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← Association Of Charitable Foundations

2023-12-31-accounts

Year ended

31 December 2023

ASSOCIATION OF CHARITABLE FOUNDATIONS

Trustees’ Annual Report and Financial Statements

FOR MORE INFORMATION PLEASE VISIT OUR WEBSITE: WWW.ACF.ORG.UK

CONTENTS

03 CHAIR AND CHIEF EXECUTIVE’S INTRODUCTION

12 ADVANCE DIVERSITY, EQUITY AND INCLUSION FOR OUR SECTOR AND FOR ACF

10 SUPPORT FOUNDATIONS TO ASPIRE TO AND ACHIEVE EXCELLENT PRACTICE

15 SUSTAIN A LANDSCAPE WHERE FOUNDATIONS CAN CONTINUE TO THRIVE

17 CRITICAL SUCCESS FACTORS

20 FINANCIAL COMMENTARY

25 GOVERNANCE

28 ADVISERS AND BANKERS

29 OUR THANKS

31 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

34 FINANCIAL STATEMENTS

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 2

CHAIR AND CHIEF EXECUTIVE’S INTRODUCTION OUR MEMBERS AND OUR SECTOR FACED ACUTE SOCIAL AND ECONOMIC CHALLENGES IN 2023.

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JESSICA BROWN CAROL MACK OBE
Chair Chief executive
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The cost of living crisis affected every charity, whatever their size, location or cause. The impact of the climate crisis and inequalities in our society, and around the world became increasingly evident.

Foundations have a vital role to play in identifying and responding to need and using their resources wisely to make the biggest difference possible. Throughout 2023, we heard stories of inspiration and fortitude from foundation staff and trustees across the country as they piloted a new course for their grant-making or investments in the face of these challenges, despite rising demand and escalating operating costs. We saw foundation leaders caring deeply about meeting these challenges with compassion, transparency and fairness.

All of us at the Association of Charitable Foundations (ACF) are incredibly proud of the work that our members are doing – they are at the heart of all that we do. We are so grateful that they continue to support our work, investing time in building this remarkable community where foundation staff and trustees can connect, learn and share together.

Foundations embody the belief that things can be better.

At their best they are a transparent, intentional and efficient way of transforming private wealth into public benefit.

As we look back at 2023, we carry forward the lessons learned, challenges overcome and successes celebrated.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 3

WE ARE DELIGHTED TO SHARE SOME OF OUR MILESTONES IN 2023:

A NEW MISSION

We began the year by launching a new five-year strategy (more on page 5) . Our vision is for diverse, vibrant and effective foundations, working together for social good. Our mission is to strengthen trusts and foundations to rise to the challenges of our time: the cost of living crisis and rising inequalities, climate change and ensuring our sector and what foundations fund and what foundations fund is diverse, equitable and inclusive.

A STRONGER VOICE

A COMPELLING MEMBER OFFER

We end the year with a thriving community of 450 members. We know how important it is that we continue to share stories of excellent practice from across our broad membership to support and inspire. This year we published the first set in a series of case studies which demonstrate how foundations of all shapes and sizes are putting the Stronger Foundations principles into practice. Our Oficial Partners – Ruffer, Mercer, CCLA and Cazenove – elevate our offer by giving members access to knowledge, skills and information on foundation investments.

CULTIVATING CONNECTIONS

Our member-led networks ,

including a new network for family foundations and those exploring economic justice, strengthened connections between peers across our sector. This was only possible because of the generosity of our network convenors . Our Funders Collaborative Hub now hosts more than 150 collaborations – with opportunities to connect on a huge variety of issues.

Foundations, like other institutions, have been under greater scrutiny, in a context where public opinion is increasingly polarised. In 2023 we hosted a workshop for members on navigating the media spotlight. Our Members’ Policy Forum has enabled policymakers in England, Wales, Scotland and Northern Ireland to hear about priorities, challenges and insights from the foundation perspective. Throughout last year we have shared evidence and stories that demonstrate the positive impact of the work of foundations at every opportunity – at conferences, with government and with the media.

A CLEARER REGULATORY LANDSCAPE

This Summer we welcomed the publication of the Charity Commission for England and Wales’ new guidance for trustees (CC14) which provided some much needed clarity on investing charity money. At every opportunity we have promoted the crucial role of trusts and foundations to a wide range of stakeholders.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 4

TRUSTEES’ ANNUAL REPORT 2023 WE ARE PLEASED TO PRESENT OUR 2023 ANNUAL REPORT AND ACCOUNTS.

The challenges members and other stakeholders raised during our strategy consultation in 2022 continued to resonate deeply in 2023:

This demonstrates how we as trustees have stewarded the charity and its resources in delivering ACF’s purpose of strengthening foundations to rise to the challenges of our time.

ACF is the leading membership association for foundations and independent grant-makers in the UK.

We have over 450 members who together hold one third of the assets of the charity sector and make over 40 per cent of the grants given by UK foundations. Together they cover the full range of foundations, from small to large and operating in many different fields of grant-making, including social change, the environment, research, education, across the UK and overseas. Our work builds common understanding of the role of foundations, including with government, and enables our members to be more than the sum of their parts, collaborate and develop their practice, navigating complexity in the challenges they face.

2023 was a significant year for us as we dived into the first year of our new strategy. Our strategy is focused on our role as a membership association and how we can effect positive change with and for our members.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 5

WE ARE PART OF A THRIVING CHARITABLE FUNDING ECOSYSTEM IN THE UK AND INTERNATIONALLY, THAT SUPPORTS INNOVATION AND GOOD PRACTICE IN FOUNDATIONS AND IN PHILANTHROPY MORE BROADLY. WE RECOGNISE THE UNIQUE ROLE WE HAVE AS A MEMBERSHIP ASSOCIATION IN SUPPORTING MEMBERS TO COLLECTIVELY RISE TO THESE CHALLENGES:

THE COST OF LIVING CRISIS AND RISING INEQUALITIES

In 2023, the cost of living crisis affected every charity, whatever their size, location or cause. Foundations have had a vital role to play in supporting charities which are facing falling donations from a hard-pressed public, rising costs and unprecedented demand for their services.

THE COST OF LIVING CRISIS IS AFFECTING US ALL. PEOPLE ARE WORRIED ABOUT PUTTING FOOD ON THE TABLE, AFFORDING THE TRAIN TO WORK, AND PAYING FOR GAS AND ELECTRICITY. CHARITIES ARE FINDING THEMSELVES OVERWHELMED WITH ENQUIRIES, WHILE STAFF AND UTILITY COSTS HAVE SOARED AND VOLUNTEERS ARE STRUGGLING TO COMMIT THE TIME THEY USED TO BE ABLE TO GIVE.

Foundations felt these pressures too, as well as concern about their falling income and asset values. We worked with other sector infrastructure bodies through our membership of the Civil Society Group to highlight the impact of rising costs on the charity sector and were delighted to see the Chancellor’s announcement in the 2023 Spring Budget pledging £100m support for charities that need it most.

We saw foundations working together through the Funders Collaborative Hub to coordinate efforts

National Lottery Community Fund, 2023

including exploring collaborative funding for warm spaces and working with communities to co-design local solutions to financial insecurity .

CLIMATE CHANGE

Speaking at the launch of the Synthesis Report of the Intergovernmental Panel on Climate Change, the UN SecretaryGeneral, António Gutterres highlighted the intersectional nature of climate change – it is a health issue, a gender equality issue, a racial equality issues, a cultural issue, an economic issue, a human rights issue and more.

UK charitable foundations, with their ability to take a long-term approach alongside taking risks and supporting emerging ideas, are well placed to support action to tackle the climate crisis.

It is four years since the launch of the Funder Commitment on Climate Change , a framework for foundations to identify actions and make progress to play their part in tackling the causes and impact of climate change, whatever their mission. We are delighted to have reached the milestone of 120 signatories of the Commitment in 2023.

Over 630 foundations have signed national commitments on climate change in Canada, France, Italy, Poland, Spain and the UK, or the International Philanthropy Commitment on Climate Change, hosted by WINGS , for foundations where a national commitment does not yet exist. These initiatives were all inspired by the UK commitment.

IN SHORT, OUR WORLD NEEDS CLIMATE ACTION ON ALL FRONTS – EVERYTHING, EVERYWHERE, ALL AT ONCE.

António Gutterres , UN Secretary-General, 20 March 2023

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 6

DIVERSITY, EQUITY, INCLUSION

Many groups face barriers to participate in and are under-represented at ACF, in the foundation sector and at ACF’s events and networks. This includes but is not limited to communities experiencing racial inequity, disabled people, people from working class backgrounds and people from the LGBTQ+ community. These barriers are compounded when these identities intersect.

As a membership association we have a responsibility to represent diversity in our practice and across our programme of work and we have the opportunity to share our platforms with others, exposing ourselves and our members to different ideas, voices and approaches.

We are pleased to have a diverse board and our trustees have spent time together in 2023 to build inclusive approaches to our governance and find ways of working together differently so this becomes part of a long-lasting inclusive culture.

We continue to apply a diversity, equity and inclusion lens to our staff recruitment policies and in 2023 we welcomed several new members of the team. Our team brings with them a diversity of perspectives, skills and experiences, which in turn help ACF deliver richer creativity, better problem solving and greater impact for ourselves and our members.

Our journey has begun, but we still have a long way to go.

GRANT-MAKING AND INVESTMENT PRACTICE

INCLUSIVE BOARD CULTURES ARE THOSE WHERE MEMBERS’ PERSPECTIVES ARE REGULARLY ELICITED AND VALUED. FOR BOARDS TO BE EFFECTIVE, THEY NEED TO FOSTER AN EGALITARIAN AND INCLUSIVE CULTURE — ONE THAT ELEVATES DIFFERENT VOICES, VALUES CONTRASTING PERSPECTIVES, AND HOLDS SPACE FOR UNCOMFORTABLE CONVERSATIONS.

Now more than ever, foundations have a vital role to play in identifying and responding to need and using all their resources wisely to make the biggest difference possible. Foundation leaders continue to meet these challenges set out above with compassion, transparency and fairness and many ACF members have been piloting a new course for their grant-making or investments.

The overwhelming majority of our members work with – and fund – others in order to achieve their mission.

Funding practices really matter. For many of our closest stakeholders, funding practice is the issue that impacts on them the most and which shapes their view of foundations. In early 2023, we held an event for members to hear about the impact of grant reporting processes on grantees and the steps foundations are taking to reduce this burden.

For many foundations, an endowment is their ‘super-power’. Financial independence and a long time horizon provide unique opportunities to work towards achieving the foundation’s long-term impact, to effect change, and to withstand financial turbulence such as that we have experienced in recent times.

Anj Handa , Charity Board Leadership Programme Director, Getting on Board, October 2023

More foundations are more closely integrating their investment with their mission. With clearer guidance from the Charity Commission in England and Wales in 2023, our investment seminars have focussed on building foundation trustee knowledge and capability to contribute towards shaping both mission and money, and to consider them as a whole.

AS FUNDERS, PERHAPS START BY ASSUMING YOUR FUNDING PRACTICES COULD BE IMPROVED AND WORK OUT WHAT EXCELLENCE IN FUNDING LOOKS LIKE. CHALLENGE YOUR TRADITIONAL STRUCTURES, PROCESSES AND HABITS. FIND OUT WHAT OTHER FUNDERS YOU ADMIRE DO, OR PERHAPS ASK THOSE YOU FUND ABOUT WHAT THEY CONSIDER TO BE HELPFUL GRANT-MAKING.

Debra Allcock Tyler, chief executive, Directory of Social Change, May 2023

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 7

ABOUT ACF

ACF IS THE LEADING MEMBERSHIP ASSOCIATION FOR FOUNDATIONS AND INDEPENDENT GRANT-MAKERS IN THE UK.

VISION

Diverse, vibrant, and effective foundations, working together for social good

PURPOSE

We strengthen trusts and foundations so they can rise to the challenges of our times

VALUES

We care, We are open, We are evidence-based, We are ambitious

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 8

OBJECTIVES

SUPPORT FOUNDATIONS TO ASPIRE TO AND ACHIEVE EXCELLENT PRACTICE

ADVANCE DIVERSITY, EQUITY AND INCLUSION FOR OUR SECTOR AND FOR ACF

STRENGTHEN CONNECTIONS ACROSS AND BEYOND THE SECTOR

SUSTAIN A LANDSCAPE WHERE FOUNDATIONS CAN CONTINUE TO THRIVE

CRITICAL SUCCESS FACTORS TO ACHIEVE THESE GOALS:

ACF is both a registered charity, registration number 1105412, and a company limited by guarantee incorporated on 27 July 2004 and registered in England and Wales, registration number 5190466.

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 ACF and ACF Conferences and Seminars Limited. The narrative in this report covers the operations of the charity and the subsidiary company.

ACF’s governing document is a Memorandum and Articles of Association and our registered office is Fourth Floor, 28 Commercial Street, London E1 6LS.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 9

SUPPORT FOUNDATIONS

TO ASPIRE TO AND ACHIEVE EXCELLENT PRACTICE

WE WANT MEMBERS TO FEEL SUPPORTED AS THEIR FOUNDATION ASPIRES TO AND DELIVERS EXCELLENT PRACTICE.

STRONGER FOUNDATIONS CASE STUDIES

THIS MEANS IN 2023 WE WERE WORKING TO:

ACF’s Stronger Foundations reports help grant-making charitable foundations identify and pursue ambitious practice, with 40 pillars of stronger foundation practice set out under six thematic areas.

In 2023 we developed eight case studies to provide examples of how and when members are putting the pillars of Stronger Foundations into practice. These case studies provide examples of ambitious practice in grant-making as well as in transparency and engagement. We hope that they inspire foundations to consider what stronger practice might look like in their organisation.

665

delegates attended our learning events in 2023

44%

of our members attended at least one learning event

We are grateful to all members who have shared their practice with us.

54 TIMES

our Stronger Foundations selfassessment tool was completed

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 10

FUNDER COMMITMENT ON CLIMATE CHANGE

The Funder Commitment on Climate Change (FCCC) was launched in 2019 and is a holistic, high-level framework supporting funders to play their part in tackling the causes and impacts of climate change, whatever their mission. In 2023 we reached the milestone of 120 signatories and released a year 3 report setting out the actions taken by signatories across six areas.

The launch of the Funder Commitment on Climate Change year 3 report was our highest attended event in 2023, with 110 registrations.

Additional financial support for the Funder Commitment on Climate Change is provided by John Ellerman Foundation.

40 foundations sent delegates to our Investment Seminars

56 TIMES our grant reporting briefing was downloaded

850 TIMES Stronger Foundations case studies were accessed

IMPACT INVESTING IN THE MAIN ENDOWMENT

In partnership with the Impact Investing Institute , the Charities Responsible Investment Network and Big Society Capital we developed a three-part learning series which ran for the first time in Spring 2023 and was attended by 18 foundations.

A growing number of foundations want to explore impactdriven investing within their main endowment. This approach seeks to balance the positive impact of the investment with a market-rate financial return.

Additional financial support to develop the Impact Investing in the Main Endowment series was provided by Barrow Cadbury Trust, City Bridge Trust, Esmée Fairbairn Foundation, Golden Bottle Trust, Guy’s & St Thomas’ Foundation, Joseph Rowntree Foundation, The Clothworkers’ Foundation, and Treebeard Trust.

PLANS FOR 2024:

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ADVANCE DIVERSITY, EQUITY AND INCLUSION FOR OUR SECTOR AND FOR ACF

WE WANT TO PLAY AN ACTIVE ROLE IN MAKING PROGRESS ON DIVERSITY, EQUITY AND INCLUSION.

CHAIRS’ EVENT ON INCLUSION

THIS MEANS IN 2023 WE WERE STRIVING TO:

In October 2023, 35 chairs of ACF members came together for our annual evening for chairs of trusts and foundations. This year’s theme was the importance of inclusive boards. We were delighted that Anj Handa of Getting on Board facilitated the session, joined by a panel of foundation trustees who shared their insights. We developed a briefing for members to support them in taking practical steps to foster an inclusive board culture.

PLANS FOR 2024

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 12

STRENGTHEN CONNECTIONS

ACROSS AND BEYOND THE SECTOR

WE ARE AT THE HEART OF A REMARKABLE COMMUNITY OF FOUNDATIONS.

WE WANT TO BROADEN AND DEEPEN CONNECTION BETWEEN FOUNDATIONS SO IN 2023 WE ENDEAVOURED TO:

BEING A MEMBER OF ACF FOR MANY YEARS HAS ENABLED US TO PARTICIPATE IN TRAINING, ATTEND NUMEROUS EVENTS AND NETWORK WITH PEERS, ALL OF WHICH HAS BEEN EXTREMELY VALUABLE IN GENERATING A RICH AMOUNT OF LEARNING AND COLLABORATION. WE HAVE PARTICULARLY BENEFITTED FROM THE MEMBERSHIP OF ACF’S SOCIAL IMPACT INVESTORS GROUP (SIIG) AS OUR SOCIAL INVESTMENT ACTIVITY HAS INCREASED

Luke Kavanagh , Trust for London

54%

of membership registered to attend at least one member-led network meeting in 2023

914

registrants attended 40 member-led network meetings

10 special interest group meetings

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 13

NETWORKS

Our community and member networks are valued by our members.

In 2023 we welcomed a new network – Family Foundations – increasing the number from 14 to 15. These networks are led by a team of volunteer convenors from within ACF membership. Six convenors came to the end of their terms during the year and we are grateful to new convenors for stepping forward.

ACF networks typically focus on areas of funding, type of organisation or elements of grant-making practice. These networks primarily meet online at least twice a year. Meetings usually last two hours and are free for our members to attend.

ACF also convened and administered three special interest networks with their own steering groups:

2023 NETWORKS AT A GLANCE

Grant-making themes

Aspects of being a funder

Foundation type

FUNDERS COLLABORATIVE HUB

The Hub catalyses collaboration by funders and helps them work towards stronger practice, so that they can collectively rise to the challenges of our times. The Hub website provides:

In 2023, 160 opportunities to collaborate were hosted on the Funders Collaborative Hub website. These related to more than 40 issues and included work in every UK nation and region, as well as UK-wide and international opportunities. Together these were viewed 36,666 times, a 42% year-on-year increase .

Additional financial support for the Funders Collaborative Hub is provided by Lloyds Bank Foundation for England and Wales and Esmée Fairbairn Foundation.

PLANS FOR 2024

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 14

SUSTAIN A LANDSCAPE WHERE FOUNDATIONS CAN CONTINUE TO THRIVE

DURING A TUMULTUOUS TIME, WE WANT TO SUSTAIN A STRONG ENVIRONMENT FOR TRUSTS AND FOUNDATIONS.

KEY SUCCESSES

WE WORKED TO: →Represent foundations and amplify their voices to influence policy and ensure a supportive legal and regulatory framework in the UK

→Share evidence and stories that demonstrate the positive impact of foundations

→Support the growth of the sector, including by advocating for the foundation model of philanthropy and the evolution of the sector

REPRESENTED FOUNDATIONS POSITIVELY IN THE MEDIA

DRAWING ON MEMBER VIEWS

CONTINUED EFFECTIVE ENGAGEMENT

and at conferences, meetings with key external stakeholders and sector events

influenced the updated CC14 guidance and fed into other guidance including the UK Government’s dormant assets consultation and the Charity Commission’s social media guidance for charities in England and Wales

with the UK Government and the official opposition in advance of the General Election

COLLABORATED EFFECTIVELY with the Civil Society Group and with key sector organisations

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HELD A
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BESPOKE EVENT

SERVED AS A KEY MEMBER OF THE DEPARTMENT FOR CULTURE, MEDIA AND SPORT’S ADVISORY BOARD

for distribution of £100 million fund for supporting frontline charities

20 MENTIONS OF ACF

in sector press, some in the mainstream media

for members on navigating media and online critique

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 15

NEW GUIDANCE ON INVESTMENTS

FOUNDATION GIVING TRENDS

Our Foundation Giving Trends (FGT) research provides a single, authoritative and reliable annual measure of the extra funding that private philanthropy contributes to public good through foundations, building transparency and an up-to-date evidence platform for practitioners, policymakers and researchers.

We have published the report annually since 2014 and the 2022 report is the 14th year of analysis of family foundations and the 9th year of analysis of the Top 300.

From 2024 we are shifting our focus to supporting 360Giving in the development of a new, interactive data product called UK Grantmaking. This decision stems from valuable feedback received from our members about their data needs.

ACF will be producing a narrative report to accompany UK Grantmaking. This report will aim to provide comprehensive context and insightful commentary from the perspective of UK foundations, enriching the understanding of the data provided.

Additional financial support for our Foundation Giving Trends research and analysis, and for our forthcoming report, is provided by Pears Family Charitable Foundation.

MEMBERS’ POLICY FORUM

In Summer 2023, we welcomed the publication of the Charity Commission for England and Wales’ new guidance for trustees (CC14) that provided some much needed clarity on investing charity money. Based on member views and our pillars of Stronger Foundations practice, we engaged with the Charity Commission and fed into the redesign of the guidance. We were pleased to see a number of key changes introduced, including clearer, shorter and simpler guidance. We also welcome the clarification brought about by the Butler-Sloss judgment reflected in the guidance. In particular, the updated guidance sets out the need for trustees to undertake a balancing exercise when considering potential conflicts with charitable purposes against the risk of financial detriment.

Our Members’ Policy Forum is an established initiative that aims to increase opportunities for all our members to engage directly with ACF’s policy work, raise issues of interest and concern, and regularly engage with policy-makers and key external stakeholders. All ACF members can sign up to the Members’ Policy Forum mailing list to receive monthly e-bulletins with the latest policy news.

In 2023, 26% of ACF members attended a Members’ Policy Forum event. We had 212 registrants for 7 events which included opportunities for members to engage directly with policymakers, charity regulators and other key stakeholders.

Additional financial support for our Members’ Policy Forum is provided by Paul Hamlyn Foundation.

PLANS FOR 2024

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 16

CRITICAL SUCCESS FACTORS

WE HAVE AN AMBITIOUS GOAL OF ACHIEVING NET GROWTH OF 100 MEMBERS BY THE END OF 2027.

A COMPELLING MEMBER OFFER

Being a member of ACF offers connection, collaboration and learning from peers and experts. We build a member community through our networks, run a wideranging programme of events and provide research and resources for trustees and professionals in foundations and grant-making charities across the UK.

A COMPELLING MEMBER OFFER MEANS:

More than 450 organisations are proud to be part of the ACF community. Our membership is inclusive and welcomes family trusts, corporate foundations, livery companies, broadcasting appeals and other grant-makers.

Membership keeps foundations up to date and connected with the foundation sector through events and networking, information and guidance and policy and advocacy. ACF members can take advantage of:

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 17

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MEMBERS BY REGION
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19 Scotland
2 Overseas
10 North East
16 North West
4 Northern Ireland
19 Yorkshire & Humber
10 East Midlands
22 West Midlands
3 Wales
19 East
233 London
31 South West
63 South East
7 South Central
1 Channel Islands (0.5%)
Data correct as of October 2023
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TOTAL OF MEMBERS BY FOUNDATION TYPE 458

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 18

PLANS FOR 2024

564 downloads of our salary and benefits research report

3,000 subscribers to our Funders’ News monthly e-newsletter

90,000 unique visits to our website

458

members at the end of 2023. ACF’s Official Partner Programme allows our members to benefit from a knowledge-led commercial partnership, enhancing our ability to support members in being ambitious and effective in the use of all their resources

92% of our members in 2022 renewed in 2023

40

new members joined our community

OTHER CRITICAL SUCCESS FACTORS

ACF needs to be financially stable and have effective systems and processes to deliver on its mission.

We also want to be a great place to work, where colleagues are trusted, celebrated and belong. In 2023 we recruited three positions, including two director-level roles. We also introduced a winter flu vaccine programme as part of our employee benefits. We renewed our three-year lease agreement for our office.

We need the digital skills and technology to deliver our strategy. In 2023 we replaced laptops for the majority of colleagues to improve productivity.

In our strategy, we outline other critical success factors including plans to:

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 19

FINANCIAL COMMENTARY

WE REMAIN EXTREMELY GRATEFUL FOR THE CONTINUED SUPPORT OF OUR MEMBERS, INCLUDING THOSE WHO PROVIDED ADDITIONAL GRANTS IN 2023 TO ENABLE ACF TO MAINTAIN PROGRESS ON KEY ACTIVITIES, SUCH AS THE FUNDERS COLLABORATIVE HUB AND FOUNDATION GIVING TRENDS RESEARCH.

£748,123. This reserves balance at the end of 2023 sits towards the top end of the target range based on 2024 expenditure, and leaves us in a secure position to carry out planned investment to deliver our strategy over the coming years.

of membership retention in 2023 and the stability generated by the continuation of the Official Partner Programme. We also saw unplanned underspends in year resulting from some vacancies in the staff team, and consequent constraints on capacity for activities. The audited financial position therefore shows an unrestricted surplus of £178,537 (£66,509 in 2022). The trustees have approved a budget for the rest of the strategy period which includes the investment of this surplus in new or deferred activities to support the implementation of the strategy. These activities are outlined under each of our strategic objectives, above.

The board has determined that the current level of reserves is sufficient to mitigate any future operating deficits driven by strategic investment, with the goal of balancing income and expenditure over five years. Income and expenditure forecasts for the strategy period are reviewed annually and in-year performance is monitored at each trustee meeting to ensure that any adverse impacts are managed proactively.

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.

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 total general fund at the end of 2023 was £849,120, of which £100,997 represents fixed assets, leaving free reserves of

INCOME TO SUPPORT OUR SERVICES TO MEMBERS

ACF’s principal sources of funding are membership subscriptions, commercial income from its Official Partner Programme, and fees and grants to assist in 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 2023 ACF received a number of restricted grants, further detailed in Note 5 to the financial statements. All investment income is in relation to interest earned on cash deposits. ACF does not have an investment policy, but sets a budget expectation each year for interest income raised from cash reserves. This is based on estimated levels of cash throughout the year and approximate interest rates.

Overall income in 2023 was slightly lower than in the prior year, due both to a smaller level of restricted grant income in the year, and to having no annual conference (which accordingly also reduced expenditure).

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 20

GROUP INCOME TRENDS 2019–2023

. Members subscriptions . Partnership income . Fees and grants . Conferences

. Partnership income . Earned income . Conferences . Networks and meetings

2,000,000

1,800,000

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1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0 2019 2020 2021 2022 2023
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Overall income in 2023 was slightly lower than in the prior year, due both to a smaller level of restricted grant income in the year, and to having no annual conference (which accordingly also reduced expenditure).

ACF’S APPROACH TO FUNDRAISING FROM THE PUBLIC

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 antibribery policies and these can be found on our website. We have received no fundraising related complaints.

REMUNERATION POLICY

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 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.

The current full-time equivalent salary differential between the highest and lowest paid staff member is 3.0 (2023: 3.1).

We track both gender and ethnicity pay gap data, but in line with government guidance for organisations of our

relatively small size, we do not (and are not required to) publish this data, in order to eliminate the risk of any individual staff members being identifiable. We are pleased to report however that our gender pay gap has closed further over the past 12 months, particularly as a result of now having more male employees at a range of levels, and more females employed in higher pay bands. This is the first year we have captured data on ethnicity pay gaps, so cannot yet report on trends for this.

BALANCE SHEET LIABILITIES

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 £3,797 (2022: £7,143). 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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 21

RISK MANAGEMENT

ACF actively manages the risks it faces.

Key risks are identified and prepared by management and reviewed quarterly by the Finance and Risk Committee and annually by the board. Key risks and mitigations are being actively managed as follows:

OPERATIONAL RISK

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Expected Risk Implications Mitigations Impact Likelihood
timeframe
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Q1-2 2024 ACF capacity and ACF may lack 1. 2024 workplan to include business as Medium Medium
capability building the resources to usual as well as project work to improve
adversely impacted meet member capacity planning and ability to spot
by loss of staf, skill expectations or pinch points.
gaps within the
team, inability to
fill positions, or
reduced wellbeing.		 stay abreast of
developments
in the sector,
losing relevance
and membership
numbers in the
medium term.		 2. Ensure that workplan is prioritised based
on impact, that resources are released
for priority elements and that directors
have flexibility to balance work output
to personal circumstances. Workplan
to continue to build teamwork across
the organisation.
3. Restructured leadership team to include
chief operating oficer designate role to
focus more on people and operations.

  1. Develop a plan for succession in all roles with delivery plans to be executed should the need arise.

  2. Increase staff engagement through consistent communication of priorities and progress against workplan elements, and discussion at one-to-one meetings.

  3. Ensure cross-organisational projects have plans, success criteria and milestones.

  4. Regular wellbeing surveys and report to the board.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 22

STRATEGIC RISKS

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Risks Implications Mitigations Impact Likelihood
----- End of picture text -----

Risks Risks Implications Mitigations Impact Likelihood
Volatile external environment,
upcoming general election,
or dificult economic situation
have a destabilising efect on
ACF – including our finances
(through member attrition,
impeded growth, or members’
reduced giving causing them
to move down fee bands), the
scope and shape of member
activities, or on staf wellbeing
and subsequent capacity
for activity.		 Members focus on their internal
activities and programmes,
leading to ACF programmes
(Stronger Foundations, climate
action, Funders collaborative
hub, events, networks) losing
relevance and/or showing lower
event attendance, ACF income
and member engagement.		 1.
Monitor member ‘pulse’ through each contact, documenting
on CRM and discussing at leadership and staf meetings.
2.
Discuss members’ attitudes to inflationary pressures through
surveys and ACF events.
3.
Analyse events and member network attendance and be
responsive to requests for new amended content.
4.
Monitor engagement of core policy and practice initiatives,
documenting member engagement trends over time.
5.
External afairs strategy is engaging ACF more broadly
across the political spectrum.		 Medium Low
Issue with use of website, CRM
or other key systems, either via
fault with infrastructure, or gaps
in team skills.		 System not fit for purpose, or
staf not well equipped to use it
adequately, could lead to benefits
not realised and compromise
key processes around member
services, reporting, and financial
processing, and a poor user
experience for both staf
and members.		 1.
Cross-organisational iMIS project underway to: support staf
in use and engagement with the CRM, review and enhance
processes, and to establish solid foundations from which to
look at and prioritise future developments.
2.
Ensure system remains robust via early reporting of any
issues and thorough testing of all fixes or new processes,
and ensuring all processes are thoroughly documented.
3.
Create stronger induction process to ensure all new and
returning staf understand the importance of the system
to ACF’s member delivery.
4.
Track staf engagement monthly as one of ACF’s KPIs.		 Medium Medium
Insuficient progress
with ACF’s own diversity,
equity and inclusion
and climate practices.		 The business and operational
benefits of a diverse team are well
known and while we have made
progress we need to do more.
Our DEI and climate change work
have the potential for reputational
damage if there is a dissonance
between ACF’s DEI practice,
our environmental actions, and
our public work on this topic.		 1.
Continue to execute the DEI policy through 2024, including
training and support.
2.
Continue inclusive recruitment practices to advance diverse
hires, tracking progress after each hire and modifying
processes based on learning.
3.
Environment policy adopted by board and progress reviewed
at all staf awayday.
4.
Creation of Chief Operating Oficer role to increase focus
on ACF’s HR practice to support inclusion.
TRUSTEES’		 Medium Low
ANNUAL REPORT A ND FINANCIAL STATEME

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 23

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Risks Implications Mitigations Impact Likelihood
----- End of picture text -----

Risks Implications Mitigations Impact Likelihood
Reputational damage to ACF
as a result of actions by ACF.		 Reputational and potential
financial risk to ACF if serious
compliance or other issue
internally occurs or is claimed.
Reputational risk to ACF if an
internal stakeholder is involved
in an issue on a personal
capacity and ACF is named as
an employer or an organisation
in media or lawsuits.
Reputational risk if ACF is seen
as having a political afiliation
through relationships formed
and policies we are signatories to.		 1.
Ensure preventative plans in place to avoid serious internal
issues, and ensure plan in place for a crisis response if it
were needed.
2.
Ensure that there are robust, clear and well-articulated policies
and learning programs in place to raise awareness of
internal stakeholders.
3.
Train relevant managers to respond quickly and efectively
if faced with a reputational scandal.
4.
Formalising policy on lines taken and media response
to allegations of party political bias.		 High Low
Reputational damage to ACF
as a result of (perception of)
actions by ACF member(s),
or wider foundation sector.		 This risk includes the potential for
negative portrayals by traditional
or social media suggesting that
foundations (ACF members or
not) are involved in activities
that are not aligned with public
expectation. These portrayals
could cast doubt on the integrity
of ACF or the foundation sector,
eroding ACF’s public reputation
and undermine members or
stakeholders confidence in ACF.		 1.
External afairs strategy in development, covering media and
PR goals, to be considered by board in 2024.
2.
Consider a proactive strategy of promoting the foundation
model to increase positive understanding by media/public.
3.
Consider cultivating positive relationships with media outlets
to ensure fair and balanced reporting.
4.
Continue to promote excellent practice to members.
5.
Actively support members to navigate potential media
interest and critique of their work.
6.
Maintain transparent communication with members
for awareness of actions of interest to the media.		 Medium Low

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 24

GOVERNANCE

BOARD OF TRUSTEES OF THE CHARITY

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Name Position Committee membership(s) during Appointed or Member
the year resigned date
----- End of picture text -----

Jessica Brown Chair Oficers, Nomination and Remuneration Trusthouse Charitable Foundation
Committee (NRC)
Síofra Healy Vice-chair Oficers, Finance and Risk Committee (FRC) Re-elected 13.06.23 Community Foundation
Northern Ireland*
David Renton Treasurer Oficers, FRC (chair) Resigned 13.06.23 Guy’s & St Thomas’ Foundation*
Moray Chair of Finance and N/A Appointed 21.02.24 Guy’s & St Thomas’ Foundation
McConnachie Risk Committee
Jamie Interim chair FRC (interim chair), Diversity Equity and Inclusion The Co-op Foundation
Ward-Smith MBE of Finance and (DEI) Committee, Premises working group
Risk Committee
Rupert Abbott Trustee DEI Committee GiveOut
Nick Acland Trustee NRC (chair), Premises working group (chair) Resigned 13.06.23 The Henry Smith Charity*
Sufina Ahmad MBE Trustee DEI Committee Re-elected 13.06.23 John Ellerman Foundation
Sarah Beniof Trustee DEI Committee, Premises working group, NRC Re-elected 13.06.23 Cripplegate Foundation
Rachel Campbell Trustee NRC The RS Macdonald Charitable Trust
Stephen Fenning Trustee DEI Committee Colyer Fergusson Charitable Trust

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 25

----- Start of picture text -----
Name Position Committee membership(s) during Appointed or Member
the year resigned date
----- End of picture text -----

Daniela Trustee NRC (chair) JAC Trust
Lloyd-Williams
Michelle Molyneux Trustee FRC, Premises working group The Worshipful Company
of Grocers’ Charity
Klara Skrivankova Trustee FRC Trust for London
Edward Walden Trustee DEI Committee (chair) Power to Change*
Emily Crawford Trustee NRC Appointed 13.06.23 Glasspool Charity Trust*

*Trustee was linked to this member at the time that they were appointed to the board

Three trustees served as directors of ACF Conferences and Seminars Ltd, our subsidiary trading company: David Renton (until 13 June 2023), Klara Skrivankova, and Moray McConnachie (from 13 May 2024)

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. If they subsequently leave the foundation sector, they may complete their term of office providing a majority of trustees so agree. In addition, the board may co-opt a further five people to the board who must be

connected with an ACF member. ACF’s members are nongovernmental organisations in the UK, whose functions or activities include grant-making 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 strategy, 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 grantmaking trusts and institutions for the public benefit by:

These objects are delivered through our strategic objectives, as outlined in this report. Our membership model is at the heart of what we do, delivering 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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 26

For example:

Under the Companies Act 2006, 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 2021. 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. The chief executive, chief operating officer-designate, 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).

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

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

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 governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

ACF CONFERENCES AND SEMINARS LIMITED

Directors

Gemma Instrall

Carol Mack OBE

Moray McConnachie

Klara Skrivankova

Company Secretary Natasha Kousseff

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 27

ADVISERS AND BANKERS

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Bankers Solicitors Auditors
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Bankers Solicitors Auditors
Cater Allen Private Bank
2 Triton Square
Regent’s Place
London, NW1 3AN		 Stone King
Boundary House
91 Charterhouse Street
London, EC1M 6HR		 Moore Kingston Smith
9 Appold Street
London, EC2A 2AP
Unity Trust Bank
Four Brindley Place
Birmingham, B1 2JB		 Russell-Cooke
2 Putney Hill
London, SW15 6AB
CCLA Investment
Management Limited
1 Angel Lane
London, EC4R 3AB

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:

Jessica Brown, Moray McConnachie, Chair Chair of finance and risk committee Date: 15 May 2024 Date: 15 May 2024

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 28

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:

FOR ADDITIONAL FINANCIAL SUPPORT FOR:

FOR SERVING ON THE FIRM STEERING GROUP:

ACF’S OFFICIAL PARTNERS

→Cazenove

→CCLA

→Ruffer

Foundation Giving Trends – Pears Foundation

Members’ Policy Forum – Paul Hamlyn Foundation

Funders Collaborative Hub – Esmée Fairbairn Foundation, Lloyds Bank Foundation for England & Wales

Funder Commitment on Climate Change – John Ellerman Foundation

Catalytic Capital report – Access – The Foundation for Social Investment, Big Society Capital

For additional core support of ACF’s activities:

Impact Investing in the Main Endowment – Barrow Cadbury Trust, City Bridge Trust, Esmée Fairbairn Foundation, Golden Bottle Trust, Guy’s & St Thomas’ Foundation, Joseph Rowntree Foundation, The Clothworkers’ Foundation, and Treebeard Trust

Development of a toolkit to help foundations explore the origins of their wealth – Barrow Cadbury Trust

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 29

FOR PARTICIPATING IN THE STEERING GROUP OF THE SOCIAL IMPACT INVESTORS GROUP:

FOR SERVING ON THE HUB STEERING GROUP:

FOR CONVENING NETWORKS

Our thanks to members who have generously given their time to convene our networks

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 30

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

OPINION

We have audited the financial statements of Association of Charitable Foundations (the ’parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023 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).

In our opinion the financial statements:

BASIS FOR OPINION

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

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

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.

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.

We have nothing to report in this regard.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 31

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the 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 27 , 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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 32

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 noncompliance 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.

Date: 15 May 2024

…………………………….………………………………

Luke Holt (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 9 Appold Street London EC2A 2AP

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

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 33

----- Start of picture text -----
2023 2022
Unrestricted Restricted Total Total
Note £ £ £ £
----- End of picture text -----

Income from:
Charitable activities:
Members’ subscriptions 1,004,000 - 1,004,000 927,923
Network subscriptions 84,566 - 84,566 68,927
Conferences and meetings 28,853 - 28,853 109,628
Fees andgrants
5		 46,253 104,461 150,714 258,811
Earned income 8,000 - 8,000 -
Other tradingactivities
2		 200,000 - 200,000 200,000
Investment income 33,484 - 33,484 6,223
Other income
Total income		 25,591 - 25,591 33,371
1,430,747 104,461 1,535,208 1,604,883
Expenditure on:
Charitable activities:
Members’ services
4
Conferences and meetings
4
Project expenditure
4, 5
Total expenditure
Net income/(expenditure)
Actuarial gains/(losses)
on defined benefit
pension schemes
12, 13a
Net movement in funds
13
Reconciliation of funds:
Total funds brought forward
13
Total funds carried forward
13		 1,237,251
14,965		 -
-		 1,237,251
14,965		 1,244,512
85,315
- 206,611 206,611 124,955
1,252,216 206,611 1,458,827 1,454,782
178,531
6
178,537
756,788		 (102,150)
-
(102,150)
115,738		 76,381
6
76,387
872,526		 150,101
264
150,365
722,161
935,325 13,588 948,913 872,526

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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 34

Association of Charitable Foundations Group balance sheet At 31 December 2023

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 £76,387 (2022: £150,365) before transfers between funds.

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

The attached notes form part of the financial statements.

Approved by the trustees and authorised for use on 15 May 2024 and signed on their behalf by:

…………………………………..……… Jessica Brown (Chair)

…………………………….…………………

Moray McConnachie (Chair of Finance and Risk Committee)

Company registration no. 5190466

----- Start of picture text -----
2023 2023 2022 2022
Group Charity Group Charity
Note £ £ £ £
----- End of picture text -----

Fixed assets:
Tangible and intangible assets
7
Investments
8
Current assets:
Debtors
9
Cash at bank and in hand
Short term deposits
Liabilities:
Creditors: amounts falling due within
one year
10
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
10a
Net assets excluding pension liability
Defined benefit pension scheme liability
12
Total net assets
Funds
Restricted funds
13
Unrestricted funds:
Designated funds
Pension Trust deficit reduction fund
13
Pension liability reserve
13
General fund
13
Total unrestricted funds
Total funds		 99,386
2
99,388
253,408
127,019
500,713
881,140
(82,859)
798,281
897,669
(18,000)
879,669
(7,143)
872,526
115,738
80,000
(7,143)
683,931
756,788
872,526
100,997
-		 100,997
2		 99,386
-		 99,386
2
100,997
128,276
334,463
531,469		 100,999
332,227
125,476
531,469		 99,386
38,485
344,333
500,713		 99,388
253,408
127,019
500,713
994,208
(124,495)		 989,172
(119,461)		 883,531
(85,248)		 881,140
(82,859)
869,713 869,711 798,283 798,281
970,710
(18,000)		 970,710
(18,000)		 897,669
(18,000)		 897,669
(18,000)
952,710
(3,797)		 952,710
(3,797)		 879,669
(7,143)		 879,669
(7,143)
948,913 948,913 872,526 872,526
13,590 13,590 115,738 115,738
90,000
(3,797)
849,120		 90,000
(3,797)
849,120		 80,000
(7,143)
683,931		 80,000
(7,143)
683,931
935,323
948,913		 935,323
948,913		 756,788
872,526		 756,788
872,526

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 35

Association of Charitable Foundations Group statement of cash flows For the year ended 31 December 2023

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2023 2023 2022 2022
Note £ £ £ £
----- End of picture text -----

£ £ £ £
Net cash provided by operating activities
14
Cash flows from investing activities:
Purchase of fixed assets
Purchase of investments
Interest income
Cash used in investing activities
Cash flows from financing activities
Change in cash and cash equivalents
in the year
15
Cash and cash equivalents at the beginning
of the year
Cash and cash equivalents at the end
of the year
15		 (31,056)
-
33,484		 18,455
2,428		 (8,285)
-
6,223		 222,595
(2,062)
20,883
-		 220,533
-
20,883
845,049		 220,533
624,516
865,932 845,049

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 36

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

1A. ACCOUNTING POLICIES

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

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).

Basis of preparation

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 £.

Public benefit entity

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

Critical estimates and areas of judgement

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.

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.

Going into 2023, trustees had 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 (the commencement of occupation) in the case of initial leasehold improvements work, or from the date of works, in the case of more recent leasehold developments. For software development or office equipment, depreciation is charged on a monthly basis from the month in which the asset is usable, with ongoing expenses such as licences and maintenance to be expensed when incurred.

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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 37

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

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.

Pension arrangements

Aviva

Effective from 1 January 2023, ACF participates in a defined contribution pension scheme, Aviva. The amounts charged to the SOFA for the defined contribution scheme represent the contributions payable in the period. In the prior year, comparative contributions were made to the previous pension scheme, Now:Pensions.

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.

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 38

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

1B. GROUP STATEMENT OF FINANCIAL ACTIVITIES 2022 INCLUDED FOR COMPARATIVE PURPOSES

----- Start of picture text -----
2022
Unrestricted Restricted Total
Note £ £ £
----- End of picture text -----

£ £ £
Income from:
Charitable activities:
Members’ subscriptions
Network subscriptions
Conferences and meetings
Fees and grants
5
Earned income
Other trading activities
2
Investment income
Other income
Total income
Expenditure on:
Charitable activities:
Members’ services
4
Conferences and meetings
4
Project expenditure
4, 5
Total expenditure
Net (expenditure)/income for the year
Actuarial gains/(losses) on defined benefit
pension schemes
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
13
Total funds carried forward
13		 927,923
68,927
109,628
50,000
-
200,000
6,223
33,371		 -
-
-
208,811
-
-
-
-		 927,923
68,927
109,628
258,811
-
200,000
6,223
33,371
1,396,072 208,811 1,604,883
1,244,512
85,315
-		 -
-
124,955		 1,244,512
85,315
124,955
1,329,827 124,955 1,454,782
66,245
264
66,509
690,279		 83,856
-
83,856
31,882		 150,101
264
150,365
722,161
756,788 115,738 872,526

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 39

Association of Charitable Foundations Notes to the Financial StatementsGroup balance sheet At 31 December 2023For the year ended 31 December 2023

2. ANALYSIS OF OTHER TRADING INCOME

Oficial Partnership Programme fees 2023
2022
£
£
200,000
200,000

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 40

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

3. ANALYSIS OF STAFF COSTS AND THE COST OF KEY MANAGEMENT PERSONNEL

Salaries and wages
Social security costs
Pension contributions
Pension Trust finance cost
Recruitment and training
Temporary staf, consultancy and all other staf costs
Unrestricted funds
Members’ services
Restricted funds
Funders’ Collaborative Hub
Members’ Policy Forum
Funder Commitment on Climate Change
Catalytic Capital
Impact investing
Foundation Giving Trends
Total
Staf costs were incurred in the following way:		 2022
£
635,855
66,488
65,192
107
44,298
125,739
937,679
2022
£
855,532
62,352
5,000
2,700
4,982
5,200
1,913
82,147
937,679
2023
£
Salaries and wages
Social security costs
Pension contributions
Pension Trust finance cost
Recruitment and training		 780,545
80,431
77,814
258
42,476
Temporary staf, consultancy and all other staf costs 64,560 125,739
1,046,084 937,679
2023
£
896,351
103,113
25,000
18,160
-
3,460
- 1,913
149,733 82,147
1,046,084 937,679

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 41

Association of Charitable Foundations Notes to the Financial StatementsGroup balance sheet At 31 December 2023For the year ended 31 December 2023

The highest paid member of staff was the chief executive, receiving a salary in the year of £98,600 (2022: £91,600) and a nonconsolidated performance-related payment of £5,000 (2022: £5,000). The total financial benefit (including employer pension) awarded to the chief executive was £113,460 (2022: £105,660). The total employee benefits including pension contributions of key management personnel (five people) were £365,426 (2022: £342,002, five people).

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

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2023 2022
----- End of picture text -----

£100,000 and £109,999 1 -
£90,000 and £99,999 - 1
£60,000 and £69,999 1 -

The average number of staff employed in the delivery of charitable activities in the year was 16.5 (2022: 16.0); FTE 14.2 (2022: 13.9).

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 42

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

4. RESOURCES EXPENDED – ANALYSIS OF TOTAL RESOURCES EXPENDED

4.1 Current year

Staf
Costs		 Indirect
Costs		 Governance
Costs		 2023
£ £ £ £
4.2 Prior year
Unrestricted Funds
Members’ services
Conferences and meetings
Total Unrestricted Resources Expended
Restricted Funds
Project Expenditure
Total Restricted Resources Expended
Total Resources Expended		 896,351
-		 314,476
14,426		 26,424
539		 1,237,251
14,965
896,351 328,902 26,963 1,252,216
149,733 56,878 - 206,611
149,733 56,878 - 206,611
1,046,084 385,780 26,963 1,458,827
(Note 3 and 4b) (Note 4a) (Note 4c)
Staf
Costs		 Indirect
Costs		 Governance
Costs		 2022
£ £ £ £
Unrestricted Funds
Members’ services
Conferences and meetings
Total Unrestricted Resources Expended
Restricted Funds
Project Expenditure
Total Restricted Resources Expended
Total Resources Expended		 855,532 348,348 40,631 1,244,511
- 81,783 3,533 85,316
855,532 430,131 44,164 1,329,827
82,147 42,808 - 124,955
82,147 42,808 - 124,955
937,679 472,939 44,164 1,454,782
(Note 3 and 4b) (Note 4a) (Note 4c)

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 43

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

4A. ANALYSIS OF INDIRECT COSTS

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

4a.1 Current year

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Members’ Conferences Project 2023
Services and Meetings Expenditure
£ £ £ £
----- End of picture text -----

ICT and communications
Publications and printed matter
Meetings and events
Other and staf expenses
Property-related expenditure
Irrecoverable VAT		 76,790
25,772
-
66,263
103,480		 1,567
-
9,886
-
2,112		 14,100
26,175
-
6,000
10,603		 92,457
51,947
9,886
72,263
116,195
42,171 861 - 43,032
314,476 14,426 56,878 385,780

4a.2 Prior year

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Members’ Conf and Project 2022
Services Meetings Expenditure
£ £ £ £
----- End of picture text -----

ICT and communications
Publications and printed matter
Meetings and events
Other and staf expenses
Property-related expenditure
Irrecoverable VAT		 74,630
34,717
-
54,592
130,422		 6,490
-
59,256
-
11,341		 -
-
340
36,721
5,747		 81,120
34,717
59,596
91,313
147,510
53,987 4,696 - 58,683
348,348 81,783 42,808 472,939

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 44

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

4B. ANALYSIS OF STAFF COSTS

4b.1 Current year

----- Start of picture text -----
Members’ Services Project Expenditure 2023
£ £ £
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Salaries and wages
Social security costs
Pension contributions
Pension Trust deficit contributions
Recruitment and training
Temporary staf, consultancy and all other
staf costs		 642,785
73,958
72,314
258
42,476		 137,760
6,473
5,500
-
-		 780,545
80,431
77,814
258
42,476
64,560 - 64,560
896,351 149,733 1,046,084

4b.2 Prior year

----- Start of picture text -----
Members’ Services Project Expenditure 2022
£ £ £
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£ £ £
Salaries and wages
Social security costs
Pension contributions
Pension Trust deficit contributions
Recruitment and training
Temporary staf, consultancy and all
other staf costs		 562,677
61,611
61,100
107
44,298		 73,178
4,877
4,092
-
-		 635,855
66,488
65,192
107
44,298
125,739 - 125,739
855,532 82,147 937,679

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 45

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

4C. ANALYSIS OF GOVERNANCE COSTS

Governance cost apportioned based on income percentages.

----- Start of picture text -----
2023 2022
£ £
----- End of picture text -----

Auditor remuneration – audit fee for current year
Auditor remuneration – tax compliance
Internal and external meetings
Strategic review
Trustee expenses
Sundries		 13,229
2,650
7,478
1,800
1,780
26		 12,000
2,445
2,284
27,317
92
26
44,164
26,963 44,164

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 46

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

5. RESTRICTED FUNDS – GROUP AND CHARITY

5.1 Current year

----- Start of picture text -----
Project Funders Funder Foundation Catalytic Impact Origins of Members’ Total
Collaborative Commitment Giving Capital Investing in wealth Policy 2023
Hub on Climate Trends the Main Forum
Change Endowment
£ £ £ £ £
----- End of picture text -----

Grant
income
Expenditure
Staf and
consultancy
Direct
project costs
Overheads		 98,711
103,113
14,099
10,603		 -
18,160
-
-		 -
-
22,174
-		 -
-
4,000
-		 -
3,460
-
-		 5,750
-
6,000
-		 -
25,000
-
-		 104,461
149,733
46,273
10,603
Total
Expenditure		 127,815 18,160 22,174 4,000 3,460 6,000 25,000 206,609
Net Income/
(expenditure)		 (29,104) (18,160) (22,174) (4,000) (3,460) (250) (25,000) (102,148)
As at 1
January
2023		 29,104 27,000 22,174 4,000 3,460 - 30,000 115,738
As at 31
December
2023		 - 8,840 - - - (250) 5,000 13,590

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 47

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

Funders Collaborative Hub

Funding from Esmée Fairbairn Foundation 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.

providing an introductory learning series for foundations on mixed motive and financial return impact investing.

Origins of Wealth

Funding from the Barrow Cadbury Trust for the development of a toolkit to help foundations to explore the origins of their wealth in connection with colonialism and slavery.

Members’ Policy Forum

Funding from Paul Hamlyn Foundation 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 policy-makers in government.

UK Funder Commitment on Climate Change

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

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 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.

Impact Investing in the Main Endowment

In collaboration with the Impact Investing Institute, Charities Responsible Investment Network and Big Society Capital, and funded by Esmée Fairbairn Foundation, Joseph Rowntree Foundation, City Bridge Trust – the funding arm of The City of London Corporation’s charity, Bridge House Estates (1035628) – The Clothworkers’ Foundation, Golden Bottle Trust, Guy’s & St Thomas’ Foundation, Treebeard Trust and the Barrow Cadbury Trust, this project focuses on

5.2 Prior year

----- Start of picture text -----
Project Funders Funder Foundation Catalytic Impact Members’ Total
Collaborative Commitment Giving Capital Investing in Policy Forum 2022
Hub on Climate Trends the Main
Change Endowment
£ £ £ £
----- End of picture text -----

Grant
income
Expenditure
Staf and
consultancy
Direct project
costs
Overheads		 83,811
62,352
-
2,099		 30,000
2,700
300
-		 40,000
1,913
15,290
3,649		 -
4,982
10,131
-		 20,000
5,200
11,340
-		 35,000
5,000
-
-		 208,811
82,147
37,061
5,748
Total
Expenditure		 64,451 3,000 20,851 15,113 16,540 5,000 124,955
Net Income/
(expenditure)		 19,360 27,000 19,149 (15,113) 3,460 30,000 83,856
As at 1
January
2022		 9,744 - 3,025 19,113 - - 31,882
As at 31
December
2022		 29,104 27,000 22,174 4,000 3,460 30,000 115,738

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 48

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

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, six Trustee Board members was £1,822 (2022: one member at £92).

All 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.

The Association is required to disclose the following related party transactions relating to 2023:

Licence fees totalling £11,440 (2022: £9,840) were paid by GiveOut (the employer of one of the Association’s trustees) for use of desk space in ACF’s office (including by the trustee employed by GiveOut).

Aggregate membership and event income in the year paid by trustees’ organisations totalled £52,593 (2022: £59,633).

In addition in the prior year, a restricted grant of £30,000 was awarded by John Ellerman Foundation (the employer of one of the Association’s trustees) to support the work of the Funder Commitment on Climate Change ( see note 5 ). The grant agreement was made between the Foundation and the Association.

7. FIXED ASSETS

7A. TANGIBLE FIXED ASSETS

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

£ £ £
Cost
At 1 January 2023
Additions in the year
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022		 96,002
-		 46,652
26,557		 142,654
26,557
96,002 73,209 169,211
(94,329)
(648)		 (42,424)
(2,709)		 (136,753)
(3,357)
(94,977) (45,133) (140,110)
1,025 28,076 29,101
1,673 4,228 5,901

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 49

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

7B. INTANGIBLE FIXED ASSETS

All fixed assets are used for direct charitable purposes.

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

£ £
Cost
At 1 January 2023
Additions in the year
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022
Total Net Book Value of Tangible and Intangible Fixed Assets
At 31 December 2023
At 31 December 2022		 130,444
4,500		 130,444
4,500
134,944 134,944
(36,959)
(26,089)		 (36,959)
(26,089)
(63,048) (63,048)
71,896 71,896
93,485 93,485
100,997
99,386

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 50

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

8. INVESTMENT IN SUBSIDIARY UNDERTAKING

2023 2022
£ £
2 2
The charity holds 100% of the issued ordinary share capital of the following company:
Subsidiary
ACF Conferences and Seminars Limited
Country of registration
England and Wales
Class
Ordinary
Shares held
100%
The aggregate amount of capital and reserves and result of this undertaking for the last relevant financial year were as follows:
Subsidiary
ACF Conferences and Seminars Limited
Principal activity
Conferences
Capital and reserves
£2
Profit for the year
£nil
2023
2022
£ £
Turnover for the period 200,000 210,535
Cost of sales (44,866) (71,111)
Gross profit 155,134 139,424
Profit on ordinary activities before taxation 155,134 139,424
Tax on profit on ordinary activities - -
Profit for the year, transferred to the charity at year end 155,134 139,424

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 51

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

9. DEBTORS

£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.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

In each year, meeting fees, subscriptions, and tenant income received in advance entirely relate to the next financial year.

Amounts due from subsidiary undertaking
Prepayments and accruals
Taxation
Other debtors		 Group
Charity
Group
Charity
2023
2023
2022
2022
£
£
£
£
-
203,951
-
215,085
113,039
113,039
26,902
26,902
12,387
12,387
8,397
8,397
2,850
2,850
3,186
3,024
128,276
332,227
38,485
253,408

----- Start of picture text -----
Group Charity Group Charity
2023 2023 2022 2022
£ £ £ £
----- End of picture text -----

£ £ £ £
Accruals
Meeting fees received in advance
Subscriptions received in advance
Tenant income received in advance
Staf leave carried forward
Staf wages
Other taxation and social security
Staf pensions
Other creditors		 25,847
4,440
7,914
-
20,126
3,756
1,829
-		 23,197
4,440
7,914
-
20,126
3,756
1,829
-		 26,169
-
-
3,120
23,124
3,694
1,892
7,320		 23,724
-
-
3,120
23,124
3,694
1,892
7,320
19,985
82,859
60,583 58,195 19,929 19,985
124,495 119,457 85,248 82,859

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 52

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

10A. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

The trustees have adopted a dilapidations provision to reflect the estimated cost of future expenditure where the Association has contractual obligations for reinstatement relating to any property lease. The charge for the dilapidations provision in 2023 is £0 (2022: £3,500).

Group
2023		 Charity
2023		 Group
2022		 Charity
2022
£ £ £ £
Dilapidations provision 18,000 18,000 18,000 18,000

11. TAXATION

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

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.

Reconciliation of opening and closing liabilities

----- Start of picture text -----
Group and charity 2023 2022
£ £
----- End of picture text -----

Provision at 1 January
Unwinding of the discount factor
Deficit contribution paid in year
to the Pensions Trust
Impact of changes in the Pensions
Trust’s fund valuation assumptions
Amendments to the
contribution schedule
Provision at 31 December		 7,143
258
(3,597)
(6)
-		 13,014
107
(5,714)
(264)
-
3,797 7,143

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 53

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

Under the Association’s recovery plan, £3,597 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. £4,298 of plan expenses are due in the coming year.

13A. UNRESTRICTED FUNDS – GROUP AND CHARITY

General Fund

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.

Pension Trust Deficit Reduction Fund

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 £10,000 has been transferred every year from 2015-2023. ACF is now actively investigating a potential buyout from this scheme using this fund within the next 12 months.

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.

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.

----- Start of picture text -----
Current year General fund Pension Trust Pension 2023
Deficit Fund Liability
Reserve Fund
£ £ £ £
Balances at 1 January 2023 683,931 80,000 (7,143) 756,788
Net income before transfers 178,531 - - 178,531
Actuarial gains/(losses) on defined benefit - - 6 6
pension schemes
Transfer from/(to) General Fund (13,340) 10,000 3,340 -
Balance at 31 December 2023 849,122 90,000 (3,797) 935,325
Prior year General fund Pension Trust Pension 2022
Deficit Fund Liability
Reserve Fund
£ £ £ £
Balances at 1 January 2022 633,293 70,000 (13,014) 690,279
Net income before transfers 66,245 - - 66,245
Actuarial gains/(losses) on defined benefit - - 264 264
pension schemes
-
Transfer from/(to) General Fund (15,607) 10,000 5,607
Balance at 31 December 2022 683,931 80,000 (7,143) 756,788
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TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 54

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

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

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Current year Fixed Assets Current Creditors Pension Net Assets
and Assets Deficit 31.12.23
Investments Liability
£ £ £ £
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Restricted Funds
Project Funds
Unrestricted Funds
Designated Funds
Pension Trust deficit reduction fund
Pension Liability reserve
General Fund*
Total unrestricted funds
Total funds		 -
-
-		 13,590
90,000
-		 -
-
-		 -
-
(3,797)		 13,590
90,000
(3,797)
100,997 890,618 (142,495) - 849,120
100,997 980,618 (142,495) (3,797) 935,323
100,997 994,208 (142,495) (3,797) 948,913

*After fixed assets have been accounted for, The Association’s general fund is £748,123 which forms The Association’s free reserves. This is calculated as follows: Total general fund 849,120 Less fixed assets and investments 100,997 748,123 (£584,545 in 2022)

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 55

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

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

----- Start of picture text -----
Prior year Fixed Assets Current Creditors Pension Net Assets
and Assets Deficit 31.12.22
Investments Liability
£ £ £ £
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Restricted Funds
Project Funds
Unrestricted Funds
Designated Funds
Pension Trust deficit reduction fund
Pension Liability reserve
General Fund
Total unrestricted funds
Total funds		 -
-
-		 115,738
80,000
-		 -
-
-		 -
-
(7,143)		 115,738
80,000
(7,143)
683,931
756,788
872,526
99,386 687,793 (103,248) - 683,931
99,386 767,793 (103,248) (7,143) 756,788
99,386 883,531 (103,248) (7,143) 872,526

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

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2023 2022
£ £
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Net income for the reporting period as per the statement of financial activities
Depreciation charges
Interest income
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Non-cash movement on defined benefit pension liability
Net cash provided by operating activities		 76,381
29,446
(33,484)
(89,791)
39,243
(3,340)		 150,101
55,080
(6,223)
51,663
(22,419)
(5,607)
222,595
18,455 222,595

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 56

Association of Charitable Foundations Notes to the Financial Statements For the year ended 31 December 2023

15. ANALYSIS OF CHANGES IN NET CASH

Cash in hand
Notice deposits (less than three months)
Total cash and cash equivalents		 At 31 December 2023
£
334,463
531,469
865,932
At 1 January 2023 Cash flows
£ £ £
344,333
500,713		 (9,870)
30,756		 334,463
531,469
845,046 20,886 865,932

16. OPERATING LEASE COMMITMENTS – GROUP AND CHARITY

All amounts are subject to VAT, a portion of which will be recoverable under partial recovery.

Operating lease rental payments during the year were £86,158 (2022: £96,000).

Within one year
Between 2 and 5 years
5 years +		 2022
£
L&B
64,000
-
-
64,000
2023
£
L&B L&B
87,167
152,000
- -
239,167 64,000

17. RELATED PARTY TRANSACTIONS

The charity has a wholly owned subsidiary, ACF Conferences and Seminars Limited. For the year ended 31 December 2023 the subsidiary declared a gift aid distribution of £155,134 to the charity (2022: £139,424).

Bidirectional recharges have also been made between the charity and the trading subsidiary relating to trading

activities (the trading subsidiary was charged £34,278 [2022: £68,653] by the charity; there were no recharges to the charity by the trading subsidiary [2022: £0]).

At the year end the subsidiary owed the charity a total of £205,536 (2022: £215,085) inclusive of gift aid, and the charity owed the trading subsidiary £1,587 (2022: £56).

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

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS 57

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

Registered Company No. 5190466

Registered Charity Number: 1105412

Registered Office: 28 Commercial Street, London, E1 6LS

acf.org.uk

acf@acf.org.uk