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← Compassion UK Christian Child Development

2024-06-30-accounts

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AND FINANCIAL STATEMENTS 2023/2024
Annual Report
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LEFT TO RIGHT: HANNA, TRIPHONIA,
PRINCE AND VINCENT, MALAWI
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Compassion UK
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Contents

03 Introductory remarks

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Annual Report 2023/2024
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2023/2024
Highlights
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115,605 J 468,592 £52.6m 88%
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Annual Report 2023/2024

Compassion UK

A MESSAGE FROM JUSTIN DOWDS

CEO COMPASSION UK & COMPASSION IRELAND

At Compassion UK our That’s why we set our long-term goal raise awareness and encourage more of serving 200,000 children in effective people to release children from poverty heart’s desire and the programmes by 2030 and we remain in Jesus’s name. focus of our work is prayerfully and steadfastly committed to that goal, playing our part in the wider Several factors, including the high to see more children strategy of Compassion International to inflation rate in many of the countries released from poverty advance life outcomes for many more we work over recent years, currency children and youth living in poverty exchange rates, food security and in Jesus’ name, working more quickly. As we look back over climate change, meant we took the with the local church to the last 12 months, and indeed the last prayerful and considered decision to 25 years, we give thanks to God for undertake a sponsorship rate increase. help children overcome his guidance and provision, we give This enables us to continue to provide the complex barriers that thanks for the partnership of the local excellent care to the children and church and the dedicated individuals young people we serve. We’re grateful poverty places in their who support our ministry, and we’re for the committed response from our way. As we look back encouraged by God’s promise that he supporters, the vast majority of whom will do ‘immeasurably more than we ask agreed to this increase and continue to at FY24 and lay out our or imagine, according to his power that sponsor through Compassion. plans for FY25, we remain is at work in us.’ We continue to work innovatively with resolutely rooted in prayer Our goal for FY24 was to continue national offices and local churches to for God to guide and to serve at least 116,142 children in provide holistic child development and poverty in effective programming while as a result there are now 8,510 children equip us in what continues creating new ways to grow. The total being supported in pilot projects. Over to be a challenging number of children supported was 537 the last two years, our innovation below our goal. At the end of the year, programme has allowed us to settle global context. we were supporting 115,605 children on four new ways for supporters to We’ve each been called to and young people who exchanged engage with the ministry, which we Compassion’s ministry because we 468,592 messages of support with aim to offer more widely during this want to put an end to extreme poverty. their sponsors. coming year. The percentage of children living in extreme poverty has effectively In FY24, we found new sponsorships A significant amount of innovation remained unchanged since 2019. That for 8,011 children which was short of within our projects is made possible equates to 333 million children existing our goal of 9,105. It has continued to be thanks to Gift Aid. Gift Aid funds on less than $2.15 a day. challenging to return to pre-pandemic were also used to provide vital aid levels of sponsorship growth. We’re for the global food crisis, particularly We need to pause and comprehend grateful for the ongoing relationships in Ethiopia. what this number represents. $2.15 with churches across the UK who a day only considers food, clothes partner with us in our mission. Over the Thank you once again for partnering and basic shelter. It doesn’t allow last 12 months we’ve held 365 services with us, and for all your ongoing for our human need - and right - for celebrating those partnerships and 144 support and prayer. It is only together, health, education, sanitation. It doesn’t launch events at new churches. We’re under God, that we can fulfil our calling allow for quality of life. 333 million also grateful for our incredible, servantto release more children from poverty children are getting by with barely hearted volunteers who gifted over in Jesus’ name. enough to exist. This injustice cannot 8,000 hours of their time at festivals, go unchallenged. services, and in the UK office to help

raise awareness and encourage more people to release children from poverty in Jesus’s name.

Thank you once again for partnering with us, and for all your ongoing support and prayer. It is only together, under God, that we can fulfil our calling to release more children from poverty in Jesus’ name.

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

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Objectives& ACTIVITIES

Me Ke THIDAPORN (RIGHT) AND HER MOTHER, KANSUDA (LEFT), THAILAND

Annual Report 2023/2024

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.

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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 8,852 GLOBAL FUNDRAISING PARTNERS FRONT-LINE CHURCHES WE WORK IN WHO ALTOGETHER SUPPORT 29 2,365,835 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.

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Annual Report 2023/2024

Compassion UK

HOW WE SERVE CHILDREN OUR 3 KEY PROGRAMMES jee _

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.”

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SEYLA AND HER SON AXEL

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Annual Report 2023/2024

Compassion UK

STEWARDING YOUR SPONSORSHIP DONATIONS _

We’re committed to integrity and transparency when using your £32 a month donation.

HERE’S HOW IT WORKS.

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

£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

We use a minimum of 80% of your child development programme. releases your individual sponsored donation to benefit your sponsored DONATIONS It empowers the child you support child from poverty, the remaining child. If you donate £32 a month, at _ to overcome poverty holistically £6.40 benefits other children and least £25.60 is granted to Compassion and sustainably. enables us to operate effectively International to bring lasting change with excellence. to the child you’re supporting. LOCAL COMPASSION UK CHURCH CHILDREN WITH COMPASSION ) ~~us~~ ) ~~a~~ e) Healthy meals Recreational activities Your donation... and additional to improve selfnutritional support confidence and social where needed. and emotional skills. Ensures we Enables Compassion Maximises your Helps us operate can operate UK to thrive now and investment in with excellence with excellence. in the future. children’s lives. on the ground. 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! +) T+) Vocational training ME | qu 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. By contributing to local project staff salaries and volunteer expenses, you give your sponsored child someone to listen to and disciple them. 7 SCARLET, AGED 6, ECUADOR Back to contents ⬆*

SCARLET, AGED 6, ECUADOR

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Annual Report 2023/2024

Compassion UK

DISRUPTION TO COMPASSION’S ACTIVITIES

_

Compassion partners with are able. This might be through home visits or virtual options. local churches because we believe they are best BURKINA FASO Since June 2022, unrest has caused placed to understand instability in Burkina Faso, limiting the needs of their our frontline church partners’ ability to gather children for regular communities. Our frontline activities. Due to increasing violence church partners have and instability, Compassion made the difficult decision to run limited established decades of programmes and suspend letter writing trust, which enables them in those portions of the country. Projects are expected to return to to cultivate supportive normal from July 2024. and empowering Designated funds have been held relationships with children at Compassion International’s and families. headquarters and remain committed to

many regions, along with severe rains and flooding in the south, which have caused associated health issues such as outbreaks of cholera, measles and malaria.

Compassion Ethiopia has 94 local church partners affected, who’ve recorded 21,472 participants and their households as being directly impacted through illness, malnutrition and loss of livestock. The National Office has implemented relief and humanitarian aid, offering support on a prioritised basis. They have also provided aid for non-registered households in the most severely affected regions.

Designated funds have been held severely affected regions. relationships with children at Compassion International’s and families. headquarters and remain committed to KENYA the frontline churches and children in Kenya has experienced prolonged This past year has seen the local this region. They’ll be distributed at the seasons of heavy rainfall caused by church continue serving faithfully in earliest opportunity. the El Niño climatic phenomenon. the face of considerable challenge. Countrywide, an estimated 120 people Worsening economic pressures, Since the start of the unrest, have lost their lives and almost 90,000 conflict, natural disasters and climate Compassion has facilitated emergency people have been displaced. Thousands change have forced our church support and training to social workers, of homes have been washed away or partners into responding to immediate volunteers and pastors on supporting marooned by floods, while farmlands needs, while strategically cultivating children and youth with emotional have been submerged and livestock longer-term solutions. trauma. We have also equipped drowned. Flash floods and landslides frontline church partners in child have destroyed roads and bridges in protection and access to relief services the northern, southeastern, and coastal CONFLICT provided by the government and counties, disconnecting them from the other organisations. rest of the country.

HAITI

Since 2021, Haiti has been impacted by Over 1,000 Compassion Kenya a series of compounding crises. Political INSTABILITY participants and their households have turmoil, combined with economic been affected from 42 frontline church instability and desperate circumstances Climate change has caused immense partners. One caregiver is reported has led to gang violence throughout destruction of crops around the world to have died because of the floods. the country. The capital, Port-au-Prince, from both drought and flooding. A further 50 caregivers and siblings is said to be in a ‘cataclysmic situation’ This, along with sharp rises in the of registered participants have been with about 80% controlled by gangs. cost of basic commodities and fuel seriously injured. Over 800 families are Over 50,000 people have fled and over have contributed to an extreme lack reported to need basic supplies, over 1,500 people have been killed. In areas of food security for many countries 240 have lost livelihoods and over 170 with high levels of gang violence, some and communities. homes have been destroyed. frontline church partners have paused gathering at their projects to prioritise ETHIOPIA Compassion Kenya has been working safety. In those instances, our church Prolonged, consecutive droughts closely with our church partners in partners deliver programming as they have been an extreme challenge in responding to these needs.

22 CAREGIVERS HAVE CREATED A COOPERATIVE, POOLING THEIR RESOURCES WITH THE CENTRE’S HELP TO BUY LAND FOR A TEA PLANTATION. THEIR EFFORTS ARE ALREADY YIELDING A HARVEST. – GRACE, RWANDA

“RECEIVING FOOD BASKETS FROM THE CENTRE IS REALLY HELPFUL. IT MAKES MY CHILDREN SO HAPPY! I WANT TO THANK THE CENTRE AND DONORS FOR THE HELP THEY GIVE US.” — ELIS, COLOMBIA

UGANDA

Due to the food crisis, increased domestic violence had been reported along with cases of child abandonment and negligence. The director at one project says, “After the food distribution, the health condition of participants has significantly improved. The rate of disease among family members has reduced and marital relationships have also improved.”

People did manage to plant some shortterm crops. However, El Niño rains are predicted again. Kenya’s National Office has implemented an action plan to help church partners with resilience and disaster management strategies.

Seventy-six church partners, supporting a total of 11,123 babies, children, and youth in the north-eastern and eastern regions have experienced their worst production losses in recent history. This is due to eroded capacity following two consecutive below-average production seasons and above-average prices for essential commodities.

RWANDA

After heavy rains, the Rwandan government has formed a taskforce for disaster mitigation and response. Families whose homes were destroyed or were in disaster-prone areas were evacuated and given temporary shelter while permanent solutions were sought. Compassion-supported families who were among those affected were given food, basic household items, and rent for temporary shelter where applicable.

Compassion Rwanda visited church partners to determine the number of homes in need of rebuilding or repair. They needed to improve housing for 378 families of participants from 45 frontline church partners. This intervention has helped over 2,316 people.

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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 amazing volunteers gifted a total of 8,038 volunteer hours during the financial year.

Support volunteers have given 4,299 HOURS either at Compassion House or remotely.

Volunteer speakers have spoken at 365 churches. With a total of 1,570 hours given and 385 children sponsored

Event volunteers have served at a total of 153 events,where 186 volunteers got involved, donating 2,268 HOURS

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

LISBETH, PERU

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Compassion UK - -' <2P= : REPORT Strategic AS A COMPASSION GRADUATE, JUSTINE NOW WORKS AS AN ADVOCATE FOR CHILDREN, HELPING THEM TO CONNECT WITH CHRISTIAN EDUCATION. SHE AND HER FELLOW COMPASSION GRADUATES WORK VERY HARD FOR THE NEXT GENERATION AND EVEN SPONSOR SOME CHILDREN.

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Annual Report 2023/2024

Compassion UK

1 JULY 2023 – 30 JUNE 2030

STRATEGIC GOALS

Accelerate the rate of ministry growth to enable the support of more

We have a highly ambitious long term goal to be serving 200,000 children by FY30. This goal forces us to innovate and change and to seek God’s guidance.

Despite challenges our long-term desire continues to be to serve more children more quickly and our strategy reflects this.

than 200,000 children in

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FY30
200,000
GOAL
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evidence-based holistic

child development

programming by 2030.

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FY23
FY24
116,142
115,605
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CONTINUE TO SERVE AT LEAST 116,142 CHILDREN IN POVERTY IN EFFECTIVE PROGRAMMING WHILE CREATING NEW WAYS TO GROW:

IN PURSUIT OF OUR FY30 GOAL, WE AIMED TO ACHIEVE THE FOLLOWING IN FY24…

Progress was made in finding several new ways to support children in poverty which were created in the year and will become available to supporters during FY25. Children enrolled in these programmes have mostly offset the fall in the number of sponsored children.

During FY24, the total number of children supported fell by 537 children.

The biggest factor in this was worse than expected sponsorship growth coupled with worse than expected sponsorship cancellations, which was partly a byproduct of a successful sponsorship rate increase. Overall the number of sponsored children fell by 3,197

FIND NEW SPONSORSHIPS FOR CHILDREN

During FY24, we wanted to increase the number of children we found sponsorships for by 18.2%. In the latter portion of FY23, there was evidence that this was a realistic goal. Instead, we achieved a 4% year on year increase. In the first half of the year we fell significantly short on our goal to raise sponsorships from local churches, though this improved in the latter part of the year. We achieved our goal of raising sponsorships at large Christian events. It has also been more difficult to raise sponsorships through digital advertising than hoped.

WE AIMED FOR 9,105 CHILDREN TO FIND A SPONSOR. WE ACHIEVED 8,011

OPERATING WITH EXCELLENCE FOR THE FUTURE

We aimed to invest in team-level innovation to improve the way that we operate and to continuously improve. We have made strides in this direction, and implemented several projects that contribute towards this but have not yet fully embedded this. We also invested in a review of our supporterfocused IT platforms.

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FOR AT LEAST 94.8% OF INCREASE THE SPONSORSHIP SPONSORS TO CONTINUE RATE TO £32 TO MAKE THEIR SPONSORSHIPS SURE OUR PROGRAMMES REMAIN EFFECTIVE AND We want sponsors to continue ADEQUATELY FUNDED

We want sponsors to continue ADEQUATELY FUNDED supporting children until they complete the sponsorship programme. The To continue to effectively meet the economic environment and our needs of children in poverty, it was increased sponsorship rate prompted a essential that we ensure that children higher cancel rate than hoped. Higher in our sponsorship programmes were than expected cancellation rates were adequately supported financially. In not unique to Compassion UK as we FY24, most of our supporters allowed saw increased rates of cancellations us to increase their monthly financial globally among our partners in contribution from £28 per month, to response to a global cost of living £32 per month. crisis. We also attended many more events during the year, some of which had much higher than typical early cancellation rates.

WE AIMED FOR 94.8%

OF SPONSORS TO CONTINUE THEIR SPONSORSHIPS AND ACHIEVED 92.4%

CREATE NEW WAYS FOR SUPPORTERS TO SUPPORT CHILDREN IN POVERTY

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.

EMPOWER OUR PEOPLE TO THRIVE

To empower our people to thrive we have supported staff in owning their development and begun creating talent-development pathways.

We aimed to create and test several new ways for supporters to be able to participate in Compassion’s mission during FY24. Four new ways to support children in poverty will be available to supporters by 2025.

We’ve also reduced the time positions remain vacant.

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Annual Report 2023/2024

Compassion UK

OVERALL GOAL IN FY25:

CONTINUE TO SERVE AT LEAST 115,605 CHILDREN IN POVERTY WHILE CREATING NEW WAYS TO GROW

FIND NEW SPONSORSHIPS FOR

7,942 CHILDREN

Our existing supporters remained very faithful throughout the UK cost-of living crisis. During FY25, we want to continue to find more sponsors for children in extreme poverty.

FOR AT LEAST 94.3% OF SPONSORS TO CONTINUE THEIR SPONSORSHIPS

We want sponsors to continue supporting children until they complete the sponsorship programme. This figure reflects a returning to normal level of supporter cancellations despite the still challenging economic environment. For those sponsors that can’t or don’t want to continue to sponsor children, we aim find other ways that these supporters can participate in our mission.

ALLOW SUPPORTERS TO SUPPORT CHILDREN IN POVERTY IN NEW WAYS

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 have created four new ways to engage with Compassion’s mission in FY25 during which we will improve upon and evaluate these. We aim to raise £680,000 through these new opportunities to give. Ultimately in the long term, we are aiming to create 3 new products which can each support 20,000 children.

EMPOWER OUR PEOPLE TO THRIVE

We aim to skill-map each role at Compassion. This will help identify and address our skills gap, enabling team members to achieve their goals and positioning Compassion for future needs.

OPERATING WITH EXCELLENCE FOR THE FUTURE

To ensure that we are an efficient and effectively run organisation we are changing the website technology we use. This will enable us to build and then reuse components, enabling us to support multiple giving opportunities. We are also continuing to review all our supporter-focused IT platforms and hope to begin implementing findings in the latter part of FY25.

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SOPHIA, BRAZIL Se ae be“eee 12
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Compassion UK
Key
Global fundraising countries
Where we work
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COMPASSION UK’S IMPACT THIS FINANCIAL YEAR _

CHILDREN SUPPORTED:

115,605

IN 29 COUNTRIES WHERE WE WORK

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Annual Report 2023/2024
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Bangladesh 2,769 Mexico 1,701 Bolivia 3,168 Nicaragua 1,857 Brazil 3,087 Peru 2,788 Burkina Faso 4,784 Philippines 3,060 Columbia 2,761 Rwanda 10,780 Sri Lanka 2,288 Dominican Republic 1,840 Tanzania 5,497 Ecuador 2,060 Thailand 2,047 El Salvador 2,147 Togo 6,362 Ethiopia 8,010 Uganda 16,506 Ghana 7,088 Guatemala 1,895 Compassion has started to partner with churches Haiti 5,514 in Malawi , Myanmar , Honduras 1,415 Cambodia and Zambia . In these four countries, we’re Indonesia 4,319 currently developing new Kenya 11,862 church partnerships.

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Annual Report 2023/2024

Compassion UK

REFUGEE SUPPORT

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.

12,726 CHILDREN WERE NEWLY SPONSORED

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7,906
YOUNG ADULTS
AND CHILDREN LEFT
THE PROGRAMME
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92.4% OF SPONSORS CONTINUED THEIR SPONSORSHIP

AT THE YEAR END, THERE WERE 101,667 CHILDREN AND YOUTH REGISTERED IN OUR SPONSORSHIP PROGRAMME, A DECREASE OF 1,500

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THIS YEAR WE REGISTERED 700

COMPASSION COMMUNITY

5,549 CHILDREN WERE BEING SUPPORTED IN THIS PROGRAMME THIS YEAR, A DECREASE OF 151.

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We’re piloting a new approach using Gift Aid funds to support whole projects in Rwanda and Uganda and are monitoring outcomes.

CHILDREN IN UGANDA WHO HAVE FLED CONFLICT IN THE DEMOCRATIC REPUBLIC OF CONGO AND SOUTH SUDAN ALONGSIDE 300 LOCAL UGANDAN CHILDREN

1,961 ARE NO LONGER SUPPORTED BY COMPASSION UK AS DONORS WERE FOUND IN COMPASSION INTERNATIONAL FOR 9 PROJECTS IN GHANA.

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4,090 MOTHERS AND BABIES WERE REGISTERED IN CHILD SURVIVAL INTERVENTIONS BY THE YEAR END, A DECREASE OF 130

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.

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CONSTRUCTED 5 TOILET BLOCKS, SUPPORTING 1,500 CHILDREN AND THEIR FAMILIES AND COMMUNITIES

SET UP 2 VOCATIONAL TRAINING CENTRES, TRAINING 1,200 YOUTH IN SKILLS INCLUDING CONSTRUCTION, MECHANICS AND SOLAR ENERGY.

468,592 ENCOURAGING MESSAGES OF SUPPORT BETWEEN CHILDREN AND THEIR SPONSORS

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REBUILT HOMES IN SRI LANKA AFTER FLOODING, BRINGING 19 FAMILIES BACK TO THEIR COMMUNITIES AND SUPPORT NETWORKS

OVER 58,000 PEOPLE IN ETHIOPIA SUPPORTED WITH EMERGENCY SUPPLIES OF CEREAL, OIL AND PULSES FOR 3 MONTHS

OUR UNSPONSORED CHILD PROGRAMME

We ensure children benefit from quality holistic care while we try to find them a sponsor.

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AT THE YEAR END, THERE WERE 5,301 CHILDREN BEING LOOKED AFTER WHILE WAITING FOR A SPONSOR, AN INCREASE OF

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PARTNERED WITH 2 OTHER NGOS TO ASSESS THE MOST EFFECTIVE LEADERSHIP PROGRAM FOR TOGO. TRIALLING SOLUTIONS WITH 150 YOUTH.

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BUILT 7 BOREHOLES IN GHANA AND UGANDA, PROVIDING SAFE WATER TO OVER 10,500 CHILDREN AND FAMILY MEMBERS

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24,477 CHRISTMAS DONATIONS TOTALLING £896,000 GIVEN TO THE CHRISTMAS APPEAL

1,740

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Annual Report 2023/2024

Compassion UK

FINANCIAL REVIEW INCOME & EXPENDITURE

_

FINANCIAL REVIEW RESERVES

_

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INCOME EXPENDITURE
£52.6m £52.7m
( £1.5m) ( £2.6m)
OTHER INCOME
DEFICIT INCURRED
£0.5m
FUNDRAISING £0.1m
( £0.2m) DONATIONS, GRANTS £6.6m
AND GIFT AID
( £0.7m)
£52.1m
( £1.3m)
SUPPORT & GOVERNANCE
£4.0m
( £0.5m)
FUNDS BENEFITING
CHILDREN IN POVERTY
£42.1m
( £1.4m)
88.5% Hover over
donations for more
were used for information
charitable
activities
99.5% 80.8%
of income is of all Hover over
donations and donations were for more
Gift Aid from used to benefit information
the public children in
poverty
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while 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.

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.

At the end of the financial year, Compassion UK held £7.2m in general reserves, of which £3.4m 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 £2.7m of general reserves are excess reserves that are being utilised over three years to increase the number of children supported by Compassion through investing in innovation and finding new supporters. In FY24 £0.6m of reserves were used as part of this planned deficit spending.

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, which has been partly addressed through the sponsorship rate change,

GENERAL RESERVES £7.2m ( £0.6m)

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£2.7m
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RESTRICTED
RESERVES
£2.0m
( £0.5m)
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Ringfenced to benefit children in poverty by building future growth capabilities and finding new supporters

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Restricted reserves £4.5m
increased due to
legacies accrued.
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General reserves minimum requirement (six months, operational expenditure)

Sponsorship income Intervention donations Fundraising costs Funds benefiting children increased by £2m due decreased by £0.8m increased due to inflation increased due to additional to an increase in the due to lower giving and investment in funds from rate increase and sponsorship rate in this area innovation and testing gift aid associated with this

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Annual Report 2023/2024

Compassion UK

PRINCIPAL RISKS AND UNCERTAINTIES

_

Robust risk management is crucial for effective governance and the successful achievement of Compassion UK’s mission. The trustees of Compassion UK hold ultimate responsibility for risk management. They lead in setting the parameters of risk appetite statements and ensure that a risk management culture is embedded within the organisation.

charitable giving, donor fatigue from frequent appeals from charities driven by high inflation, increased operational costs or rising global needs of children.

Additionally, limited or ineffective acquisition opportunities through events, church services, and digital platforms or failure to adapt marketing strategies and ways of giving to changing supporter behaviour and the fundraising environment.

Compassion UK maintains a risk operational risks within the risk register, and trustees review risks appetite set by the Board. They report Mitigating Actions annually, focusing on those that may to the trustees on the organisation’s Generosity of supporters directly impact the achievement of overall risk management and escalate We remain grateful and blessed to strategic objectives. This proactive risks as appropriate when they have supporters who continue to be approach allows trustees to better have the potential to threaten the inspired, even in these difficult times, anticipate and navigate long-term achievement of strategic objectives. to give generously and prevent more challenges or opportunities, enabling children being drawn into poverty. We informed strategic decisions. As a global partner of Compassion show appreciation and provide regular International, Compassion UK updates to supporters on how their The risk management process at collaborates with all entities within donations are making a significant Compassion UK involves establishing Compassion’s global partnership-based difference in the lives of children and oversight responsibilities and structure to ensure a holistic view and their families. systematically applying key steps management of the most critical risks. to identify, evaluate, respond to, This collaboration aims to protect the Fundraising appeals monitor, record, and report on risks. ministry, its global operations and help Our commitment to the children we The potential severity of each risk is release more children from poverty in serve remains the same, but their determined by assessing the impact Jesus’ name. needs have grown. In response to the and likelihood of occurrence both global food crisis, extreme weather, before and after implementation of drought, conflict and unstable political effective control measures. Summary of principal environments, we communicate clearly risks, uncertainties and and consistently about the urgency To enhance efficiency and mitigation actions and importance of donations in times effectiveness, trustees delegate the of global crises to ensure more children detailed review of major strategic risks Potential and existing supporters and their families do not fall into food to the Finance and Audit Committee, become less responsive to insecurity and extreme poverty.

effectiveness, trustees delegate the detailed review of major strategic risks to the Finance and Audit Committee, the People and Culture Committee, and the Safeguarding Committee. These committees meet regularly throughout the year and report their findings to the Board.

Potential and existing supporters become less responsive to Compassion UK’s fundraising efforts resulting in reduced or cancelled donations and an overall decline in revenue. This is exacerbated by the failure to effectively reach and engage potential supporters and new audiences.

Hedging

Careful planning means we can increase currency stability via currency hedging.

Diversifying revenue stream

The Executive Team, under delegated responsibility, is accountable for implementing mitigation measures related to strategic risks and managing

We have developed a strategic focus on the diversification of our income including investigating innovative

Potential Causes

Economic instability affecting supporters’ disposable income and

initiatives to create new products and revenue streams.

Supporter engagement and experience

We develop and deliver targeted campaigns and personalised communication telling impactful stories that enhance the understanding of the multidimensional nature of poverty to connect with existing and potential supporters.

Adapt Marketing Strategies

We tailor our efforts to align with changes in supporter behaviour and the fundraising environment. We also use social media, and cultivate new church and event organiser partnerships to reach new audiences, especially the younger generation.

We will continue to use creative approaches for our marketing and fundraising initiatives and explore new acquisition opportunities to maximise opportunities to reach wider audiences.

Negative perception of Compassion UK among potential and existing supporters.

Potential Causes

Adverse negative publicity and making statements on contentious issues can significantly damage the organisation’s reputation. Additionally, unacceptable personal use of social media by employees and associated personnel, as well as misconduct or malpractice by anyone acting on behalf of Compassion UK can further erode public trust and confidence in the ministry.

Non-compliance with regulatory standards and legal requirements, personal data breaches, increasing cybersecurity threats, other incidents or crises and failure to take appropriate

action may also contribute to the Our main national offices in each negative perception. country have suitable and qualified staff who supervise local churches, Mitigating Actions overseeing child protection, Crisis Management and PR Strategy safeguarding, financial, operational and We have a crisis management plan regulatory compliance. to handle adverse publicity and contentious issues effectively. This Social Media Policy includes timely and appropriate We have a Social Media Policy which responses to any negative media provides guidelines for employees and coverage. Our crisis communication associated personnel who engage in processes includes collaboration social media activities on behalf of the with Compassion International organisation or whose activities on and our UK-based PR agency, to social media in their personal capacity manage any potential or emerging could be associated with Compassion communications issues. We are in any way. This is to ensure that committed to maintaining clarity, online behaviour aligns with the honesty and transparency in our organisation’s ethos and values and communications to build trust and communication standards. demonstrate accountability.

Compliance, Data Protection and Information Security Measures

Serious Incidents Reporting Policy

We have clear, robust and rigorous We implement policies and serious incident reporting and procedures which ensure compliance whistleblowing policies and procedures with regulatory standards and which encourage reporting. There legal requirements and conduct is a robust investigation process in regular reviews for assurance and the event of an actual or suspected accountability purposes. We implement incident. We take prompt action against organisational practices and technical any misconduct or malpractice by measures to prevent personal individuals or partners associated with data breaches, including security the organisation. Compassion continues enhancements to proactively identify to be vigilant in embedding protection cybersecurity threats, provide training, and safeguarding efforts into all areas guidance and updates on data security of the ministry. This includes continuous to help mitigate risks. investment in delivery of global training and improving systems for global Failures in effectively identifying, reporting and incident management. developing and utilising our team’s

Failures in effectively identifying, developing and utilising our team’s talents, ineffective talent acquisition strategy or a suboptimal employee value proposition.

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.

Potential Causes

Absence of robust systems and processes to identify and nurture talent, slow implementation of talent management initiatives, or insufficient opportunities for growth and professional development.

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Annual Report 2023/2024

Compassion UK

Additionally, ineffective approaches Missed opportunities for new products to fostering a culture of belonging, and failure to diversify revenue along with difficulties in attracting streams. and retaining a skilled and diverse Potential Causes workforce, high turnover rates, poor Barriers to implementing and succession planning and charity sector sustaining future-focused innovation pay may contribute to the problem. and initiatives, along with a failure

workforce, high turnover rates, poor Barriers to implementing and succession planning and charity sector sustaining future-focused innovation pay may contribute to the problem. and initiatives, along with a failure to keep up with new technological Mitigating Actions trends and leverage new tools, hinder Annual pay reviews and remuneration progress. Stakeholder reluctance and benchmarking resistance to embrace new ideas and We remain committed to attracting, innovation initiatives further exacerbate recruiting, and retaining the right calibre the problem.

We remain committed to attracting, innovation initiatives further exacerbate recruiting, and retaining the right calibre the problem. of highly skilled staff. We promote the distinct benefits of working for Mitigating Actions the Compassion ministry offering a Foster a Culture of Innovation compelling employee value proposition, Through our Innovation Lab, we have including competitive total rewards, encouraged and promoted a culture a positive work culture, and a sense that embraces innovation by providing of belonging. Our trustees conduct support and resources for futureannual reviews of the pay policy and focused initiatives. This has created pay scales. Levels of remuneration are an environment where new ideas are benchmarked regularly against labour welcomed and tested. market trends and other organisations in the charity sector. Through market research, we strive to understand the needs and preferences Talent acquisition, management and of our target audience so that we retention ensure that all innovation initiatives We are implementing initiatives and support the core strategic objectives of processes that identify and nurture the organisation. This alignment helps talent within the organisation. This in prioritising efforts that meet both includes providing opportunities supporter and programme participants for career development plans, skills needs, and contribute to long-term development and professional growth. growth and sustainability. We have also made improvements in our talent acquisition strategies to We actively engage with a wide range attract a skilled and diverse workforce. of stakeholders in the innovation

in our talent acquisition strategies to We actively engage with a wide range attract a skilled and diverse workforce. of stakeholders in the innovation ~~a~~ process to reduce resistance Failure to ensure information and demonstrate the value of technology systems are future-proof, new initiatives. scalable, secure, and simple. Potential Causes Technological Trends

Technological Trends

Reliance on outdated and inadequate We will consistently invest in systems and technologies technological advancements and leverage new tools to drive Mitigating Actions innovation. We are committed to Future-Proof Systems and ensuring our teams stay updated and Technologies informed on the latest technological We are conducting a comprehensive IT trends. This includes exploring the systems review with the aim to invest adoption and integration of Artificial in modern, scalable, secure, and userIntelligence to enhance our efficiency friendly systems and technologies. We and effectiveness, while carefully will regularly update and maintain our managing the potential risks related systems to ensure they meet current to misinformation, disinformation and and future organisational needs. disruption that AI may pose.

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17

Compassion UK - Structure, GOVERNANCE & MANAGEMENT

“I want to be a scientist to find cures for diseases and help save the lives of many children worldwide.”

DAYANA, ECUADOR

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Annual Report 2023/2024

Compassion UK

RICHMOND WANDERA, TRUSTEE

Bertram Shaun Sinniah

Matthew Walker

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.

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Professor Anna
Jon Toohey Delfin Posada Maslin, PhD
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Dr Richmond
Tim Malton Wandera, PHD
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Appointed Chair of the Board of Trustees

Chair of the Board of

Safeguarding

Deputy Safeguarding Trustee Lead

(Appointed as a trustee 10 November 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.

Trustees until 01 November

Trustee Lead

A former pastor, Delfin is an internationally experienced solicitor and founding member of his law firm.

01 November 2023

Anna has been working globally focusing on health, human rights and international development for over 40 years, and has represented the UK at numerous international fora.

Tim has spent the last 20 years in investment banking specialising in emerging markets. Prior to this, he was involved in the insurance industry for 15 years. He is currently an advisor to a large financial services firm.

Shaun is the Managing Director of a leading independent specialist broking firm. He has a wealth of experience in multiple industries.

10 November 2023)

Jon is a qualified

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 multinational companies in various industries.

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Hedy Hodson
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David Steinegger
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Adesola Irukwu Fiona Sellers
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(Retired as a trustee Chair of the Finance and (Appointed as a trustee 10 November 2023) Audit Committee 10 November 2023) Matthew is a qualified Hedy is a chartered A chartered accountant accountant and Chartered accountant who has had with 40 years, experience Member of the Institute various roles working with in financial services, of Housing. Passionate the public sector, charities, as well as significant about improving quality churches and community experience on the board of life for those he serves, projects with a particular of several charities and in he is Chief Executive of focus on families and church leadership. Leeds Federated Housing young people. Association and Chair of PlaceShapers.

Appointed as a trustee Chair of the People 03 March 2023 and Culture Committee Adesola is the co-founder appointed as a trustee of Bright Futures For 03 March 2023 African Children. She Fi has a wealth of holds a Bachelor’s degree experience from a career in in Dental Surgery from HR in both the commercial the University of Ibadan, and charity sectors. Nigeria and a Masters in Fi was the Director of Conference and Events People for HTB Group for Management from the 6 years before recently University of Westminster, returning to running her London. own HR consulting and coaching business.

(Appointed as a trustee 10 November 2023) A chartered accountant with 40 years, experience

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.

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.

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Justin Dowds
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Chief Executive Officer

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Amy Hiorns
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Chief Operating Officer and Company Secretary

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Rev Lyn Weston
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Senior Director of Partnerships

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Nick Harris
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Stephen Blow
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Senior Director Finance Director of Marketing and Engagement

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Annual Report 2023/2024

Compassion UK

SAFEGUARDING

restore the child’s safety and provide an opportunity for them to heal. Compassion follows all OUR relevant national laws relating to reporting child maltreatment and background checking and in criminal behaviour. ENVIRONMENT country training and supervision remain in place. The revised Compassion UK fully complies _ with our responsibility to report Code of Conduct is being used by all travellers to the field. all serious incidents to the Charity Commission, Foreign, People living in poverty ■ Offer virtual trips to visit Trip Leaders have received specific child protection and Commonwealth & Development are disproportionately Compassion programmes as an Office (FCDO) and any other alternative to in-person visits. safeguarding training during relevant authority. During the harmed by climate the past year. During the next financial year, a protection and financial year, two incidents issues. We want to do EMISSIONS DURING THE LAST YEAR: were reported to the Charity safeguarding training video will Commission which involved a all we can to be part of ■ Our assessment this year showed be produced for travellers joining that emissions increased by 169 a trip or visit. participant who was sponsored the solution. tonnes of CO2 to 347 tonnes of 2 to 347 tonnes of to 347 tonnes of through Compassion UK. Neither REPORTING of these incidents involved a CO2. This is linked to a return to 2. This is linked to a return to . This is linked to a return to Everyone at Compassion UK Compassion UK staff member Through assessing our carbon normal activity levels following the is responsible for reporting or volunteer. Both incidents footprint, we monitor, reduce and pandemic. Emissions are 34% of any potential incident, abuse were fully investigated, with offset our emissions to maintain our the baseline (1,017 tonnes of CO2) 2) ) or concern they witness or are a survivor-centred approach. carbon-neutral status. established when emissions began made aware of. This includes being measured. The four top MODERN SLAVERY a responsibility to report any emitting areas were as follows: breach of Compassion’s Code Compassion UK is committed WE CONTINUE TO: of Conduct. Compassion to upholding high standards of ■ Harness energy-efficient systems, z Air Travel: 41% of UK has an appropriate and accountability and transparency such as solar panels and other total emissions accessible process for reporting to ensure modern slavery and technologies, in our offices. z Travel by Car: 21% of safeguarding concerns that is human trafficking are not taking ■ Offer paper-free experiences for total emissions available to all. Full training has place within our organisation or supporters. We have identified z Electricity: 13% of been provided to all staff at supply chains. To date, we have this could save half a million total emissions Compassion UK on the reporting found no evidence of this. printed documents each year. z Home Working: 12% of protocols and procedures. We have rigorous systems and ■ All company cars are fully electric. total emissions Significant improvements have processes for appropriate and been made to the internal proportionate due diligence Compassion UK reporting and managing risks associated , process to further remove with supply chains and “* t barriers to reporting incidents. international operations. fi; .

_

implementation. Safeguarding remains an agenda item at Board meetings; regular Executive Team meetings and updates are provided to every trustee. There have been revisions made to the Code of Conduct and Safeguarding Policy.

The protection of anyone who comes into contact with Compassion UK or our work is at the core of our ministry, and we are committed to doing all we can to keep children and adults safe, ensuring that they are known, loved and protected.

ACTIONS TAKEN DURING THE YEAR:

Safer recruitment – safeguarding is embedded in the recruitment processes for staff, trustees and volunteers, including background and DBS checking and high standards of behaviour being set. Compassion UK is an active participating member of the Misconduct Disclosure Scheme.

We have a zero-tolerance approach to safeguarding issues involving children, with robust systems in place, both in the UK and overseas, to prevent, identify and respond to harm. We continue to embed our safeguarding and child protection work within the three pillars: prevention, reporting and response.

Training – All staff training has been delivered on updates to the Code of Conduct, on safeguarding within our programmatic countries and on reporting issues and concerns. The full Board received safeguarding training in March 2024 related to online sexual exploitation of children and all trustees signed the updated Code of Conduct. Further training has been developed for volunteers and contractors in high-risk roles. Training is planned to take place during the next financial year around employee safety and security and sexual harassment.

PREVENTION

Everyone at Compassion UK is responsible for creating and maintaining an environment that neither tolerates nor condones the maltreatment of children or adults. Activities and efforts to promote safeguarding primarily focus on stringent preventative interventions that reduce risk factors. These include:

Compassion UK has a ‘Whistleblowing Policy and Procedure’ intended to encourage and enable anyone to raise serious concerns without fear of victimisation, subsequent discrimination or disadvantage. Whistleblowing concerns can be submitted anonymously through our website. This includes the option to report directly to the Whistleblowing trustee.

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.

Communications and content – Compassion’s Marketing and Communications Team has global standards aligning with our child protection policies. The child’s interest is always our primary concern, and all communications and marketing activities have the dignity and protection of child or youth participants at the core.

Governance and Leadership – our Board of Trustees and Executive Team take their safeguarding responsibilities very seriously, actively considering how to strengthen this area of our work. During the last year, the Safeguarding Committee met to review policies and other related documents and consider progress and activities towards the safeguarding strategy

The Board of Trustees annually reviews progress against our objectives for the protection from modern slavery and human trafficking to ensure adequate oversight and have delegated the regular review and reporting to the Safeguarding Committee.

ENCOURAGED THROUGH ie COMPASSION’S PROGRAMME TO PURSUE HER PASSION : me 4 FOR ENGINEERING. HERE, SHE STANDS WITH HER LATEST CREATION; A SOLAR' POWERED WHEELCHAIR. “7,

RESPONSE

Compassion’s greatest responsibility is to protect children from harm. If a child is harmed, the priority is to

Field experience – in-person travel continues to increase. Existing protocols like

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Annual Report 2023/2024

Compassion UK

FUNDRAISING STATEMENT

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_

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. Additionally, members of relevant departments are also registered with the This ambitious aim Institute 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 public facing touchpoints, such as our website, and supporters as we 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 from undertake fundraising activities either on our extreme poverty. behalf or through their own initiative. We

procedures for handling complaints. In the 2023-2024 financial year, we received 13 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.

Compassion UK’s fundraising activities are conducted mainly by its employees and volunteers. This primarily involves working in partnership with a wide range of stakeholders, including UK churches and Christian events and festivals. During fundraising events, a ‘Compassion Moment’ is featured, which showcases our work and inspires people across the country to help a child step out of poverty through sponsorship.

When conducting our direct marketing activities, we remain committed to:

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. However, we have retained the details of the request for future reference.

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 due diligence procedures; reviewing agreements and contractual clauses in relation to compliance with the Code of Fundraising Practice; and performance reviews.

diligence procedures; reviewing agreements Compassion UK’s Policy on Supporters and contractual clauses in relation to in Vulnerable Circumstances is publicly compliance with the Code of Fundraising available on our website. We ensure everyone Practice; and performance reviews. involved in fundraising activities is equipped to identify, interact and respond to our Compassion UK does not engage supporters who are in potentially vulnerable professional fundraisers but has agreements circumstances. We will always be mindful to with Commercial Participators that are respond appropriately to the particular needs longstanding corporate partners of of a supporter and ensure we have effective the ministry. policies and procedures in place to treat them respectfully and fairly.

GOVERNING DOCUMENT

_

ORGANISATION

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.

The Board of trustees must have at least three members and is responsible for setting strategies and policies and ensuring that these are implemented.

All trustees give their time freely, and no trustee remuneration was paid in the Trustee Indemnity Insurance is provided year. Details of trustee expenses and by Compassion UK for trustees. related party transactions are disclosed in notes 11 and 18 to the accounts.

CONNECTED CHARITIES

Trustees are required to disclose all relevant interests and, in accordance with the trustees’ policy, withdraw from decisions where a conflict of interest arises.

COMPASSION INTERNATIONAL

APPOINTMENT OF VOLUNTEER TRUSTEES

with the trustees’ policy, withdraw We are a member of the Compassion from decisions where a conflict of Global Partner Alliance, consisting interest arises. of organisations throughout the world with a mutual commitment of The trustees conduct an annual Board purpose, structure and methodology. review to evaluate performance against In order to be as effective as possible, the principles set out in the Charity the delivery of help to children in Governance Code. The evaluation report beneficiary countries is coordinated is used to identify and explain areas of and implemented centrally through strength and areas for development. Compassion International. Fundraising We have established procedures partner countries transfer funds raised that ensure actions to implement the to Compassion International which are Code’s principles are reviewed routinely then used to support programmes in at each Board meeting to ensure the 29 frontline field countries. Grants ongoing accountability. paid to Compassion International cover the grants to the frontline There are now three sub-committees church partners and running the field namely; Finance and Audit Committee, country and regional offices, as well Safeguarding Committee and the as programme costs at Compassion People and Culture Committee which International as this is the most efficient exist to provide support and advice way to distribute funds.

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.

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.

There are now three sub-committees namely; Finance and Audit Committee, Safeguarding Committee and the People and Culture Committee which exist to provide support and advice to the Board in its governance role in respect of finance and audit issues, safeguarding, people and culture. The committees are appointed by the Board with no less than four members, with a minimum of two members of the committee being members of the Board.

TRUSTEE INDUCTION AND TRAINING

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 where Compassion works to see the programmes first-hand.

COMPASSION IRELAND

We have an agreement to provide support services to Compassion Ireland for a fixed fee of 12% of all donations received. This excludes gifts and appeals, of which 100% is sent to Compassion International.

The committees meet at least three times a year.

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Annual Report 2023/2024

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

The Trustees’ Report (incorporating the Strategic Report) was approved by the Board of Trustees (which is also the Board of Directors) on 18th October 2024 and signed on its behalf by Shaun Sinniah (Chair).

On behalf of the Board

Shaun Sinniah (Chair) 18th October 2024

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 2024, 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.

CONCLUSIONS RELATING TO GOING CONCERN

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.

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:

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

OTHER INFORMATION

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report

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22

Annual Report 2023/2024

Compassion UK

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

the following laws and regulations

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.

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.

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 22, 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 Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

management in its significant accounting estimates;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our 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/StandardsMen2uele and-guidance-for-auditors/Auditorsresponsibilities-for-audit/Descriptionof-auditors-responsibilities-for-audit. Janice Matthews FCA, Senior aspx. Statutory Auditor

body, for our audit work, for this report, or for the opinions we have formed.

USE OF OUR REPORT

For and on behalf of Menzies LLP, Statutory Auditor

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state

Chartered Accountants Statutory Auditor Magna House, 18-32 London Road, Staines-upon-Thames, TW18 4BP

to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a

Dated: 18th October 2024

Menzies LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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Annual Report 2023/2024

Compassion UK

ALEYA, THAILAND

Financial STATEMENTS

ALEYA IS ENCOURAGED AT THE COMPASSION CENTER TO HAVE DREAMS—AND SHE AND HER FRIENDS ARE LEARNING HOW TO PURSUE THE DREAMS THAT MAY SEEM FAR FROM REACH.

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Annual Report 2023/2024

Compassion UK

STATEMENT OF FINANCIAL ACTIVITY

BALANCE SHEET

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

NOTE RESTRICTED
FUNDS
£'000		 DESIGNATED
FUNDS MOST
NEEDED
£'000		 GENERAL
FUNDS
£'000		 TOTAL
FUNDS 2024
£'000		 RESTRICTED
FUNDS
£'000		 DESIGNATED
FUNDS MOST
NEEDED
£'000		 GENERAL
FUNDS
£'000		 TOTAL
FUNDS 2023
£'000
INCOME FROM
Donations & Legacies
Grants		 5a
5b		 34,894
-		 7,672
-		 9,574
-		 52,140
-		 34,283
169		 7,072
-		 9,276
-		 50,631
169
TOTAL VOLUNTARY INCOME 34,894 7,672 9,574 52,140 34,452 7,072 9,276 50,800
Charitable activities
Interest
Profit/(Loss) on disposal
of assets		 6 -
-
-		 -
-
-		 52
423
(9)		 52
423
(9)		 -
-
-		 -
-
-		 70
259
7		 70
259
7
TOTAL INCOME 34,894 7,672 10,040 52,606 34,452 7,072 9,612 51,136
EXPENDITURE ON
Raising Funds
Charitable activities		 7
8		 -
34,419		 -
7,672		 6,616
4,041		 6,616
46,132		 -
33,563		 -
7,104		 5,902
3,531		 5,902
44,198
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS		 34,419 7,672 10,657 52,748 33,563 7,104 9,433 50,100
475 - (617) (142) 889 (32) 179 1,036
RECONCILIATION OF FUNDS
Total Funds
Brought Forward
TOTAL FUNDS CARRIED FORWARD		 1,538
2,013		 -
-		 7,835
7,218		 9,373
9,231		 649
1,538		 32
-		 7,656
7,835		 8,337
9,373

The statement of financial activities includes all gains and losses recognised in the year. All income and expenses derive from continuing activities.

NOTE £’000 £’000
FIXED ASSETS
Tangible assets
Intangible assets		 12
12		 3,845
-		 3,907
-
TOTAL FIXED ASSETS 3,845 3,907
CURRENT ASSETS
Debtors
Cash at bank and in hand
Current Asset Investment		 13
14		 2,466
5,803
3,000		 2,610
4,393
3,090
TOTAL CURRENT ASSETS 11,269 10,093
LIABILITIES
Creditors: Amounts falling due within one year		 15 (5,883) (4,627)
TOTAL LIABILITIES (5,883) (4,627)
NET CURRENT ASSETS 5,386 5,466
TOTAL NET ASSETS 9,231 9,373
THE FUNDS OF THE CHARITY
UNRESTRICTED FUNDS
General Funds
Designated Funds: Most Needed Fund		 7,218
-		 7,835
-
TOTAL UNRESTRICTED FUNDS 7,218 7,835
Restricted income funds
TOTAL FUNDS CARRIED FORWARD		 17 2,013
9,231		 1,538
9,373

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.

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.

Approved by the Board on 18th October 2024 and signed on its behalf by Shaun Sinniah

Company Registration Number 03719092

The definitions of restricted, designated and general funds can be found in the accounting policies note 1J, 1K and 1L.

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25

Compassion UK

CASHFLOW STATEMENT

CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the reporting period (as reported in the Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation & Amortisation charges
(Profit)/Loss on the sale of fixed assets
Dividends, interest and rents from investments
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
Creditors for fixed asset acquisitions unpaid at year end		 £’000 £’000
(142)
197
9
(423)
144
1,256
35		 1,036
155
(7)
(259)
(1,938)
(498)
-
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,076 (1,511)
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interest and rents from investments
Amount invested in short term investments
Purchase of fixed assets
Creditors for fixed asset acquisitions unpaid at year end
Proceeds from the sale of fixed assets		 423
90
(205)
(35)
61		 259
995
(180)
-
37
Net cash provided by/(Used in) investment activities 334 1,111
CHANGE IN CASH AND CASH EQUIVALENTS IN THE REPORTING PERIOD 1,410 (400)

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ALLIANCE, RWANDA
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Annual Report 2023/2024

Compassion UK

NOTES

B) INCOME

Grants that are subject to conditions such as matched funding are only recognised once those conditions have been fulfilled.

This is included in the Statement of Financial Activities (SoFA) when:

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.

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

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

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Annual Report 2023/2024

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 £38,886,000 [FY23 £37,464,000] of which £2,757,000 [FY23 £2,674,000] was owed at the year-end and a further £1,169,000 [FY23 £433,000] was accrued. The outstanding amount represents the June 2024 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 £23,000 [FY23 £8,000] to Compassion UK. Compassion UK incurred expenses of £55,000 [FY23 £13,000] to Compassion International of which £25,000 [FY23 £0] 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, after deducting some direct costs.

During the year £45,000 [FY23 £32,000] was received in income from servicing Compassion Ireland and costs were £83,000 [FY23 £72,000]. The balance owing by Compassion Ireland is £48,000 [FY23 £19,000].

5a DONATIONS AND LEGACIES

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
RESTRICTED DESIGNATED GENERAL TOTAL FUNDS RESTRICTED DESIGNATED GENERAL TOTAL FUNDS
FUNDS FUNDS MOST FUNDS 2024 FUNDS FUNDS MOST FUNDS 2023
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
MINIMUM 80% RESTRICTED
- -
Child Sponsorship 28,745 7,185 35,930 27,173 6,795 33,968
Unsponsored Children 96 - 24 120 97 - 24 121
Project Sponsorship 85 - 2 87 6 - - 6
Interventions 1,268 - 234 1,502 1,849 - 461 2,310
Sponsorship Plus 534 - 129 663 542 - 130 672
Child Survival Programme 253 - 63 316 314 - 81 395
HIV/Aids Fund 54 - 13 67 59 - 15 74
Other Restricted Donations - - - - - - - -
100% RESTRICTED
Gifts for children and families 2,394 - - 2,394 2,419 - - 2,419
Gifts for projects 187 - - 187 223 - - 223
Christmas Appeal 896 - - 896 873 - - 873
Disaster Relief 382 - - 382 728 - - 728
MINIMUM 80% DESIGNATED
Gift Aid - 6,791 1,698 8,489 - 6,414 1,603 8,017
General unrestricted income - 881 221 1,102 - 658 165 823
OTHER DONATIONS
Other Donations - - 5 5 - - 2 2
TOTAL 34,894 7,672 9,574 52,140 34,283 7,072 9,276 50,631
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Included in the above is legacy income of £1,199,000 [FY23 £1,249,000]

4 NET MOVEMENT IN RESOURCES FOR THE YEAR

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
£’000 £’000
Depreciation and amortisation of fixed assets 197 155
(Profit)/Loss on disposal of fixed assets 9 (7)
Annual audit fees 31 31
Other fees paid to Auditor for advice/consultancy etc 2 2
Foreign exchange (gains)/losses (9) 17
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5b GRANTS RECEIVED

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
RESTRICTED DESIGNATED GENERAL TOTAL FUNDS RESTRICTED DESIGNATED GENERAL TOTAL FUNDS
FUNDS FUNDS MOST FUNDS 2024 FUNDS FUNDS MOST FUNDS 2023
NEEDED NEEDED
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
FCDO Grant - - - - 169 - - 169
TOTAL - - - - 169 - - 169
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Compassion UK

6 CHARITABLE ACTIVITIES

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
£’000 £’000
Compassion Ireland Service Income 45 32
Field Experience Income/(Refunds) 11 1
Other (4) 37
TOTAL 52 70
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7 EXPENDITURE ON RAISING FUNDS

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
NOTE £’000 £’000
Direct Costs Excluding Staff 2,763 2,416
Direct Staff Costs 2,259 2,108
Apportioned Support costs 9 1,594 1,378
TOTAL 6,616 5,902
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8 EXPENDITURE ON CHARITABLE ACTIVITIES

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----- Start of picture text -----
FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
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 34,419 4,470 780 39,669 33,563 3,966 691 38,220
Child Ministry Costs 8b - 3,202 3,116 6,318 - 3,138 2,710 5,848
Compassion Ireland - - 82 82 - - 72 72
Field Experience 8c - - 63 63 - - 58 58
TOTAL CHARITABLE EXPENDITURE 34,419 7,672 4,041 46,132 33,563 7,104 3,531 44,198
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8a GRANT MAKING

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
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 28,745 28,745 27,173 27,173
Unsponsored Children 96 - - 96 97 - - 97
Project Sponsorship 85 1,580 - 1,665 6 1,567 - 1,573
Gifts for children and families 2,394 - - 2,394 2,419 21 - 2,440
Gifts for Projects 191 - - 191 225 73 - 298
Christmas Appeal 895 - - 895 869 - - 869
Interventions 790 375 - 1,165 434 439 - 873
Disaster Relief 676 1,946 - 2,622 1,091 1,841 - 2,932
Child Survival Interventions 493 563 - 1,056 1,021 - - 1,021
FCDO Child Survival Grant - Togo - 3 - 3 110 19 - 129
HIV/Aids Funds 54 - - 54 59 - - 59
TOTAL CHILD GRANTS TO - -
COMPASSION INTERNATIONAL (i) 34,419 4,467 38,886 33,504 3,960 37,464
Compassion Norden and - - 2 2 - - 14 14
Germany Grants
Other Grants (ii) - 3 - 3 - 6 - 6
TOTAL GRANTS 34,419 4,470 2 38,891 33,504 3,966 14 37,484
Grant making support costs 9 - - 778 778 - - 677 677
FCDO Child Survival Grant - Togo 9 - - - - 59 - - 59
TOTAL COSTS OF GRANT MAKING 34,419 4,470 780 39,669 33,563 3,966 691 38,220
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8b CHILD MINISTRY COSTS

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
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) 3,202 3,202 3,138 3,138
Child Ministry Support Costs 9 - - 3,116 3,116 - - 2,710 2,710
TOTAL CHILD MINISTRY COSTS - 3,202 3,116 6,318 - 3,138 2,710 5,848
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Annual Report 2023/2024

Compassion UK

8c FIELD EXPERIENCE COSTS

10 STAFF COSTS

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
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 - - 63 63 - - 58 58
TOTAL FIELD EXPERIENCE COSTS - - 63 63 - - 58 58
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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 2024

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RAISING FUNDS GRANT MAKING CHILD MINISTRY FIELD ADMINISTERING TOTAL SUPPORT
EXPERIENCE FCDO GRANT COSTS
£’000 £’000 £’000 £’000 £’000 £’000
Facilities management 107 29 114 14 - 264
Information technology 356 196 785 13 - 1,350
Operations including finance and HR 224 81 329 5 - 639
Support salaries 893 445 1,778 30 - 3,146
Audit and accounting fees - 6 25 - - 31
Trustee, Board and compliance costs 14 21 85 1 - 121
1,594 778 3,116 63 - 5,551
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FOR THE YEAR ENDED 30 JUNE 2023

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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 and HR 185 80 321 7 7 600
Support salaries 758 390 1,556 25 33 2,762
Audit and accounting fees - 7 24 - - 31
Trustee, Board and compliance costs 13 11 46 2 1 73
1,378 677 2,710 58 59 4,882
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All support costs are paid from unrestricted funds. Total support costs are allocated on the basis of staff time attributable to that cost centre.

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FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
£’000 £’000
Wages and salaries 5,738 5,151
Pensions 684 619
Social security costs 592 550
Health insurance and other HR costs 102 101
7,116 6,421
FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
FTE FTE
Management 5 5
Support and administration 36 30
Supporter relations 46 41
Fundraising and communications 63 63
Grant management - 1
150 140
Percentage increase in staffing levels 7% 1%
FOR THE YEAR ENDED 30 JUNE 2024 FOR THE YEAR ENDED 30 JUNE 2023
AVERAGE NUMBER OF EMPLOYEES (HEADCOUNT) 172 164
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 6 2
£70k up to £80K 4 4
£80k up to £90K 1 2
£90K up to £100K - -
£100K up to £110K - 1
£110K up to £120K 1 -
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30

Annual Report 2023/2024

Compassion UK

11 TRUSTEES' REMUNERATION

No trustees’ remuneration was voted during the year.

Trustee expenses of £1,600 [FY23 £300] were paid in the year.

During the year the trustees travelled to Rwanda and Uganda to see first-hand the work of Compassion and to help fulfil their obligations as trustees. This trip cost £12,000 [FY23 £0].

Richmond Wandera visited the UK from Uganda during the year for board meetings and to promote Compassion UK. The cost of this trip was £8,000 [FY23 £0]. In addition, Richmond Wandera was paid £5,000 [FY23 £0] for virtual speaking engagements and other marketing activities.

14 CURRENT ASSET INVESTMENTS

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AS AT 30 JUNE 2024 AS AT 30 JUNE 2023
£’000 £’000
Investment Property - 90
Cash held on deposit 3,000 3,000
3,000 3,090
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The total premiums paid for trustee indemnity insurance in the year was £1,000 [FY23 £1,000].

15 CREDITORS

12 FIXED ASSETS

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TANGIBLE ASSETS INTANGIBLE ASSETS
FURNITURE, COMPUTER MOTOR VEHICLES FREEHOLD LAND TOTAL COMPUTER SOFTWARE
FIXTURES AND HARDWARE AND BUILDINGS
PLANT
£’000 £’000 £’000 £’000 £’000 £’000
COST
Balance at 1st July 2023 398 377 273 3,656 4,704 1,243
Additions for the year 137 30 39 - 206 -
-
Disposals for the year (10) (130) (126) (266) (4)
BALANCE AT 30TH JUNE 2024 525 277 186 3,656 4,644 1,239
DEPRECIATION/AMORTISATION
Balance at 1st July 2023 219 251 63 264 797 1,243
Disposals for the year (10) (130) (55) - (195) (4)
Depreciation for the year 72 13 60 52 197 -
BALANCE AT 30TH JUNE 2024 281 134 68 316 799 1,239
NET BOOK VALUE
At 1st July 2023 179 126 210 3,392 3,907 -
At 30th June 2024 244 143 118 3,340 3,845 -
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AS AT 30 JUNE 2024 AS AT 30 JUNE 2023
NOTE £’000 £’000
Compassion International 2,757 2,674
Deferred income 16 606 344
Trade creditors 513 634
Accruals 1,815 793
Other taxation and social security 136 129
Pension contributions outstanding 56 53
5,883 4,627
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16 DEFERRED INCOME

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AS AT 30 JUNE 2024 AS AT 30 JUNE 2023
£’000 £’000
DEFERRED INCOME BROUGHT FORWARD 344 286
Deferred income released in the year (193) (193)
Income deferred in the year 455 251
DEFERRED INCOME CARRIED FORWARD 606 344
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13 DEBTORS

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AS AT 30 JUNE 2024 AS AT 30 JUNE 2023
£’000 £’000
Compassion Ireland 48 19
Gift Aid reclaimable 190 915
Accrued legacy income 1,734 1,159
Other debtors and grants receivable 84 88
Prepayments 410 429
2,466 2,610
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31

Annual Report 2023/2024

Compassion UK

17 RESTRICTED FUNDS

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BALANCE AT 1 JULY 23 RESTRICTED INCOME TRANSFER RESTRICTED EXPENDITURE BALANCE AT 30 JUNE 24
£’000 £’000 £’000 £’000 £’000
- - -
Child Sponsorship 28,745 (28,745)
Unsponsored Children - 96 - (96) -
Compassion Community - 85 - (85) -
Gifts for children and families - 2,394 - (2,394) -
Gifts for Projects 4 187 - (191) -
Christmas Appeal - 896 - (895) 1
Interventions 1,511 1,268 - (790) 1,989
Hillsong Water from Partners 23 - - - 23
Disaster Relief - 382 294 (676) -
Child Survival Interventions - 253 240 (493) -
- - - - -
FCDO Child Survival Grant - Togo
HIV/Aids Funds - 54 - (54) -
Sponsorship Plus - 534 (534) - -
TOTAL 1,538 34,894 - (34,419) 2,013
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) -
Compassion 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 Interventions 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
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18 RELATED PARTY TRANSACTIONS

During the year a payment of £600 was made to the Pastors Discipleship Network, a Non-profit organisation in Uganda of which Richmond Wandera is a director. This payment was for use of premises during the trustee trip to Uganda.

19 LEASING COMMITMENTS

At 30 June 2024, the total of the charity’s future minimum lease payments under non-cancellable operating leases was:

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AS AT 30 JUNE 2024 AS AT 30 JUNE 2023
CARS OTHER TOTAL CARS OTHER TOTAL
£’000 £’000 £’000 £’000 £’000 £’000
Less than one year 8 7 15 22 7 29
Two to five year - 10 10 8 17 25
- - - - - -
Greater than five years
8 17 25 30 24 54
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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.

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AS AT 30 JUNE 2024 AS AT 30 JUNE 2023
FIXED ASSETS NET CURRENT TOTAL 2024 FIXED ASSETS NET CURRENT TOTAL 2023
ASSETS ASSETS
£’000 £’000 £’000 £’000 £’000 £’000
Restricted Funds - 2,013 2,013 - 1,538 1,538
Designated Funds Most Needed - - - - - -
General Funds 3,845 3,373 7,218 3,907 3,928 7,835
3,845 5,386 9,231 3,907 5,466 9,373
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PURPOSE OF RESTRICTED FUNDS

CHILD SPONSORSHIP

To relieve poverty amongst sponsored children.

UNSPONSORED CHILDREN

To support children registered in the programme but awaiting sponsorship.

GIFTS FOR CHILDREN AND FAMILIES

To bless the child or their family with additional gifts.

GIFTS FOR PROJECTS

To bless a church project with additional resources.

CHRISTMAS APPEAL

To provide a present and a celebration for each child.

INTERVENTIONS

To meet vital needs outside of what sponsorship covers.

DISASTER RELIEF

Critical relief for sponsored children and their projects, including reconstruction.

CHILD SURVIVAL INTERVENTIONS

Pre- and post-natal care for mothers and babies.

HIV AND AIDS FUND

To support sponsored children and their families affected by HIV and AIDS.

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.

COMPASSION COMMUNITY To support whole projects in relieving poverty amongst children registered in the programme.

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32

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Compassion UK
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Annual Report 2023/2024 i rs
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REFERENCES AND ADMINISTRATIVE DETAILS

_

REGISTERED CHARITY NO. 1077216 (ENGLAND AND WALES) SC045059 (SCOTLAND) COMPANY NUMBER 03719092

COMPANY SECRETARY

Amy Hiorns

REGISTERED AND PRINCIPAL OFFICE

Compassion House, Barley Way, Fleet, GU51 2UT

AUDITORS

Magna House, 18-32 London Road, Staines-upon-Thames, TW18 4BP

SOLICITORS

Barlow Robbins LLP, The Oriel, Sydenham Road, Guildford, Surrey, GU1 3SR

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33 , Back to contents ⬆
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compassionuk.org