Do Well Foundation Limited
Unaudited Annual Report and Financial Statements
31 December 2022
Company Registration Number 4131417 (England and Wales)
Charity Registration Number 1086997
Contents
Reports
| Reports | |
|---|---|
| Reference and administrative information | 1 |
| Trustees’ report | 2 |
| Report of the independent examiner | 6 |
| Financial statements | |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Principal accounting policies | 9 |
| Notes to the financial statements | 12 |
Do Well Foundation Limited
Reference and administrative information
Trustees A Foreman J E M Shaw J L E Barton Lady Dalmeny Lord Dalmeny Company secretary R A Cassell Do Well Foundation Limited Registered office 76 Bishops Road London SW6 7AR Company registration number 4131417 (England and Wales) Charity registration number 1086997 Independent examiner Buzzacott LLP 130 Wood Street London EC2V 6DL Banker HSBC Bank plc 799 Fulham Road London SW6 5HF Solicitor Bryan Cave 33 Cannon Street London EC4M 5TE
Do Well Foundation Limited 1
Trustees’ report 31 December 2022
The trustees present their statutory report together with the financial statements of Do Well Foundation Limited (the charity) for the year ended 31 December 2022.
The report has been prepared in accordance with Part 8 of the Charities Act 2011 and equates to a directors’ report for the purposes of company legislation.
The financial statements have been prepared in accordance with the accounting policies set out on page 9 to 11 of the attached financial statements and comply with the charitable company’s memorandum and articles of association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
GOVERNANCE, STRUCTURE AND MANAGEMENT
Constitution and background
The Delaware Do Well Foundation was created in the USA by Amanda Foreman, Jonathan Barton and Frank Wallis. Amanda Foreman is a best-selling biographer.
The Do Well Foundation Limited was incorporated on 20 December 2000 and registered with the Charity Commission on 12 June 2001. The charity is owned by the Delaware Do Well Foundation. The Charity Registration Number is 1086997.
Organisation
The trustees who have served during the year are set out on page 1.
The trustees constitute directors of the charity for the purposes of the Companies Act 2006. The trustees have the power to appoint a new trustee. Training is provided as required.
No trustee received any remuneration or reimbursement of expenses from the charity during the year.
Statement of trustees’ responsibilities
The trustees (who are also directors of the charitable company for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
Do Well Foundation Limited 2
Trustees’ report 31 December 2022
GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)
Statement of trustees’ responsibilities (continued)
-
observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The above report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Key management personnel
The charity has no employees. The trustees comprise the key management personnel. The trustees do not receive remuneration.
Risk management
The principal risks faced by the charity are financial sustainability and investment management. The trustees monitor these key risks by regular reviews of the charity’s available cash resources and changes in the market value of its primary asset, an investment property.
OBJECTIVES AND ACTIVITIES
Principal aims and charitable objectives
The objects of the charitable company, as contained in its memorandum of association, are to make grants for such charitable, literary and educational purposes as are exclusively charitable under the laws of England and Wales.
Activities
The charitable company is wholly owned by the Delaware Do Well Foundation (the Foundation), a US tax exempt charitable organisation, and was founded to carry out the work of that entity in the UK.
Do Well Foundation Limited 3
Trustees’ report 31 December 2022
OBJECTIVES AND ACTIVITIES (continued)
Activities (continued)
The charitable company derives the majority of its income from two principal sources: donations from the trustees and income generated by the investment property. During the year ended 31 December 2022 donations of £23,186 (2021 - £27,804) were received from trustees and the investment property generated rental income of £3,600 (2021 - £3,600).
The charitable company made £22,488 donation in the year (2021 - £18,161) to the House of SpeakEasy Foundation, Inc, a not-for-profit institution founded in the United States, and a further donation of £2,500 to Lady Margaret Hall, University of Oxford.
Related parties
The investment property is occupied by a relative of Jonathan Barton, one of the trustees, and the rental income is paid by Jonathan Barton on behalf of his relative. Amounts owed to the charity by Jonathan Barton are disclosed in note 12.
The House of SpeakEasy Foundation was co-founded by Amanda Foreman. Jonathan Barton and Amanda Foreman are both directors of the Foundation.
Grant making policy
The trustees are responsible for deciding upon the allocation of grants and donations and aim to support primarily literary and educational charitable entities.
When setting the objectives and planning the work of the charitable company for the year, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and, where relevant, its supplementary guidance.
FINANCIAL REVIEW
Review of the year
The income and expenditure of the charitable company for the year to 31 December 2022 are disclosed on page 7.
Total income for the year amounted to £28,207 (2021 – £31,788). Total expenditure in the year amounted to £34,738 (2021 – £30,017) and the charity realised £476 gains on current asset investment sales (2021 - £283). The charity incurred a deficit for the year of £6,055 (2021 – surplus of £2,054).
Total net assets at 31 December 2022 amounted to £206,615 (2021 – £212,670).
Do Well Foundation Limited 4
Trustees’ report 31 December 2022
FINANCIAL REVIEW (continued)
Reserves policy
As explained above, the charitable company gives grants and donations and aims to support primarily literary and educational charitable entities.
The trustees have examined the requirement for free reserves i.e., those unrestricted funds not designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charitable company’s work, the level of free reserves should be approximately equivalent to one year’s annual estimated expenditure. The trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in income and adequate working capital to cover core costs.
At 31 December 2022 unrestricted reserves amounted to £206,515 (2021 – £212,570). Of this amount £167,306 (2021 – £167,306) is represented by the investment property held for long term income and capital growth, leaving £39,209 (2021 – £45,264) as free reserves.
Free reserves currently amount to fifteen months (2021 - twenty-nine months) of expenditure (based on an average of the current years and the prior year’s expenditure).
Going Concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.
The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
FUND RAISING
The charity does not fund raise directly with individuals and therefore is not registered with the Fundraising Regulator. No fund-raising activities are undertaken.
POST BALANCE SHEET EVENTS AND FUTURE PLANS
The charity continues to focus on its primary charitable objectives of making grants for literary and educational purposes.
Approved by the trustees and signed on their behalf by:
Do Well Foundation Limited 5
Report of the independent examiner 31 December 2022
Independent examiner’s report to the trustees of the Do Well Foundation Limited
I report to the charity trustees on my examination of the financial statements of the charitable company for the year ended 31 December 2022.
Responsibilities and basis of report
As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with my examination giving me cause to believe:
-
accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
-
the financial statements have not been prepared in accordance with the methods and principles of “Accounting and Reporting by Charities: The Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)”.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Catherine Biscoe Buzzacott LLP Chartered Accountants 130 Wood Street London EC2V 6DL
Date: 28 September 2023
Do Well Foundation Limited 6
Statement of financial activities Year to 31 December 2022
(Including Income and Expenditure Account)
| Notes | Unrestricted funds | Unrestricted funds |
|---|---|---|
| 2022 £ |
2021 £ |
|
| Income from: Donations 1 Investments Foreign exchange gains Total income Expenditure on: Raising funds 2 Charitable activities 3 Total expenditure Net (deficit) / income before gains on investments Other gains and losses: Realised gain on current asset investments Net (expenditure) / income and net movement in funds for the year Total funds brought forward at 1 January 2022 Total funds carried forward at 31 December 2022 |
23,186 3,600 1,421 |
27,804 3,600 384 |
| 28,207 | 31,788 | |
| 496 34,242 |
458 29,559 |
|
| 34,738 | 30,017 | |
| (6,531) 476 |
1,771 283 |
|
| (6,055) 212,570 |
2,054 210,516 |
|
| 206,515 | 212,570 |
All the charitable company’s activities derived from continuing operations during the above two financial years.
Do Well Foundation Limited 7
Principal accounting policies 31 December 2022
| Notes | 2022 £ |
2021 £ |
|---|---|---|
| Fixed assets Investments 5 Current assets Debtors Cash at bank and in hand 7 Creditors: amounts falling due within one year 8 Net current assets Total assets The funds of the charity: Called up share capital 9 Unrestricted funds . General fund 10 |
167,306 26,561 19,378 |
167,306 27,575 22,961 |
| 45,939 (6,630) |
50,536 (5,172) |
|
| 39,309 | 45,364 | |
| 206,615 | 212,670 | |
| 100 206,515 |
100 212,570 |
|
| 206,615 | 212,670 |
For the year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act (“the Act”) relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the financial year in question in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
Approved by the trustees of Do Well Foundation Limited, Company Registration Number 4131417 (England and Wales) and signed on their behalf by:
Do Well Foundation Limited 8
Principal accounting policies 31 December 2022
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.
Basis of preparation
These financial statements have been prepared for the year to 31 December 2022.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
The preparation of financial statements requires the use of certain critical accounting estimates and judgements. It also requires the trustees to exercise judgement in the process of applying accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the trustees’ best knowledge of the amount, event or actions, actual results may differ from those estimates.
Areas requiring the use of estimates and critical judgements that may impact on the charity’s financial activities and financial position include:
-
Investment properties are required to be carried at market value at each balance sheet date which is estimated by the trustees using publicly available information;
-
Rental income is recognised at an amount that represents market value. The market value is estimated by the trustees.
Do Well Foundation Limited 9
Principal accounting policies 31 December 2022
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.
The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. With regard to future accounting periods, the most significant area that affects the carrying value of the assets held by the charity is the valuation of the investment property, which is dependent on fluctuations in the UK property market.
Income
Income is recognised in the year in which receipt is probable, the charity is entitled to the resources and the amount can be measured with reasonable certainty.
Gifts in kinds are measured at their estimated fair value to the charitable company.
Income from investments represents rental income from the investment property and interest on bank deposits.
Expenditure
Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.
Grants and donations are unconditional grants to other charities and are made wholly at the discretion of the trustees.
Expenditure on raising funds comprises the costs of maintaining the investment property.
Governance costs comprise the costs of the charitable company’s organisational procedures and the necessary legal procedures for compliance with statutory requirements and are included within charitable activities.
Fund accounting
Unrestricted general funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charitable objectives.
Investment properties
Investment properties are included at an open market valuation at the balance sheet date as estimated by the trustees.
Do Well Foundation Limited 10
Principal accounting policies 31 December 2022
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the balance sheet date.
Current asset investments
Current asset investments are shares and securities held by the charity for sale and are initially recognised at fair value. Gains or losses on subsequent sale are included in the statement of financial activities.
Creditors
Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount the charity anticipates it will pay to settle the debt.
Foreign currencies
Transactions undertaken in foreign currency during the period are translated into sterling at the spot rate of exchange on the day of the transaction. Exchange differences are taken to the statement of financial activities.
Foreign exchange gains (or losses) arising on the translation of monetary assets and liabilities at the period end date are taken to the statement of financial activities.
Do Well Foundation Limited 11
Notes to the financial statements 31 December 2022
1 Income from donations
Donations consist of cash and equity investments donated to the charitable company.
2 Expenditure on raising funds
This relates to expenditure associated with the charity’s investment property.
3 Expenditure on charitable activities
| Expenditure on charitable activities | ||
|---|---|---|
| 2022 £ |
2021 £ |
|
| Donations Governance costs: . Legal and professional fees . Accountancy fees . Tax services . Company secretarial fees |
24,988 - 5,528 3,336 390 |
18,161 106 5,400 5,520 372 |
| 34,242 | 29,559 |
4 Trustees’ remuneration
The charity has no employees. The trustees comprise the key management personnel.
No trustee received any remuneration in respect of their services nor reimbursement of expenses during the year (2021 - £nil).
5 Fixed asset investments
| Fixed asset investments | |
|---|---|
| Investment property £ |
|
| Market value at 1 January2022 and at December 2022 | 167,306 |
| Market value at 1 January 2021 and at December 2021 | 167,306 |
The investment property is held at fair value as valued by the trustees. The trustees are satisfied that this valuation equates to the current fair value.
6 Taxation
Do Well Foundation Limited is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
7 Debtors
| 2022 £ |
2021 £ |
|
|---|---|---|
| Other debtors | 26,561 | 22,961 |
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Notes to the financial statements 31 December 2022 8 Creditors: amounts falling due within one year
| 9 10 |
2022 £ |
2021 £ |
|
|---|---|---|---|
| Accruals | 6,630 | 5,172 | |
| Called up share capital | 2022 £ |
2021 £ |
|
| Ordinaryshares of £1 each | 100 | 100 | |
| Reconciliation of movements in shareholder’s funds | 2022 £ |
2021 £ |
|
| Equity funds Net movement in funds in the financial year Opening shareholder’s funds at 1 January Closingshareholder’s funds at 31 December |
(6,055) 212,670 |
2,054 210,616 |
|
| 206,615 | 212,670 |
11 Ultimate holding company and control
The charitable company is wholly owned by the Delaware Do Well Foundation, a US tax exempt charitable organisation, and was founded to carry out the work of that entity in the UK.
The activities of the charitable company are controlled by the trustees of the charitable company.
There were no transactions with the holding company during the year.
12 Related party transactions
During the year the charitable company’s investment property was let to relatives of Jonathan Barton, a trustee of the Do Well Foundation at an agreed annual rental of £3,600 per year. No payment of rent was made by the tenant during 2022 (2021 – £nil). Jonathan Barton has agreed to pay the rent due on behalf of his relative and paid £nil in year (2021 - £nil).
At 31 December 2022 amounts outstanding from Jonathan Barton were £18,800 (2021 – £15,200) relating to rent and £7,761 (2021 - £7,761) relating to rates and council tax payments for the investment property currently occupied by Jonathan Barton’s relative. These amounts relate to both the current year and prior years.
During the year donations of £23,186 (2021 - £27,805) were made by Jonathan Barton and Amanda Foreman to the Do Well Foundation.
The charity donated £22,488 to the House of SpeakEasy Foundation Inc, a not-for-profit institution founded in the United States (2021 - £18,161). The charity was co-founded by Amanda Foreman. Jonathan Barton and Amanda Foreman are both directors of the House of SpeakEasy.
Do Well Foundation Limited 13