions in the year
Disposal proceeds
Equalisation
Cash movements
Gain or loss on revaluation
Closing valuation
13,577,727
15,016,322
9,431,881
10,599,757
4,740,735
21,885,906
3,113,936
15,320,135
(5,018,366)
(21,995,513)
(4,265,611)
(15,469,101)
(13,114)
-
(11,147)
-
158,230
(455,852)
101,267
(379,775)
6,047,869
(873,136)
3,810,158
(639,135)
19,493,081
13,577,727
12,180,484
9,431,881
Group
Charity
2020/21
£
2019/20
£
2020/21
£
2019/20
Restated
£
Listed investments comprised
Uk-listed investments
Portfolio cash fow
19,081,904
13,324,780
11,897,513
9,257,803
411,177
252,947
282,971
174,078
19,493,081
13,577,727
12,180,484
9,431,881

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52

2020/21
£
2019/20
£
2020/21
£
2019/20
Restated
£
Material investments
CCLA
Segregated portfolio holdings
5,404,336
4,463,577
3,376,964
3,100,640
14,088,745
9,114,150
8,803,520
6,331,241
19,493,081
13,577,727
12,180,484
9,431,881

12. Long term debtors

12. Long term debtors
Group
Charity
2020/21
£
2019/20
£
2020/21
£
2019/20
£
Property rental
Grant debtors		 75,744
81,664
-
-
-
-
-
-

The lease (signed 2011) on Community Foundation Wales’ investment property expires in 2035; the lease allows for payment of rental arrears (included management fee) over the life at £5,920 pa.

13. Debtors

----- Start of picture text -----
Group Charity
2020/21 2019/20 2020/21 2019/20
£ Restated £ Restated
£ £
Other debtors 250,144 2,119,045 163,144 383,377
Provision for investment transfers 504,298 865,463 498,462 724,814
Prepayments and accrued income 17,906 18,522 10,504 18,522
772,348 3,003,030 672,110 1,126,713
----- End of picture text -----

14. Creditors - amounts falling due within one year

----- Start of picture text -----
Group Charity
2020/21 2019/20 2020/21 2019/20
£ Restated £ Restated
£ £
Trade creditors 16,594 13,104 16,594 13,104
Accruals and deferred income 673,710 952,857 608,529 823,850
Tax and social security 7,867 6,941 7,867 6,941
698,171 972,902 632,990 843,895
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Creditors - amounts falling due greater than one year

----- Start of picture text -----
2020/21 2019/20 2020/21 2019/20
£ £ £ £
2-5 years 54,000 - 7,000 -
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15. Financial commitments

At 31 March 2021 there were annual commitments under non-cancellable operating leases as follows:

----- Start of picture text -----
2020/21 2019/20
Within 1 2-5 years Over 5 years
year
Office lease 11,638 67,557 8,313 107,458
-
Photocopier 2,100 4,862 8,925
13,738 72,419 8,313 116,383
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16. Movement in unrestricted funds

Group and Charity

----- Start of picture text -----
At 1 April Income Expenditure Transfers At 31 March
2020 £ £ £ 2021
Restated £
£
Unrestricted general fund 162,099 519,092 (411,958) 178,158 447,391
162,099 519,092 (411,958) 178,158 447,391
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Trustees’ Annual Report and Accounts - Year ended 31 March 2021

54

17. Movement in restricted funds (*= subsidiary fund)

----- Start of picture text -----
At 1 Apr Income and Grants Other At 31 Mar
2020 transfers expenditure expenditure 2021
Restated £ £ £ £
£
Immediate Impact Funds
The Henry Smith Charity 207 - - (207) -
Comic Relief 14, 611 - - (14,611) -
The Skiathos Fund 66,405 - - - 66,405
Bristol & West 2,170 630 - (2,800) -
Mosawi 6,000 - - (6,000) -
- - -
Micro Venture Philanthropy Fund 4,211 (4,211)
Wales Flood Recovery Fund 7,528 268 - (7,796) -
-
Ashley Family Foundation (400) 308,694 (298,253) (10,041)
Fourteen 8,232 - - (8,232) -
- - -
New Beginnings 1,250 (1,250)
South Wales PCC - 976 - - 976
Royal London 10,000 - (10,000) - -
CO2 Sense - 1,000 - (1,000) -
- - -
Anglesey Playground Trust 5,935 5,935
- -
Older People’s Fund 85,000 68,308 153,308
Goodwash 133 - - (133) -
-
Wesleyan 64,421 45,000 (68,947) 40,474
- - -
Surviving Winter 1,369 1,369
Give DIFFerently 2,866 1,730 (50) (145) 4,401
-
Core Funding Programme (Waterloo) 13,000 65,400 (3,728) 74,672
Welsh Procurement Alliance - 158,600 (158,600) - -
Provident Fund - 30,000 (25,000) - 5,000
Thomas Carroll Fund 19,648 3,554 (4,367) (354) 18,481
Geldards Fund 1,229 152 - (15) 1,366
Four Acre Match 20,000 - - (20,000) -
High Sheriff of Gwynedd 10 19,000 (16,720) (2,280) 10
Transformation and Growth 50,000 - (38,006) - 11,994
Dulverton 45,000 - (35,000) - 10,000
- -
West Glamorgan High Sheriff 3,462 (2,000) 1,462
-
Gareth Griffiths Fund 31,875 9,463 (41,328) (10)
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Trustees’ Annual Report and Accounts - Year ended 31 March 2021

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----- Start of picture text -----
At 1 Apr Income Grants paid Other At 31 Mar
2020 £ £ £ 2021
Restated £
£
Coronavirus Resilience Fund 284,195 4,972,740 (4,862,655) (309,701) 84,579
Cefn Croes Wind Farm - 15,000 (14,700) - 300
Cellnex Programme - 17,820 - - 17,820
Great Western Railway - 18,000 - - 18,000
-
Trust and Foundation project 50,000 50,000 (39,692) 60,308
Daring to Dream 426 462 (761) (75) 52
798,783 5,786,797 (5,576,387) (432,281) 576,912
Endowment Funds
Martyn Groves Adventure & Travel Fund 447 - - - 447
- - -
The Lord Merthyr Fund 36,000 (36,000)
Daisy Fund - - (500) 500 -
- -
Powys Welsh Church Fund #+ 3,105 (33,495) 30,390
-
Montgomeryshire Intermediate & 173,571 41,248 (16,399) 198,420
Technical Education
Former Girls Grammar School Brecon + - - (4,000) 4,000 -
- - -
Stanley Bligh Memorial Fund+ (1,500) 1,500
Cardiff Citizens Charity+ 512 - - - 512
- - -
Education Fund for Denbigh and (2,500) 2,500
Surrounding Area+
Clwyd Welsh Church Fund#+ - 500 (6,570) 6,070 -
-
Gwent High Sheriffs’ Community Fund 148,157 (100,519) (17,315) 30,323
- - -
Former Foundation Powys Fund 3,173 3,173
Foundation Schools Fund 11,558 - - - 11,558
Fund for Wales - 1,012 - - 1,012
BIG Fund for Wales Trust Fund - 2,000 - - 2,000
Wales in London - - (4,250) 4,250 -
- - -
Wrexham Community Endowment Fund (2,500) 2,500
(LA)
Llandrindod High School Charity Fund 4,278 2 - - 4,280
- - -
Newport Community Endowment Fund (2,000) 2,000
Anglesey Community Endowment Fund 680 - - - 680
- - -
Flintshire Community Endowment Fund (2,756) 2,756
----- End of picture text -----*

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

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----- Start of picture text -----
At 1 Apr Income Grants paid Other At 31 Mar
2020 £ £ £ 2021
Restated £
£
Hawarden District Relief Fund 1,743 - (5,687) 3,944 -
Education Trust of John Vaughan 138 - - - 138
- - -
Mary Jane Foundation Trust 3,568 3,568
- -
Waterloo Match Challenge 82,482 (46,775) 35,707
- - -
Nancy Mudge Fund 28,125 (28,125)
TJ Jones Memorial Fund 51,121 3,746 (3,000) (25,581) 26,286
361,396 235,770 (205,277) 73,785 318,104
Group Summary
Charity 934,976 5,977,573 (5,772,164) (470,586) 669,798
Subsidiary 225,203 44,994 (9,500) (35,480) 225,218
Group 1,160,179 6,022,567 (5,781,664) (506,066) 895,016
----- End of picture text -----*

Under the Foundation’s total return policy investment returns are designated as income only when needed to meet expenditure requirements. This is done to achieve efficiency and ensure that endowment assets spend more time invested. A recomended distribution amount is agreed by our trustees each year. This is carried out on a fund by fund basis and takes into account the needs of beneficiaries, fundholder expectations and historic fund performance. Where the full recommended distribution amount is not required to meet expenditure needs then this remains as capital to be designated as income in future years, as required. The closing balances in this note do not necessarily represent the full amount available for grant-making at the end of the financial year.

The accounts have been restated to reclassify a fund previously categorised as unrestricted funds to restricted funds. The adjustment relates to the accounting period ended 31 March 2020. The adjustment has resulted in the Restricted funds brought forward being increasing by £50,000 and Unrestricted funds brought forward decreasing by £50,000.

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18. Movement in endowment funds

----- Start of picture text -----
At 1 Apr Income & Investment Other At 31 Mar
2020 transfers in returns expenditure 2021
Restated £ £ & transfers £
£ out
£
The Lord Merthyr Fund 983,039 23,390 247,121 (41,000) 1,212,550
Foundation Schools Fund 122,324 2,960 30,797 (1,372) 154,709
Martyn Groves Adventure & Travel Fund 32,233 780 8,115 (361) 40,767
The Sloman Family Fund for Ely 21,993 532 5,537 (247) 27,815
Former Foundation Powys Fund 21,405 518 5,389 (240) 27,072
Stanley Bligh Memorial Fund+ 1,020,118 24,721 256,771 (16,038) 1,285,572
Llandrindod High School Charity Fund 87,383 2,119 21,997 (1,233) 110,266
Former Girls Grammar School Brecon + 233,971 5,510 58,843 (7,587) 290,737
-
Montgomeryshire Intermediate & 646,192 19,648 162,824 828,664
Technical Education
- -
MITEF Investment Property 300,000 200,000 500,000
Montgomery District Trust Fund+ 394,683 9,562 99,339 (6,672) 496,912
Newport Community Endowment Fund 299,912 7,249 75,469 (6,432) 376,198
Monmouthshire Further Education Fund+ 262,370 6,371 66,046 (3,710) 331,077
Cardiff Citizens Charity+ 122,149 2,962 30,748 (1,723) 154,136
Powys Welsh Church Fund+# 2,270,427 54,647 571,104 (66,438) 2,289,740
Rudbaxton Parish Education Fund+ 309,187 7,500 77,831 (4,364) 390,154
Fund for Wales 389,248 30,590 102,423 (5,730) 516,531
-
Gwent High Sheriffs’ Community Fund 442,024 10,653 111,345 564,022
Wrexham Community Endowment Fund 97,643 2,364 24,579 (1,374) 123,212
(Church)
Education Trust for Cardiff Citizens+ 323,601 7,853 81,459 (4,572) 408,341
Denbighshire Community Endowment 326,724 7,915 82,212 (7,383) 409,468
Fund
Flintshire Community Endowment Fund 201,685 4,863 50,732 (5,884) 251,396
Hawarden District Relief Fund 335,683 8,087 84,445 (9,248) 418,967
BIG Fund for Wales Trust Fund 873,164 21,146 219,799 (12,290) 1,101,819
Carmarthenshire Fund 170,311 4,127 42,872 (2,400) 214,910
Dr Dewi Davies Fund 1,079,621 26,159 271,770 (15,210) 1,362,340
Wrexham Community Endowment Fund 129,518 3,115 32,569 (4,583) 160,619
(LA)
Education Trust of John Vaughan 72,499 1,754 18,247 (1,226) 91,274
Wales in London 80,485 4,450 20,716 (5,412) 100,239
Anglesey Community Endowment Fund 5,843 141 1,471 (82) 7,373
----- End of picture text -----*

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

58

----- Start of picture text -----
At 1 Apr Income & Investment Other At 31 Mar
2020 transfers in returns expenditure 2021
Restated £ £ & transfers £
£ out
£
Daisy Fund 63,016 1,515 15,855 (1,560) 78,826
Emrys Davies Legacy Fund 28,856 705 7,261 (665) 36,157
Education Fund for Denbigh and 787,603 19,096 198,261 (11,108) 993,852
Surrounding Area+
Mary Jane Foundation Trust 28,333 686 7,129 (642) 35,506
LNB Fund 342,739 8,295 86,259 (6,310) 430,983
Cricket Wales Foundation 21,718 3,323 5,499 (479) 30,061
Clwyd Welsh Church Fund#+ 522,257 12,597 131,383 (14,105) 652,132
William Gale Fund 131,843 3,194 33,178 (2,742) 165,473
Newport Girls Fund 31,779 755 7,996 (696) 39,834
Nancy Mudge Fund 31,877 745 8,025 (336) 40,311
Cardiff Story Fund 178,527 4,173 44,928 (3,351) 224,277
Newtown Maintenance Reserve+ 62,674 1,517 15,777 (881) 79,087
Mudiad Meithrin Fund 112,529 2,729 28,346 - 143,604
-
TJ Jones Memorial Fund+ 1,724,418 42,506 434,388 2,201,312
-
Cronfa William Salesbury 45,925 10,097 (1,236) 54,786
15,723,604 649,447 3,896,952 (276,921) 19,993,081
Group Summary
9,536,638 302,201 2,414,665 (220,267) 12,033,237
Charity
Subsidiary 6,186,966 347,246 1,482,287 (56,655) 7,959,844
Group 15,723,604 649,447 3,896,952 (276,922) 19,993,081
----- End of picture text -----*

*=Subsidary funds + = Permanent endowment funds

The accounts have been restated to incorporate the understatement of Endowment funds relating to Old College Newtown. The adjustment relates to the accounting period ended 31 March 2019. The adjustment has resulted in Endowment funds brought forward being increased by £300,000.

Powys County Council retains the trusteeship of the Powys Welsh Church Act Fund, Flintshire County Council retains the trusteeship of the Clwyd Welsh Church Fund and Mudiad Meithrin retains the trusteeship of the Mudiad Meithrin Fund. These organisations have delegated to the Foundation the management of the Funds’ non-property investments. The Foundation manages these charitable investments as part of the Foundation’s investment portfolio according to the Foundation’s investment strategy.

Powys Welsh Church Fund as at 31 March 2021:

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

59

Clwyd Welsh Church Fund as 31 March 2021:

Mudiad Meithrin Fund as at 31 March 2021:

Williams Salesbury as at 31 March 2021:

19. Analysis of assets/liabilities between funds

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Unrestricted Restricted Endowment 2020/21 2019/20
funds funds funds Total Total
£ £ £ £ Restated
£
Group
Investments - - 19,493,081 19,493,081 13,577,727
- -
Investment property 500,000 500,000 300,000
- -
Fixed and intangible assets 34,663 34,663 13,618
- -
Long term debtors 75,744 75,744 81,664
Current assets excluding cash at
bank/hand 534,625 237,724 - 772,349 3,003,030
Cash at bank and in hand (83,557) 1,295,380 - 1,211,823 1,042,745
-
Creditors: amounts falling due (38,340) (659,832) (698,172) (972,902)
within one year
- - -
Creditors: amounts falling due (54,000) (54,000)
after one year
447,391 895,016 19,993,081 21,335,488 17,045,882
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Trustees’ Annual Report and Accounts - Year ended 31 March 2021

60

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Unrestricted Restricted Endowment 2021 2020
funds funds funds Total Total
£ £ £ £ Restated
£
Charity
Investments - - 12,180,484 12,180,484 9,439,881
- -
Fixed and intangible assets 34,663 34,663 13,618
- - - - -
Long term debtors
-
Current assets excluding cash at 534,625 137,485 672,110 1,126,713
bank/hand
Cash at bank/hand (83,557) 1,133,963 (147,247) 903,159 897,395
-
Creditors: amounts falling due (38,340) (594,650) (632,990) (843,895)
within one year
Creditors: amounts falling due - (7,000) - (7,000) -
after one year
447,391 669,798 12,033,237 13,150,426 10,633,712
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20. Related Party Transactions

During the year ended 31 March 2021, Community Foundation Wales awarded:

Charity
Birth Partner
Y Cwmni Siarad
Bridge to Cross, Abergavenny
Ffn Dance, Abertillery
BAWSO Ltd
Mid Wales Trust
Brecon Mind
Mid North Powys Mind
Race Council Cymru		 Total of grants
awarded 2020/21
£15,300
£21,000
£5,000
£5,000
£15,000
£2,000
£29,822
£29,34006
£2,000		 Total of grants
awarded 2019/20
-
-
-
-
£29,036
£1,500
£19,979
-
-		 Trustee or staf
member
Andrea Powell
Ffon Roberts
Andrew Tuggey
Andrew Tuggey
Samsunear Ali
Emma Beynon
Emma Beynon
Emma Beynon
Samsunear Ali

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

61

21. Pension schemes

The charity contributes to individual stakeholder pensions, and accordingly contributions to these schemes are accounted for on the basis of a defined contribution scheme. During the year ended 31 March 2021, the total employer contributions charged for these schemes amounted to £15,199 (2019/20: £11,743).

22. Company limited by guarantee

The charity is limited by guarantee; members’ liability is limited to £1 on the winding-up of the charity.

23. Subsidiary Charities

The Charity is sole trustee of, and therefore controls, the following charities:

Name
Montgomeryshire District Trust Fund
Montgomeryshire Intermediate & Technical
Education Fund
Stanley Bligh Memorial Fund
Former Girls Grammar School Brecon
Monmouthshire Further Education Trust Fund
Rudbaxton Parish Education Fund
Cardif Citizens Charity
Education Trust for Cardif Citizens
Education Fund for Denbigh and Surrounding Area
TJ Jones Memorial Fund		 Charity
Number
513855
525726
525314
1074498
1146059
1145391
206549
50665606
1074655-1
1074655-2		 Linked
number
1074655-5
1074655-3
1074655-6
1074655-4
1074655-7
1074655-8
1074655-9
1074655-10
1074655-1
1074655-2		 Acquisition Date

31 August 2009
31 August 2009
31 August 2009
31 August 2009
1 April 2010
1 November 2010
1 November 2010
1 November 2010
31 March 2016
27 January 2020

These charities perform similar activities to the Foundation and have co-terminous year ends. The assets of in-year acquisitions have been transferred into the group at fair value as at the date the Foundation took control. All assets have been consolidated on a line by line basis at the year end. The place of business for all subsidiary charities is England and Wales.

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62

Montgomeryshire District Trust Fund 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Other income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Liabilities
Net Assets
Restricted funds
Endowment funds
Funds		 9,563
2,191
-
-
(1,418)
(1,747)
(5,254)
(8,026)
99,339
(25,156)
102,230
(32,738)
496,912
395,183
-
(500)
496,912
394,683
-
-
496,912
394,683
496,912
394,683

----- Start of picture text -----
2020/21 2019/20
Montgomeryshire Intermediate & Technical Education Fund Total Total
£ Restated
£
Investment income 64.412 39,269
Other income - 1,000
Cost of generating funds (5,160) (4,892)
Charitable activities (12,119) (31,544)
Investment gains and losses 378,601 (45,181)
Net movement in funds 423,734 (41,348)
Assets 1,624,610 1,201,876
Liabilities (18,440) (19,440)
Net Assets 1,606,170 1,182,436
Restricted funds 198,420 173,570
Endowment funds 1,407,750 1,008,866
Funds 1,606,170 1,182,436
----- End of picture text -----

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

63

Stanley Bligh Memorial Fund 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Other income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Liabilities
Net Assets
Unrestricted funds
Endowment funds
Funds		 24,721
5,691
-
-
(3,635)
(4,538)
(12,402)
(36,614)
256,771
(65,019)
265,455
(100,480)
1,285,573
1,022,618
-
(2,500)
1,285,573
1,020,118
-
-
1,285,573
1,020,118
1,285,573
1,020,118
Former Girls Grammar School Brecon 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Other income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Liabilities
Net Assets
Unrestricted funds
Endowment funds
Funds		 5,510
1,289
-
-
(897)
(1,028)
(6,690)
(11,620)
58,843
(14,912)
56,766
(26,271)
291,637
234,871
(900)
(900)
290,737
233,971
-
-
290,737
233,971
290,737
233,971

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

64

Monmouthshire Further Education Trust 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Other income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Liabilities
Net Assets
Endowment funds
Funds		 6,371
1,474
-
-
(928)
(1,176)
(2,783)
(8,457)
66,046
(16,723)
68,706
(24,882)
331,077
263,755
-
(1,385)
331,077
262,370
331,077
262,370
331,077
262,370
Rudbaxton Parish Education Fund 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Liabilities
Net Assets
Endowment funds
Funds		 7,500
1,753
(1,091)
(1,398)
(3,273)
(13,540)
77,831
(19,706)
80,967
(32,891)
390,152
312,187
-
(3,000)
390,152
309,187
390,152
309,187
390,152
309,187

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

65

Cardiff Citizens Charity 2020/21
Total
£		 2019/20
Total
Restated
£
Investment income 2,962 673
Cost of generating funds (431) (536)
Charitable activities (1,292) (1,609)
Investment gains and losses 30,748 (7,785)
Net movement in funds 31,987 (9,257)
Assets 154,648 122,661
Net Assets 154,648 122,661
Unrestricted funds 512 512
Endowment funds 154,136 122,149
Funds 154,648 122,661
Education Trust for Cardiff Citizens 2020/21
Total
£		 2019/20
Total
Restated
£
Investment income 7,853 1,804
Cost of generating funds (1,143) (1,438)
Charitable activities (3,429) (7,916)
Investment gains and losses 81,459 (20,625)
Net movement in funds 84,740 (28,175)
Assets 408,842 324,101
Liabilities (500) (500)
Net Assets 408,342 323,601
Endowment funds 408,342 323,601
Funds 408,342 323,601

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

66

Education Fund for Denbigh and Surrounding Area 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Charitable activities income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Net Assets
Endowment funds
Funds		 19,096
4,424
-
-
(8,887)
(11,288)
(2,222)
(24,322)
198,261
(50,199)
206,248
(81,385)
993,851
787,603
993,851
787,603
993,851
787,603
993,851
787,603
TJ Jones Memorial Fund 2020/21
Total
£
2019/20
Total
Restated
£
Investment income
Charitable activities income
Cost of generating funds
Charitable activities
Investment gains and losses
Net movement in funds
Assets
Liabilities
Net Assets
Unrestricted funds
Endowment funds
Funds		 42,506
11,527
-
-
(15,828)
(2,997)
(9,007)
(101,531)
434,388
(400,409)
452,059
(493,410)
2,227,598
1,876,321
-
(100,782)
2,227,598
1,775,539
26,286
51,121
2,201,312
1,724,418
2,227,598
1,775,539

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

67

24. Reconciliation of income (expenditure) to net cash flows from operating activities

----- Start of picture text -----
Note 2020/21 2019/20
Total Total
£ £
Net movement in funds 4,289,606 (344,536)
(Gains)/losses on investments 11 (6,047,870) 873,136
Net investment income and bank interest repayable 3 (480,240) (161,434)
(Decrease)/increase in debtors 13 2,236,602 (2,355,694)
Increase/(decrease) in creditors 14 (220,730) 378,187
Net cash outflow from operating activities (222,632) (1,610,341)
----- End of picture text -----

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68

25. Comparative consolidated statement of financial activities

----- Start of picture text -----
Note Unrestricted Restricted Endowment 2019/20
funds funds funds Total
£ £ £ Restated
£
Income and endowments from:
Donations & legacies 2 257,066 290,832 2,192,080 2,739,978
Income from investments 3 5,197 45,755 110,483 161,435
Charitable activities
Grantmaking 4 - 1,625,485 - 1,625,485
Other income - - - -
Total income 262,263 1,962,072 2,302,563 4,526,897
Expenditure on: 5
Costs of raising funds
Fund development & donor care 122,126 - - 122,126
Core grants 10,354 - - 10,354
Investment income 13,104 - 31,836 44,940
Charitable activities
-
Grantmaking 197,527 3,127,411 3,324,938
-
Promoting philanthropy 93,665 1,867 95,532
Total expenditure 436,776 3,129,278 31,836 3,597,890
Net income/(expenditure) before
gains and losses on investments (174,513) (1,167,206) 2,270,727 929,008
Net gain/(loss) on investments 11 - - (1,273,546) (1,273,546)
Net income/(expenditure) for the
year (174,513) (1,167,206) 997,181 (344,538)
Transfers between funds 195,531 437,182 (632,713) -
Subsidiary assets transferred
- - - -
into group
Net movement in funds 21,018 (730,024) 364,468 (344,538)
Reconciliation of funds
Fund balances brought forward 141,081 1,890,203 15,359,136 17,390,420
Fund balances carried forward 162,099 1,160,179 15,723,604 17,045,882
----- End of picture text -----

Trustees’ Annual Report and Accounts - Year ended 31 March 2021

69

Sefydllad Cymunedol Cymru Newid Bywydau Gyda'n Gilydd Community Foundation Wales Changing Lives Together