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2021-12-31-accounts

ASSOCIATION OF CHARITABLE FOUNDATIONS

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

CONTENTS

01 26 CHAIR AND CHIEF EXECUTIVE’S GOVERNANCE INTRODUCTION 28 02

28 ADVISERS AND BANKERS

TRUSTEES’ ANNUAL REPORT 2021

29 OUR THANKS

04 ABOUT ACF

30 06 INDEPENDENT AUDITOR’S ACF IN NUMBERS REPORT TO THE MEMBERS 08 33 ACF SUPPORTS FINANCIAL STATEMENTS

10 ACF ADVOCATES

12 ACF CONNECTS

16 ACF INSPIRES

20 ACF THRIVES

CHAIR AND CHIEF EXECUTIVE’S INTRODUCTION

2021 was another challenging year for the foundations that ACF ‘ACF IS THE ONLY ORGANISATION represents. Their trustees and

staff had to juggle the impact of THAT BRINGS FOUNDATIONS the pandemic on their own lives while ensuring that their foundations AND GRANT-MAKING CHARITIES responded to an increased need for support for many of the causes and TOGETHER ACROSS THE UK. OUR communities that they care about.

At the same time, longer-term issues MEMBERS ARE THE HEART OF like climate change and inequity

between different groups in society have not gone away. WHAT ACF IS ABOUT.’

Throughout this difficult period ACF has endeavoured to support our members in the best way possible. Doing this effectively means finding the time and space to listen. It also means having the systems and processes to better capture and retain information that members want to share with us, and make it simpler and quicker for people to manage personal data and preferences, book onto events and conferences and find what they’re looking for. This is why we have put so much emphasis this year on the new customer relationship management (CRM) system, including improving our website.

2021 was also the final year of our current five-year strategy. We have done what our members asked from us in the previous strategy. We have:

ACF is the only organisation that brings foundations and grant-making charities together across the UK. Our members are the heart of what ACF is about and what foundations need drives all our work. Every one of our members matters to us, and to our staff and trustees.

We enter 2022 as a year of transition which will see ACF complete a full strategy review and develop new strategic objectives. We are continuing our journey, building on the strong basis we have laid over the last five years and ensuring we are able to continue supporting foundations to meet the challenges of the months and years ahead.

• Tailored what we offer members so that it is no longer a ‘one size fits all’ – for instance, with a special report for smaller grant-makers on Stronger Foundations, the work of our Social Impact Investors Group and support for specific functions within foundations like the Members’ Policy Forum.

It is also why in 2021 we prioritised delivery of the Funders Collaborative Hub. This responds to the desire from foundations for a platform and programme of work to share information more openly and widely about collaboration opportunities, to inspire foundation staff and trustees to collaborate and to develop and share tools to support effective collaboration.

In addition 2021 was also the final full year as our chair for Janet Morrison OBE. She has had to step down following her new role as chief executive of the Pharmaceutical Services Negotiating Committee. Both of us would like to put on the record our thanks for Janet’s leadership of ACF for the last three years, which has helped strengthen our governance and lay the basis for the successful delivery of our new strategy.

Jessica Brown Carol Mack OBE Interim chair Chief executive

Alongside these new pieces of work, our existing offer of member networks, events and guidance remains as important as ever — perhaps even more so as informal face to face contacts between foundations were on hold for much of the year.

Annual report 2021[|] 01

TRUSTEES’ ANNUAL REPORT 2021

We are pleased to present the 2021 annual report and accounts. This demonstrates how the trustees have stewarded the charity and its resources in delivering ACF’s mission to support foundations to be ambitious and effective in the way they use their resources for social good.

These objects are delivered through our strategic objectives, as outlined in this report in the following description of our work in 2021.

2021 was the final year of the last five-year strategic period. We set out in the following pages how the charity pursued its objectives under this strategy. We have continued to adapt our work in response to the Covid-19 pandemic, with events remaining online, the provision of guidance and support to members on wellbeing for staff impacted by Covid-19 and capturing and disseminating learning on how foundations were themselves responding to Covid-19.

at key points in the process. We also set up a cross-functional staff project team at the end of 2021 which will do the legwork on the review and develop the detailed project plan to deliver it.

Our membership model is at the heart of our work, both helping deliver public benefit through more effective and ambitious member foundations and supporting the costs of the delivery of this through membership fees. In addition, the direct benefits from our work extend beyond our membership. For example:

Public benefit

As trustees we are alive to the need to deliver public benefit. We have had regard to guidance on public benefit by the Charity Commission for England and Wales in considering what work ACF should undertake and in the performance of our duties. ACF’s charitable objects are to “further the work of charitable grant-making trusts and institutions for the public benefit by:

We planned for two major projects in 2021 — the introduction of a new customer relationship management (CRM) system and starting work on a fresh strategy for the next five years.

The CRM integrates all our systems to better understand our members and other foundations, and deliver the support they need. This alone would have been a significant workload in any normal year and with Covid-19 continuing to overshadow our work we took the decision in early 2021 that we should focus on developing and delivering the CRM.

any normal year and with Covid-19 “FOUNDATIONS... ARE EXTREMELY continuing to overshadow our work we took the decision in early 2021 WELL-PLACED TO PLAY A ROLE that we should focus on developing and delivering the CRM. IN REMOVING BARRIERS AND Delivery of the strategic review was therefore postponed until 2022 but INCREASING ACCESS FOR we laid the foundations for this by commissioning Eastside Primetimers COMMUNITIES THAT HAVE BEEN as consultants to support the review, along with the expert consultancy HISTORICALLY MARGINALISED Diversity and Ability who will provide a diversity, equity and inclusion (DEI) lens OR UNDERREPRESENTED.”

Climate change

While the impacts of the pandemic have been front of mind in 2021, as trustees we are very much aware of our role in stewarding ACF into the future. A growing challenge for all charities is climate change. The direct impacts of a changing climate and the indirect impacts of the transition to net-zero emissions will impact on foundations and their ability to pursue their missions. The primary work of ACF in response is the Funder Commitment on Climate Change, which ACF has hosted since 2020.

Increasing access

We also set out below how ACF is approaching issues around DEI. There is a strong case for foundations to be more diverse, to be more inclusive and to be more effective in achieving equitable outcomes from their work. As we have said in our Stronger Foundations initiative, foundations — as civic actors with substantial independence and assets — are extremely well-placed to play a role in removing barriers and increasing access for communities that have been historically marginalised or underrepresented.

To make the type of progress that is needed requires the foundation sector to recognise how our actions relate to and interact with wider society, which remains riven with various forms of inequality, as well as personal, institutional and structural discrimination — including racism, sexism, ableism and homophobia. Alongside this, the existence of racism and other discriminatory and harmful practices and cultures (in wider society and within foundations) limits the ability of foundations to deliver their own charitable missions and the missions of the causes they support. As a board we set up a working group of trustees on DEI, agreed a DEI action plan in 2021 and worked to provide leadership with foundations, detailed below.

We could not achieve what we have in this exceptional year without the support of our members and they remain at the heart of our work. Trustees have connections to member organisations, rooting our work in the reality of foundations’ day-to-day activity. Our members are generous with their time and expertise and contribute to the work across the organisation.

Safeguarding

ACF agreed a safeguarding policy in 2020 and has worked to support foundations to improve safeguarding policy and practice. In 2021 we signed a memorandum of understanding with the Funder Safeguarding Collaborative (FSC) to further encourage and support good practice in safeguarding. The FSC was created to strengthen the ability of grant-making organisations to prevent abuse and exploitation across their operations.

We would also like to thank our staff, our Official Partners (Cazenove Charities, CCLA, Mercer and Ruffer) and our funders. Thank you for everything that you do to help ACF achieve its vision of a world that is supported, sustained and strengthened by the effective use of foundation resources.

ACF will continue to challenge itself to deliver more for our members into 2022 and beyond. Key programmes of work include:

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ABOUT ACF

ACF IS THE MEMBERSHIP BODY FOR FOUNDATIONS AND GRANT-MAKING CHARITIES BASED IN THE UK

OUR VISION IS A WORLD THAT IS SUPPORTED, SUSTAINED AND STRENGTHENED BY THE EFFECTIVE USE OF FOUNDATION RESOURCES.

The Association of Charitable ACF is both a registered charity, Foundations (ACF) is the membership registration number 1105412, and body for UK foundations and grant- a company limited by guarantee making charities. Driven by a belief incorporated on 27 July 2004 and that foundations are a vital source registered in England and Wales, for social good, our mission is to registration number 5190466. Its support them to be ambitious and governing document is a Memorandum effective in the way that they use and Articles of Association. ACF’s their resources. registered office is Fourth Floor, 28 Commercial Street, London E1 6LS.

ACF has a wholly owned trading subsidiary, ACF Conferences and

Seminars Limited. This is a company incorporated on 5 January 2000, registration number 3902450, and limited by a single share held by ACF. The directors of the trading company are listed at the end of this report.

ACF manages its commercial relationships which generate trading income via ACF Conferences and Seminars Ltd. This includes the Official Partner Programme and commercial activities linked to the annual

conference. The company has agreed a deed of covenant that obligates it to pass all its profits to the charity at the end of each financial year. The accounts that accompany this report show the consolidated financial information for the ACF and ACF Conferences and Seminars Limited. The narrative in this report covers the operations of the charity and the subsidiary company.

OUR MISSION IS TO SUPPORT FOUNDATIONS TO BE AMBITIOUS AND EFFECTIVE IN THE WAY THAT THEY USE THEIR RESOURCES FOR SOCIAL GOOD.

1 2 3 4 5 ACF SUPPORTS foundations ACF ADVOCATES on behalf of ACF CONNECTS foundations to ACF INSPIRES foundations to be in achieving their charitable foundations for an enabling policy, people, organisations, governments ambitious and effective in the way objectives by: legislative and operating and movements relevant to their that they use their resources by: environment by: work by:

ACF THRIVES and is sustainable, supporting members over the longer term by:

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ACF IN NUMBERS

TOTAL NUMBER OF MEMBERS

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(as at 31 December)
426
407
383
372
351
2017 2018 2019 2020 2021
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STRONGER FOUNDATIONS SELF-ASSESSMENT TOOL IN 2021

94% MEMBERS RENEWED IN 2021

Stronger Foundations is ACF’s flagship project that aims to help grant-making charitable foundations identify and pursue excellent practice. Around 50 individual foundations have used our Stronger Foundations Self-assessment tool to score themselves between one and five on six thematic areas.

DIVERSITY, EQUITY AND AVERAGE SCORE 2.6 INCLUSION (DEI) 30 COMPLETED IMPACT AND LEARNING AVERAGE SCORE 3.1 18 COMPLETED INVESTMENT AVERAGE SCORE 3.3 14 COMPLETED STRATEGY AND AVERAGE SCORE 3.3 GOVERNANCE 15 COMPLETED TRANSPARENCY AND AVERAGE SCORE 3.5 ENGAGEMENT 12 COMPLETED FUNDING PRACTICES AVERAGE SCORE 3.6 16 COMPLETED

43 NEW MEMBERS JOINED IN 2021

91%

OF RESPONDENTS TO OUR MEMBER SURVEY AT THE END OF 2021 SAID THEY WOULD RECOMMEND ACF MEMBERSHIP TO OTHER TRUSTS AND FOUNDATIONS

FUNDER COMMITMENT ON CLIMATE CHANGE

SIGNATORIES AT DECEMBER 2020 50 SIGNATORIES AT DECEMBER 2021 82

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82
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MEMBERS BY REGION

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5% 1%
Yorkshire and Humber South Central
5% 3%
West Midlands East of England
1% 1%
Wales East Midlands
8% 52%
South West London
13% 2%
South East North East
4% 1%
Scotland Northern Ireland
4%
North West
MEMBERS BY
1%
FOUNDATION TYPE
Administration
2%
3%
Benevolent Fund
Voluntary organisation
3%
17%
City Livery
Corporate foundation
3%
4% Community
Foundation
Other
1%
1%
Overseas
National Lottery distributor
26%
Family Foundation
16%
Independent foundation – local
3%
Fundraising grantmaker
20% or broadcaster appeal
Independent foundation – national
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ACF IN 2021 1. ACF SUPPORTS

LEARNING ENGAGING Number of learning EVENTS WITH CHAIRS events in 2021: 17 Our learning events support foundation OF FOUNDATION staff and trustees and connect them Number of member BOARDS

Our learning events support foundation staff and trustees and connect them with good practice to develop their understanding and expertise on the technical aspects of being a foundation, as well as creating space to consider strategic decisions facing foundations today. Our events create an opportunity for peer discussion, connection with sector experts and learning from leading practitioners working in the field. In 2021, ACF’s learning events were successfully delivered digitally, with a total of 32 sessions.

Number of member organisations attending a learning event in 2021:

181

ACF organises an annual event for chairs of charitable trusts and foundations to help involve them in the work of ACF. These events are usually focused on engaging chairs in discussions about good practice, and the last two have specifically focused on ACF’s Stronger Foundations programme which aims to help foundations identify and pursue excellent practice. At the 2020 event we launched a report which pulled out 10 of the pillars from the Stronger Foundations programme which we thought were of most relevance to chairs. In 2021 the evening was a virtual event themed around the thoughts of “new(ish)” chairs on what leadership as a chair of a foundation means in a changing world.

Number of individuals from our membership attending a learning event in 2021:

396

FOUNDATIONS IN ACHIEVING THEIR CHARITABLE OBJECTIVES

Number of individuals from non-members attending a learning event in 2021:

44 48

MEMBER bigger plan to use technology to deliver our mission to support foundations to ENGAGEMENT be ambitious and effective in the way they use their resources for social good. In our 2021 member survey, We want to better understand our 34% of respondents said that their members’ needs so we can provide foundation does not have the time the best support. Key to all this is the or resources or capacity to engage new CRM introduced in 2021, which with ACF services and programmes, integrates our website, membership so improving our understanding information, events booking and emails of members and how we engage into one system which puts members them really matters to delivering in control of how they interact with effective support.

HEADLINE FINDINGS MEMBERS SURVEY 83%

Number of member organisations attending 2021 chairs event:

We want to better understand our members’ needs so we can provide the best support. Key to all this is the new CRM introduced in 2021, which integrates our website, membership information, events booking and emails into one system which puts members in control of how they interact with ACF and which all staff use as a matter of course.

At the end of 2021 we asked of respondents felt connected, our members to fill in a short very connected or extremely survey to gather their views connected to ACF of our benefits, services and programmes of work. The survey ran from 10 to 29 November 2021 and received 101 responses (23% of members). 75%

of respondents felt connected, very connected or extremely connected to ACF

pandemic and outlook for foundation investments, risk return and impact, shareholder engagement, collective action and the climate crisis

INVESTMENT LEARNING PROGRAMME

Building on our new CRM, we continue to develop our communications to ACF members and the wider foundation world publishing our magazine Trust and Foundation News three times a year, producing the monthly Funders’ News newsletter and continuing to develop the website.

This knowledge will inform our planning and delivery of member benefits and services and provide more relevant and timely communications, events and resources, with further developments through into 2022. This is part of a

The Investment Learning Programme (ILP) provides members with expert insight and thought leadership on foundation investment, with a particular focus on areas of growing interest around responsible, sustainable and impact investment. During 2021 this work included:

of respondents felt connected, very connected or extremely connected to other trusts and foundations

91%

Funders’ News Website pages viewed now delivered to approx. 1 Jan – 31 Dec 2021: 2,400 INDIVIDUALS 451,683 Trust and Foundation News FOUNDATIONS AND FUNDERS FEATURED 33 IN 2021 84,073VISITS

of respondents said they would recommend ACF membership to other trusts and foundations

THE MOST IMPORTANT BENEFITS TO RESPONDENTS WERE:

1. Practical guidance

2. Member networks

INDIVIDUALS VISITS

3. Training and professional development 4. Regular newsletters

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2. ACF ADVOCATES

ON BEHALF OF FOUNDATIONS FOR AN ENABLING POLICY, LEGISLATIVE AND OPERATING ENVIRONMENT

A significant development was the consultation by the Charity Commission for England and

CHARITY LAW AND REGULATION

ENGAGING WITH POLICY-MAKERS AND SOCIETY

Wales on guidance to charities about investment. ACF submitted a detailed response in the Spring, welcoming the changes proposed but calling for the commission to avoid inadvertently presenting a ‘false binary’ between ‘responsible investment’ and financial return. In its summary of responses, the commission specifically referenced ACF’s contribution of evidence and stated that it had received many submissions making the same point. It said this would be considered in any future changes to the guidance, but that these would not be likely until 2022 after the conclusion of a court hearing brought by two charities (both foundations) to seek clarification of the law relating to responsible investments.

More than 150 foundation

ACF served as an active organisational member of the Charities SORP Committee , an expert advisory group to the four charity regulators covering England and Wales, Scotland, Northern Ireland and Ireland. Throughout the year, the committee discussed potential revisions to the next Charities SORP, which is expected to be published for use in 2024. ACF and several members were also involved in the Major Funders and Donors engagement strand, which considered the particular implications of revisions to the SORP in terms of foundations’ perspective as both readers and preparers of charity accounts.

representatives attended Members’ Policy Forum events connecting foundations to key issues of thematic or technical policy. These ranged from the disparity of the impact of Covid-19 on disabled people, to the implications of Brexit in Northern Ireland and the Charity Commission’s consultation on investment guidance.

In April, we published ‘Rising to the Challenge’ , a research project based on a survey of members’ responses to Covid-19. It found that nearly all foundations were planning to maintain or increase spending on grants to civil society organisations in 2021 (86%), even though 40% were expecting a negative impact on their own finances.

ACF gave oral evidence in person to the House of Lords Committee examining the Charities Bill, which proposed a more permissive framework for using permanent endowments. ACF offered insight on behalf of the benefits of the Bill to foundations, as well as suggesting some ways that further improvements could be made in the future.

Many foundations planned to maintain or return to their usual funding programmes or areas of focus in 2021 but to apply a ‘Covid-19 lens’ to their work or offer additional support to particular groups that have been most affected. Half planned to create or renew Covid-19-specific funding programmes this year, while more than eight out of 10 stated an ongoing commitment to increased flexibility for

grantees and reduced administration for funding applicants.

The survey of ACF members conducted in mid-March 2021 received responses from 80 foundations across the UK, with balanced representation from small, medium and large grant-making charities. The report was very well received by members and generated a significant social media impact. It was also covered across the sector press and was the subject of several presentations given by ACF staff at external events.

GOOD PRACTICE IN GRANT-MAKING

At the end of 2021, ACF gathered feedback from seven members that had been involved in distributing funds via the government’s Community Match Challenge – a part of the package of support made available to support charities’ responses to Covid-19. A briefing paper was prepared for Department for Digital, Culture, Media and Sport (DCMS) officials and participating ACF members and this informed the evaluation of the funding programme and future government plans.

ACF was invited to join an advisory group to the Cabinet Office project on reforming government grant-making.

The project will develop and pilot a new centralised grants application portal across five departments. ACF has offered insight on behalf of foundations and supported a dedicated roundtable discussion involving 12 members in December.

The research also looked at the response to Covid-19. This additional research was based on a further qualitative analysis of the reports and accounts of a purposive sample of 50 foundations. The survey found that foundations responded swiftly and decisively, committing significant amounts to emergency funding and changing practices almost overnight.

FOUNDATION GIVING TRENDS

WORKING WITH WIDER CIVIL SOCIETY

After a pandemic influenced pause in 2020, we published two editions of Foundation Giving Trends in 2021. The Foundation Giving Trends series presents annual research and analysis on trends in the giving, spending, income and assets of the largest (by value of grant-making) philanthropicallyfunded foundations in the UK.

Our chief executive continued to meet regularly with leaders of other civil society infrastructure bodies in 2021. This was initially as a response to the Covid-19 pandemic and the belief amongst a number of voluntary sector representatives that the sector had a huge part to play in helping UK society through it but would need government funding to do so, given the collapse in fundraising and trading income. The success of this work, which resulted in the £750m support package, as well as reviewing what was needed coming out of the pandemic led in 2021 to the formalisation of the group into a new Civil Society Group.

In October we published an interim report with figures for 2018/19 and then in December we published the full Foundation Giving Trends 2021 report with figures for 2019/20, showing the initial impact of Covid-19 on foundations. This included fully downloadable details of the top 300 table of foundations for the first time.

Foundation Giving Trends 2021 found that foundation grant-making continued to grow, rising by 7.8% (excluding the Wellcome Trust). Giving by family and personal foundations grew by nearly a quarter (23%), though corporate giving fell by 12% in real terms.

Our chief executive is one of 15 infrastructure CEOs on the Strategy Oversight Group, which determines the direction of the Civil Society Group.

“FOUNDATION GIVING TRENDS 2021 FOUND THAT FOUNDATION GRANT-MAKING CONTINUED TO GROW, RISING BY 7.8%”

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3. ACF CONNECTS

FOUNDATIONS TO PEOPLE, ORGANISATIONS AND MOVEMENTS RELEVANT TO THEIR WORK

We also convene and administer three wider networks with their own steering groups. As a result of the Covid-19 pandemic, all of ACF’s networks were moved online from the end of March 2020 and, to improve accessibility, our member networks will remain online and be free to attend.

NETWORKS

Our community and member networks are consistently ranked as one of the top three most important benefits of ACF membership by respondents to our annual survey.

The Finance, Investment, Resources Management (FIRM) network saw regular communication between members, and formal meetings featuring speakers on tax, philanthropic investors approach to climate change, the Charities Statement of Recommended Practice (SORP), innovation, fraud, IT security and the ‘S’ of Environmental, Social and Corporate governance (ESG).

In 2021 we supported 13 member networks led by a team of volunteer convenors from ACF membership. The majority of the networks focus upon funding themes (eg children and young people, or criminal justice), while others explore elements of grant-making (eg good practice in monitoring and evaluation).

2021 networks at a glance

GRANT-MAKING THEMES

Asylum, refugee and migration Children and young people Criminal justice Housing and homelessness Mental health

Tackling poverty Violence against women and girls

NB: In 2022 these networks were joined by a new thematic network on Economic justice

ASPECTS OF BEING A FUNDER

Monitoring and evaluation Place based learning

FOUNDATION TYPE

Corporate foundations Smaller funders International funders Northern Ireland

FUNDER COMMITMENT ON CLIMATE CHANGE (FCCC)

ACF sees climate change as a major threat to the work of all foundations and has a programme to help foundations play their part in tackling climate change and addressing its risks for their missions. Key to this is the UK Funder Commitment on Climate Change which ACF has hosted since 2020. At the end of 2021 83 foundations had signed the Funder Commitment on Climate Change. By making this public commitment, foundations pledge to:

In hosting the FCCC, we held regular discussion forums for signatories to exchange and share ideas and experiences. We also delivered a series of climate learning events focusing on themes in the Commitment, open to all ACF members as well as non-member signatories.

On Earth Day 2021 we published our first progress report from signatories to the Funder Commitment on Climate Change. The report showed funders making progress across all the commitments but with stronger progress by some as the impact of Covid-19 put pressure on organisations’ climate work.

ACF has regularly partnered with the The UN’s COP26 climate conference in Environmental Funders Network. Most Glasgow in early November saw more notably, we supported the development emphasis on the role of philanthropy and launch of a climate resource pack in addressing the climate crisis. ACF for funders, as well as running a joint engaged in peer exchanges with other masterclass for funders on climate and European philanthropy networks sustainability, and together exploring working on climate and shared learning the topic of grantee sustainability. from hosting the Funder Commitment In the summer we held the first on Climate Change. We supported the development and launch of the meeting of our Funder Commitment International Philanthropy Commitment on Climate Change advisory group, on Climate Change (hosted by WINGS), which includes representatives of the Individual Philanthropy

In the summer we held the first meeting of our Funder Commitment on Climate Change advisory group, which includes representatives of signatory foundations, the Environmental Funders Network and Nick Perks, who drafted the Funder Commitment in 2019. With their input we are exploring plans to take ACF’s climate work forward beyond the current programme. This includes engaging the wider non-environmental voluntary sector.

Commitment on Climate Change (hosted by Beacon Collaborative), as well as the national commitments that have emerged in France, Spain, Italy, and Canada.

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Annual report 2021[|] 13

Spain, and Canada. Understanding the international context on issues like climate change connects our work to the global #PhilanthropyForClimate movement and helps us to better understand UK funders who work internationally to provide effective support to them.

ACF is represented on the transition board of Philea (Philanthropy Europe Association) by our chief executive. During 2021 this board negotiated a merger between the European Foundation Centre (EFC) and Dafne, which will complete in 2022, resulting in a stronger voice for and support of European institutional philanthropy. ACF is also part of Dafne’s PEX CoCreation Council, which brings together thematic and national funder networks from across Europe.

ACF senior policy and engagement officer, Joanna Pienkowska, co-chairs the PEX Gender Equity and Justice group, which brings together European philanthropy networks with a commitment to advancing funding for feminist work. We have also been involved in the PEX Racial Equity group, an initiative where, along with other European philanthropy networks, we are sharing learnings on how philanthropy networks can contribute to improving racial equity in Europe. ACF’s Members’ Policy Forum joined forces with Ariadne, the network of human rights funders, on briefings relating to the UK Human Rights Act reform consultations.

EUROPEAN AND INTERNATIONAL NETWORKS

We work closely with European and international partner organisations to share learning on how foundations are addressing issues and sharing good practice. ACF participated in monthly meetings with the PEXcommunity of European philanthropy networks, receiving updates on policy developments relating to the operating environment across Europe. We arranged a meeting with HM Revenue and Customs (HMRC) and Treasury regarding plans in Europe to implement the Common Reporting Standard, which has been in force in the UK for several years and how this might be approached in Europe.

We supported the next European Foundation conference being organised by Philea, as well as sharing information on our Stronger Foundations programme through peer learning sessions for networks in Italy, Denmark, Spain and Russia. We also presented to the Polish Donors Forum about the role of charity regulation in the UK. We continue to be represented on the Dafne (now Philea) Legal Affairs Committee. This engagement at a European level benefits our members through sharing and learning about best practice in European philanthropy.

We have regularly exchanged with other philanthropy networks on climate, working with Philea, WINGS and others to develop an overarching international funder commitment on climate change as well as other national-level commitments in France, Italy,

ACF also regularly engages in thematic working groups on issues which are relevant to funders across borders.

FUNDERS COLLABORATIVE HUB IN 2021 Details of FUNDER COLLABORATION 77 OPPORTUNITIES

FUNDER NETWORK

ACF’s Funder Network is an online knowledge sharing platform, enabling members and other funders to contribute queries, concerns and expertise about policies and practices relating to foundations. This year the Network surpassed 1,000 registered contributors.

which funders can explore by issue or location

CASE 10 STUDIES

FUNDERS COLLABORATIVE HUB

showcasing impact and learning from a wide range of funder collaborations

A funder collaboration toolkit, consisting of

The Funders Collaborative Hub was originally launched as a pilot in 2020, in response to funders’ increased interest in collaborating during the Covid-19 pandemic. Informed by everything we learned from our work with funders over the first year, we have shifted to supporting funders to collaborate in the longer term and in December, we launched the next stage of the Hub, building on our initial one-year pilot.

12

PRACTICAL RESOURCES

designed to guide funders through the typical stages involved in developing and stewarding a collaboration

In its first month, the Hub’s new website funderscollaborativehub. org.uk was visited by more than

We worked in partnership with the service design agency Shift to carry out in-depth research exploring funders’ motivations and barriers relating to collaboration and to develop effective ways for the Hub to meet their needs. The Hub helps funders achieve more together, by providing shared information, inspiration and tools.

1,600

INDIVIDUALS

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4. ACF INSPIRES

FOUNDATIONS TO BE AMBITIOUS AND EFFECTIVE IN THE WAY THAT THEY USE THEIR RESOURCES

The report showcased the many contexts in which the tool has been used, from board meetings to team away days, including as a prompt for difficult discussions. It also included quotes from foundation leaders across the UK describing the benefits of using the tool in their own words.

STRONGER FOUNDATIONS

Stronger Foundations is the flagship ACF project that aims to help grantmaking charitable foundations identify and pursue ambitious practice. In 2019 and 2020, the work focused on engaging with foundations on what ambitious practice looks like and then distilling these into a series of reports on specific themes with 40 “pillars of practice”. In 2021, our efforts moved on to focus on engaging members with the material and supporting them to test their progress against the pillars of practice. We have done this in a variety of ways, including a half-day briefing for more than 20 ACF network convenors and speaking at several network meetings about the implication of the work in their context.

Learning from the tool informed initial thinking for ACF’s strategic review, including considering how ACF itself is pursuing pillars relatable to its own work. We have also used data from the tool to directly inform plans for ACF learning events for 2022, including new DEI events. On DEI, ACF has been invited to present to a wide range of members and non-members on these topics, including the DEI Coalition and the Merseyside Funders Forum.

More than 50 ACF members from across the UK used the Stronger Foundations self-assessment tool during the year, submitting more than 100 surveys in total. A significant product was the first analysis of data emerging from the tool: ‘Measuring the strength of your own foundations’.

“LEARNING FROM THE TOOL INFORMED INITIAL THINKING FOR ACF’S STRATEGIC REVIEW, INCLUDING CONSIDERING HOW ACF ITSELF IS PURSUING PILLARS RELATABLE TO ITS OWN WORK.”

The report found that foundations are most confident when it comes to funding practices and achieving impact, but feel they have further to travel on aspects of diversity and investment.

ACF Stronger Foundations Reports

We discussed how:

Following the success of the ’Top 10 pillars for chairs of foundations’ guide ACF ANNUAL

last year, we sought to develop further bespoke resources for different kinds CONFERENCE of foundations and roles.

Our annual conference, which took place virtually, looked at how identity, community and belonging can hinder or help tackle inequalities. Plenary sessions were facilitated by our conference chair Kenny Imafidon in a more conversational style rather than just traditional presentations. We hosted 12 member-led workshop sessions and engaging energiser sessions as well as a space for online networking and exhibitions, which was

The next in this series was launched in November for smaller foundations. It proposed 10 pillars of stronger practice that grant-makers awarding up to £500,000 per year are particularly well-placed to pursue.

The conference was a success with feedback and evaluation data showing significant improvement on last year and we were seen to have responded to the feedback from previous events, by building in more opportunities for the audience to engage with the content.

The ACF smaller funders network was instrumental in supporting the development of this resource, selecting the final set of pillars and identifying ways that smaller foundations may have a structural advantage in pursuing ambitious practice. These include being more agile, closer connected to local communities and able to ‘stick or twist’ more quickly with their objectives in response to changing needs. The report was launched at the November smaller funders network meeting and was well-received by members and across the sector press.

open throughout the two days event.

220 80% DELEGATES FELT MORE CONNECTED TO ACF 87% 95% RATED THE RATED THE CONFERENCE THEME SPEAKERS/CONTENT GOOD OR EXCELLENT GOOD OR EXCELLENT

“IT PROPOSED 10 PILLARS OF STRONGER PRACTICE THAT GRANT-MAKERS AWARDING UP TO £500,000 PER YEAR ARE PARTICULARLY WELLPLACED TO PURSUE.”

16[|] Annual report 2021

Annual report 2021[|] 17

The formal government response to the Commission’s report has now been published.

Our Stronger Foundations tool shows that foundations recognise that they have work to do on diversity and we are also capturing the evidence of work that has started.

LEADERSHIP WITH THE FOUNDATION SECTOR ON DIVERSITY, EQUITY AND INCLUSION (DEI)

We continue to develop our support for foundations on DEI. In 2020 we introduced a new learning event on unconscious bias in grant-making. In 2021 we hosted a second session on unconscious bias.

However, there is a risk that this reasoned and evidence-led work on diversity, equity and inclusion could be caught up in the so-called ‘culture wars’. unconscious bias. This concern was part of our thinking on the content of the annual conference, PRACTICAL including our chief executive’s speech which suggested how foundations STEPS might manage their approach.

Following on from our 2019 Stronger Foundations report on DEI, we have continued to focus on supporting foundations to act to be more diverse, equitable and inclusive.

Another example about how diversity, equity and inclusion is considered came with the publication of the report from the Commission on Race and Ethnic Disparities, which came out in April 2021. Many members contacted us to express their concerns about the way the report was presented which appeared to downplay the impact of racism in society and counter to the evidence from many foundations’ work and that of the partners they work with, particularly from communities experiencing racial inequity.

Following the success of the sessions on unconscious bias and in response to strong member demand we launched a series of DEI events, with the first one delivered in July 2021, with 60 different members and six non-members attending. This was the first of a series of events under the umbrella of diversity, equity and inclusion aimed at senior foundation staff and trustees. Members and non-members were joined by two of the world’s leading experts to discuss what diversity, equity and inclusion mean beyond the acronym of DEI; examine practical steps to enable inclusive practice and achieve equitable outcomes; and hear why diversity matters at every level of your organisation.

ACF helped to promote the new DEI Data Standard, which is hosted on the Funders’ Collaborative Hub website. It was created by the DEI Data Group, an independent working group that includes a range of UK foundations. The group shares the view that without an effective framework to capture DEI data there can be no effective action to identify and target funding to address structural inequalities. This led to the creation of the DEI Data Standard.

We worked with a small group of foundations on a joint letter to the Prime Minister (who commissioned the work of the Commission on Race and Ethnic Disparities) and ACF coordinated sign-up. The letter called on the PM to publicly affirm a commitment to actively tackle racism in all its forms wherever it is found and to make clear that the Government does not agree with narratives that deny the harm caused by racism in society. Foundations generally do not often sign letters like this, so it shows the level of concern that 68 foundations signed.

ACF also hosted an event exploring practical and inclusive solutions to language barriers facing grant applicants. The event followed on from a blog by Dana Kohava Segal, with helpful suggestions for funders to help turn DEI intentions into actions.

“OUR STRONGER FOUNDATIONS TOOL SHOWS THAT FOUNDATIONS RECOGNISE THAT THEY HAVE WORK TO DO ON DIVERSITY, BUT WE ARE ALSO CAPTURING THE EVIDENCE OF WORK THAT HAS STARTED.”

“THE LETTER CALLED ON THE PM DEI EVENTS TO PUBLICLY AFFIRM A COMMITMENT TO ACTIVELY TACKLE DEI EVENTS 2 IN 2021 RACISM IN ALL ITS FORMS WHEREVER IT IS FOUND AND TO MEMBERS MAKE CLEAR THAT ORGANISATIONS 50 ATTENDED THE GOVERNMENT DOES NOT AGREE WITH NARRATIVES INDIVIDUALS THAT DENY THE FROM MEMBERS 81ATTENDED HARM CAUSED BY RACISM IN SOCIETY.” EVENTS PLANNED 3 FOR 2022

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Association of Charitable Foundations (ACF) Articles in Trust & Foundation News are ACF contributors: Max Rutherford, Joanna
is a company limited by guarantee registered copyright to the author and ACF. Pienkowska, Natasha Robinson, Jim Cooke
in England and Wales, company registration number: 5190466. Registered charity number: 1105412. We are happy for them to be reproduced free of charge, but the author and source should be acknowledged. Views expressed in articles and James Magowan ACF photography: Matthew Brown ACF
Registered office: ACF, Fourth Floor, 28 are not necessarily those of the ACF.
Commercial Street, London E1 6LS. Editors: Richard Hebditch, Carol Mack,
Telephone: 020 7255 4499 Josephine Hunt, Sarah Myers
Email: acf@acf.org.uk Designer: Tom Poslett
Website: acf.org.uk
ISSUE 126 WINTER 2021/22
COMMUNITY, IDENTITY
AND BELONGING
ALSO SUPPORTING ACF’S ANNUAL UNTHUNKING THE THE VALUE OF A
SMALLER CONFERENCE ESG GLUNK QUIET PARTNER
IN THIS ISSUE FOUNDATIONS Introducing the 10 pillars of stronger practice Working together for a bolder, more inclusive, future What Dr Seuss can teach us about driving positive and lasting change Interview with Philippa Charles from the Garfield Weston Foundation
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18[|] Annual report 2021

Annual report 2021[|] 19

5. ACF THRIVES

“ WHILE THE PANDEMIC FORCED A SUBSTANTIAL CHANGE TO THE WAY ACF DELIVERED ITS MEMBERSHIP BENEFITS AND POLICY WORK, THE FINANCIAL STATEMENTS PRESENT A STABLE FINANCIAL POSITION.”

AND IS SUSTAINABLE TO SUPPORT MEMBERS OVER THE LONGER TERM

It is essential that ACF is financially stable and develops effective systems and processes in order to deliver on its mission.

The trustees gave careful consideration to the mode of ACF’s operation as the impacts of the Covid-19 pandemic continued through 2021 and determined that no further changes were necessary.

ENSURING ACF IS FINANCIALLY ROBUST

ACF continues to balance our available resources to deliver our programme under the cloud of the Covid-19 pandemic. We are extremely grateful to the continued support of our members, including those who provided additional grants in 2021 to enable ACF to maintain progress on key activities.

Our financial position remains strong as a result of membership growth in 2021 and the stability generated by the continuation of the Official Partner Programme (OPP). The OPP contracts ended in 2021 and have been renewed with all current partners.

Recent years have seen a steady growth in ACF membership and networks, driven in part by the greater profile of our advocacy and support for the foundation sector, and new opportunities to contribute to our Social Impact Investors Group, Members’ Policy Forum and the Stronger Foundations initiative. We have increased our headcount slightly in order to service our new members effectively.

The audited financial position shows an unrestricted surplus of £144,311 for the year. Partly this was driven by expenditure being deferred to 2022 (including the costs of our strategy review and staff training), but also by actuarial gains for one of our pension funds which is in deficit, and releasing a provision for property costs no longer needed.

This surplus increased ACF’s total general fund to £633,295. Of this total, £146,182 represents fixed assets, including capitalised investment of the new Customer Relationship Management (CRM) software, leaving free reserves of £487,113.

While the pandemic forced a substantial change to the way ACF delivered its membership benefits and policy work, the financial statements present a stable financial position.

The trustees have considered the unrestricted reserves that ACF requires to sustain its operations with reference to the Charity Commission for England and Wales’ guidance on charity reserves as set out in CC19. Trustees have agreed a long-term aim of balancing income and expenditure to deliver a level of free reserves that is between four and six months’ operating expenditure. The reserves balance at the end of 2021 was in the midpoint of this range at 5.1 months based on 2021 expenditure.

The board has determined that the current level of reserves is sufficient to mitigate any future operating deficits driven from strategic investment, with the goal of balancing income and expenditure over five years.

Income and expenditure forecasts for a three year period are reviewed annually and in-year performance is monitored at each trustee meeting to ensure that any adverse impacts are managed proactively.

ACF completed its implementation of the CRM in 2021, ensuring that there is a single database to support the core processes of the organisation. We continue to deploy resources to ensure that processes are streamlined and member experience and engagement is enhanced.

GROUP INCOME TRENDS – LAST FIVE YEARS

Conferences and meetings Networks Fees and grants Earned income

Member subscriptions Partnership income

1,600,000

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1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0 2017 2018 2019 2020 2021
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20[|] Annual report 2021

Annual report 2021[|] 21

Gender pay gaps have widened over the past 12 months as a result of ACF enlarging its staff from 16 to 18 and the additional roles being offered to female candidates. Additionally, we have a number of interim roles who are remunerated in accordance with our pay policy, where commencement remuneration is at the bottom of the pay band with progress assessed on an annual basis. ACF continues to have an equal balance of male and female staff in director level posts.

GOING CONCERN REMUNERATION It is the view of the ACF board at the POLICY

It is the view of the ACF board at the time of signing this annual report and the annual accounts that both ACF and ACF Conferences and Seminars Limited are going concerns. In view of Covid-19 the trustees have given additional consideration to the going concern status of the charity and ACF Conferences and Seminars Limited and do not consider there to be any additional concerns to report.

All trustees give of their time freely and no trustee remuneration was paid in the year.

ACF provides a competitive employment offer under a transparent pay policy for staff. The pay policy enables us to attract, retain and motivate our talented staff team, while providing more clarity and transparency about pay differentials between staff. Budgetary constraints, external environment, wider job market, values of the organisation and the morale of staff will all be factors in deciding any employment offer. ACF is a London Living Wage employer.

As a result of the structural changes to ACF’s workforce noted above, females’ median hourly wage is 25.0% lower than the males’ median hourly wage, compared to 14.9% at the same date in 2021. When comparing mean hourly wages, the females’ hourly wage is now 21.8% lower than the males’ hourly wage, a greater divergence from the 12.9% recorded in 2021.

INCOME TO SUPPORT OUR SERVICES TO MEMBERS

The current full-time equivalent salary differential between the highest and lowest paid staff member is 3.2 (2021 3.9).

ACF’s principal sources of funding are membership subscriptions, commercial income from its OPP, and fees and grants to assist delivering its charitable activities. Members pay an annual subscription on a sliding scale, which is based on their grant expenditure in their previous financial year. In 2021 ACF received a number of restricted grants, further detailed in Note 5 to the financial statements. ACF does not set a target to raise income from its cash reserves, nor does it have an investment policy.

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ACF is not required to publish its gender
pay gap information given its relatively
small size, however, chooses to do so
voluntarily. As in 2020, we follow the
UK government guidelines for
disclosure of this data using the
prescribed formulae.
Females Males Total
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ACF’S APPROACH TO FUNDRAISING FROM THE PUBLIC

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||||| |---|---|---|---| |Top quarter|2|3|5| |Upper middle quarter|4|1|5| |Lower middle quarter|4|0|4| |Lower quarter|4|0|4| |Total|14|4|18|

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ACF does not seek funds directly from the public, nor do we use commercial or professional fundraisers. As a result, we are not signed up to a voluntary fundraising regulation scheme or standard. ACF has complaints, whistleblowing and anti-bribery policies and these can be found on our website. We have received no fundraising related complaints.

BALANCE SHEET “ ACF CONTINUES TO HAVE AN LIABILITIES EQUAL BALANCE OF MALE ACF is carrying a Pensions Trust Growth AND FEMALE STAFF IN Plan liability on its balance sheet, which represents the net present value of the DIRECTOR LEVEL POSTS”

ACF is carrying a Pensions Trust Growth Plan liability on its balance sheet, which represents the net present value of the deficit reduction contributions payable by ACF. This year has again seen a reduction in ACF’s liability leaving the balance at £13,014 (2020: £50,918).

“ ACF IS A LONDON LIVING WAGE EMPLOYER.”

The Pensions Trust Growth Plan has put in place arrangements to assist Plan members who have difficulty meeting deficit payments as a result of the pandemic. ACF has not, and does not expect to, need this assistance.

The Plan invests for the long term and monitors its investment strategy and funding position. A triennial review was completed in 2021, with a reduction in deficit funding per annum required by each scheme employer.

ACF holds no funds as a trustee on behalf of others.

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MEDIAN MEAN
April 20 April 20
April 21 April 21
April 22 April 22
120 120
100 100 100 100 100 100
100 100
87.1
85.1 84.2
78.9 78.2
75.0
80 80
60 60
40 40
20 20
0 FEMALE MALE 0 FEMALE MALE
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22[|] Annual report 2021

Annual report 2021[|] 23

RISK
MANAGEMENT
ACF actively manages the risks it faces.
Key risks are identifed and prepared by
management and reviewed quarterly by
the Finance and Risk Committee and
annually by the Board. Key risks and
mitigations being actively managed
are as follows:		 “ ENSURE ALL PROGRAMMES OF
WORK HAVE DETAILED PLANS,
SUCCESS CRITERIA AND
MILESTONES.”		 “ ENSURE ALL PROGRAMMES OF
WORK HAVE DETAILED PLANS,
SUCCESS CRITERIA AND
MILESTONES.”		 “ ENSURE ALL PROGRAMMES OF
WORK HAVE DETAILED PLANS,
SUCCESS CRITERIA AND
MILESTONES.”
Key risk
Type
Implications		 Mitigations Impact Likelihood Key risk
Type		 Implications Mitigations Impact Likelihood
ACF staff’s
capacity and
capability
building
insuffcient to
deliver annual
workplans
Operational /
Strategic
ACF’s lacks the resources and
scope to have impact in the sector
through its work, losing relevance
and membership numbers in the
medium term		 1. Ensure that workplan is prioritised
based on impact, and resources
released for priority elements. Workplan
to focus on teams working together
collaboratively to achieve organisational
objectives to be more roundly delivered.
2. Strengthen HR processes across
recruitment, induction, development,
performance management and clarity
of roles/responsibilities to ensure all
staff have clear alignment to
organisation objectives and directors
have contingency plans to cover gaps
where the team is unable to deliver
3. Increase staff engagement through
consistent communication of priorities /
progress using RAG rating of work plan
elements
4. Ensure all programmes of work have
detailed plans, success criteria and
milestones		 High Low Data Breach
Reputational
Reduction in
restricted
funding for
programme
Financial /
Operational		 Poorly handled or unchecked data
breach is a potential terminal event
A number of key parts of the ACF
offer are funded outside
membership fees (Foundation
giving trends, Members Policy
Forum, Climate work, Funders
Collaborative Hub), which also
contribute to staff costs and
overheads. Loss of this funding
would lead to ACF having to fund or
discontinue these activities
impacting effectiveness in the
sector		 1. Undertake additional internal training in
Q2 2022 for existing staff, modify
inductions for all new staff and
complete refresher sessions as part of
ongoing development planning
2. Review data held as part of migration to
SharePoint to mitigate risk
3. Update policies to ensure ACF has
unauthorised risks mitigated
1. Plans for 2022 incorporated in budget
and workplans
2. Identify current funders and potential
long term partners to support various
strands of work
3. Ensure all funding applications are
made well before existing funding
expires		 High
Medium		 Medium
Medium
Staff physical
and mental
wellbeing
negatively
impacted by
continuing
COVID-19
situation
Operational
Staff (or family) become unwell and/
or well-being compromised,
impacting ACF’s ability to service
members, increasing ACF costs to
backfll and potentially increasing
staff turnover
Poor
Membership
renewals
Financial /
Strategic
Financial defcit compromising
ACF’s ability to deliver work plan
and core services		 1. Ensure Directors have fexibility to
balance work output to personal
circumstances
2. Managing workplan to account for staff
capacity levels varying as the pandemic
changes
3. Ensure 121 process reviews both work
and non-work progress
1. Regular reporting of renewal status via
CRM dashboard
2. Maintain new members target list, and
report new memberships in KPI’s		 High
Medium		 Medium
Low		 Insuffcient
progress with
ACF’s own
Diversity, Equity
and Inclusion
and Climate
practice
Reputational		 The business and operational
benefts of a diverse team are
well-known and ACF staff team is
not benefting from this as the board
has from improved diversity. Our
DEI and climate change work have
the potential for reputational
damage given the dissonance
between the make up of ACF staff
team and our own environmental
actions, and our public work on this
topic.		 1. Execute the DEI plan through 2022
2. Overhaul recruitment processes to
advance diverse hires, tracking
progress after each hire and modifying
processes based on learnings
3. 2022 Trustee recruitment to continue
to seek to build a diverse board
4. Document an Environmental policy by
end of Q2 for 2022 Board review and
subsequent adoption
5. Review progress on DEI and climate
action at all staff away day in Q3		 Medium Medium
monthly
3. Maintain direct executive leadership
team contact with foundations key
associates and all those who provide
additional grants
CRM does not
deliver benefts
Operational
Poor staff engagement and use
lead to alternate data sources which
detract from one source of
information to support membership
and policy objectives.		 1. Track engagement monthly as one of
ACF’s Key Performance Indicators (KPIs)
2. Undertake advanced training with core
staff to create centres of excellence
who will share knowledge
3. Regularly review benefts accruing as
part of the development planning
managed through Technology Approval
Group		 Medium Medium
24 Annual report 2021 Annual report 2021

GOVERNANCE

BOARD OF TRUSTEES OF THE CHARITY

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Name Position Committee membership(s) Appointed or Member
during the year resigned date
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Jessica Brown Interim Offcers Appointed interim chair Trusthouse Charitable Foundation
chair 01.03.22
David Renton Treasurer Offcers, Finance & Risk, Guy’s and St Thomas’ Foundation*
ACF Conferences and
Seminars Limited
Nick Acland Trustee Nominations & Remuneration Henry Smith Charity
Sufna Ahmad MBE Trustee DEI working group John Ellerman Foundation
Andrew Barnett OBE Trustee Nominations & Remuneration Calouste Gulbenkian Foundation
(UK branch)*
Sarah Benioff Trustee DEI working group Cripplegate Foundation
Síofra Healy Trustee Finance & Risk Community Foundation Northern
Ireland
Michelle Molyneux Trustee Finance & Risk Reappointed 29.06.21 The Worshipful Company of Grocers
Klara Skrivankova Trustee Finance & Risk, Trust for London
ACF Conferences and
Seminars Limited
Edward Walden Trustee Nominations & Remuneration, Power to Change
DEI working group
Stephen Fenning Trustee DEI working group Appointed 29.06.21 Colyer-Fergusson Charitable Trust
Janet Morrison OBE Chair Offcers Resigned 28.02.22 The Baring Foundation*
Aanchal Clare Trustee Nominations & Remuneration Resigned 19.07.21 Peter Minet Trust
Anthony Tomei CBE Trustee Finance & Risk Resigned 29.06.21 The Bell Foundation

THE TRUSTEE BOARD

The board is responsible for the general management and supervision of the work of ACF. The trustees of ACF meet quarterly to set the strategic direction of the charity and monitor its effectiveness.

ACF’s trustees are elected by members at an AGM for an initial term of three years. Trustees retire by rotation at the end of their initial term, and may offer themselves for re-election, but cannot serve for more than six successive years. At least four trustees retire at each AGM.

All elected trustees must at the time of their appointment be connected to a member of ACF, for example as a trustee or as a member of staff. In addition, the board may co-opt a further five members to the board. ACF’s members are non-governmental organisations in the UK, whose functions or activities include grantmaking for charitable purposes, and endowed charitable foundations.

TRUSTEE INDUCTION

New trustees are invited to a half day induction where they meet key ACF staff and discuss ACF’s objectives, activities and budgets. They normally receive an information pack as part of their induction which includes the relevant guidance for trustees from the Charity Commission for England and Wales, together with papers from recent board meetings. Trustees individually also attend ACF’s member events and thereby widen their awareness of current issues and concerns amongst ACF’s membership.

ACF’S OBJECTS AND PUBLIC BENEFIT

ACF’s objects are to further the work of charitable grant-making trusts and institutions for the public benefit by:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.

Under the Companies Acts 1985 and 1989, ACF is limited by guarantee and does not have share capital. Its memorandum and articles of association were fully reviewed and revised in 2004 and amended in 2018 and 2020. The trustees have had regard to the Charity Commission for England and Wales’ guidance on public benefit in considering what work the charity should undertake and in the performance of their duties.

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.

In so far as the trustees are aware:

The chief executive, the directors and heads of departments are the key managers in charge of directing and controlling the charity on a day-to-day basis operating under a trustee approved scheme of delegation.

The trustees (who are also directors of the Association of Charitable Foundations for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website.

Legislation in the United Kingdom Accounting Practice). governing the preparation and Company law requires trustees to dissemination of financial statements prepare financial statements for each may differ from legislation in other financial year which give a true and fair jurisdictions. view of the state of the affairs of the charitable company and of the incoming resources and application of ACF resources, including the income and expenditure, of the charitable company CONFERENCES for that period. In preparing these AND SEMINARS financial statements, the trustees are required to: LIMITED

Directors

Gemma Instrall Carol Mack OBE David Renton Klara Skrivankova

Company Secretary

Natasha Kousseff

26[|] Annual report 2021

Annual report 2021[|] 27

ADVISERS AND BANKERS

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Bankers Solicitors Auditors
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Cater Allen Private Bank Stone King Moore Kingston Smith
2 Triton Square, Boundary House Devonshire House
Regent’s Place 91 Charterhouse Street 60 Goswell Road
London, NW1 3AN London, EC1M 6HR London EC1M 7AD
Unity Trust Bank Russell-Cooke
Four Brindley Place 2 Putney Hill
Birmingham, B1 2JB London, SW15 6AB

CCLA Investment Management Limited

COIF Charity Funds 85 Queen Victoria Street, London, EC4V 4ET

Close Brothers Limited

10 Crown Place London, EC2A 4FT

In preparing this report the trustees have taken advantage of the small companies exemption provided by section 415A of the Companies Act.

Approved by the Board and signed

on its behalf by:

…………………………………..………

…………………………….………………… David Renton, treasurer

Jessica Brown, interim chair

Date 11 May 2022

Date 11 May 2022

OUR THANKS

ACF’s work would not be possible without support and encouragement from many members and other supporters. We would like to express our particular thanks for these as follows:

ACF’s Official Partners:

For in kind support for:

For serving on advisory group of Funder Commitment on Climate Change:

For serving on the FIRM steering group:

For additional core support of ACF’s activities:

We would also like to thank all those many members who have generously hosted meetings on behalf of ACF or given their time to convene our networks or to speak at our events.

For participating in the Steering Group of the SIIG (Social Impact Investors Group of foundations):

For additional financial support for:

28[|] Annual report 2021

Annual report 2021[|] 29

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

BASIS FOR OPINION

OPINION

OTHER INFORMATION

We have audited the financial statements of Association of Charitable Foundations (the ’parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2021 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

We conducted our audit in accordance with International Standards on Auditing (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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

CONCLUSIONS RELATING TO GOING CONCERN

In our opinion the financial statements:

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

We have nothing to report in this regard.

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

OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

We have nothing to report in respect of the following matters where the

Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 25, 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 group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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.

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

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern

30[|] Annual report 2021

Annual report 2021[|] 31

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.

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

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.

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. 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:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date 11 May 2022

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

FINANCIAL STATEMENTS

Association of Charitable Foundations

Group statement of financial activities (incorporating an income and expenditure account) For the year ended 31 December 2021

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Total
Note £ £ £ £
Income from:
Charitable activities:
Members' subscriptions 838,637 - 838,637 766,338
Network subscriptions 62,272 - 62,272 55,213
Conferences and meetings 63,708 - 63,708 77,244
Fees and grants 5 55,047 193,800 248,847 150,080
Earned income 225 - 225 225
Other trading activities 2 200,000 200,000 200,000
Investment income 173 - 173 1,339
Other income 27,810 - 27,810 38,004
Total income 1,247,872 193,800 1,441,672 1,288,443
Expenditure on:
Charitable activities:
Members' services 4 1,094,770 - 1,094,770 1,141,938
Conferences and meetings 4 34,841 - 34,841 69,399
Project expenditure 4, 5 - 189,679 189,679 61,819
Total expenditure 1,129,611 189,679 1,319,290 1,273,156
Net income/(expenditure) 118,261 4,121 122,382 15,287
Actuarial gains/(losses) on defined 12, 26,050 - 26,050 (876)
benefit pension schemes 13A
Net movement in funds 13 144,311 4,121 148,432 14,411
Reconciliation of funds:
Total funds brought forward 13 545,970 27,761 573,731 559,320
Total funds carried forward 13 690,281 31,882 722,163 573,731
----- End of picture text -----

All of the above results are derived from continuing activities.

There were no other recognised gains or losses other than those stated above.

The attached notes form part of these financial statements.

32[|] Annual report 2021

Annual report 2021[|] 33

Association of Charitable Foundations Group balance sheet At 31 December 2021

Association of Charitable Foundations Group statement of cash flows At 31 December 2021

----- Start of picture text -----
2021 2021 2020 2020
Group Charity Group Charity
Note £ £ £ £
Fixed assets:
Tangible and intangible assets 7 146,182 146,182 88,577 88,577
Investments 8 - 2 - 2
146,182 146,184 88,577 88,579
Current assets:
Debtors 9 90,148 269,765 147,877 331,399
Cash at bank and in hand 323,341 142,908 275,014 88,555
Short term deposits 301,173 301,173 394,253 394,253
714,662 713,846 817,144 814,207
Liabilities:
Creditors: amounts falling due within one year 10 (111,167) (110,353) (266,032) (263,097)
Net current assets 603,495 603,493 551,112 551,110
Total assets less current liabilities 749,677 749,677 639,689 639,689
Creditors: amounts falling due after one year 10a (14,500) (14,500) (15,040) (15,040)
Net assets excluding pension liability 735,177 735,177 624,649 624,649
Defined benefit pension scheme liability 12 (13,014) (13,014) (50,918) (50,918)
Total net assets 722,163 722,163 573,731 573,731
Funds
Restricted funds 13 31,882 31,882 27,761 27,761
Unrestricted funds:
Designated funds
Pension Trust deficit reduction fund 13 70,000 70,000 60,000 60,000
Pension liability reserve 13 (13,014) (13,014) (50,918) (50,918)
General fund 13 633,295 633,295 536,888 536,888
Total unrestricted funds 690,281 690,281 545,970 545,970
Total funds 722,163 722,163 573,731 573,731
----- End of picture text -----

As permitted by Section 408 of the Companies Act 2006, no separate Statement of Financial Activities for the charity alone has been presented. The net income of the standalone charity for the year was £122,382 (2020: £15,287) before transfers between funds.

Approved by the trustees and authorised for use on 11 May 2022 and signed on their behalf by:

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

…………………………………..……… …………………………….…………………

Jessica Brown, interim chair

David Renton, treasurer

Company registration no. 5190466

----- Start of picture text -----
Note 2021 2021 2020 2020
£ £ £ £
Net cash provided by operating activities 14 67,340 36,548
Cash flows from investing activities:
Purchase of fixed assets (112,266) (19,618)
Purchase of investments - -
Interest income 173 1,339
Cash used in investing activities (112,093) (18,279)
(44,752) 18,269
- -
Cash flows from financing activities
Change in cash and cash equivalents in the year 15 (44,752) 18,269
Cash and cash equivalents at the beginning of the year 669,270 651,001
Cash and cash equivalents at the end of the year 15 624,521 669,270
----- End of picture text -----

Association of Charitable Foundations

Notes to the Financial Statements For the year ended 31 December 2021

Basis of preparation

Critical estimates and areas of judgement

1A. ACCOUNTING POLICIES

These financial statements have been prepared in accordance with the Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102) (effective 1 March 2018), Charities SORP (FRS102) and the Companies Act 2006. The functional currency of the charity is sterling and the financial statements have been rounded to the nearest £.

The following principal accounting policies have been consistently applied in preparing the financial statements.

Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In making these estimates the Association makes assumptions concerning the future. The trustees do not believe that there is a significant risk of a material adjustment being made to the carrying amounts of assets and liabilities included in these financial statements within the next financial year. Key estimates include the useful economic life of fixed assets, the recoverability of debtors and the assumptions made by the actuary in valuing the pension liability.

Group accounts

The financial statements present the group Statement of Financial Activities (SOFA), group Statement of Cash Flows and the group and Charity Balance Sheets comprising of the consolidation of the Charity with its wholly owned subsidiary ACF Conferences & Seminars Limited (company registration number 03902450).

Public benefit entity

The Association of Charitable Foundations (‘the Association’) meets the definition of a public benefit entity under FRS102.

34[|] Annual report 2021

Annual report 2021[|] 35

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2021

Fund accounting

Unrestricted funds comprise both the General Fund and any Designated Funds. The General Fund comprises membership subscriptions and other incoming resources received or generated for the objects of the Association without further specified purpose.

Trustees have designated two funds, the Pensions Deficit Reduction Fund, and the Pension Liability Reserve Fund. Both represent funds that the trustees have put aside from General Funds to fund particular expenditure and are restricted in an administrative rather than a legal sense. For further details of designated funds, see note 13.

Restricted funds are to be used for specified purposes as expressed in grant agreements. Restricted grants are recognised in full in the SOFA in the period in which they are received or receivable whichever is the earlier, unless they are for a specified period in which case they are deferred. These funds and movements in them are described in note 5.

Tangible and intangible fixed assets

Expenditure on office equipment of less than £500 is charged to the SOFA when incurred. Expenditure greater than £500 is capitalised and depreciated. Depreciation is provided on capitalised fixed assets at rates calculated to write off the cost of each asset over their expected useful lives as follows (less estimated residual value where this is readily available):

Office Furniture, IT and telecommunications equipment Three years

Software development Five years

Leasehold improvements Three years

Leasehold improvements

depreciation is charged on a monthly basis from November 2019, which is the commencement of occupation. For software development, depreciation is charged on a monthly basis from the month in which asset is usable, with ongoing expenses such as licences and maintenance to be expensed when incurred. All other assets are charged a full year’s depreciation in the year an asset is purchased.

Incoming resources

All incoming resources are included in the SOFA when the charity is legally entitled to receipt, any performance conditions attached have been met, it is probable that the income will be received and the amount can be measured reliably. Deferred income is income received or recorded before it is earned, and shown in the income statement only when it can be matched with the period in which it is earned.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Wherever possible costs are directly attributed to these headings. Costs common to more than one area are apportioned using a suitable basis.

Allocation of support costs

Indirect costs are those costs incurred in support of the charitable objectives and governance of the Association. These have been allocated to the charitable activities on a basis that fairly reflects the true use of those resources within the organisation.

Financial assets/liabilities

The charity has financial assets/ liabilities of a kind that qualify as basic financial instruments only. Basic financial instruments are initially recognised at transaction value, unless otherwise stated in the relevant account policy note(s), and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

The investment in the subsidiary is stated at cost.

Going concern

The trustees consider that there are no material uncertainties about the Association’s ability to continue as a going concern. In view of Covid-19 the trustees have given additional consideration to the going concern status of the charity and ACF Conferences and Seminars Limited and do not consider there to be any additional concerns to report.

Pension arrangements

Now:Pensions

ACF participates in a defined contribution pension scheme, Now:Pensions. The amounts charged to the statement of financial activities for the defined contribution scheme represent the contributions payable in the period.

TPT Retirement Solutions

ACF also participates in the TPT Retirement Solutions (formerly Pensions Trust) Growth Plan Scheme. This is a multi-employer scheme where ACF’s share of the underlying assets and liabilities cannot be identified on a consistent and reasonable basis. In accordance with FRS 102, it is therefore accounted for as a defined contribution scheme. A deficit funding arrangement is in place for the scheme. A liability is recognised for the net present value of the deficit reduction contributions payable by ACF. Actuarial gains/losses are separately classified on the SOFA.

1B. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 2020 INCLUDED FOR COMPARATIVE PURPOSES

2020
Unrestricted Restricted Total
Note £ £ £
766,338
55,213
77,244
60,500
225
200,000
1,339
38,004		 -
-
-
89,580
-
-
-		 766,338
55,213
77,244
150,080
225
200,000
1,339
38,004
1,198,863 89,580 1,288,443
1,141,938
69,399
-		 -
-
61,819		 1,141,938
69,399
61,819
1,211,337 61,819 1,273,156
(12,474)
(876)
(13,350)
559,320		 27,761
-
27,761
-		 15,287
(876)
14,411
559,320

36[|] Annual report 2021

Annual report 2021[|] 37

Notes to the Financial Statements For the year ended 31 December 2021

Association of Charitable Foundations

2. ANALYSIS OF OTHER TRADING INCOME

----- Start of picture text -----
2021 2020
£ £
Official Partnership Programme fees 200,000 200,000
----- End of picture text -----

3. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSONNEL

----- Start of picture text -----
2021 2020
£ £
Salaries and wages 638,651 661,664
Social security costs 62,751 66,454
Pension contributions 65,586 63,364
Pension Trust finance cost 121 619
Recruitment & training 19,257 15,555
Temporary staff, consultancy & all other staff costs 155,492 88,789
941,858 896,445
----- End of picture text -----

Staff costs were incurred in the following way:

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£ £
Unrestricted funds
Members’ services
Restricted funds
Funders’ Collaborative Hub
Members’ Policy Forum
Funder Commitment on Climate Change
International Philanthropy Commitment on Climate Change
Foundation Giving Trends
Total		 814,189
86,555
9,000
15,870
-
16,244		 835,373
38,571
14,383
6,038
2,080
-
127,669
941,858		 61,072
896,445

The above salaries and wages for 2021 include aggregate termination payments totalling £12,744 (2020: £20,750

The following number of employees received benefits (excluding employer pension) during the year between:

2021 2020
£90,000 and £99,999
1
1

The highest paid member of staff was the chief executive, receiving a salary in the year of £88,000 (2020: £87,323) and a non-consolidated performancerelated payment of £5,000 (2020: £5,000). The total financial benefit (including employer pension) awarded to the chief executive was £101,800 (2020: £101,055). The total benefits

including pension contributions of key management personnel were £308,718 (2020: £329,450).

The average number of staff employed in the delivery of charitable activities in the year was 17.2 (2020: 15.5); FTE 14.4 (2020: 12.8)

4. ANALYSIS OF TOTAL RESOURCES EXPENDED

4.1 Current year

Staff Costs Indirect
Costs		 Governance
Costs		 2021
£ £ £ £
Unrestricted Funds
Members’ Services
Conferences and Meetings
Total Unrestricted Resources Expended
Restricted Funds
Project Expenditure
Total Restricted Resources Expended
Total Resources Expended		 814,189
-		 250,993
33,284		 29,588
1,557		 1,094,770
34,841
814,189 284,277 31,145 1,129,611
127,669 62,010 - 189,679
127,669 62,010 - 189,679
941,858 346,287 31,145 1,319,290
(Note 3 and 4b) (Note 4a) (Note 4c)
4.2 Prior year
Staff Costs Indirect
Costs		 Governance
Costs		 2020
£ £ £ £
Unrestricted Funds
Members’ Services
Conferences and Meetings
Total Unrestricted Resources Expended
Restricted Funds
Project Expenditure
Total Restricted Resources Expended
Total Resources Expended		 835,373
-		 286,725
68,133		 19,840
1,266		 1,141,938
69,399
835,373 354,858 21,106 1,211,337
61,072 747 - 61,819
61,072 747 - 61,819
896,445 355,605 21,106 1,273,156
(Note 3 and 4b) (Note 4a) (Note 4c)

38[|] Annual report 2021

Annual report 2021[|] 39

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2020

4B. ANALYSIS OF STAFF COSTS

4A. ANALYSIS OF INDIRECT COSTS

4a.1 Current year

Members’
Services
Conferences &
Meetings
Project
Expenditure
2021
£
£
£
£
ICT & communications
Publications & printed matter
Meetings & events
Other & staff expenses
Property-related expenditure		 62,759
3,303
142
66,204
36,637
-
5,007
41,644
-
24,977
874
25,851
56,519
-
47,887
104,406
95,078
5,004
8,100
108,182
250,993
33,284
62,010
346,287

Indirect costs, where relevant, have been allocated based on actual expenditure. IT & property costs have been apportioned between Members’ Services and Conferences & Meetings based on income percentages.

4a.2 Prior year

Members’
Services
Conferences &
Meetings
Project
Expenditure
2020
£
£
£
£
ICT & communications
Publications & printed matter
Meetings & events
Other & staff expenses
Property-related expenditure		 38,590
5,766
30
44,386
45,504
-
-
45,504
-
51,961
717
52,678
39,612
-
-
39,612
163,020
10,406
-
173,425
286,726
68,133
747
355,605

4b.1 Current year

Members’
Services
Project
Expenditure
2021
£
£
£
Salaries and wages
Social security costs
Pension contributions
Pension Trust defcit contributions
Recruitment and training
Temporary staff, consultancy & all other staff costs		 535,796
102,855
638,651
58,145
4,606
62,751
61,438
4,148
65,586
121
-
121
19,257
-
19,257
139,432
16,060
155,492
814,189
127,669
941,858

4b.2 Prior year

Members’
Services
Project
Expenditure
2020
£
£
£
Salaries and wages
Social security costs
Pension contributions
Pension Trust defcit contributions
Recruitment and training
Temporary staff, consultancy & all other staff costs		 627,892
33,772
661,664
66,454
-
66,454
63,364
-
63,364
619
-
619
15,555
-
15,555
61,489
27,300
88,789
835,373
61,072
896,445

4C. ANALYSIS OF GOVERNANCE COSTS

2021 2020
£ £
Auditor remuneration – audit fee for current year
Auditor remuneration – VAT review
Auditor remuneration – tax compliance
Internal & External Meetings
Strategic review
Trustee expenses
Sundries		 9,995
10,910
1,030
5,148
1,144
800
6,344
3,345
10,525
-
251
877
1,856
26
31,145
21,106

Governance costs are apportioned based on income percentages.

40[|] Annual report 2021

Annual report 2021[|] 41

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2021

5. RESTRICTED FUNDS – GROUP AND CHARITY

5.1 Current year

Project Funders
Collaborative
Hub		 Funder
Commitment
on Climate
Change		 Foundation
Giving
Trends		 Catalytic
Capital		 Wellbeing
Fund		 Members’
Policy
Forum		 Total 2021
£ £ £ £ £
Grant income
85,000
-
71,800
20,000
2,000
15,000
193,800
Expenditure
Staff & consultancy
86,555
15,870
16,244
-
-
9,000
127,669
Direct project costs
-
592
50,031
887
2,000
400
53,910
Overheads
-
-
2,500
-
-
5,600
8,100
Total Expenditure
86,555
16,462
68,775
887
2,000
15,000
189,679
Net Income/(expenditure)
(1,555)
(16,462)
3,025
19,113
-
-
4,121
As at 1 January 2021
11,299
16,462
-
-
-
-
27,761
As at 31 December 2021
9,744
-
3,025
19,113
-
-
31,882

Included in unrestricted grant income for the year is £1,548 (2020: £0) in government grants under the Coronavirus Job Retention Scheme (CJRS).

Funders Collaborative Hub

Funding from Esmée Fairbairn Foundation, the Henry Smith Charity, John Lyon’s Charity, and Lloyds Bank Foundation for England and Wales, to support the Funders Collaborative Hub, an initiative to enable increased understanding, closer alignment, and opportunities for funder collaboration.

Funder Commitment on Climate Change

Funding from Esmée Fairbairn Foundation to support ACF’s hosting of the Funder Commitment on Climate Change, to promote the commitment and support signatories to implement the pledges.

6. TRUSTEE BOARD EXPENSES

The trustee board members received no remuneration in the current or prior year.

The amount of travel and other expenses reimbursed to, or paid on behalf of, two trustees was £251 (2020: three trustees at £877).

Foundation Giving Trends

Funding from the Pears Foundation to support research by Dr Catherine Walker resulting in the annual publication by ACF of Foundation Giving Trends.

Catalytic Capital research

A new sector-led research project to identify the barriers to deploying catalytic capital: long-term, affordable and flexible repayable finance. Hosted

by ACF on behalf of the Social Impact Investors Group (SIIG) and funded by Access – The Foundation for Social Investment and Big Society Capital.

All elected trustees must be a current trustee, employee or other representative of a member of the Association at the time of their appointment. Membership subscriptions with these members have been raised on an arms-length basis.

Wellbeing fund

Funding from The Tudor Trust to support staff wellbeing.

Members’ Policy Forum

Funding from the Barrow Cadbury Trust to support the work of the Members’ Policy Forum, an initiative that increases opportunities for our members to engage directly with ACF’s policy work, raise issues of concern, and regularly engage with policymakers in government.

There were no related party transactions requiring disclosure in the year or the prior year.

5.2 Prior year

----- Start of picture text -----
Project Funders Funder International Members’ Policy Total 2020
Collaborative Hub Commitment on Philanthropy Forum
Climate Change Commitment on
Climate Change
£ £ £
----- End of picture text -----

Grant income 50,000 22,500 2,080 15,000 89,580
Expenditure
Staff & consultancy 38,571 6,038 2,080 14,383 61,072
Direct project costs 130 - - 617 747
Overheads - - - - -
Total Expenditure 38,701 6,038 2,080 15,000 61,819
Net Income 11,299 16,462 - - 27,761
As at 1 January 2020 - - - - -
As at 31 December 2020 11,299 16,462 - - 27,761

7. FIXED ASSETS

7A. TANGIBLE FIXED ASSETS

----- Start of picture text -----
Group and charity Leasehold Office Furniture, IT Total
Improvements and telecoms
equipment
£ £ £
----- End of picture text -----

Cost
At 1 January 2021
Additions in the year
Disposals in the year
At 31 December 2021
Depreciation
At 1 January 2021
Disposals in the year
Charge for the year
At 31 December 2021
Net Book Value
At 31 December 2021
At 31 December 2020		 94,059
-
-		 77,501
-
(37,190)		 171,560
-
(37,190)
94,059 40,310 134,369
(36,578)
-
(31,353)		 (64,583)
37,190
(12,438)		 (101,161)
37,190
(43,791)
(67,931) (39,830) (107,761)
26,128 480 26,608
57,480 12,918 70,398

42[|] Annual report 2021

Annual report 2021[|] 43

Association of Charitable Foundations

Notes to the Financial Statements For the year ended 31 December 2021

8. INVESTMENT IN SUBSIDIARY UNDERTAKING

7B. INTANGIBLE FIXED ASSETS

----- Start of picture text -----
Group and charity Software Total
Development
£ £
----- End of picture text -----

Cost
At 1 January 2021
Additions in the year
Disposals in the year
At 31 December 2021
Depreciation
At 1 January 2021
Disposals in the year
Charge for the year
At 31 December 2021
Net Book Value
At 31 December 2021
At 31 December 2020
Total Net Book Value of Tangible and Intangible Fixed Assets
At 31 December 2021
At 31 December 2020		 18,178
112,266
-		 18,178
112,266
-
130,444 130,444
-
-
(10,870)		 -
-
(10,870)
(10,870) (10,870)
119,574 119,574
18,178 18,178
146,182
88,577
2021 2010
£ £
The charity holds 100% of the issued ordinary share capital of the following c
Subsidiary
Country of registration
Class
Shares held
The aggregate amount of capital and reserves and result of this undertaking
Subsidiary
Principal activity
Capital and reserves
Proft for the year		 2 2
ompany:
ACF Conferences and Seminars Limited
England and Wales
Ordinary
100%
for the last relevant fnancial year were as follows:
ACF Conferences and Seminars Limited
Conferences
£2
£nil
2021 2020
£ £
Turnover for the period
Cost of sales
Gross proft
Proft on ordinary activities before taxation
Tax on proft on ordinary activities
Proft for the year, transferred to the charity at year end		 201,500 200,163
(78,565) (96,474)
122,935 103,689
122,935
-
122,935		 103,689
-
103,689

All fixed assets are used for direct charitable purposes.

9. DEBTORS

Group Charity Group Charity
2021 2021 2020 2020
£ £ £ £
Amounts due from subsidiary undertaking
Prepayments and accruals
Taxation
Other debtors		 -
42,215
-
47,933		 214,817

42,215

-

12,733		 -
82,980
135
64,762		 210,826

79,676

135

40,762
90,148 269,765 147,877 331,399

£5,000 of the total owed by ACF Conferences and Seminars Ltd is a loan and is repayable at the option of the charity and is non interest-bearing.

In both years, the prepayments total includes a long-term debtor of £19,200 relating to a rental security deposit for the premises at Toynbee Hall.

44[|] Annual report 2021

Annual report 2021[|] 45

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2021

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
Group Charity Group Charity
2021 2021 2020 2020
£ £ £ £
----- End of picture text -----

Group
2021
£		 Charity
2021
£		 Charity
2021
£		 Group
2020
£		 Charity
2020
£		 Charity
2020
£
Accruals
Meeting fees received in advance
Subscriptions received in advance
Trading income received in advance
Staff leave carried forward
Staff wages
Other taxation and social security
Staff pensions
Dilapidations provision
Other creditors		 24,150
1,202
6,540
-
25,474
3,663
8,342
7,175
-
34,621
24,894

1,202

6,540
-

25,474

3,663

8,342

7,175
-

33,063		 38,144
3,333
56,830
-
20,648
3,922
3,759
6,056
53,501
78,202
37,427

3,333

56,830
-

20,648

3,922

3,759

6,056

53,501

75,984
111,167 110,353 266,032 263,097

12. PENSION LIABILITY

The Association participates in the Pensions Trust Growth Plan scheme, a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a ‘last-man standing arrangement’. Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme is carried out every three years, the most recent of which was carried out at 30 September 2020. This valuation showed assets of £799m, liabilities of £832m and a deficit of £33m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme.

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

In both years, meeting fees, The dilapidations provision related subscriptions, and trading income entirely to previous premises, on which received in advance entirely relate to the Association no longer has any the next financial year. obligation.

Reconciliation of opening and closing liabilities

10A. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Group Charity Group Charity
2021 2021 2020 2020
£ £ £ £
Dilapidations provision
Subscriptions received in advance		 14,500
-		 14,500
-		 8,500
6,540		 8,500
6,540
14,500 14,500 15,040 15,040

Subscriptions received in advance in 2020 relate entirely to 2022 financial year.

Association has contractual obligations for reinstatement relating to any property lease. The charge for the dilapidations provision in 2021 is £6,000 (2020: £6,000).

The trustees have adopted a dilapidations provision to reflect the estimated cost of future expenditure where the

11. TAXATION

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

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Group and charity 2021 2020
£ £
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Provision at 1 January 2021 50,918 61,050
Unwinding of the discount factor 121 619
Defcit contribution paid in year to the Pensions Trust (11,975) (11,627)
Impact of changes in the Pensions Trust's fund valuation assumptions (150) 876
Amendments to the contribution schedule (25,900) -
Provision at 31 December 2021 13,014 50,918

Where the scheme is in deficit and where the Association has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Under the Association’s recovery plan, £5,714 deficit contributions are due in the coming year, with the balance (subject to annual adjustments) to be paid in regular instalments ending 31 January 2025. £3,016 of plan expenses are due in the coming year.

46[|] Annual report 2021

Annual report 2021[|] 47

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2021

13B. ANALYSIS OF NET ASSETS BETWEEN FUNDS GROUP AND CHARITY

13A. UNRESTRICTED FUNDS GROUP AND CHARITY

Current year General fund Pension Trust
Defcit Fund		 Pension
Liability
Reserve Fund		 2021
£ £ £ £
Balances at 1 January 2021
Net income before transfers
Actuarial gains/(losses) on defned
beneft pension schemes
Transfer from/(to) General Fund
Balance at 31 December 2021		 536,888
118,261
-
(21,854)
60,000
-
-
10,000
(50,918)
-
26,050

11,854		 545,970
118,264
26,050
26,050
633,295 70,000
(13,014)		 690,281
Prior year General fund Pension Trust
Defcit Fund		 Pension
Liability
Reserve Fund		 2020
£ £ £ £
Balances at 1 January 2020
Net income before transfers
Actuarial gains/(losses) on defned
beneft pension schemes
Transfer from/(to) General Fund
Balance at 31 December 2020		 570,370
(12,475)
-
(21,008)		 50,000
-
-
10,000		 (61,050)
-
(876)
11,008		 559,320
(12,475)
(876)
-
536,887 60,000 (50,918) 545,969

Pension Trust Deficit Reduction Fund

General Fund

Pension Liability Reserve Fund

To reflect the very low probability that the liability is crystallised in one go a corresponding negative designated reserve fund has been created to show the true level of general funds.

The general fund is the value of unrestricted funds after future pension liabilities have been accounted for and comprises fixed assets, current assets and liabilities.

In 2015 trustees decided to create a designated fund to build a reserve fund to cover ACF’s Pension Trust liability. It is the trustees’ current intention to designate £10,000 into this fund per year. The first transfer was made in 2015 and £10,000pa has been transferred every year from 2015-2021. This policy will continue until the fund is sufficient to cover ACF’s share of the liability. The amount transferred will be reviewed every few years.

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Current year Fixed Assets & Current Creditors Pension Deficit Net Assets
Investments Assets Liability 31 December 2021
£ £ £ £
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Current year Fixed Assets &
Investments
Current
Assets
Creditors
Pension Defcit
Liability
Net Assets
31 December 2021
£
£
£
£		 Fixed Assets &
Investments
Current
Assets
Creditors
Pension Defcit
Liability
Net Assets
31 December 2021
£
£
£
£		 Fixed Assets &
Investments
Current
Assets
Creditors
Pension Defcit
Liability
Net Assets
31 December 2021
£
£
£
£		 Fixed Assets &
Investments
Current
Assets
Creditors
Pension Defcit
Liability
Net Assets
31 December 2021
£
£
£
£		 Fixed Assets &
Investments
Current
Assets
Creditors
Pension Defcit
Liability
Net Assets
31 December 2021
£
£
£
£
Restricted Funds
Project Funds
Unrestricted Funds
Designated Funds
Pension Trust defcit reduction fund
Pension Liability reserve
General Fund*
Total unrestricted funds
Total funds		 -
31,882
-
-
31,882
-
70,000
-
-
70,000
-
-
-
(13,014)
(13,014)
146,182
612,780
(125,667)
-
633,295
146,182
682,780
(125,667)
(13,014)
690,281
146,182
714,662		 125,667 (13,014) 722,163
*After fxed assets have been accounted for, The Association’s general fund is £487,113 which forms The Association’s free reserves. *After fxed assets have been accounted for, The Association’s general fund is £487,113 which forms The Association’s free reserves. *After fxed assets have been accounted for, The Association’s general fund is £487,113 which forms The Association’s free reserves.
This is calculated as follows:
Total general fund 633,295
Less fxed assets & investments 146,182
487,113 (£438,311 in 2020)

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Prior year Fixed Assets & Current Creditors Pension Deficit Net Assets
Investments Assets Liability 31 December 2020
£ £ £ £
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Prior year Fixed Assets &
Investments
£
Current
Assets
Creditors
£
Pension Defcit
Liability
£		 Net Assets
31 December 2020
£
Restricted Funds
Project Funds
Unrestricted Funds
Designated Funds
Pension Trust defcit reduction fund
Pension Liability reserve
General Fund
Total unrestricted funds
Total funds		 -
-
-
88,577
27,761
60,000
-

729,383
-

-
-

(281,072)		 -
-
(50,918)
-		 27,761
60,000
(50,918)
536,888
88,577
789,383
(281,072)		 (50,918) 545,970
88,577
817,144
(281,072)		 (50,918) 573,731

48[|] Annual report 2021

Annual report 2021[|] 49

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2021

14. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

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2021 2020
£ £
Net income for the reporting period as per the statement of financial activities 122,385 15,287
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Depreciation charges
Interest income
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Non-cash movement on defned beneft pension liability
Net cash provided by operating activities		 54,661
43,796
(173)
(1,339)
57,729
(21,942)
(155,405)
11,753
(11,854)
(11,008)
67,340
36,548
67,340

15. ANALYSIS OF CHANGES IN NET CASH

At 1 January
2021		 Cash fows At 31 December
2021
£ £ £
Cash in hand
Notice deposits (less than three months)
Total cash and cash equivalents		 275,014
48,327
323,341
394,253
(93,080)
301,173
669,267
(44,752)
624,521

16. OPERATING LEASE COMMITMENTS GROUP AND CHARITY

At 31 December the charity had the following commitments payable relating to non-cancellable leases:

2021 2021 2020 2020
£ £ £ £
Land and Buildings Offce Equipment Land and Buildings Offce Equipment
Within one year
Between 2 and 5 years
5 years +		 76,800
-
-
754
-
-
76,800
-
-		 3,016
-
-
76,800
754
76,800		 3,016

All amounts above include VAT, a portion of which will be recoverable under partial recovery. Operating lease rental payments during the year were £103,540 (2020: £107,136)

17. RELATED PARTY TRANSACTIONS

The charity has a wholly owned subsidiary, ACF Conferences and Seminars Limited. For the year ended 31 December 2021 the subsidiary declared a gift aid distribution of £122,935 to the charity (2020: £103,689).

Bidirectional recharges have also been made between the charity and the trading subsidiary relating to trading activities (the trading subsidiary was charged £73,142 [2020: £92,439] by the charity and the charity was charged £745 [2020: £1,182] by the trading subsidiary).

At the year end the subsidiary owed the charity a total of £141,677 (2020: £210,826) inclusive of gift aid, and the charity owed the trading subsidiary £745 (2020: £1,182).

There were no other related party transactions requiring disclosure in the year or in the prior year.

50[|] Annual report 2021

Annual report 2021[|] 51

Association of Charitable Foundations is a company limited by guarantee, registered in England and Wales.

Registered Company No. 5190466. Registered Office: 28 Commercial Street, London, E1 6LS. Registered Charity Number: 1105412.

acf.org.uk acf@acf.org.uk