SOFIE, DOMENICA, LIZBETH AND DEBORA, ECUADOR
1
**Annual Report 2022/2023**
**----- Start of picture text -----**
Compassion UK
**----- End of picture text -----**
**2022/2023** Highlights
**116,142**
**471,054 £50.8m**
**----- Start of picture text -----**
86.5%
**----- End of picture text -----**
**----- Start of picture text -----**
2
**----- End of picture text -----**
compassionuk.org
Compassion UK
Annual Report 2022/2023
## A MESSAGE FROM **JUSTIN DOWDS** CEO COMPASSION UK & COMPASSION IRELAND
At Compassion UK, our strategy is We’ve made great progress releasing ambiguous environment we’re operating rooted in prayer. Over the past year, innovation across the organisation, in, this goal may seem unrealistic. Indeed, we’ve actively sought to humble including piloting two projects that the 1,500 decline in child sponsorship ourselves before God and discern His are especially close to my heart. For numbers over Financial Year 23 was guidance. We’ve leaned prayerfully into example, Compassion UK Gift Aid clearly not the path we were anticipating. the current opportunities and challenges continues to be used to directly fund we face as a ministry. the child development programme at Yet, as we prayed, we did not get a 24 Compassion projects, one of which I sense that God was giving us permission In the lead up to Financial Year 23, we set recently visited in Rwanda. It was highly to walk away from the desire to serve goals to return to pre-pandemic levels of encouraging to see impressive results more children more quickly. And as we growth, yet in reality, we’ve faced further after one year of the test and a privilege look at the reality our frontline church unforeseen disruption and a cost-ofto meet 250 thriving and growing partners and national offices are facing, living crisis, and we’ve been unable to children thanks to the care of their local the need is greater than ever, with meet the ambitious targets we set. church. The other has been working in estimates indicating that by 2030, nearly partnership with a major donor, funding 7% of the global population could still be Nevertheless, we’ve paused and given an initiative in Uganda that has provided living in extreme poverty. thanks for the faithful commitment of support to 12,700 refugees who have fled our supporters, UK churches and other from South Sudan. When we created space, expecting God partners. We don’t take it for granted to speak, we felt prompted to move that during the past 12 months, we’ve A further highlight was the release forward with confidence and faith, held 213 church partnership launches and of our Different Path Impact Report, setting out in pursuit of what we believe 557 church celebration events. We’re so accompanied by a celebration event at He has called us to as a ministry. grateful we get to partner together. the Houses of Parliament alongside MPs and Kofi Ahonon, the Togo National Given the high inflation rate in many of We also participated in 101 live, in-person Director. We gave God the glory that the the countries where we work, we made events, and as always, our servantthree-year Child Survival initiative, funded the prayerfully considered decision to hearted volunteers were an essential by Compassion UK supporters and UK undertake a sponsorship rate increase part in making this, and so many other aid, supported 2,339 mothers and babies. in September 2023 to enable us to initiatives, happen. In total, an incredible 95% of mothers exclusively breastfed continue providing excellent care to the 12,600 hours of volunteering time were for the first six months, compared to a children and young people we serve. given over Financial Year 23, with 763 Togolese national average of 64% and We also decided to develop additional children finding a sponsor thanks to our 97% were born in the presence of a giving options and new ways for our volunteer speaker team. trained medical professional, compared supporters to come alongside our to a national average of 69%. This work church partners as they release children I look back and celebrate the generosity has been made possible by the generous from poverty, in Jesus’ name. of supporters, which means our support of Compassion UK supporters total donations before Gift Aid were and UK aid which matched public Time and again, we’ve been reminded of £1,098,000 higher than last year. donations to the ‘Different Path’ Appeal, the verse in Ephesians 3:21: “Now to him Thanks to our Food Crisis Appeal, and our colleagues in Togo and the hardwho is able to do immeasurably more Gift Aid, we’ve been able to provide working front line church partners. than all we ask or imagine, according to vital food crisis relief to our church his power that is at work within us.” partners, including £1,412,000 of shortAs we’ve spent time living out our core term food parcels and longer-term value of discernment, giving time to pray I hope you will be encouraged as you sustainable support, such as agricultural and listen to God, we’ve been looking to read this report. Rejoice with me that we supplies, livestock and training in good the future, reflecting afresh on our 2023 have a God who can do “immeasurably farming practices. vision to support 200,000 children living more” in the lives of the children, young in poverty by 2030. I acknowledge that people and families we serve. Thank you given the volatile, uncertain, complex and once again for partnering with us.
## RELEASED FROM POVERT Y **INTO LEADERSHIP**
## **_**
“On several occasions, I asked myself, ‘Does God care about me?’ Because poverty was teaching me that God didn’t care, that I wasn’t important, that I was not valuable. And it was in the middle of that, that God used Compassion to show me His love and His care for me.
“When I was seven, I was shining shoes in the street; when I was 14, I was fixing and assembling computers; when I was 23, I was already an IT manager.
“We don’t know how God is going to use the child you are sponsoring today, but we do know for sure we are changing one life; we are impacting a community; we are bringing glory to the Lord.”
**TONY BELTRAN,** Compassion International National Director, Dominican Republic
Back to contents **⬆**
compassionuk.org
3
**Annual Report 2022/2023**
**Compassion UK**
Objectives& ACTIVITIES
SEVEN-YEAR-OLD LIZBETH FROM ECUADOR LOVES HER SPONSORS LETTERS
Back to contents **⬆**
compassionuk.org
**4**
**Annual Report 2022/2023**
**Compassion UK**
## **WHO WE ARE**
## **OUR MISSION:**
**RELEASING CHILDREN FROM POVERTY IN JESUS’ NAME**
Our charitable purpose as defined by our articles of association:
## **CHRIST CENTRED**
Jesus is at the centre of everything we do. Our programmes show God’s love to children living in poverty. Whilst Christ’s love motivates us, we help children and families from all backgrounds, regardless of belief.
## **CHILD FOCUSED**
We intentionally begin with children, the most vulnerable to the devastating effects of poverty. We support children in every area of their lives, tackling the root causes of poverty that hold them back.
## **CHURCH DRIVEN**
We believe the Church is the hope of the world. We run our programmes in exclusive partnership with local churches because they know their communities inside out.
## **COMPASSION’S VALUES:**
Integrity, excellence, stewardship, dignity, discernment
AT A GLOBAL LEVEL **COMPASSION UK** IS PART OF THE WIDER COMPASSION FAMILY
**MADE UP OF WITH 16 8,664 GLOBAL FUNDRAISING PARTNERS FRONT-LINE CHURCHES WE WORK IN WHO ALTOGETHER SUPPORT 29 2,353,045 COUNTRIES CHILDREN**
**THE RELIEF OF POVERTY, SUFFERING OR DISTRESS AMONGST CHILDREN.**
**THE EDUCATION AND TRAINING OF CHILDREN.**
**TO ADVANCE THE CHRISTIAN FAITH IN ALL OR ANY PART OF THE WORLD.**
**THE DEVELOPMENT OF CHILDREN TO SOCIAL AND SPIRITUAL MATURITY.**
## **PUBLIC BENEFIT:**
Our trustees review our activities each year to ensure we follow the Charity Commission’s general guidance on public benefit and their specific guidance on the prevention or relief of poverty and the advancement of religion as defined by our articles of association.
Back to contents **⬆**
compassionuk.org
**5**
Annual Report 2022/2023
**Compassion UK**
**----- Start of picture text -----**
CHILD SURVIVAL
We reach at-risk children even before
they’ve been born. Through access to pre-
and post-natal care, nutritional supplies,
vaccinations and critical support and
training for mums, we give children the
opportunity to not only survive but thrive.
**----- End of picture text -----**
**HOW WE SERVE CHILDREN** OUR 3 KEY PROGRAMMES
## **_**
Axel got very sick with dengue fever from the mosquitos. The (Compassion) project provided his medicines, which I could not afford. They were extremely expensive. I am thankful. God allowed me the blessing of a baby. I am so happy to have Axel. His name means ‘God makes you forget’. Through this blessing, God will allow me to forget the past. My life has changed because of the Survival programme. They even take us on family trips and arrange outings. We get to have meetings and celebrations.”
SEYLA AND HER SON AXEL
**----- Start of picture text -----**
INTERVENTIONS
Compassion Interventions equip us to
take further action to help children and the
communities in which they live. From the
provision of safe drinking water to initiatives
to tackle malnutrition and the distribution
of emergency relief after a disaster,
Compassion intervention save lives.
**----- End of picture text -----**
**----- Start of picture text -----**
SPONSORSHIP
We believe that every child
should be known, loved and
protected and that they are precious
and unique. Our Child Sponsorship
Programme is tailored to meet the needs of
each individual child. We want each one to
have the opportunity to escape poverty and
find hope for a better future. In addition to
one-to-one sponsorship, we continue to pilot
new support models, including whole-
project-funded sponsorship for South
Sudanese refugees in Uganda and
co-design communities.
**----- End of picture text -----**
Back to contents **⬆**
compassionuk.org
**6**
**Annual Report 2022/2023**
**Compassion UK**
## STEWARDING YOUR **SPONSORSHIP DONATIONS _**
**We’re committed to integrity and transparency when using your £32 a month donation.**
We use a minimum of 80% of your donation to benefit your sponsored child. If you donate £32 a month, at least £25.60 is granted to Compassion International to bring lasting change to the child you’re supporting.
**LOCAL CHURCH WITH COMPASSION**
**COMPASSION UK**
## **HERE’S HOW IT WORKS.**
£25.60 enables us to give your sponsored child access to Compassion’s highly effective child development programme. It empowers the child you support to overcome poverty holistically and sustainably.
## **AND THE REST?**
The remaining 20% of your donation is used just as strategically. While £25.60 of your monthly donation releases your individual sponsored child from poverty, the remaining £6.40 benefits other children and enables us to operate effectively with excellence.
**CHILDREN**
**----- Start of picture text -----**
Healthy meals Recreational activities
Your donation...
and additional to improve self-
nutritional support confidence and social
where needed. and emotional skills.
Enables
Ensures we Maximises your Helps us operate
Compassion UK
can operate investment in with excellence
to thrive now and
with excellence. children’s lives. on the ground.
in the future.
Christ-centred guidance
Essential supplies
through the local
Gives us the church to overcome fear
Finds the next ability to care for Provides suitable and hopelessness. such as toothbrushes,
sponsor for a child feminine hygiene products
existing sponsors, infrastructure.
living in poverty. and other necessities.
including yourself!
Vocational training
to equip for the future.
School resources
and uniforms
20% to defeat illiteracy and
Lessons at the project provide critical skills.
At least 80% of your donation directly benefits on how to stay
children in Compassion’s programme. safe and healthy.
One-to-one
relationship with
their only sponsor
80%
Medical check-ups
Letter translation and delivery
is such an important part of our
to fight back programme. Time and again, Compassion
against disease and keep graduates tell us that affirming words
children healthy. from their sponsors brought hope and
equipped them for the future.
You equip the incredible team of staff and project volunteers who care for and mentor your sponsored child week in, week out.
**----- End of picture text -----**
## **Your donation...**
You equip the incredible team of staff and project volunteers who care for and mentor your sponsored child week in, week out. By contributing to local project staff salaries and volunteer expenses, you give your sponsored child someone to listen to and disciple them.
SCARLET, AGED 6, ECUADOR
Back to contents **⬆**
compassionuk.org
**7**
Annual Report 2022/2023
Compassion UK
## DISRUPTION TO **COMPASSION’S ACTIVITIES**
## **_**
Compassion partners with **CONFLICT** in this region. They will be distributed at the earliest opportunity. local churches because **ETHIOPIA** we believe they are best In November 2020, conflict broke Since the start of the unrest, out in the Tigray (northern) region of Compassion has facilitated emergency placed to understand Ethiopia and spread to some of the support and training to social workers, the needs of their surrounding regions. In November volunteers and pastors on supporting 2022, a formal peace agreement was children and youth with emotional communities. Our frontline brokered, including the reestablishment trauma. We have also equipped church partners have of humanitarian access to Tigray. frontline church partners in the areas of child protection and access to relief established decades of We’re hugely encouraged by this services provided by the government trust, which enables them development, but our church partners’ and other organisations. efforts to restart programme activities to cultivate supportive have been met with challenges, as has and empowering our ability to communicate with them **NATURAL DISASTER** effectively and to supply funds. Our relationships with children **HAITI** team in Ethiopia has worked hard to and families. explore ways to get aid, where possible, Haiti experienced major earthquakes to church partners and the children and in 2021 and 2022, affecting 46 of families they serve. Compassion’s church partners and
in this region. They will be distributed at the earliest opportunity.
Haiti experienced major earthquakes in 2021 and 2022, affecting 46 of Compassion’s church partners and more than 150,000 Compassion supported children. Our frontline church partners worked with many families in the aftermath to rebuild or repair homes during 2022.
It has been a great encouragement that supported children. Our frontline This past year has seen the local church as of the end of June 2023, outside the church partners worked with many continue serving faithfully in the face Tigray region, there has been greater families in the aftermath to rebuild or of considerable challenge. Worsening stability, and projects have been able repair homes during 2022. economic pressures, conflict, natural to reopen. disasters and climate change—as well Following these disasters, the country **BURKINA FASO** as the continued disruption following has experienced political turmoil, the pandemic—have added additional Since the beginning of June 2022, a devastating rise in gang violence hardship and forced our church unrest has caused instability in Burkina and a severe food crisis. Some local partners into being adaptive and Faso, limiting our frontline church church partners have had to adapt the highly strategic in their response to partners’ ability to gather children way they support children to ensure immediate need while also cultivating together for regular activities. Due they are not put in harm’s way and to longer-term solutions. to increasing violence and instability, provide families with food packages and an inability to communicate with and agriculture support. Many church partners have found it or deliver aid to the affected regions, necessary to redeploy their funds to Compassion made the difficult decision prioritise the urgent needs of children, to suspend operations in that portion of families and communities. Rising the country. inflation has meant that funds haven’t gone as far as previously, so difficult Designated funds have been held and inventive choices have had to be at Compassion International’s made to identify priorities and tailor headquarters and remain committed to work for ever-changing contexts. the frontline churches and the children
AFTER THE IMPACT OF THE EARTHQUAKE IN HAITI, NINE YEAR OLD MIA RECEIVED PSYCHOLOGICAL SUPPORT OFFERED BY COMPASSION THAT HELPED HER FIND THE STRENGTH AND COURAGE TO FACE THE FUTURE.
FATUMA, FROM ETHIOPIA, SHARES HOW THE COMPASSION CENTRE MEET HER FAMILY’S NEEDS: “I’M COMFORTED, NOT JUST BECAUSE OF THE PROVISION OF FOOD BUT BECAUSE I KNOW I HAVE PEOPLE WHO CARE FOR ME”.
## **COST-OF-LIVING CRISIS**
## **SRI LANKA**
Sri Lanka continues to face its worst economic crisis since its independence in 1948. Driven by multiple factors, exacerbated by the pandemic and the rising cost of living, almost a quarter of the 22 million population is struggling to find adequate, nutritious food.
Compassion’s Senior Manager of Partnerships in Sri Lanka, Ayanka, says, “Twenty-one per cent of the population is experiencing food shortages…we see parents eating only one or two meals a day. Breastfeeding mothers do not eat three meals, so the nutrition level of children and caregivers is lowering.”
Just as our participant families, our staff and their dependents have experienced higher levels of anxiety and difficulty in acquiring essential goods and resources. Food, medicine and fuel have been difficult to obtain, and power cuts have become more severe, with periods of seven hours or more without power.
Encouraging children and young people to continue in their education, despite the considerable set-backs caused by the pandemic, has been hard. For those who feel unable to keep up at school, project staff find vocational training opportunities and come alongside the young people to help rebuild their confidence so they can once again start dreaming of brighter futures and not give up despite such challenging circumstances.
Back to contents **⬆**
compassionuk.org
8
Annual Report 2022/2023
Compassion UK
## SPEAKING UP **FOR CHILDREN**
## **_**
**‘‘The best part of volunteering with Compassion is the friendship and fellowship of working with a group of people who have a common passion, knowing that we are working to promote something so close to God’s heart.”**
**Our 136**
**active volunteer speakers helped us see**
**763**
**sponsorships during the financial year.**
**Our 27 administrative volunteers gifted approximately 5,720 HOURS during the financial year.**
**Our Challenge Event Volunteers raised**
**£66,000 during the financial year.**
**303 volunteers helped serve Compassion at live events during the financial year.**
**He took a little child whom he placed among them. Taking the child in his arms, he said to them, “Whoever welcomes one of these little children in my name welcomes me; and whoever welcomes me does not welcome me but the one who sent me.”** Mark 9:36-37
Back to contents **⬆**
compassionuk.org
9
**Annual Report 2022/2023**
**Compassion UK**
## REPORT Strategic
**10**
Annual Report 2022/2023
Compassion UK
## 1 JULY 2022 – 30 JUNE 2030
## **STRATEGIC GOALS**
Accelerate the rate of ministry growth to enable the support of more
In a six-year span between FY16 and FY22, Compassion increased the number of children it supported from 106,207 to 120,241, an average of 2,339 per year.
Despite the challenges experienced this year, and the difficult economic outlook, we have not felt led to give up on the long-term desire to serve more children more quickly.
In FY23, that number of children supported fell by 4,099.
than 200,000 children in
evidence-based holistic
child development programming by 2030.
## **FY30 200,000 GOAL**
**----- Start of picture text -----**
FY22
120,241 FY23
116,142
**----- End of picture text -----**
**----- Start of picture text -----**
FY16
106,207
**----- End of picture text -----**
**IN PURSUIT OF OUR FY30 GOAL, WE AIMED TO ACHIEVE THE FOLLOWING IN FY23…**
## **ACCELERATE OUR IMPACT BY SUPPORTING 123,700 CHILDREN**
of FY23. As a result, the number of sponsored children reduced by 1,500.
In addition, the number of children waiting for a sponsor reduced by 2,111. We register and financially support children while they are waiting for sponsors. We overestimated the number of children that would be sponsored in early FY23 and consequently registered more children in our programmes than we were able to find sponsors for. The current figure now registered better reflects upcoming sponsorship demand.
Our aim during FY23 was to increase the number of children supported in effective programming by 3,500, mostly through sponsorship growth.
The external environment proved to be much more challenging than anticipated at the time the goals were set, where we had assumed results would be similar to pre-pandemic levels. In reality, new sponsorships were much harder to find, particularly in the first few months
**----- Start of picture text -----**
JOHANNA WITH HER FRIENDS, ALL AGED 4-6, WON A
NATIONAL LEGO COMPETITION IN HONDURAS.
**----- End of picture text -----**
## **EMPOWER OUR PEOPLE BUILD CAPABILITIES ENABLING TO THRIVE FUTURE GROWTH**
## **KNOWING, LOVING AND CONNECTING SUPPORTERS**
We wanted to increase the number of highly engaged supporters because they pray for their sponsored children more often, write more encouraging messages and are less likely to cancel their sponsorship.
For several years Compassion UK’s team have had incredible engagement scores. Nonetheless we wanted to continue to see staff engagement metrics increase. We value our staff and want to see them thrive and enjoy their work.
We wanted to build a strategy and insights capability and an innovation lab tasked with ideating and developing new ways to increase the number of children we serve in effective programming.
We successfully set these functions up, and during the year, the lab identified 23 new opportunities, of which 6 will be developed further during FY24.
We aimed for a 5% increase in the number of highly engaged sponsors. We achieved a 1.7% increase.
Engagement did decrease slightly in our end-of-year survey. Our plans to address the main themes can be found on page 12.
**----- Start of picture text -----**
WE WERE
AIMING FOR AN
INCREASE OF
2%
ENGAGEMENT
DECREASED BY
1%
**----- End of picture text -----**
**WE WERE AIMING FOR AN INCREASE OF 5% WE ACHIEVED 1.7%**
Back to contents **⬆**
compassionuk.org
11
Annual Report 2022/2023
Compassion UK
## IN PURSUIT OF OUR FY30 GOAL, **WE AIM TO ACHIEVE THE FOLLOWING IN FY24**
## **EMPOWER OUR PEOPLE TO THRIVE**
## **CREATE NEW WAYS FOR SUPPORTERS TO SUPPORT CHILDREN IN POVERTY**
We want to create talent-development pathways for team members at Compassion. This will help team members achieve their own goals while positioning Compassion for the needs of the future.
We believe in the transformative power of child sponsorship, but we know that it doesn’t suit everyone who wants to release children from poverty in Jesus’ name. We want to create and test several new ways for supporters to be able to participate in Compassion’s mission during FY24 and have these available to supporters by FY25.
## **FIND NEW ONE-TO-ONE**
## **FOR AT LEAST 94.8% OF SPONSORS TO CONTINUE THEIR SPONSORSHIPS**
Our staff team also bear strain when vacancies arise. Knowing that the employment market has become more volatile, we aim to reduce our time to recruit replacement staff members so that positions are vacant for less time. This will include investing in our Employer Brand so that Compassion remains an attractive employer for prospective employees.
## **SPONSORSHIPS FOR 9,105 CHILDREN**
Our existing supporters remained very faithful throughout the UK cost-ofliving crisis. This economic crisis did, however, slightly curtail our ability to find new sponsorships for children.
We want sponsors to continue supporting children until they complete the sponsorship programme. This figure reflects both the challenging economic environment and our increased sponsorship rate, which might prompt some supporters to stop. We are trying to mitigate some of these cancellations by allowing other supporters to overcontribute to sponsorship and bear each other’s burdens.
During FY24, we want to increase the number of children we find sponsorships for by 18.2%. In the latter portion of FY23, there was evidence that this was a realistic goal.
## **OPERATING WITH EXCELLENCE FOR THE FUTURE**
To ensure that we are an efficient and effectively run organisation, we will invest in team-level innovation to improve the way that we operate and to continuously improve.
**INCREASE THE SPONSORSHIP RATE TO £32 TO MAKE SURE OUR PROGRAMMES REMAIN EFFECTIVE AND ADEQUATELY FUNDED**
We will also invest in a review of all our supporter-focused IT platforms to ensure we have the right tools and technology for the next phase of growth.
To continue to effectively meet the needs of children in poverty, it is essential that we ensure that children in our sponsorship programmes are adequately supported financially. Due to factors such as inflation, climate change and food shortages, the cost of supporting children has increased. In FY24, we will be asking our supporters to increase their monthly financial contribution from £28 per month, to £32 per month of which at least 80% will be used to benefit children in poverty.
**CONTINUE TO SERVE AT LEAST 116,142 CHILDREN IN POVERTY IN EFFECTIVE PROGRAMMING WHILE CREATING NEW WAYS TO GROW.**
SOPHIA, BRAZIL
Back to contents **⬆**
compassionuk.org
**12**
**Annual Report 2022/2023**
**Compassion UK**
## COMPASSION UK’S **IMPACT** THIS FINANCIAL YEAR
**_**
## **OUR SPONSORSHIP PROGRAMME**
We connect one vulnerable child born into poverty with one sponsor. Through sponsorship, every child is provided with holistic care in each area of their lives - mind, body, heart and spirit.
**12,098 CHILDREN WERE NEWLY SPONSORED**
**----- Start of picture text -----**
7,655
YOUNG ADULTS
AND CHILDREN LEFT
THE PROGRAMME
**----- End of picture text -----**
**94% OF SPONSORS CONTINUED THEIR SPONSORSHIP**
**AT THE YEAR END, THERE WERE 104,864 CHILDREN AND YOUTH REGISTERED IN OUR SPONSORSHIP PROGRAMME, A DECREASE OF 1,500**
## **PROJECT SPONSORSHIPS**
We’re piloting a new approach using Gift Aid funds to support whole projects in Rwanda, Uganda and Kenya and are monitoring outcomes.
**471,054 ENCOURAGING MESSAGES OF SUPPORT BETWEEN CHILDREN AND THEIR SPONSORS**
**5,660 CHILDREN WERE BEING SUPPORTED IN THIS PROGRAMME THIS YEAR, A DECREASE OF 100**
**£643,000 AGROECOLOGY SET UP AN SPENT SUPPORTING CENTRE IN TOGO FAMILIES WITH TEACHING CLIMATE AGRICULTURAL MITIGATION FARMING SUPPLIES, ANIMALS PRACTICES TO AND TRAINING IN MORE THAN FARMING PRACTICES, TO MITIGATE THE 3,500 ONGOING FOOD CRISIS PARTICIPANTS**
## **OUR CHILD SURVIVAL INTERVENTIONS**
We reach at-risk children even before they’ve been born. Through the provision of pre- and post-natal care, nutrition, and vaccinations, plus critical support and training for mums, we aim to give children the best start in life.
**----- Start of picture text -----**
4,220
MOTHERS AND
BABIES WERE
REGISTERED IN
CHILD SURVIVAL
INTERVENTIONS 2 TOILET 5
BY THE
BLOCKS AND 20 NEW SAFE
YEAR END, A TOILETS IN HOMES WATER SOURCES
DECREASE OF
776
OUR UNSPONSORED
CHILD PROGRAMME
We ensure children benefit from quality holistic
care while we try to find them a sponsor. £769,000
SPENT ON
7 COUNSELLING SUPPORTING
AT THE YEAR END,
ROOMS FOR FAMILIES AFFECTED
THERE WERE
CHILDREN IN BY THE FOOD CRISIS
SRI LANKA WITH IMMEDIATE
3,561
CHILDREN BEING FOOD, MILK AND
LOOKED AFTER VEGETABLES
WHILE WAITING
FOR A SPONSOR,
A DECREASE OF
2,111
COMMUNITY-BASED ENTREPRENEURSHIP
REFUGEE SUPPORT CHILD PROTECTION IN TRAINING FOR
10 [COMMUNITIES ] 200
In addition to the 116,142 IN TOGO YOUTH IN KENYA
children and young adults supported above,
we are also continuing to pilot supporting
South Sudanese
12,700 refugees in Uganda
**----- End of picture text -----**
Back to contents **⬆**
compassionuk.org
**13**
**Annual Report 2022/2023**
**Compassion UK**
**Bangladesh** 2,097 **Bolivia** 3,150 **Brazil** 2,833 **Burkina Faso** 4,815 **Colombia** 3,019 **Dominican Republic** 2,063 **Ecuador** 2,515 **El Salvador** 2,245 **Ethiopia** 8,053 **Ghana** 9,311 **Guatemala** 1,835 **Haiti** 5,875 **Honduras** 1,538 **Indonesia** 4,836 **Kenya** 12,356 **Mexico** 2,012 **Nicaragua** 2,115 **Peru** 2,911 **Philippines** 3,351 **Rwanda** 9,150 **Sri Lanka** 1,959 COMPASSION UK **Tanzania** 5,503 **CHILDREN SUPPORTED: Thailand** 2,092 **Togo** 5,760 **Uganda** 14,746 Compassion has started to partner with churches in **Malawi** , **Myanmar** , **Cambodia** and **Zambia** . In these four countries, we’re currently developing new church partnerships, **116,142**
Compassion has started to partner with churches in **Malawi** , **Myanmar** , **Cambodia** and **Zambia** . In these four countries, we’re currently developing new church partnerships, starting by supporting mums and babies through Child Survival Interventions.
**IN 29 COUNTRIES WHERE WE WORK**
Back to contents **⬆**
compassionuk.org
**14**
**Annual Report 2022/2023**
**Compassion UK**
## **FINANCIAL REVIEW** INCOME & EXPENDITURE
**FINANCIAL REVIEW** RESERVES
## **_ _**
**----- Start of picture text -----**
INCOME EXPENDITURE
£51.1m £50.1m
( £0.6m) ( £0.2m)
OTHER INCOME SURPLUS GENERATED
£0.4m £1.0m
( £0.2m) DONATIONS, GRANTS
FUNDRAISING
AND GIFT AID
£5.9m
£50.8m
( £1.0m)
( £0.4m)
SUPPORT & GOVERNANCE
£3.5m
( £0.2m)
FUNDS BENEFITING
CHILDREN IN POVERTY
£40.7m
( £1.0m)
86.5%
donations
were used for
charitable
activities
Grants made for the benefit of
99% 80.1% children to Compassion International including project costs and costs
of income is of all of running regional offices. Also
donations and donations were included are costs of facilitating
Gift Aid from used to benefit the relationship between child and
the public children in sponsor such as child letter writing
poverty and relevant apportioned overheads.
**----- End of picture text -----**
During the COVID-19 pandemic, opportunities to meet potential new supporters, in a cost-effective way, and introduce them to Compassion were limited. As a result, fundraising expenditure was reduced, which resulted in a lower number of sponsored children. This reduction in planned fundraising spending also resulted in the accumulation of excess general reserves.
The trustees and senior leadership team are acutely aware there has been a sharp rise in poverty due to factors such as inflation, food shortages, climate change and the aftereffects of COVID-19.
There is an urgent need to provide additional support to children and youth who are already in the sponsorship programme, while
**FRS102: Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity, apportioned to charitable activities.**
**RESTRICTED RESERVES £1.5m ( £0.9m)**
**A £1m legacy received right at the end of the year could not be used to benefit children before the year end and will be utilised in FY24.**
**Restricted reserves increased due to a large legacy received at year-end**
**This has resulted in a £1m surplus. Had this been granted, 82% of donations would have been used to benefit children.**
**Fundraising costs have increased as a result of:** ■ **The ending of pandemic restrictions** ■ **Inflation** ■ **Investment in innovation and testing**
**Intervention donations Most needed donations Sponsorship income increased by £1.47m decreased by £0.6m decreased by £0.4m due to fewer sponsored children**
at the same time, there is a need to find more supporters who will be able to offer the funding to provide for children who are not yet being reached.
At the end of the financial year, Compassion UK held £7.9m in general reserves, of which £4.0m were free reserves. The trustee’s policy is to hold six months of operational expenditure (£4.5m) in reserve to protect the organisation in unforeseen circumstances. The remaining £3.4m of general reserves are excess reserves that will be utilised over three years to increase the number of children supported by Compassion through investing in innovation and finding new supporters.
**GENERAL RESERVES £7.9m ( £0.2m)**
**----- Start of picture text -----**
£3.4m
**----- End of picture text -----**
**Ringfenced to benefit children in poverty by building future growth capabilities and finding new supporters**
**----- Start of picture text -----**
£4.5m
**----- End of picture text -----**
**General reserves minimum requirement (six months, operational expenditure)**
Back to contents **⬆**
compassionuk.org
**15**
Annual Report 2022/2023
Compassion UK
## PRINCIPAL **RISKS AND UNCERTAINTIES**
## **_**
Compassion UK is a global partner of Compassion International, which has a separate risk management and global audit function focusing on Compassion’s largescale risk profile internationally. Compassion entities work together in the identification and co-assessment of Compassion’s global risks. This includes the risks all the way from Compassion UK to the child and their project. The UK trustees bear the responsibility for ensuring that risks are managed and controlled appropriately.
## **Summary of major risks and Compassion’s risk mitigation**
## agriculture to increase household
resiliency. It is hoped this model can then be expanded beyond Togo.
## **Compassion’s frontline church partners**
Compassion’s local church partners are doing everything they can to support children and their families. This includes conducting routine health checks to identify and monitor malnutrition and hunger and then taking immediate and appropriate action.
## **MORE CHILDREN AND THEIR FAMILIES FALL INTO FOOD INSECURITY AND EXTREME POVERTY**
Children and their families are now more likely to experience hunger and food insecurity because of the global food crisis, rising inflation, extreme weather, drought, the impact of the COVID-19 pandemic and conflicts in Ukraine and elsewhere. Our commitment to the children we serve remains the same, but their needs have grown.
We are also strengthening the capacity of local church partners to address the needs of children and youth in their programme so that they can reach the most vulnerable in cost-effective and sustainable ways.
## **Generosity of our supporters**
## **IMPACT OF THE VOLATILITY IN THE**
We are grateful and blessed to have supporters who continue to be inspired, even in these difficult times, to give generously to prevent even more children being drawn into extreme poverty.
## **ECONOMIC CLIMATE**
Our supporters are affected by the greater cost-of-living expenses caused by the impact of economic uncertainties, rising global energy prices due to the war in Ukraine, rising inflation, slowing economic growth and recovery from the COVID-19 pandemic. This could lead to reduced charitable giving and donations, a decline in philanthropic giving and insufficient programmatic funds. This is likely to be compounded by rising costs of doing business, including salaries, and increased need for the children served by our programmes.
## **Food crisis appeal**
In response to the global food crisis, we have an ongoing appeal to provide emergency food packages to families vulnerable to food insecurity and provide long-term food security through the distribution of seeds, fertiliser, livestock and training on building and maintaining home gardens and small-scale farms.
We have also invested in an agro-ecology training centre to teach climate adaptive
## **Child sponsorship rate change**
We recognise the current period of inflation has affected our supporters differently. After prayerful consideration, plans are in progress to change our child sponsorship amount to £32 a month. All our generous supporters will have the choice to either opt out of the change of sponsorship rate or make a higher donation to support those who can’t pay more.
## **Hedging**
Careful planning means we can increase currency stability via hedging.
## **Diversifying revenue stream**
We have developed a strategic focus on the diversification of our income, including investigating innovative initiatives to create innovative initiatives to increase additional revenue streams.
## **REDUCED PARTNERSHIP**
## **OPPORTUNITIES**
The impact of the COVID-19 pandemic on events and church attendance disrupted opportunities for partnerships to promote the Compassion sponsorship programme.
## **Increasing our reach via investment in church partnerships, volunteers and**
## **event organisers**
We have expanded our volunteer speaker network and continue to find ways to partner with churches and a wider range of event organisers both physically and digitally.
## **Increasing our digital marketing reach**
We are using creative digital approaches for our marketing and fundraising initiatives to maximise opportunities to reach wider audiences.
## **ADVERSE NEGATIVE PUBLICITY**
Any risk of potential reputational damage as a result of incidents or crises that may impact Compassion or our partners is carefully managed. Our response to and
resolution of any issues are overseen by our trustees.
## **Investment in media monitoring**
We invest in media monitoring services to be aware of any emerging stories relating to Compassion, our partners or our area of ministry as soon as possible. In addition, we have clear and robust serious incident reporting and crisis communication processes in place, which includes collaboration with Compassion International and our UK-based PR agency, to manage any potential or emerging communications issues.
## **CYBERSECURITY THREATS**
In an increasingly connected world, cybersecurity threats are becoming more sophisticated.
## **We continued to strengthen technical and organisation safeguards**
Compassion UK has successfully maintained the National Cyber
Security Centre’s Cyber Essentials Plus Certification, demonstrating that sufficient measures are in place to guard against the most common cyber threats. We continue to implement security enhancements to proactively identify cyber risks and commit to conducting robust security reviews of suppliers who are engaged as data processors.
## **SAFEGUARDING INCIDENTS**
Protecting people who come into contact with Compassion, particularly children, is the heart of what we do. Increasing global risks related to COVID-19, the food crisis, political instability and complex emergencies are causing vulnerabilities that are increasing rates of child marriages, child labour, trafficking and family separation in developing countries. For more on safeguarding, see page 19.
## **Child protection remains Compassion’s**
## **key priority**
Compassion continues to be vigilant in embedding protection and safeguarding efforts into all areas of the ministry. This includes implementing robust and rigorous procedures that encourage reporting. Compassion International has also made significant investment in delivery of global training and improving systems for global reporting and incident management.
## **FINANCIAL INCIDENTS**
Our programmes operate in areas of poverty within countries where there may be political and/or social unrest and an increased risk of corruption and fraud.
## **Working with the right partners**
We have a rigorous recruitment and selection process for choosing partners we work with. Our partnership agreements set out responsibilities and expectations, including alignments with Compassion global policies and financial control frameworks, reporting and audit systems.
## **Supervising and auditing**
Our main national offices in each country supervise local churches, overseeing financial, operational and regulatory compliance. Suitable and qualified finance staff are employed to review expenditure in detail, which helps to ensure that money is being spent correctly, alongside an independent internal audit department that reviews both local churches and the national offices.
## **Training and awareness**
Compassion’s global audit team lead the development and delivery of fraud awareness training, improving fraud detection capabilities.
## **Financial incident management**
There is a robust investigation process in the event of an actual or suspected financial incident. During the investigation, partnerships with churches may be suspended and funds withheld. A serious incident process is also in place for reporting to appropriate local law enforcement agencies and UK regulators. Based on the outcome of the investigation, a church partnership may be terminated, and the perpetrators dismissed from their role. Compassion will take reasonable steps to recover stolen or intentionally misused funds.
## **RECRUITMENT CHALLENGES**
The challenging labour market has led to difficulty recruiting for some roles.
## **Annual pay reviews and remuneration benchmarking**
We remain committed to attracting, recruiting and retaining the right calibre of highly skilled staff. We promote the distinct benefits of working for the Compassion ministry. Our trustees
conduct annual reviews of the pay policy and pay scales. Levels of remuneration are benchmarked regularly against labour market trends and other organisations in the charity sector.
## **ACTS OF GOVERNMENT AND**
## **REGULATORY BODIES**
Stringent and complex legal restrictions imposed by governments on nongovernmental organisations in programme countries where Compassion operates could lead to the closure or suspension of programme and/or operational activities.
## **Close monitoring of legal and regulatory developments**
Compassion International regularly monitors and assesses legal restrictions that could constrain our operations in countries where we work/operate/ serve and takes appropriate action to implement necessary changes relevant to programmatic activities. We are also exploring children and youth-led advocacy efforts.
## **Implementing temporary adaptations**
We have the capability to make temporary adaptations to our programme delivery where required. This includes delivering a home-based programming model and direct cash transfers for caregivers of participants.
## **CONFLICT AND UNSTABLE POLITICAL**
## **ENVIRONMENTS**
Compassion’s full range of programming operations in some countries where our national offices are based were either closed or suspended because of conflict or unstable political environments.
## **Robust business continuity and disaster**
## **recovery planning**
Compassion International monitors persistent and emerging issues in the national offices and has in place contingency measures for adapting activities, as far as possible, to meet the needs of the participants and ensure the safety and security of the workforce.
Back to contents **⬆**
compassionuk.org
16
**Annual Report 2022/2023**
**Compassion UK**
17
Annual Report 2022/2023
Compassion UK
RICHMOND WANDERA, TRUSTEE
## OUR **VOLUNTEER TRUSTEES**
## **_**
The trustees are the directors of Compassion UK for the purposes of company law and the trustees of Compassion UK for the purposes of charity law. All trustees are also members.
**----- Start of picture text -----**
Jon Toohey
**----- End of picture text -----**
**----- Start of picture text -----**
Bertram Shaun Professor Anna
Sinniah Delfin Posada Maslin, PhD
**----- End of picture text -----**
**----- Start of picture text -----**
Tim Mal t on
**----- End of picture text -----**
**Fiona Sellers**
Chair of the Board of Trustees until 01 November
Appointed Chair of the Board of Trustees
Safeguarding Trustee Lead
Deputy Safeguarding
Chair of the People and Culture Committee (appointed as a trustee 03 March 2023)
(Appointed as a trustee 10 November 2023)
A former pastor, Delfin is an
Trustee Lead
2023 (retired as a trustee
## 01 November 2023
internationally experienced solicitor and founding member of his law firm.
Anna has been working Tim has spent the last globally focusing on 20 years in investment health, human rights banking specialising in and international emerging markets. Prior development for over to this, he was involved in 40 years, representing the insurance industry for the UK at numerous 15 years. He is currently an international fora. advisor to a large financial services firm.
Shaun is the Chief Operating Officer and
10 November 2023)
Jon is a qualified
Fiona has a wealth of experience from a career in HR. She has been the director of HR at HTB Group for over five years.
on the board of one
accountant, treasurer and member of the Institute of Directors with more than 30 years, experience in senior finance, systems and change management roles with global
of the world’s leading professional service firms in the areas of risk, strategy and people. He has a wealth of experience in multiple industries.
multinational companies in various industries.
**----- Start of picture text -----**
Matthew Walker
**----- End of picture text -----**
**----- Start of picture text -----**
David Steinegger
**----- End of picture text -----**
**----- Start of picture text -----**
Cathryn Clarke
**----- End of picture text -----**
**----- Start of picture text -----**
Adesola Irukwu
**----- End of picture text -----**
**----- Start of picture text -----**
Dr Richmond
Wandera, PHD
**----- End of picture text -----**
**Hedy Hodson**
Chair of the Finance and
(Retired as a trustee Chair of the Finance and 10 November 2023) Audit Committee Matthew is a qualified Hedy is a chartered accountant and Chartered accountant who has had Member of the Institute various roles working with of Housing. Passionate the public sector, charities, about improving quality churches and community of life for those he serves, projects with a particular he is Chief Executive of focus on families and Leeds Federated Housing young people. Association and Chair of PlaceShapers.
(Appointed as a trustee 10 November 2023) A chartered accountant with 40 years, experience in financial services, as well as significant experience on the board of several charities and in church leadership.
(Retired as a trustee 28 October 2022) Cathy and her husband are involved in the global leadership of Hillsong Church, a thriving church in the heart of cities around the world.
(Appointed as a trustee 03 March 2023)
Richmond is the senior pastor of New Life Baptist Church in Kampala, Uganda, the President and Founder of Pastors Discipleship Network and a Compassion Graduate.
Adesola is the co-founder of Bright Futures For African Children. She holds a Bachelor’s degree in Dental Surgery from the University of Ibadan, Nigeria and a Masters in Conference and Events Management from the University of Westminster, London.
**----- Start of picture text -----**
Justin Dowds
**----- End of picture text -----**
**----- Start of picture text -----**
Amy Hiorns
**----- End of picture text -----**
**----- Start of picture text -----**
Mark Preston Nick Harris
**----- End of picture text -----**
**----- Start of picture text -----**
Stephen Blow
**----- End of picture text -----**
## **LEADERSHIP TEAM**
Authority to conduct the day-to-day operations of the charity is delegated to the Chief Executive Officer, who is responsible for carrying out the strategies and policies set by the trustees. The trustees’ responsibilities are set out on page 21.
Chief Executive Officer
Chief Operating Officer and Company Secretary
Senior Director of Partnerships
Senior Director Finance Director of Marketing and Engagement
## HOW CHILD SPONSORSHIP **CHANGED MY LIFE**
**“As a child, poverty began to speak to me. I felt I was nothing, that I didn’t matter - nobody cared to know my name.”**
A church nearby heard about his family’s need and registered Richmond into their Compassion project. Richmond soon received news that he had been sponsored by Heather.
“I cannot find the words to describe
the joy that filled our home when we got the news,” Richmond explains with a smile.
## RICHMOND WANDERA, UGANDA
compassionuk.org
18
Annual Report 2022/2023
Compassion UK
## **SAFEGUARDING**
Compassion follows all relevant national laws relating to reporting child maltreatment and criminal behaviour.
## **_**
Compassion UK fully complies child’s interest is always our with our responsibility to primary concern, and all report all serious incidents communications and marketing to the Charity Commission, activities have the dignity and Foreign, Commonwealth & protection of child or youth Development Office (FCDO) participants at the core. and any other relevant authority. During the past year, Field experience – in-person three incidents were reported travel has started to resume, to the Charity Commission and existing protocols like involving a participant who was background checking, Code sponsored through Compassion of Conduct adherence and inUK. No incident involved any country training and supervision Compassion UK staff member remain in place. or volunteer. Each incident was fully investigated, with a **REPORTING** survivor-centred approach.
The protection of our work. During the last year, the Safeguarding Committee anyone who comes met to review policies and other into contact with related documents and consider progress and activities towards Compassion UK the safeguarding strategy or our work is at implementation. Safeguarding remains an agenda item at Board the core of our meetings; regular Executive ministry, and we are Team meetings and updates are provided to every trustee. committed to doing Compassion UK and Compassion all we can to keep International are now using a new incident management system. children and adults Our safeguarding policy has also safe, ensuring that been updated. they are known, loved Safer recruitment – – and protected. safeguarding is embedded in
Everyone at Compassion UK they are known, loved **MODERN SLAVERY** Safer recruitment – – is responsible for reporting and protected. safeguarding is embedded in any potential incident, abuse Compassion UK is committed the recruitment processes for or concern they witness or are to upholding high standards of We have a zero-tolerance staff, trustees and volunteers, made aware of. This includes accountability and transparency approach to safeguarding including background and DBS a responsibility to report any to ensure modern slavery and issues involving children, with checking and high standards of breach of Compassion’s Code human trafficking are not taking robust systems in place, both behaviour being set. Over the of Conduct. Compassion place within our organisation or in the UK and overseas, to past year, we have updated and UK has an appropriate and supply chains. To date, we have prevent, identify and respond improved our Code of Conduct. accessible process for reporting found no evidence of this. to harm. The Compassion UK safeguarding concerns that is safeguarding implementation Training and development – available to all. Full training has We have rigorous systems and strategy has been updated all staff and trustees receive been provided to all staff at processes for appropriate and over the past year and is child protection training during Compassion UK on the reporting proportionate due diligence embedded within the three their initial onboarding. Over protocols and procedures. and managing risks associated pillars: prevention, reporting the course of the year, all with supply chains and and response. staff will receive team-specific Compassion UK has a international operations. training, which will include an ‘Whistleblowing Policy and **PREVENTION** audit of the work each team Procedure’ intended to We also have key policies Everyone at Compassion UK carries out to understand if any encourage and enable anyone to and procedures that include is responsible for creating and additional resources, training raise serious concerns without guiding principles for the maintaining an environment that or processes are required to fear of victimisation, subsequent protection from modern slavery neither tolerates nor condones improve our safeguarding discrimination or disadvantage. and human trafficking. Our the maltreatment of children or work. The full Board received Whistleblowing concerns can be safeguarding refresher training adults. Activities and efforts to safeguarding training in March submitted anonymously through framework contains a specific promote safeguarding primarily 2023 and signed the updated our website. This includes the focus on modern slavery and focus on stringent preventative Code of Conduct. Further option to report directly to the human trafficking. interventions that reduce risk training has been developed for Whistleblowing trustee. factors. These include: volunteers and contractors in The Board of Trustees annually **RESPONSE** high-risk roles. reviews progress against our
Compassion UK is committed to upholding high standards of accountability and transparency to ensure modern slavery and human trafficking are not taking place within our organisation or supply chains. To date, we have found no evidence of this.
We also have key policies and procedures that include guiding principles for the protection from modern slavery and human trafficking. Our safeguarding refresher training framework contains a specific focus on modern slavery and human trafficking.
factors. These include: volunteers and contractors in The Board of Trustees annually **RESPONSE** high-risk roles. reviews progress against our Governance and Leadership Compassion’s greatest objectives for the protection – our Board of Trustees and Communications and content – responsibility is to protect from modern slavery and human Executive Team take their Compassion’s Marketing and children from harm. If a child is trafficking to ensure adequate safeguarding responsibilities very Communications Team has harmed, the priority is to restore oversight and have delegated seriously, actively considering global standards aligning with the child’s safety and provide an the regular review and reporting how to strengthen this area of our child protection policies. The opportunity for them to heal. to the Safeguarding Committee.
## **OUR ENVIRONMENT**
## **_**
People living in poverty are disproportionately harmed by climate issues. We want to do all we can to be part of the solution.
instance, using a biodegradable, have a focus on the employment starch-based protective cover for and empowerment of women. our magazine.
> ■ Where possible, ensure all cars are **GOING FORWARD, WE ARE** fully electric. **COMMITTED TO:**
- Offer virtual trips to visit ■ Limiting the amount of air travel
- all we can to be part of Compassion programmes as an and selecting airlines based on alternative to in-person visits. sustainability credentials for
- the solution. necessary flights.
- Through assessing our carbon **DURING THE LAST YEAR:** ■ Transferring the office from a footprint, we monitor, reduce and ■ Our assessment this year showed 93% renewable tariff to a 100% offset our emissions to maintain our that emissions increased by 107 renewable tariff. carbon-neutral status. tonnes of CO2 to 178 tonnes of ■ Offsetting the carbon emissions CO2. This is linked to increased caused during future periods.
- **WE CONTINUE TO:** activity levels post-pandemic. ■ Harness energy-efficient systems, Emissions remain 82.5% lower As we move forward, we are such as solar panels and other than the baseline established when committed to reducing our technologies, in our offices. emissions began being measured. environmental impact to ensure we
- ■ Offer paper-free experiences for ■ We offset our carbon emissions do all we can to protect people and supporters. We have identified through anti-deforestation efforts the planet. this could save half a million in Congo while also planting trees printed documents each year. in Kenya. These schemes provide
- ■ Reduce single-use plastic, for employment for local people and
Through assessing our carbon footprint, we monitor, reduce and offset our emissions to maintain our carbon-neutral status.
**----- Start of picture text -----**
WINNER, AGED 20
FROM TOGO, HAS BEEN
ENCOURAGED THROUGH
COMPASSION’S PROGRAMME
TO PURSUE HER PASSION
FOR ENGINEERING. HERE,
SHE STANDS WITH HER
LATEST CREATION; A SOLAR-
POWERED WHEELCHAIR.
Back to contents ⬆
**----- End of picture text -----**
compassionuk.org
19
Annual Report 2022/2023
Compassion UK
## **FUNDRAISING STATEMENT**
## **_**
We believe that Compassion UK has maintained its extreme poverty membership with the Fundraising Regulator and complied with the Code of can be eradicated Fundraising Practice and the Fundraising in our lifetime. Promise. Members of relevant departments are also registered with the Institute This ambitious aim of Fundraising. cannot be achieved Compassion UK’s fundraising activities are without igniting conducted mainly by its employees and members of the volunteers. This primarily involves working in partnership with a wide range of stakeholders, public to action. including UK churches and Christian events We are blessed and festivals. During fundraising events, a ‘Compassion Moment’ is featured, which and thankful for showcases our work and inspires people the long-term across the country to help a child step out of poverty through sponsorship. commitment and generosity of our Additionally, Compassion has publicfacing touchpoints, such as our website, supporters as we and the Compassion App, which promotes work together to opportunities to sponsor a child, donate to our work and support our emergency appeals empower children and other fundraising campaigns. and their families Compassion has a number of supporters who to break free undertake fundraising activities either on our from poverty. behalf or through their own initiative. We
procedures for handling complaints. In the 2022-2023 financial year, we received 39 fundraising complaints. All complaints were treated seriously, and prompt actions were taken to resolve these satisfactorily. The trustees and senior leadership continue to review complaints as a standing agenda item at their meetings. This includes reviewing lessons learnt, which are used to inform future training needs or procedure reviews.
When conducting our direct marketing activities, we remain committed to:
- offering choice and control to personalise permissions and preferences to hear about our work;
- ensuring we have robust data protection and privacy policies;
- treating those who come into contact with our work respectfully and fairly.
We monitor opt-in numbers and communication channels that our supporters prefer. We are also signed up to the Fundraising Preference Service (FPS) and ensure any opt-out requests are actioned promptly. We received one FPS suppression request in the last year, but it related to an individual whose details had never been held in our database.
Compassion has a number of supporters who undertake fundraising activities either on our behalf or through their own initiative. We have also taken reasonable steps to monitor and review fundraising activities undertaken by third-party organisations acting on our behalf, including applying robust duediligence procedures, reviewing agreements and contractual clauses in relation to compliance with the Code of Fundraising Practice, and performance reviews.
our behalf, including applying robust dueCompassion UK’s Policy on Supporters diligence procedures, reviewing agreements in Vulnerable Circumstances is publicly and contractual clauses in relation to available on our website. We ensure everyone compliance with the Code of Fundraising involved in fundraising activities is equipped Practice, and performance reviews. to identify, interact and respond to our supporters who are in potentially vulnerable Compassion UK does not engage circumstances. We will always be mindful to professional fundraisers but has agreements respond appropriately to the particular needs with Commercial Participators that are of a supporter and ensure we have effective longstanding corporate partners of policies and procedures in place to treat them the ministry. respectfully and fairly.
- Compassion UK’s Supporter Charter is available on our website and outlines our
## **GOVERNING DOCUMENT**
## **_**
committee being members of the Board.
Compassion UK Christian Child where Compassion works to see the Development is a company limited by programmes first-hand. guarantee and governed by its Articles of Association dated 24 February 1999, which was last amended by **ORGANISATION** special resolution on 23 June 2023. It is registered as a charity with the The Board of Trustees must have at Charity Commission in England and least three members and is responsible Wales and the Office of the Scottish for setting strategies and policies and Charity Regulator. Members must ensuring that these are implemented. accept and believe in the Compassion UK Statement of Faith. Each member All trustees give their time freely, and agrees to contribute £10 in the event of no trustee remuneration was paid in the the charity being wound up. year. Details of trustee expenses and
The Board is responsible for determining the nature and extent of the principal risks it is willing to take in achieving its strategic objectives. The Board maintains sound risk management and internal control systems.
Trustee Indemnity Insurance is provided by Compassion UK for trustees.
All trustees give their time freely, and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in notes 11 and 18 to the accounts.
## **CONNECTED CHARITIES**
## **COMPASSION INTERNATIONAL**
We are a member of the Compassion Global Partner Alliance, consisting of organisations throughout the world with a mutual commitment of purpose, structure and methodology. In order to be as effective as possible, the delivery of help to children in beneficiary countries is coordinated and implemented centrally through Compassion International. Fundraising partner countries transfer funds raised to Compassion International, which are then used to support programmes in the 29 frontline field countries. Grants paid to Compassion International cover the grants to the frontline church partners and running the field country and regional offices, as well as programme costs at Compassion International, as this is the most efficient way to distribute funds.
## **APPOINTMENT OF VOLUNTEER TRUSTEES**
Trustees are required to disclose all relevant interests and, in accordance with the trustees’ policy, withdraw from decisions where a conflict of interest arises.
Every trustee volunteers their services to the charity and must be a member. The chair of the Board of Trustees is elected by the trustees from one of their number.
The trustees conduct an annual Board review to evaluate performance against the principles set out in the Charity Governance Code. The evaluation report is used to identify and explain areas of strength and areas for development. We have established procedures that ensure actions to implement the Code’s principles are reviewed routinely at each Board meeting to ensure ongoing accountability.
New trustees are appointed by the existing trustees according to the charity’s governing document, ensuring that the Board has the appropriate balance of skills, experience, independence and knowledge to enable them to carry out their respective duties and responsibilities.
## **TRUSTEE INDUCTION AND TRAINING**
There are now three sub-committees, **COMPASSION IRELAND** namely the Finance and Audit Committee, the Safeguarding Committee We have an agreement to provide and the People and Culture Committee, support services to Compassion which exist to provide support and Ireland for a fixed fee of 12% of all advice to the Board in its governance donations received. This excludes gifts role in respect of finance and audit and appeals, of which 100% is sent to issues, safeguarding, people and culture. Compassion International. The committees are appointed by the Board with no fewer than four members, with a minimum of two members of the
Trustees are given training and documentation to brief them on their legal obligations under charity and company law, the content of the Articles of Association, the decisionmaking process, the business plan and the recent financial performance of the charity. Every three to four years, all trustees visit one of the countries
Back to contents **⬆**
compassionuk.org
20
Annual Report 2022/2023
Compassion UK
## TRUSTEES’ RESPONSIBILITIES
## **IN RELATION TO THE FINANCIAL STATEMENTS**
The trustees (who are also the directors of Compassion UK Christian Child Development for the purposes of company law), are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
## **AUDITOR**
Company law requires the trustees The trustees are responsible for to prepare financial statements for keeping adequate accounting records each financial year. Under that law, that are sufficient to show and explain the trustees have elected to prepare the charity’s transactions and disclose the financial statements in accordance with reasonable accuracy at any time with United Kingdom Generally the financial position of the charity and Accepted Accounting Practice (United enable them to ensure that the financial Kingdom Accounting Standards and statements comply with the Companies applicable law). Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Under company law, the trustees must the Charities Accounts (Scotland) not approve the financial statements Regulations 2006 (as amended). unless they are satisfied that they give a true and fair view of the state of affairs They are also responsible for of the charity and the income and safeguarding the assets of the charity expenditure of the charity for that period. and hence for taking reasonable steps for the prevention and detection of In preparing these financial statements, fraud and other irregularities. the trustees are required to:
Menzies LLP are deemed to be reappointed under section 487 [2] of the Companies Act 2006.
## **STRATEGIC REPORT**
The company has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, to set out within the Strategic Report the Company’s Strategic Report Information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
## **DISCLOSURE OF INFORMATION TO THE AUDITORS**
- Select suitable accounting policies and then apply them consistently;
- and then apply them consistently; Each of the persons who is a trustee
- ■ Observe the methods and principles at the date of approval of this in the Charities Statement Of report confirms: Recommended Practice (SORP);
The Trustees’ Report (incorporating the Strategic Report) was approved by the Board of Trustees (which is also the Board of Directors) on 10 November 2023 and signed on its behalf by Shaun Sinniah (Chair).
- Make judgements and estimates that ■ That in so far as they are aware, are reasonable and prudent; there is no relevant audit information
- ■ State whether applicable UK of which the charity’s auditor is Accounting Standards have been unaware; and followed, subject to any material ■ Each trustee has taken all steps departures disclosed and explained that they ought to have taken as a in the financial statements; and trustee to make themselves aware of
- ■ Prepare the financial statements on any relevant audit information and the going concern basis unless it is to establish that the charity’s auditor inappropriate to presume that the is aware of that information. charitable company will continue in business.
On behalf of the Board
Shaun Sinniah (Chair) 10 November 2023
## INDEPENDENT AUDITOR'S REPORT **TO THE MEMBERS OF COMPASSION UK** CHRISTIAN CHILD DEVELOPMENT
## **OPINION**
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. 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 audited the financial statements of Compassion UK Christian Child Development (the ‘charitable company’) for the year ended 30 June 2023, which comprise the Statement of Financial Activities, Balance Sheet, 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:
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.
- give a true and fair view of the state of the charitable company’s affairs as at 30 June 2023, and of its incoming resources and application of resources for the year then ended;
## **CONCLUSIONS RELATING TO GOING CONCERN**
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
In auditing the financial statements, we have concluded that the director’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
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 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.
We have nothing to report in this regard.
## **OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
## **BASIS FOR OPINION**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
- the trustees’ report has been prepared in accordance with applicable legal requirements.
## **OTHER INFORMATION**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report
Back to contents **⬆**
compassionuk.org
21
Annual Report 2022/2023
Compassion UK
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
the charitable company’s ability to the following laws and regulations continue as a going concern, disclosing, were most significant, including as applicable, matters related to going the Companies Act 2006, Charities concern and using the going concern Act 2011, the Charities and Trustee basis of accounting unless the directors Investment (Scotland) Act 2005, either intend to liquidate the charitable the Safeguarding Vulnerable Groups company or to cease operations, or Act 2006, GDPR and the UK Code of have no realistic alternative but to do so. Fundraising Practice. We assessed the extent of compliance with these **AUDITOR’S RESPONSIBILITIES** laws and regulations as part of our **FOR THE AUDIT OF THE** procedures on the related financial **FINANCIAL STATEMENTS** statement items.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005, and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
We have been appointed as auditor under the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
> ■ We understood how the charitable company is complying with those legal and regulatory frameworks by making inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes.
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- ■ the financial statements are not in agreement with the accounting records and returns; or
not been kept, or returns adequate Our objectives are to obtain reasonable our review of board minutes. for our audit have not been received assurance about whether the financial ■ The engagement partner assessed from branches not visited by us; or statements as a whole are free from whether the engagement team ■ the financial statements are not material misstatement, whether due to collectively had the appropriate in agreement with the accounting fraud or error, and to issue an auditor’s competence and capabilities records and returns; or report that includes our opinion. to identify or recognise non■ certain disclosures of directors’ Reasonable assurance is a high level compliance with laws and remuneration specified by law are of assurance, but is not a guarantee regulations. The assessment did not not made; or that an audit conducted in accordance identify any issues in this area. ■ we have not received all the with ISAs (UK) will always detect a ■ We assessed the susceptibility information and explanations we material misstatement when it exists. of the charitable company’s require for our audit; or Misstatements can arise from fraud financial statements to material ■ the directors were not entitled to or error and are considered material misstatement, including how fraud prepare the financial statements if, individually or in the aggregate, might occur. As a result of the above in accordance with the small they could reasonably be expected procedures, we considered that the companies regime and take to influence the economic decisions opportunities and incentives that advantage of the small companies’ of users taken on the basis of these may exist within the organisation exemptions in preparing the financial statements. for fraud and identified the greatest directors’ report and from potential for fraud in the posting the requirement to prepare a Irregularities, including fraud, of fraudulent journal entries, strategic report. are instances of non-compliance fictitious employees and timing of with laws and regulations. We revenue recognition. **RESPONSIBILITIES OF** design procedures in line with our ■ Audit procedures performed by the **DIRECTORS** responsibilities, outlined above, to engagement team included: As explained more fully in the trustees’ detect material misstatements in z Identifying and assessing the responsibilities statement set out on respect of irregularities, including design effectiveness of controls page 21, the trustees are responsible fraud. The specific procedures for management has in place to for the preparation of the financial this engagement and the extent to prevent and detect fraud; statements and for being satisfied that which these are capable of detecting z Understanding how those they give a true and fair view, and for irregularities, including fraud, is charged with governance such internal control as the trustees detailed below: considered and addressed determine is necessary to enable the the potential for override of preparation of financial statements that ■ The charitable company is subject controls or other inappropriate are free from material misstatement, to laws and regulations that directly influence over the financial whether due to fraud or error. In affect the financial statements, reporting process; preparing the financial statements, the including financial reporting z Challenging assumptions trustees are responsible for assessing legislation. We determined that and judgments made by
- z Challenging assumptions and judgments made by
management in its significant accounting estimates;
A further description of our body, for our audit work, for this report, responsibilities is available on the or for the opinions we have formed. Financial Reporting Council’s website at: https://www.frc.org.uk/OurWork/Audit/Audit-and-assurance/ Standards-and-guidance/Standardsand-guidance-for-auditors/Auditorsresponsibilities-for-audit/Descriptionof-auditors-responsibilities-for-audit. Janice Matthews FCA, Senior aspx. Statutory Auditor
- z Identifying and testing journal entries, in particular, any journal entries posted with unusual account combinations;
- z Carrying out checks to establish the validity of employees, and
- z Reviewing and verifying the basis on which income is recognised in the accounts
Janice Matthews FCA, Senior Statutory Auditor
## **USE OF OUR REPORT**
For and on behalf of Menzies LLP, This report is made solely to the Statutory Auditor charitable company’s members, as a body, in accordance with Chapter 3 of Chartered Accountants Part 16 of the Companies Act 2006 and Statutory Auditor to the charitable company’s trustees, as Magna House, a body, in accordance with regulation 18-32 10 of the Charities Accounts (Scotland) London Road, Regulations 2006. Our audit work has Staines-upon-Thames, been undertaken so that we might state TW18 4BP
Because of the inherent limitations of This report is made solely to the an audit, there is a risk that we will not charitable company’s members, as a detect all irregularities, including those body, in accordance with Chapter 3 of leading to a material misstatement Part 16 of the Companies Act 2006 and in the financial statements or nonto the charitable company’s trustees, as compliance with regulation. This risk a body, in accordance with regulation increases the more that compliance 10 of the Charities Accounts (Scotland) with a law or regulation is removed Regulations 2006. Our audit work has from the events and transactions been undertaken so that we might state reflected in the financial statements, as to the charitable company’s members we will be less likely to become aware those matters we are required to state of instances of non-compliance. The risk to them in an auditor’s report and for is also greater regarding irregularities no other purpose. To the fullest extent occurring due to fraud rather than permitted by law, we do not accept or error, as fraud involves intentional assume responsibility to anyone other concealment, forgery, collusion, than the charitable company and the omission or misrepresentation. charitable company’s members as a
Dated: 10 November 2023
Menzies LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Back to contents **⬆**
compassionuk.org
22
**Annual Report 2022/2023**
**Compassion UK**
Back to contents **⬆**
compassionuk.org
**23**
Annual Report 2022/2023
Compassion UK
## STATEMENT OF **FINANCIAL ACTIVITY**
## **BALANCE SHEET**
## **(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
NOTE RESTRICTED DESIGNATED GENERAL TOTAL RESTRICTED DESIGNATED GENERAL TOTAL
FUNDS FUNDS MOST FUNDS FUNDS 2023 FUNDS FUNDS MOST FUNDS FUNDS 2022
NEEDED NEEDED
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
INCOME FROM
Donations and legacies 5a 34,283 7,072 9,276 50,631 33,389 7,581 9,200 50,170
Grants 5b 169 - - 169 280 - - 280
TOTAL VOLUNTARY INCOME 34,452 7,072 9,276 50,800 33,669 7,581 9,200 50,450
Charitable activities 6 - - 70 70 - - 71 71
Interest - - 259 259 - - 24 24
Profit/(loss) on disposal
of assets - - 7 7 - - - -
TOTAL INCOME 34,452 7,072 9,612 51,136 33,669 7,581 9,295 50,545
EXPENDITURE ON
Raising funds 7 - - 5,902 5,902 - - 4,966 4,966
Charitable activities 8 33,563 7,104 3,531 44,198 34,016 7,642 3,287 44,945
TOTAL EXPENDITURE 33,563 7,104 9,433 50,100 34,016 7,642 8,253 49,911
NET MOVEMENT IN FUNDS 889 (32) 179 1,036 (347) (61) 1,042 634
RECONCILIATION OF FUNDS
Total funds
649 32 7,656 8,337 996 93 6,614 7,703
Brought forward
TOTAL FUNDS CARRIED FORWARD 1,538 - 7,835 9,373 649 32 7,656 8,337
**----- End of picture text -----**
The statement of financial activities includes all gains and losses recognised in the year. All income and expenses derive from continuing activities.
## **TREATMENT OF RESTRICTED, DESIGNATED AND GENERAL FUNDS**
Where appropriate in the financial statements, income, expenditure and reserves are classified as restricted, designated or general funds. The income and expenditure are shown after restrictions have been applied.
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
NOTE £’000 £’000
FIXED ASSETS
Tangible assets 12 3,907 3,912
Intangible assets 12 - -
TOTAL FIXED ASSETS 3,907 3,912
CURRENT ASSETS
Debtors 13 2,610 672
Cash at bank and in hand 4,393 4,793
Current asset investment 3,090 4,085
TOTAL CURRENT ASSETS 10,093 9,550
LIABILITIES
Creditors: amounts falling due within one year 15 (4,627) (5,125)
TOTAL LIABILITIES (4,627) (5,125)
NET CURRENT ASSETS 5,466 4,425
TOTAL NET ASSETS 9,373 8,337
THE FUNDS OF THE CHARITY
UNRESTRICTED FUNDS
General funds 7,835 7,656
Designated funds: Most Needed Fund - 32
TOTAL UNRESTRICTED FUNDS 7,835 7,688
Restricted income funds 17 1,538 649
TOTAL FUNDS CARRIED FORWARD 9,373 8,337
**----- End of picture text -----**
Approved by the Board on 10 November 2023 and signed on its behalf by Shaun Sinniah
Company Registration Number 03719092
For example, a donation that is 80% restricted will be classified as 80% restricted income and 20% general income. If Gift Aid were claimed on this donation, 80% would be classified as designated income, and the remaining 20% would be general income.
The definitions of restricted, designated and general funds can be found in the accounting policies note 1J, 1K and 1L.
Back to contents **⬆**
compassionuk.org
24
**Annual Report 2022/2023**
Compassion UK
## **CASHFLOW STATEMENT**
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
£'000 £'000
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the reporting period
1,036 634
(as reported in the Statement of Financial Activities)
ADJUSTMENTS FOR:
Depreciation and amortisation charges 155 169
(Profit)/Loss on the sale of fixed assets (7) -
Dividends, interest and rents from investments (259) (24)
Decrease/(Increase) in debtors (1,938) 968
(Decrease)/Increase in creditors (498) (550)
Creditors for fixed asset acquisitions unpaid at year-end - 37
NET CASH PROVIDED BY OPERATING ACTIVITIES (1,511) 1,234
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interest and rents from investments 259 24
Amount invested in short-term investments 995 (85)
Purchase of fixed assets (180) (234)
Creditors for fixed asset acquisitions unpaid at year-end - (37)
Proceeds from the sale of fixed assets 37 -
Net cash provided by/(used in) investment activities 1,111 (332)
CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD (400) 902
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
£'000 £'000
Cash in hand at beginning of period 3,793 2,891
Notice deposits (less than three months) at beginning of period 1,000 1,000
TOTAL CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 4,793 3,891
Cash in hand at end of period 546 3,793
Notice deposits (less than three months) at end of period 3,847 1,000
TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD 4,393 4,793
CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD (400) 902
**----- End of picture text -----**
ALIS, PERU
Back to contents **⬆**
compassionuk.org
**25**
Annual Report 2022/2023
Compassion UK
## **NOTES**
## **B) INCOME**
**B) INCOME** Grants that are subject to conditions This is included in the Statement of such as matched funding are only Financial Activities (SoFA) when: recognised once those conditions have been fulfilled.
- The charity becomes entitled to the resources;
- the resources; Gifts in kind are accounted for at a
- ■ The trustees believe it is probable reasonable estimate of their value to the they will receive the income; and charity or the amount actually realised.
- The monetary value can be measured with sufficient reliability.
Donated services and facilities are only included in income (with an equivalent amount in expenditure) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.
100% of child gifts and appeal **1 ACCOUNTING** donations are restricted. 80% of all **POLICIES** other donations received are restricted. Restricted donations are granted to Compassion UK Christian Child Compassion International. Development is a private charitable company limited by guarantee Income that relates to a future period incorporated in England and Wales. is carried forward as deferred income. The address of its registered office An example of this would be where is set out on the final page, and a a sponsor pays child support a year description of its principal activities in advance. is set out on page 5.
The value of any voluntary help received is not included in the accounts but is described in the Trustees’ Annual Report.
Income from Gift Aid reclaims is Investment income is included in the recognised in the SoFA when the accounts when receivable. donation is made. Where backdated Gift Aid claims have been made **C) CRITICAL ACCOUNTING** that relate to donations in a prior **ESTIMATES AND AREAS OF** period, this has been recognised in **JUDGEMENT** the current period. Estimates and judgements are regularly evaluated and are based on historical For legacies, entitlement is taken as the experience and other factors, including earlier of the date on which either: the expectations of future events that charity is aware that probate has been are believed to be reasonable under granted, the estate has been finalised the circumstances.
## **A) BASIS OF PREPARATION**
The financial statements have been prepared under the historic cost convention. These accounts have been prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”), Accounting and Reporting by Charities: Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made or when a distribution is received from the estate.
The main area of judgement is in relation to the allocation of central overhead costs between the various expenditure categories on the Statement of Financial Activities, the basis of which is set out in note 1(F).
The charity meets the definition of a public benefit entity under FRS 102. Receipt of a legacy, in whole or in The reporting currency is GB Pounds part, is only considered probable when Sterling, and the accounts are rounded the amount can be measured reliably to the nearest thousand (£’000). The and the charity has been notified of principal accounting policies adopted the executor’s intention to make a in the preparation of the financial distribution. Where legacies have been statements are set out below. notified to the charity, or the charity is aware of the granting of probate, and The charity has adequate reserves the criteria for income recognition have and substantial recurring income. not been met, then the legacy is treated The trustees therefore consider that as a contingent asset and disclosed the charity will be able to meet its if material. commitments for at least 12 months from the date of approval of these Income from government grants is financial statements and for the recognised on the performance basis foreseeable future. The accounts are when there is evidence of entitlement accordingly prepared on a going to the grant, receipt is probable and concern basis. its amount can be measured reliably.
Compassion makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. In the opinion of the trustees, the main estimate and assumption that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are in relation to the useful life of fixed assets, which are written off in accordance with the depreciation policies set out in note 1(E).
## **D) FIXED ASSETS**
child sponsorship income; costs of supporting and providing information and education to child sponsors, including a share of the costs of the charity’s magazine; and other costs incurred directly in meeting the aims of the charity. Child grants include all monies paid to Compassion International and other organisations for the direct benefit of children.
furtherance of the general objectives of the charity.
Fixed assets are capitalised if they can be used for more than one year and cost at least £5,000. They are valued at cost on receipt.
## **K) DESIGNATED FUNDS**
Designated funds are unrestricted funds that have been set aside at the discretion of the trustees for a specific, but not legally binding, purpose.
## **E) DEPRECIATION AND AMORTISATION**
Depreciation and amortisation are calculated to write off the cost of the assets brought into use less their residual value over their expected useful lives using the following rates:
## **L) RESTRICTED FUNDS**
Restricted funds are income received for a particular purpose as specified by the donor or supplier, less expenditure applied for such a purpose.
Child ministry and advocacy costs include all costs incurred in the ministry of children and raising awareness on their behalf.
- Computer equipment: 25% straight line
## **M) PENSION COSTS**
> ■ Motor vehicles: 25% straight line to This expenditure includes an estimated residual value appropriate allocation of support costs
> ■ Software: 25% straight line of central functions that have been
> ■ Furniture, fixtures and plants: allocated to activity cost categories 10% straight line on a basis consistent with the use of
> ■ Building structure: 2% straight line resources, for example, by estimated staff time or floor space.
Compassion UK operates a money purchase pension scheme whereby it pays eligible staff defined contributions into the charity pension scheme. The contributions are charged to the Statement of Financial Activities as they become payable, and the charity’s liability is limited to the amount of the contributions.
Our assessment of our office valued the
## **G) FOREIGN CURRENCIES**
- land at £1.3m. The rest of the structure, including the car park, is constructed from durable materials and has been estimated to have a useful life of 50 years.
Assets, liabilities, revenues and expenditure in foreign currencies are translated into Sterling at the rates of exchange ruling on the date on which transactions occur, except for monetary assets and liabilities, which are translated at the rate ruling at the balance sheet date where material. Transactions to be settled at a contracted rate and trading transactions covered by a related or matching forward contract are translated at those contracted rates. Differences arising on the translation of such items are dealt with in the SoFA.
## **N) LIABILITIES**
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
## **F) EXPENDITURE**
All expenditure is accounted for gross and when incurred. Expenditure is included in the SoFA on an accruals basis and, because the charity is unable to recover any UK Value Added Tax paid, inclusive of that irrecoverable VAT. Expenditure includes the direct costs of the activities and depreciation on related assets.
## **O) FINANCIAL INSTRUMENTS**
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
## **H) GRANTS**
## **P) CURRENT ASSET INVESTMENTS**
Where such costs relate to more than one functional cost category, they have been split on an estimated time, floor space or other basis, as appropriate. A functional breakdown of expenditure is shown in notes 7 to 9.
Grants payable are recognised as **INVESTMENTS** expenditure when the commitment Current asset investments are is entered into. Where such a grant investments that the charity holds with is to be paid over instalments, the a maturity date of less than one year. outstanding balance is disclosed as Investment properties are measured at a liability. fair value.
Expenditure on raising funds are the direct costs and an appropriate allocation of support costs that were used to attract donations.
## **I) OPERATING LEASES**
Rentals payable under operating leases are charged to the SoFA on a straightline basis over the period of the lease.
Expenditure on charitable activities include: monies remitted to Compassion International and other organisations in respect of
## **J) GENERAL FUNDS**
General funds are funds available for use at the discretion of the trustees in
Back to contents **⬆**
compassionuk.org
26
Annual Report 2022/2023
Compassion UK
## **2 LEGAL STATUS OF 3 COMPASSION THE CHARITY CHARITIES**
## **COMPASSION INTERNATIONAL**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.
The charity has a commitment to donors that 80% of monies received from child sponsorship and other child grants are transferred to Compassion International in the USA, who administer the distribution of funds for the benefit of each child on behalf of the charity (and other Compassion partners).
The amount of these funds granted during the year was £37,464,000 [FY22 £38,440,000], of which £2,674,000 [FY22 £2,864,000] was owed at the year end and a further £433,000 [FY22 £719,000] was accrued. The outstanding amount represents the June 2023 grant and was transferred to Compassion International after the year end.
The UK charity is actively involved in the overall administration of the support given to children and in the decisions made by the international partnership of Compassion charities.
Compassion International paid expenses of £8,000 [FY22 £3,000] to Compassion UK. Compassion UK incurred expenses of £13,000 [FY22 £74,000] to Compassion International, of which £0 [FY22 £45,000] was accrued at year-end.
## **COMPASSION IRELAND**
During the year, Compassion Ireland’s administration requirements have been undertaken for a fixed fee of 12% of donations received, excluding gifts and appeals. Some direct costs previously funded by Compassion UK are now paid directly by Compassion Ireland, and the administration fee is reduced proportionately.
During the year, £32,000 [FY22 £65,000] was received in income from servicing Compassion Ireland, and costs were £72,000 [FY22 £89,000]. The intercompany balance owing by Compassion Ireland is £19,000 [FY22 £82,000].
## **5a DONATIONS AND LEGACIES**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
RESTRICTED DESIGNATED GENERAL TOTAL FUNDS RESTRICTED DESIGNATED GENERAL TOTAL FUNDS
FUNDS FUNDS MOST FUNDS 2023 FUNDS FUNDS MOST FUNDS 2022
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
MINIMUM 80% RESTRICTED
Child Sponsorship 27,173 - 6,795 33,968 27,489 - 6,872 34,361
Unsponsored children 97 - 24 121 99 - 25 124
Co-Design Community 6 - - 6 - - - -
Interventions 1,849 - 461 2,310 657 - 180 837
Sponsorship Plus 542 - 130 672 521 - 125 646
Child Survival Programme 314 - 81 395 344 - 86 430
HIV/Aids fund 59 - 15 74 65 - 16 81
100% RESTRICTED
Gifts for children and families 2,419 - - 2,419 2,362 - - 2,362
Gifts for projects 223 - - 223 236 - - 236
Christmas appeal 873 - - 873 992 - - 992
Disaster relief 728 - - 728 624 - - 624
MINIMUM 80% DESIGNATED
Gift Aid - 6,414 1,603 8,017 - 6,443 1,611 8,054
General unrestricted income - 658 165 823 - 1,138 285 1,423
OTHER DONATIONS
Other donations - - 2 2 - - - -
TOTAL 34,283 7,072 9,276 50,631 33,389 7,581 9,200 50,170
**----- End of picture text -----**
Included in the above is legacy income of £1,249,000 [FY22 £640,000]
## **4 NET MOVEMENT IN RESOURCES FOR THE YEAR**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
£’000 £’000
Depreciation and amortisation of fixed assets 155 169
(Profit)/Loss on disposal of fixed assets (7) -
Annual audit fees 31 23
Other fees paid to auditor for advice/consultancy, etc. 2 4
Foreign exchange (gains)/losses 17 (5)
**----- End of picture text -----**
## **5b GRANTS RECEIVED**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
RESTRICTED DESIGNATED GENERAL TOTAL FUNDS RESTRICTED DESIGNATED GENERAL TOTAL FUNDS
FUNDS FUNDS MOST FUNDS 2021 FUNDS FUNDS MOST FUNDS 2020
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
FCDO grant 169 - - 169 280 - - 280
TOTAL 169 - - 169 280 - - 280
**----- End of picture text -----**
Back to contents **⬆**
compassionuk.org
27
Annual Report 2022/2023
Compassion UK
## **6 CHARITABLE ACTIVITIES**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
£’000 £’000
Compassion Ireland service income 32 65
Field experience income/(refunds) 1 -
Other 37 6
TOTAL 70 71
**----- End of picture text -----**
## **7 EXPENDITURE ON RAISING FUNDS**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
NOTE £’000 £’000
Direct costs excluding staff 2,416 1,971
Direct staff costs 2,108 1,799
Apportioned support costs 9 1,378 1,196
TOTAL 5,902 4,966
**----- End of picture text -----**
## **8 EXPENDITURE ON CHARITABLE ACTIVITIES**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
NOTE RESTRICTED DESIGNATED GENERAL TOTAL RESTRICTED DESIGNATED GENERAL TOTAL
FUNDS FUNDS MOST FUNDS FUNDS FUNDS MOST FUNDS
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Grant making 8a 33,563 3,966 691 38,220 34,016 4,552 647 39,215
Child ministry costs 8b - 3,138 2,710 5,848 - 3,090 2,500 5,590
Compassion Ireland - - 72 72 - - 89 89
Field experience 8c - - 58 58 - - 51 51
TOTAL CHARITABLE EXPENDITURE 33,563 7,104 3,531 44,198 34,016 7,642 3,287 44,945
**----- End of picture text -----**
## **8a GRANT MAKING**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
NOTE RESTRICTED DESIGNATED GENERAL TOTAL RESTRICTED DESIGNATED GENERAL TOTAL
FUNDS FUNDS MOST FUNDS FUNDS FUNDS MOST FUNDS
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Child Sponsorship 27,173 - - 27,173 27,489 - - 27,489
Unsponsored children 97 - - 97 99 42 - 141
Co-Design Community 6 1,567 - 1,573 - 1,282 - 1,282
Gifts for children and families 2,419 21 - 2,440 2,362 11 - 2,373
Gifts for projects 225 73 - 298 236 - - 236
Christmas appeal 869 - - 869 992 - - 992
Interventions 434 439 - 873 803 2,817 - 3,620
Disaster relief 1,091 1,841 - 2,932 824 370 - 1,194
Child Survival Interventions 1,021 - - 1,021 867 - - 867
FCDO Child Survival Grant - Togo 110 19 - 129 152 30 - 182
HIV/Aids funds 59 - - 59 65 - - 65
Other funds - - - - (1) - - (1)
TOTAL CHILD GRANTS TO
COMPASSION INTERNATIONAL (i) 33,504 3,960 - 37,464 33,888 4,552 - 38,440
Compassion Norden and
- - 14 14 - - 23 23
Germany grants
Other grants (ii) - 6 - 6 - - - -
TOTAL GRANTS 33,504 3,966 14 37,484 33,888 4,552 23 38,463
Grant making support costs 9 - - 677 677 - - 624 624
FCDO Child Survival Grant - Togo 9 59 - - 59 128 - - 128
TOTAL COSTS OF GRANT MAKING 33,563 3,966 691 38,220 34,016 4,552 647 39,215
**----- End of picture text -----**
- (i) Direct costs for child support and other child grants are grants for the benefit of children. Grants paid to Compassion International cover the grants to the projects and costs to run the field country and regional offices, as well as programme costs at Compassion International.
(ii) Other grants include grants to organisations that support Compassion’s mission.
## **8b CHILD MINISTRY COSTS**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
NOTE RESTRICTED DESIGNATED GENERAL TOTAL RESTRICTED DESIGNATED GENERAL TOTAL
FUNDS FUNDS MOST FUNDS FUNDS FUNDS MOST FUNDS
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Child ministry costs (iii) - 3,138 - 3,138 - 3,090 - 3,090
Child ministry support costs 9 - - 2,710 2,710 - - 2,500 2,500
TOTAL CHILD MINISTRY COSTS - 3,138 2,710 5,848 - 3,090 2,500 5,590
**----- End of picture text -----**
- (iii) Direct costs for child ministry are costs of supporting and providing information to child sponsors. This includes child letter postage and the proportion of facilities, IT and staff time allocated to supporting the relationship between the sponsor and the child.
Back to contents **⬆**
compassionuk.org
28
Annual Report 2022/2023
Compassion UK
**8c FIELD EXPERIENCE COSTS**
## **10 STAFF COSTS**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
NOTE RESTRICTED DESIGNATED GENERAL TOTAL RESTRICTED DESIGNATED GENERAL TOTAL
FUNDS FUNDS MOST FUNDS FUNDS FUNDS MOST FUNDS
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Field experience direct costs - - - - - - - -
Field experience support costs 9 - - 58 58 - - 51 51
TOTAL FIELD EXPERIENCE COSTS - - 58 58 - - 51 51
**----- End of picture text -----**
Sponsors normally have the opportunity to visit projects and their sponsored children on Compassion Insight Trips. No Insight Trips have taken place since COVID-19 became a worldwide pandemic.
## **9 ANALYSIS OF SUPPORT COSTS**
FOR THE YEAR ENDED 30 JUNE 2023
**----- Start of picture text -----**
RAISING FUNDS GRANT MAKING CHILD MINISTRY FIELD ADMINISTERING TOTAL SUPPORT
EXPERIENCE FCDO GRANT COSTS
£’000 £’000 £’000 £’000 £’000 £’000
Facilities management 98 25 101 12 4 240
Information technology 324 164 662 12 14 1,176
Operations, including finance, governance
185 80 321 7 7 600
and HR
Support salaries 758 390 1,556 25 33 2,762
Audit and accounting fees - 7 24 - - 31
Trustee and Board meeting costs 13 11 46 2 1 73
1,378 677 2,710 58 59 4,882
**----- End of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2022
**----- Start of picture text -----**
RAISING FUNDS GRANT MAKING CHILD MINISTRY FIELD ADMINISTERING TOTAL
EXPERIENCE FCDO GRANT SUPPORT COSTS
£’000 £’000 £’000 £’000 £’000 £’000
Facilities management 91 23 94 12 6 226
Information technology 299 169 675 14 36 1,193
Operations, including finance, governance
101 64 258 (3) 10 430
and HR
Support salaries 693 350 1,398 26 72 2,539
Audit and accounting fees - 4 18 - 1 23
Trustee and Board meeting costs 12 14 57 2 2 87
1,196 624 2,500 51 127 4,498
**----- End of picture text -----**
**----- Start of picture text -----**
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
£’000 £’000
Wages and salaries 5,151 4,436
Pensions 619 558
Social security costs 550 468
Health insurance and other HR costs 101 112
6,421 5,574
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
FTE FTE
Management 5 5
Support and administration 30 30
Supporter relations 41 46
Fundraising and communications 63 56
Grant management 1 1
140 138
Percentage increase in staffing levels 1% 6%
FOR THE YEAR ENDED 30 JUNE 2023 FOR THE YEAR ENDED 30 JUNE 2022
AVERAGE NUMBER OF EMPLOYEES (HEADCOUNT) 164 161
THE NUMBER OF EMPLOYEES WHOSE REMUNERATION FOR THE PERIOD FELL WITHIN THE FOLLOWING BANDS: FIGURES REPRESENT SALARY BEFORE ANY
SALARY SACRIFICE DEDUCTIONS
£60k up to £70K 2 3
£70k up to £80K 4 2
£80k up to £90K 2 -
£90K up to £100K - -
£100K up to £110K 1 1
**----- End of picture text -----**
- Pension contributions of £66,000 [FY22: £47,000] were made during the year for the above higher-paid staff. This excludes employee contributions made via salary sacrifice.
- The company operates a defined contribution pension scheme on behalf of its employees. The pension charge for the year was £521,000 [FY22: £481,000], of which £52,000 [FY22: £52,000] was payable at the year end.
-
- The five key management personnel are listed on page 18. The total employee remuneration, including National Insurance and benefits, of key management personnel of the charity was £498,000 [FY22: £477,000].
- During the year, £15,000 [FY22: £0] of redundancy costs were incurred.
-
All support costs are paid from unrestricted funds. Total support costs are allocated on the basis of staff time attributable to that cost centre.
Back to contents **⬆**
compassionuk.org
29
Annual Report 2022/2023
Compassion UK
## **11 TRUSTEES' REMUNERATION**
No trustees’ renumeration was voted during the year.
Trustee expenses of £300 [FY22 £800] were paid in the year.
The total premiums paid for trustee indemnity insurance in the year was £1,000 [FY22 £1,000].
## **14 CURRENT ASSET INVESTMENTS**
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
£'000 £'000
Investment Property 90 85
Cash held on 95 day deposit 3,000 4,000
3,090 4,085
**----- End of picture text -----**
## **12 FIXED ASSETS**
**----- Start of picture text -----**
TANGIBLE ASSETS INTANGIBLE ASSETS
FURNITURE, COMPUTER MOTOR VEHICLES FREEHOLD LAND TOTAL COMPUTER SOFTWARE
FIXTURES AND HARDWARE AND BUILDINGS
PLANTS
£’000 £’000 £’000 £’000 £’000 £’000
COST
Balance at 1 July 2022 392 297 269 3,656 4,614 1,243
Additions for the year 6 129 45 - 180 -
Disposals for the year - (49) (41) - (90) -
BALANCE AT 30 JUNE 2023 398 377 273 3,656 4,704 1,243
DEPRECIATION/AMORTISATION
Balance at 1 July 2022 178 293 19 212 702 1,243
Disposals for the year - (50) (10) - (60) -
Depreciation for the year 41 8 54 52 155 -
BALANCE AT 30 JUNE 2023 219 251 63 264 797 1,243
NET BOOK VALUE
At 1 July 2022 214 4 250 3,444 3,912 -
At 30 June 2023 179 126 210 3,392 3,907 -
**----- End of picture text -----**
## **13 DEBTORS**
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
£'000 £'000
Compassion Ireland 19 82
Gift Aid reclaimable 915 115
Accrued legacy income 1,159 -
Other debtors and grants receivable 88 128
Prepayments 429 347
2,610 672
**----- End of picture text -----**
## **15 CREDITORS**
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
NOTE £'000 £'000
Compassion International 2,674 2,864
Deferred income 16 344 286
Trade creditors 634 602
Accruals 793 1,194
Other taxation and social security 129 127
Pension contributions outstanding 53 52
4,627 5,125
**----- End of picture text -----**
## **16 DEFERRED INCOME**
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
£'000 £'000
DEFERRED INCOME BROUGHT FORWARD 286 242
Deferred income released in the year (193) (193)
Income deferred in the year 251 237
DEFERRED INCOME CARRIED FORWARD 344 286
**----- End of picture text -----**
Back to contents **⬆**
compassionuk.org
30
Annual Report 2022/2023
Compassion UK
**17 RESTRICTED FUNDS**
## **18 RELATED PARTY TRANSACTIONS**
**----- Start of picture text -----**
BALANCE AT 1 JULY 22 RESTRICTED INCOME TRANSFER RESTRICTED EXPENDITURE BALANCE AT 30 JUNE 23
£'000 £'000 £'000 £'000 £'000
Child Sponsorship - 27,173 - (27,173) -
Unsponsored children - 97 - (97) -
Co-Design Community - 6 - (6) -
Gifts for children and families - 2,419 - (2,419) -
Gifts for projects 2 223 - (225) -
Christmas appeal - 873 - (869) 4
Interventions 96 1,849 - (434) 1,511
Hillsong Water from Partners 23 - - - 23
Disaster relief - 728 363 (1,091) -
Child Survival Programme 528 314 179 (1,021) -
FCDO Child Survival Grant - Togo - 169 - (169) -
HIV/Aids funds - 59 - (59) -
Sponsorship Plus - 542 (542) - -
TOTAL 649 34,452 - (33,563) 1,538
**----- End of picture text -----**
**----- Start of picture text -----**
BALANCE AT 1 JULY 21 RESTRICTED INCOME TRANSFER RESTRICTED EXPENDITURE BALANCE AT 30 JUNE 22
£'000 £'000 £'000 £'000 £'000
Child Sponsorship - 27,489 - (27,489) -
Unsponsored children - 99 - (99) -
Co-Design Community - - - - -
Gifts for children and families - 2,362 - (2,362) -
Gifts for projects 2 236 - (236) 2
Christmas appeal - 992 - (992) -
Interventions 102 634 163 (803) 96
Hillsong Water from Partners - 23 - - 23
Disaster relief 200 624 - (824) -
Child Survival Programme 693 344 358 (867) 528
FDCO Child Survival Grant - Togo - 280 - (280) -
HIV/Aids fund - 65 - (65) -
Sponsorship Plus (1) 521 (521) 1 -
TOTAL 996 33,669 - (34,016) 649
**----- End of picture text -----**
During the year, there were no related party transactions.
## **19 LEASING COMMITMENTS**
At 30 June 2023, the total of the charity’s future minimum lease payments under non-cancellable operating leases was:
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
CARS OTHER TOTAL CARS OTHER TOTAL
£'000 £'000 £'000 £'000 £'000 £'000
Less than one year 22 7 29 27 13 40
Two to five years 8 17 25 26 25 51
Greater than five years - - - - 2 2
30 24 54 53 40 93
**----- End of picture text -----**
## **20 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
This analysis shows the fund balances at year-end split into tangible fixed assets and net current assets. The analysis also shows the restricted and unrestricted funds in these categories.
**----- Start of picture text -----**
AS AT 30 JUNE 2023 AS AT 30 JUNE 2022
FIXED ASSETS NET CURRENT TOTAL 2021 FIXED ASSETS NET CURRENT TOTAL 2020
ASSETS ASSETS
£'000 £'000 £'000 £'000 £'000 £'000
Restricted funds - 1,538 1,538 - 649 649
Designated funds most needed - - - - 32 32
General funds 3,907 3,928 7,835 3,913 3,743 7,656
3,907 5,466 9,373 3,913 4,424 8,337
**----- End of picture text -----**
## **PURPOSE OF RESTRICTED FUNDS**
**CHILD SUPPORT** To relieve poverty amongst sponsored children.
## **INTERVENTIONS**
To meet vital needs outside of what sponsorship covers.
## **UNSPONSORED CHILDREN**
## **DISASTER RELIEF**
To support children registered in the programme but awaiting sponsorship.
Critical relief for sponsored children and their projects, including reconstruction.
**GIFTS FOR CHILDREN AND FAMILIES**
To bless the child or their family with **CHILD SURVIVAL INTERVENTIONS** additional gifts. Pre- and post-natal care for mothers
Pre- and post-natal care for mothers and babies.
## **GIFTS FOR PROJECTS**
## **HIV AND AIDS FUND**
To bless a church project with additional resources.
To support sponsored children and their families affected by HIV and AIDS.
**CHRISTMAS APPEAL** To provide a present and a celebration for each child.
## **SPONSORSHIP PLUS**
Additional support for beneficiaries. To address critical needs of children around the world, including Child Survival Interventions, medical emergencies, disaster relief and preventative health. During the year, £542,000 was transferred to other appropriate restricted funds. £363,000 was transferred to disaster relief and £179,000 to child survival.
**FCDO CHILD SURVIVAL GRANT - TOGO**
Pre- and post-natal care for mothers and babies and UK costs of administering the grant.
**CO-DESIGN COMMUNITY** To support whole projects in relieving poverty amongst children registered in the programme.
Back to contents **⬆**
compassionuk.org
31
**Annual Report 2022/2023**
**Compassion UK**
**----- Start of picture text -----**
ALVIN, AGED 5, TANZANIA
**----- End of picture text -----**
**32**