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2023-03-31-accounts

TRUSTEES’ REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

THE FOUNDATION FOR SOCIAL ENTREPRENEURS

(Trading as UnLtd)

Charity No. 1090393 Company No. 4180639

MILLENNIUM AWARDS TRUST

Charity No. 1095749

UNLTD SCOTLAND

Company No. SC475273

FSE MANAGEMENT SERVICES LTD

Company No. 6841529

UNLTD IMPACT SUPPORT COMPANY LTD

Company No. 10951754

UNLTD VENTURE GROWTH SUPPORT LTD

Company No. 11568325

UNLTD SOCIAL INVESTMENTS LTD

Company No. 13983682

This report has been prepared in accordance with the guidance issued by the Charity Commission and Companies House, and the Reporting Directions of the Millennium Commission

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Contents

LEGAL AND ADMINISTRATIVE INFORMATION .............................................................................. 4 Trustees of the Foundation for Social Entrepreneurs (UnLtd) ................................................ 4 Board Sub-Committees of the Foundation for Social Entrepreneurs (UnLtd) ......................... 5 Key Information ....................................................................................................................... 6 INTRODUCTION AND OVERVIEW .................................................................................................... 8 STRUCTURE, GOVERNANCE, AND MANAGEMENT .................................................................... 10 Nature of governing document .............................................................................................. 10 How Trustees are recruited and appointed ........................................................................... 10 Policies and procedures for induction and training of Trustees ............................................ 10 Organisational structure ........................................................................................................ 10 Trustee oversight .................................................................................................................. 11 OBJECTS AND ACTIVITIES ............................................................................................................ 13 Objects of the Charity ........................................................................................................... 13 Charity’s aims ................................................................................................................................... 15 Volunteer help ....................................................................................................................... 15 Main policies and procedures ............................................................................................... 16 Being a responsible business ............................................................................................... 23 STRATEGIC REPORT ...................................................................................................................... 24 Market Leading Support………………………………………………………………………...…25 Campaigning for a Just World………………………………………………………………...…..29 Funding for Impact………………………………………………………………………...……….30 Working Alongside Social Entrepreneurs……………………………………………….. ……...30 Organisational Health………………………………………………………………………………31 Organisational Reporting…………………………………………………………………………..32 Financial review .................................................................................................................... 34 Plans for future periods ......................................................................................................... 34 Principal risks and uncertainties............................................................................................ 35 STATEMENT OF TRUSTEES’ RESPONSIBILITIES ............................................................................... 37 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) ........................................................................................................... 38 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ................................................................. 42 CONSOLIDATED BALANCE SHEET .................................................................................................. 43 CONSOLIDATED CASH FLOW STATEMENT ............................................................................................ 44 NOTES TO THE ACCOUNTS ......................................................................................................................... . 45

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Acknowledgement

The Millennium Awards Trust was endowed by the Millennium Commission with a National Lottery grant of £100 million as a permanent source of grants for social entrepreneurs throughout the United Kingdom to develop their own skills and talents, and to contribute to the community.

The Millennium Commission was set up in 1993 to distribute National Lottery funds as grants to fund initiatives to mark the year 2000 and the beginning of the third millennium. The Commission’s £100 million grant to the Millennium Awards Trust will ensure that Millennium Commission funds will continue to benefit individuals and communities in perpetuity.

Descriptions

This report details the 2022-23 activities of the Foundation for Social Entrepreneurs (UnLtd) and its subsidiary charities and companies: the Millennium Awards Trust, UnLtd Scotland, FSE Management Services Ltd, UnLtd Impact Support Company Ltd, UnLtd Venture Growth Support Ltd, and UnLtd Social Investments Ltd.

UnLtd (The Foundation for Social Entrepreneurs) is a company limited by guarantee with charitable status.

The Millennium Awards Trust is a charity established by Trust Deed. UnLtd is the Corporate Trustee of the Millennium Awards Trust.

UnLtd Scotland is a company limited by guarantee in Scotland and is a subsidiary of UnLtd. Since 2016, staffing support for awards delivered in Scotland has been provided by this company.

FSE Management Services Ltd is a company limited by guarantee and was incorporated on 10 March 2009. The sole member of the company is UnLtd. FSE Management Services Limited exists to deliver contracts for services to funders, particularly government and related agencies, to support social entrepreneurs.

UnLtd Impact Support Company Ltd is a company limited by share capital and was incorporated on 7 September 2017. The sole shareholder of the company is UnLtd. UnLtd Impact Support Company Ltd exists to provide much needed repayable finance to social ventures.

UnLtd Venture Growth Support Ltd is a company limited by share capital and was incorporated on 13 September 2018. The sole shareholder of the company is UnLtd. UnLtd Venture Growth Support Ltd exists to provide accessible and inclusive growth capital to social ventures.

UnLtd Social Investments Ltd is a company limited by share capital and was incorporated on 17 March 2022. The sole shareholder of the company is The Foundation for Social Entrepreneurs (UnLtd). UnLtd Social Investments Ltd is a shareholder in the General Partner of Growth Impact, L.P., an English private fund limited partnership. Additionally, UnLtd Social Investments Ltd provides investment advisory services to Growth Impact, L.P.’s Fund Manager.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees of the Foundation for Social Entrepreneurs (UnLtd)

Name This Resignation date(if applicable)
Amma Mensah 4 June 2018
Anne Glover 4 June 2018
Elizabeth Sideris 5 June 2017 6 June 2023
GaryStewart 2 June 2021
Gillian Gamble 3 June 2020
James Endean 20 March 2023
James Lawson 5 June 2017 6 June 2023
Krishna Vishnubhotla 5 June 2017
Mahamed Hashi 2 June 2021
Naveed Parvez 3 June 2020
Nicholas Farhi(Chair) 9 June 2014
Rachel Barton(Vice-Chair) 5 June 2017
Vanessa Johnson-Burgess 13 December 2022

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Board Sub-Committees of the Foundation for Social Entrepreneurs (UnLtd)

Finance and Audit Investment MAT Awards Nominations,
Remuneration, and
Governance
Strategy and
Development		 Social
Entrepreneur
Support		 Investments Board
Krishna
Vishnubhotla(Chair)		 Anne Glover (Chair) Nic Farhi (Chair) Elizabeth Sideris
(Chair)		 Rachel Barton
(Chair)		 Amma Mensah
(Chair)		 Krishna
Vishnubhotla
James Endean
(IncomingChair)		 James Lawson
(Vice Chair)		 Gillian Gamble Nic Farhi Gary Stewart Elizabeth Sideris James Endean
James Lawson David Lindstrom* Dolly Padalia * Naveed Parvez Naveed Parvez Mahamed Hashi Francesca
Sanderson *
Mahamed Hashi Hosein Khajeh-
Hosseiny *		 Samantha Evans * Vanessa Johnson-
Burgess (Incoming
Chair)		 Nic Farhi Mark Norbury**
Nick Brooks * James Broderick * Elizabeth Douglas * Raymond Tran**
Nick Petford * Samantha Evans *
Susan Seymour *

* Non-Trustees

** UnLtd staff

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Key Information

Chief Executive Officer

Mark Norbury

Trustee of the Millennium Awards Trust

The Foundation for Social Entrepreneurs (UnLtd) is the sole Corporate Trustee of the Millennium Awards Trust, appointed by the Millennium Commission upon the Trust’s establishment on the 27 January 2003.

Protector of the Millennium Awards Trust

The Protector of the Millennium Awards Trust is Lady Justice Carr DBE, who was formally appointed on 27 January 2021 by the Secretary of State for Digital, Culture, Media, and Sport.

The Protector’s current term of office will end on 26 January 2024. On 15 June 2023, it was announced that Lady Justice Carr has been appointed the Lord Chief Justice of England and Wales, effective from 1 October 2023. The demands of the new role unfortunately mean Lady Justice Carr will be unable to remain as Protector. The Board would like to express their gratitude for Lady Justice Carr’s unstinting commitment to and exceptional work for the Millennium Awards Trust. Their work has been a crucial and integral component of the Trust’s successes over the past 3 years. An open-call recruitment process will be conducted in Q2 2023-24 to identify Lady Justice Carr’s successor.

The Protector’s fiduciary duties are to ensure the integrity of the administration of the Trust and the propriety of its procedures.

Principal Office

123/127 Whitecross Street Islington London EC1Y 8JJ

Independent Auditors

PKF Littlejohn LLP 15 Westferry Circus, Canary Wharf London E14 4HD

Internal Auditors

BDO LLP 55 Baker Street London W1U 7EU

Bankers

Barclays Bank plc. Hatton Garden Medium Business 99 Hatton Garden London EC1N 8DN

Triodos Bank Brunel House 11 The Promenade Bristol BS8 3NN

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Investment Managers

Barclays Wealth Management Barclays, level 12 1 Churchill Place London E14 5HP

The Charities Property Fund Cordea Savills 33 Margaret Street London W1G 0JD

GMO UK Limited No 1 London Bridge London SE1 9BG

GuardCap Asset Management 6th Floor, 11 Charles II Street London SW1Y 4NS

Dimensional Fund Advisors Ltd 5th Floor 20 Triton Street London NW1 3BF Goldman Sachs Asset Management Plumtree Court 25 Shoe Lane London EC4A 4AU

Wellington Management International Cardinal Place 80 Victoria Street London

HICL 12 Charles II Street London SW1Y 4QU

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

INTRODUCTION AND OVERVIEW

Thank you for your interest in UnLtd – the Foundation for Social Entrepreneurs. In a financial year (2022/23) which has seen the lingering effects of the pandemic continue and the cost-ofliving crisis escalate, we need social entrepreneurs - with their drive, ideas, and lived expertise - more than ever.

This year, in partnership with Big Issue Invest and Shift, we designed and launched the Growth Impact Fund (GIF). The fund provides social investment for fast growth, high-potential social purpose organisations - which are led by individuals from under-represented backgrounds and which tackle inequality in the UK. Our two pioneer investees were Neuropool and DWRM. Neuropool is on a mission to get 10,000 neurodivergent people into work by 2030 while DWRM is dedicated to increasing access to education for those impacted by the justice system. To date, the fund has approved seven investments.

After a successful pilot, Movement for Change, our three-year partnership with Sport England also launched. Part of Sport England’s 10-year vision to transform lives and communities through sport and physical activity, we’ll help physical sport social entrepreneurs create impact by working with those most marginalized from these activities. Over the course of the partnership, we’ll make 80 awards with £800k of grant funding, offer tailored support and improved access to resources - supporting those social entrepreneurs to deliver and scale their businesses and build financially resilient and sustainable physical sport-focused ventures.

Following on from the enormous success of the Entrepreneur Ship 2021, where Guy Rigby and David Murray became the oldest pair ever to row across the Atlantic, raising £653k in the process - two new rowers are now in training for this year’s World’s Toughest Row. Once again, all proceeds raised will go towards the Technical Assistance Fund of GIF. This helps us to provide wraparound business support and flexible grant funding for diverse-led social enterprises, to assist them in scaling up their business and their social impact, creating a clear pathway to growth investment.

While we have launched initiatives this financial year, a couple also came to an end. One of those was the Social Enterprise Support Fund (SESF), delivered by five partners – UnLtd, Big Issue Invest, Resonance, School for Social Entrepreneurs and the Key Fund. Initially set up in 2020 to respond rapidly during the pandemic, SESF has focused on reaching marginalised communities and promoting inclusion. It provided £16.3 million of grant funding in 2022/23, supporting 500 social enterprises and exceeding its inclusion ambitions. Sunderland Bangladesh International Centre was one such venture to benefit. The centre was started to meet the needs of the Bangladeshi community in the city of Sunderland.

Our e-commerce accelerator with eBay for Change, Selling Social, also ended this year. This multi-million-pound initiative focused on supporting and providing grant funding to entrepreneurs from underserved communities, giving them the freedom to adopt new strategies. More than 50% of programme participants were from a Black or minority ethnic community and / or had a disability. eBay for Change has created a community of social enterprise sellers who support each other as they tackle a huge range of social and

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

environmental issues. With eBay’s experience in e-commerce, we’ve helped these businesses maximise their impact, drive consumers to their products and engage them in their mission at a time when the need for social entrepreneurs’ services is soaring.

Over the last three years our expenditure baseline grew from £7.9m to £9.25m. The income from our endowment, the Millennium Awards Trust, only covers a portion of this; with the rest raised through external partners. In 2022/23 it became clear that our current cost base was unsustainable. After careful consideration we decided that a £1.3m reduction in budget was necessary. We conducted a detailed operational cost review and reduction exercise in the summer. At the beginning of 2023 we then consulted our team on a 15% reduction in headcount, which we have now completed following three rounds of careful consultation and dialogue. This has been a difficult process for us all, but as we continue to reflect and learn from our experiences, we do all we can to best support our social entrepreneurs.

Looking ahead to the coming year, we will be focused on continuing to turn our Breaking Down Barriers strategic ambitions into material impact and value for social entrepreneurs. Building on our strong start with our Growth Impact Fund, we’ll continue to improve equitable access to finance, sharing our bright spots and learnings transparently as we do. We’re also shifting gear in Movement for Change, our partnership with Sport England, moving from a successful pilot to a full programme of funding and support, finding new ways to provide market leading support to social entrepreneurs as we do. We remain an ambitious and diligent champion of social entrepreneurs, directing our resources efficiently and effectively to maximise our impact.

The board are confident that our strategy and the current spectrum of work will allow UnLtd to make even better progress in the years ahead and continue to support social entrepreneurs to create a fairer and healthier world.

Nicholas Farhi Chair of the Board of Trustees

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE, AND MANAGEMENT

Nature of governing document

The Company is also a Charity governed by its Memorandum and Articles of Association dated 15 March 2001 as amended 30 November 2001, 24 October 2002, 29 March 2004, 26 September 2005, 29 January 2008, 23 July 2010, 21 June 2013, and 8 December 2014. Its registered charity number is 1090393 and its Company number is 4180639.

How Trustees are recruited and appointed

Trustee nominations are reviewed by the Nominations, Remuneration, and Governance Committee. Proposed Trustee appointments are then recommended to the full Board for approval. Trustee recruitment is always done via an open recruitment process, with the support of professional recruitment firms, to ensure a diverse range of candidates. The maximum number of Trustees is usually 11 including the Chair. However, in exceptional circumstances, up to 4 additional Trustee appointments can be made.

Trustees retire from office at the Trustees’ meeting closest to the third anniversary of the commencement of their term of office. Retiring Trustees may be reappointed for a second term of office and, in exceptional circumstances, a third term of office.

Policies and procedures for induction and training of Trustees

UnLtd has a standard induction and training programme for all new Trustees. This includes meetings with UnLtd’s Executive Team and Trustees, visits with UnLtd social entrepreneurs, and a detailed induction pack. Trustees are encouraged to take up the opportunity to attend relevant external training courses and conferences, as well as to participate in award panels.

Organisational structure

UnLtd’s structure is as follows:

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Across the reporting period, we conducted work to identify the long-term, sustainable costbase for UnLtd. Working as a lean and efficient organisation, this is the funding we can reliably generate year-in-year-out, and it’s also the resourcing we need to deliver on our MAT commitments and our Breaking Down Barriers strategic ambitions. Any additional income we generate on top of this will be used to generate impact inclusively, but through consultants / fixed term / temporary people, rather than permanent staff.

Getting to this cost level required a £1.3M reduction in budget. As a result, we took the very difficult decision to reduce FTE headcount by 15%.

The overall structure of the organisation, with 4 main directorates, remains unchanged, and we introduced a small number of new roles (e.g. User Journey Support Manager; Community Officer; Chief of Staff) to set us up well to deliver on our ambitions.

Staff working on Millennium Awards Trust activities are employed by UnLtd as trustee of the Trust and therefore there is no taxable supply of staff.

Trustee oversight

UnLtd’s CEO and team are accountable to its Board of Trustees. The Board set the overarching strategic approach and policy framework within which UnLtd operates. Trustees have a responsibility to act collectively to ensure the proper administration of the Charity. They must safeguard the assets of the Charity to ensure that these assets and resources are only used in furtherance of the objects of the Charity. They have regard to the Charity Commission’s requirements, including their guidance on public benefit. Trustees must act in the best interests of the Charity and must avoid any conflict between their personal or outside interests and those of the Charity.

UnLtd’s internal governance is strong, and the organisation is committed to continuous improvement. The Board has committed to following the principles and standards laid out in the Charity Commission’s Charity Governance Code (launched in 2017).

This includes the commitment to commissioning an external review of the organisation’s governance processes every three years. In 2021, Peridot Partners conducted an independent review of the UnLtd Board of Trustees. The review recognised the Board’s robust controls and governance and provided a series of recommendations to further improve collaboration, efficiency, and inclusivity. These recommendations have been implemented and are working well.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

  1. The Board of Trustees of UnLtd exercise their responsibilities in three ways:

  2. Establishing and monitoring effective governance structures

  3. Establishing clear policies and guidelines

  4. Employing competent and professional staff and advisers

  5. The Board of Trustees meets quarterly and considers the following:

  6. Regular business and standing items including declarations of interest, minutes, matters arising, minutes from Board Sub-Committees, and the Chief Executive’s Report, which describes strategic activity and seeks approval for proposed developments.

  7. Strategic papers inviting discussion and decisions from the Board.

  8. Regular reports from UnLtd’s subsidiary companies.

  9. Regular reports on key performance indicators and impact measures.

  10. Annually the Board of Trustees approves:

  11. 3-Year Plan

  12. Annual Budget

  13. Annual Risk Management Strategy

Every three to five years the Board of Trustees approves a long-term strategy for UnLtd, which it did in 2020. The Board will be conducting its next review in Q1-2 2023-24.

Every five years the Board considers a full investment review. The investment was last conducted in February 2019.

The maintenance of effective Internal Control is the responsibility of the Chief Executive for which he is accountable to the Board through the Finance and Audit Committee. The policy framework through which UnLtd achieves effective Internal Control is contained in:

UnLtd has appointed two separate professional firms as External and Internal Auditors. Both advise the Finance and Audit Committee and report directly to Trustees.

UnLtd strives to have the highest standards and has agreed a programme of Internal Audit with its Finance and Audit Committee and Internal Auditors. The Internal Auditors report to the Finance and Audit Committee. Reports are received throughout the year and action is agreed with management and the Finance and Audit Committee.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

OBJECTS AND ACTIVITIES

Objects of the Charity

The Foundation for Social Entrepreneurs operates under the trading name UnLtd, and is the parent company of the following entities:

The objects of the Foundation for Social Entrepreneurs are:

Millennium Awards Trust

Constitution and objects of the Millennium Awards Trust

The Millennium Awards Trust is governed by its Trust Deed, made on the 29 January 2003 between the Millennium Commission and the Foundation for Social Entrepreneurs.

The Objects of the Trust are to relieve poverty, promote education and training, and advance other charitable purposes beneficial to the community.

The Objects are to be carried out only by awarding grants of money to, and providing services, facilities and other forms of assistance for individuals resident in any country or territory within the United Kingdom of Great Britain and Northern Ireland and the Isle of Man.

Role of the Foundation for Social Entrepreneurs (UnLtd) in the operation of the Millennium Awards Trust

The Millennium Awards Trust Charity operates through its Trustee, the Foundation for Social Entrepreneurs. The Trustee holds the Endowment on Trust, and shall apply the income arising from the Endowment in furtherance of the Objects. The Trustee may reimburse itself from the income of the Trust in respect of amounts required for the administration of the Trust.

Relationship between the Foundation for Social Entrepreneurs (UnLtd) and the Millennium Awards Trust

The Foundation for Social Entrepreneurs (UnLtd) is the sole Corporate Trustee of the Millennium Awards Trust.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Protector of the Millennium Awards Trust is entitled at any time (after having obtained advice) to appoint an additional Trustee or Trustees to act jointly with the Trustee (the Foundation for Social Entrepreneurs (UnLtd)) or to remove any Trustee (including the Trustee) and appoint new Trustees if he/she considers such actions to be in the interests of the Trust.

The Protector’s fiduciary duty is to ensure the integrity of the administration of the Trust and the propriety of its procedures, and if necessary report matters of serious concern to the National Lottery Community Fund, the Charity Commission and, where the Protector considers it appropriate, the Secretary of State for Digital, Culture, Media, and Sport.

The Protector of the Millennium Awards Trust is Lady Justice Carr DBE, who was appointed on 27 January 2021 by the Secretary of State for Digital, Culture, Media, and Sport.

The Protector is entitled to receive from the Trust:

During the reporting period, the Protector claimed no out-of-pocket expenses or remuneration.

In 2022-23, the Protector received the agenda and papers for all Board meetings of UnLtd, UnLtd Scotland, and the Millennium Awards Trust. The Chief Executive meets with the Protector quarterly.

UnLtd Scotland

UnLtd Scotland is a Company Limited by Guarantee with UnLtd as the sole Member. UnLtd Scotland employs its own staff to support awards activity in Scotland. UnLtd ensures close collaboration with other organisations working with social entrepreneurs in Scotland, such as Firstport, to avoid replication and to maximise the impact for Scottish beneficiaries. Millennium Awards in Scotland are governed by UnLtd’s Awards and Delivery Committee.

FSE Management Services Ltd

The object of the company is to conduct business as a general commercial company to procure profits and gains for the purposes of paying them to The Foundation for Social Entrepreneurs (UnLtd) or any other charitable body which succeeds to its charitable purposes.

UnLtd Impact Support Company

The object of the company is to operate on a charitable, philanthropic, benevolent, and notfor-profit basis in fulfilling its purpose of distributing the funds received from the Access Foundation Growth Fund. As such it shall distribute and apply all funds that it receives pursuant to the terms of the External Delegation Agreement and the Loan Agreement agreed with Access Foundation for the benefit of The Growth Fund.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

UnLtd Venture Growth Support

The object of the company is to operate on a charitable, philanthropic, benevolent, and notfor-profit basis in fulfilling its purpose of distributing social impact funds, designed to create social good. The main activity of the company is the operation of UnLtd Thrive Fund.

UnLtd Social Investments Ltd

The objects of the company are to:

Charity’s aims

UnLtd’s mission is to find social entrepreneurs with bold solutions to today’s challenges. Through funding and support, we help them to realise their potential and create lasting change.

To achieve this mission, UnLtd provides direct funding and support to social entrepreneurs, primarily in the form of awards funded by the income generated by the £100 million Millennium Awards Trust endowment. This was created as a permanent source of grants for individuals throughout the United Kingdom to develop their skills and talents, and to contribute to the community. UnLtd Award Winners receive a complete, tailored package of money, training, advice, and networking, along with pro bono support from leading professionals and companies.

UnLtd raises further funds to support a wider pool of social entrepreneurs and to help them maximise their impact, sustainability, and scale. In addition to providing direct support, we use this funding to address the barriers these social entrepreneurs face as they grow, contributing to the creation of an enabling environment where enterprising people can transform our society for good.

In pursuing our mission, UnLtd’s Board of Trustees has regard to the Charity Commission’s general guidance on public benefit. UnLtd creates public benefit by developing social leaders and supporting them to achieve large scale social and economic impact. We are committed to understanding the impact of our social entrepreneurs and improving the quality of our support.

Volunteer help

Through our Connect programme, we work with independent volunteers and corporate partners who provide specialist pro-bono support, expertise, and mentoring services to help social entrepreneurs develop their business skills and increase their impact.

In 2022-23, we worked with 400+ volunteers across a variety of industries, engaged 30+ partner organisations and ran 7 learning events with our corporate partners. We facilitated 284

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

connections for 189 social entrepreneurs, increasing our reach year-on-year. Exceeding our inclusion target, 58% of the social entrepreneurs our volunteers supported identify as Black, Asian or Minority Ethnic and/or disabled, and 69% identify as female or non-binary.

Support provided by volunteers ranged from legal advice (inc. intellectual property, corporate structuring, and consumer-facing terms and conditions) to tailored mentoring (from one-off conversations through to coaching and long-term mentoring).

UnLtd also benefitted from significant pro bono legal support from Dechert LLP on the design and launch of the Growth Impact Fund. Their advice, expertise, and generosity were essential to the project’s completion. The Trustees would like to extend our gratitude to the Dechert team, as well as excitement about our future work together.

“ …It’s helped so much and has saved me so much money that I can now put into impacting people’s lives positively .” Maaha Suleiman, Care Matched

“… I am so grateful for the support, wisdom and sense that my mentor brings. I have had mentors in the past but (my mentor through UnLtd) is, by far, the one I feel most understands and can relate to the issues and challenges I am facing. I feel the time we spend together to be a real gift to me and to the organisation.” Joyce Murray, Founder, Grace Chocolates

Main policies and procedures

In developing its policies and procedures, UnLtd’s Board is aware of the Charity Commission’s general guidance on public benefit. Our approach is designed to further our mission and objects to deliver identifiable benefits to the public.

Award Making

UnLtd Millennium Awards are for people:

The Awards Scheme has 2 principal levels of Awards:

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Both awards include a minimum of 1 year of support from a Social Entrepreneur Support Manager, access to workshops, mentoring and coaching.

In addition to our Awards, UnLtd has two focus areas where social entrepreneurs can make a big difference:

We have dedicated teams and specialist support available to social entrepreneurs with ideas to help people in these areas.

UnLtd are committed to using resources to drive change. At least 50% of Awards will support social entrepreneurs who come from a disabled and/or Black, Asian or minority ethnic background and distribute awards closely in line with population data to ensure fair UK wide distribution.

UnLtd’s external partner programmes often provide grants of similar value to Millennium Awards.

Recognising that some social ventures require more financial support to be able to grow and scale their impact, UnLtd has worked to provide investment opportunities. In partnership with Big Issue Invest, UnLtd has designed and launched the Growth Impact Fund. The fund is focused on providing diverse-led and inequality-focused social ventures with the investment and support they need to thrive. The fund began making its first investments in March 2023.

Remuneration Policy

UnLtd’s remuneration policy is based on the following principles.

Principle 1: The remuneration package offered by UnLtd should be fair, open, objective, responsible and effective, in keeping with UnLtd’s values and status as a charity, and in keeping with the fact that UnLtd’s income derives largely from public and charitable sources.

Principle 2: The remuneration package offered by UnLtd should enable it to recruit and retain the high calibre staff required to achieve its aims and objectives.

Principle 3: The reward package offered by UnLtd should take account of salaries in the markets from which it recruits its staff, balancing internal equity with external competitiveness.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Principle 4: UnLtd regards the opportunity to contribute to major social change in our society as a reward.

Principle 5: The remuneration package should provide equal reward for equal contribution to the achievement of UnLtd’s aims and objectives.

Principle 6: UnLtd will expect to invest in the development of its people where this contributes to the achievement of UnLtd’s objectives and the reward package should provide opportunities for learning and development.

We are currently reviewing our pay progression framework and will be introducing a new competency-based approach in March 2024.

Remuneration of the Chief Executive

The pay level of the CEO was £135,746 for the financial year 2022-23.

Our Nominations, Remuneration, and Governance Committee oversees the appraisal and performance review of the CEO. The current remuneration for the CEO was assessed as appropriate to the ambition of the Charity and the performance of the CEO.

The Committee takes into consideration the recommendations of the NCVO Report, Setting and Communicating Remuneration Policies . The Committee and the CEO have agreed for the remuneration level to be made public, as recommended in the NCVO report.

Remuneration of other staff

Decisions on remuneration of the other staff have been set in line with the remuneration policy. Responding to high rates of inflation in the UK economy, all UnLtd staff received a range of cost of living increase up to 6% at the end of the reporting period.

Redundancy payments of £79,055 (2022: £2,225) were paid to ten individuals. The total employer pension contribution amounted to £199,600 (2022: £183,613)

Complaints Procedure

We take all complaints very seriously and have designed a comprehensive policy to reflect this. The purpose of UnLtd’s complaints policy is to set out how we will investigate complaints made by individuals. Our aim is to resolve issues and learn from any mistakes. You can view our complaints policy at: https://www.unltd.org.uk/uploads/general_uploads/UnLtd_Complaints_Policy.pdf

Nine formal complaints were received across the reporting period. Eight of the complaints were resolved following engagement between the complainant and the Director for Social Entrepreneur Support. One complainant chose to escalate their complaint to the Chief Executive Officer, who reviewed all relevant information and formally responded to the complainant within 48 hours and it has since been resolved.

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Business Continuity Strategy

It is the policy of UnLtd to protect the assets and records of the organisation and to ensure the wellbeing and safety of its employees in the working environment. As part of this policy, UnLtd maintains a business continuity plan to cover the restoration of the service and functions carried out at London Headquarters following a disaster of sufficient magnitude to affect the day-to-day operation of the organisation, either as a whole or in part.

The Corporate Services directorate supports staff who choose to work remotely, ensuring they’re able to do so effectively and securely.

Risk Management Strategy

UnLtd has a structured approach to risk management, supported by a Risk Management Strategy which:

The Chief Executive Officer is responsible for conducting a comprehensive risk analysis from which the Risk Management Strategy is produced. The Finance and Audit Committee first considers this and makes recommendations thereon to the Board.

UnLtd maintains a risk register, which it reviews annually. The risk register is used by management to manage key risks and is also used to inform the internal audit planning process. In March 2022, UnLtd’s internal auditors, BDO, conducted a workshop with the Board to refresh and further develop Trustees’ understanding of risk management practices.

Investment Strategy

UnLtd has a mission to find, fund and support social entrepreneurs. We do this through:

The Millennium Awards Trust (MAT) is an endowment (valued at £100 million when it was established). The Board of UnLtd, in its capacity as Trustee of MAT, is responsible for the investment of the endowment. The Trust Deed for MAT stipulates that we must seek to

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

maintain initial real value in managing the endowment. Initial real value (IRV) is calculated by applying CPI to the initial £100 million since the inception of the fund.

The Trustee may exercise the power of investment provided it has first taken proper investment advice. We delegate to the UnLtd Investment Committee (IC) the tasks of advising us on the full range of investment issues including policy, strategy, the appointment and monitoring of professional advisers, and the monitoring of performance. The expertise, engagement and generosity of our IC members enables us to manage our endowment well at low cost.

The UnLtd Board establishes and agrees the principles and policies for our investment management, which the IC then puts into practice. We are conscious of our responsibilities as an asset owner. The requirements of the Trust Deed have an overriding influence on investment decisions.

Consistent with our beliefs, we have been a signatory to the UN-sponsored Principles for Responsible Investment (see below) since February 2013:

  1. To incorporate Environmental, Social and Corporate Governance (ESG) issues into our investment analysis and decision-making processes

  2. To be an active owner and to incorporate ESG issues into our ownership policies and practices

  3. To seek appropriate disclosure on ESG issues by the entities in which we invest 4. To promote acceptance and implementation of the Principles within the investment industry

  4. To work with the PRI Secretariat and other signatories to enhance their effectiveness in implementing the Principles

  5. To report on our activities and progress towards implementing the Principles

UnLtd has a duty to act in the best long-term interests of our beneficiaries. We believe that environmental, social and governance (ESG) issues can and do affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time). We also believe that investment portfolios can and do affect our beneficiaries.

We will therefore seek to advance ESG goals, seek positive impact, and avoid negative impact, through our investment management, subject to the obligations of the Trust Deed and in accordance with trust law.

As part of this, we will continue to educate and challenge ourselves, our advisors and our investment managers to be aware of opportunities and risks related to maintaining real value, UnLtd’s income needs and ESG factors.

Asset Allocation

We invest to meet the various objectives of the Trust Deed. In practice this involves investing across a number of different broad asset classes (e.g., equities vs bonds vs cash), balancing expected return, risk, volatility, income, impact, and operational considerations.

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We review strategic asset allocation formally every five years, as part of an overall Investment Review. Our asset allocation aims to provide an optimum balance between stable income – necessary to meet UnLtd’s operational needs - and maintaining real value.

Selection and Management of Investment Managers

The IC actively seeks out, selects, and manages a focused group of external investment managers whom we believe will best achieve our overall goal (to maintain real value) while also being true to UnLtd’s mission and our values.

When selecting investment managers, we will prioritise those whom we are confident, based on evidence and appropriate due diligence, will meet the obligations of the Trust Deed (including seeking to maintain initial real value), that will meet the operational needs of UnLtd and that will generate net positive ESG outcomes and impact.

We expect our investment managers to act as responsible investors. In appointing them, we consider whether they might behave in ways that conflict with our charity’s aims, alienate our benefactors, or make our beneficiaries unwilling to accept our support. In managing our assets, they are asked to take account of ESG factors, and to disclose how their engagement with the companies they invest in is helping to meet our goals, including our ESG goals.

Where our investment managers knowingly act against our goals, mission, principles, and values, we will consider what action to take.

The IC will report back to the UnLtd Board annually on how investment managers have advanced our goals, including our ESG goals. The IC will also report on its selection of investment managers, and how ESG factors were considered in the process.

External Advisors

We use external advisers to assist us in carrying out Investment Reviews. We may also use advisers on an ad hoc basis when the need arises e.g. to assist in the selection of managers in particular asset classes.

The performances of the whole portfolio, and of individual components within it, are monitored against their respective benchmarks on a quarterly basis. Managers are asked to attend IC meetings periodically. Managers with any significant performance or organisational changes or challenges are subject to intensive review.

Direct Social Investment

UnLtd recognises that affordable, flexible, patient social investment is a vital part of what high growth, high impact social ventures need. The gap in equity investment is particularly acute. This is why UnLtd established the Big Venture Challenge and, since 2017, the Impact Fund and Thrive Funds. All these programmes have been funded by external partners.

When backing individual social entrepreneurs as an equity or debt investor, UnLtd’s programmes seek to break even financially, while generating significant positive social impact. As such, capital invested via these programmes does not offer market rates of return. For

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

example, our external partners on the Thrive Fund have mostly structured this funding with us as repayable grants.

Direct programme- or mission-related investments through MAT are not permitted by the Trust Deed. Achieving the best returns across the full range of MAT investments allows UnLtd to best support social entrepreneurs.

UnLtd is however able to deploy its unrestricted reserves to make direct programme- and mission-related investments. Our reserves policy at present is to hold 3 months of non-MAT related operating overheads in unrestricted reserves. Where we have unrestricted UnLtd reserves in excess of this amount, we may prioritise opportunities to use these to make direct programme- and mission-related investments.

Financial instruments and associated risks

UnLtd, through investment in various funds as determined by its investment strategy, maintains positions in a variety of derivative and non-derivative financial instruments from time to time. UnLtd’s investing activities expose it to various types of market risks that are associated with the financial instruments and markets it invests in.

Market risk includes currency risk, interest rate risk and price risk. The market risk management strategies of the funds UnLtd invests in are driven by the funds’ investment objectives. The investment managers employed by UnLtd are instructed to manage risks in accordance with agreed policies and procedures.

Other than for its management of the Endowment, UnLtd does not use financial instruments.

Reserves policy

Unrestricted reserves are the accumulation of unspent unrestricted income. UnLtd unrestricted reserves have the greatest flexibility and can be used on any UnLtd activities. MAT unrestricted reserves can only be used on MAT activities.

Trustees of UnLtd have set the following reserves policy for MAT and for UnLtd.

The Millennium Awards Trust

Income from Millennium Awards Trust (MAT) endowment, from dividends and interest, is used to further the Objects of the Trust. The returns from financial markets, and therefore income available to run the Millennium Awards scheme, tend to fluctuate from year to year and on occasions these fluctuations can be significant. An income reserve has been established to provide a buffer between market fluctuations and spending levels for the Trust. This buffer is vital in providing certainty to short term cash flow requirements thus enabling a medium-term asset allocation in line with a close to total return investment strategy.

The target range of optimum reserves level is between 1.5 and 2 years of MAT expenditure. At the end of March 2023, MAT unrestricted free reserves totalled c£9.9M (equivalent to 22 months of anticipated MAT expenditure).

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UnLtd

Where UnLtd’s activities are performed to further the Objects of MAT, UnLtd will not build a separate reserve - rather, it will rely on the reserves of the MAT.

The majority of our funds for non-MAT activities comes in the form of a number of long-term contracts. The principal risk is therefore circumstances which cause an unexpected cancellation of a portion of our contracts, leading to unfunded close-down costs of typically 3 months’ expenditure. Most of the contracts are multi annual, so the risk is mitigated by ongoing work.

In addition to unfunded close-down, UnLtd also requires free reserves to support innovative initiatives such as our social investment portfolio or new support offer design.

The target range of optimum reserves level is between 3 and 6 months of externally funded UnLtd expenditure.

At the end of March 2023, UnLtd’s unrestricted general reserves totaled £1.2M (equivalent to 6 months of 2023/24 externally funded UnLtd expenditure).

In addition to this Trustees designated £250k of the unrestricted reserves in the Growth Impact Fund. During the year, £26,792 was invested with a balance of £223,208 at the year end.

Being a responsible business

UnLtd, along with its subsidiary entities, is committed to being a responsible business.

From a financial perspective, UnLtd has a rigorous control process, including relevant AML and KYC checks, to ensure that all payments and transfers are made safely, to known and eligible individuals, and in compliance with all relevant regulations.

From an ethical perspective, UnLtd actively reviews all potential partner organisations to ensure they align with UnLtd’s values and principles.

From a climate perspective, UnLtd has a cross-organisation Climate Action Group. Already a participant to the Funder Commitment on Climate Change, UnLtd will be pursuing a range of actions over the coming 12 months to minimise their impact on the environment.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

STRATEGIC REPORT

In June 2022, we launched our new multi-year strategy Breaking Down Barriers (https://breakingdownbarriers.unltd.org.uk). Responding to what social entrepreneurs need most and building on where UnLtd is best placed to meet these needs, we’re focused on Breaking Down Barriers by delivering on four goals:

Moving through the first year with our new strategy guiding our progress, we’re pleased at what we’ve been able to offer social entrepreneurs and we’re excited about our future plans.

Across the year, we made 266 awards totaling £4.3m with 75% of this funding going to social entrepreneurs who identify as Black, Asian, or Minority Ethnic and/or disabled people, exceeding our 50% target.

We successfully supported another 500 social enterprises with £16M through our sector-wide partnership, the Social Enterprise Support Fund. This was the second time our partnership had come together, with the first being in 2020/21 to respond rapidly during the pandemic. We are keen to explore further opportunities to collaborate with our sector partners to bring our collective resources to bear for social entrepreneurs.

We also brought our e-commerce accelerator with eBay for Change, Selling Social, to a close this year. This multi-million-pound initiative focused on supporting entrepreneurs from underserved communities, backing them with grant funding and helping them pivot digitally and explore new e-commerce sales strategies.

Looking ahead to the work that will shape us over the coming years, we saw our 3-year partnership with Sport England, Movement for Change, launch. We’ll be supporting social entrepreneurs who use physical and sporting activities to create impact. Having completed a successful pilot to identify key barriers and opportunities to provide relevant, and sector specific support, we’re excited to really deliver a transformative offer which demonstrates the cumulative impact of social entrepreneurs in this industry and strengthens their financial viability.

Building on the success of our Impact and Thrive Funds, we launched the Growth Impact Fund, which we designed and will be running with Big Issue Invest. UnLtd made a £250K direct investment, contributing to the £8.165M raised for the Fund’s first close in December. With the Fund’s first investments now being made, we’re committed to supporting diverse-led social ventures with the flexible funding they need. We’ll also be staying close to everything

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

we learn about improving equitable access to finance, communicating this to the wider sector and helping shape a system that better serves social entrepreneurs. Market Leading Support

Our continuous improvement priorities for delivering market-leading support to social entrepreneurs across 2022-23 included work across the following key areas; • Reducing barriers to support by creating a psychologically safe environment. By embedding a trauma informed approach and developing a deeper understanding of the needs of neurodivergent social entrepreneurs we will be better equipped to meet the needs of the high percentage of social entrepreneurs with lived experience who receive our support and the increasing number of neurodivergent social entrepreneurs with whom we are now reaching

• Improving the consistency of onboarding and recording support to improve the consistency of experience and equity of access.

• Embedding equitable decision making across awards to focus decision making on impact, financial sustainability and inclusion and facilitating working alongside social entrepreneurs in decision making.

• Developing a suite of self-guided learning resources in E-Commerce following our partnership with eBay to ensure a positive legacy and learning to benefit social entrepreneurs beyond the lifecycle of the partnership.

• Increasing award values in line with social entrepreneurs needs and inflation following market research, and including the continuous support awards (CSAs) as detailed below:

Millennium Awards Trust Awards

Across 2022-23, we disbursed a total of 184 new MAT awards totaling £1.550m. This support includes awards we made through our open-call MAT awards programme; Access to Employment and Solutions for an Ageing Society impact areas; and Movement for Change and Ecwiti programmes, for which we provide MAT-funded match funding.

Additionally, we provided 63 Continuous Support Awards(CSAs) totaling £343,177. These awards are additional grants for existing award winners, providing them with the extra resources they need to expand their impact and aimed at closing the gaps for marginalised social entrepreneurs to achieve growth and financial sustainability.

The below table provides an overview of the ethnicity and disability characteristics of our new MAT awards for 2022-23:


MATawardsfor 2022-23:
Demographic
Characteristics
Award #
£ Award
% of Grand
Total by #
% of Grand
Total by £
Av £
**Req. **
Average £
Award
White 107
£912,434
60%
59%
£9,913
£8,527
Other ethnicgroup 5
£62,535
3%
4%		 £12,507
£12,507
Mixed/Multiple ethnicgroups 17
£175,791
9%
11%		 £10,527
£10,341
Black 37
£282,267
21%
18%		 £10,950
£7,629
Asian 13
£103,400
7%
7%
£7,798
£7,954
Inclusion Criteria (Black,
Asian, and Minority Ethnic
and/or Disabled		 112 £971,142 63% 63% £10,522 £8,671
The intersectionality of the data means the totals exceed 100%

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

In 2017–2018 77% of our awards were given to those who are White and on review of the previous two years data showed us that we were consistently not representative of the communities and areas we served when awarding scaling awards and we could do better with our start up award allocation too. We worked hard on understanding our outreach, systems, and bias. In 2020, we set an ambitious target for at least 50% of our awards to go to social entrepreneurs who identify as Black, Asian, Minority Ethnic and/or Disabled people. In 202223, 65% of awards met our inclusion criteria, and we’re pleased to go further than that this year.

As part of our ambition to become an increasingly data driven organisation, our team continues to strengthen and leverage our live data dashboards for application and award making pipelines to inform our decision making on a real-time basis.

Social Enterprise Support Fund

The SESF fund provided grants to help social enterprises rebuild from COVID-19 and was established in partnership with The National Lottery Community Fund, School for Social Entrepreneurs, The Key Fund, Big Issue Invest, and Resonance Foundation. The fund supported 500 enterprises with £16.1m of funding, £4.5m of which was awarded by UnLtd. UnLtd received 403 applications and awarded 99 grants, with the average award amount being £43,934.

Our priorities were to:

As a consortium a key objective was to reach the most disadvantaged communities across the country. 45% of awards were made in the most deprived quintile IMD, with 69% in two most deprived quintiles.

We exceeded diversity targets in all regions, overall, 69.8% of all successful SE applicants were classed as diverse led.

More information on some of the social enterprises we supported can be found here: https://socialenterprisesupportfund.org.uk/news/meet-som.e-social-enterprises-weve-funded

Selling Social

We continued our Selling Social programme, supported by eBay. Focused on supporting social entrepreneurs to improve their e-commerce offering, we invested over £3m across funding and support for 133 social entrepreneurs.

On our Selling Social Foundations programme, we supported social entrepreneurs with their product-market fit, customer analysis, pricing, and routes to market. We offered a suite of workshops, drop-in clinics, and peer support.

On our Selling Social Accelerator, participants received grants of £5,000, worked with e- commerce mentors to design growth plans, and were supported by digital marketing specialists to help them test their ideas to grow their online sales.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

59% of the programme participants identified as Black, Asian, minority ethnic and/or disabled people and whilst this partnership came to an end, it enabled us to support social entrepreneurs needing to pivot online and develop their eCommerce offer. We are applying this learning to maintain a strong legacy of this partnership.

Movement for Change

We launched ‘Movement for Change’ a 3-year partnership between Sport England and UnLtd. We are working together to support social entrepreneurs using physical and sporting activities to create impact by working with those who are most marginalised from these activities. By September 2025 we will:

We completed a pilot phase between November 2022 and February 2023. The pilot worked with, and tested, our support offer with 7 social entrepreneurs. Movement for Change moves into full programme delivery from April 2023 onwards.

Welsh Government / ECWITI

The Ecwiti programme was designed by the Welsh Government to support marginalised communities in Wales.

The programme placed particular emphasis on financing and supporting organisations led by marginalised individuals. This recognition stems from the impact of the Covid-19 pandemic, which has exacerbated pre-existing inequalities including amongst women, disabled individuals, ethnic minorities, and those living in areas of highest poverty, being disproportionately affected.

From December 2021 to March 2023, UnLtd and Social Firms Wales partnered to implement an initiative that provided financial backing and support to 18 social entrepreneurs in Wales.

Among these 18 entrepreneurs, 8 were women, 2 identified as non-binary, 7 came from Black, Asian, and Minority Ethnic backgrounds, and 7 are disabled people. Moreover, 5 of the awards were granted to individuals residing in the UK’s top 20% most deprived areas.

Investment

Across our Impact and Thrive funds, which are both fully disbursed, our Investment Team has moved to post-investment portfolio management.

Organisations within both portfolios are experiencing similar challenges as they seek to grow and scale their impact, including macro-economic pressures affecting customers’ spending appetite, an increasingly challenging recruitment and retention environment, founder, and senior management wellbeing, and ensuring sufficient liquidity to fund growth ambitions. Our

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Investment Team are working with all ventures in our portfolios to help them navigate the path towards improved sustainability and impact.

Building on the learning and progress from these funds, we have now announced the Growth Impact Fund, which we’ve designed and will be managing in partnership with Big Issue Invest. We know the social investment market isn’t working for many social entrepreneurs, and we’ve designed this fund to achieve 3 main objectives:

Since launch, the Growth Impact Fund has had 600+ applications with 76% from diverse-led ventures. The investment team has made two investments from the Growth Impact Fund, both which are previous UnLtd award winners:

• A £300K Equity Investment into Neuropool – which aims to get more than 10,000 people with neurodiverse challenges/abilities into employment by 2030. The company was established by Jack Dyrhauge, an Autistic / ADHD Entrepreneur, in 2019, whilst he was running a charity to help people with autism into employment. The organisation builds neurodiverse talent pools for leading brands like Universal Music Group, the Financial Times, and NTT Data from community and university programmes.

• A £150K Revenue Participation agreement in Doing What Really Matters (DWRM): a social enterprise that works with universities to offer degree courses to facilitate prisoner rehabilitation. DWRM’s Co-Founder Dan Whyte established the company after leaving prison in April 2021 with his co-founder, Ruth McFarlane, an educator and practitioner in the prison education field, Dan achieved undergraduate and postgraduate degrees while in prison and is now studying for a PhD in criminology at the University of Westminster. DWRM is a meaningful way to invest in the long-term systemic discrimination faced by prisoners and prison leavers.

We look forward to distributing more investment capital to the UK’s brightest social entrepreneurs, as well as working towards achieving our objectives for the Growth Impact Fund, sharing what we learn with the wider sector along the way.

Impact Teams

Access to Employment

• 64% of our funding was distributed to Black, Asian, Minority Ethnic and/or disabled social entrepreneurs.

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Healthy Ageing

Campaigning for a Just World

We remain focused on improving equitable access to finance, the right markets, and customers. In March, we were delighted to hear the Government announce that social investment will be one of four key strands for this next wave of Dormant Assets funding. The Dormant Assets Scheme uses money from forgotten bank accounts, and will soon be expanded to also include forgotten assets from other sectors including insurance and pensions, redirecting it to good causes. We, alongside our friends and partners across the sector, created the Community Enterprise Growth Plan, which we submitted to Government. Hundreds of social entrepreneurs fed their insights into our proposal, illustrating just how much of a difference social investment could make if channelled equitably and efficiently. With social investment now a pillar of the Government’s Dormant Assets strategy, we’ll be continuing to work with our sector partners and the Government to see how we can make this funding as equitable and effective as possible.

In early 2022, the Adebowale Commission on Social Investment delivered its vital report for the sector. The Growth Impact Fund is providing us with the opportunity to directly tackle the inequities and inadequacies identified by the Commission. In addition to the social investment and support we’re providing through the Growth Impact Fund, we’re also using our platform to engage the policy, investment, and VCSE sectors, discussing what the future of social investment should look like.

• In June 2023, we hosted our Growth Impact Fund launch event in Manchester, with 80+ social entrepreneurs, social investors, and sector partners coming together to explore the emerging bright spots and headwinds we’re facing as we seek to invest differently across the UK.

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Funding for Impact

We remain committed to working with social entrepreneurs with the most potential for impact in communities across the UK, who embody our values.

Over the last year, we’ve brought this aim into practical reality and have developed and introduced the criteria we’re now using to assess who we support. There are three main branches to our approach:

  1. UnLtd’s support must be able to help the social entrepreneur grow and develop. Where we’re not best placed to do this, we always seek to signpost to other resources.

  2. The social entrepreneur must demonstrate at least two of the following requirements:

  3. Meeting high levels of social need

    • Ambitions about making long-lasting change, and tackling the root

    • cause of problems

    • Designing and delivering effective interventions with a strong business

    • model

  4. The third is that at least 50% of our grant funding, investment, and support will go to social entrepreneurs from marginalised communities.

We’ve embedded our criteria in an assessment scorecard, which we’re now using across UnLtd. We have an active learning cycle and will explore improvements across the coming year.

The demand for UnLtd’s support has significantly increased across the past year, reflecting trends in the sector. We’re currently only able to support c.7-10% of the social entrepreneurs who apply for our funding. Staying true to our assessment criteria, we know we’re funding a diverse group of social entrepreneurs with excellent potential for impact, although the relative scarcity of our resources is making these decisions difficult.

Working Alongside Social Entrepreneurs

We remain committed to working together with social entrepreneurs across all we do.

At present, 5 of UnLtd’s Trustees are social entrepreneurs, bringing their diverse and direct experiences into the charity’s leadership.

At our September board meeting, we were led and supported by Foundervine CIC to organise an interactive and open series of discussions with a cohort of social entrepreneurs from their network. With many of them new to UnLtd, we discussed our strategic ambitions, support offer, and reach into communities who are currently underrepresented within our alumni community. The conversations were rich, and the perspectives were incredibly useful, and we’ll be continuing to do more of this over the coming year.

UnLtd’s award panels are now composed of 2 social entrepreneur panelists, 1 staff member panelist, and 1 chair. To ensure representation of our inclusion commitments we have

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

committed that at least 50% of the panel should identify as Black, Asian, Minority Ethnic and/or disabled. Our panels utilize clear assessment criteria and receive substantial training including specific EDI training on unconscious bias and microaggressions. We are pleased that we are embedding social entrepreneurs into our decision-making systems.

Organisational Health

People

UnLtd ended the financial year with a staff headcount of 58.8 full-time equivalents.

Across the reporting period, we conducted work to identify the long-term, sustainable costbase for UnLtd. Working as a lean and efficient organisation, this is the funding we can reliably generate year-in-year-out, and it’s also the resourcing we need to deliver on our MAT commitments and our Breaking Down Barriers strategic ambitions. Any additional income we generate on top of this will be used to generate impact inclusively, but through consultants / fixed term / temporary people, rather than permanent staff.

Getting to this cost level required a £1.3M reduction in budget. As a result, we took the very difficult decision to reduce FTE by 15%.

Pay Progression Framework

In November 2022, we completed our work on a competency-based pay progression framework. This will allow staff to have salary progression within their roles, with this progression grounded in an equitable and objective assessment of the level of behavioural competency they have achieved.

Our competencies are linked to the operational arms of our Breaking Down Barriers strategy: collaboration; continuous learning, impact; inclusion; and organisational health.

The detailed descriptors across all grades were co-created by our staff team and Innecto Reward Consulting.

We are rolling out the framework and it will be in use by March 2024.

Equity, Diversity, and Inclusion

We are on track with our action plan, which is overseen by our EDIB Steering Committee. The below provides an update on key areas.

Collaborating with colleagues on EDIB

We launched a new online homepage dedicated to EDIB in January 2023. This is hosted on our staff intranet to create a central space to ensure that staff are connected and informed on our progress.

Staff can now readily access the EDIB Steering Committee’s terms of reference, goals, agendas, and minutes, as well as get to know its members and share their recommendations directly and anonymously with the Committee.

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We also created an area on MS Teams dedicated to new ideas and collaboration; connected to our workshops and staff commitments across their teams. This aims to facilitate conversation, reflection, and application of the materials, and to connect with colleagues across the organisation.

Affinity Groups

Following on from the recommendations of our 2020 Equity Audit, we formed a Black leader’s space for our Black colleagues. We learnt a lot from this initial trial, and we’ve been keen to embrace and build on these lessons.

We re-established this group over the last year, this time creating an expanded affinity group of colleagues and social entrepreneurs of Black African and Black Caribbean heritage, who will come together for one day every quarter. Members have joined this group for many different reasons, including for professional development and networking, to join a collective voice, contribute to a community of support, celebrate blackness, build cultural awareness, and help influence positive change (internally and externally).

Learning & Development

We have renewed our learning and development offer for 2023/24, covering a range of learning goals: mandatory training, specialist skills, personal growth, leadership development and wellbeing.

Creating a more inclusive and equitable workplace is an ongoing process and continuing to learn about EDI is a long-term commitment. In that spirit, we have refreshed our extensive EDI learning curriculum for 2023/24 (year three of our plan) and shared additional learning resources with staff to complement their learning this year.

Systems

We have continued to improve our Dynamics 365 system by integrating a range of surveys, including the End of Award Survey, the Diagnostic Survey, and Satisfaction Surveys, as well as developing a place to record Support delivered to Award Winners.

We have worked with a Microsoft Partner, Transparity, to review and improve our data governance environment, our M365 and data security controls, and our device and software through Microsoft End Point Manager and Defender for Could Apps respectively. This work has significantly increased the robustness of our security and the performance of our devices.

Finally, we have recently launched a replacement to our Intranet (Igloo) with a SharePointbased intranet that we have branded The UnLtd Hub. This has a modern user-interface, it is a more user-friendly and flexible system, and it offers the organisation a much-improved internal communications tool.

Organisational Reporting

Our research and evaluation activities produce insights, evidence and learning that enable us to powerfully demonstrate our impact, build on successes, and learn from failures.

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THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Following implementation of our Breaking Down Barriers strategy, we’ve established a new reporting framework to measure and drive progress against our strategic goals.

This includes key performance indicators (KPIs), which we use to obtain a good sense of the organisation’s health, as well as objectives and key results (OKRs) linked to each strategic goal, with these serving as ambitious internal milestones. All this work is underpinned by our revised theory of change.

For 2022-23, our KPIs relevant to our award making are below:

Reporting area Summary insights FY 2022-2023
Social
entrepreneurs
from
marginalised
communities are
equipped to lead
ventures and
drive change.		 69%of social entrepreneurs we supported self-identified as
Black, Asian, minority ethnic, or having a disability, surpassing our
target of 50% set for the year.
An encouraging89%of the social entrepreneurs we supported
reported feeling more confident to act for social change after
engaging with UnLtd. This positive trend remains same for our
inclusion groups and represents an improvement compared to the
previous financial year, where the rate stood at 81% for our
inclusion group.
88%of the social entrepreneurs stated their expectation to
continue leading their ventures in 12 months. Notably, the rate is
even higher at92%for social entrepreneurs from our inclusion
group.
UnLtd’s support
is relevant,
accessible, and
responsive to
social
entrepreneurs’
needs, enabling
them to develop
their venture.		 91%of social entrepreneurs reported that UnLtd’s support was
relevant to their ventures’ social impact. However, the rate is
slightly lower among social entrepreneurs from our inclusion
groups at90%.
The overall Net Promoter Score of UnLtd was at81%, indicating a
positive perception of UnLtd. The NPS score from our inclusion
group is even higher at84%.
Social ventures
are financially
resilient and in a
position to
sustain or grow
their impact		 68%reported achieving increase in turnover compared to the
previous financial year. However, among our inclusion groups,
this rate is slightly lower at65%.
75%reported that UnLtd’s support made social entrepreneurs
more equipped to make effective business decisions.

33

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

Building upon these findings, we are committed to further strengthening our support and initiatives to empower social entrepreneurs and help them achieve even greater impact from their ventures.

Financial review

Fund raising performance

Partners and donors contributed over £6m of external funding to enable UnLtd to support social entrepreneurs in 2022-23, however it was a challenging year for securing new funding. Many of our closest partners and prospects were experiencing their own difficulties connected to rising business costs and several of our strongest prospects were forced to reduce, postpone, or cancel their commitment to social impact. As a result, we were unable to achieve our fundraising target, but we have since adapted our offer and our financial targets to enable us to be successful in a fundraising market that remains constrained.

Notable successes came from new partnerships with UKRI, PA Foundation and Cwmpas who are leading a consortium of partners funded by the Welsh Government to deliver social enterprise support in Wales. We also received significant funding from our multiyear partnerships with The National Lottery Community Fund, Comic Relief, Sport England, Bank of America, Johnson & Johnson, and Herbert Smith Freehills. We remain extremely grateful to our community of individual donors for their personal commitment.

There has been no outsourced fund raising via professional fundraisers or other third parties. As a result, the charity does not need to register with the fundraising regulator and received no fundraising complaints in the year.

Investment performance

At 31 March 2023, the Real Value of the Endowment was £167.3 million (2022: £152.9 million) against a total market value of the investments of £158.3 million (2022: £167.6 million) of which £15.6 million (2022: £14.5 million) is being held in income reserves. Within the income reserves, after netting off all creditors, the free reserves stood at £9.9 million (2021: £8.5 million).

As at 31 March 2023, the group had net current assets of £2.7 million (2022: net current assets of £4.0 million) and reserves of £5.7 million (excluding the endowment). UnLtd (excluding the Millennium Awards Trust) had unrestricted reserves of £1.3 million (2022: £1.2 million) Investment value at 31st August 2023 was £157,584,398

Plans for future periods

With our Breaking Down Barriers strategy already turning our ambitions into real change and impact for social entrepreneurs, we’re looking forward to building on our progress. We’ll be doing this in a focused way, reflecting our reduced headcount and balanced budget.

Heading into 2023, we have a number of exciting partnerships and projects:

34

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

social purpose organisations and we will continue to build the fund, seeking to raise another £8 million+ of capital.

We are talking to a number of partners about other exciting innovations, whether building on our access to employment endeavours, our work to tackle health inequalities, or new initiatives focused on green growth.

Principal risks and uncertainties

Risk appetite

UnLtd recognises that not all risks are inherently undesirable. Some risks are necessary in order to generate superior returns. The traditional way of managing these risks through a “rule” based compliance approach would be ineffective.

Award winners

UnLtd has a high-risk appetite on award winner selection . It seeks out people at a very early stage, often with innovative ideas and no track record, in their journey as social entrepreneurs.

Venture development

UnLtd has a high-risk appetite in accelerating ventures which it believes have the potential to have high growth, scalable impact.

Systemic change

UnLtd has a high-risk appetite in seeking to break down the barriers which prevent social entrepreneurs from being valued and thriving.

UnLtd staff

Our people are what makes UnLtd such a great organisation and our skills, learning, values, and behaviours are what drives the support and impact of our social entrepreneurs. We have a low-risk appetite on staff not effectively delivering UnLtd’s mission.

Business development

We also have a balanced risk appetite in new business developments – we have a high-

risk appetite for innovation through our own R&D which is consonant with our areas of expertise but a low appetite for innovation that is outside of our strategy and competencies. We develop some initiatives which include work which would not be eligible for Millennium Awards Trust funding.

Financial resources

We have zero appetite for abuse of funds. However, in order to avoid stifling entrepreneurial spirit, our control systems should be designed with a low tolerance level for any abuse of

35

funds. The support aspect of our awards means that we stay in touch with award winners and have more chance of picking up financial irregularities than most other funders might have.

Investment

Our investment approach has a balanced risk appetite – maximising returns whilst seeking to maintain real value over the long term (interpreted as a 10-year horizon).

People - We have a low tolerance level for behaviour that contravenes our values.

36

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Strategic Report, the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Disclosure of information to Auditor

Each of the members of the Board of Trustees has confirmed that:

Auditor

PKF Littlejohn LLP has expressed its willingness to continue in office as auditors. Approved by the Trustees on 12 September 2023 and signed on their behalf by:

Trustee Krishna Vishnubhotla

37

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE FOUNDATION FOR SOCIAL ENTREPREUNERS (UNLTD)

Opinion

We have audited the financial statements of The Foundation for Social Entrepreneurs (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

38

Other information

The other information comprises the information included in the report of the trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the report of the trustees. Our opinion on the financial statements does not cover the other information 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:

Matters on which we are required to report by exception

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

39

Responsibilities of trustees

As explained more fully in the trustees’ responsibility statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the group and parent charitable company 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 group and parent charitable company financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act and relevant regulations made or having effect thereunder.

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 designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulations. These procedures included, but were not limited to,

40

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

A further description of our responsibilities for the audit of the financial statements is located 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.

Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor

41

THE FOUNDATION FOR SOCIAL ENTREPRENEURS(UnLtd) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2023

notes
Income and endowments
Donations
3
Income from charitable activities
4
Investments
5
Total income and endowments
Expenditure
Expenditure on raising funds
Expenditure on charitable activities
6
Totalexpenditure
Net gains / (losses) on investments
Net income / (expenditure)
Transfer between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 Unrestricted
General
£
231,291
300,605
3,955,533
4,487,429
-
4,006,102
4,006,102
-
481,327
1,367,296
1,848,623
12,069,261
13,917,884		 Restricted
Funds
£
5,631,241
-
-
5,631,241		 Endowment
Funds
£
-
-
-
-
952,277
-
952,277
(8,439,447)
(9,391,724)
-
(9,391,724)
153,107,934
143,716,210		 Total
2023
£
5,862,532
300,605
3,955,533
10,118,670
952,277
10,241,427
11,193,704
(8,439,447)
(9,514,481)
-
(9,514,481)
171,279,785
161,765,304		 Total
2022
£
7,133,173
508,452
3,396,513
11,038,138
-
6,235,325		 974,563
9,813,649
6,235,325 10,788,212
-
(604,084)
(1,367,296)
(1,971,380)
6,102,590
4,131,210		 9,178,013
9,427,938
-
9,427,938
161,851,848
171,279,786

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised.

The accompanying notes on pages 45 to 59 form part of these financial statements

42

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UnLtd) CONSOLIDATED BALANCE SHEET AS AT MARCH 2023

Fixed assets
notes
Tangibleassets
7
Investments
8
Social Investments
8
Share of joint venture gross liabilitie
Investment in Growth Impact Fund(G
8
Current assets
Debtors due within one year
9
Cash at bank and in hand
Debtors due after one year
10
Creditors: amounts falling due
11
within one year
Net current assets / (liabilities)
Total assets less current liabilities
Creditors: amounts falling due
12
after more than one year
Total net assets
Funds
Endowment
Restrictedfunds
Unrestricted funds:
General
Designated		 2023
UnLtd
£
58,836
-
-
-
26,792
85,628
5,886,387
527,206
6,413,593
2,314
6,415,908
406,380
406,380
6,007,214
6,095,156
420,000
5,675,156
-
4,131,210
1,320,738
223,208
5,675,156		 2023
Group
£
883,836
159,289,808
100,000
-
26,792
160,300,436
3,419,100
966,390
4,385,490
489,067
4,874,557
1,701,815
1,701,815
2,683,675
163,473,178
1,707,874
161,765,304
143,716,210
4,131,210
13,917,884
-
161,765,304		 2022
UnLtd
£
-
-
-
-
-
-
5,714,735
2,751,540
8,466,275
2,314
8,468,589
469,614
469,614
7,996,661
7,998,975
420,000
7,578,975
-
6,102,590
1,226,386
250,000
7,578,975		 2022
Group
£
830,000
167,608,317
-
-
-
168,438,317
3,071,231
3,007,005
6,078,236
1,064,214
7,142,450
2,092,843
2,092,843
3,985,393
173,487,925
2,208,142
171,279,783
153,107,934
6,102,590
12,069,259
-
171,279,783

Approved by the Trustees, authorised for issue on 12 September 2023 and signed on their behalf by:

Trustee Krishna Vishnubhotla

The accompanying notes on pages 44 to 58 form part of these financial statements

43

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UnLtd) CONSOLIDATED CASH FLOW STATEMENT AS AT MARCH 2023

AS AT MARCH 2023 2023
Cash inflow/(outflow) from operating activities
Net incoming resources
Loan interest charges
Depreciation of tangible fixed assets
Decrease/(increase) in debtors
Decrease in creditors
Investment (gains) / losses
Net cash (used in) operating activities
Cash inflow/(outflow) from investing activities
Payment to acquire investments
Receipts from the sale on investments
Net cash flow provided (for)/by investing activities
Cash inflow/(outflow) from financing activities
Loan repayments
Loan capital received
Interest paid
Net cash flow provided by / (used in) financing activities
Change in cash in year
Analysis of changes in net funds
At 1 April
2022
£
Cash at bank and in hand
(including short term deposits)
3,007,005
Loan – Mortgage
(184,954)
Loans - Other
(2,092,937)
729,114		 2023
£
(9,514,481)
3,793
19,709
127,278
(397,310)
8,439,447
(1,321,564)
-
(124,457)
(352,484)
-
(590,800)
(3,793)
(594,593)
(2,040,615)
Cashflow
£
(2,040,615)
99,681
590,800
(1,350,134)		 2022
£
9,427,939
2,363
5,000
2,890,127
(554,863)
(9,178,013)
2,592,553
-
(352,484)
2,006,089
-
(99,491)
(2,363)
(101,853)
2,138,215
At 31 March
2023
£
966,390
(85,273)
(1,502,137)
(621,020)

44

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 PRINCIPAL ACCOUNTING POLICIES

a) General information and basis of preparation

The Foundation for Social Entrepreneurs is a company limited by guarantee with charitable status in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 5 of these financial statements.

The charity constitutes a public benefit entity as defined by FRS 102. 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) , the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The Foundation for Social Entrepreneurs as a group has substantial assets in the form of an endowment. The majority of the endowment is invested in funds with high liquidity. The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern and therefore the financial statements are prepared on that basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Going Concern

The Board of Trustees has adopted the going concern basis in the preparation of these financial statements. In reaching this decision, the Board of Trustees has considered the Group's forecast and cash flow projections covering a period of at least 12 months from the date of signing of the financial statements.

Though the scenario is considered to be very unlikely, as part of the going concern assessment the Group prepared a cash flow forecast which considered the Group’s ongoing cash outflows and assumed no new source of external funding beyond those already confirmed.

The Group will also monitor its funding position and its liquidity risk throughout the year to ensure it has access to sufficient funds to meet forecast cash requirements and adjust in its operational expenditure as required. UnLtd also has the ability to flex the timing and/or volume of MAT awards outflows in order to manage any risks. Having due regard to these matters and after making appropriate enquiries, the Directors have a reasonable expectation that the Group and the Company have adequate resources to remain in operation until at least 12 months after the approval of these Financial Statements. The Board of Trustees have therefore continued to adopt the going concern basis in preparing the consolidated Financial Statements.

(c) Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.

45

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.

Endowment funds represent those assets which must be held permanently by the charity. Income arising on the endowment funds can be used in accordance with the objects of the Millennium Awards Trust and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund.

Investment in Growth Impact Fund

Trustees of UnLtd made a commitment to become a Limited Partner in the Growth Impact Fund and designated £250,000 of unrestricted funds towards such purpose. During the year £26,792 was invested into the fund. The balance of the designated reserve at the end of the year was £223,208.

(d) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.

Income from donations is recognised on receipt, unless there are conditions attached to the donation that require a level of performance before entitlement can be obtained. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail of the contribution of volunteers to the charity is given in the Trustees’ Annual Report.

Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest earned. Interest income and dividends are recognised when receivable.

(e) Expenditure recognition

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are included in expenditure on charitable activities. Where unconditional grants are made, these amounts are recognised when a constructive obligation is created, typically when the grant is approved. Where grants are conditional on performance, then the grant is only recognised once any unfulfilled conditions are outside of the control of the charity.

(f) Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

46

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land n/a Freehold buildings 25 years Fixtures and fittings 4 years Computers 3 years Boat and Equipment 20% Reducing Balance Method

(g) Investments

Publicly traded investments, or those where fair value can otherwise be measured reliably, are measured at fair value at each balance sheet date, with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA. Other investments are measured at cost less impairment.

(h) Social impact Investments

Programme related investments are valued at the fair value. Where a reasonable fair value is not practicable to obtain, social investments are recognised at cost less impairment.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(j) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method.

(k) Derivatives

Derivative financial instruments are initially measured at fair value at the date on which a derivative contract is entered into and subsequently at each balance sheet date. Changes in fair value are recognised in the relevant expenditure heading in the SoFA.

(l) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(m) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

47

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

(n) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes.

(o) Group accounts

These financial statements consolidate the results of the Millennium Awards Trust, FSE Management Services Limited (company limited by guarantee), UnLtd Scotland, UnLtd Impact Support Company Limited, UnLtd Venture Growth Support Limited and UnLtd Social Investments Limited on a line by line basis. They are prepared on the basis that the Foundation for Social Entrepreneurs (UnLtd) will remain as sole Trustee of the Millennium Awards Trust in perpetuity. Should this change, the basis on which these financial statements are prepared may need to be reconsidered.

48

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2
Funds Analysis
Restricted funds: Fund balance Incoming Outgoing Fund Fund balance
at 1 April 22 resources resources Transfer at 31 Mar 23
Big Lottery (BVC 2) 199,594 - - - 199,594
Royal Society of Wildlife Trust 8,122 - - - 8,122
Esmee Fairbairn I 6,680 - - - 6,680
Design Council 17,794 - - - 17,794
DCMS 9,551 - - - 9,551
Sandwell 38,476 - - - 38,476
JP Morgan 68,457 - - - 68,457
Community of Action(TSIP) 55,535 - - - 55,535
The Royal Foundation 23,986 - - - 23,986
MacarthurFoundation 8,050 - - - 8,050
Access Reach Fund 5,340 70,176 44,015 (31,501) -
Bank of America 39,458 - - - 39,458
The Waterloo Foundation 19,300 - 19,300 - -
Inclusive Recovery Fund 2,078,115 - 1,597,448 (480,667) -
eBay 627,535 983,920 1,048,155 (563,300) -
Access: Flexible Finance - 250,000 232,500 (17,500) -
Innovate UK - 104,800 98,845 (5,955) -
SESF 2 2,347,715 - 2,279,910 (67,805) -
The Entrepreneur Ship 262,871 222,060 65,000 - 419,931
Welsh Assembly SESG 154,846 - 94,116 (16,390) 44,340
Sports England 63,840 3,524,786 386,775 (109,618) 3,092,233
CAF America (J&J) 67,325 146,956 133,602 (25,426) 55,253
Bank of America -GIF TA - 253,543 204,409 (49,134) -
PA Foundation - 75,000 31,250 - 43,750
Total restricted 6,102,590 5,631,241 6,235,325 (1,367,296) 4,131,210
Endowment 153,107,934 - 952,277 (8,439,447) 143,716,210
Income reserves 8,500,000 3,955,533 4,006,102 5,008,263 13,457,694
Unrestricted:
General 3,569,257 531,900 - (3,640,967) 460,190
Total unrestricted 12,069,261 4,487,433 4,006,102 1,367,296 13,917,884
Total funds 171,279,785 10,118,674 11,193,704 (8,439,447) 161,765,304

49

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 Funds Analysis
Restricted funds: Fund balance Incoming Outgoing Fund Fund balance
at 1 April 21 resources resources Transfer at 31 Mar 22
Big Lottery (BVC 2) 199,594 - - - 199,594
Big Local Trust - Star people 79,867 - 79,867 - 0
Royal Society of Wildlife Trust 8,122 - - - 8,122
Esmee Fairbairn I 6,680 - - - 6,680
Design Council 17,794 - - - 17,794
DCMS 9,551 - - - 9,551
Sandwell 38,476 - - - 38,476
JP Morgan 68,457 - - - 68,457
Thrive: A2E 20,348 - 20,348 - -
Community of Action(TSIP) 55,535 - - 55,535
Postcode Innovation 23,815 - 23,815 - -
The Royal Foundation 62,483 - 20,997 (17,500) 23,986
Macarthur Foundation 8,050 - - - 8,050
Access Reach Fund 5,340 - - - 5,340
Paul Hamlyn Foundation 50,000 - 50,000 - -
Bank of America 39,458 - - 39,458
The Waterloo Foundation 38,300 300 19,300 - 19,300
Inclusive Recovery Fund 4,750,000 - 2,055,296 (616,589) 2,078,115
eBay 613,893 1,508,622 1,262,798 (232,181) 627,535
Access: Flexible Finance 8,650 - 8,650 - -
SESF 2 (1,000) 4,910,267 2,561,552 - 2,347,715
The Entrepreneur Ship 2,000 268,098 7,227 - 262,870
Welsh Assembly SESG - 177,458 18,878 (3,735) 154,846
Sports England - Discovery - 92,318 22,641 (5,837) 63,840
CAF America (J&J) - 67,325 - - 67,325
Total restricted 6,105,413 7,024,388 6,151,369 (875,842) 6,102,589
Endowment 148,904,484 - 974,563 5,178,013 153,107,934
Income reserves 248,961 3,396,513 3,390,637 4,875,842 5,130,679
Unrestricted:
General 6,592,988 617,237 - - 7,210,225
Total unrestricted 6,841,949 4,013,750 3,390,637 4,875,842 12,340,904
Total funds 161,851,846 11,038,138 10,516,569 9,178,013 171,551,427

50

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Transfers from restricted funds to unrestricted funds represent the allocation of support costs for the running of restricted projects. Support costs allocated include premises costs, staff costs, IT and management costs. An analysis of total support costs is shown in note 6.

Included in the Endowment Funds ‘Fund Transfers & investment gains / (losses) is a transfer of £1,367,296 from Restricted Funds representing the allocation of support costs for the running of restricted projects. Support costs allocated include premises costs, staff costs, IT and management costs.

Transfers from restricted funds to unrestricted funds represent the allocation of support costs for the running of restricted projects. Support costs allocated include premises costs, staff costs, IT and management costs. An analysis of total support costs is shown in note 6.

3 Income from donations and legacies

Trusts
Corporate
Other		 2023
£
4,024,762
1,390,353
447,417
5,862,532		 2022
£
5,180,343
1,575,947
376,883
7,133,173

Income from donations and legacies was £5,862,532 (2022 - £7,133,173) of which £5,631,241 (2022 - £7,024,388) was attributable to restricted funds and £231,291 (2022 - £108,785) was attributable to unrestricted funds.

4 Income from charitable activities

UnLtd has five wholly owned UK trading subsidiaries:

FSE Management Services Limited. This is a company limited by guarantee and having no share capital. The object of the company is to carry on business to procure profits and gains for the purposes of paying them to the Foundation for Social Entrepreneurs (Registered charity Number: 1090393) or any other charitable body which succeeds to its charitable purposes. FSE Management Services Limited is a company registered in England and Wales, company number 6841529. A summary of their trading result is shown below.

UnLtd Scotland. This is a company limited by guarantee and having no share capital. The object of the company is to undertake UnLtd’s work in Scotland. UnLtd Scotland is a company registered in Scotland, company number 475273.

UnLtd Impact Support Company. This a company limited by share capital. The object of the company is to provide repayable finance to social ventures. UnLtd Impact Support Company Limited is a company registered in England and Wales, company number 10951754.

UnLtd Venture Growth Support. This is a company limited by share capital. The object of the company is to provide a combination of debt and equity finance to social ventures. UnLtd Venture Growth Support Limited is a company registered in England and Wales, company number 11568325.

UnLtd Social Investment Company. This is a company limited by share capital and was incorporated on 17 March 2022. The sole shareholder of the company is The Foundation for Social Entrepreneurs (UnLtd). UnLtd Social Investments Ltd is a shareholder in the General Partner of Growth Impact, L.P., an English private fund limited partnership. Additionally, UnLtd Social Investments Ltd provides investment advisory services to Growth Impact, L.P.’s Fund Manager. The company number is 13983682.

51

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

UnLtd’s Subsidiaries Accounts

Turnover FSE
Management
UnLtd
UnLtd
UnLtd
UnLtd
Total 2023
Services Ltd
Scotland
Impact
Support
Venture
Growth
Social
Investments
£
£
£
£
£
£
32,744
219,017
243,909
5,556
18,396
519,622
Transfer from Parent Company
Expenditure
Provision for loss
Profit/(loss) before gift aid
Gift aid to UnLtd
Retained in subsidiary
Turnover
Transfer from Parent Company
Expenditure
Provision for loss
Profit before gift aid
Gift aid to UnLtd
Retained in subsidiary		 -
-
-
-
-
-
(6,371)
(219,017)
(100,198)
(4,593)
(1,387)
(331,567)
-
-
(220,965)
7,921
-
(213,044)
26,373
-
(77,254)
8,884
17,009
(24,989)
26,373
-
-
8,884
17,009
52,266
-
-
(77,254)
-
-
(77,254)
FSE
Management
UnLtd
UnLtd
UnLtd
UnLtd
Total 2022
Services Ltd
Scotland
Impact SupportVenture Growth
Social
Investments
£
£
£
£
£
£
31,125
118,768
348,242
10,315
-
508,450
-
-
-
-
-
-
(12,209)
(118,768)
(169,027)
(54,177)
-
(354,182)
-
-
(197,052)
(10,109)
-
(207,161)
18,916
-
(17,837)
(53,971)
-
(52,892)
18,916
-
-
-
-
18,916
-
-
(17,837)
(53,971)
-
(71,808)

5 Income from investments

Investment income
Investment gains/(losses)		 2023
2022
Unrestricted
Endowment
Total
Total
£
£
£
£
3,955,533
-
3,955,533
3,396,513
-
(8,439,447)
(8,439,447)
9,178,013

Income from investments was £3,955,533 (2022 - £3,396,513) of which £3,955,533 (2022 - £3,396,513) was attributable to unrestricted funds.

Investment income can be used for general purposes of the Millennium Awards Trust and can be used to reimburse costs incurred by UnLtd in furtherance of the objects of the Trust.

6 Charitable expenditure – costs of support to social entrepreneurs

Direct costs analysis
Salaries
Partners
Events
Travel		 2023
2022
£
£
1,789,477
1,219,935
355,006
486,813
72,101
163,654
72,951
61,322
2,289,535
1,931,724

52

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Grants Analysis
Try It
Do It
Grow it
Partners
Support costs analysis
Salaries
Premises
IT
Marketing
Depreciation
Governance (see below)
Trading activity in subsidiaries
Provision for loss
Other

Total
Governance costs analysis
Trustees expenses
Legal
Audit (external)
Audit (internal)
Total Charitable expenditure
Direct costs
Grants
Support costs		 -
375,758
-
3,970,187
4,345,945
2,012,387
220,576
353,499
3,144
19,709
71,502
331,567
213,044
380,520
3,605,948
1,362
13,260
32,580
24,300
71,502
2,289,535
4,345,945
3,605,947
10,241,427		 2,295
775,395
921,132
2,583,584
4,282,406
2,322,201
248,135
224,383
1,519
5,000
59,674
354,182
207,161
177,264
3,599,519
1,336
2,700
30,798
24,840
59,674
1,931,724
4,282,406
3,599,519
9,813,649

£6,235,325 (2022 - £6,151,369) of the above costs were attributable to restricted funds and £4,006,102 (2022 - £3,662,280) of the above costs were attributable to unrestricted funds.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and other management costs. They are incurred directly in support of expenditure on the objects of the charity.

53

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Net income / (expenditure) is stated after charging/(crediting)

Depreciation 19,709 5,000
Operating lease rentals - land and buildings 51,140 55,216
Interest payable on bank loans 3,793 2,363
Investment (gains) and losses 8,439,447 (9,178,013)

7 Tangible fixed assets

7
Tangible fixed assets
Tangible fixed assets(Group) Land Building Computer Furniture and Fixed Assets - Total
and IT Fixtures Boat
Cost £ £ £ £ £ £
At 1 April 2022 800,000 125,000 6,633 551,658 - 1,483,291
Additions - - - 73,545 73,545
Disposals - - - - - -
At 31 March 2023 800,000 125,000 6,633 551,658 73,545 1,556,836
-
Depreciation -
At 1 April 2022 - 95,000 6,633 551,658 - 653,291
Charge for theyear - 5,000 - - 14,709 19,709
At 31 March 2023 - 100,000 6,633 551,658 14,709 673,000
Net book value
At 31 March 2022 800,000 30,000 - - - 830,000
At 31 March 2023 800,000 25,000 - - 58,836 883,836
Tangible fixed assets (UnLtd) Computer Furniture and Fixed Assets - Total
and IT Fixtures Boat
Cost £ £ £ £
At 1 April 2022 6,633 551,658 - 558,291
Additions - 73,545 73,545
Disposals - - - -
At 31 March 2023 6,633 551,658 73,545 631,836
-
Depreciation -
At 1 April 2022 6,633 551,658 - 558,291
Additions - - 14,709 14,709
Disposals 6,633 551,658 14,709 573,000
At 31 March 2023
Net book value - - - -
At 31 March 2023 - - 58,836 58,836
At 31 March 2022 - - - -

54

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8
Investments
Investment assets
Market value at 1 April 2022
Net unrealised / realised investment gains(loss)
Investment income earned
Investment in Growth Impact Fund(GIF)
Social Investments
Income drawdown
Investment charges deducted
Transfer between funds
Funds value after charges
Asset allocation:
Cash
GSAM Sterling Credit
Charities Property Fund
Dimensional - Global Core Fund
GMO
Wellington
GuardCap
GSAM Emerging Markets
JPM Emerging Markets
JPM Infrastucture
HICL
Investment in Growth Impact Fund(GIF)
Social Investments
Total at 31 March 2023		 UnLtd
Unrestricted
Endowment
Total
fund
fund
£
£
£
£
14,500,383
153,107,934
167,608,317

(8,439,447)
(8,439,447)
3,955,533
3,955,533
26,792
26,792
100,000
100,000
(2,882,318)
(2,882,318)
-
(952,277)
-
(952,277)
-
26,792
15,673,598
143,716,210
159,416,600
cost of
Investment
Market Value
286,553
286,553
12,100,000
9,846,460
10,800,000
11,536,042
12,443,796
31,936,773
10,000,000
15,230,019
12,000,000
13,780,076
15,000,000
19,571,865
15,000,000
11,849,390
15,000,000
13,310,277
15,000,000
15,604,832
18,190,059
16,337,521
26,792
26,792
100,000
100,000
135,947,200
159,416,600
26,792
15,673,598

55

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

9 Debtors : amounts falling due within one year

Trade debtors
Grants receivable
Prepayments and accrued income
Other debtors
Amounts due from subsidiary undertakings
Loans		 UnLtd
2023
£
-
2,729,395
130,365
14,681
3,011,946
-
5,886,387		 Group
2023
£
36,084
2,729,395
196,504
14,806
22,761
419,550
3,419,100		 UnLtd
2022
£
-
2,235,307
141,876
13,902
3,323,650
-
5,714,735		 Group
2022
£
7,887
2,235,307
207,552
14,094
33,492
572,899
3,071,231

10 Debtors : amounts falling due after one year

Grants receivable
Other debtors
Loans		 UnLtd
2023
£
-
2,314
-
2,314		 Group
2023
£
-
2,314
486,753
489,067		 UnLtd
2022
£
-
2,314
-
2,314		 Group
2022
£
-
2,939
1,601,276
1,604,215

56

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11 Creditors: amount falling due within one year

Trade creditors
Awards accruals as below
Accruals and deferred income
Other taxes and social security
Other creditors
Loan (see note 12)
VAT
All awards are payable within one year
Try It
Do It
Grow It		 UnLtd
2023
£
168,865
-
104,782
107,389
25,344
-
-
406,380
UnLtd
2023
£
-
-
-
-		 Group
2023
£
199,550
1,161,666
105,520
112,874
26,334
85,273
10,598
1,701,815
Group
2023
£
5,000
1,156,666
-
1,161,666		 UnLtd
2022
£
188,456
-
163,808
90,106
27,244
-
-
469,614
UnLtd
2022
£
-
-
-
-		 Group
2022
£
216,264
1,404,045
251,235
92,649
28,081
100,569
-
2,092,843
Group
2022
£
7,601
1,210,991
185,453
1,404,045

12 Creditors: amounts falling due after more than one year

Deferred Income
Triodos loan
Other loans		 UnLtd
2023
£
-
-
420,000
420,000		 Group
2023
£
481,689
-
1,226,185
1,707,874		 UnLtd
2022
£
-
-
420,000
420,000		 Group
2022
£
530,525
84,385
1,593,232
2,208,142

57

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Loan from Triodos Bank:

Amounts falling due
After one year and before two years
After two years and before five years
After more than five years
Within one year (see note 11)		 Group
2023
£
-
-
-
-
85,273

85,273		 Group
2022
£
84,385
-
84,385
100,569
184,954

The loan is repayable in 204 equal monthly instalments from November 2006. The loan bears interest at 0.85% above the bank base rate and interest is payable as it is charged. The loan is secured over the freehold property of the Millennium Awards Trust and certain securities.

Loan from Others:

Amounts falling due
After one year and before two years
After more than five years		 UnLtd
2023
£
-
420,000
420,000		 Group
2023
£
-
1,226,185
1,226,185		 UnLtd
2022
£
-
420,000
420,000		 Group
2022
£
-
1,593,232
1,593,232

13 Endowment

The Millennium Awards Trust was endowed by the Millennium Commission with a National Lottery grant of £100 million as a permanent source of grants for individuals throughout the United Kingdom to develop their own skills and talents and to contribute to the community.

The Trustee is under a duty to obtain the maximum return consistent with a policy of seeking to maintain the “Real Value”. Any excess above this value can be regarded as income funds and used to make awards and meet running costs.

All of the income of the fund is available to make awards and pay for the administration of the awards scheme.

14 Staff numbers and costs

Salaries
Social security costs
Pensions

 2023
£
3,246,463
355,801
199,600
3,801,864

 2022
£
3,037,481
318,042
186,613
3,542,136

58

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Average weekly number of employees during the period
calculated on full time equivalent basis was:
The number of employees during the period who earned over
£60,000 in the year was as follows:
£60,001 to £70,000 per annum
£70,001 to £80,000 per annum
£80,001 to £90,000 per annum
£120,001 to £130,000 per annum
£130,001 to £140,000 per annum		 67
2023
5
4
1
-
1		 70
2022
2
4
1
-
1

Total redundancy / termination payments of £79,055 (2022 - £ 2,225) were made to ten individuals (2022: one). No payments were outstanding at the year end.

Trustees received no remuneration and £1,362 of expenses were reimbursed (2022 - £Nil) during the reporting period.

The aggregate remuneration received by key management personnel totalled £561,326 (2022 :£523,940). Key management personnel includes CEO, Director of Corporate Services, Director of Delivery and Investment, Director of Social Entrepreneur Support and Director of Impact and Influence.

15 Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years
Later than five years		 2023
£
17,408
69,632
-
87,040		 2022
£
56,285
87,040
-
143,325

16 Financial instruments and associated risks

The charity holds a number of financial assets (for example investments, debtors and cash) which meet the definition of basic financial instruments under the FRS 102 SORP.

The charity also holds a number of derivative financial instruments eg interest rate swaps, options and forward contracts. AQR values Portfolio Securities using market-based valuations when they are readily available. When market-based valuation is not available for a Portfolio Security, the Portfolio Security may be fair valued by (i) the Valuation Committee or (ii) a relevant Pricing Service. The Investment Manager has established a Valuation Committee to oversee the day-to-day valuation of the Funds’ Portfolio Securities in accordance with this Valuation Policy.

UnLtd, through investment in various funds as determined by its investment strategy, maintained positions in a variety of derivative and non-derivative financial instruments. UnLtd’s investing activities expose it to various types of market risks that are associated with the financial instruments and markets it invests in.

59

THE FOUNDATION FOR SOCIAL ENTREPRENEURS (UNLTD) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Market risk includes currency risk, interest rate risk and price risk. The market risk management strategies of the funds UnLtd invests in are driven by the funds’ investment objectives. The investment managers employed by UnLtd are instructed to manage risks in accordance with agreed policies and procedures.

Other than for its management of the Endowment, UnLtd does not use financial instruments.

17 Related party transaction

There have been no related party transactions in either year.

18 Net Assets Fund Analysis

Group
Fixed Assets
Investments
Net current assets / (liabilities)
Long term debtors
Long term creditors		 Unrestricted
£
Restricted
£
Endowment
£
Total 2023
£
883,836
-
-
883,836
15,700,390
-
143,716,210
159,416,600
(1,447,535)
4,131,210
-
2,683,675
489,067
-
-
489,067
(1,707,874)
-
-
(1,707,874)
13,917,884
4,131,210
143,716,210
161,765,304
Group
Fixed Assets
Investments
Net current assets / (liabilities)
Long term debtors
Long term creditors		 Unrestricted
Restricted
Endowment
2022 Total
£
£
£
£
830,000
-
-
830,000
14,500,383
-
153,107,934
167,608,317
(2,117,195)
6,102,590
-
3,985,395
1,064,215
-
-
1,064,215
(2,208,142)
-
-
(2,208,142)
12,069,261
6,102,590
153,107,934
171,279,785

60

DocuSign Envelope ID: F870DFD2-E6D6-4C81-9BE2-BEC36F43ACE1

61