**Charity No: 1087053 Company No: 04228843** 

**FRIENDS PROVIDENT CHARITABLE FOUNDATION (A COMPANY LIMITED BY GUARANTEE)** 

**REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 30 SEPTEMBER 2024** 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

**REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|I N D E X|P A G E|
|---|---|
|REFERENCE AND ADMINISTRATIVE INFORMATION|3-4|
|REPORT OF THE TRUSTEES||
|CHAIR’S INTRODUCTION|5-6|
|ANNUAL REPORT|7-29|
|INDEPENDENT AUDITOR’S REPORT|30-33|
|STATEMENT OF FINANCIAL ACTIVITIES|34|
|BALANCE SHEET|35|
|STATEMENT OF CASH FLOWS|36|
|NOTES TO THE ACCOUNTS|37-49|
|APPENDICES||
|APPENDIX A: GRANTS MADE IN 2023/24|50-59|
|APPENDIX B: SUMMARY OF INVESTMENTS|60|



2 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Reference and Administration Information** 

Charity Name: Friends Provident Charitable Foundation Other names by which the charity is Friends Provident Foundation known: 

Charity Number: 

1087053 (England & Wales) 

Company Number 

4228843 (England & Wales) 

## **REGISTERED ADDRESS** 

15 Priory Street York YO1 6ET 

## **BOARD OF TRUSTEES** 

Members: 

Abraham Baldry Paul Blyth Ann Don Bosco Joanna Elson (Vice Chair) (to 31 December 2023) Kathleen Kelly Stephanie Maier Stephen Muers (Chair) Aphra Sklair (to 31 March 2024) Caroline Taylor (Vice Chair, from 5 July 2024) 

Associate Trustee:                                         Simin Wadiwala 

## **KEY MANAGEMENT PERSONNEL** 

Foundation Director 

Danielle Walker Palmour 

Head of Funding Strategy Investment Engagement Manager Social Investment Portfolio Manager 

Finance and Operations Manager Communications Manager 

Abigail Gibson Charlie Crossley James Anthony (from January 2024) 

Kate Kendall 

Jake Furby (to January 2024) 

3 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

**REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Reference and Administration Information** 

## **PRINCIPAL ADVISORS** 

Principal Bankers: CAF BANK Limited Triodos Bank NV PO Box 289 Deanery Road West Malling Bristol Kent BS1 5AS ME19 4TA Auditor: Buzzacott LLP 130 Wood Street London EC2V 6DL Investment Advisor: Redington (from June 2024) 1 Angel Court London EC2R 7HJ Peter Jones, Independent Advisor (to June 2024) Solicitors: Wrigley’s Solicitors LLP 3[rd] Floor, 3 Wellington Place Leeds LS1 4AP Investment Managers: Columbia Threadneedle Cazenove Capital Investments 1 London Wall Place 78 Cannon Street London London EC2Y 5AU EC4N 6AG Snowball Impact Management Ltd 20 Little Britain London EC1A 7DH 

4 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

**REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **CHAIR’S INTRODUCTION** 

Twenty years ago in 2004, Trustees of the newly minted Friends Provident Charitable Foundation were preparing for an event to mark the public launch of the charity. They had commissioned a book of essays from across the political, economic and philosophical spectrum to explore the moral, social and cultural understanding of the role of money and financial systems in our society – published as _The Right Use of Money_ (Policy Press, 2004). The event was held in the Queen Elizabeth II Conference Centre in London and was attended by a wide range of shareholders, stakeholders and peers. 

2024 finds Trustees and staff preparing for another event in London; to celebrate the 20[th] anniversary of the Foundation and to take stock of where we have been. Much has changed. We have grown from one part-time member of staff to nine people based in York and London. We have shifted our focus from financial inclusion to more widely addressing the nature of our economy and how to make it fairer and more sustainable. We are now not just an ethical investor but an active, challenging one with ambitions to carry on the original intention of the founders of Friends Provident Foundation as an innovator in financial services. 

However, there are also some continuities across those twenty years. We wish to address unfairness and inequality in the economic system. We continue to aim to work collaboratively with partners from all sectors to bring about change. And we continue to ask big questions despite our small size. 

This year, in an attempt to maximise the impact of our grant funding, the Foundation has launched a refreshed programme organised around two central themes: **mainstreaming new economic ideas** and **transforming financial systems.** Alongside this we will have one supporting theme continuing our role as supporter of the **wider movement infrastructure** . The refreshed programme will guide our funding for the next three years. The programme continues to innovate through its focus on minimising wasteful application processes and costs for grant-seekers and embedding a learning framework and approach from the outset. 

In 2020, alongside Joffe Trust and Blagrave Trust, we launched a process called the ‘environmental, social and governance (ESG) investing olympics’. We did this because we believe the purpose of investment should be to direct capital to socially, environmentally and economically useful activity, and to help address societal challenges; rather than to focus on short-term financial returns. We created an open competition and a selection process including a public event attended by over 100 people who could question and assess the proposals for meeting our shared mandate. Cazenove Capital, part of Schroders group, won the competition and this led to Cazenove Capital’s Sustainable Growth Fund, launched in early 2021. Three years on, we have been reflecting on progress against our objectives and published an update on this earlier in the year, in keeping with the principle of transparency we established from the start. 

5 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

Looking at the Foundation itself, this year we were sad to lose long-standing Trustees Joanna Elson and Aphra Sklair and our Communications Manager Jake Furby: we are grateful for their contributions and they are much missed. We also welcomed new members of the team: James Anthony as Social Investment Portfolio Manager, Ashanti Akabusi who is working with us to manage the communications function and Dilys Winterkorn and Lotte Thelen as independent members of our Investment Committee. We also created a new role of Associate Trustee to bring a wider diversity of experience to our board and make Trusteeship more accessible. Simin Wadiwala has been a fantastic first holder of this position. 

In August 2024, the York staff team moved our office from Blake House in central York to new premises in a community building at the Priory Street Centre, also located centrally. We are delighted with a new space that is fully accessible to all visitors. 

2025 will undoubtedly see more of both continuity of mission and change in how we get there, and we look forward to collaborating with partners old and new as we continue the journey. 

Stephen Muers 

6 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **OUR PURPOSE** 

Friends Provident Foundation is an independent charity that makes grants and uses its endowment towards a fair and sustainable economic system that serves people and planet. We connect, fund, support and invest in new thinking to shape a future economy that works for all. 

We’re a catalyst for wider change, making an impact through continuous experimentation and shared learning. We do all we can to embody the change we want to see. We invest in great social enterprises and use our money in line with our values. 

We will continue to fund new thinking, connect new ideas, invest our capital in line with our aims and values and create better systems. 

This annual report focuses on our main mission which is to create a fair and sustainable economy. 

For more information, please visit our website at www.friendsprovidentfoundation.org. 

## **DIVERSITY, EQUITY AND INCLUSION** 

Our Diversity, Equity and Inclusion (DEI) plan underscores our commitment to transforming the economic system into one that is fair and sustainable. Integral to this is addressing the structural inequities rooted in systemic discrimination. The Foundation sees that a commitment to diversity and inclusion must be central to our efforts to build a fair economy. This is about _how_ we do all that we do: including staff and Trustee recruitment and management; our Investment management and engagement; grantmaking; communications and engagement with the wider community. We are aware of the power dynamics of our position as a holder and distributor of wealth. 

This year our DEI working group was integrated into our Trustees’ Resources Committee to ensure accountability for this area of our work. We have made progress in some areas but still have improvements to make in others. We see this as a continual process that will never be fully complete. Our rating for diversity in the Foundation Practice Rating this year was B, showing that there is still room for improvement. 

## **Key Components:** 

Internal Operations: 

- Recruitment practices emphasise fairness, not asking for unnecessary qualifications or previous salaries, anonymised applications and transparent salary disclosures. 

- Creation of an Associate Trustee role to diversify access to strategic decisionmaking. 

7 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

- Monitoring and publishing staff and Trustee diversity statistics to promote accountability. 

Grant-making: 

- This year equity and social justice have been central funding priorities with strands focused on marginalised voices and avoiding replication of systemic inequities. 

- We introduced a small grants programme to support new entrants into the sector. 

- Practices include providing pre-application support, flexible payment structures and collecting data to improve accessibility and fairness. 

## Investment Management: 

- The Foundation aligns its investments with social and environmental goals, favouring companies that uphold fair pay, decent work and management diversity. 

- Active shareholder engagement to promote equity-focused policies. 

## Communications and Accessibility: 

- We are working towards the Web Content Accessibility Guidelines version 2.1 AA standard 

Future Goals (2024 and beyond): 

- Increased training and resources for staff and trustees. 

- Further improvements in recruitment diversity, website accessibility and application processes. 

- Exploration of paid trustee positions and expansion of support for marginalised communities. 

By embedding equity into its strategy, operations and grant-making, the Foundation seeks to challenge systemic inequalities and promote a more inclusive and sustainable economic system. 

8 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **CLIMATE EMERGENCY DECLARATION** 

This year, as part of our business planning process, we undertook to look again at our commitment to addressing the climate emergency in our grants, operations and investments. As a mechanism, we joined the Earth Funding Lab programme under the auspices of the Environmental Funders Network. We committed to joining two of the three workstreams – ‘tax and nature’ and ‘beyond ESG’. 

The beyond ESG workstream saw us collaborate with other foundations to develop ideas that could contribute to systemic, positive changes in the investment practices of foundations. The key potential interventions emerging are: increasing transparency and accountability of foundation investments; accelerating peer learning between foundations on their investments; and identifying legitimate positive impactful investments. 

The tax and nature workstream has undertaken an exploration of the ways in which taxes can be used in the service of nature. It has made many connections with key players both within tax campaigning organisations and environmental organisations. A joint pot of £40,000 has been made available to fund initial work and we are currently exploring a collaboration with the Economic Change Unit (ECU) and Tax Justice UK on the issues oftax and nature in the first half of 2025. 

It is worth noting that our work through this workstream has already been influential on the tax sector in terms of supporting them to consider their work through the lens of the nature and climate crises. 

This engaged three members of staff over the course of the year and expanded our knowledge of colleague-funders committed to the deep and systemic change required to address climate change as a funder. 

The Foundation commissioned a sustainability audit of our new website as part of the deployment, ensuring that we are monitoring and measuring the carbon footprint of our main means of communication going forward. A key element of this is a reduction in the number of pages and a simplification of the structure of the site. 

We are also planning Carbon Literacy training sessions for staff and trustees in the next financial year. 

9 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **PROGRESS TOWARDS OUR GOALS IN 2023-24** 

Each year, staff and Trustees set objectives for the year, reflected in our Business Plan. This guides our priorities and expenditure, and creates momentum for our overarching goal of continuous improvement. Last year we had the following aims and this sets out how well we have performed against them. 

1. To increase our impact by bringing our grants and investment strategies into closer alignment. 

   - _Fully achieved_ 

2. To ensure our grant giving is as efficient and effective as possible within the parameters of our budget and size as a funder. 

   - _Fully achieved_ 

3. To review, communicate and implement the FPF investment policy and approach to align capital with mission. 

   - _Fully achieved_ 

4. To communicate more effectively by reviewing and reframing our external communications and digital outputs. 

   - _Partially achieved_ 

5. To make the Foundation’s salary and benefits structure more reflective of our mission for a fair and sustainable economic system, reflecting operational and human needs. 

   - _Fully achieved_ 

6. To restructure and develop internal systems to support Foundation operations. 

   - _Partially achieved_ 

7. To refocus our climate emergency declaration in relation to operations, investment and other activities. 

   - _Fully achieved_ 

8. To continue to evolve our governance to enable the Foundation to be responsive and reflective of the external context. 

   - _Fully achieved_ 

10 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

**REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **GRANTS REPORT** 

## **Introduction** 

Grantmaking has been an important part of the Foundation’s toolkit for economic change for the past 20 years and, over 2024, we have been reflecting on and developing our grantmaking strategy both in terms of what we fund and how we do so. 

Over this time our grantmaking programme has evolved: from an initial focus on the right use of money; to financial inclusion; then shifting to financial resilience; and more recently a focus on systemic economic change. After the 2008 crash, we helped support a range of ideas about how economic systems change could be achieved. We also helped to establish a number of increasingly influential organisations working in new economy space. 

During 2023-24 the need for change was as urgent as ever. The financial system firmly re-asserted itself post-crash and climate breakdown and inequality have worsened. The UK is not short of ideas on how to change this and we have an active, creative new economy movement. As we look forward, therefore, we seek to turn our attention to what is stopping these ideas becoming a reality. 

This year has been about looking back to move forwards – building on the learning and experience we’ve gained from 20 years of grantmaking to develop a strategy for a more focused programme of work and better-quality grantmaking practice for the future. 

## **A Look Back at 2023/24** 

2024 was the final year of our ‘4D Economy’ programme of grantmaking. Full details of grants made in the year are provided in Appendix 1. 

Recognising the ongoing inflationary challenges facing our grant-holders, cost of living increases were made for long-term grants, maintaining the real value of our grants. A major strand of work this year has been the evolution of the grants strategy, involving a deep dive into learning from previous grants, consultation with stakeholders and reflecting on best grant-making practice. 

This year has also seen the development of our learning strategy and the recruitment of a new learning partner to support us over the next three years and ensure that we are maximising the insights and intelligence to be gained from all of our work. 

11 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Key Trends in Grant-making 2023-24:** 

## **Grants Made:** 

19 grants to 18 organisations. 12 (66%) were for organisations we haven’t previously funded. As at the end of the financial year, there were 62 live grants in the portfolio. 

12 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

Grants were made under two main thematic strands under the 4D Economy Programme. 

## **The 4D Economy Programme** 

The grants programme funded organisations and projects that supported our vision of a fair, sustainable economy, that is Diversified, Decarbonised, Democratised and Decentralised. 

Funding was granted under two thematic strands: 

- **Supporting ‘outsider voices’ in pushing for a fair transition to a 4D economy** - funding projects and programmes that support the number of transitions needed to create a 4D economy in a fair way, i.e. not at the expense of already disadvantaged geographies, groups or communities. 

- **Supporting a strong and diverse movement for new economic thinking and acting in the UK** - funding to support a movement that challenges and seeks alternatives to the current dominant ‘neo-liberal’ economic model. 

## **Types of funding** 

_Core Funding_ – funding in support of an organisation’s central and general costs. Fully flexible funding offered to organisations whose mission and strategy is fully aligned with that of the Foundation. 

_Project Funding_ – funding for specific activity following an application. 

_Small Grants_ – a new strand developed to try to enable more new entrants to our programme. Focused on new organisations or new ideas with a particular focus on under-represented groups. 

13 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Grant Value** 

The average grant value was £43,684. The high level of grants made under the small grants programme skewed the average – when these are removed, the average is £99,651. 

## **Applications Received and Success Rates** 

The programme received 238 applications over the year, via the open application form on our website. Of these 8% were invited to stage two. This mostly reflects a very high number of ineligible applications, for areas not covered by the programme – which accounted for 71% of applications received. When we remove these from the analysis, the conversion rate from stage one to stage two increases to 26%.  At stage two, where applications have been invited on the basis of fit, the success rate increases to 60%. 

## **Grant Increases** 

Given ongoing inflationary pressures, we adopted a new policy of automatic grant increases for grant-holders with longer-term grants (1 year plus, with more than one year remaining) who had not built sufficient allowance for inflation into their budgets or who had not already been granted an increase in year. As a result, grants worth a total of £58,632 were made to 17 organisations. 

In addition, 3 organisations requested more significant grant increases to allow them to meet unexpected costs or new additional opportunities, worth a total of £85,000. 

14 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Looking Ahead** 

At the very end of the year, the 4D Economy Programme was closed and the new **Realising a New Econom** y programme was launched. A significant amount of staff time was spent over the year developing and refining the new programme, which will roll out over 2024-25. The new programme seeks to bring about a number of changes in terms of grants focus and grant-making practice including: 

- Three new programme strands – Shifting Cultural Perceptions, Transforming Financial Systems and New Economy Infrastructure (including a new small grants programme) to be opened at different points over 2024-25. 

- A shift to a principle of unrestricted funding as a default (with exceptions for particular situations). 

- The development of a new application process to be trialed over 2025. This aims to shift the burden of the work from the applicant to the Foundation grants team as far as possible. Applications will be created through conversation, with the bulk of the writing at stage one being carried out by Foundation staff. 

- More contact pre-application, through a new ‘say hello’ function on our website (with contact being possible by writing, voice note or video), to ensure that people are only spending time applying if their project is a reasonable fit. 

Our hope is that these changes will reduce our unsuccessful application rates, create a more inclusive and less extractive approach and will give applicants a faster sense of the outcome of an approach. 

15 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

16 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **INVESTMENTS REPORT** 

## **Introduction** 

We believe the purpose of investment should be to direct capital to socially and environmentally useful activity, to create social as well as economic value and to help address societal challenges, rather than to focus on short-term financial returns. As a participant in the financial system through our endowment, we have an opportunity to promote change that serves our mission. As such, we are a long-term investor and steward of our investee companies and funds. Our approach includes investing in positive social & environmental impact, aligned to our mission, as well as stewarding our investee companies and funds, using engagement to reduce negative impacts and increase alignment between our investments and our mission. This approach allows us to balance generating sufficient returns to fund our grant-making and operations, while utilising the endowment to further our mission. 

Investing our endowment involves making decisions on what to invest in, what not to invest in, how we exercise our stewardship responsibilities and how we engage with the financial system. We believe these decisions should contribute to our aim of building an economy that is sustainable and fair. 

Our Investment Principles and Policy is the key document driving our investment work. 

Most of our endowment is invested through our investment managers: Columbia Threadneedle Investments, Cazenove Capital, and Snowball Impact Investments. Our investment adviser is Redington. 

Our investments are summarised below: 

## **Financial Investments** 

|**Investment**|**Investment manager**|**Investment**<br>**approach1**|
|---|---|---|
|Multiple funds|Columbia Threadneedle<br>Investments|Responsible|
|Cazenove Sustainable Growth Fund|Cazenove Capital|Sustainable|
|Snowball Impact Investment LP Fund*|Snowball Impact<br>Management Ltd|Impact|



* We are a founding investor in the Snowball Impact Investment LP Fund. 

> 1 This is our view of the investment approach across the “spectrum of capital”, first developed by Bridges Fund Management. See more information here: https://resonance.ltd.uk/for-investors/spectrum-of-capital 

17 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

We make direct investments in public companies via a Hargreaves Lansdown account, for the purpose of shareholder influencing. 

## **Social Investments** 

|**Social Investments**||
|---|---|
|**Investment**|**Description**|
|Awel Cooperative|Renewable energy project, based in Wales,<br>operating two wind turbines, with the aim of<br>tackling climate change and enabling local<br>regeneration.|
|Egni Cooperative|Renewable energy project, linked to Awel<br>Cooperative, installing rooftop solar panels in<br>schools, community buildings & businesses.|
|Energy Garden|Enterprise developing community-owned solar<br>projects and gardens in London, alongside<br>educational programmes to promote their social<br>and environmental benefits.|
|Ethex Investment Club|An online platform connecting investors with<br>impactful social enterprises and community<br>projects and raising the finance needed by these<br>organisations to achieve their aims.|
|People Powered Retrofit|Enterprise providing advice, training and<br>software development linked to retrofitting<br>households to combat climate change.|
|Riding Sunbeams|Enterprise aiming to provide directly connected<br>renewable energyto the rail network.|
|Snowball Impact Management Ltd|Company managing the Snowball Impact<br>Investment LP fund, which targets investments<br>with a positive impact for people and the planet,<br>whilstgeneratingsound financial returns.|
|Wyre Catchment CIC|Project to implement natural flood management<br>works in the upper River Wyre catchment, with<br>the aim of reducing flooding & flood risk to<br>business & communities residing in the<br>catchment.|



18 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

We also make social investments.[2] A description of our current and prior social investments can be found on our website. 

Further information about our Investment Committee and staff team working on investments can be found on our website. 

Reflecting on the Foundation reaching its 20[th] anniversary, there have been several highlights relating to investment: 

- We committed to our first social investment in 2007 – a subordinated loan to Charity Bank. 

- In 2010, we became an investor in the world’s first social impact bond, aiming to reduce recidivism in Peterborough. 

- Being one of the first UK foundations to employ an Investment Engagement Manager in 2016. 

- Becoming a founding investor in the Snowball Impact Investment Fund. 

- Co-leading the ‘ESG investing olympics’ in 2020, an open, competitive tender for a £33.5 million mandate. 

- Contributing to engagement successes, such as major utility companies committing to the just transition. 

## **A Look Back at 2023-24:** 

A lot happened for the Foundation in the 2023-24 financial year, but here’s a few of the highlights: 

- We were part of a group of investors, co-ordinated by grant-holder, ShareAction, that co-filed a shareholder resolution at Barclays on their financing of new oil and gas infrastructure. The group eventually decided to withdraw the resolution after **engagement with the bank around its fossil fuel policy.** 

- We supported an engagement led by Royal London Asset Management and Border to Coast Pension Fund encouraging UK banks to commit to a just transition to net zero. This included producing **investor expectations for the banking sector on the just transition.** 

- We worked with ShareAction to engage companies to support workplace equality in the UK. We attended the AGM of Sainsbury’s to ask about the real living wage and Mitie to discuss their ethnicity pay gap reporting. 

> 2 We define social investment as where we use money with a view to both: 

> - achieving our purposes directly through the investment; and - making a financial return. 

19 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

- CCLA hosted a webinar, with the support of the University of Nottingham’s Rights Lab, consultant Social Governance and us, on the role for investors in promoting labour rights in the adult social care sector. Our focus on this area continues. 

- In January 2024, James Anthony joined as the Foundation’s Social Investment Portfolio Manager, a new role designed to design and lead the Foundation’s social and impact investment work. 

- As part of our ongoing effort to be transparent and share knowledge about our investments, **we reflected on the Cazenove Sustainable Growth fund** , which was seeded after the ‘ESG investing olympics’ that we organised. We discussed progress in ESG integration, impact and influencing wider investment practices. 

- We **appointed Redington** as our new investment adviser after a competitive tender process. Redington's mission-oriented approach and potential to influence the wider investment ecosystem made them our preferred choice for guiding our investment strategy. 

- Lotte Thelen and Dilys Winterkorn both joined as co-opted members of our Investment Committee. We recruited these committee members, via direct approach, to further add skills and experience to the committee, rather than by an open selection process. In the future, we will consider more open approaches. 

- We supported the development of the Charity Investment Governance Principles (CIGP) for trustees. The CIGP will create a comprehensive framework to guide charity investment decision-making. 

## **Looking Ahead** 

Looking ahead to 2024-25, there is plenty on our agendas. 

We plan to update our Investment Principles and Policy document for the first time since 2019. We will do this in a participatory manner, including seeking feedback from a range of stakeholders, trying to make our investment approach accessible. 

We also plan to work with peer investors to consider options to challenge and encourage the investment industry to do more on mission-aligned investing. 

A new social investment strategy will be launched and a host of new social investments will be announced. 

There will be challenges ahead in delivering our work. Key overarching trends of the climate emergency and inequality are potentially worsening. The economic environment continues to look uncertain. A new policy landscape brings opportunity for our work but 

20 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

shifting policy also brings challenges. Social investment opportunities are plentiful but fundraising remains a key issue for investees. 

As we reflect on two decades of purposeful investing, we will remain committed to using all our endowment, including our investments, to contribute to a fair and sustainable economy. 

## **COMMUNICATIONS REPORT** 

## **Introduction** 

Effective communication is central to the Foundation’s mission of creating a fair, sustainable and resilient economic system. It allows us to amplify our impact, engage diverse audiences and foster meaningful conversations about systemic change. This year has been one of transformation and reflection, marked by significant milestones and transitions within our communications function. 

We bid farewell to our Communications Manager, Jake Furby, whose contributions have been invaluable to the Foundation’s success. In their stead, we warmly welcomed Ashanti Akabusi, who joined us in the summer and has brought fresh energy and perspective to our communications work. 

This year, 2024, has been a momentous one, with highlights including the preparation for our 20th Anniversary celebrations, the launch of our revamped website and preparations to introduce our new grants programme. It has been a year of looking back at two decades of impactful work, learning from our journey and setting the stage for the future. Our involvement in the Foundation Practice Rating initiative further underscored our commitment to diversity, accountability and transparency and sector-wide improvement. 

In a rapidly evolving digital landscape, we’ve had to reassess our social media strategy to ensure alignment with our values while continuing to engage effectively with our audiences. This year’s activities have challenged us to reflect, champion our causes and celebrate our achievements - all while staying true to the Foundation’s mission of driving systemic change. 

The communications function remains at the heart of these efforts, acting as the bridge between our work and the wider world. It enables us to share our learnings, advocate for change and inspire others to join us in our vision for a better future. 

21 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **A Look Back at 2023-24** 

- This year marked several pivotal moments for the Foundation, both in terms of internal transitions and external initiatives. 

- A significant achievement this year was the relaunch of our website. This comprehensive project involved reimagining how we communicate our mission, revisiting content and copy, and enhancing the user experience. The result is a platform that better reflects our values and makes our work more accessible to our audience. 

- In anticipation of our 20th Anniversary celebration, we engaged in extensive planning to honour two decades of working towards a fair and sustainable economic system that serves both people and planet. This milestone allowed us to reflect on our mission and to share stories of our impact over the years. 

- As leaders in the Foundation Practice Rating initiative, we managed event logistics, distributed the report and key findings and spearheaded the ‘Three Commitments’ campaign. This initiative encouraged foundations to commit to meaningful changes, setting an example for diversity, accountability and transparency in the grant-making sector. Our media relations efforts resulted in coverage across various sector publications, amplifying the Foundation Practice Rating’s reach. 

- Preparing for the launch of our new grants programme, which will roll out over 2024-25, was another major focus. Communications played a critical role in crafting messaging and building anticipation for this initiative. 

- We also celebrated the addition of James Anthony as our new Social Investment Portfolio Manager. Through thoughtful communications, we highlighted James’s role and contributions to our mission. 

## **Looking Ahead:** 

The coming year promises new opportunities to enhance and refine our communications strategy, ensuring it aligns with our mission and continues to drive impact. A few of such initiatives are below: 

- With significant changes in the social media landscape, we will critically assess our use of platforms such as X (formerly Twitter). This evaluation will help us determine where best to focus our efforts, ensuring our presence aligns with our values and engages our audience effectively. 

22 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

- A key focus for 2025 will be the creation and implementation of a new communications strategy. This strategy will build on our learnings from 2024, setting clear goals and tactics to enhance our storytelling, audience engagement and impact measurement. By aligning our communications with the Foundation’s overarching goals, we aim to inspire action and foster deeper connections with our stakeholders. 

As we move forward, our communications function will continue to be a cornerstone of our work, driving awareness, engagement and impact. Together, we will champion systemic change and celebrate the transformative power of collaboration. 

## **OPERATIONS REPORT** 

This year we have streamlined our software to enhance effectiveness and team-working. After eight years at Blake House, the Foundation moved offices to Priory Street, and we are pleased to now have an accessible office and meeting place. 

## **GOALS FOR 2024/25** 

In the coming year, we have another ambitious set of organisational goals for both staff and Trustees, the aim of which are to ensure the most effective delivery of our mission: 

- To continue to develop our key strategies to progress alignment and impact. 

- To review how the outsourcing of the Communications function has operated for the Foundation in 2024. 

- To implement the review of the organisational salary and benefits structure conducted in 2024. 

- To restructure and develop internal systems to support Foundation operations and communications. 

- To develop our governance and support of the refreshed Trustee board to enable Trustees to fulfil their fiduciary duties and model our mission. 

- To reassess and reduce our carbon impacts and contributions to biodiversity loss in our operations, investment portfolios and through grant-funded activities. 

- To research and consider if other income sources – donors, other funders etc – might contribute toward the achievement of our mission. 

23 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

**REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **POLICIES, GOVERNANCE AND OPERATIONAL FRAMEWORK** 

## **Management and Advice** 

During the year, our investment managers were Columbia Threadneedle Investments, Cazenove Capital and Snowball Impact Management Limited. An investment policy has been agreed by Trustees, with investment objectives shared with the investment managers.  The managers provide regular reports and are invited to Investment Committee meetings to discuss asset allocation and investment performance. 

To support Foundation staff and Trustees in their commitment to the responsible use of its assets and as a means of sharing our practice, the Foundation continued as a member of the Charities Responsible Investment Network. 

Peter Jones, an independent investment advisor, continued to provide general investment advice to the Trustees until June 2024.  Redington were then appointed to this role. Trustees instruct the investment managers to reflect the advice received in their management of the Foundation’s assets. 

Wrigley’s Solicitors LLP was retained to provide legal advice on direct investment documentation and on our general charitable activities. 

## **Climate Risk Management in Our Investment Portfolio** 

Trustees are mindful of a wide range of experts who consider that climate risk is arguably the biggest risk to economies today. They understand that climate-related systemic risk could have a highly negative impact not only on the Foundation’s assets but also on its core mission and stakeholders through disruption of the financial system, with implications for jobs, incomes and inequality. They seek, therefore, to do whatever they reasonably can to progress a rapid transition to a low-carbon economy and to safeguard the Foundation’s capital. 

## **Resources** 

Some years ago Trustees took the decision that the Foundation can spend its capital as well as its income in pursuit of our mission. This has been at a reduced rate over the past three years, following the decision to reduce grant expenditure to allow for more missiondriven investment. They actively review both strategy and resources to manage the risk of this approach. The current rate of spend is £2 million per annum. 

Trustees are prepared to consider accepting a higher level of risk or a lower level of financial return than the market norm, especially for those social investments that are 

24 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

closely aligned with the Foundation’s specific programme aims. For investments that generate broader positive social impact and meet the Foundation’s general charitable objectives, but without specific alignment with programme aims, Trustees might look for levels of risk and return that are closer to the benchmark for that asset class. 

## **Risk Management** 

The Trustees are responsible for overseeing the effective management of the Foundation and for safeguarding its assets. Risk management is an ongoing activity involving all Trustees and is reviewed by Trustees at least annually. 

During the year, the Trustees have reviewed the risks facing the Foundation covering governance and management issues, financial, regulatory, legal and operational risks. Mitigating actions have been taken regarding the major risks that have been identified, namely: 

- Investment risk with loss of income impacting operations and mission: Trustees tolerate this risk whilst closely monitoring the markets and the Foundation’s investment portfolios. 

- Staff sickness or absence risk arising from having a small team: Plans are in place to mitigate this risk. 

- Mission risk – having an ambitious mission with limited resources: Trustees tolerate this risk. 

- Reputational risk, such as poor publicity arising from the actions of organisations we fund or inaccurate information on our website: Trustees mitigate and manage this risk. 

- Financial risk relating to internal operations and the management of resources: Trustees mitigate and manage this risk with staff and external advisors. 

Each risk identified was assessed in terms of the potential impact and likelihood of occurrence and the Trustees confirm that they believe that, for each of these risks, appropriate controls are in place to mitigate the significant risks to an acceptable degree. 

## **Reserves and Going Concern** 

The total charity funds at the year-end of £24.26m (2023: £22.94m) were held in the endowment fund. The capital comprising the Foundation’s expendable endowment is the principal source of income to meet the Foundation’s objectives and running costs. The Foundation’s free unrestricted reserves are expected to be approximately £23 million. 

25 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

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

In 2016, Trustees took the strategic decision to expend capital from the endowment in pursuit of our mission. In order to ensure there are adequate funds to support a potentially higher level of expenditure, the Foundation adopted a policy to ‘draw down’ a sum from the endowment each year to match the difference between our projected income and our projected expenditure as set by Trustees in the annual business planning process. 

In 2021, Trustees decided to slow down the reduction of the capital base.  This was to enable a rebalance of internal resources to allow greater focus on investment engagement and impact. 

In 2025, Trustees will be reviewing the use of capital to ensure that the charity’s commitment to maximizing its impact through grant-making and investment activity continues, whilst holding an appropriate level of reserves to ensure financial sustainability and operational stability. 

Trustees also recognise that Foundation income from investments can fall. To mitigate this risk, it is the Trustees’ intention to hold three to six months’ operating costs, which includes grant payments, as a cash reserve; estimated at £700,000 to £1,400,000. This is held as part of Foundation funds and will not be expended although Trustees do not consider it necessary to have a separate reserves account. 

The reserves policy was last reviewed and approved by the Trustees in September 2024. Trustees will continue to review the level of reserves taking into consideration the cost base of the Foundation. 

## **Financial Review and Performance** 

The Foundation’s income is derived from investment performance. Total income for the year ended 30 September 2024 was £996,642 (2023: £722,659), mainly attributable to dividends and interest received from the principal investments – open-ended investment trusts with underlying investments in equities and corporate bonds. Two donations and grant funding for the Foundation Rating Project, being coordinated by the Foundation, has added to the income this year. The total expenditure for the year was £2,200,525 (2023: £2,309,335). Of this, grant commitments amounted to £1,045,283 (2023: £1,335,505) and other expenditure was £1,155,242 (2023: £973,830). Net expenditure for the year was £1,203,883 (2023: £1,586,676) before investment gains of £2,526,450 (2023: gains of £641,780), leading to net income of £1,322,567 (2023: net expenditure of £944,896). 

As per our investment policy, Trustees expect our mainstream portfolio to produce competitive market returns, as well as reflecting our investment beliefs. Regular reviews of performance by the Investment Committee and advice from our Investment Advisors indicate that performance is in line with market expectations. 

26 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Staff Remuneration** 

Trustees have adopted and reviewed the pay policy that applies to all staff members. An independent review of staff rewards was undertaken during the year and the pay policy has been updated as a result.  This new policy has taken effect from 1 October 2024 and includes a new pay structure and job evaluation process. 

Trustees review salaries annually against suitable inflation measures.  These reflect a cost-of-living measure weighted equally with average wages. 

Reflecting our programme focus on pay transparency and in line with NCVO guidance, the ratio between the highest salary (£102,088) and the median salary (£44,357) in the Foundation is 2.3:1. The ratio of the top salary to the lowest is 3.3:1. These calculations are based on full-time equivalent salaries, net of salary sacrifice deductions. 

The charity made contributions to employees’ personal pension plans based on a fixed percentage of salary. In September 2014, Trustees established a company pension scheme in which contributions are made to NEST. 

## **Statement of Fundraising Practices** 

The Foundation does not engage in public fundraising and does not use professional fundraisers or commercial participators. The Foundation, nevertheless, observes the relevant fundraising regulations and codes. During the year there were no instances of non-compliance with these regulations and codes and the Foundation received no complaints relating to its fundraising practice. 

## **Governance Arrangements** 

A Board of Trustees, of up to ten individuals, who must hold at least two meetings each year, administers and controls the Foundation and has control of its property and funds. Trustees are subject to fixed-term appointments as set out in the Memorandum and Articles of Association updated in January 2022. During the year, Trustees have formally met four times, plus a residential Away Day. 

The Trustees have complied with the duty in Section 17 of The Charities Act 2011 to have due regard to the Charity Commission’s published guidance concerning the operation of the Public Benefit requirement under that Act. 

## **Trustee Roles and Responsibilities** 

An individual induction programme is in place and implemented for new Trustees, covering all relevant aspects of the role and the Foundation. We hold regular training and engagement sessions before Trustee meetings with guest speakers to share learning and engage staff and Trustees. 

27 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

The role of the Trustees includes setting strategic direction and agreeing the financial plan, approving grant-making applications and monitoring the Foundation’s grant activities, ensuring that all activities are within its agreed charitable objectives and pursued for the public benefit. Matters reserved for the Trustees are approved by the Trustees and are subject to annual review. 

Trustees act on advice and information from regular meetings with the Director and their appointed advisers and from the Foundation’s Resources Committee and Investment Committee under terms of reference approved by the Board of Trustees. 

## **Trustee Recruitment** 

Trustees are recruited through open advertisement. They are interviewed by a panel of existing Trustees against a set of advertised criteria and with due regard to the Foundation’s commitment to equality of opportunity and fair treatment. We monitor the response to all vacancies in terms of gender, ethnicity and disability. 

## **Statement of Trustees’ Responsibilities** 

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

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs and of the income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK 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 charity 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. 

28 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

In so far as the Trustees are aware: 

- there is no relevant audit information of which the charitable company’s auditor is unaware; and, 

- each Trustee has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

The Trustees are responsible for the maintenance and integrity of the organisational and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

The report of the Trustees has been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime. 

Approved by the Trustees on 10 March 2025 and signed on their behalf by 

## **Stephen Muers, Chair of the Board of Trustees** 

29 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **Opinion** 

We have audited the financial statements of Friends Provident Charitable Foundation (the ‘charitable company’) for the year ended 30 September 2024 which comprise the statement of financial activities, the balance sheet, statement of cash flows and the notes to the financial statements including a summary of the principal 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: 

- ♦ give a true and fair view of the state of the charitable company’s affairs as at 30 September 2024 and of its income and expenditure for the year then ended; 

- ♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- ♦ have been prepared in accordance with the requirements of 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 accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

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

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

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

**30|** P a g e 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **Other information** 

The other information comprises the information included in the annual report and financial statements other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report and financial statements. 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 nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- ♦ the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- ♦ the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

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 requires us to report to you if, in our opinion: 

- ♦ adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- ♦ the financial statements are not in agreement with the accounting records and returns; or 

- ♦ certain disclosures of trustees’ remuneration specified by law are not made; or 

- ♦ we have not received all the information and explanations we require for our audit; or 

- ♦ the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ 

**31|** P a g e 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report. 

## **Responsibilities of trustees** 

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

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

## **Auditor’s responsibilities for the audit of the financial statements** 

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

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

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006. 

- We understood how the charitable company is complying with these legal and regulatory frameworks by making enquiries to management and those responsible for legal and compliance procedures.  Through our enquiries we corroborated these views by our review of Board minutes. 

**32|** P a g e 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

- We assessed the susceptibility of the charitable company’s accounts to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included: 

   - Enquiries with the trustees and management, whether they have any knowledge of any actual, suspected or alleged fraud; or non compliance with relevant laws and regulations. 

   - Reviewing journal entries. 

   - Assessing the extent of compliance with the relevant laws and regulations as part of our procedures. 

   - Investigating material variances from expectations. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

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

Gumayel Miah ACA (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL 

**33|** P a g e 



## Friends Provident Charitable Foundation 

Statement of financial activities (incorporating an income and expenditure account) 

For the year ended 30 September 2024 

|For theyear ended 30 September 2024||||||||
|---|---|---|---|---|---|---|---|
|||||2024|||2023|
|||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
||Note|£|£|£|£|£|£|
|Income from:||||||||
|Donations|2|522,500|-|522,500|120,013|-|120,013|
|Charitable activities|3|-|62,500|62,500|-|155,550|155,550|
|Investments|4|411,642|-|411,642|447,096|-|447,096|
|Total income||934,142|62,500|996,642|567,109|155,550|722,659|
|Expenditure on:||||||||
|Raising funds||32,941|-|32,941|19,238|-|19,238|
|Charitable activities||||||||
|Support for Resilient Economies||1,985,287|-|1,985,287|2,151,056|-|2,151,056|
|Foundation Practice Rating Project||-|182,297|182,297|-|139,041|139,041|
|Total expenditure|5|2,018,228|182,297|2,200,525|2,170,294|139,041|2,309,335|
|Net (expenditure)/income before net||||||||
|gains on investments||(1,084,086)|(119,797)|(1,203,883)|(1,603,185)|16,509|(1,586,676)|
|Net gains on investments|13|2,526,450|-|2,526,450|641,780|-|641,780|
|Net income/(expenditure)||1,442,364|(119,797)|1,322,567|(961,405)|16,509|(944,896)|
|Transfers between funds|19|(16,700)|16,700|-|(30,000)|30,000|-|
|Net movement in funds||1,425,664|(103,097)|1,322,567|(991,405)|46,509|(944,896)|
|Reconciliation of funds:||||||||
|Total funds brought forward||22,806,154|129,274|22,935,428|23,797,559|82,765|23,880,324|
|Total funds carried forward||24,231,818|26,177|24,257,995|22,806,154|129,274|22,935,428|



All expenditure in both 2023-24 and 2022-23 was made from unrestricted funds, apart from that relating to the Foundation Practice Rating Project which was made from restricted funds. 

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 19 to the financial statements. 

**34** / Page 



Friends Provident Charitable Foundation 

Company no. 04228843 

## Balance sheet 

## As at 30 September 2024 

|As at 30 September 2024<br>Balance sheet|||Company|no. 04228843|
|---|---|---|---|---|
|Note<br>Fixed assets:<br>12<br>13<br>14<br>Current assets:<br>15<br>Liabilities:<br>16<br>17<br>19<br>Total unrestricted funds<br>Restricted income funds<br>General funds<br>Total charity funds<br>Cash at bank and in hand<br>Tangible assets<br>Social Investments<br>The funds of the charity:<br>Creditors: amounts falling due within one year<br>Net current assets/(liabilities)<br>Total net assets<br>Creditors: amounts falling due after one year<br>Listed Investments<br>Total assets less current liabilities<br>Debtors<br>Unrestricted income funds:<br>Designated funds|£<br>219,969<br>1,179,842|2024<br>£<br>12,361<br>23,711,503<br>482,000|£<br>225,506<br>1,099,099|2023<br>£<br>6,133<br>23,438,663<br>379,000|
|||24,205,864<br>233,357||23,823,796<br>(341,343)|
||1,399,811<br>(1,166,454)||1,324,605<br>(1,665,948)||
||1,159,100<br>23,072,718||-<br>22,806,154||
|||24,439,221<br>(181,226)||23,482,453<br>(547,025)|
|||24,257,995||22,935,428|
|||26,177<br>24,231,818||129,274<br>22,806,154|
||||||
|||24,257,995||22,935,428|



Approved by the Board of Trustees on 10 March 2025 and signed on their behalf by: 

Stephen Muers Chair of Trustees 

**35** / Page 



Friends Provident Charitable Foundation 

## Statement of cash flows 

## For the year ended 30 September 2024 

|For theyear ended 30 September 2024|For theyear ended 30 September 2024|For theyear ended 30 September 2024|||
|---|---|---|---|---|
|Note<br>£<br>£<br>Cash flows from operating activities<br>Net income/(expenditure) for the reporting period<br>1,322,567<br>(as per the statement of financial activities)<br>Depreciation charges<br>3,536<br>Dividends, interest and rent from investments<br>(411,642)<br>(Gains)/Losses on investments<br>(2,526,450)<br>Impairment losses<br>210,000<br>Decrease/(increase) in debtors<br>5,537<br>Decrease in creditors<br>(865,293)<br>Net cash used in operating activities<br>(2,261,745)<br>411,642<br>(9,764)<br>2,678,366<br>(997,292)<br>(15,000)<br>Funds released for reinvestment<br>250,000<br>2,317,952<br>56,207<br>1,183,234<br>a<br>1,239,441<br>At 1 October<br>2023<br>Cash flows<br>£<br>£<br>Cash held as part of investment portfolio<br>84,135<br>(24,536)<br>Cash at bank and in hand<br>1,099,099<br>80,743<br>a<br>Total cash and cash equivalents<br>1,183,234<br>56,207<br>Net cash provided by investing activities<br>Cash flows from investing activities:<br>Dividends, interest and rents from investments<br>Purchase of fixed assets<br>Proceeds from sale of investments<br>Purchase of investments<br>Transfer in to investment funds<br>2024<br>Cash and cash equivalents at the end of the year<br>Change in cash and cash equivalents in the year<br>Cash and cash equivalents at the beginning of the<br>year<br>Analysis of cash and cash equivalents and of net debt|||£<br>£<br>(944,896)<br>1,756<br>(447,096)<br>(641,780)<br>250,000<br>180,788<br>(731,329)<br>(2,332,557)<br>447,096<br>(4,339)<br>4,228,021<br>(2,220,649)<br>19,294<br>-<br>2,469,423<br>136,866<br>1,046,368<br>1,183,234<br>Other non-<br>cash changes<br>At 30<br>September<br>2024<br>£<br>£<br>-<br>59,599<br>-<br>1,179,842<br>-<br>1,239,441<br>2023||
|||(2,261,745)<br>2,317,952||(2,332,557)<br>2,469,423|
||At 1 October<br>2023<br>£<br>84,135<br>1,099,099||Other non-<br>cash changes<br>£<br>-<br>-||
|||56,207<br>1,183,234||136,866<br>1,046,368|
|||1,239,441||1,183,234|
|||Cash flows<br>£<br>(24,536)<br>80,743||At 30<br>September<br>2024<br>£<br>59,599<br>1,179,842|
||1,183,234|56,207|-|1,239,441|



The charity held no borrowings at either 1 October 2023 or 30 September 2024. 

**36** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

## 1 Accounting policies 

## a) Statutory information 

Friends Provident Charitable Foundation is a charitable company limited by guarantee and is incorporated in the United Kingdom. 

The registered office address and principal place of business is The Priory Street Centre, 15 Priory Street, York, YO1 6ET. 

## b) Basis of preparation 

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 UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. 

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.  The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. 

## c) Public benefit entity 

The charity meets the definition of a public benefit entity under FRS 102. 

## d) Going concern 

The trustees consider that there are no material uncertainties which may cast significant doubt about the charity's ability to continue as a going concern.   The trustees make this assessment in respect of a period of at least one year from the date of approval of these financial statements. 

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.  Trustees are aware that there are net current liabilities but this is principally down to timing and the fact that liabilties are recognised in full for the following 12 months but there is no corresponding income recognised.  In addition, the Foundation has significant resources available in fixed asset investments which can be drawn down as required to fund working capital. 

## e) Income 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. 

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.  This is normally upon notification by our investment managers. 

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

**37** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

- 1 Accounting policies (continued) 

## f) Fund accounting 

Unrestricted funds are donations and other income received or generated by the charity which may be used freely in pursuit of the charity's objects at the discretion of the Trustees. 

The investment assets derived from the donation of £20 million from Friends Provident plc in 2004.  The assets are expendable at the discretion of the trustees. 

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. 

Restricted funds relate to income earned which may only be applied towards specific projects or causes in line with the terms by which the income was received. 

## g) Expenditure and irrecoverable VAT 

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

- Expenditure on raising funds principally relates to the costs of managing the charity's investments. 

- Expenditure on charitable activities includes the costs of grant making and associated activities undertaken to further the purposes of the charity and their associated support costs 

- Other expenditure represents those items not falling into any other heading 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 

## h) Grants payable 

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity. 

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. 

- i) Allocation of support costs 

Expenditure is allocated to the particular activity where the cost relates directly to that activity. 

Salary costs are apportioned, based on an estimate of staff time, as follows: 

- Support costs 85% 

- Governance costs 15% 

Support and governance costs are allocated in full to charitable activities - Support for Resilient Economies projects. 

Governance costs are the costs associated with the governance arrangements of the charity.  These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities. 

**38** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

## 1 Accounting policies (continued) 

## j) Operating leases 

Rental charges are charged on a straight line basis over the term of the lease. 

## k) Tangible fixed assets 

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life. 

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: 

||Computer equipment|4 years|
|---|---|---|
||Fixtures and fittings|4 years|



## l) Listed investments 

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments. 

## m) Social Investments 

Social investments are valued at their fair value, which would ordinarily equate to market value where this is available.  Where fair value is not practicable, social investments are recognised at cost less impairment.  An annual review is carried out, either by external independent consultants or by Foundation staff, to determine whether investments should be impaired.  Any impairment losses are included within expenditure during the year. 

## n) Debtors 

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

## o) Cash at bank and in hand 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## p) Creditors and provisions 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

**39** / Page 



Friends Provident Charitable Foundation 

## Notes to the financial statements 

## For the year ended 30 September 2024 

## 1 Accounting policies (continued) 

## q) Financial instruments 

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

## r) Pensions 

The Foundation operates a defined contribution pension scheme.  The assets of the scheme are held separately from those of the Foundation in an independently administered fund.  The pension cost charge represents contributions payable under the scheme by the Foundation to the fund.  The Foundation has no liability under the scheme other than for the payment of those contributions. 

## 2 Income from donations 

|Income from donations|||
|---|---|---|
|Donations|2024<br>Total<br>£<br>522,500|2023<br>Total<br>£<br>120,013|
||522,500|120,013|



The Foundation received two large one-off donations from private donors during the year which have been included within unrestricted funds.  The first unrestricted donation of £122,500 was fully expended during the year.  The second unrestricted donation of £400,000, from the Dandelion Fund, will contribute towards a new grant programme in 2024-25.  The Foundation's trustees will determine how the donation is spent. 

## 3 Income from charitable activities 

|Income from charitable activities|||
|---|---|---|
|Income from investments<br>Gross dividends<br>Bank interest<br>Income from social investments<br>Grant income for Foundation Practice Rating Project<br>All income from charitable activities is restricted.|2024<br>Total<br>£<br>62,500|2023<br>Total<br>£<br>155,550|
||62,500|155,550|
||2024<br>Total<br>£<br>389,486<br>17,799<br>4,357|2023<br>Total<br>£<br>431,435<br>11,322<br>4,339|
||411,642|447,096|



## 4 Income from investments 

All income from investments is unrestricted. 

**40** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

- 5a Analysis of expenditure (current year) 

|the year ended 30 September 2024<br>Analysis of expenditure (current year)||||||||
|---|---|---|---|---|---|---|---|
|Investment manager's fees<br>Investment advice & other costs<br>Grant commitments<br>Impairment losses<br>Staff costs (Note 8)<br>Staff training, expenses & other related costs<br>Grant advisory group, assessors &  grantee support<br>Learning Strategy<br>Equity Group<br>Climate Emergency Developments<br>Communication, dissemination & website costs<br>Overhead costs<br>Operational investment costs<br>Legal & professional fees<br>Auditor's remuneration<br>Trustee meetings & expenses<br>Support costs<br>Governance costs<br>Total expenditure 2024<br>Total expenditure 2023|Raising<br>funds<br>£<br>15,528<br>17,413<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|Charitable activities||Governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>56,178<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>17,017<br>22,917|Support<br>costs<br>£<br>-<br>-<br>-<br>-<br>318,343<br>34,001<br>5,588<br>14,285<br>-<br>7,000<br>96,578<br>92,952<br>40,696<br>24,449<br>-<br>-|2024<br>Total<br>£<br>15,528<br>17,413<br>1,045,283<br>210,000<br>374,521<br>34,001<br>5,588<br>14,285<br>-<br>7,000<br>131,576<br>92,952<br>40,696<br>171,748<br>17,017<br>22,917|2023<br>Total<br>£<br>15,511<br>3,727<br>1,335,505<br>250,000<br>313,180<br>32,493<br>1,464<br>4,593<br>2,400<br>-<br>116,729<br>71,807<br>16,359<br>116,735<br>15,643<br>13,189|
|||Support for<br>Resilient Economies<br>projects<br>£<br>-<br>-<br>1,045,283<br>210,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|Foundation<br>Practice<br>Rating<br>Project<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>34,998<br>-<br>-<br>147,299<br>-<br>-|||||
||32,941<br>-<br>-|1,255,283<br>633,892<br>96,112|182,297<br>-<br>-|96,112<br>-<br>(96,112)|633,892<br>(633,892)<br>-|2,200,525<br>-<br>-|2,309,335<br>-<br>-|
||32,941|1,985,287|182,297|-|-|2,200,525|2,309,335|
||19,238|2,151,056|139,041|-|-|||



All expenditure in both 2023-24 and 2022-23 was made from unrestricted funds, apart from that relating to the Foundation Practice Rating Project which was made from restricted funds. 

**41** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

## 5b Analysis of expenditure (prior year) 

|Analysis of expenditure (prior year)||||||
|---|---|---|---|---|---|
|Investment manager's fees<br>Investment advice & other costs<br>Grant commitments<br>Impairment losses<br>Staff costs (Note 8)<br>Staff training, expenses & other related costs<br>Grant advisory group, assessors &  grantee support<br>Learning Strategy<br>Equity Group<br>Performance evaluation<br>Communication, dissemination & website costs<br>Overhead costs<br>Investment engagement fees<br>Legal & professional fees<br>Auditor's remuneration<br>Trustee meetings & expenses<br>Support costs<br>Governance costs<br>Total expenditure 2023|Raising<br>funds<br>£<br>15,511<br>3,727<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>19,238<br>-<br>-<br>19,238|Support for<br>Resilient Economies<br>projects<br>~~Foundation~~<br>Practice<br>Rating<br>Project<br>£<br>£<br>-<br>-<br>-<br>-<br>1,335,505<br>-<br>250,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>33,014<br>-<br>-<br>-<br>-<br>-<br>106,027<br>-<br>-<br>-<br>-<br>1,585,505<br>139,041<br>489,742<br>-<br>75,809<br>-<br>2,151,056<br>139,041<br>Charitable activities|Governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>46,977<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>15,643<br>13,189<br>75,809<br>-<br>(75,809)<br>-|Support<br>costs<br>£<br>-<br>-<br>-<br>-<br>266,203<br>32,493<br>1,464<br>4,593<br>2,400<br>-<br>83,715<br>71,807<br>16,359<br>10,708<br>-<br>-<br>489,742<br>(489,742)<br>-<br>-|2023 Total<br>£<br>15,511<br>3,727<br>1,335,505<br>250,000<br>313,180<br>32,493<br>1,464<br>4,593<br>2,400<br>-<br>116,729<br>71,807<br>16,359<br>116,735<br>15,643<br>13,189|
|||Support for<br>Resilient Economies<br>projects<br>£<br>-<br>-<br>1,335,505<br>250,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,585,505<br>489,742<br>75,809<br>2,151,056||||
||||||2,309,335<br>-<br>-|
||||||2,309,335|



**42 /** Page 



Friends Provident Charitable Foundation 

## Notes to the financial statements 

## For the year ended 30 September 2024 

- 6 Grant making (current year) 

|e year ended 30 September 2024<br>Grant making (current year)|||
|---|---|---|
|Grant commitments made in the year<br>Grants (written back) or adjusted<br>Net grants committed in the year<br>Grants paid<br>Grants payable at the end of the year<br>Total creditors at the end of the year<br>Creditors: amounts due within one year (note 16)<br>Creditors: amounts due in over one year (note 17)<br>Grants payable at the start of the year|2024<br>£<br>2,171,035<br>873,684<br>171,599|2023<br>£<br>2,905,752<br>1,312,410<br>23,095|
||1,045,283<br>(1,951,390)|1,335,505<br>(2,070,222)|
||1,264,928|2,171,035|
||1,083,702<br>181,226|1,624,010<br>547,025|
||1,264,928|2,171,035|



Details of the grant commitments made in the year can be found in the Trustees' Annual Report. 

## 7 Net income/(expenditure) for the year 

This is stated after charging: 

|This is stated after charging:|||
|---|---|---|
||2024|2023|
||£|£|
|Depreciation|3,536|1,756|
|Operating lease rentals payable:|||
|Property|-|19,250|
|Auditor's remuneration (excluding VAT):|||
|Audit|13,750|12,500|



- 8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel 

Staff costs were as follows: 

|Staff costs were as follows:|||
|---|---|---|
|Social security costs<br>Employer’s contribution to defined contribution pension schemes<br>Salaries and wages<br>Other forms of employee benefits|2024<br>£<br>304,220<br>25,495<br>44,806<br>-|2023<br>£<br>252,075<br>20,272<br>40,767<br>66|
||374,521|313,180|



**43** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

- 8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel (continued) 

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between: 

|||2024|2023|
|---|---|---|---|
|||No.|No.|
|£70,000|- £79,999|-|1|
|£80,000|- £89,999|1|-|



The total employee benefits (including employer's pension contributions and employer's national insurance) of the key management personnel were £280,762 (2023: £234,619). 

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2023: £nil).  No charity trustee received payment for professional or other services supplied to the charity (2023: £nil). 

Trustees' expenses represents the payment or reimbursement of travel, subsistence, training and IT/technology costs totalling £2,987 (2023: £1,650) incurred by 9 (2023: 10) members relating to attendance at meetings of the trustees. 

## 9 Staff numbers 

The average number of employees (head count based on number of staff employed) during the year was 8.0 (2023:7.8). The full time equivalent number of staff was 6.1 (2023: 5.5). 

## 10 Related party transactions 

Due to the nature of the Foundation's operations and the composition of the trustee board and staff and their charitable interests, it is possible that the Foundation will make a donation to a charity in which a trustee or staff member may have a governance interest.  In recognition of this possibility, trustees have developed a policy of disclosure to ensure there is no conflict of interest and that such a donation is made at arm's length. 

Stephen Muers, Chair of trustees, is Chief Executive Office of Better Society Capital which has an investment in Ethex. Core funding of £25,000 was awarded to Ethex in June 2024 (2023: £Nil).  There was no remaining balance included in grant creditors at 30 September 2024.  The Foundation has an investment in Ethex with a value of £57,000 at 30 September 2024.  A previous impairment of this investment, amounting to £40,000, was reversed during the year. 

Ann Don Bosco, a trustee of Friends Provident Charitable Foundation, is a Director of the Economic Change Unit which was given core funding of £100,000 in March 2023.  A cost of living increase of £3,000 was awarded this year. There was no remaining balance included in grant creditors at 30 September 2024. The individuals mentioned above did not take part in the funding/investment decisions involving their related party transactions. 

There are no donations from related parties (2023: None) which are outside the normal course of business and no restricted donations from related parties (2023: None). 

Other than as disclosed above, there were no other related party transactions during the period of the report (2022-23: no other transactions). 

**44** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

## 11 Taxation 

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 

## 12 Tangible fixed assets 

|Tangible fixed assets||||
|---|---|---|---|
|Eliminated on disposal<br>At the end of the year<br>Net book value<br>At the start of the year<br>Charge for the year<br>At the end of the year<br>Depreciation<br>Cost<br>At the end of the year<br>At the start of the year<br>Additions in year<br>Disposals in year<br>At the start of the year|Computer<br>equipment<br>£<br>14,581<br>4,964<br>(4,539)|Fixtures &<br>Fittings<br>-<br>4,800<br>-|Total<br>£<br>14,581<br>9,764<br>(4,539)|
||15,006|4,800|19,806|
||8,448<br>3,336<br>(4,539)|-<br>200<br>-|8,448<br>3,536<br>(4,539)|
||7,245|200|7,445|
||7,761|4,600|12,361|
||6,133|-|6,133|



All of the above assets are used for charitable purposes. 

## 13 Listed investments 

|Listed investments|||
|---|---|---|
|Cash held by investment broker pending reinvestment<br>Fair value at the end of the year<br>Historical costs of listed investments at the year end<br>Funds released for reinvestment<br>Other investments<br>UK Common investment funds<br>Shares listed on the London Stock Exchange<br>Investments comprise:<br>Additions at cost<br>Net gain/(loss) on change in fair value<br>Fair value at the start of the year<br>Cash<br>Disposal proceeds<br>Transfer (out)/ in during year|2024<br>£<br>23,354,528<br>684,292<br>(2,678,366)<br>15,000<br>(250,000)<br>2,526,450|2023<br>£<br>25,039,414<br>1,920,649<br>(4,228,021)<br>(19,294)<br>-<br>641,780|
||23,651,904<br>59,599|23,354,528<br>84,135|
||23,711,503|23,438,663|
||2024<br>£|2023<br>£|
||18,234,553|19,356,640|
||2024<br>£<br>20,013,656<br>102,630<br>3,535,618<br>59,599|2023<br>£<br>20,193,506<br>61,621<br>3,099,401<br>84,135|
||23,711,503|23,438,663|



Two amounts, totalling £644,225, were invested in Snowball Impact Investments LP during the year.  This was following a commitment to increase the funds invested in Snowball Impact Investments LP up to a maximum of £5 million or 10% of the value of the fund, whichever is the lower, by 31 December 2024. 

**45** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

## 13. Listed investments (continued) 

Individual holdings of listed fixed asset investments, held at 30 September 2024, which represent a material proportion of the total value of the fixed asset investment portfolio were as follows: 

|<br>of the total value of the fixed asset investment portfolio were as follows:|||
|---|---|---|
|Snowball Impact Investments LP<br>Balance at the start of the year<br>Additions at cost<br>Balance at the end of the year<br>Impairment charge<br>Social investments<br>Cazenove Sustainable Growth Fund<br>BMO Responsible UK Equity Fund<br>BMO Responsible Global Equity Fund<br>BMO Responsible Sterling Corporate Bond Fund<br>Loan repayment|Valuation<br>£<br>11,440,315<br>2,662,734<br>3,153,042<br>2,757,566<br>3,535,618<br>2024<br>£<br>379,000<br>313,000<br>-<br>(210,000)|Proportion<br>%<br>48.4<br>11.3<br>13.3<br>11.7<br>14.9<br>2023<br>£<br>329,000<br>300,000<br>-<br>(250,000)|
||482,000|379,000|



## 14 Social investments 

All social investments have been valued at historical cost, less impairment. 

Funds of £250,000 invested into Snowball Impact Management Limited (SIML) during the year were impaired, in accordance with our social investment policy.  It was always anticipated that SIML would need additional capital whilst the Snowball Impact Investments LP fund grew to scale and there are plans in place for further capitalisations. 

The impairment of £40,000 relating to the investment in the Ethex Investment Club, recognised in the comparative period, has been reversed.  The total investment of £57,000 is now included at cost.  This is following due diligence and approval of a further investment of £43,000 which is to be made in 2024-25. 

Additional funds of £63,000 were invested into Wyre Catchment CIC during the year, bringing the investment up to the total commitment under the loan agreement of £90,000.  It is due to be repaid in instalments by 30 November 2030. 

Individual holdings of social investments, held at 30 September 2024, were as follows: 

|People Powered Retrofit Ltd<br>Energy Garden<br>Ethex Investment Club<br>Wyre Catchment CIC<br>AWEL Co-op<br>Egni Co-op|Valuation<br>£<br>100,000<br>100,000<br>95,000<br>90,000<br>57,000<br>40,000|Proportion<br>%<br>20.7<br>20.7<br>19.7<br>18.7<br>11.8<br>8.4|
|---|---|---|
||482,000|100.0|



**46** / Page 



Friends Provident Charitable Foundation 

## Notes to the financial statements 

## For the year ended 30 September 2024 

|For the year ended 30 September 2024|||
|---|---|---|
|15<br>Other debtors<br>Debtors<br>Prepayments<br>Accrued income<br>Grants receivable|2024<br>£<br>38,600<br>-<br>42,187<br>139,182|2023<br>£<br>45,900<br>2,310<br>12,606<br>164,690|
||219,969|225,506|



16 Creditors: amounts falling due within one year 

|16<br>Creditors: amounts falling due within one year|||
|---|---|---|
|17<br>Other creditors<br>Accruals<br>Grants payable (note 6)<br>Grants payable - within 1 to 5 years (note 6)<br>Creditors: amounts falling due after one year|2024<br>£<br>1,083,702<br>36,401<br>46,351|2023<br>£<br>1,624,010<br>-<br>41,938|
||1,166,454|1,665,948|
||2024<br>£<br>181,226|2023<br>£<br>547,025|
||181,226|547,025|



18a Analysis of net assets between funds (current year) 

|Analysis of net assets between funds (current year)|||||
|---|---|---|---|---|
|Current assets<br>Net assets at 30 September 2024<br>Tangible fixed assets<br>Investments<br>Current liabilities<br>Long term liabilities|Restricted<br>£<br>-<br>-<br>26,177<br>-<br>-|General<br>unrestricted<br>£<br>12,361<br>24,193,503<br>214,534<br>(1,166,454)<br>(181,226)|Designated<br>£<br>-<br>-<br>1,159,100<br>-<br>-|Total funds<br>£<br>12,361<br>24,193,503<br>1,399,811<br>(1,166,454)<br>(181,226)|
||26,177|23,072,718|1,159,100|24,257,995|



18b Analysis of net assets between funds (prior year) 

|Analysis of net assets between funds (prior year)|||||
|---|---|---|---|---|
|Tangible fixed assets<br>Current assets<br>Net assets at 30 September 2023<br>Investments<br>Long term liabilities<br>Current liabilities|Restricted<br>£<br>-<br>-<br>129,274<br>-<br>-|General<br>unrestricted<br>£<br>6,133<br>23,817,663<br>1,195,331<br>(1,665,948)<br>(547,025)|Designated<br>£<br>-<br>-<br>-<br>-<br>-|Total funds<br>£<br>6,133<br>23,817,663<br>1,324,605<br>(1,665,948)<br>(547,025)|
||129,274|22,806,154|-|22,935,428|



**47** / Page 



Friends Provident Charitable Foundation 

## Notes to the financial statements 

## For the year ended 30 September 2024 

19a Movements in funds (current year) 

|e year ended 30 September 2024<br>Movements in funds (current year)||||||
|---|---|---|---|---|---|
|Total restricted funds<br>Total designated funds<br>General funds<br>Foundation Practice Rating Project - funds<br>contributed by Friends Provident<br>Foundation<br>Total funds<br>Grant funding of core organisational costs<br>Restricted funds:<br>Restricted funds:<br>Foundation Practice Rating Project<br>Unrestricted funds:<br>Designated funds:|At 1<br>October<br>2023<br>£<br>129,274|Income &<br>gains<br>£<br>62,500|Expenditure<br>& losses<br>£<br>(182,297)|Transfers<br>£<br>16,700|At 30<br>September<br>2024<br>£<br>26,177|
||129,274|62,500|(182,297)|16,700|26,177|
||-<br>-|-<br>-|-<br>-|33,300<br>1,125,800|33,300<br>1,125,800|
||-|-|-|1,159,100|1,159,100|
||22,806,154|3,460,592|(2,018,228)|(1,175,800)|23,072,718|
||22,935,428|3,523,092|(2,200,525)|-|24,257,995|



Funds held during the current and prior year comprised of both restricted and unrestricted funds.  The narrative to explain the purpose of the restricted and designated funds is given at the foot of the note below. 

In March 2024, the Trustee Board agreed to designate £50,000, as the Foundation's contribution to the Practice Rating Project project over a three year period. Of this, £16,700 has been transferred into the project's restricted fund for the current financial year, leaving £33,300 in designated funds.  A further £1,125,800 has been set aside in designated funds, relating to an extension of core funding to eight existing grantholders which was approved in principle by the Trustee Board in September 2024. 

19b Movements in funds (prior year) 

|Movements in funds (prior year)||||||
|---|---|---|---|---|---|
|Total restricted funds<br>Total designated funds<br>General funds<br>Total funds<br>Restricted funds:<br>Restricted funds:<br>Foundation Practice Rating Project<br>Unrestricted funds:<br>Designated funds:<br>Foundation Practice Rating Project|At 30<br>September<br>2022<br>£<br>82,765|Income &<br>gains<br>£<br>155,550|Expenditure<br>& losses<br>£<br>(139,041)|Transfers<br>£<br>30,000|At 1 October<br>2023<br>£<br>129,274|
||82,765|155,550|(139,041)|30,000|129,274|
||30,000|-|-|(30,000)|-|
||30,000|-|-|(30,000)|-|
||23,767,559|1,208,889|(2,170,294)|-|22,806,154|
||23,880,324|1,364,439|(2,309,335)|-|22,935,428|



**48** / Page 



Friends Provident Charitable Foundation 

Notes to the financial statements 

## For the year ended 30 September 2024 

## 19 Movements in funds (continued) 

## Purpose of restricted funds 

During the year, Friends Provident Foundation has coordinated the Foundation Practice Rating Project, working alongside other partner trusts/foundations (see details below).  The aim of the project is to develop a new method of assessing the governance and reporting practices of private trusts and foundations in the UK, creating a public record of their achievements. Performance will be assessed in three areas: Transparency, Accountability and Diversity. 

External funders for the current phase of the Foundation Practice Rating Project include: 

|External funders for the current phase of the Foundation Practice Rating Project include:||
|---|---|
|Total grant<br>£<br>6,000<br>15,000<br>45,000<br>30,000<br>45,000<br>50,000<br>7,500<br>50,000<br>45,000<br>John Ellerman Foundation<br>KPMG Foundation, Maitri Trust, Mercer's Charitable Trust & Mission 44<br>Opt-ins for one year only:<br>The Robertson Trust<br>Joseph Rowntree Reform Trust<br>Joseph Rowntree Charitable Trust<br>Barrow Cadbury Trust<br>City Bridge Trust<br>Indigo Trust<br>John Lyons Charity<br>Paul Hamlyn Foundation|Recognised<br>in 2023-24<br>£<br>6,000<br>5,000<br>15,000<br>-<br>15,000<br>-<br>-<br>17,000<br>-|
||58,000<br>4,500|
||62,500|



In addition, Friends Provident Foundation has committed £50,000 for the period 2024-26. 

## Purpose of designated funds 

There were no designated funds held at 1 October 2023.  During the year, Trustees have approved a further contribution of £50,000, over three years, towards the Foundation Practice Rating Project, with funding for the next two years, amounting to £33,300, held in designated funds at 30 September 2024.  In addition, core funding to eight grantholders, of £1,125,800 in total, has been set aside in designated funds, having been approved by Trustees in September 2024. This will extend their core funding over the next three year period. 

## 20 Operating lease commitments payable as a lessee 

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods 

|<br>following periods|||
|---|---|---|
|Less than one year|2024<br>2023<br>£<br>£<br>-<br>19,250<br>-<br>19,250<br>Property||
||-|19,250|



21 Legal status of the charity 

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 £1. 

**49** / Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **APPENDICES** 

- A. Grants made in 2023-24 

- B. Summary of Investments held at 30 September 2024 

50 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Appendix A** 

## **Grants made in 2023-24** 

## **Core Funding** 

|**Organisation**|**Value**|
|---|---|
|Centre for Local Economic Strategies(CLES)|£90,000|
|Ethex Investment Club|£25,000|
|**Total Core Funding**|**£115,000**|



## **Project Funding** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
|Institute for<br>the Future of<br>Work|Decentralising<br>Power,<br>Diversifying<br>Voices: Co-<br>designing<br>mechanisms of<br>accountability<br>for artificial<br>intelligence<br>(AI) at work.|£96,587|The project will explore how algorithmic<br>systems concentrate economic power and<br>seeks to shift AI policy by publishing case<br>studies on how new value capture<br>methods are affecting work. Partnering<br>with unions and employers to create<br>technology forums in three workplaces,<br>involve workers in AI governance, and<br>develop mitigations using a tested<br>assessment model.<br>Nationally, they will work with regulators<br>and organisations to amplify worker voices<br>and embed co-governance principles in AI<br>workplace policies.|
|Kinfolk<br>Network CIC|Political<br>education and<br>praxis:<br>exploring<br>solidarity<br>economics<br>rooted in Black<br>/ African<br>traditions.|£80,000|Kinfolk will create and host educational<br>sessions on topics such as mutual aid,<br>food sovereignty and ecological economic<br>relationships. Following these, they will<br>create small communities of practice to<br>help participants apply decolonial<br>economic principles, focusing on<br>supporting Black communities in<br>transforming their economic relationships<br>and engaging in nourishing economic<br>practices and reducing reliance on<br>extractive systems.|



51 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
|Operation<br>Noah|Working with<br>churches to<br>bring in a<br>climate<br>resilient future<br>based on<br>solutions and<br>not problems.|£55,000|This project continues the Bright Now<br>campaign, focusing on helping UK<br>churches use their resources - money,<br>land, and influence - to shift away from<br>fossil fuel reliance and promote<br>environmental sustainability.<br>The work involves four key areas: training<br>church investors on positive environmental<br>impact, launching the Green Investment<br>Declaration to guide climate-friendly<br>investments, advancing the Big Bank<br>Switch campaign to move funds to green<br>alternatives and encouraging church<br>landowners to adopt practices that<br>enhance carbon sequestration, biodiversity<br>and sustainable farming.|
|Spotlight on<br>Corruption|Creating more<br>equal access<br>to key<br>economic<br>decision-<br>makers in<br>government to<br>ensure a fairer<br>economy.|£104,300|This project will monitor government<br>commitments to increase transparency in<br>lobbying related to key economic policy<br>departments, particularly the UK Treasury.<br>It will identify and address existing<br>loopholes that allow privileged access by<br>mapping interactions with key officials,<br>analysing transparency data and<br>producing public assessments of access to<br>decision-makers.<br>The project will consult with partners and<br>experts to develop a model policy that<br>promotes equitable access to policy-<br>making processes, aligning with<br>recommendations from the Boardman<br>review and OECD principles. Collaborating<br>with civil society groups, regulators and<br>lobbying professionals, it aims to push for<br>a fair and transparent lobbying framework.|
|Students<br>Organising<br>for<br>Sustainability|Invest for<br>Change:<br>universities<br>leading a<br>transformation<br>al shift in|£174,322|UK universities hold over £19 billion in<br>investments but only a small portion aligns<br>with the goal of a just, decarbonized<br>economy. SOS provides students with<br>detailed ethical finance training,<br>coordinates collective engagement efforts|



52 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
||responsible<br>investment<br>practice.||and supports active campaigns at 36<br>institutions across the UK. This funding is<br>to enable them to sustain this work and<br>build on the programme's progress. Their<br>key objectives include ensuring<br>universities adopt exemplary responsible<br>investment policies, empowering student<br>leaders to hold institutions accountable<br>and encouraging universities to engage in<br>impactful, high-profile, coordinated<br>activities.|
|The Centre<br>for Health<br>and the<br>Public<br>Interest<br>(CHPI)|A usable data<br>map of the<br>extraction of<br>profit from<br>health and<br>social care<br>services in<br>England.|£70,000|The project will expand existing datasets<br>on the finances of care services, including<br>NHS PFI deals, to cover mental health,<br>prison healthcare and children’s social<br>care. Using data on overseas ownership<br>and NHS outsourcing, it will create a<br>comprehensive analysis of public money<br>flows in the care system.<br>The data will be visualized through an<br>interactive map based on the 44 NHS<br>Integrated Care Systems, illustrating profit<br>extraction from care services. An<br>advocacy toolkit will empower citizens to<br>push for transparency and accountability in<br>healthcare ownership while promoting<br>public-interest business models.<br>A high-impact report will present findings<br>to policymakers, MPs and local authorities,<br>aiming to enhance scrutiny and drive<br>systemic change.|
|Trade Justice<br>Movement<br>(TJM)|An alternative<br>trade strategy<br>for the UK.|£75,000|The project will be carried out in three<br>phases.<br>1. **Convening and Imagining:**TJM will<br>host roundtable discussions with allies<br>from civil society and academia,<br>focusing on themes such as<br>transparency in trade negotiations,<br>corporate accountability, development,|



53 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
||||the environment, digital trade and<br>human and labour rights. These<br>sessions will harness the expertise of<br>participants to develop bold<br>recommendations for UK trade policy<br>and guide the work of other civil society<br>organisations in this area.<br>2. **Briefings for Political Audiences:**<br>Insights from the discussions will inform<br>the creation and launch of briefing<br>documents on key trade justice themes,<br>structured to align with the chapters<br>envisioned for a UK trade strategy.<br>3. **Advocacy:**The briefings will serve as<br>the foundation for targeted engagement<br>with political stakeholders, particularly<br>those influencing government trade<br>policy, as well as the media and civil<br>society groups not traditionally focused<br>on trade issues.|
|**Total Project Funding**||**£655,209**||



## **Small Grants** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
|Arkbound<br>Foundation|Our Economy|£9,636|This project will host 12 participatory<br>workshops at the community hub in<br>Govanhill, Glasgow, in collaboration with<br>WeAll Scotland. The workshops aim to<br>present economic concepts in an<br>accessible way, focusing on engaging<br>people from backgrounds typically<br>excluded from economic discussions.<br>Topics will include the circular economy,<br>'donut' models, tokenomics, degrowth<br>and what a wellbeing economy could<br>look like from the participants'<br>perspectives.|



54 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
|Birbeck<br>University of<br>London|Dark Money:<br>Public<br>Education<br>Audio<br>Documentary|£10,000|Through an immersive narrative-style<br>audio documentary format, our podcast<br>series will elucidate the connections<br>between Britain’s Empire and modern<br>structures of illicit finance, grounding<br>abstract concepts in compelling real-life<br>stories. From the 2012 US Presidential<br>election to a house of 40,000 companies<br>in the Cayman Islands and the empty<br>homes of Westminster, London, this<br>gripping tale brings the world of shadow<br>banking into the everyday lives of its<br>listeners. This series will be produced<br>using detailed sound design, archival<br>audio material and clips from in-depth<br>interviews with relevant characters and<br>experts.|
|Northern<br>Mutual|Market<br>Research:<br>Determining<br>the need for a<br>mutual<br>regional bank<br>for Northern<br>Ireland.|£9,950|The project will select a market research<br>consultant based on value for money,<br>community impact and ethics. The<br>survey will be designed to be statistically<br>representative of the population,<br>covering geodemographics and<br>economic activity. A reliable sample will<br>include around 400 responses from the<br>general public and 50 from SMEs, with<br>participants spanning different levels of<br>engagement with banking products, from<br>limited (e.g., basic accounts) to more<br>extensive use (e.g., mortgages, loans).<br>The survey will cover key topics such as<br>banking trends, trust in banks, use of<br>branches, digitisation, financial exclusion<br>and factors influencing bank choice. The<br>consultant will deliver a final report with<br>recommendations based on survey<br>findings.|
|One Parent<br>Families<br>Scotland<br>(OPFS)|Empowering<br>Single Parents:<br>Shaping<br>Scotland’s|£9,759|The project will establish a single parent<br>expert group, including single parents<br>from six local authority areas in<br>Scotland. The initial focus will be on<br>capacity-building around the wellbeing|



55 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
||Wellbeing<br>Economy||economy, emphasizing social wellbeing,<br>equity and sustainability. With support<br>from OPFS, the group will then develop<br>a plan to engage the wider single parent<br>population in their area, using tools like<br>surveys, social media and online<br>discussions.<br>The goal is to reach 200-300 single<br>parents through an online survey,<br>followed by four discussion groups with<br>approximately eight parents each. The<br>project will ensure the inclusion of more<br>marginalized groups. Findings will be<br>compiled into a short report, including<br>representative quotes, survey statistics<br>and key themes. These results will<br>inform the involvement of single parent<br>experts in the Scottish Parliament's<br>future scrutiny of the Wellbeing &<br>Sustainable Development Bill.|
|Peers for the<br>Planet (P4P)|Collaborating<br>with new<br>economy<br>experts to<br>tackle<br>structural<br>barriers<br>through<br>parliamentary<br>levers.|£10,000|The project will facilitate a joint<br>workshop bringing together new<br>economy stakeholders and P4P<br>legislative experts to exchange expertise<br>and collaborate on systemic solutions.<br>The session will focus on a practical ‘4D’<br>legislative lever, such as reforming the<br>capital risk requirement regime, to<br>address structural issues and gain<br>support from aligned legislators. This<br>initiative will serve as a foundation for<br>broader engagement on 4D solutions.<br>Key activities include:<br>•Preparing draft legislative provisions<br>for integration into future legislative<br>opportunities.<br>•Producing high-quality written and<br>oral briefings to support<br>parliamentary work, enabling peers to<br>advance the debate through tools like<br>parliamentary questions, debates and<br>committees.|



56 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
||||•Reviewing progress and outcomes<br>over the year, sharing insights and<br>exploring opportunities for replication<br>and expanded collaboration.<br>The project aims to build momentum,<br>expand political debate (including in the<br>House of Lords) and strengthen<br>advocacy for structural reform.|
|People’s<br>Economy<br>(PE)|Action inquiry<br>on building<br>collaboration<br>between<br>grassroots<br>groups and the<br>new economy<br>movement|£10,000|Over 12 months, PE will facilitate an<br>action inquiry with a mixed group of GCs<br>(Grassroots Campaigners) and NEOs<br>(New Economic Organisations),<br>potentially including supporting funders.<br>The inquiry will focus on how GCs and<br>NEOs can collaborate equitably and<br>effectively on economic system change.<br>The process will be co-designed with the<br>group, covering trust-building, research,<br>developing collaboration practices and<br>testing practical collaboration<br>experiments.<br>All funding from this grant will go directly<br>to the GC’s to enable participation.|
|Planet B|Macrodose<br>Podcast|£12,000|Macrodose's rapid growth highlights the<br>demand for its content. With new<br>funding, the platform aims to maintain its<br>regular programming through 2024 while<br>significantly increasing output around<br>the UK election. Planned activities<br>include:<br>•Producing eight "alternative<br>manifesto" episodes, featuring<br>leading policy experts to promote<br>innovative ideas and build support for<br>new economic policies.<br>•Hosting a series of "election special"<br>interviews with high-profile guests.|



57 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
||||•Shifting to a three-day-a-week<br>schedule during the six weeks<br>leading up to the election.<br>These initiatives aim to amplify impactful<br>voices and provide timely, engaging<br>content during a critical political period.|
|Prime<br>Economics|We are the<br>economy|£10,000|Building on the success of the ‘We Are<br>the Economy’ campaign, the next phase<br>includes:<br>1. **Developing Messaging**: Expanding<br>and refining the original campaign’s<br>message.<br>2. **Building a Coalition**: Forming a<br>group of 12+ organizations, including<br>Oxfam and the Joseph Rowntree<br>Foundation.<br>3. **Aligning with Political Events**:<br>Preparing content around key 2024<br>political events and election<br>announcements.<br>4. **Creating Newsworthy Content**:<br>Producing polling and research to<br>attract media coverage.<br>5. **Social Media Engagement**: Sharing<br>videos and graphics to spread the<br>message.<br>6. **Parliamentary Outreach**:<br>Distributing briefings to MPs,<br>Prospective Parliamentary<br>Candidates and Lords to build<br>support.<br>7. **Collaborating with Partners**:<br>Partnering with ECU and NEON to<br>amplify research and messaging.|
|Prime<br>Economics|We are the<br>Economy|£15,000|Extension funding to allow the project to<br>build on momentum achieved through<br>the ‘We Are the Economy’ campaign.|



58 **|** Page 



## **FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

|**Organisation**|**Project Name**|**Value**|**Description**|
|---|---|---|---|
|UK Youth<br>Climate<br>Coalition<br>(UKYCC)|It’s Just<br>Economics:<br>Alternative<br>Economics<br>Workshop<br>Series for and<br>by Young<br>People|£7,130|This pilot project will consist of 3<br>workshops:<br>• **Alternative Economic Theories**:<br>Experts will present topics like<br>Degrowth, Doughnut Economics,<br>Circular Economics, Decolonised<br>Economics, Feminist Economics,<br>Community Wealth Building and<br>Ethical Banking in an "information<br>fair" format.<br>• **Imagining Alternative Futures**: This<br>workshop will inspire participants to<br>creatively envision just and<br>sustainable futures, exploring the<br>economic systems needed to support<br>those visions.<br>• **Taking Action**: Focused on helping<br>young people start their own<br>campaigns or projects, with support<br>from expert facilitators.<br>Targeting young people aged 18-29, the<br>pilot will be held in London at a<br>community centre, where UKYCC's<br>volunteer group is based.|
|**Total Small Grants Funding**||**£103,475**||



## **Total funding in 2023-24:** 

|**Grants Funded**|**Value**|
|---|---|
|Core Grants|115,000|
|Projects|655,209|
|Small Grants|103,475|
|**Total**|**873,684**|



59 **|** Page 



**FRIENDS PROVIDENT CHARITABLE FOUNDATION** 

## **REPORT OF THE TRUSTEES - YEAR ENDED 30 SEPTEMBER 2024** 

## **Appendix B** 

## **Summary of Investments** 

## **Top 10 underlying funds in Cazenove Capital fund at September 2024:** 

Schroder WM Global Sustainable Equity Fund GBP Sparinvest Ethical Global Value Fund GBP Schroder Sustainable Diversified Alternative Assets Fund GBP UK Treasury Gilt 1.125% UBAM Positive Impact Emerging Equity Fund GBP Vontobel Fund – TwentyFour Sustainable Short Term Bond Income GBP HSBC Global Investment Funds – Global Equity Sustainable Healthcare GBP RobecoSAM Sustainable Water Fund GBP Ninety One Global Environment Fund GBP Morgan Stanley Global ABS Focused Fund GBP 

**Top 20 company investments in our Columbia Threadneedle Investments funds at September 2024:** 

Astrazeneca PLC Common Stock USD.25 Microsoft Corp Common Stock USD.00000625 Apple Inc Common Stock USD.00001 Nvidia Corp Common Stock USD.001 European Investment Bank SR (Responsible Sterling Corporate Bond Fund) Kreditanstalt Fuer Wiederaufba (Responsible Sterling Corporate Bond Fund) Unilever plc Common Stock GBP.00031111 Linde PLC Common Stock Mastercard Inc Common Stock USD.0001 London Stock Exchange Group plc Common Stock GBP.06918605 Smurfit Westrock plc Common Stock Schneider Electric SE Common Stock EUR4.0 Experian plc Common Stock USD.1 Thermo Fisher Scientific Inc Common Stock USD1.0 Keyence Corp Common Stock SSE plc Common Stock GBP.5 Ashtead Group plc Common Stock GBP.1 Intuit Inc Common Stock USD.01 Intercontinental Exchange Inc Common Stock USD.01 Waste Connections Inc Common Stock 

60 **|** Page