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2020-12-31-accounts

Docusign Envelope ID". BBAFAF29-ABE44C2247EB-D40C51FA4D7E J Li£LI I ALFANAR 2020 ANNUAL REPORT-,

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BACKING BOLD SOCIAL ENTERPRISE LEADERS CREATING LASTING HOPE DIGNITY AND OPPORTUNITY FOR WOMEN, YOUTH AND CHILDREN IN THE ARAB WORLD

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Contents

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THANK YOU

2020 was unprecedented, complicated and incredibly difficult for everyone across the globe. We pray that you, your families and those around you are safe and healthy and hopefully enjoying a brighter 2021.

Alfanar and the social enterprises we support faced obstacles unlike any in our 17-year history. From a declining economic outlook across the Arab world to the COVID-19 pandemic, and the August 4th Beirut Port Explosion, Alfanar’s social enterprises have been pillars of resilience and strength in the communities they serve.

Thanks to hundreds of supporters who reaffirmed their belief in our mission this year, Alfanar stood by its social enterprises to ensure that they received the funding and management support required to react rapidly to meet the critical and changing needs on the ground.

In response to COVID-19 and economic hardship in our countries of operation, we launched our Survive & Thrive Campaign in partnership with our sister charity Alfanar, Inc., US. This enabled our incredible community of donors to provide direct support to our frontline social entrepreneurs working tirelessly to meet the urgent needs of vulnerable children, youth and women across Egypt, Lebanon and refugee communities during the crisis. We directed over £400k to enable our social enterprises to adapt their models to quickly meet growing need.

Alfanar’s Survive & Thrive funding made an enormous difference in vulnerable communities where physical distancing was nearly impossible to achieve, and not working because of lockdown translated into hunger. It allowed social enterprises like Educate Me, Tabshoura by LAL, The Nawras Preschool, MMKN, and SE Factory to deliver learning support and training virtually to thousands of children and youth locked out of formal education.

It also helped us provide immediate relief in the form of food boxes to families suffering from wage loss.

When the August 4th Port of Beirut Explosion killed more than 200 people and injured thousands, including some of our own social entrepreneurs, we launched the Emergency Lebanon Appeal to provide urgent funding and support to ailing communities through our social enterprises, providing food relief and reconstruction in areas most impacted by the blast.

Thanks to your incredible support we are able to direct over £250k to social enterprises providing emergency relief, including the Lebanese Food Bank, Souk el Tayeb, ShareQ, Soufra, and BEDCO by March NGO, with a further £520k secured for 2021. We also provided counselling and management support to our social enterprises impacted by the blast.

We thank the generous donors who backed our work this year. Despite the onslaught of crisis and difficulty, you enabled us to double down on our mission and to stand strong with our social enterprises, to help them reforecast and shift their budgets, to pivot their impact models and to continue showing up for the vulnerable communities they educate, employ and empower.

As we look towards 2021, Alfanar will look for and seize opportunities to scale some of our most effective, innovative and resilient social enterprises in order to create dignity for a growing number of vulnerable women, youth and children across the Arab world.

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Lubna S. Olayan Myrna Atalla
Board Chairman Executive Director
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Transforming Crisis into Opportunity The Impact of 2020 on Alfanar's Social Enterprises

In under a year, COVID-19 has taken to new levels the hardship and inequity we work so hard to counter. 1.7 million jobs in the Arab world will be lost due to COVID-19, and an additional 8.3 million people will fall below the poverty line.

Alfanar helped deliver the funding, training, management support and access to networks that our social enterprises needed to adapt, innovate, and survive the crisis in order to continue creating sustainable impact.

With COVID-19 closing schools across the region, we worked with our social enterprises to ensure that children, parents and educators could access the learning resources needed to ensure continuity of education throughout the crisis.

We backed innovative education social enterprises, such as Tabshoura by LAL in Lebanon, to digitise curricula and bring online learning to underprivileged children across the country.

In Egypt, we helped Wataneya Society to shift its training for social workers and orphanage care workers online, enabling them to continue their social impact work throughout lockdown.

Women and widows are among the most vulnerable, not only tending to children at home but worrying about how to provide food for them as work dried up.

With revenues falling and jobs threatened, Alfanar worked to support employmentfocused social enterprises like Inaash, which employs women refugees as embroiderers, to pivot and adjust their financial models in response.

By supporting Inaash and Shatila Studio to develop and implement an online sales strategy, as well as producing 2,000 face masks, Alfanar's flexible support helped ensure that hundreds of refugee women were able to continue working.

Alfanar was one of the first organisations that believed in us. Whatever we achieved, it was because of Alfanar.

Omar Itani FabricAID Founder

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Alfanar has been an incredible partner for the Lebanese Food bank.

Walid Maalouf Lebanese Food Bank Board Member

In Lebanon, COVID-19 compounded a desperate ongoing financial crisis. Poverty levels increased from 33% to 50% of the population in a matter of months and food insecurity grew dramatically.

As prices soared and lockdowns began, Alfanar supported frontline social enterprise The Lebanese Food Bank with targeted funding and management support to grow their support to vulnerable families from 500 to 50,000 food boxes per month.

"Our focus has shifted from saving food from landfill to food relief, which means that our food boxes programme is now running on a national scale. We have been pushed by COVID to scale much faster than we anticipated," says Walid Maalouf, a Lebanese Food Bank Board member.

"The money from Alfanar is very important, but the conversations we have had around building our capabilities as a team, to controlling and monitoring our impact, have been vital."

The August 4th explosion at the Port of Beirut caused untold devastation across the city, and represents another major set-back to a country already reeling from a major economic crisis.

With loved ones lost, livelihoods destroyed, and the country facing even greater hardship, our growing community of donors and partners rallied to support our frontline social enterprises working tirelessly to deliver emergency relief to affected communities on the ground.

Alfanar has provided additional funding and support to social entrepreneurs across Lebanon who have risen to the challenge of rebuilding their city and responding to growing needs across the country.

Alfanar has been with us every step of the way.

Zeina Saab SE Factory CEO

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Thanks to your support, we increased our impact by 65% in 2020.

Despite the difficulty and uncertainty of this year, Alfanar's commitment to helping ambitious social entrepreneurs access the funding, management support, training, network and data analytics they need to grow has not waned.

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41k+
Lives Impacted
in 2020
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£2.1M
Self-Generated
Revenue by
Investees in 2020
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54%
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Average Investee
Cost Recovery
in 2020
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9,000+ Hours of Management Support in 2020

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7
Impact Dashboards
Developed for
Investees in 2020
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70 Social Enterprises Given Management Support in 2020

Note: This is the second edition of Alfanar's 2020 Impact Report. All figures represent data as of March 2021. Some figures vary from those reported in the first version published in December 2020, which were based on projections as of November 2020 and data that has since been cleaned and validated for accuracy.

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Alfanar's Response: Venture Philanthropy in Action

Alfanar is the first venture philanthropy organisation focused on the Arab region. We catalyse long-term sustainable social impact for women, youth and children by providing growth-stage social enterprises with funding, high-engagement management support, training, access to networks and digital impact evaluation.

A social enterprise is an organisation working to create social or environmental change for vulnerable communities by applying market-based solutions that ensure the entity’s long-term sustainability and engagement.

This year, as lockdowns began, revenues dropped and communities suffered due to economic crisis, we galvanised our community of philanthropists to provide the key support our social entrepreneurs needed to continue improving lives throughout this moment of crisis:

TAILORED FUNDING

Focused, systematic funding helps each social enterprise measurably sustain and grow its impact on vulnerable women, youth and children.

MANAGEMENT SUPPORT

Whilst funding is crucial, it is not sufficient on its own for growth. This is why we amplify the impact of every £1 we give in grants with a further £0.47 in high-engagement technical support, training, mentorship and access to networks. Our goal is to help transform high-potential, market-based solutions into sustainable, scalable social enterprises that can effectively respond to the needs of the poor and vulnerable.

PERFORMANCE EVALUATION

Using customised business intelligence tools, we support social enterprises to better monitor and analyse their progress against social impact and financial sustainability targets. This approach reduces the cost of reporting whilst ensuring that management decisions are driven by evidence.

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Women's Empowerment

Economic participation among women in the Arab region is among the lowest in the world. In times of crisis, particularly this past year, women are most affected and bear the burden of supporting their families.

Women in the region make up 62% of the informal labour force, often working in sectors offering little job security, health insurance or employment rights. Over 39% of young Arab women are currently unemployed - a figure that is likely to increase as the impact of the COVID-19 public health crisis worsens and inequity deepens.

Alfanar tackles the social and economic barriers that women face by backing highpotential social enterprises creating safe, dignified work for women and improving education for girls. Out of 17 social enterprises, 82% are led by women entrepreneurs.

From helping widows in Upper Egypt establish their own microenterprises to employing refugee women as skilled embroiderers, our venture philanthropy support works to tackle the systemic challenges that too often deny women the opportunity to fulfil their potential.

We are grateful to the numerous individual donors who have backed our social enterprises economically empowering women. Special thanks to Scale Partners SODIC and the Global Fund for Widows for their multi-year backing, and to CCC and the British Council for their support this year.

Women's Empowerment: Institutional Partners

6,124 Women Employed or Running MicroEnterprises in 2020

35%

Increase to Income for Women Micoloan Recipients and Farmers in 2020*

3,533 Female Breadwinners Running Businesses through Microloans

*Note: Women's average income in the portfolio grew by 25% for 2020.

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Joining the Alfanar family was one of the best things that ever happened to Life Vision.

Mona Wissa Life Vision CEO

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IMPACT STORY: MANAR AHMAD

TOGETHER FOR YOU (TFY) TRAINEE - CAIRO, EGYPT

Manar Ahmad is a participant on the TFY training programme, which gives young women from low-income communities in Cairo the skills and qualifications they need to become professional caregivers to the elderly.

Manar came to TFY after she lost her business and her confidence. She felt lost in life and her health had declined.

After seeing an advertisement online for TFY's training programme, she decided to apply. She signed up reticently, uncertain whether the organisation could really help her develop new skills and give her a new career.

Over the 40-day training course with TFY, she not only gained the practical skills she needed to care for elderly patients, but she regained her confidence and hope.

Today, she not only provides for herself and her son, but has been at the frontlines serving vulnerable elderly patients throughout the pandemic. Aside from the financial independence regular work has provided, Manar feels prouder than ever because she is serving elderly patients who really depend on her.

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Children's Education

The COVID-19 pandemic has disrupted education for over 100 million children in the Arab region.

In addition to pre-existing weaknesses in children’s education, COVID-19 has locked millions of children, especially those from poor and disadvantaged communities, including refugees, out of meaningful learning.

Alfanar supports social enterprises bringing quality education tools and solutions to vulnerable children in Egypt, Lebanon, Jordan and refugee communities. Over the course of 2020, we worked closely with our education social enterprises to digitise curricula and to provide continued learning support to children and parents.

Two of our investees digitised curricula to bring learning online throughout the crisis (Tabshoura, Educate Me), while four (Educate Me, Wataneya, MMKN, Tabshoura) have signed agreements to became governmentcertified educators.

We are grateful to the numerous individual donors who have backed Alfanar's investments in social enterprises improving education delivery in the Arab region, as well as Scale Partner SODIC.

Children's Education: Institutional Partner

10,474 Children Given Access to Quality Education in 2020

351

Schools Supported in 2020

1,976 Teaching Staff Trained in 2020

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Alfanar helped us to conquer our fears, and to move out of our comfort zone.

Yasmine El Hagry Wataneya Society, Deputy Executive Director

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IMPACT STORY: SOUHAILA

TABSHOURA TEACHER - LEBANON

Souhaila Nassar is a chemistry teacher for middle- and high-school level students in Lebanon.

When Souhaila first heard about Tabshoura, she was delighted to find out that a free and accessible, interactive learning resource existed to support teachers. She was particularly interested in its ability to help her create her own digital content.

Prior to COVID-19, Souhaila was already using the Tabshoura platform regularly because she often struggled to teach those of her students who did not have laptops at school. Tabshoura’s offline feature helped her to develop a strategy that successfully engaged these students. She would ask students to explore a topic at home using the digital platform, which she then explained in further detail the next day in class.

With schools closing due to COVID-19, in early 2020 Tabshoura soon became an increasingly significant part of Souhaila’s teaching. In spite of the lockdown, Tabshoura gave her the ability to provide her students with engaging, interactive lessons remotely. She received such positive feedback from her students and her colleagues that they wanted to learn more about Tabshoura.

"I have had a great experience with the Tabshoura platform for middle school," she says. "Learning is contextual and this is what distinguishes the Tabshoura platform; it is aligned with the Lebanese curriculum and Lebanese culture."

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Youth Employment

At least 30% of youth across the Arab region are out of work or education. The unemployment rate amongst young women is estimated to be 42%.

The need to create meaningful, sustainable jobs for youth in the region has never been more pressing. Young people represent a source of huge potential, yet the region's youth lack many of the skills required to secure work in an increasingly digital world.

In 2020, we worked closely with our social enterprises -- SE Factory and B.O.T. -- to support a growing number of disadvantaged youth, virtually during lockdown, to access coding, software development and other full-time or outsourced and remote digital employment opportunities. In 2020, Alfanar’s social enterprises facilitated employment for youth with 31 companies located across eight different countries.

Whether employing underprivileged youth as digital freelancers (B.O.T) or training them and connecting them to employers to become fullstack web developers (SE Factory), Alfanar's Youth Employment Portfolio is helping create a new generation of skilled digital workers.

We thank the numerous individual donors who have backed Alfanar's investments in social enterprises creating sustainable employment opportunities for youth, as well as institutional partners Bank of America and LIFE.

Youth Employment: Institutional Partners

290 244 Youth Given Youth Vocational Training Employed in 2020 in 2020

$1,028 Average Monthly Salary for Youth Employed

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Alfanar are advocates for our mission. They are with us as partners and passionate about our cause.

Marianne Bitar Karam B.O.T CEO

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IMPACT STORY: RAED GHANEM

SE FACTORY GRADUATE - LEBANON

Raed Ghanem completed his studies at a technical college in 2017 in his home town in Hasbaya, Lebanon. The lack of job opportunities in his village and his family’s precarious financial situation kept Raed out of work for two years. Despite the lack of jobs, each day Raed would borrow his brother's laptop and search for new opportunities and training programmes online. He didn't know exactly what he wanted to do, but he knew that he wanted to continue learning, and that he wanted to work. He just didn't know where to start.

In 2019, a friend introduced Raed to SE Factory, a youth coding training and employment programme launched by The Nawaya Network. Raed signed up with the dream of starting his own programming company in his village. When the training ended, SE Factory offered Raed a position through which he could refine his programming skills and gain practical experience in the field. He jumped at the opportunity.

Raed went on to complete SE Factory's Foundations of Computer Science course and the intensive Full Stack Web Development Bootcamp with high scores, becoming one of their top students. Soon after graduating, he was hired as the lead web developer at a company in Beirut. SE Factory’s training gave Raed the skills and confidence he needed to excel in his new role.

Raed recently enrolled in university to continue his studies alongside work, giving him control over his future and even greater prospects.

"SE Factory really changed me 180 degrees," he says. "I went from being someone who would open a borrowed laptop every day in search of something with no direction, to someone who is a successful lead developer at a company."

Raed is one of 150 youth who have been able to go through SE Factory's full-stack web development programme thanks to Alfanar's venture philanthropy funding and support.

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Refugee Empowerment

Refugee children are five times more likely to be out of school than their non-refugee peers, and fewer refugee girls will go to school than their male counterparts.

Even before the pandemic, host countries in the region lacked the resources and infrastructure to accommodate large influxes of refugees, placing huge strain on public services and often leading to high unemployment and dropout rates among refugees.

For many refugees COVID-19 has made a desperate situation worse, with 84% reporting a loss of livelihoods and income during the pandemic. With a majority of refugees dependent on day wages, lockdown quickly led to hunger and hardship for many families.

In 2020, Alfanar’s remarkable community of donors continued to back social enterprises working to educate and create dignified employment for refugees, including WPA/Soufra, Inaash, MMKN, SE Factory, NaTakallam, and Shatila Studio. It also banded together to deliver two months of desperately needed food boxes to 500 vulnerable refugee families who had lost work.

Additionally, Alfanar backed a special project with social enterprises Inaash and Shatila Studio to create work for refugees embroidering facemasks, half of which could be sold and half of which would be distributed in camps for free.

We thank the numerous individual donors who have backed Alfanar's investments in social enterprises educating and employing refugees, as well as institutional partners the Abdulla Al Ghurair Education Foundation and Square Zero.

Refugee Empowerment: Institutional Partners

451

Refugees Employed in 2020

956

Refugee Children with Access to Quality Education

10 Number of Refugee Camps

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Alfanar has been a great support, on both a technical and financial level.

Mohammad Hassan, Inaash General Manager

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IMPACT STORY: FATIMA

SHATILA STUDIO EMPLOYEE

Fatima first came to Shatila Studio in 2014 as a Syrian refugee fleeing war. When she arrived in Lebanon with her family, she quickly realised that she would have to support her husband in providing for the family because of the difficult work conditions for Syrian refugees.

After receiving training that built upon her existing skills in embroidery and knitting, Fatima started working with Shatila Studio. Her exquisite needlework talent made her handmade items stand out. Fatima acknowledges that the work is demanding, particularly when balancing chores at home, but the feeling of being able to contribute to the family income and fulfill her children's needs makes it all worthwhile.

"I came to Shatila Studio because I needed a job,” she says. “I did not have to work back in Syria, but then war took over, we had to leave Homs and we came to Lebanon. Conditions here are hard. I quickly realized that I have to support my husband in providing for our family.”

When the COVID-19 pandemic hit, coupled with a deteriorating economic situation in Lebanon, demand for handmade products dropped -- as did work. With Alfanar’s support, Shatila Studio sent Fatima and her family food boxes to help feed her family.

In the future, Fatima hopes to be resettled along with her family somewhere where she can open her own atelier and provide a better life for her four children.

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Responding to Crisis: Beirut Blast

The August 4th Beirut Port explosion was one of the largest non-nuclear blasts in history. In a matter of seconds, it stole the lives of over 200 people, left thousands injured, and destroyed the homes and livelihoods of hundreds of thousands more.

The longer-term effects of the explosion are myriad. Property destruction costs are estimated at $3 billion. Widespread psychosocial trauma among children is reported, and damage and destruction to at least 163 schools around the blast site will constrain education for 85,000 affected learners for a long time to come.

At Alfanar, we banded with our social enterprises to provide direct support to those impacted by the blast, and also to alleviate hunger for thousands of impacted families through our food sector social enterprises -- Lebanese Food Bank, ShareQ, Soufra, and Souk el Tayeb -- delivering a mixture of dry food boxes, Lebanese ‘mouneh’ products, hot meals, and longer-lasting vacuum-packed meals. Beyond their focus on hunger alleviation, our food social enterprises have created 42 steady kitchen and distribution jobs.

£590k+

Emergency Funding Raised

38,851

Hot Meals Provided

1,770 Food Boxes Distributed

30 35 Damaged Buildings Youth Employed Renovated as Construction Workers

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Social Enterprises Receiving Additional Management Support

*The figures above represent results to date, but deployment will continue into 2021 to reach full targets

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Being supported by Alfanar in the reconstruction was extremely important to us.

Roula Haidar L'artisan du Liban General Manager

Alfanar also began working with social enterprise BEDCO by March NGO, which trains disadvantaged youth from Tripoli and the Beirut suburbs to pursue professions in the construction sector.

Emergency Lebanon: Institutional Partners

With BEDCO, Alfanar is not only repairing and enabling over 100 damaged small businesses and social enterprises in Mar Mikhael, Gemmayze and Karantina to re-open, but we are creating meaningful work for 80 disadvantaged youth and suppliers from Tripoli. We are incredibly grateful to ecosystem partners on the ground, including Stand for Women, the UN Global Compact Network, ACTED and many others, for their invaluable support in identifying businesses in need of repair, especially those that are women-led.

We have been absolutely overwhelmed by the generosity of over 300 individual donors to Alfanar's Emergency Lebanon Appeal, as well as corporate and institutional partners Impact Lebanon, PepsiCo, Bank of America Foundation, Genesis Charitable Trust, and Connolly England, who have helped us raise over £770,000 in emergency funding to support relief efforts through social enterprise.

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Back to Business after the Blast: L'artisan du Liban Show Room Refurbishment by BEDCO

Social enterprise L'artisan du Liban's showroom in Gemmayze is located in the immediate impact zone of the explosion, and was heavily damaged.

Alfanar's rapidly deployed emergency funding and support meant that L'artisan du Liban's showroom was repaired within 33 days of the explosion. Their showroom is once again open for business. L’artisan du Liban creates work for more than 1,000 artisans across the country.

L'artisan du Liban is the first of 100 such organisations whose premises will be refurbished thanks to Alfanar's Emergency Lebanon Appeal funds and support.

Click here to read an interview with L'artisan du Liban's General Manager Roula Haidar

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Map of buildings under renovation by Alfanar with Bedco by March

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Beyond the Blast: Social Enterprise Support Fund

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After barely surviving the multiple crises that they have faced this year, social entrepreneurs impacted by the August 4th explosion now find themselves in a precarious strategic and financial position.

Alfanar has responded by developing a focused crisis management programme to support six social enterprises affected by the blast, ensuring that they can get back on their feet, sustain and scale their impact over the long term. The six social enterprises selected are: FabricAID, Souk el Tayeb, L'Artisan du Liban, Vanina, Live Love Recycle and Marsa.

We are grateful to be partnering with Oxfam for this initiative, with funding from Global Affairs Canada, the Humanitarian Coalition and Impact Lebanon.

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Training Jordan's Social Enterprises

In 2019, we began supporting the growth and sustainability of Jordan's social enterprises by delivering training to social enterprises working to educate, employ and empower in East Amman, Ajloun and Tafileh.

In partnership with Plan International, Ruwwad and EURICSE, Alfanar is providing training, management support and impact analysis to accelerate the growth of 60 social enterprises, like Robotna (see below), as part of an EU-funded initiative.

This training focuses on social enterprises operating in three of Jordan's most impoverished districts, with the ultimate objective of empowering some of the country's most marginalised groups through job creation, social innovation and impact.

Training Jordanian Girls in STEM & Robotics

Robotna is a social enterprise that empowers young girls in Jordan to learn robotics.

Like many educational businesses that rely on in person training, Robotna had difficulty in switching their programmes online while maintaining high impact during COVID-19.

Alfanar supported them to overcome this challenge by helping them to measure their social impact and develop a long-term, strategic impact model.

Robotna is one of 60 Jordanian social enterprises that will receive Alfanar's training and management support between 2019-2021.

Alfanar helped us to measure our societal impact by developing a long-term, strategic impact model.

Jaser Al-Harasis Founder, Robotna

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Impact Investment

Preparing to Accompany Social Enterprises One Step Further

As the first venture philanthropy organisation in the Arab world, Alfanar has devised a unique approach to supporting the sustainable growth of bold social entrepreneurs creating lasting hope, dignity and opportunity for vulnerable women, youth and children across the Arab world. Over the past 17 years, we have iterated and formalised a rational effective social investment approach that aims to a) fill the funding gap for growth-stage social enterprises across the Arab region with meaningful long-term patient grants and zero-interest repayable grants, b) respond to their particular needs with tailored training and high-engagement management support and c) strengthen their response systems with real-time data analytics.

As Alfanar exits a growing number of impact investment-ready social enterprises, we have identified a growing need for social enterprises to be accompanied one step further with tailored financing, further management support and impact monitoring. In 2020, we continued working on evolving a regional impact investment strategy with the support of an impact fund advisor in Lebanon and part of our Lebanon Country Director’s time.

This work has been supported by The Asfari Foundation, the IFC and another private foundation.

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Outreach

Sadly, 2020 prevented us from gathering in person. Due to social distancing measures, we were forced to cancel our 15th Anniversary Dinner in London, where we celebrate the achievements of our social enterprises and raise the funds needed to take their work further.

In keeping with our focus on pivoting to transform crisis into opportunity, on 25th June 2020, we held a virtual gathering - Turning Crisis into Opportunity: Social Entrepreneurs Responding to COVID-19 & Economic Crisis.

CNN's Chief International Correspondent Clarissa Ward facilitated a fireside chat with three of Alfanar's social entrepreneurs -- Marianne Bitar Karam of B.O.T., Yasmine El Hagry of Wataneya Society, Mohammad Hassan of Inaash -- and explored how Alfanar's venture philanthropy support helped them innovate, adapt, and withstand the impact of COVID-19 and economic crisis.

Enormous thanks to the over 200 guests who joined us and contributed to the discussion.

The event recording is available to watch online.

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2020 Performance

TURN CRISIS INTO IMPACT

In early 2020, we met targets to add two pilot investments in Egypt and Lebanon, Takafoo and The Lebanese Food Bank, respectively. However, once COVID-19 lockdowns began in March 2020 across all of Alfanar’s operating environments, we pivoted our focus quickly to provide much needed management support to our 17 social enterprises as they adjusted their budgets and plans to withstand mounting pressures and to respond to growing need on the ground. We employed prudent flexibility in our grant and training support, delivering over 9,000 hours of management support with special emphasis on crisis management, risk mitigation, and digitisation to enable them to continue delivering on their missions. In addition, we launched our COVID-19 Survive & Thrive campaign, which included support for our social enterprises as well as emergency response efforts to support families who had lost work with our social enterprises because of lockdowns. In response to the August 4th Beirut explosion, we launched an Emergency Lebanon Appeal to raise additional funds aimed at a) backing social enterprises to provide food relief and reconstruction services to those impacted by the blast and b) to provide psychosocial support, additional funding and management support to social enterprises impacted by the blast. Despite the numerous challenges faced in 2020, we increased our grant funding by 41%, disbursing over £1 million in grant funding to social enterprises providing education, employment and economic empowerment to vulnerable communities. We increased our impact in 2020 by 65%, reaching over 41,000 vulnerable women, youth and children through our social enterprises. Amidst responding to multiple crises, Alfanar did not lose sight of its mission to help social enterprises increase their resilience and financial sustainability. In 2020, our portfolio recovered 55% of cost on average through self-generated revenue.

BOLSTER SOCIAL ENTERPRISES REGIONALLY

Beyond Alfanar’s direct venture philanthropy support, we aim to bolster the growth of social enterprises more broadly across the Arab region. In 2020, with support from The Asfari Foundation, we began developing a new section of our website dedicated to sharing tools, animated learner videos of our ASSET curriculum and other relevant resources in English and Arabic. Completion of the learner videos was delayed to 2021 because of the need to manage the impact of COVID-19 on Alfanar and its social enterprises. In Amman, Ajloun and Tafileh, Jordan, we delivered two rounds of ASSET training to 60 aspiring social enterprises working to economically empower women and employ youth. Due to COVID-19 lockdowns, we adapted and ran a majority of our training and mentoring sessions in Jordan virtually. In Egypt, two of our social enterprises -- the Future Eve Foundation and Takafoo -- successfully grew their work from Upper Egypt to Alexandria, marking first steps towards further impact growth. Finally, with restricted funding for pre-start-up costs, we advanced work on an affiliated impact investment vehicle to extend the financing lifecycle available to social enterprises across the region.

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BROADEN ENGAGEMENT

Due to ongoing lockdowns we postponed our 15th anniversary dinner in London, originally planned for June 2020, and redoubled our outreach efforts towards online fundraising, digital outreach and virtual gatherings. In 2020, Alfanar successfully partnered twice with its affiliate Alfanar, Inc., US to run the COVID-19 Survive & Thrive Campaign and the Emergency Lebanon Appeal. These campaigns, coupled with enhanced and more regular digital communication, drove a growth in Alfanar’s newsletter signups and social media followers. Our June 25th virtual gathering, featuring three of Alfanar’s social enterprises in conversation with CNN Chief International Correspondent Clarissa Ward, successfully engaged our community digitally and was well attended by over 200 supporters. Over the course of the year, a growth in media mentions about Alfanar’s work and the participation of Alfanar senior management team members in virtual webinars and public speaking engagements helped grow Alfanar’s community of supporters and followers even further.

4

GROW SUPPORT

In May 2020, we appointed a part-time Development Director to develop and oversee the implementation of a fundraising and outreach plan that helps us achieve the impact and growth goals approved in the 2019-2022 strategy while managing the significant changes to our fundraising, outreach and engagement channels introduced by the pandemic. Two targeted fundraising campaigns enabled us to grow income by 63% in 2020, to double our donor base from 2019 and to improve donor retention. Additionally, we secured a growing number of institutional partnerships as part of an effort to broaden and diversify support for our venture philanthropy work. The success of our campaigns and the growth in support from trusts and foundations resulted in 70% of 2020 income being restricted compared to 41% in 2019.

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STRENGTHEN OPERATIONS

In response to COVID-19, Alfanar actively managed its cost base in the face of income uncertainty in the early part of the year. We furloughed selected UK staff members and conducted regular reforecasts to ensure responsiveness and agility in our support to social enterprises throughout the year. The Board approved a new staff handbook in Q1 2020, and we completed internal staff training around new policies in mid-2020. Following a data breach at our CRM host, which was promptly reported to our donors, the ICO and the Charity Commission, we engaged a GDPR consultant to help us renew our Data Protection policies. We also began assessing a new virtual server, CRM and grant management options. The growth in special projects funded through restricted partnerships allowed Alfanar to appoint two consultants to support with training and programme delivery.

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3

4

5

2021 Targets

1

SUSTAIN THE JOURNEY TO EDUCATE, EMPLOY & EMPOWER

In 2021, Alfanar aims to grow its venture philanthropy support to social enterprises working to educate, employ and empower vulnerable children, youth and women across Egypt, Lebanon and refugee communities, helping them to continue responding to the impact of the pandemic, especially on education and employment, while remaining mission-driven and focused. We aim to exit at least one social enterprise in Egypt and Lebanon, respectively. In Egypt, in partnership with GFA and the Swiss Agency for Development and Cooperation, Alfanar will begin supporting up to eight social enterprises working to empower refugees and migrant communities across Egypt with funding, ASSET training, business planning and highengagement management support. In 2021, we aim to complete our Emergency Lebanon food relief and reconstruction work as well as our grants and training to social enterprises impacted by the Beirut blast. Our efforts, in Lebanon, will nonetheless continue supporting social enterprises to withstand the deepening economic crisis and its effects on the vulnerable communities they serve.

SCALE & STRENGTHEN SOCIAL ENTERPRISES

In 2021, we will make available a new section of our website aimed at strengthening aspiring social enterprises with open-source tools, resources and learner videos in English and Arabic. In 2021, we will complete a two-year programme conducted in consortium with PLAN International, Ruwwad and Euricse supporting the growth of social enterprises in Jordan with a focus on women’s economic empowerment and youth employment. As part of the consortium, we will be producing a lessons learnt report informing our future plans for Jordan and beyond. In 2021, we will work with many of our more mature investments on taking the first steps towards regional impact growth. We will develop business plans for the Amal Microloan Project for Widows’ Empowerment with the Future Eve Foundation and Takafoo that inform growth across Egypt and potentially to other markets in the region. We will support at least two of our Lebanon Portfolio social enterprises -- FabricAID and B.O.T -- to begin impact expansion efforts to Jordan. Finally, we aim to complete pre-start up work on an affiliated impact investment vehicle.

BUILD ALFANAR’S COMMUNITY OF SUPPORTERS & FOLLOWERS

Alfanar will continue engaging and building its community of supporters through at least three more virtual gatherings in 2021 that aim to educate and inspire the community about how Alfanar’s support to social enterprises has helped them overcome multiple crises. Our virtual event on April 8th, 2021 moderated by Egyptian adventurer and social entrepreneur Omar Samra brought together over 100 supporters to engage with our social entrepreneurs. In 2021, we will work with our affiliate Alfanar, Inc., US again to run a Spring campaign during Ramadan and an end-of-year fundraising campaign that showcase case studies underscoring stories of impact made possible through Alfanar’s work. Alfanar will offer more internships in 2021 to build awareness of our venture philanthropy work with next generation ambassadors. As part of this effort, Alfanar will launch the first round of its new Luminary Summer Internship programme for high school students in 2021. Additionally, Alfanar will begin working to add up to three new Trustees over the next 12-18 months.

BUILD PRIDE & COMMITMENT AMONG SUPPORTERS

In 2021, Alfanar will increase the frequency and improve the quality of communication and engagement with our community of supporters in an effort to grow their understanding of, engagement in and pride about Alfanar’s work. In parallel to the two fundraising and outreach campaigns we will run during Ramadan and the end of the year, Alfanar will launch a series of Philanthropy Circles to engage its longtime supporters more regularly through curated reporting and smaller gatherings. Finally, we will continue cultivating and diversifying the number of corporates, trusts and foundations we partner with to grow the impact of Alfanar’s work. Our aim is to grow our support by at an additional 30% in 2021 through these combined efforts.

REFRESH STRATEGY & FOCUS ON STRUCTURAL GROWTH

Alfanar will engage in a strategy and charitable objects review process with the aim of approving a revised 2022-2025 plan by year end. We will also conduct a reorganisation of team resources with the aim of identifying missing roles needed or reframing roles and responsibilities within the team. Alfanar aims to automate and join up key systems, including grant, donor and financial management, to ensure there is efficiency and effectiveness across these critical functions. Building on 2020’s income and impact growth, Alfanar will dedicate time and resources in 2021 to building up our systems and processes to ensure continued growth moving forward.

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EGYPT PORTFOLIO

EDUCATION

Brighter Tomorrow for Child Protection

Caring for Disadvantaged Children with Autism Total Grant Since 2018: £44,134

Social Impact: 788 children with autism received 14,334 therapy sessions Cost Recovery: 65%

Educate Me

Delivering High-Quality Education and Training a New Generation of Educators

Total Grant Since 2014: £471,569

Social Impact: 6,100 educators trained and 841 children educated Cost Recovery: 97%

Wataneya

Improving Standards of Care and Learning in Egyptian Orphanages Total Grant 2018: £15,013

Social Impact: 80 children in five orphanages with improved education and care Cost Recovery: 20%

WOMEN'S EMPOWERMENT

Future Eve Foundation

Offering Hope to the Widows of Upper Egypt through Microcredit

Total Grant since 2012: £1,038,455

Social Impact: 16,321 widows and female breadwinners set up micro-enterprises Cost Recovery: 90%

Life Vision for Development

Helping Women Farmers in Upper Egypt to Improve Yields Total Grant: £177,145

Social Impact: 1,566 female farmers trained Cost Recovery: 8%

Together For You

Training Low-Income Women to Become Caregivers to the Elderly

Total Grant 2016: £65,635

Social Impact: 543 women trained and 406 employed as caregivers Cost Recovery: 93%

Takafoo

Improving Working Conditions and Incomes for Young Female Farmers Total Grant since 2020: £19,071 Social Impact: 1,167 women in safe, dignified employment Cost Recovery: 60%

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LEBANON PORTFOLIO

EDUCATION

Tabshoura by LAL

Providing a Digital Curriculum to Support the Education of Underprivileged Students Total Grant since 2020: £22,717

Social Impact: 6,091 children accessing online education Cost Recovery: 10%

MMKN

Enabling Vulnerable Youth to Pass the Brevet Exam

Total Grant since 2015: £287,375

Social Impact: 10,264 students receiving support across 89 schools in Lebanon Cost Recovery: 35%

EMPLOYMENT

B.O.T

Bridging the Gap Between Trained Youth and Employers Total Grant Since 2019: £58,634

Social Impact: 177 disadvantaged youth placed in freelance employment Cost Recovery: 78%

SE Factory

Training and Employing Youth in Coding

Total Grant Since 2018: £332,742 Social Impact: 164 Youth Trained and 74 Employed as Coders Cost Recovery: 47%

EMERGENCY/ENVIRONMENT

FabricAID

Providing Access to Quality Second-Hand Clothing for Vulnerable Communities

Total Grant Since 2018: £138,065

Social Impact: 32,058 low-income people given access to quality clothing Cost Recovery: 40%

Lebanese Food Bank

Alleviating Hunger and Reducing Food Waste

Total Grant: £98,115 Social Impact: 1,770 food boxes distributed Cost Recovery: N/A

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REFUGEE PORTFOLIO

EDUCATION & EMPOWERMENT

WPA/Soufra

Refugee Food Truck and Catering Business, Microloans and Preschool

Total Grant Since 2013: £478,601 Social Impact: 166 women employed and 181 children educated Cost Recovery: 25%

EMPLOYMENT

Inaash

Employing Women Refugees in Embroidery

Total Grant Since 2015: £200,567 Social Impact: 443 refugee women employed as embroiderers Cost Recovery: 57%

Natakallam

Online Arabic Learning Platform Employing Refugees

Total Grant Since 2016: £77,821 Social Impact: 81 refugees employed Cost Recovery: 121%

Shatila Studio

Employing Women Refugees in Textile Production

Total Grant Since 2019: £24,988 Social Impact: 100 female refugees employed as artisans Cost Recovery: 28%

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2020 Financial Review

Income raised in the year ended 31 December 2020 was £2,190K (2019: £1,341K), an overall increase of 63% from the prior year.

Generous support from our Board, with unrestricted donations of £231k (2019: £186K), coupled with unrestricted grants, including funds from Alfanar, Inc., US of £102k (2019: £349K), and Bank of America £53k covered all of the Charity’s fundraising and support costs in 2020, enabling additional donations raised from individuals and through a series of events and campaigns held throughout the year to be directed towards Alfanar’s grants and management support to social enterprise investees.

The Trustees appreciate the invaluable support from other individuals. This increased dramatically in the year due to fundraising campaigns and amounted to £611k (2019: £270k) in the year, of which £119k (2019: £201k) is unrestricted.

We also received support for our Impact Fund development from IFC (£38k) and other institutions.

Corporate donors, notably SODIC, gave Alfanar £90K.

In 2020, resources expended amounted to £1,825k (2019: £1,477k), an increase of 23%. Of this amount, direct grants to social enterprises rose by 41% to £1,055K (2019: £747K).

Staff costs in 2020 amounted to £364K (2019: £334K). Of this sum, £142k or 39% (2019: £141K), was expended on staff dedicated to the provision of training or management support to social enterprises.

In addition to this support expenditure, the cost of consultants providing management support to social enterprises in 2020 was £121k (2019: £129k).

Alfanar received significant support from institutional donors, notably from the Al Ghurair Foundation for Education (£131k), Impact Lebanon (101k), Oxfam (£50k) & LIFE (£38k).

The total cost of raising funds was £280k (2019: £257k), representing 13% of total income (2019: 19%).

Income

----- Start of picture text -----
Individuals
28%
Institutional Support
55%
Corporates
5%
Board Contributions
12%
----- End of picture text -----

Charitable Activities

----- Start of picture text -----
SE Management Support
20%
Lebanon Grants
41%
Egypt Grants
17%
Jordan Training 41
Emergency Grants 3%
19%
----- End of picture text -----

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Reference and Administrative Details

Alfanar is a registered charity (No. 1105048) and a company limited by guarantee (No. 5141908) with no share capital. The Memorandum and Articles of Association provide that the liability of each member is limited to £1 in the event of the Charity being wound up.

Alfanar’s Memorandum and Articles of Association were most recently updated on 21 August 2017. In line with the strategy refresh process, Alfanar intends on reviewing its charitable objects in 2021. To further the objects of the Charity, the Trustees established a trading subsidiary ‘Beacon Social Capital’, which was incorporated on 27 December 2018 (No. 11741458). This company has yet to commence trading.

Alfanar’s head office in London employed six staff members as of December 2020, with a further employee based in Jordan. Alfanar operates a branch in Egypt registered with the Ministry of Social Solidarity and International Cooperation (No. 67/2015, expired 25 May 2020). In March 2021, following the publication of updated NGO legislation, Alfanar submitted a request to renew its registration. We have received confirmation from the Egyptian Ministry of Social Solidarity that we are able to continue operating in Egypt while our renewal is processed. Alfanar in Egypt is led by a Country Director and supported by a Finance Manager and a Portfolio Manager.

Alfanar in Lebanon (No. 907) is an independent affiliate of the UK registered charity. For the duration of 2020, all income and expenditure relating to Alfanar's work in Lebanon were undertaken by Alfanar in the UK. Alfanar in Lebanon is in the process of reviewing its Articles of Association ahead of signing an affiliate agreement. It established bank accounts in Lebanon in 2021. In 2020, Alfanar in Lebanon was led by a Country Director and supported by a Portfolio Manager. It also had two short-term consultants supporting projects related to Emergency Lebanon response efforts.

Alfanar in Libya (No. 1651) is an affiliate of the UK registered Charity. Due to security issues, Alfanar activity in Libya is currently suspended.

Alfanar, Inc., US is an independent affiliate 501(c)(3) not-for-profit entity (EIN-7531970321) that actively supports Alfanar’s mission through grants and is striving to increase public support. Its transactions are not included in these financial statements. It reports independently to the US Internal Revenue Service and the states of Massachusetts and New York. Alfanar seconds around 10% of the time of its Executive Director, Finance Manager and Development Officer to support Alfanar, Inc., US with outreach, Board reporting and annual filings.

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Objects of the Charity

Alfanar’s Memorandum of Association states that the public benefit objects for which it is established are:

  1. The advancement of education and learning for the public benefit and to educate men, women and young people of all ages from a broad range of geographical, ethnic, social and economic backgrounds in the Arab World (this includes all member countries of the Arab League), to enable them to realise their full potential as individuals, within their communities and within society as a whole.

Our support package aims to grow the impact and financial sustainability of the social enterprises we back. Alfanar in the UK, with the support of Alfanar, Inc., US, raises and disburses funds to support our work in Egypt, Lebanon and Jordan.

  1. To develop the capacity and skills of the members of socially and economically disadvantaged communities in countries in the Arab World (including all member countries of the Arab League) in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society.

In line with its venture philanthropy mission, Alfanar aims to support the growth of sustainable social enterprises delivering quality education, meaningful employment and lasting economic empowerment opportunities to vulnerable children, youth and women across the Arab world. We provide grants and zerointerest repayable grants, management support, training, mentorship and performance evaluation to social enterprises that pass our due diligence and approval processes.

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Structure, Governance and Management

Alfanar's Board of Trustees is responsible for the overall governance of the Charity, makes decisions on the strategic direction and policies of Alfanar and delegates day to day management and implementation of these decisions to the Executive Director.

All policies are approved by the Trustees to comply with UK legal requirements and good business practice. The Board of Trustees is authorised to appoint new Trustees or to fill vacancies arising through resignation or death. The Trustees are members and directors for Companies Act purposes. They serve three year terms and may be reelected five times, or exceptionally, six times. In 2020 a new Trustee, Maysa Jalbout, was added to the Board.

Cynthia J. Oakes also serves as a Director of Alfanar Inc. US. Julia Middleton was reelected in September 2020. Lubna S. Olayan was re-elected as Chair of the Board in December 2020.

Board Meetings

The Board endeavours to hold at least one Board meeting in either Egypt or Lebanon every other year to ensure that Trustees witness Alfanar’s venture philanthropy process and social enterprises first-hand. Due to travel restrictions, Board visits are currently on hold.

The Board meets quarterly and has conducted virtual meetings since 2020. There are three sub-committees reporting to the Board each with specific terms of reference and functions delegated by the Board (updated in 2019), which also meet four times a year. In 2020, the Board removed the Fundraising Committee in an effort to spread fundraising responsibilities among all Board members. It also established an Impact Fund Taskforce to oversee the development of an independent, but affiliated impact fund.

Investment Committee

Trustee Induction

Shortly after appointment, new Trustees have an induction meeting with the Executive Director to review and better understand Alfanar’s business plan and targets, the way it selects and manages social enterprises, and other operations. They are also given the Charity Commission guidance, “The Essential Trustee”.

The Investment Committee reviews requests for venture philanthropy grant and management support from social enterprises presented by the Investment Director and Country Directors. Suitable social enterprises are scrutinized and endorsed by the committee before review for approval by the Board.

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Finance Committee

The Finance Committee scrutinizes Alfanar's business plans, budgets and management accounts and ensures proper financial procedures and controls are in place and operating. The committee also reviews broader operations matters, the risk register, internal policy developments and the relationship among affiliates. It also oversees the audit process and reviews and endorses the statutory accounts ahead of Board review and approval.

Nominations Committee

The Nominations Committee helps the Board identify the appropriate mix of skills and capabilities it requires for effective leadership and oversight. Its primary function is to assess and cultivate prospective board members. Alfanar aims to add up to three new Trustees in the coming 12-18 months.

Impact Fund Taskforce

The Impact Fund Taskforce helps oversee progress on Alfanar’s efforts to extend the financing lifecycle for social enterprises and social purpose companies, explore impact investments and potentially establish an independent, but affiliated impact fund.It meets with the team working on the impact fund and reports on progress at Board meetings.

The Charity’s senior management team regularly updates the Board on venture philanthropy industry developments, Alfanar’s progress against impact and sustainability targets, and how the Charity is managing risks. This ensures that Alfanar’s venture philanthropy approach remains in line with best practice. The Board of Trustees and the senior management team comprise the key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year.

In May 2020, Alfanar appointed a dedicated Development Director, with the primary aim of developing and implementing a growth-oriented fundraising and communication strategy.

Staff Pay

The pay of the senior staff is reviewed annually in conjunction with their performance targets. In view of the nature of the charity, the directors endeavour to benchmark against pay levels in other charities of a similar size. The remuneration benchmark is the midpoint of the range paid for similar roles. The Trustees last approved revised salary scales for the UK in 2019.

Key Management Personnel

Alfanar’s Board delegates authority for the operational delivery of the strategy to the Executive Director and the senior management team.

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Board of Trustees

Lubna S. Olayan (Chair)

Samir Assaf Amjad Bseisu Charlotte Boyle

Sherif Foda

Dr. Laila Iskander

Maysa Jalbout (appointed 30 June 2020)

Julia Middleton

Cynthia J. Oakes

Lady Plumbly (resigned 30 June 2021)

Finance Committee

Charlotte Boyle (Chair - Trustee)

Samir Assaf (Trustee)

Siham Bortcosh

Investment Committee

Julia Middleton (Chair - Trustee)

Matthew Courey

Mark Huang

Dr. Barbara Ibrahim

Dr. Laila Iskander (Trustee) Maysa Jalbout (Trustee)

Alfred Kettaneh

Cynthia J. Oakes (Trustee)

Lady Plumbly (resigned 30 June 2021)

Nominations Committee

Lubna S. Olayan (Chair - Trustee)

Samir Assaf (Trustee) Charlotte Boyle (Trustee) Amjad Bseisu (Trustee)

Robert Cartwright (appointed Feb 2021)

Dr. Laila Iskander (Trustee) Laura Stojcevic

Impact Fund Task Force

Samir Assaf (Chair - Trustee) Amjad Bseisu (Trustee)

Lubna S. Olayan (Trustee)

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Human Resources

In 2020, the Charity approved a revised delegation of authority, to ensure that roles are properly authorised according to level of responsibility and to maintain effective decision-making and segregation of responsibilities.

Following the full policy review undertaken throughout 2018 and early 2019, a revised policy handbook was approved by the Board in Q1 2020.Training for all staff on the new handbook was completed in Q3 2020.

Vanessa Zuabi was appointed as Development Director in June 2020. Suha Abdul Rahim was appointed as Senior Investment Officer for Jordan in September 2020. Haifa Najjar was appointed as Portfolio Manager in Lebanon in November 2020.Nadine Khalife was appointed as Portfolio Manager in Egypt in April 2021. Selena Chavez began a one-year internship with Alfanar under the Tier 5 scheme in March 2021.

The multiple pressures of the past year and the protracted separation of team members brought on by lockdowns and physical distancing measures underscored the need to create more virtual spaces and opportunities for both the London team and the global team to connect beyond specific tasks and deliverables. In October 2020, we organised a virtual team retreat and explored topics of stress management and virtual communication tips, among other issues as a way of regrouping and reconnecting the team. We began holding optional, daily virtual catch-ups and regular monthly team meetings to encourage better communication across the team. We began a reassessment of our organisational chart in early 2021 and are in the process of identifying roles and responsibilities in need of filling to both ensure effective achievement of goals and objectives as well as team cohesion, satisfaction and mental health.

Alfanar accessed a small amount of support from the UK government Coronavirus Job Retention Scheme (CJRS) after furloughing a select number of staff members. In line with pandemic guidelines and since mid-March 2020, UK, Egypt and Lebanon staff members have worked remotely, returning to the office as and when national guidelines permitted and conducting most training and management support sessions virtually with social enterprises. Alfanar in the UK reduced its office space requirements in 2020 and moved files to a donated storage space.

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Fundraising Statement

The remarkable generosity of our supporters and donors in 2020 enabled us to achieve our most impactful year to date. We are grateful for the individual, corporate and institutional donors who either pledged or renewed their support to Alfanar in 2020 and we thank all those who have contributed to Alfanar’s mission with a donation of money, time or expertise over the past year.

A significant portion of our fundraising efforts are carried out by our senior management team across the UK, Egypt and Lebanon, led by our Executive Director and overseen by our Development Director appointed in June 2020. The team successfully launched two online/offline fundraising campaigns, identified and applied for new institutional partnerships and worked to strengthen key relationships with individual, corporate and institutional partners. In 2020, these efforts were supported primarily by our UK-based Development Officer and Senior Communications Coordinator with further input from Egypt and Lebanon team members, especially in relation to country-specific donors and leads. Alfanar benefited from the support of several interns to update social media channels. The significant growth in the number of donors in 2020 increased the fundraising reporting and communications workload significantly compared to previous years.

In March 2020, we cancelled our 15th anniversary dinner, originally scheduled for June 2020.We organised one virtual gathering on June 25th, 2020, featuring three of Alfanar’s social enterprises (Wataneya, B.O.T. and Inaash) in conversation with CNN Chief International Correspondent Clarissa Ward.

The event was organised to thank donors for their support of the Survive & Thrive Campaign and to begin engaging our community directly and digitally with our work. The event was attended by over 200 supporters. Over the course of the year, a growth in media mentions about Alfanar’s work and the participation of Alfanar senior management team members in virtual webinars and public speaking engagements helped grow Alfanar’s community of supporters and followers even further.

These collective efforts led to a 27% increase in the number of donors giving to Alfanar, and a 63% increase in income. Overall donor retention in 2020 was at 27% and reflects changes to our outreach and fundraising channels and the cancellation of our annual fundraising dinner, which has been a consistent fundraising and outreach tool for the charity since 2011.

The Trustees have taken note of the Charity Commission guidance on fundraising as described in the Charity Commission publications, CC20 and CC15d. Alfanar does not use professional fundraisers, nor does it employ or condone the use of cold calls or highpressure marketing campaigns. Alfanar fundraises through virtual events, email communication, social media outreach and by pitching to institutional donors, companies, foundations, and individuals who are introduced to Alfanar through its Board of Trustees and wider network. Complaints about Alfanar’s fundraising activity are directed to the Executive Director and the Development Director of Alfanar. We have not received any fundraising complaints to date.

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Safeguarding

Alfanar endeavours to protect from harm those who work for and with us, as well as those our social enterprises serve.

As part of our three to six month due diligence process with prospective social enterprises, we check for the existence and active use of safeguarding policies and practices. In 2020, we finalised a new ASSET training module on safeguarding to ensure that social enterprises both within our portfolio and more broadly are effectively trained and supported to establish the systems required to reliably provide safe and effective care to those they serve.

In 2020, the Board approved revised safeguarding policies as part of our internal staff handbook, which all staff were trained on during the year. New joiners receive training on the staff handbook, including safeguarding, as part of induction.

Risk Management

Alfanar’s Board of Trustees has overall responsibility for ensuring Alfanar has an appropriate system of controls, financial and otherwise. It is responsible for keeping proper accounting records, which explain the transactions, disclose the financial position and comply with the Companies Act 2006 and UK GAAP. It is also responsible for safeguarding the assets of the Charity and for taking reasonable steps to detect and prevent fraud and other irregularities. It also has responsibility for identifying and managing the risks faced by the organisation.

Alfanar has a risk register that identifies the major risks to the Charity. This register is regularly updated, and processes put in place to mitigate risks. It is reviewed by the Trustees bi-annually.

Given significant health and other risks introduced by the COVID-19 pandemic, office shutdowns and broader lockdowns as well as the Beirut explosion of August 4th, the Board and the senior management team assessed and responded to emerging risks more frequently over the course of 2020, also extending proactive support and training to all investee social enterprises to ensure their budgets and operating plans could withstand the various impacts of the pandemic.

Beyond the health concerns introduced by the pandemic, which were effectively managed throughout the organisation, the following were identified as the principal risks facing the Charity in 2020/2021:

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Mitigation strategies are clarified and approved by the Board for all 24 risks identified in Alfanar’s risk register.

In August 2020, we were made aware of a data security incident in which Blackbaud, our CRM provider and a world leader in the provision of specialty software services to the charitable sector, discovered and stopped a ransomware attack. Alfanar was one of many Blackbaud clients whose data was unfortunately affected by this data security incident. We were assured that the risk to our supporters was very low as no encrypted data, including credit card information or bank details, was affected. We informed all of our donors and supporters on August 20th and also filed a Serious Incident Report with the Charity Commission and a personal data breach report with the Information Commissioners’ Office (ICO), both of which confirmed that they were satisfied with our organisation’s actions, that we acted in line with the requirements of Article 28 of the GDPR and that no further action would be required from us.

Following the incident, we engaged an independent, third party specialist to conduct an audit of our data protection policies and processes and to support us in updating and training our staff on revised policies. This will be completed in 2021. Additionally, we began researching alternative CRM, grant management and virtual server providers and taking further actions to assess and bolster the security of our website and systems.

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Reserves Policy

The Board policy is to hold free reserves which represent the next six months projected expenditure budget after deducting expenditure funded by currently held restricted reserves, confidently expected and guaranteed income. As at 31 December 2020 this target was £422k.

At 31 December 2020 reserves held totalled £839k (2019: £473k), of which £608k represented restricted funds (2019: £260k) and £231k represented unrestricted funds (2019: 213k). Designated funds as at 31st December 2020 were £4k (2019: £3k), leaving free reserves at £227K (2019: £210K).

This is £185k (2019: £170k) below the reserves target. The Board will closely monitor expenditure during the early part of 2021 and are also confident that the organisation’s fundraising strategy approved by the Board will bolster our income targets and see free reserves back to target levels by the end of 2021.

Statement of Trustees Responsibilities

The Trustees who are also directors of Alfanar for the purposes of company law are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and standard United Kingdom accounting practice (UK GAAP).

Company law requires trustees to prepare financial statements that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of those resources, including income and expenditure, of the charitable company for that period.

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

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with company law. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities

Each of the Trustees has confirmed that, so far as they are aware, there is no relevant audit information of which the Charity’s auditor is unaware, and that they have taken all the steps that they individually ought to have taken as a Trustee in order to make themselves aware of any relevant audit information, and to establish that the Charity’s auditor is aware of that information.

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Auditors

Moore Kingston Smith LLP have indicated their willingness to continue in office and are deemed to be reappointed in accordance with section 487(2) of the Companies Act 2006

Approval

This report was approved by the Trustees 20 July on __ of _____ 2021 and is signed on their behalf.

7/20/2021 TRUSTEE_____

Julia Middleton

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Partners & Supporters

Despite the numerous challenges everyone has faced this year, we have been overwhelmed by the incredible outpouring of support received from individual and institutional donors across the globe.

INDIVIDUAL DONORS

We thank the many individual donors who have backed Alfanar's venture philanthropy mission in 2020. This includes 254 individuals who supported our Survive & Thrive Campaign, 325 who gave to our Emergency Lebanon Appeal in the wake of the August 4th blast, as well as 60 general supporters.

INSTITUTIONAL PARTNERS

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Independent Auditor's Report to the Members of Alfanar

For the Year Ending 31 December 2020

Basis for Opinion

Opinion

We have audited the financial statements of Alfanar (‘the company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of 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:

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

Conclusions Relating to Going Concern

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

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

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Independent Auditor's Report to the Members of Alfanar

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

Opinions on Other Matters Prescribed by the Companies Act 2006

Other Information

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

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on Other Matters Prescribed by the Companies Act 2006

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

We have nothing to report in this regard.

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Independent Auditor's Report to the Members of Alfanar

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 51, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit.

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Independent Auditor's Report to the Members of Alfanar

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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Independent Auditor's Report to the Members of Alfanar

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

_____ Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date:____ 21 July 2021

Devonshire House 60 Goswell Road London EC1M 7AD

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ALFANAR (Company limited by guarantee no. 05141908)

STATEMENT OF FINANCIAL ACTIVITIES

(incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Funds
Note
2020
£
INCOME
Donations
2
357,083
Other trading activities
3
3,310
Income from charitable activities
4
283,299
Other income: gain on foreign exchange
-
TOTAL INCOME
643,692
EXPENDITURE
Expenditure on raising funds
279,809
Expenditure on charitable activities
346,213
TOTAL EXPENDITURE
5
626,022
Net income/(expenditure)
17,670
NET MOVEMENT IN FUNDS
17,670
TOTAL FUNDS BROUGHT FORWARD
212,980
TOTAL FUNDS CARRIED FORWARD
230,650
Unrestricted
Funds
Note
2019
£
INCOME
Donations
2
392,788
Other trading activities
3
5,644
Income from charitable activities
4
391,395
Other income: gain on foreign exchange
4,009
TOTAL INCOME
793,836
EXPENDITURE
Expenditure on raising funds
256,594
Expenditure on charitable activities
710,692
TOTAL EXPENDITURE
5
967,286
Net (expenditure) / income
(173,450)
NET MOVEMENT IN FUNDS
(173,450)
TOTAL FUNDS BROUGHT FORWARD
386,430
TOTAL FUNDS CARRIED FORWARD
212,980
Current Year
Prior Year		 Unrestricted
Funds
Note
2020
£
INCOME
Donations
2
357,083
Other trading activities
3
3,310
Income from charitable activities
4
283,299
Other income: gain on foreign exchange
-
TOTAL INCOME
643,692
EXPENDITURE
Expenditure on raising funds
279,809
Expenditure on charitable activities
346,213
TOTAL EXPENDITURE
5
626,022
Net income/(expenditure)
17,670
NET MOVEMENT IN FUNDS
17,670
TOTAL FUNDS BROUGHT FORWARD
212,980
TOTAL FUNDS CARRIED FORWARD
230,650
Unrestricted
Funds
Note
2019
£
INCOME
Donations
2
392,788
Other trading activities
3
5,644
Income from charitable activities
4
391,395
Other income: gain on foreign exchange
4,009
TOTAL INCOME
793,836
EXPENDITURE
Expenditure on raising funds
256,594
Expenditure on charitable activities
710,692
TOTAL EXPENDITURE
5
967,286
Net (expenditure) / income
(173,450)
NET MOVEMENT IN FUNDS
(173,450)
TOTAL FUNDS BROUGHT FORWARD
386,430
TOTAL FUNDS CARRIED FORWARD
212,980
Current Year
Prior Year		 Restricted
Funds
2020
£
530,471
-
1,016,156
-		 Total
Funds
2020
£
887,554
3,310
1,299,455
-		 Total
Funds
2019
£
461,778
5,644
869,778
4,009
643,692 1,546,627 2,190,319 1,341,209
279,809
346,213		 -
1,198,531		 279,809
1,544,744		 256,594
1,220,492
1,198,531 1,824,553 1,477,086
17,670 348,096 365,766 (135,877)
17,670
212,980		 348,096
259,827		 365,766
472,807		 (135,877)
608,684
230,650 607,923 838,573 472,807
Restricted
Funds
2019
£
68,990
-
478,383
-		 Total
Funds
2019
£
461,778
5,644
869,778
4,009		 Total
Funds
2018
£
899,242
12,832
565,600
-
793,836 547,373 1,341,209 1,477,674
256,594
710,692		 -
509,800		 256,594
1,220,492		 332,097
915,793
509,800 1,477,086 1,247,890
(173,450) 37,573 (135,877) 229,784
(173,450)
386,430		 37,573
222,254		 (135,877)
608,684		 229,784
378,900
212,980 259,827 472,807 608,684

All of the Charity's operations are continuing.

The annexed notes form part of these financial statements

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ALFANAR (Company limited by guarantee no. 05141908)

BALANCE SHEET AS AT 31 DECEMBER 2020

2020 2019
Note £ £ £ £
FIXED ASSETS
Tangible assets 10 3,680 3,321
Investment Assets 11 1 1
3,681 3,322
CURRENT ASSETS
Programme related investments 12 63,582 -
Debtors 13 96,697 13,843
Cash at bank and in hand 860,717 558,888
1,020,996 572,731
Creditors: amounts falling due
within one year 14 (186,104) (103,246)
NET CURRENT ASSETS 834,892 469,485
NET ASSETS 838,573 472,807
FUNDS
Restricted funds 16 607,923 259,827
Unrestricted funds
Designated funds 17 3,680 3,321
General fund 18 226,970 209,659
230,650 212,980
838,573 472,807

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved, and authorised for issue, by the trustees on 20 July 2021 and signed on their behalf by:-

7/20/2021

Trustee

Julia Middleton

The annexed notes form part of these financial statements

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ALFANAR (Company limited by guarantee no. 05141908)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash provided by operating activities
Net movement in funds
Add back depreciation charge
(Increase)/ Decrease in programme related investments
(Increase)/ Decrease in debtors
(Decrease/ Increase in creditors
Net cash (used in)
operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash (used in) / investing activities
Cash and cash equivalents at the
beginning of the year
Cash in hand
Total cash and cash equivalents at
the end of the year
14
Increase/(Decrease) in cash and cash
equivalents in the year		 £
365,766
1,252
63,582
-
82,854
-
82,858
2020		 £
303,440
1,611
-
301,829
558,888
860,717		 £
£
(135,877)
1,119
-
102,632
(26,266)
(58,393)
-
-
(58,393)
617,281
617,281
558,888
2019		 £
£
(135,877)
1,119
-
102,632
(26,266)
(58,393)
-
-
(58,393)
617,281
617,281
558,888
2019
1,611
-		 -
558,888 617,281
(58,393)
617,281
558,888

The annexed notes form part of these financial statements

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ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies
These financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and
Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared the financial statements in accordance
with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK
and Republic of Ireland (The FRS 102 Charities SORP) and the Charities Act 2011.
Going Concern
The charity has given due consideration for the effects of the Covid-19 outbreak, which occurred during the year and the effects of which continued into 2021. The
Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on
the ability of the Charity to continue as a going concern. In particular the Trustees have considered the effect of Covid-19 on: the charity's ability to raise income -
restrictions on travel and assembly meant that the annual dinner had to be postponed in 2020 and in 2021, and the possible level of additional support required by our
Investees. The new Development Director appointed in 2020 has made good progress, building our fundraising strategy for 2021 and beyond.The Trustees have revised
the original business plan and cash flow for 2021 and 2022: refocusing our fundraising activities on-line and developing a new strategy for growing long term support
from individual supporters, adjusting investee budgets and making overhead savings, particularly in travel and office expenditure. This revised plan indicates that Alfanar
will continue to be able to meet its financial commitments through the year and for a period of at least one year from the date of approval of the financial statements. The
charity will be able to move free reserves to the Trustees' target level by the end of 2021. Accordingly, Trustees continue to adopt a going concern basis in preparing the
financial statements.
Presentational currency
The presentational currency used is British pound sterling, and balances are rounded to the nearest £1.
Company status
Alfanar is a company limited by guarantee. 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.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the charity’s accounting policies, Trustees are required to make judgements, estimates, and assumptions about the carrying values of assets and
liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are
considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.
In the view of the Trustees, there are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the Charity and which have not
been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions agreed with donors which have been raised by the Charity for particular
purposes.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
Income
All income is included in the Statement of Financial Activities when the Charity is legally entitled to the income, receipt is probable, and the amount can be quantified with
reasonable accuracy.Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. Gift aid
recoverable is recognised at the date the related donation is received. Donated services are included in income and expenditure at the value of the gift to the Charity.
Expenditure
All expenditure is accounted for on an accruals basis. Irrecoverable VAT is charged in line with the expense to which it relates. Expenditure is allocated to a particular
activity where the cost relates directly to that activity. Support, overall direction and administration of each activity, comprising the salary and overhead costs of the
central function, is apportioned on the basis of the staff costs directly attributed to each activity.
Grant investments
The first payment on grant investments is reflected in the accounts at the point at which they are approved by the Board and communicated to the investee. Subsequent
tranches are dependent on performance assessments by Alfanar and are reflected at the time of approval by the Board.
Some grant agreements are negotiated with a clause stating that a proportion will be repaid if a target level of income is generated by the project. As it is uncertain that
these repayments will be made, such zero interest repayable grants are accounted for in the first instance in the same way as other grant investments. If these grants
are repaid the sums are treated as income and transferred to General Funds. In the instance when there is a strong likelihood of repayment, the grant is treated as a
Programme Related Investment and held on the balance sheet in the fund used to disburse the payment to the investee.
Foreign currencies
Transactions in foreign currencies during the year are recorded at the average rate ruling at the time of the transaction. Monetary assets and liabilities at the year end
denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial
Activities. The accounts also include unrealised losses in exchange rates movements in currencies held at the year end.
Tangible fixed assets and depreciation
All assets costing more than £1,000 are capitalised. Assets under this value are capitalised when appropriate.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets over their estimated useful lives
as follows:

Office equipment - 25% of net book value

Branch accounting

The Charity has an overseas branch in Egypt and a non-activated affiliate in Lebanon. These financial statements include the branch's transactions during the year, and its assets and liabilities at the year end (after adjusting for transactions and balances between the branch and the UK office). All the costs of operating in Lebanon are borne directly by the Charity.

Programme related investments

Programme Related Investments that are in the form of concessionary loans and zero interest repayable grants are accounted for at the outstanding amount of the investment less any provision for unrecoverable amounts. Any impairment is charged to the Statement of financial activities classified as expenditure on charitable activities.

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ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. With the exception of prepayments all other debtor and creditor balances are considered to be basic financial instruments under FRS 102.

2. DONATIONS

DONATIONS
Current Year
Boards
Other individuals
Donated services
Prior Year
Boards
Other individuals
Annual dinner and events
Donated services		 Unrestricted
Funds
2020
£
230,637
119,021
7,425		 Restricted
Total
Funds
Funds
2020
2020
£
£
38,790
269,427
491,681
610,702
-
7,425
357,083 530,471
887,554
Unrestricted
Funds
2019
£
185,781
108,654
92,087
6,266		 Restricted
Total
Funds
Funds
2019
2019
£
£
-
185,781
57,990
166,644
11,000
103,087
-
6,266
392,788 68,990
461,778

Campaign Support : Increases in income from the Board and other individuals were driven by two campaigns Alfanar ran over the course of 2020, namely the Survive & Thrive Emergency COVID-19 Campaign, generating £331,707 and the Emergency Lebanon Appeal, which generated £224,787 in donations from individuals.

Gift Aid In 2020 £31,793 (2019 : £15,050) of Gift Aid was receivable. This has been accounted along with the donations that attracted the claim. £ 11,500 (2019: £11,500) was included within Board income and £ 20,293 (2019: £ nil) was included within Campaigns/other individuals and £ nil (2019 : £3,550) was included within the Annual dinner and events income. In 2020 £5 of interest receivable from HMRC on Gift Aid claims has been included under Other individuals.

3. OTHER TRADING ACTIVITIES

Current Year
Social Enterprise Management Support
Prior Year
Social Enterprise Management Support		 Unrestricted
Funds
2020
£
3,310		 Restricted
Total
Total
Funds
Funds
Funds
2020
2020
2019
£
£
£
-
3,310
5,644
3,310 -
3,310
5,644
Unrestricted
Funds
2019
£
5,644		 Restricted
Total
Total
Funds
Funds
Funds
2019
2019
2018
£
£
£
-
5,644
12,832
5,644 -
5,644
12,832

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ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

  1. INCOME FROM CHARITABLE ACTIVITIES Current Year
Current Year
Alfanar, Inc., US
Al Ghurair Foundation for Education (AGFE)
Bank of America
British Council (DICE)
CCC
Drosos Foundation
Genesis Foundation
Global Fund for Widows
Impact Lebanon
LIFE Generation Fund
Oxfam
PepsiCo
Plan: Jordan Mubaderoon project
SODIC
Other Trusts and Foundations
UK Covid Job Retention Scheme
Prior Year
Alfanar, Inc., US
Al Ghurair Foundation for Education (AGFE)
Asfari Foundation
British Council (DICE)
CAF America Donor Fund
CCC
Life Generation Fund
Plan: Jordan Mubaderoon Project
Other Trusts and Foundations
Refund of repayable grant: ShareQ
IFC for Impact Fund
International Finance Corporation (IFC)
SODIC		 Unrestricted
Funds
2020
£
102,407
-
52,803
-
3,016
38,063
3,777
-
-
-
-
-
-
7,761
-
14,937
55,052
5,483		 Restricted
Total
Funds
Funds
2020
2020
£
£
105,884
208,291
130,801
130,801
72,869
125,672
6,593
6,593
12,731
15,747
-
38,063
37,616
41,393
99,889
99,889
37,594
37,594
37,594
37,594
101,124
101,124
38,034
38,034
49,921
49,921
69,844
77,605
35,161
35,161
74,686
89,623
105,815
160,867
-
5,483
283,299 1,016,156
1,299,455
Unrestricted
Funds
2019
£
348,577
-
-
-
1,841
3,016
-
-
9,199
19,940
11,838		 Restricted
Total
Funds
Funds
2019
2019
£
£
22,359
370,936
140,597
140,597
75,000
75,000
15,591
15,591
22,703
24,544
14,416
14,416
38,644
38,644
51,949
51,949
92,624
101,823
4,500
24,440
-
11,838
394,411 478,383
869,778

Income in 2020 from IFC of £37,594, £14,233 from The Asfari Foundation and £77,990 from another foundation supported our pre-start-up work on impact investment.

Income under Other Trusts and Foundations was received from 5 (2019: 3) organisations who wish to be anonymous in published financial statements. Campaign Support: Income from Genesis Foundation, Impact Lebanon, Oxfam and PepsiCo, and the restricted funds from Bank of America, were raised in response to our Emergency Lebanon Appeal.

In 2020 we received grants from the UK government totalling £5,483 through the Covid Job Retention Scheme.

64

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. EXPENDITURE
Current Year
Costs of raising funds
Charitable activities
Support costs are detailed in Note 7 an
Prior Year
Costs of raising funds
Charitable activities		 Direct Staff
costs
£
121,405
141,947		 Other Direct
costs
£
63,744
1,292,122		 Support costs
Total 2020
£
£
94,660
279,809
110,675
1,544,744
263,352 1,355,866 205,335
1,824,553
d are allocated on
Direct Staff
costs
£
103,448
141,129		 the basis of direct staf
Other Direct
costs
£
75,051
972,822		 f costs.
Support costs
Total 2019
£
£
78,095
256,594
106,541
1,220,492
244,577 1,047,873 184,636
1,477,086

Support costs are detailed in Note 7 and are allocated on the basis of direct staff costs.

6. NET MOVEMENT IN FUNDS

Auditors' remuneration for audit (excluding VAT)
Auditors' remuneration for other services
Under/(over) audit accrual in prior year
Depreciation
Operating lease rentals: equipment
Operating lease rentals: property
This is stated after charging:		 2020
2019
£
£
10,745
10,635
1,955
2,567
-
2,126
1,252
1,119
2,257
2,257
19,378
32,403

7. SUPPORT COSTS

SUPPORT COSTS
Governance: audit fee (including unrecoverable VAT)
Staff costs
Staff development
Accounting, payroll and compliance
Rent Overseas office space
Rent UK Office space
Legal and professional fees
Bank charges
Insurance
Realised loss on foreign exchange
* Unrealised loss on foreign exchange
Depreciation
Other		 2020
2019
£
£
15,240
12,762
101,013
89,325
1,684
8,621
391
375
8,033
5,486
12,913
26,917
5,138
2,084
7,371
5,088
1,118
1,128
17,928
-
23,885
14,913
1,252
1,119
9,369
16,818
205,335
184,636

65

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

  1. DIRECT COSTS OF CHARITABLE ACTIVITIES
DIRECT COSTS OF CHARITABLE ACTIVITIES
Grants Awarded - Egypt Portfolio
Brighter Tomorrow for Child Protection (BTCP)
Educate Me
*Future Eve Foundation
iStem
Life Vision
Takafoo
Together For You
Wataneya Society for the Development of Orphanages
Grants Awarded - Lebanon Portfolio
Ana Aqra
Bridge.Outsource.Transform (B.O.T.)
FabricAid
Lebanese Alternative Learning (Tabshoura)
Lebanese Food Bank
MMKN
SE Factory
ShareQ
Shatila Studio
Grants Awarded - Refugee Portfolio
Inaash
MMKN- Refugee programme
NaTakallam
SE Factory- Refugee programme
WPA/Soufra/Nawras Preschool
Grants Awarded - Emergency Lebanon Response
Inaash - Facemasks
Lebanese Food Bank Food boxes
March NGO Bedco - Reconstruction
ShareQ- Vacuum-Sealed meals
Soufra - Hot meals
Souk El Tayeb- Hot meals
Shatila Studio- Facemasks and Tablets
Total Grants Awarded
#ASSET and AIM
Miscellaneous direct costs
Impact fund pre-start up
~Programme services		 2020
2019
£
£
28,682
4,434
104,321
95,611
63,714
161,070
-
(8,770)
35,806
13,448
13,483
-
3,348
9,924
7,727
-
257,081
275,717
7,717
38,951
44,726
13,908
81,438
41,603
22,716
-
8,094
-
7,440
25,805
78,616
72,768
5,985
56,643
-
14,330
36,999
52,822
87,479
45,231
18,797
-
89,858
61,777
55,082
47,189
544,947
471,027
7,858
-
90,021
-
72,590
-
40,480
-
23,927
-
7,638
-
10,658
-
253,172
-
1,055,200
746,744
5,342
5,206
25,859
33,505
84,571
58,488
121,151
128,879
1,292,122
972,822

ASSET (Alfanar Sustainable Social Enterprise Training) and AIM (Alfanar Impact Management) are two critical components of the support Alfanar provides to social enterprises beyond its grant funding.

~ Programme services: the cost of consultants providing management support to Social Enterprises in Lebanon and Jordan.

8a INVESTMENT SPEND

Investment spend is the total of direct staff expenditure and other direct costs of charitable activities.

Investment spend
Direct costs of charitable activities
Direct staff costs on charitable activities		 2020
2019
£
£
1,292,122
972,822
141,947
141,129
1,434,069
1,113,951

66

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

9. STAFF COSTS

STAFF COSTS
Gross salaries
Social security costs
Employer pension contributions
Salaries of overseas staff
Other overseas staff costs
Number of employees whose salaries were in the following bands:
£80,000-£89,999
Aggregate employer's contributions to pension schemes for these staff
A total of 9 individual staff members were employed by the Charity in the year (2019 : 9).		 2020
2019
£
£
282,515
258,150
25,571
25,583
3,511
2,145
51,205
46,470
1,563
1,554
364,365
333,902
2020
2019
1
1
£1,314
£1,188

The key management personnel of the Charity comprise the Trustees, the Executive Director and the senior management team. The total employee benefits of the key management personnel of the Charity were £198,753 (2019 : £202,868).

The Trustees received no remuneration nor the reimbursement of expenses in either year.

10. TANGIBLE FIXED ASSETS
Cost
At 1 January 2020
Additions in the year
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Office
Equipment
£
10,508
1,611
12,119
7,187
1,252
8,439
3,680
3,321

11. INVESTMENTS IN SUBSIDIARIES

Alfanar's investment at the balance sheet date in the wholly-owned share capital of the following unlisted companies is as follows:

companies is as follows:
Current assets
Total net assets
Called up share capital
Beacon Social Capital Limited (Dormant, incorporated 28 December 2018)
12. PROGRAMME RELATED INVESTMENTS
Repayable Grants due within one year
Repayable Grants due after more than one year		 2020
2019
£
£
1
1
1
1
1
1
1
1
2020
2019
£
£
21,194
-
42,388
-
63,582
-

This relates to the repayable grant included in our agreement with Future Eve Foundation. It is repayable over three years in equal instalments

67

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. DEBTORS
Due within one year
Grant debtors
Gift Aid receivable
Prepayments
14. CREDITORS
Due within one year
Trade creditors
Taxation
Grants payable to investees
Defined contribution pension scheme payments
Other accruals		 2020
2019
£
£
91,018
-
-
7,500
5,679
6,343
96,697
13,843
2020
2019
£
£
11,172
19,697
7,633
8,152
135,091
28,617
2,969
1,384
29,239
45,396
186,104
103,246
  1. ANALYSIS OF CHANGES IN NET DEBT

----- Start of picture text -----
Acquisition/ New finance Other non-
At start of year Cashflows subsidiariesdisposal of leases cash changes [At end of year]
£ £ £ £ £ £
Cash 558,888 301,829 - - - 860,717
Cash equivalents - - - - - -
Overdraft facility - - - - - -
Loans - - - - - -
Total 558,888 301,829 - - - 860,717
----- End of picture text -----

68

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16. RESTRICTED FUNDS

Current Year
Egypt
Egypt Fund
British Council (DICE)
Education in Egypt
Educate Me
BTCP
Future Eve Foundation
Life Vision
Takafoo
Together For You
Lebanon
Education in Lebanon
MMKN
Tabshoura
Women and Youth Employment in Lebanon
BOT
SE Factory
Emergency/Environment Lebanon
FabricAid
Lebanese Food Bank
Refugees in Lebanon
Inaash
NaTakallam
Shatila Studio
WPA Nawras Pre-School
EmergencyResponse
Inaash - Facemasks
Shatila Studio - Facemasks
Emergency Lebanon Campaign
Impact Lebanon
Lebanese Food Bank
Souk El Tayeb- Hot meals
Soufra - Hot meals
ShareQ- Vacuum-Sealed meals
Oxfam
Jordan
PLAN- Mubaderoon project
UK
Accelerate Study Missions
Impact Fund
Alfanar Capacity Building
Alfanar Development
TOTAL RESTRICTED FUNDS
Women and Youth Employment in Egypt
Survive and Thrive Restricted General
Lebanese Food Bank - Food Boxes
Al Ghurair Foundation(AGFE) SE Factory
Al Ghurair Foundation(AGFE) MMKN
Al Ghurair Foundation(AGFE) PTA
Shatila Studio - Tablets for SE's
Pepsico/March NGO -Bedco for reconstruction
Emergency Lebanon Restricted General		 Brought
Forward
£
8,325
6,196
-
-
573
968
-
7,076
-
-
-
14,264
20,525
-
-
-
25,421
14,910
9,706
17,738
-
18,779
24,346
-
91,000		 Income
Expenditure
Transfers
Carried
Forward
£
£
£
£
-
-
8,325
6,593
12,789
-
104,388
104,321
67
43,514
28,682
14,832
127,564
63,714
64,423
44,312
35,806
9,474
13,970
13,483
487
-
3,348
3,728
6,000
7,440
( 1,440)
13,523
5,224
8,299
26,323
24,335
1,988
95,689
78,616
31,337
2,647
2,647
-
20,795
41,320
-
30,056
8,094
21,962
18,797
18,797
-
18,797
18,663
134
-
7,883
17,538
40,172
55,082
-
60,164
89,858
( 19,988)
64,295
87,648
( 5,615)
6,342
24,717
( 18,375)
8,683
8,683
-
8,011
8,011
-
38,095
38,095
-
178,263
-
178,263
101,124
6,768
94,356
51,926
51,926
-
7,638
7,638
-
26,431
23,927
2,504
40,480
40,480
-
85,486
72,590
12,896
49,921
2,478
47,443
35,161
63,032
( 9,092)
-
-
24,346
115,584
84,010
31,574
55,883
25,883
30,000
-
32,543
58,457
259,827 1,546,627
1,198,531
-
607,923

69

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

RESTRICTED FUNDS
Egypt
Egypt Fund
British Council (DICE)
Education in Egypt
Educate Me
Nafham.com
BTCP
Future Eve Foundation
Life Vision
Together For You
Lebanon
Lebanon Fund
Education in Lebanon
MMKN
Women and Youth Employment in Lebanon
ShareQ
SE Factory
FabricAid
Refugees in Lebanon
WPA Nawras Pre-School
Shatila Studio
Al Ghurair Foundation(AGFE)
Jordan
PLAN- Mubaderoon project
UK
Accelerate Study Missions
Alfanar Development
TOTAL RESTRICTED FUNDS
Prior Year
Women and Youth Employment in Egypt		 Brought
Forward
£
8,325
-
-
4,268
740
79,756
-
3,000
11,084
-
20,000
-
-
32,754
-
-
-
7,327
55,000		 Income
Expenditure
Transfers
Carried
Forward
£
£
£
£
-
-
8,325
15,591
9,395
6,196
76,918
76,918
-
-
( 4,268)
-
-
740
-
15,706
99,157
4,268
573
14,416
13,448
968
14,000
9,924
7,076
-
-
( 11,084)
-
3,000
3,000
-
-
20,000
-
61,347
47,083
14,264
20,525
-
20,525
31,662
49,506
14,910
28,667
14,330
11,084
25,421
140,597
113,153
27,444
51,949
33,170
18,779
14,019
-
3,000
24,346
58,976
19,976
( 3,000)
91,000
222,254 547,373
509,800
-
259,827

Transfers. Transfers between funds in the current year have been described within the following notes on each relevant fund.

70

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Egypt fund holds income specifically restricted to investment activities in Egypt. Allocation to specific projects is at the discretion of the Board. No allocations were made in 2019 or 2020 but allocations will be made in 2021. DICE funding from British Council supported our collaboration with Egypt social enterprise Yadawee, a fair trade certified promoter of local Egyptian handicrafts. This programme ended in March 2020. Educate Me runs an innovative community education programme which emphasises character development and self-actualisation alongside the traditional curriculum in 150 public schools accross six governorates in Egypt. It also conducts teacher training to a wider group of nearly 5,000 educators. In 2020, Educate Me shifted its teacher training online and continued to achieve impact despite lockdown. This social investment is generously supported by SODIC and funds raised during the Survive and Thrive campaign. Brighter Tomorrow for Child Protection (BTCP) supports the social and educational reintegration of children with disabilities particularly those with autism, based out of Alexandria. It is funded in 2020 from funds raised through the Survive and Thrive campaign. Future Eve Foundation (FEF) is an active investment and continues to be generously supported by the Global Fund for Widows (GFW), Taher Ghargour and another individual. A growing portfolio of housing improvement loans launched by FEF is being supported by SODIC. GFW continues to provide technical assistance to this investment. Life Vision economically empowers smallhold female farmers through Farmer Field Schools and literacy classes. In 2020 this investment was generously supported by CCC, another Foundation and a generous individual donor to the Survive and Thrive campaign. Takafoo works in the Minya region training and helping women secure reliable, safe farm work. This investment in 2020 was supported by funds raised in our Survive and Thrive campaign. Together For You (TFY) is an investment providing vocational training to low-income women in Cairo to become elderly caregivers and then acting like an agency, securing job placements for them. Disbursements have been covered by restricted funds from a number of generous individual donors. In 2020, Alfanar completed and exited its investment in TFY. We are in discussion with the donor on how to use the surplus funds on this project. Lebanon Fund holds funds received from an individual donor specifically for refugee education and empowerment investments in Lebanon. The donor allocated these funds to the support of Shatila Studio in 2019 and 2020. MMKN helps at-risk students in Lebanese public schools prepare for and pass the national Brevet (9th grade) exam, which is required for entry into high school, vocational schools and university. Historically an exam children in the Lebanese public school system are likely to fail, MMKN’s tutoring curriculum helps students reach pass rates in the 90%. In 2020, this investment was partly covered by an individual supporter and AGFE. There is a small deficit at the year end due to a timing difference.It is being carried forward as we will receive funds to cover this deficit in the first quarter of 2021. Tabshoura (Lebanese Alternative Learning) provides a free, accessible and interactive online learning platform to support teachers and students with the Lebanese curicullum. Tabshoura proved essential to 10,000 students across Lebanon during COVID-19 lockdowns. This investment in 2020 was supported by our Survive and Thrive campaign. BOT (Bridge.Outsource.Transform.) enables hundreds of disadvantaged, marginalised youth in Lebanon, opportunities to work in the digital freelance market. This investment in 2020 was supported by our Survive and Thrive campaign as well as the Lebanese International Finance Executives (LIFE). SE Factory is an intensive, 3-month full-stack web development training programme and job placement initiative launched by the Nawaya Network, helping underprivileged youth to develop the skills and mindset needed to land coding jobs in the region’s tech sector. In 2018 its pilot investment was funded by Alfanar's general funds. In 2019 the programme was approved for long-term investment and is supported by Life Generation USA, Inc.(LIFE) and CAF America. Funds in 2020 were received from Bank of America. ShareQ runs a 'learn-and-earn' vocational training program across Lebanon for disadvantaged Lebanese women and youth. Once graduated from the training programme, ShareQ places its trainees in employment, largely in the food and beverage sector. Alfanar exited its venture philanthropy investment from ShareQ in 2020, but worked with this social enterprise as part of the Emergency Lebanon Appeal, delivering hot meals to thousands of families impacted by the blast. Shatila Studio - Tablets for SE's . In the year 2020 we received a specific donation to support our Lebanese Investees in accessing IT equipment such as Tablets. In total thirteen media pad tablets were distributed to 5 social enterprises including Shatila Studio, BOT, Tabshoura and Inaash. The tablets were sourced through our investee Shatila Studio.

FabricAid is a social enterprise that collects, repairs, and resells quality, affordable second-hand clothing at its thrift and vintage stores to tens of thousands of vulnerable community members across Lebanon. In 2020, this investment was supported by Vovos Better World, The Asfari Foundation and our Survive and Thrive campaign.

Lebanese Food Bank This pilot investment works in Lebanon to reduce food waste and alleviate hunger. This pilot investment received support from our Survive and Thrive campaign.

Inaash creates dignified employment for nearly 400 female Palestinian refugees through embroidery and high-quality textile production. This investment in 2020 was partially funded by the IFC and Survive the Thrive campaign funds for an emergency facemask project.

NaTakallam creates steady, dignified employment for Syrian refugees and vulnerable host community members as Arabic practice partners, teachers and translators for Arabic learners and institutions worldwide using online communication technology. In 2020, our investment was partly supported by the IFC. Shatila Studio provides dignified employment to Syrian refugees inside the Shatila refugee camp in Beirut by employing them as artisans in needlework, embroidery and textile production. This investment is supported by an individual supporter.

WPA Nawras Pre-Schoo l is the culmination of a multi-year investment with the Women's Program Association (WPA) in Burj al Barajneh that led to the creation of the Soufra catering unit and foodtruck, microloans to women in the camp and the establishment of the Nawras preschool providing early childhood education to around 100 children. In 2020, Alfanar concluded its venture philanthropy investment in WPA thanks to the support of generous individuals. Separately, as part of our Emergency Lebanon Appeal, we worked through Soufra to provide hot meals to hundreds of families impacted by the Beirut blast.

Al Ghurair Foundation for Education (AGFE) is focussed on providing support to refugees. It is helping to fund our work amongst refugees through MMKN and SE Factory . It provides for Grants to be made and covers part of our technical assistance staff costs (PTA) relating to these investees. This two year project commenced in August 2019. The negative balances reflect Alfanar pre-financing of disbursements to the investees and payments to the investment officer. These negative balances are covered in the funding received in 2021.

Emergency Response Funds .During 2020, Alfanar ran the Survive and Thrive campaign in response to the COVID-19 pandemic and the Emergency Lebanon Appeal in response to the 4 August 2020 Beirut port explosion. Emergency projects supported by these campaigns included facemask projects, foodboxes and hot meals to vulnerable families. In partnership with a local social enterprise, March NGO, we are managing a reconstruction project supporting small businesses, social enterprises and three schools damaged by the blast.This reconstruction work is expected to be completed by June 2021. Alfanar worked with Inaash, Shatila Studio, the Lebanese Food Bank, Souk el Tayeb's Community Kitchen, ShareQ and Soufra to respond to emergency needs. The Lebanese Food Bank received support from both campaigns as well as joining our portfolio as a pilot investment. Funds from Impact Lebanon and Oxfam are for projects that run until April 2021 providing support to enable resilience in these difficult circumstances. They will cover programme services costs and grants to suitable identified social enterprises in the first half of 2021. The total carried forward in this area is £335,462. All of this will be disbursed by autumn 2021.

71

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

PLAN-Mubaderoon Project is an EU-funded project that enabled Alfanar to train and build the capacities of 60 growth-stage social enterprises focused on women's empowerment across East Amman, Ajloun and Tafileh in Jordan. This project is expected to terminate in 2021. The negative balance is due to delays in disbursements from Plan International to cover programme costs. This was covered by a disbursement received in March 2021.

Accelerate Study Missions expose our social entrepreneurs to best-in-class social enterprises in the developing South achieving scale and sustainability in their respective sectors. They were postponed in 2020 due to COVID-19. They are generously supported by a generous individual and the Asfari Foundation. Impact Fund. represents pre-start-up ecosystem, pipeline and investment strategy analysis aimed at supporting the eventual launch of an impact investment vehicle to extend the financing life cycle for investor-ready social enterprises across the Arab region. This investment received support from the IFC and a private foundation. Alfanar Capacity Building Fund. Made possible by the generous donation of an individual supporter who resticted their donation to support Alfanar's growth.

Alfanar Development Fund . Alfanar received a generous three-year grant in 2019 from The Asfari Foundation to support the growth and strengthening of Alfanar's staff and model. It includes funding for the development and digitisation of ASSET modules, hiring fundraising and other support and investing in staff development. Delays in 2020 arose as we pivoted our focus to respond to the pandemic and the Beirut blast; this development programme will resume in 2021. The agreed budget for 2019 included £3,000 specifically to enable an additional Alfanar staff member to attend an Accelerate Study Mission. This sum was transferred between the funds in 2019.

17. DESIGNATED FUNDS

DESIGNATED FUNDS
Current year
Tangible Fixed Assets
TOTAL DESIGNATED
FUNDS
Prior Year
Tangible Fixed Assets
TOTAL DESIGNATED
FUNDS
MOVEMENT OF FUNDS IN THE YEAR
Current year
Designated funds
General fund
Restricted funds
TOTAL FUNDS
Prior year
Designated funds
General fund
Restricted funds
TOTAL FUNDS
The Fixed Asset Fund represents the n		 Brought
Forward
£
3,321		 Income
£
-		 Transfer
Carried
Expenditure
New Assets
Forward
£
£
(1,252)
1,611
3,680
3,321 - (1,252)
1,611
3,680
Carried
Expenditure
Forward
£
£
(1,119)
3,321
se and therefore not available to meet future expenditu
4,440 - (1,119)
3,321
Brought
Forward
1 January
2020
£
3,321
209,659		 Income
£
-
643,692		 Carried
Expenditure
Transfers
Forward
31 December
2020
£
£
£
1,252
-
1,611
3,680
624,770
-
1,611
-
226,970
212,980
259,827		 643,692
1,546,627		 626,022
-
-
230,650
1,198,531
-
-
607,923
472,807 2,190,319 1,824,553
-
-
838,573
Brought
Forward
1 January
2019
£
4,440
381,990		 Income
£
-
793,836		 Carried
Expenditure
Transfers
Forward
31 December
2019
£
£
£
(1,119)
3,321
(966,167)
-
209,659
386,430
222,254		 793,836
547,373		 (967,286)
-
212,980
(509,800)
-
259,827
608,684 1,341,209 (1,477,086)
-
472,807

The Fixed Asset Fund represents the net book value of tangible fixed assets in use and therefore not available to meet future expenditure.

18. MOVEMENT OF FUNDS IN THE YEAR

72

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

ALFANAR (Company limited by guarantee no. 05141908)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

  1. ANALYSIS OF NET ASSETS BETWEEN FUNDS Current year
Current year
Tangible fixed assets
Net current assets
Prior year
Tangible fixed assets
Net current assets		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2020
2020
2020
£
£
£
3,681
-
3,681
226,969
607,923
834,892
230,650
607,923
838,573
Unrestricted
Restricted
Total
Funds
Funds
Funds
2019
2019
2019
£
£
£
3,322
-
3,322
209,658
259,827
469,485
212,980
259,827
472,807

20. RELATED PARTIES

Alfanar rents and pays for UK office space at less than market rates from 'Common Purpose', where Julia Middleton (trustee) is the Founder and currently Innovations Officer. The cost in the year was £12,913 (2019: £26,917). In the year, we reduced our use of the office due to COVID-19 restrictions and mitigations.

Cynthia J. Oakes continues to serve as a director of Alfanar, Inc. US.

During the year, trustees donated £206,893 (2019: £387,135) in total, including board pledges, gifts at events and other campaign donations to Alfanar's general funds.

21. LEASE COMMITMENT

At the reporting end date the Charity had future minimum lease payments under non-cancellable operating leases on property and office equipment which fall due as follows:

Less than 1 year
Between 2 and 5 years		 2020
£
9,085
1,189
10,274		 2019
£
16,244
12,665
28,909

73

DocuSign Envelope ID: BBAFAF29-ABE4-4C22-87EB-D40C51FA4D7E

Turning Social Investment into Sustainable Impact

Alfanar UK

38 Artillery Lane, London E1 7LS Company registration number: 5141908 Charity registration number:1105048 Tel: +44 (0) 207 608 8144 info@alfanar.org

Alfanar, Inc., US

c/o Hurwit & Associates, 1150 Walnut Street (2nd Floor), Newton, Massachusetts 02461 EIN-75-31970321

Senior Management Team

Myrna Atalla (Executive Director) Fadel Zayan (Investment Director) Vanessa Zuabi (Development Director) Shenouda Bissada (Egypt Country Director) Michelle Mouracade (Lebanon Country Director)

Trustees

Lubna S. Olayan (Chair) Samir Assaf Amjad Bseisu Charlotte Boyle Sherif Foda Maysa Jalbout Dr Laila Iskander Julia Middleton Cynthia J. Oakes

www.alfanar.org

linkedin.com/company/alfanarvp @alfanarvp @alfanarvp @alfanarvp