# **WILLOW ANNUAL REPORT AND FINANCIAL STATEMENTS 2020** 


Company number: 5207070 



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The trustees present their report and the audited financial statements for the year ended 31 December 2020. Reference and administrative information set out on page 71 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.  This trustees’ annual report includes a directors’ report as required by company law. 



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## **CONTENTS** 

|**CONTENTS**||
|---|---|
|**LETTER FROM THE CHAIR**|**4**|
|**ABOUT WILLOW**|**6**|
|**OUR STRATEGY IN 2020**|**7**|
|**HOW WILLOW RESPONDED TO COVID**|**9**|
|**ACHIEVEMENTS AND PERFORMANCE**|**14**|
|**FUNDING OUR SERVICES**|**17**|
|**PLANS FOR THE FUTURE**|**23**|
|**A VERY SPECIAL TEAM**|**25**|
|**INCOME AND EXPENDITURE**|**27**|
|**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE WILLOW**||
|**FOUNDATION**|**32**|
|**GOVERNANCE**|**66**|
|**CHARITY INFORMATION**|**71**|





**4** 

## **LETTER FROM THE CHAIR** 

In 2020 Willow celebrated its 21[st] birthday and created its 17,000[th] Special Day. There should have been much to celebrate. However, 2020 also proved to be the most challenging year in the charity’s history, and that meant making some difficult decisions and enduring some sacrifices. The financial year began with the country going into lockdown, and Willow suspending its service. Many of Willow’s beneficiaries were advised to shield, so not only were they living with the realities of serious illness, they were also increasingly isolated. 

Through close contact with our beneficiaries we were aware of their challenges, cancelled or delayed treatments and while support services from hospices were suspended too. 

One of our beneficiaries Faye, a young mum diagnosed with breast cancer, said: 

_I was going through chemotherapy when Covid hit in March 2020 and it was a very stressful time because even my doctors didn't know to what extent cancer services would be affected. I ended up having my chemotherapy cut short and my surgery moved to a private hospital to get it done as quickly as possible, then radiotherapy and a further six months of chemotherapy. I was extremely fearful of how Covid could potentially affect me while my immune system was weakened by chemotherapy, so we barely left the house between March and my daughter starting school in the September. That impacted my children as well as it was such a crucial stage of their social development._ 

Our beneficiaries have always been at the heart of everything we do. We knew that in lockdown they would need us more than ever. While we could no longer deliver Special Days, we had to find new ways of fulfilling our mission of creating magic moments that become precious memories, of bringing sunshine to people living with serious illness. 

But I’m proud to say that everybody connected with Willow rose to the challenge magnificently: from our staff who worked on reduced hours and reduced pay, but nevertheless managed to respond to the challenges of lockdown and create innovative new services and events, to our trustees who steered a prudent course through difficult waters, to our loyal supporters, companies and trusts who never deserted us, even when facing financial challenges of their own. I’d like to take this opportunity to thank them all – we will never forget your vital support. 

As I write this letter, we have now reopened our full service after a long and challenging interruption. In recent months we have delivered many of the Special Day services that were 



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postponed in 2020, and the feedback we’ve received has made it clear that it was very much worth the wait: Special Days are needed and appreciated more than ever. 

Thanks to our agile response to lockdown, our prudent financial management, and our loyal supporters we were able to continue to support Faye. We sent her and her family a Positivity Pack in November 2020, and she told us how much her children loved playing with the treats inside. In June 2021 we were able to arrange for her and her family to spend a Special Day at Legoland. 

_We spent two days and a night at Legoland, Windsor, and although we were away from home less than 48 hours, it felt like a proper holiday and we threw ourselves into getting on as many rides as possible, while taking in shows, meeting characters and eating good food. The two days were so busy we felt fully immersed in the experience and completely switched off from the world outside, which was really important because I had an operation coming up two days after our Special Day and my daughter has an operation in two weeks. We danced our way around the park, shared many family jokes and created memories which will last a lifetime._ 

We have all learned a great deal from the experience of the past year. We’re pleased to say that many of our lockdown service innovations, including Special Treats and Special Days at Home (see p 11), will now become a permanent part of our service model. We’re determined that Willow will bounce back more efficient and stronger from the experience of 2020, to deliver many more magic moments and precious memories in the years ahead. 

## **Richard King Chair of Trustees** 



**6** 

## **ABOUT WILLOW** 

Willow is the only national charity working with seriously ill young adults aged 16 to 40 to fulfil uplifting and unforgettable Special Days. 

Since 1999 Willow has fulfilled more than 17,000 Special Days for young adults living with life-threatening conditions such as cancer, motor neurone disease, cystic fibrosis, muscular dystrophy and Huntington’s disease along with many other rare conditions. 



Willow was founded in 1999 by former Arsenal goalkeeper and TV presenter, Bob Wilson and 

his wife Megs, as a lasting memorial to their daughter Anna, who died of cancer aged 31. The inspiration for Willow came from Anna’s determination to live every moment to the full, despite the most difficult circumstances. 

“Anna’s love of life and her own ‘special days’ taught us that quality of life and quality of time is so very important.” 

## **Bob & Megs Wilson, Willow Life Presidents** 



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## **OUR STRATEGY IN 2020** 

In 2020 Willow remained committed to fulfilling the third year in our 2018-2020 strategy. Operating during lockdown raised significant challenges to this strategy; however, by adapting and innovating we continued to focus on our three strategic pillars. 

## **Growth** 

## **To continue to build and diversify Willow’s income streams, focusing on long-term sustainability and to expand and grow our retail revenue.** 

With the impact of Covid across our income streams and in particular our fundraising events, we needed to rapidly adapt our 2020 fundraising strategy to the new virtual environment. The continued focus on our supporter stewardship framework was vital to keep our donors up to date on the challenges we were facing and support was galvanised through emergency appeals from our major donors, trust and foundation and supporter fundraising networks. 

In 2020 we began work on our beneficiary engagement project, ensuring that a Special Day is just the beginning of an individual’s relationship with Willow. Through cross-team working we identified the key messages and touchpoints to facilitate long-term engagement and help steward beneficiaries and their families towards becoming long-term supporters. We intend to implement these plans with the reopening of services in 2021. 

## **Impact** 

## **To ensure that Special Days remain equally available across the UK to all with eligible conditions and to provide over 1,000 individual Special Days this year.** 

In 2020, lockdown meant we had to pause our Special Day service. However, we adapted and innovated, creating new types of Special Days that could be taken at home and launching Positivity Packs, a new product designed to bring Willow sunshine to our beneficiaries by post. The success of Positivity Packs laid the foundations for Special Treats, a new permanent part of Willow’s service, which we launched in 2021, targeting young adults in end of life and palliative care. To see more about how Willow innovated see pages 10-11. 

In Q3 2020 we launched a new, more comprehensive quantitative feedback survey enabling us to share how a Special Day can help beneficiaries to cope with their situation. 



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## **Sustainability** 

## **To ensure Willow operates with financial sustainability and maximises its resources in an efficient and cost-effective way.** 

Because of Covid, Willow needed to make changes to its strategy with a particular focus on the short and medium term to ensure it was in the best possible position to navigate the pandemic. Our finances were continually monitored by the Senior Management Team who reported back to the trustees. 

Without knowing how long lockdown would last, Willow needed to adapt, remain agile and respond to the changing situation. 

Budgeted costs were reduced by £1.5m in response to the expected material effects that Covid would have on our income, this reduction was achieved. Willow also made appropriate use of the government support available, aiming to ensure we could continue to serve our beneficiaries in the absence of our usual fundraising income. 



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## **HOW WILLOW RESPONDED TO COVID** 

2020 was a year of big challenges – for Willow itself, but most importantly for the seriously ill people we support. We had to adjust quickly, but in true Willow fashion, we have managed to meet these challenges and continue to find new ways of providing quality of time and quality of life. 

All our efforts were focused on four key priorities: 

1. Raising income in different ways 

2. Adapting our service to our beneficiaries 

3. Maintaining the profile of Willow through agile communications 

4. Ensuring organisational sustainability by reviewing our staffing structure and the opportunities for government support 

## **1: Raising income in different ways** 

In any given year, more than half of Willow’s income is dependent on fundraising initiatives that bring people together, whether through our annual ball, runners participating in the London Marathon, our annual clay pigeon shoot day, the Willow 10K run, golf days or ‘Take time for Tea’ activities in the community. During lockdown, none of these could take place and this, coupled with the closure of our retail shops, had a devastating impact on our fundraising income, and ultimately on our ability to support seriously ill young adults. 

At that time, we projected a significant income reduction of £1.7m for the year and we soon realised that for Willow to survive we had to focus on fundraising activities that could be undertaken during lockdown, make cost reductions whilst ensuring our service offering would be Covid-proof in the medium-term. 

Our events and communications teams developed new skills so that we had the skillsets and tools to deliver virtual events and digitise fundraising efforts. External partners were extremely helpful and peer-to-peer learning supported this initiative too. This resulted in successful digital campaigns and fundraising events for our supporters such as the Willow Carol Concert and the virtual Willow Ball. 

We launched a Covid appeal to which our major supporters responded generously to safeguard our Special Day services. 



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## **2: Adapting our service to our beneficiaries** 

Willow started 2020 positively with over 150 Special Days delivered between January and March.  At the end of March as the UK went into national lockdown we had to make the difficult decision to put our Special Day service on hold. Following this, we had some very difficult and emotional conversations with our beneficiaries. Many of the seriously ill young adults Willow supports do not have time on their side, so being asked to wait until we could safely reopen was in many cases devastating news.  All Willow beneficiaries are considered high risk, are clinically vulnerable and so had to shield for a significant part of 2020 and into 2021. 

As we were unsure when we would be able to restart our service, we focused on how we could safely support these seriously ill young adults during the months that followed. Our only solution was to diversify our service. A small working group from across the charity devised new ways to support our beneficiaries. 

## **Virtual Special Days** 

Lockdown obviously created challenges for Special Days where we would normally arrange for people to meet their heroes. However, we were able to create a number of virtual Special Days for people like Victoria who is living with bowel cancer and is mum to two Chelsea-mad sons.  She was all set to go on her Special Day to Chelsea FC training ground and meet the players when Covid interrupted. To bring joy to Victoria and her boys, we arranged a personalised video message from Chelsea and England star Mason Mount which made Victoria’s day. Victoria’s Special Day will now take place in 2021. 



**11** 

## **Willow Positivity Packs** 


While we couldn’t create Special Days, we could still create Special Moments. That’s why we teamed up with ‘Not Another Bunch Of Flowers’ who specialise in thoughtful yet fun gifts and care packages for people living with illness. Together we created Positivity Packs which, in the spirit of Special Days, aimed to bring joy, lift spirits and give young adults and their families something to smile about. 

Three themed treat packs were created to suit men, women and families. Aiming to lift spirits, our packs brought joy to the lives of our beneficiaries who felt more isolated due to their condition.  During 2020 we supported almost 600 young adults through Positivity Packs. 

_“I have just received the most wonderful box of goodies! I cannot say how much this means to me; we can have fun as a family while locked away from the outside world! Your kindness is very much appreciated. It is a difficult time, but I know we will come out the other side smiling.”_ 

## **Adapting Special Days** 

After consulting with our health advisors as lockdown was relaxed, we were able to deliver Special Days again by the autumn of 2020. While it wasn’t safe to arrange trips to the theatre or sporting events, we were able to organise short family breaks and Special Days at Home, such as garden parties, a movie night or a pampering hot tub weekend where we delivered a pop-up hot tub, bath robes, slippers, face masks, a manicure kit and a hamper full of spa products. 



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Jaime is 32, lives in Liverpool and is being treated for lymphoma. In November 2020 he asked Willow for a Special Day at home with a hot tub and take away. 

_“We had the most brilliant weekend! The biggest thank you to you and the team at Willow for arranging all of this. Joseph was in his element in the hot tub and we had pizza and ice cream on Saturday for dinner, in front of the TV - a real treat for the wee man! We honestly can't thank you enough, it really made the weekend. We are a very happy household!”_ 


## **Festive Packs** 


As we approached Christmas 2020 and the UK was under further restrictions, we were conscious that of the c.600 beneficiaries who had had their Special Day postponed across the year, around half of them had been waiting for their Special Day for at least 12 

months. Throughout this period we had kept in contact and were aware of the many difficulties people were facing, from shielding and feeling isolated to dealing with treatment and sometimes coping with treatment delays as a result of the pandemic. We wanted them to 

know they were still very much in our thoughts. 

In early December we created Festive Packs to send to these people as a little seasonal treat – complete with a handmade Willow bauble for the tree, made by our Special Day Coordinator, Claire. 

_“I just wanted to write to thank you for the little parcel of Christmas treats that arrived today. It really was so nice to receive a little treat at a time when I'm performing motherly duties for everyone else! I will enjoy a little bit of me time with the gifts and really do appreciate the time that you've taken to think of me. Thank you!”_ 

Thanks to our supporters, Willow was able to adapt its service to the new normal, while remaining focused on creating magic moments and precious memories. 

## **3: Maintaining Willow** ! **s profile through agile communications** 

Keeping in touch with beneficiaries was key during this uncertain period and we set up a private online support group where beneficiaries shared stories, exchanged peer-to-peer support and had access to blog posts, tips and ideas of activities to do at home. Our Special Day Coordinators stayed in regular contact with beneficiaries throughout. 



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During this time, it was also important to keep in touch and listen and learn from how others were responding. These conversations often yielded new perspectives and ideas. While our nurse advisers kept their medical professional counterparts informed, our fundraising teams shared updates on adapted services and new virtual fundraising initiatives with our key supporters and charity partners. 

We shared news and updates on our services with all our stakeholders via digital channels (regular targeted emails and social media), our printed supporter newsletter and through regular press releases to local media. 

## **4: Ensuring organisational sustainability by reviewing our staffing structure and the opportunities for government support** 

With the prospect of significant loss of income, it was important that alongside our new fundraising initiatives, we also reviewed our expenditure. 

Willow staff agreed to temporary salary reductions from 1 April 2020 through to early 2021. We maximised use of the furlough scheme and we applied successfully for retail grants to support our non-trading retail shops. We also approached landlords to ask for rent reductions during this period. 

A review of staffing needs took place and this resulted in a decision to re-structure the team. Unfortunately this meant a loss of 30% of our workforce. This was achieved through a combination of reduced hours and redundancy. 

Government Grants received in the year totaled £380k and staffing costs were reduced by over £400k. 

We realise that we were not alone in having to make these difficult decisions. So many businesses and individuals have endured a very tough year and we are grateful and humbled by those who were able to help and support Willow during this time. We are hugely grateful to every single one of them. 

At the end of the year our income was down by 41% compared to budget. Willow has emerged leaner, more efficient and full of creative ideas to support our beneficiaries and raise the funds needed to deliver these plans. 



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## **ACHIEVEMENTS AND PERFORMANCE** 

As we had to suspend our usual Special Day service in April 2020, we were unable to fulfil our usual 1,000+ Special Days across the year. However, by adapting, thinking differently and exploring new opportunities, we were able to support our beneficiaries in a number of different ways. 

## **In 2020 Willow supported over 1,000 seriously ill 16-40 year olds** 

(Special Days included 15 Special Days at Home and 9 Virtual Meet and Greets) 


**----- Start of picture text -----**<br>
750<br>579<br>600<br>450<br>280<br>300<br>181<br>150<br>0<br>Special Days Positivity Packs Festive Packs<br>**----- End of picture text -----**<br>




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## We supported people right across the UK: 


**----- Start of picture text -----**<br>
16<br>12<br>8<br>4<br>Percentage of beneficiaries 0<br>Scotland Wales London<br>England England<br> Northwest  Southwest Southeast England East of England Yorks and Humber West Midlands Northern Ireland East Midlands North East England<br>**----- End of picture text -----**<br>




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## **Understanding our beneficiaries** 

One of our aims for 2020 was to introduce a more comprehensive feedback survey to help us to monitor and improve our service following each Special Day.  In Q3 2020, we launched a new digital survey which further covers qualitative data and introduces new quantitative data to demonstrate the impact of our Special Day service. 

All respondents to date (up to June 2021) have given Willow a 100% Net Promoter Score. This asks ‘How likely are you to recommend Willow to a friend or colleague?’ This is a 3% increase on our average survey response in 2019. 

Beneficiaries also shared how their Special Day helped them and what it provided… 

- **73%** of respondents agreed that their Special Day helped them to feel less isolated from loved ones and normal life 

- **76%** of respondents agreed that their Special Day helped them to be more hopeful about the future 

- **80%** of respondents agreed that their Special Day provided a renewed energy for myself and/or loved ones 

- **96%** of respondents agreed that their Special Day provided the opportunity to capture and share precious memories 

Katie is 34 and has been diagnosed with breast cancer. She asked for a family break for her and her husband and their young children. 

_“A huge thank you to Willow for arranging our Special Day at CenterParcs. We were originally supposed to go after I finished chemotherapy earlier in the year, but unfortunately it had to be postponed due to Covid._ 

_It was totally worth the wait and we were able to spend some much needed quality time together as a_ 


_family. Our daughter was so brave and resilient during my cancer treatment and it's been wonderful to see her so happy and carefree again. We've made memories that will last a lifetime and I will never forget the generosity of this amazing charity. Thank you, thank you, thank you.”_ 



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## **FUNDING OUR SERVICES** 

At Willow we work with thousands of supporters who give generously to make our work a reality. Just as we innovated in our services, in 2020 we also found new ways to engage our supporters, using new technology to reach new audiences in new ways. 

## **Individual Giving** 

Individual Giving income includes funds from supporters who give regularly, people who respond to our appeals and key supporters who make significant philanthropic donations. 

2020 was an extremely challenging year for individual giving as economic uncertainty saw individual giving down across the sector. During 2020, Willow supporters donated through a wide variety of activities and gifts including our appeals, newsletter and our raffle. We launched a Covid appeal to our major supporters who responded positively and generously helping to launch our Positivity Packs while safeguarding the future of Special Days. 

We are incredibly grateful to all our regular donors who continued to give throughout lockdown. Their dedication made it possible for Willow to continue its vital work through this extremely difficult period. 

## **Trusts and Foundations** 

In a challenging year for fundraising, we were grateful for the trusts and foundations who continued to believe in and support Willow’s work. Our loyal trusts and foundations were interested to learn that Willow was able to adapt its services and offer continued support to seriously ill young adults during lockdown. We kept in regular contact, to share how we were responding to the testing times that Covid presented us with. Many trusts understood the urgency of our funding requests, gave generously and offered flexibility where needed. 

Our innovations in service provision, in particular our Positivity Packs and Special Days at Home also meant that we were able to access new funding opportunities. 



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## **Community and challenge** 


_Ed Gamwells (left) and Eirra (centre, right) with our founders Bob and Megs Wilson, recording our virtual Christmas Carol Concert_ 

Community and challenge fundraising were particularly hard hit by lockdown, and large parts of our regular calendar of events and activities had to be adapted or cancelled. However, our supporters continued to amaze us. The 2.6 Challenge was initiated to try to replace some of the lost income from the cancelled London Marathon, and Willow supporters had fun designing their own challenges, including Naomi, who knitted 26 mindful mice. 

Throughout 2020, Willow’s supporters were tireless, whether it was taking part in our virtual Take Time for Tea event, organising online concerts or taking part in online quizzes with family and friends. One particular fundraiser stole our hearts: 12-year-old Riley vowed to shave his head in solidarity with his dad Rob who was having treatment for bowel cancer. Young Riley made his dad very proud by raising funds for Willow. 

The event that summed up 2020 in many ways was our Christmas Carol Concert. Lockdown meant we couldn’t have our event at St Albans Cathedral as usual, but by taking the event 



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online, and calling upon some very talented supporters, we were able to share the evening with Willow supporters all over the world. 

## **Corporate Partnerships** 

Lockdown meant that our partners had to be creative and go the extra mile in fundraising: quite literally in the case of Pen Underwriting, who chose Willow as one of their charities of the year. Staff from across Pen took part in a series of fundraising activities and lockdown challenges, including one that saw them choose to walk, jog or cycle the 5,501 miles from their London office to Pune in India in just 14 days. And they did it in style, racking up 5,685 miles in total. 

We were delighted to once again partner with Advent of Change, the philanthropic company, which has developed a full range of festive goods including advent calendars, candles and Christmas crackers. Sales of these products raised a record-breaking amount in December which was distributed between 24 good causes. 

We were also incredibly grateful to ICAP who chose Willow to be one of the organisations to benefit from their annual charity day, where the international broker dealer donates 100% of its revenues and commissions. 



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## **Special Events for Special Days** 


_Dermot O’Leary, host of the 2020 London Football Awards, with Patrick Smith from Frogmore, Tammy Abraham and Ashley Cole_ 

We were fortunate that the 2020 London Football Awards took place before lockdown began in earnest. We were delighted to welcome current stars and legends to our new home at the London Roundhouse for an event hosted by Dermot O’Leary. As lockdown continued, it became clear that it would not be possible to hold our 2021 awards in person, but our events team responded and innovated to create an immersive virtual event that continued to engage players, legends, clubs and key partners, and we will look to build on these learnings in future events. 

The Willow Ball also went online, becoming an innovative, immersive experience. We were delighted to be joined by many familiar faces for some very special performances by Mica Paris, Jools Holland and Ella Henderson. Including an incredible song by Willow beneficiary Olivia. 

Alongside our own events, we also benefit from events organised by our supporters. Folk by the Oak is an annual music festival that takes place in the grounds of Hatfield House every July and has supported Willow since it was founded in 2008. When it became clear that the 



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event couldn’t take place as usual in 2020, the organisers took the event online, with specially recorded performances from folk stars including Richard Thompson and Mary Chapin Carpenter, and Willow beneficiary, Eirra reaching a global audience. Despite it being a virtual event, we’re delighted that Folk by the Oak fans were just as generous as in previous years. 

## **Shopping for Special Days** 

Our retail shops in Hertfordshire not only form a vital revenue stream to fund our services, but are also an important channel for us to raise awareness of our work. 

In 2020 we closed our Barnet branch, reducing the number of Willow shops from six to five. We had planned to expand by opening a further two shops, however these plans were put on hold due to the uncertainty created by Covid. With retail performing strongly since the 2021 reopening, we hope to return to our expansion plans in 2022. 

Lockdown meant that they were closed for 22 weeks of 2020, and during these periods we made use of government support to furlough staff and support shops forced to close. 

However, with the help of our volunteers we were able to continue to engage loyal supporters throughout this period, taking advantage of lockdown clear-outs providing valuable stock donations which enabled us to deliver record breaking sales when we were able to trade again. 



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## **Income Classification per Accounting Standards** 

|**Income**|**Total**|**Donations,**|**Fundraising**|**Retail shops**|**Other trading**|**Investments**|
|---|---|---|---|---|---|---|
|**Stream**||**legacies and**|**events**||**activities**||
|||**government**|||||
|||**grants**|||||
||£'000s|£'000s|£'000s|£'000s|£'000s|£'000s|
|**Special**|503|78|425||||
|**Events**|||||||
|**Community &**|194|194|||||
|**Challenge**|||||||
|**Retail**|519|230||289|||
|**Corporate**|120|120|||||
|**Partnerships**|||||||
|**Trusts &**|278|278|||||
|**Foundations**|||||||
|**Individual**|325|308|||17||
|**Giving**|||||||
|**Investments**|46|||||46|
|**Other**|188|188|||||
|**Total**|**2,173**|**1,396**|**425**|**289**|**17**|**46**|





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## **PLANS FOR THE FUTURE** 

Although 2020 was a challenging year, the way Willow responded and innovated taught us important lessons going forward, and this will feed into our three year plan to 2023. 

In particular we have discovered the importance of being flexible and agile in response to the needs of our beneficiaries. One size does not fit all, especially with regards to people living with serious illness, for whom a trip to a holiday park or an attraction may not be possible or suitable. 

The success of our Special Days at Home and Positivity Packs have given us important pointers towards a broader, more flexible service launched in 2021. 

Special Treats in particular allow Willow to reach a new demographic of people whose care has been severely interrupted during lockdown, work in partnership with key stakeholders such as Hospice UK, and fulfil our mission in a new and innovative way. 

In 2021 we have launched our new service model, and are developing a new website for Willow, which will allow us to show our impact and tell our story in fresh ways, and engage even more with beneficiaries, supporters and partners. 

As restrictions are lifted we are also getting our fundraising events programme back up and running, with plans for exciting new events in addition to our regular events calendar, that includes the Willow Ball, Carol Concert, London Football Awards and community challenge events. 

Stewardship of our supporters has been crucial over this challenging period and will remain so to ensure our vital supporters are kept fully up to date on Willow activities and remain engaged. In the coming year we plan to focus on building the base of our fundraising pyramid, with a renewed focus on regular and individual giving programmes, and a particular emphasis on engaging beneficiaries to become fundraisers and supporters. 

Resuming our strategy for retail growth will also feed into longer term sustainability for Willow. Throughout all our activities, continuing evaluation will ensure we are focussing resources on activities that deliver a good return on investment. 



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Kimberley is 35, lives in Belfast and has been diagnosed with cervical cancer. She chose to go to an aqua park resort for her Special Day with her family in November 2020. 

_“Cancer stops your whole life. It has been a whirlwind: I had to hand over my hairdressing business to an employee to run and also accept that I wouldn't see my children very much whilst going through treatment._ 

_We didn't get a lot of time to be together during my treatment, it was very numbing and took months to get_ 

_to a stage of acceptance and fight as the diagnosis was a massive shock._ 

_Our Special Day was a chance to scoop the kids up and have them all to ourselves for a few days, a reassurance that although things were a little unsettled, we had each other. We had a lovely time in our forest dome and made the most of every moment. I will be eternally grateful because I don't think we would have managed anything on this scale if it wasn't for the strength and support from Willow._ 

_Spending so long shielding is very hard on the mind, so having a Special Day made us more hopeful for the future.”_ 



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## **A VERY SPECIAL TEAM** 

During 2020 we had to challenge ourselves to deliver more with less. We were able to take advantage of the government’s furlough scheme, staff took a pay reduction, and many reduced their hours. We are grateful to the whole team, who, in very challenging 

circumstances, saw Willow respond, adapt and innovate to make sure we continued to create magic moments and precious memories for our beneficiaries. 

## **Staff Remuneration Policy** 

The decision regarding pay increases is primarily informed by benchmarking our salaries through participation in the XpertHR Voluntary Sector Salary Survey and specifically for Retail, in the participation and reporting of the Charity Retail Association. 

Our priority is to ensure that salaries are paid at market level rates and we will first address any salary anomalies where this is not the case. Consideration will then be given to individual performance and position within an employee’s pay band. 

Pay increases for any individual above 10% requires further higher level approval from the Governance Committee – however this year there were no pay rises over 10%. 

The pay of the Chief Executive and Leadership Team is reviewed and approved by the Governance Committee. 

New staff are offered a salary that takes into account the skills and experience they bring to the role, the responsibility level and job function of the role, pay equality, and affordability. 

The pay of a new employee will not generally be reviewed in their first year. 

Any member of staff subject to poor performance or misconduct procedures would not be eligible for a review until the expiry of any warning. 

Any staff employed on a fixed term contract for a period of one year or less would also not be eligible for a review. 

The same terms and conditions and pension provisions apply to all staff. 

## **Remuneration** 

The Trustee Board oversees the pay, pension and benefits for the Chief Executive and Senior Leadership team through the Governance Committee. 



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During the year, we continued to participate in the XpertHR Voluntary Sector Salary Survey and specifically for Retail the Charity Retail Association Workforce Survey to inform any pay awards for our staff. Our key priority in the last year, was to restore pay to 100% and we are pleased to confirm that we achieved this in early 2021. 

## **Volunteers** 

2020 was a challenging year for all, including our volunteers.  With our retail stores closing for large periods of time and our events on hold in 2020, our volunteering numbers reduced significantly.  However, we were extremely fortunate that some of our volunteers made the switch to supporting us remotely and we were also able to welcome new volunteers remotely. Our volunteers played a significant part in assisting the charity over the course of the year and we are delighted that so many stayed with us during these uncertain times.  Despite the challenges of 2020, we were still lucky enough to be gifted with nearly 3,200 hours by our volunteers in 2020 which we estimate is an equivalent value to Willow of £28,500. 

During 2021, Willow has taken advantage of the government funded Kickstart Scheme to provide valuable staffing support in the shops where volunteer numbers had reduced due to the Covid situation. 

We now see continued opportunities for remote volunteering with Willow in conjunction with getting back to our in-person volunteering at shops, events and in our office in late 2021, meaning we can offer a broader experience to our volunteers and to work with some who would not previously have been able to support Willow in the way most suitable for them. 



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## **INCOME AND EXPENDITURE** 

## **Income** 

2020 Net Income after spending on charitable services and fundraising was an increase on 2019, resulting in a surplus of £108,000. 

Total income raised in 2020 was £2,173,000, a reduction of £1,265,000 (37%) on 2019, due to the financial impact of Covid and the associated government measures to control it. 

Income from fundraising events decreased against the prior year by £641,000, representing a 60% reduction, this was due to restrictions on holding events. 

Retail shop sales reduced by £108,000 (27%), as we had to close our shops to adhere to various local and national lockdowns. 

This has been partially covered by some limited short-term funding received from the government in the form of Furlough and Retail support - this totalled £380,000 in the year. 

## **Expenditure** 

Expenditure on raising funds reduced against last year by £798,000, representing a reduction of 38%. 

Expenditure on Fundraising Events reduced by £357,000 / 69% due to restrictions on holding events. 

Expenditure on Retail reduced by £93,000 / 35% as we restructured our Retail Team, reduced variable costs and sought support from our landlords whilst we were unable to trade. 

Expenditure on our charitable services reduced by £735,000, representing a 49% decrease as we sadly had to reduce our services to protect our beneficiaries. 



**28** 

## **Willow** ! **s fundraising model** 

Large fundraising events have, for many years provided a significant and important proportion of Willow funds. 

This has been a legacy from the charity’s beginning where the Founders Bob and Megs Wilson were able to use their sporting connections and other relationships to raise large sums for Willow. These events continue to provide a valuable source of income – but also carry significant cost and risk, whilst reducing our charitable spend ratio. 

Given the current situation with Covid and the social distancing measures in place, this has had a significant impact on income from Willow events in 2020 and whilst costs have been reduced accordingly, like many other charities in a similar position, our charitable spend ratios have reduced in the short term as we deal with the impact of the pandemic. 

A key focus for Willow, therefore is to achieve a more sustainable and balanced, fundraising model. We continue to develop other long term sustainable ways to raise funds, which will help Willow to move towards better fundraising ratios, for example developing our trusts and foundations, legacy and philanthropy programs. 

## **Reserves policy** 

All charities are required to consider how much they need to hold in reserves. 

The extent depends upon the scale and nature of the charity’s activities. 

At Willow we hold reserves to ensure that in the event of a downturn in income or substantial fluctuations in cash flow, the charity can continue to meet its commitments to Special Days and to operate at least 6 months. 

Willow holds restricted and unrestricted reserve funds. Unrestricted funds are composed of designated funds held for specific purposes and general funds that can be used for any activity in pursuit of the charitable objectives of Willow. 

Restricted funds are outstanding balances on funds that have been donated for a specific purpose. 



**29** 

At 31 December 2020 Willow held the following levels of reserves: 

|**Unrestricted funds:**|**Dec-20**|**Dec-19**|
|---|---|---|
|General funds|1,788,786|1,199,715|
|**Designated funds:**|||
|Fixed Assets Reserve|36,942|66,016|
|Special Days Reserve|213,124|571,709|
|Investment Reserve|468,467|450,892|
|Restricted funds|283,150|174,733|
|**Total funds**|**2,790,469**|**2,463,065**|



Our designated reserves at the end of the year totalled £719,000 (2019 £1,089,000), they are made up from: 

- Special Days Reserve £213,000 (2019 £571,000) a reserve to specifically cover the costs of future commitments to Special Days which can often be booked up to six months in advance. The size of the reserve is set at the direct cost of delivering 50% of the annual Special Days planned. 

- Fixed Assets Reserve £37,000 (2019 £66,000) this reserve allows for the depreciation of fixed assets and is equal to the book value of the fixed assets in the group. 

- Investment Reserve £468,000 (2019 £451,000) represents 20% of our investment portfolio and allows for fluctuations in the market value of investments. 

- General Reserve £1,788,000 (2019 £1,200,000) is the balance of unrestricted funds, at year end it represented 13 months of operational expenditure. 

## **Investments** 

Willow’s governing document permits the trustees to invest the assets of the charity. These investments give assurance that Willow can continue to effectively operate in the short term in the event of a downturn in income. 

The Finance & Audit Committee review investment performance quarterly and meet with the Investment Manager, Quilter Cheviot Investment Management, every 6 months to review investment strategy. 

The Manager operates within an agreed asset allocation and guidelines on the size of individual holdings. 



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As a charity concerned with seriously ill young people, investment in manufacturers of tobacco is expressly prohibited. 

Our investments were valued at £2,342,000 on 31 December 2020 (£2,254,000 on 31 December 2019), an increase of 4%. 

## **Principle risks and uncertainties** 

Identifying and managing the possible and probable risks that a charity may face over its working life is a key part of effective governance. 

In managing risk, trustees aim to ensure that significant risks are known and monitored, to enable informed decisions to be made and timely action to be taken. 

It also means that trustees can make the most of opportunities and develop them with the confidence that any risks will be managed. 

## **How we manage risk** 

Risks are identified and given ratings from low to high according to the likelihood of their occurrence and their impact should they occur. 

The Senior Management team regularly reviews all existing risks on the register as well as emerging risks and actions to mitigate risks. 

The key risks are reviewed quarterly at each Finance and Audit Committee meeting and the full risk register is reviewed annually by the trustees. 

The trustees are satisfied that key risks have been identified; that there is sufficient internal accountability and control and that mitigating actions have been identified for each risk. All risks have been reviewed in the light of Covid. 

## **Risks rated high in probability of occurrence and impact, as at December 2020.** 

1. Failure to achieve budgeted income to support organizational plan 

2. Loss on investments 

3. Loss of Major Donors 

## **What we do to manage these risks** 

1.  Diversify income streams 

2.  Annual income generation activity plan monitored monthly 

3.  Income pipelines carefully monitored 



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4.  Investment Reserves 

5.  Professional Investment Managers 

6.  Investment performance regularly reviewed by Finance & Audit Committee 

7.  Bi-annual meeting with Investment Managers 

8.  Careful and active stewardship of existing major donors 

9.  Increase numbers of philanthropic and transactional partners 

10. Decrease reliance on major donors 



**32** 

## **INDEPENDENT AUDITOR** ! **S REPORT TO THE MEMBERS OF THE WILLOW FOUNDATION** 

## **Opinion** 

We have audited the financial statements of Willow Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise the consolidated and parent charitable company statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the 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: 

- Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2020 and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure, for the year then ended 

- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice 

- Have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulation 2006 (as amended) 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 



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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 Willow Foundation’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 trustees’ 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

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

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

- The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements 



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- The trustees’ annual report has been prepared in accordance with applicable legal requirements 

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

In the light of the knowledge and understanding of the group and the parent charitable company and its 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 in relation to which the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: 

- Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- The parent charitable company financial statements are not in agreement with the accounting records and returns; or 

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

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

- The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report. 

## **Responsibilities of trustees** 

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



**35** 

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

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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

## **Capability of the audit in detecting irregularities** 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: 

- We enquired of management which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to: 

   - § Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; 

   - § Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; 

   - § The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations. 

- We inspected the minutes of meetings of those charged with governance. 

- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the 



**36** 

financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience. 

- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. 

- We reviewed any reports made to regulators. 

- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. 

- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. 

- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. 

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

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



**37** 

## **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 section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. 

Judith Miller (Senior statutory auditor) 

14 September 2021 

for and on behalf of Sayer Vincent LLP, Statutory Auditor 

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL 

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006 



**38** 

## **WILLOW FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES** 

(Incorporating an income and expenditure account) 

## **For the year ended 31 December 2020** 

|Note<br>**Income from:**<br>Donations and legacies<br>3<br>Fundraising events<br>4<br>Retail shop sales<br>4<br>Other trading activities<br>4<br>Investments<br>5<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities: Special Days<br>6<br>Charitable activities: Treat Packs<br>6<br>**Total expenditure**<br>**Net income expenditure before**<br>**net gains / (losses) on**<br>**investments**<br>7<br>Net gains on investments<br>13<br>**Net income for the year before**<br>**other recognised gains and**<br>**losses**<br>Gains / (losses) on sale of fixed<br>assets<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|Unrestricted<br>£<br>1,010,351<br>424,540<br>289,115<br>16,496<br>46,338<br>**1,786,840**<br>1,282,780<br>487,799<br>17,016<br>**1,787,595**<br>(755)<br>224,124<br>223,369<br>(4,382)<br>218,987<br>2,288,332<br>**2,507,319**|Restricted<br>£<br>386,113<br>-<br>-<br>-<br>-<br>**386,113**<br>7,276<br>185,443<br>84,977<br>**277,696**<br>108,417<br>**-**<br>108,417<br>-<br>108,417<br>174,733<br>**283,150**|**2020**<br>**Total**<br>**£**<br>**1,396,464**<br>**424,540**<br>**289,115**<br>**16,496**<br>**46,338**<br>**2,172,953**<br>**1,290,056**<br>**673,242**<br>**101,993**<br>**2,065,291**<br>**107,662**<br>**224,124**<br>**331,786**<br>**(4,382)**<br>**327,404**<br>**2,463,065**<br>**2,790,469**|2019<br>Total<br>£<br>1,895,616<br>1,065,747<br>397,233<br>26,077<br>52,926|
|---|---|---|---|---|
|||||3,437,599|
|||||2,088,166<br>1,509,905<br>-|
|||||3,598,071|
|||||(160,472)<br>299,537|
|||||139,065<br>-|
|||||139,065<br>2,324,000|
|||||2,463,065|



All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 22 to the financial statements. 



**39** 

## **WILLOW FOUNDATION PARENT CHARITY STATEMENT OF FINANCIAL ACTIVITIES** 

(Incorporating an income and expenditure account) 

## **For the year ended 31 December 2020** 

|Note<br>**Income from:**<br>Donations and legacies<br>3<br>Fundraising events<br>4<br>Retail shop sales<br>4<br>Other trading activities<br>4<br>Investments<br>5<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities: Special Days<br>6<br>Charitable activities: Treat Packs<br>6<br>**Total expenditure**<br>**Net income / (expenditure) before**<br>**net gains / (losses) on investments**<br>Net gains on investments<br>13<br>**Net income for the year before**<br>**other recognised gains and losses**<br>Gains / (losses) on sale of fixed<br>assets<br>Loss on transfer of reserves from<br>Willow Retail<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|Unrestricted<br>£<br>1,010,351<br>424,540<br>289,115<br>16,496<br>46,338<br>**1,786,840**<br>1,282,780<br>487,799<br>17,016<br>**1,787,595**<br>(755)<br>224,124<br>223,369<br>(4,382)<br>-<br>218,987<br>2,288,330<br>**2,507,317**|Restricted<br>£<br>386,113<br>-<br>-<br>-<br>-<br>**386,113**<br>7,276<br>185,443<br>84,977<br>**277,696**<br>108,417<br>**-**<br>108,417<br>-<br>-<br>108,417<br>174,733<br>**283,150**|**2020**<br>**Total**<br>**£**<br>**1,396,464**<br>**424,540**<br>**289,115**<br>**16,496**<br>**46,338**<br>**2,172,953**<br>**1,290,056**<br>**673,242**<br>**101,993**<br>**2,065,291**<br>**107,662**<br>**224,124**<br>**331,786**<br>**(4,382)**<br>**-**<br>**327,404**<br>**2,463,063**<br>**2,790,467**|2019<br>Total<br>£<br>1,895,616<br>1,065,747<br>397,233<br>26,077<br>52,926|
|---|---|---|---|---|
|||||3,437,599|
|||||2,088,166<br>1,509,905<br>-|
|||||3,598,071|
|||||(160,472)<br>299,537|
|||||139,065<br>-<br>(228,253)|
|||||(89,188)<br>2,552,251|
|||||2,463,063|



All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 22 to the financial statements. 



**40** 

## **WILLOW FOUNDATION BALANCE SHEETS** 

**As at 31 December 2020** 

|Note<br>**Fixed assets:**<br>Tangible assets<br>12<br>Investments<br>13<br>**Current assets:**<br>Stock<br>15<br>Debtors<br>16<br>Cash at bank and in hand<br>Creditors: amounts falling due within<br>one year<br>17<br>**Net current assets**<br>**Total net assets**<br>**Funds:**<br>22<br>Restricted income funds<br>Unrestricted income funds:<br>Designated funds<br>General funds<br>Total unrestricted<br>funds<br>**Total funds**|**The group**<br>**2020**<br>2019<br>**£**<br>**£**<br>**36,942**<br>66,016<br>**2,342,334**<br>2,254,460<br>**2,379,276**<br>2,320,476<br>**7,072**<br>6,863<br>**318,755**<br>372,355<br>**775,228**<br>170,215<br>**1,101,055**<br>549,433<br>**689,862**<br>406,844<br>**411,193**<br>142,589<br>**2,790,469**<br>2,463,065<br>**283,150**<br>174,733<br>**718,533**<br>1,088,617<br>**1,788,786**<br>1,199,715<br>**2,507,319**<br>2,288,332<br>**2,790,469**<br>2,463,065|**The charity**<br>**2020**<br>2019<br>**£**<br>£<br>**36,942**<br>66,016<br>**2,342,334**<br>2,254,460<br>**2,379,276**<br>2,320,476<br>**7,072**<br>6,863<br>**319,254**<br>374,654<br>**774,727**<br>167,914<br>**1,101,053**<br>549,431<br>**689,862**<br>406,844<br>**411,191**<br>142,587<br>**2,790,467**<br>2,463,063<br>**283,150**<br>174,733<br>**718,533**<br>1,088,617<br>**1,788,784**<br>1,199,713<br>**2,507,317**<br>2,288,330<br>**2,790,467**<br>2,463,063|**The charity**<br>**2020**<br>2019<br>**£**<br>£<br>**36,942**<br>66,016<br>**2,342,334**<br>2,254,460<br>**2,379,276**<br>2,320,476<br>**7,072**<br>6,863<br>**319,254**<br>374,654<br>**774,727**<br>167,914<br>**1,101,053**<br>549,431<br>**689,862**<br>406,844<br>**411,191**<br>142,587<br>**2,790,467**<br>2,463,063<br>**283,150**<br>174,733<br>**718,533**<br>1,088,617<br>**1,788,784**<br>1,199,713<br>**2,507,317**<br>2,288,330<br>**2,790,467**<br>2,463,063|
|---|---|---|---|
||||2,320,476<br>6,863<br>374,654<br>167,914|
||||549,431<br>406,844|
||||142,587|
||||2,463,063|
||||174,733<br>1,088,617<br>1,199,713|
||||2,288,330|
||||2,463,063|



Approved by the trustees on 31 August 2021 and signed on their behalf by 

Richard King, Chair of Trustees Company no. 5207070 



**41** 

## **WILLOW FOUNDATION CONSOLIDATED STATEMENT OF CASH FLOWS** 

|**For the year ended 31 December 2020**<br>Note<br>**Cash flows from operating activities**<br>**Net cash provided by / (used in) operating**<br>**activities**<br>23<br>**Cash flows from investing activities:**<br>Dividends, interest and rents from investments<br>Purchase of fixed assets<br>Proceeds from sale of investments<br>Purchase of investments<br>(Increase)/decrease in cash in investment portfolio<br>**Net cash provided by / (used in) investing**<br>**activities**<br>**Change in cash and cash equivalents in the**<br>**year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the year-end**|**2020**<br>**£**<br>**£**<br>**432,097**<br>**46,338**<br>**(9,672)**<br>**788,746**<br>**(583,320)**<br>**(69,176)**<br>**172,916**<br>**605,013**<br>**170,215**<br>**775,228**|<br>£<br>52,926<br>(41,288)<br>282,192<br>(481,808)<br>159,464|2019<br>£<br>77,826<br>(28,514)|
|---|---|---|---|
||||49,312<br>120,903|
||||170,215|





**42** 

## **WILLOW FOUNDATION** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

**For the year ended 31 December 2020** 

## **1: Accounting policies** 

## **a) Statutory information** 

Willow Foundation is a charitable company limited by guarantee and is incorporated in the UK. The registered office address is Gate House, Fretherne Rd, Welwyn Garden City AL8 6NS. 

## **b) Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

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

These financial statements consolidate the results of the charitable company and its whollyowned subsidiary Willow Events Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the companies are disclosed in the notes of the charitable company's financial statements, which include a statement of financial activities as well as a balance sheet. 

## **c) Public benefit entity** 

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

## **d) Going concern** 

The financial statements have been prepared on the basis that Willow Foundation has adequate resources to continue in operational existence for the foreseeable future (going concern basis), with assets and liabilities recognised as they will be realised and discharged in the normal course of business.  Covid-19 significantly affected activities during 2020 and 



**43** 

has continued to impact activities during 2021.  However the going concern basis is still appropriate because: 

- The charity shops were closed during lockdowns but have now reopened with sales back at or above their pre-lockdown level.  Fundraising income has reduced and is at a lower level during 2021 but the charity has scaled back spend to allow for this; 

- A significant proportion of expenditure is discretionary.  The charity scaled back its Special Day services and restructured in late 2020, making a number of roles redundant; 

- The unrestricted general reserve remains above target level; 

- The Group has a high level of valuable assets including its investment portfolio. Investments suffered a large decrease in value early in 2020 but this was all recovered by the end of the year; 

- The cash position is positive.  A bank loan for £450,000 was drawn down in late 2020 and ensures that Willow has cash available to support its operations. 

Management have undertaken detailed forecasting and sensitivity analysis to December 2022 and the trustees have considered uncertainties and liquidity risks.  The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. 

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 

## **e) Income** 

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. 

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered 



**44** 

probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. 

## **f) Donations of gifts, services and facilities** 

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so please refer to the trustees’ annual report for more information about their contribution. 

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **g) Interest receivable** 

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

## **h) Fund accounting** 

Restricted funds are to be used for specific purposes as laid down by the donor.  Expenditure which meets these criteria is charged to the fund. 

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes without any more specific purpose being laid down by the donor. 

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

## **i) Expenditure and irrecoverable VAT** 

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



**45** 

- Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities within the charitable company and its subsidiaries with a fundraising purpose.  It includes allocated support costs. 

- Expenditure on charitable activities includes the costs of delivering and promoting services undertaken to further the purposes of the charity and their associated support costs. 

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

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

## **j) Allocation of support costs** 

Resources expended are allocated to the particular activity where the cost relates directly to that activity.  However, the cost of governance and support, including staff costs within these functions, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity and is reviewed each year. 

- Charitable activity - provision of Special Days 46% • Charitable activity - provision of Treat Packs (Positivity Packs & Festive Packs) 5% • Generating funds 49% 

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.  Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity. 

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

## **k) Operating leases** 

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

## **l) Tangible fixed assets** 

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. 



**46** 

Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. 

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet. 

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

- Land and buildings 

   - 50 years 

- Leasehold improvements term of lease 

- Furniture, equipment and software 

- 3 years 

## **m) Listed investments** 

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

## **n) Investments in subsidiaries** 

Investments in subsidiaries are at cost. 

## **o) Stocks** 

Purchased stocks are stated at the lower of cost and net realisable value.  In general, cost is determined on a first in first out basis and includes transport and handling costs.  Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation.  Provision is made where necessary for obsolete, slow moving and defective stocks.  Donated items of stock, held for distribution or resale, are not included in the financial statements until they are sold or distributed. 



**47** 

## **p) Debtors** 

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

## **q) Cash at bank and in hand** 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.  Cash balances exclude any funds held by our investment managers for reinvestment, which are included in the value of investments. 

## **r) Creditors and provisions** 

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

## **s) Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.  Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **t) Pensions** 

The charity's policy is to operate a group personal pension scheme compliant with  autoenrolment requirements and to contribute  a maximum of 5% of the employee's gross salary to this scheme or to another defined contribution personal pension scheme of choice as long as the employee matches the employer contribution.  The assets of the schemes are held separately from those of the charity in independently administered funds. 



**48** 

## **2: Detailed comparatives for the statement of financial activities** 

|**The Group**<br>**Income from:**<br>Donations and legacies<br>Fundraising events<br>Retail shop sales<br>Other trading activities<br>Investments<br>**Total income**<br>**Expenditure on:**<br>Raising funds in the parent charity<br>Charitable activities: Special Days<br>**Total expenditure**<br>**Net expenditure before net gains on investments**<br>Net gains on investments<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|Unrestricted<br>£<br>1,299,805<br>1,065,747<br>397,233<br>26,077<br>52,926<br>2,841,788<br>2,083,166<br>1,090,690<br>3,173,856<br>(332,068)<br>299,537<br>(32,531)<br>2,320,863<br>2,288,332|Restricted<br>£<br>595,811<br>-<br>-<br>-<br>-<br>595,811<br>5,000<br>419,215<br>424,215<br>171,596<br>-<br>171,596<br>3,137<br>174,733|2019<br>Total<br>£<br>1,895,616<br>1,065,747<br>397,233<br>26,077<br>52,926|
|---|---|---|---|
||||3,437,599|
||||2,088,166<br>1,509,905|
||||3,598,071|
||||(160,472)<br>299,537|
||||139,065<br>2,324,000|
||||2,463,065|





**49** 

## **Detailed comparatives for the statement of financial activities (continued)** 

|**The Charity**<br>**Income from:**<br>Other donations and legacies<br>Other trading activities<br>Investments<br>**Total income**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities: Special Days<br>**Total expenditure**<br>**Net income / (expenditure) for the year before net gains on**<br>**investments**<br>Net gains on investments<br>**Net income / (expenditure) for the year before other**<br>**recognised gains and losses**<br>Loss on transfer of reserves from Willow Retail<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|Unrestricted<br>£<br>1,299,805<br>1,489,057<br>52,926<br>2,841,788<br>2,083,166<br>1,090,690<br>3,173,856<br>(332,068)<br>299,537<br>(32,531)<br>(228,253)<br>(260,784)<br>2,549,114<br>2,288,330|Restricted<br>£<br>595,811<br>-<br>-<br>595,811<br>5,000<br>419,215<br>424,215<br>171,596<br>-<br>171,596<br>-<br>171,596<br>3,137<br>174,733|Total<br>£<br>1,895,616<br>1,489,057<br>52,926|
|---|---|---|---|
||||3,437,599|
||||2,088,166<br>1,509,905|
||||3,598,071|
||||(160,472)<br>299,537|
||||139,065<br>(228,253)|
||||(89,188)<br>2,552,251|
||||2,463,063|





**50** 

## **3: Income from donations and legacies** 

|Gifts<br>Government grants<br>Legacies<br>Donated services|Unrestricted<br>Restricted<br>£<br>£<br>629,632<br>344,690<br>380,309<br>-<br>410<br>-<br>-<br>41,423<br>1,010,351<br>386,113|**2020**<br>**Total**<br>**£**<br>**974,322**<br>**380,309**<br>**410**<br>**41,423**<br>**1,396,464**|Unrestricted<br>£<br>1,298,519<br>-<br>1,286<br>-<br>1,299,805|Restricted<br>£<br>342,446<br>-<br>-<br>253,365<br>595,811|2019<br>Total<br>£<br>1,640,965<br>-<br>1,286<br>253,365|
|---|---|---|---|---|---|
||||||1,895,616|



All donations and legacies were received by the parent charity. During 2020, government grants consisted of £251,641 received from the Coronavirus Job Retention Scheme and £128,668 received from the Retail, Hospitality and Leisure Grant Fund. 

## **4: Income from other trading activities** 

|Fundraising events<br>Retail shops<br>Sale of merchandise<br>Raffles and other trading|Unrestricted<br>Restricted<br>£<br>£<br>424,540<br>-<br>289,115<br>-<br>4,395<br>-<br>12,101<br>-<br>730,151<br>-|**2020**<br>**Total**<br>**£**<br>**424,540**<br>**289,115**<br>**4,395**<br>**12,101**<br>**730,151**|Unrestricted<br>£<br>1,065,747<br>397,233<br>7,134<br>18,943<br>1,489,057|Restricted<br>£<br>-<br>-<br>-<br>-<br>-|2019<br>Total<br>£<br>1,065,747<br>397,233<br>7,134<br>18,943|
|---|---|---|---|---|---|
||||||1,489,057|



All income was received by the parent charity. 

## **5: Income from investments** 

|Investment portfolio<br>Bank interest|Unrestricted<br>Restricted<br>£<br>£<br>46,187<br>-<br>151<br>-<br>46,338<br>-|**2020**<br>**Total**<br>**£**<br>**46,187**<br>**151**<br>**46,338**|Unrestricted<br>£<br>52,624<br>302<br>52,926|Restricted<br>£<br>-<br>-<br>-|2019<br>Total<br>£<br>52,624<br>302|
|---|---|---|---|---|---|
||||||52,926|



All investment portfolio income and bank interest was received in the parent charity. 



**51** 

## **6a: Analysis of expenditure (current year)** 

|**The Group and Charity**<br>Staff costs (Note 8)<br>Charitable activities<br>Generating voluntary<br>income<br>Fundraising events<br>Merchandising and raffles<br>Running retail shops<br>Investment management<br>Audit and accountancy<br>Other governance costs<br>Communications<br>Premises, facilities & IT<br>General management &<br>HR<br>Financial administration<br> <br>Support costs<br>Governance costs<br> <br>**Total expenditure 2020**<br> <br>Total expenditure 2019|Cost of<br>raising<br>funds<br>£<br>628,077<br>-<br>49,964<br>158,315<br>4,315<br>174,163<br>12,120<br>-<br>-<br>-<br>-<br>-<br>-<br> <br>1,026,954<br>255,454<br>7,648<br> <br>**1,290,056**<br> <br>2,088,166|Charitable<br>activities:<br>Special<br>Days<br>£<br>288,012<br>138,236<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>426,248<br>239,814<br>7,180<br>**673,242**<br>1,509,905|Charitable<br>activities:<br>Treat<br>Packs<br>£<br>28,516<br>46,631<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>75,147<br>26,066<br>780<br>**101,993**<br>-|Governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>11,700<br>3,908<br>-<br>-<br>-<br>-<br>15,608<br>-<br>(15,608)<br>**-**<br>-|Support<br>costs<br>£<br>327,108<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>19,194<br>149,483<br>15,275<br>10,274<br>521,334<br>(521,334)<br>-<br>**-**<br>-|**2020**<br>**Total**<br>**£**<br>**1,271,713**<br>**184,867**<br>**49,964**<br>**158,315**<br>**4,315**<br>**174,163**<br>**12,120**<br>**11,700**<br>**3,908**<br>**19,194**<br>**149,483**<br>**15,275**<br>**10,274**<br>**2,065,291**<br>**-**<br>**-**<br>**2,065,291**<br> <br>|2019<br>Total<br>£<br>1,549,735<br>806,107<br>146,140<br>515,169<br>9,045<br>266,826<br>12,788<br>11,700<br>5,441<br>28,824<br>217,701<br>15,663<br>12,932|
|---|---|---|---|---|---|---|---|
||||||||3,598,071<br>-<br>-|
||||||||**3,598,071**|



Of the total expenditure, £1,787,595 was unrestricted (2019: £3,173,856) and  £277,696 was restricted  (2019: £424,215). 

On 1st January 2019, the activity of Willow Retail Ltd, a subsidiary of Willow Foundation, was transferred over to Willow Foundation.  The retail activity is now operated by the charity directly. 



**52** 

## **6b: Analysis of expenditure (prior year)** 

|**The Group**<br>Staff costs (Note 8)<br>Providing Special Days<br>Generating voluntary income<br>Fundraising events<br>Merchandising and raffles<br>Running retail shops<br>Investment management<br>Audit and accountancy<br>Other governance costs<br>Communications<br>Premises, facilities & IT<br>General management & HR<br>Financial administration<br>Support costs<br>Governance costs<br>**Total expenditure 2019**<br>Total expenditure 2018|Cost of<br>raising funds<br>£<br>741,170<br>-<br>146,140<br>515,169<br>9,045<br>266,826<br>12,788<br>-<br>-<br>-<br>-<br>-<br>-<br>1,691,138<br>388,115<br>8,913<br>**2,088,166**<br>2,705,387|Charitable<br>activities:<br>Special Days<br>£<br>337,310<br>806,107<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,143,417<br>358,260<br>8,228<br>**1,509,905**<br>1,584,956|Governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>11,700<br>5,441<br>-<br>-<br>-<br>-<br>17,141<br>-<br>(17,141)<br>**-**<br>-|Support<br>costs<br>£<br>471,255<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>28,824<br>217,701<br>15,663<br>12,932<br>746,375<br>(746,375)<br>-<br>**-**<br>-|**2019**<br>**Total**<br>**£**<br>**1,549,735**<br>**806,107**<br>**146,140**<br>**515,169**<br>**9,045**<br>**266,826**<br>**12,788**<br>**11,700**<br>**5,441**<br>**28,824**<br>**217,701**<br>**15,663**<br>**12,932**|
|---|---|---|---|---|---|
||||||**3,598,071**<br>**-**<br>**-**|
||||||**3,598,071**|
||||||**4,290,343**|



Of the total expenditure, £3,173,856 was unrestricted and £424,215 was restricted. 



**53** 

## **6b: Analysis of expenditure (prior year continued)** 

|**The Charity**<br>Staff costs (Note 8)<br>Providing Special Days<br>Generating voluntary income<br>Fundraising events<br>Merchandising and raffles<br>Running retail shops<br>Investment management<br>Audit and accountancy<br>Other governance costs<br>Communications<br>Premises, facilities & IT<br>General management & HR<br>Financial administration<br>Support costs<br>Governance costs<br>**Total expenditure 2019**<br>Total expenditure 2018|Cost of<br>raising funds<br>£<br>741,170<br>-<br>146,140<br>515,169<br>9,045<br>266,826<br>12,788<br>-<br>-<br>-<br>-<br>-<br>-<br>1,691,138<br>388,115<br>8,913<br>**2,088,166**<br>2,372,776|Charitable<br>activities:<br>Special<br>Days<br>£<br>337,310<br>806,107<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1,143,417<br>358,260<br>8,228<br>**1,509,905**<br>1,584,956|Governance<br>costs<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>11,700<br>5,441<br>-<br>-<br>-<br>-<br>17,141<br>-<br>(17,141)<br>**-**<br>-|Support<br>costs<br>£<br>471,255<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>28,824<br>217,701<br>15,663<br>12,932<br>746,375<br>(746,375)<br>-<br>**-**<br>-|**2019**<br>**Total**<br>**£**<br>**1,549,735**<br>**806,107**<br>**146,140**<br>**515,169**<br>**9,045**<br>**266,826**<br>**12,788**<br>**11,700**<br>**5,441**<br>**28,824**<br>**217,701**<br>**15,663**<br>**12,932**|
|---|---|---|---|---|---|
||||||**3,598,071**<br>**-**<br>**-**|
||||||**3,598,071**|
||||||**3,957,732**|



On 1st January 2019, the activity of Willow Retail Ltd, a subsidiary of Willow Foundation, was transferred over to Willow Foundation.  The retail activity is now operated by the charity directly. 



**54** 

## **7: Net incoming resources for the year** 

This is stated after charging / crediting: 

|This is stated after charging / crediting:|||||
|---|---|---|---|---|
|||**The group**|**The**|**charity**|
||**2020**|<br>2019|**2020**|2019|
||**£**|<br>£|**£**|£|
|Depreciation|**34,364**|<br>51,783|**34,364**|51,783|
|Profit / (loss) on disposal of fixed assets|**(4,382)**|<br>-|**(4,382)**|-|
|Operating lease rentals: Property|**150,557**|<br>183,466|**150,557**|183,466|
|Operating lease rentals: Vehicles|**3,540**|<br>3,320|**3,540**|3,320|
|Auditors' remuneration (excluding VAT):|||||
|Audit|**9,750**|<br>9,750|**9,750**|9,750|
|Other services|**2,650**|<br>2,250|**2,650**|1,600|



## **8: Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** 

Staff costs were as follows: 

|Salaries and wages<br>Redundancy and termination costs<br>Social security costs<br>Employer’s contribution to defined<br>contribution pension schemes<br>Other forms of employee benefits|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**1,055,778**<br>1,301,848<br>**30,605**<br>10,394<br>**87,417**<br>113,939<br>**90,390**<br>116,278<br>**7,523**<br>7,276<br>**1,271,713**<br>1,549,735|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**1,055,778**<br>1,301,848<br>**30,605**<br>10,394<br>**87,417**<br>113,939<br>**90,390**<br>116,278<br>**7,523**<br>7,276<br>**1,271,713**<br>1,549,735|
|---|---|---|
|||1,549,735|



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

|||**The group**|**and charity**|
|---|---|---|---|
|||**2020**|2019|
|||**No.**|No.|
|£60,000|- £69,999|**1**|1|
|£70,000|- £79,999|**-**|1|



The total employee benefits including NI and pension contributions of the key management personnel were £184,792 between 3 senior staff (2019: £212,718 between 3 senior staff). 

The charity trustees were not paid nor received any other benefits from employment with the charity in the year (2019: £nil).  No charity trustee received payment for professional or other services supplied to the charity (2019: £nil). 

Trustees' expenses representing the payment or reimbursement of travel and subsistence costs are potentially payable but none were claimed in 2020 (2019: £nil). 



**55** 

## **9: Staff numbers** 

The average number of employees during the year was as follows: 

Headcount basis is the average number employed during the year. 

|**Full-time equivalent staff numbers**<br>Raising funds - voluntary income<br>Raising funds - events sales<br>Raising funds - retail shop sales<br>Charitable activity: Special Days<br>Charitable activity: Treat Packs<br>Support<br>Governance<br>**Headcount**<br>Full-time staff<br>Part-time staff|**The group and charity**<br>**2020**<br>2019<br>**No.**<br>No.<br>**6.9**<br>8.8<br>**3.8**<br>4.7<br>**11.2**<br>11.2<br>**10.1**<br>12.5<br>**1.0**<br>-<br>**5.7**<br>7.7<br>**1.0**<br>1.0<br>**39.7**<br>45.9<br>**52**<br>56<br>**16**<br>26<br>**36**<br>30<br>**52**<br>56|**The group and charity**<br>**2020**<br>2019<br>**No.**<br>No.<br>**6.9**<br>8.8<br>**3.8**<br>4.7<br>**11.2**<br>11.2<br>**10.1**<br>12.5<br>**1.0**<br>-<br>**5.7**<br>7.7<br>**1.0**<br>1.0<br>**39.7**<br>45.9<br>**52**<br>56<br>**16**<br>26<br>**36**<br>30<br>**52**<br>56|
|---|---|---|
|||45.9|
|||56<br>26<br>30|
|||56|



## **10: Related party transactions** 

There are no related party transactions to disclose for 2020 (2019: none). 

## **11: Taxation** 

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.  The charity's trading subsidiary Willow Events Limited gift aids available profits to the parent charity.  Its charge to corporation tax in the year was £nil. 

No UK corporation tax was payable in 2020 (2019: £nil). 



**56** 

## **12: Tangible fixed assets** 

|**The group and charity**<br>**Cost**<br>At the start of the year<br>Additions in year<br>Disposals in year<br>At the end of the year<br>**Depreciation**<br>At the start of the year<br>Charge for the year<br>Eliminated on disposal<br>At the end of the year<br>**Net book value**<br>**At the end of the year**<br>At the start of the year|Leasehold<br>improvements<br>£<br>236,050<br>-<br>(65,095)<br>170,955<br>201,202<br>21,001<br>(61,600)<br>160,603<br>10,352<br>34,848|Fixtures &<br>fittings<br>£<br>36,519<br>480<br>(1,182)<br>35,817<br>22,149<br>4,595<br>(295)<br>26,449<br>9,368<br>14,370|Equipment,<br>furniture &<br>software<br>£<br>190,123<br>9,192<br>(22,524)<br>176,791<br>173,325<br>8,768<br>(22,524)<br>159,569<br>17,222<br>16,798|**Total**<br>**£**<br>**462,692**<br>**9,672**<br>**(88,801)**|
|---|---|---|---|---|
|||||**383,563**|
|||||**396,676**<br>**34,364**<br>**(84,419)**|
|||||**346,621**|
|||||**36,942**|
|||||**66,016**|



All of the above assets are held in the charity and used for charitable purposes. 



**57** 

## **13: Listed investments** 

|Fair value at the start of the year<br>Additions at cost<br>Disposal proceeds<br>Net gain / (loss) on change in fair value<br>Fair value at the end of the year<br>Cash held by investment broker pending reinvestment<br>Fair value at the end of the year including<br>cash<br>Investments comprise:<br>Equity shares listed in the UK<br>Equity shares listed in mainland Europe<br>Equity shares listed in the USA<br>Equity shares listed in Japan & Asia<br>Equity shares Global<br>UK bonds<br>Alternative Investments<br>Global bonds<br>Emerging markets<br>Cash|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**2,210,230**<br>1,711,077<br>**583,320**<br>481,808<br>**(788,746)**<br>(282,192)<br>**224,124**<br>299,537<br>**2,228,928**<br>2,210,230<br>**113,406**<br>44,230<br>**2,342,334**<br>2,254,460<br>**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**491,080**<br>585,425<br>**72,635**<br>115,446<br>**672,279**<br>480,229<br>**180,382**<br>144,070<br>**76,641**<br>111,962<br>**227,816**<br>315,156<br>**348,473**<br>287,969<br>**114,458**<br>115,424<br>**45,164**<br>54,549<br>**113,406**<br>44,230<br>**2,342,334**<br>2,254,460|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**2,210,230**<br>1,711,077<br>**583,320**<br>481,808<br>**(788,746)**<br>(282,192)<br>**224,124**<br>299,537<br>**2,228,928**<br>2,210,230<br>**113,406**<br>44,230<br>**2,342,334**<br>2,254,460<br>**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**491,080**<br>585,425<br>**72,635**<br>115,446<br>**672,279**<br>480,229<br>**180,382**<br>144,070<br>**76,641**<br>111,962<br>**227,816**<br>315,156<br>**348,473**<br>287,969<br>**114,458**<br>115,424<br>**45,164**<br>54,549<br>**113,406**<br>44,230<br>**2,342,334**<br>2,254,460|
|---|---|---|
|||2,254,460|





**58** 

## **14: Subsidiary undertakings** 

The charitable company owns the whole of the issued ordinary share capital of Willow Events Limited (Company Number 05352056) and Willow Retail Limited (Company Number 09182367), both companies registered in England. On 1st January 2019, the activity of Willow Retail Ltd was transferred over to Willow Foundation. Willow Retail Limited was dormant during 2019 and 2020 and will be closed down when appropriate. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of Willow Events Ltd is shown below: 

|**Willow Events Ltd**<br>Turnover<br>Cost of sales<br>Gross profit<br>Administrative expenses<br>Other operating income<br>Operating profit<br>Interest payable<br>Profit on ordinary activities<br>Gift aid to parent undertaking<br>Profit / (loss) for the financial year<br>The aggregate of the assets, liabilities and funds was:<br>Assets<br>Liabilities<br>Funds|**2020**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**500**<br>**(499)**<br>**1**|2019<br>£<br>-<br>-|
|---|---|---|
|||-<br>-<br>-|
|||-<br>**-**|
|||-<br>-|
|||-|
|||2,300<br>(2,299)|
|||1|



Willow Events Ltd was dormant during the years 2019 and 2020.  It is being kept open in the expectation of potential future trading activity. 



**59** 

## **15: Stock** 

Finished goods 

|**The group and charity**|**The group and charity**|
|---|---|
|**2020**|2019|
|**£**|£|
|**7,072**|6,863|
|**7,072**|6,863|



## **16: Debtors** 

|Trade debtors<br>Other debtors<br>Prepayments<br>Accrued income|**The group**<br>**2020**<br>2019<br>**£**<br>£<br>**24,326**<br>82,275<br>**28,113**<br>53,011<br>**159,754**<br>191,787<br>**106,562**<br>45,282<br>**318,755**<br>372,355|**The charity**<br>**2020**<br>2019<br>**£**<br>£<br>**24,825**<br>84,574<br>**28,113**<br>53,011<br>**159,754**<br>191,787<br>**106,562**<br>45,282<br>**319,254**<br>374,654|**The charity**<br>**2020**<br>2019<br>**£**<br>£<br>**24,825**<br>84,574<br>**28,113**<br>53,011<br>**159,754**<br>191,787<br>**106,562**<br>45,282<br>**319,254**<br>374,654|
|---|---|---|---|
||||374,654|



## **17: Creditors amounts falling due within one year** 

|Bank loans and overdrafts<br>Trade creditors<br>Taxation and social security<br>Other creditors<br>Accruals<br>Deferred income|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**450,000**<br>-<br>**86,059**<br>87,107<br>**18,237**<br>27,694<br>**20,092**<br>33,830<br>**45,747**<br>64,271<br>**69,727**<br>193,942<br>**689,862**<br>406,844|
|---|---|



Bank loans totalling £450,000 (2020: £0) are secured against listed investments.  The loan was paid to Willow on 8 December 2020 and is included as falling due within one year because it is expected to be repaid before 8 December 2021. 



**60** 

## **18: Analysis of changes in net debt** 

## **The group and charity** 

|Cash<br>Loans falling due within one year<br>**Total**|At 1 January<br>2020<br>£<br>170,215<br>-<br>170,215|Cash flows<br>£<br>605,013<br>(450,000)<br>155,013|**At 31**<br>**December**<br>**2020**<br>**£**<br>**775,228**<br>**(450,000)**|
|---|---|---|---|
||||**325,228**|



## **19: Deferred income** 

Deferred income comprises proceeds from tickets sold for fundraising events due to take place the following year. 

|Balance at the beginning of the year<br>Amount released to income in the year<br>Amount deferred in the year<br>Balance at the end of the year|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**193,942**<br>189,950<br>**(153,200)**<br>(189,950)<br>**28,985**<br>193,942<br>**69,727**<br>193,942|**The group and charity**<br>**2020**<br>2019<br>**£**<br>£<br>**193,942**<br>189,950<br>**(153,200)**<br>(189,950)<br>**28,985**<br>193,942<br>**69,727**<br>193,942|
|---|---|---|
|||193,942|



## **20: Pension scheme** 

Willow Foundation operates a group personal pension scheme compliant with auto-enrolment requirements, provided by Royal London Mutual Insurance Society Ltd.  The charity contributes a maximum of 5% of the employee's gross salary to this scheme or to another defined contribution personal pension scheme of choice.  The employee must at least match the employer contribution.  The assets of the schemes are held separately from those of the charity in independently administered funds. 

The pension cost of these schemes during the year was £90,390 (2019: £116,278).  At 31 December 2020 £9,169 in contributions was outstanding (2019: £10,786). 



**61** 

## **21a: Analysis of group net assets between funds (current year)** 

|Tangible fixed assets<br>Investments<br>Net current assets<br>**Net assets at the end of the year**|General<br>unrestricted<br>Designated funds<br>£<br>£<br>-<br>36,942<br>1,660,743<br>681,591<br>128,043<br>-<br>**1,788,786**<br>**718,533**|Restricted<br>funds<br>£<br>-<br>-<br>283,150<br>**283,150**|**Total**<br>**funds**<br>**£**<br>**36,942**<br>**2,342,334**<br>**411,193**|
|---|---|---|---|
||||**2,790,469**|



## **21b: Analysis of group net assets between funds (prior year)** 

|Tangible fixed assets<br>Investments<br>Net current assets<br>**Net assets at the end of the year**|General<br>unrestricted<br>Designated funds<br>£<br>£<br>-<br>66,016<br>1,231,859<br>1,022,601<br>(32,144)<br>-<br>**1,199,715**<br>**1,088,617**|Restricted<br>funds<br>£<br>-<br>-<br>174,733<br>**174,733**|**Total**<br>**funds**<br>**£**<br>**66,016**<br>**2,254,460**<br>**142,589**|
|---|---|---|---|
||||**2,463,065**|





**62** 

## **22a: Movement in funds (current year)** 

|**Restricted funds:**<br>Specific beneficiaries<br>Special Days - specific illness<br>Special Days - specific areas<br>Special Days - specific age<br>Special Days - combination of<br>specific illness and/or area and/or<br>age<br>Special Days Out & Days at Home<br>for those whose Special Days were<br>put on hold due to Covid<br>Treat Packs - specific areas<br>Treat Packs - combination of<br>specific illness and / or area and /or<br>age<br>Treat Packs - non-specific<br>Charitable Service - specific illness<br>Charitable Service - specific areas<br>Charitable Service - specific age<br>Charitable Service - combination of<br>specific illness and/ or areas and/<br>or age<br>Charitable service - non-specific<br>Development of Willow website<br>Charity shops<br>**Total restricted funds**<br>**Unrestricted funds:**<br>Designated funds:<br>Fixed Assets Reserve<br>Special Days Reserve<br>Investment Reserve<br>Total designated funds<br>**General funds**<br>**Total unrestricted funds**<br>**Total funds**|At the start<br>of the year<br>£<br>-<br>779<br>40,136<br>100,818<br>3,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>30,000<br>-<br>**174,733**<br>66,016<br>571,709<br>450,892<br>1,088,617<br>1,199,715<br>2,288,332<br>2,463,065|Income &<br>gains<br>£<br>41,423<br>26,000<br>40,650<br>-<br>8,500<br>70,000<br>15,450<br>2,500<br>38,750<br>3,000<br>13,800<br>3,000<br>2,000<br>121,000<br>-<br>40<br>**386,113**<br>-<br>-<br>-<br>-<br>2,010,964<br>2,010,964<br>2,397,077|Expenditure &<br>losses<br>£<br>(41,423)<br>(22,125)<br>(30,901)<br>(57,000)<br>(10,375)<br>-<br>(13,382)<br>(602)<br>(38,750)<br>(3,000)<br>(3,778)<br>(3,000)<br>(2,000)<br>(44,084)<br>(7,236)<br>(40)<br>**(277,696)**<br>-<br>-<br>-<br>-<br>(1,791,977)<br>(1,791,977)<br>(2,069,673)|Transfers<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>18,084<br>(18,084)<br>-<br>-<br>(29,074)<br>(358,585)<br>17,575<br>(370,084)<br>370,084<br>-<br>-|**At the end**<br>**of the year**<br>**£**<br>**-**<br>**4,654**<br>**49,885**<br>**43,818**<br>**1,125**<br>**70,000**<br>**2,068**<br>**1,898**<br>**-**<br>**-**<br>**10,022**<br>**-**<br>**-**<br>**95,000**<br>**4,680**<br>**-**|
|---|---|---|---|---|---|
||||||**283,150**|
||||||**36,942**<br>**213,124**<br>**468,467**|
||||||**718,533**|
||||||**1,788,786**|
||||||**2,507,319**|
||||||**2,790,469**|





**63** 

## **22a: Movement in funds (prior year)** 

|**Restricted funds:**<br>Specific beneficiaries<br>Specific illness<br>Specific areas<br>Specific areas and illness<br>Specific age and illness<br>Specific area and age<br>Specific age<br>Development of Willow website<br>Set up of Letchworth charity shop<br>**Total restricted funds**<br>**Unrestricted funds:**<br>Designated funds:<br>Fixed Assets Reserve<br>Special Days Reserve<br>Retail Development Reserve<br>Investment Reserve<br>Total designated funds<br>**General**<br>**funds**<br>**Total unrestricted funds**<br>**Total funds**|At the start<br>of the year<br>£<br>-<br>2,029<br>1,108<br>-<br>-<br>-<br>-<br>-<br>-<br>3,137<br>76,511<br>612,313<br>291,226<br>382,954<br>1,363,004<br>957,859<br>2,320,863<br>2,324,000|Income &<br>gains<br>£<br>253,365<br>15,000<br>116,128<br>6,000<br>4,000<br>3,000<br>163,318<br>30,000<br>5,000<br>595,811<br>-<br>-<br>-<br>-<br>-<br>3,141,325<br>3,141,325<br>3,737,136|Expenditure &<br>losses<br>£<br>(253,365)<br>(16,250)<br>(77,100)<br>(6,000)<br>(4,000)<br>-<br>(62,500)<br>-<br>(5,000)<br>(424,215)<br>-<br>-<br>-<br>-<br>-<br>(3,173,856)<br>(3,173,856)<br>(3,598,071)|Transfers<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(10,495)<br>(40,604)<br>(291,226)<br>67,938<br>(274,387)<br>274,387<br>-<br>-|**At the end**<br>**of the year**<br>**£**<br>**-**<br>**779**<br>**40,136**<br>**-**<br>**-**<br>**3,000**<br>**100,818**<br>**30,000**<br>**-**|
|---|---|---|---|---|---|
||||||**174,733**|
||||||**66,016**<br>**571,709**<br>**-**<br>**450,892**|
||||||**1,088,617**|
||||||**1,199,715**|
||||||**2,288,332**|
||||||**2,463,065**|



## **Purposes of restricted funds** 

The 'Specific Beneficiaries' restricted fund relates to discounts and gifts in kind which are given for a specific beneficiary's Special Day or Treat Pack. 

The next Special Days, Treat Packs and Charitable Service restricted funds listed are all funds given for charitable activities of a particular kind.  Some donors restricted the activity to certain types of Special Day only, to Special Days only and some to Treat Packs only whereas some restricted it to any service provided to the beneficiaries.  Within these categories, donors have chosen to restrict to benefit people from a particular geographical area, a particular age group or suffering a particular type of illness - or some combination of these factors. 



**64** 

The development of Willow website restricted fund is to assist the charity in producing a new updated website.  During 2020 we identified a more cost-effective way to develop a new website and therefore the donor agreed that we could transfer part of this fund to spend against our charitable service instead. 

## **Purposes of designated funds** 

The Fixed Assets Reserve represents the net book value of the leasehold improvements in the building occupied by the charity or its subsidiaries and the furniture, software and equipment owned by the group.  Funds tied up in these assets are not available for spending on Special Days. 

The Special Days Reserve represents the commitments made by the charity to fulfil applications in progress.  Typically applications in progress are equivalent to approximately half a year's applications. 

The Retail Development Reserve represented money set aside to invest in setting up charity shops through our subsidiary company Willow Retail Ltd as a means of raising funds for the charity.  The activities of Willow Retail Ltd were transferred into the parent charity on 1st January 2019 including the carried forward loss within Willow Retail.  Therefore the retail development reserve was no longer required at the end of 2019. 

The Investment Reserve is an ongoing fund to protect the provision of Special Days from downward fluctuations in investment markets.  Net investment gains are added to this fund in subsequent years subject to a maximum of 20% of the value of the investment portfolio. 

## **23: Reconciliation of net income to net cash flow from operating activities** 

|**Net income for the reporting period**<br>**(as per the statement of financial activities)**<br>Depreciation charges<br>(Gains)/losses on investments<br>Dividends, interest and rent from<br>investments<br>(Profit)/loss on the disposal of fixed<br>assets<br>(Increase)/decrease in stocks<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>**Net cash provided by operating activities**|**2020**<br>**£**<br>**327,404**<br>**34,364**<br>**(224,124)**<br>**(46,338)**<br>**4,382**<br>**(209)**<br>**53,600**<br>**283,018**<br>**432,097**|2019<br>£<br>139,065<br>51,783<br>(299,537)<br>(52,926)<br>-<br>(1,502)<br>358,839<br>(117,896)|
|---|---|---|
|||77,826|





**65** 

## **24: Operating lease commitments** 

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

|<br> <br>Less than one year<br>One to five years|**Vehicles**<br>**2020**<br>2019<br>**£**<br>£<br>**3,564**<br>3,320<br>**5,940**<br>2,462<br>**9,504**<br>5,782|**Property**<br>**2020**<br>2019<br>**£**<br>£<br>**155,706**<br>71,236<br>**855,509**<br>62,486<br>**1,011,215**<br>133,722|**Property**<br>**2020**<br>2019<br>**£**<br>£<br>**155,706**<br>71,236<br>**855,509**<br>62,486<br>**1,011,215**<br>133,722|
|---|---|---|---|
||||133,722|



## **25: Legal status of the charity** 

The charity is a company limited by guarantee and has no share capital.  The liability of each member in the event of winding up is limited to £1. 



**66** 

## **GOVERNANCE** 

## **Legal Structure and purpose** 

Willow is a charitable company limited by guarantee (registered number 5207070) and a registered charity in England and Wales (charity number 1106746) and Scotland (charity number SC045811). 

The charity’s purpose is set out in its Memorandum and Articles of Association which were adopted on 9 August 2004 and amended on 28 February 2013 and 12 January 2015. On 1 January 2005, the assets and activities of the Willow Foundation, a charity established in 1999 and constituted by trust deed, were transferred to this charity. The charity has two wholly-owned subsidiary trading companies. 

The object of Willow is to fulfil uplifting and unforgettable Special Days for seriously ill 16 to 40 years old throughout the UK. 

## **Charity Governance Code** 

The trustees are committed to good governance and follow the Charity Governance Code to develop and ensure Willow follows high standards of governance. 

## **Public benefit** 

The trustees have taken account of the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims, objectives and planning. 

## **Subsidiary undertakings** 

Willow owns 100% of the shares in Willow Events Limited, a company established in 2005 (company no. 5352056) to undertake commercial activity of benefit to the charity.  Willow Events Limited was dormant during 2020 and future profits would be donated to the charity. 

Willow also owns 100% of the shares in Willow Retail Limited, a company established in August 2014 (company no. 9182367) to develop and run a chain of charity shops in support of Willow. Willow Retail Limited was dormant during 2020. 

## **Board of Trustees** 

The Board of Trustees is legally responsible for directing the affairs of the charity. Trustees are the directors of the company and serve for renewable terms of three years. 



**67** 

The Board comprised eight trustees as at 31 December 2020. Trustees have a wide range of skills and experience appropriate to the governance of the activities of Willow. 

The Board meets at least four times each year to regularly review and direct Willow’s strategy, budget and performance.  The day-to-day management of the charity is currently delegated by the Chairman to the Executive Team.  Specific responsibilities are also delegated to various committees described below. 

From time to time the Board reviews the skills of the Trustees against the skills required to direct the affairs of the charity. Where skill gaps are identified, succession and recruitment plans are developed and implemented. The Board of Trustees appoints all new trustees and committee members through a variety of recruitment methods including formal search and word of mouth. 

An induction programme is offered to all new trustees and further updates and training are provided as required. This includes meetings with the Founders of Willow Bob and Megs Wilson, the Chairman, members of the Executive Team and where possible a Special Day beneficiary. 

## **The Committees** 

All Willow Committees meet at least two times a year and minutes of their meetings are presented to the Board of Trustees by the Chair of each Committee. 

The Finance & Audit Committee reviews the charity’s annual financial statements, audit matters, investment performance and internal financial controls. 

The Retail Board advises on the charity’s shops and the Governance Committee advises on effective governance and Trustee Board membership. 

## **Fundraising** 

Willow uses a diverse range of fundraising activities to raise vital funds towards the delivery of our service. Our Board of Trustees and Leadership Team are committed to building trust with our supporters. 

We are registered with the Fundraising Regulator and signed up to the Fundraising Preference Service.  We did not use any professional fundraisers or commercial participators during 2020.  We monitor fundraisers and volunteers in all aspects of their fundraising and in line with the Code of Fundraising Practice and we provide materials and support to fundraisers and review and provide feedback on performance. 



**68** 

We endeavour to adhere to all codes and best practices set out by the codes and the General Data Protection Regulations. 

Our quality assurance also includes regular reviews of complaints and other feedback, as well as regular audits and mystery shopping.  In 2020 we recorded and responded to three complaints. 

We are particularly aware of the need to protect vulnerable individuals in any fundraising we undertake and have a Safeguarding Children and Vulnerable Adults policy in place which has been approved by the Board of Trustees. 

## **Going Concern Statement** 

The Trustees have reviewed the accounts as well as the charity activities, budgets and plans for 2021 and 2022, reserves positions up to the date of signing off these accounts and the group risk register. 

Covid created a very uncertain environment during 2020 and continues to create difficulties during 2021. Despite this, the Trustees have reasonable expectation that Willow will remain a going concern for the foreseeable future which is determined to be at least 12 months from the signature date of these accounts. 

## **Auditors** 

In accordance with Section 489 of the Companies Act 2006, a resolution proposing that Sayer Vincent LLP be reappointed as auditor of the charity was put to the Board of Trustees on 31 August 2021. 

## **Statement of responsibilities of the trustees** 

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

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



**69** 

- Select suitable accounting policies and then apply them consistently 

- Observe the methods and principles in the Charities SORP 

- Make judgements and estimates that are reasonable and prudent 

- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation 

The trustees are responsible for keeping adequate 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware: 

- There is no relevant audit information of which the charitable company’s auditor is unaware. 

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

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2020 was 8 (2019: 8). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity. All trustees give their time voluntarily and receive no benefits from the charity.  Any expenses reclaimed from the charity are set out in note 8 to the accounts. 



**70** 

The trustees’ annual report has been prepared in accordance with the provisions applicable 

to companies subject to the small companies’ regime. 

Approved by the Board of Trustees on 31 August 2021 and signed on its behalf by: 

Richard King 

Chairman 



**71** 

## **CHARITY INFORMATION** 

## **Life Presidents** 

Megs Wilson 

Bob Wilson OBE 

## **Ambassadors** 

Natasha Kaplinsky OBE 

Pat Jennings OBE 

Mary Nightingale 

Theo Walcott 

Jim Rosenthal 

Linda Lusardi 

David Seaman MBE 

Sam Kane 

Lee Dixon 

Gary Mabbutt MBE 

Lee Mears 

Simon McCoy 

Ian Poulter 

Gary Lewin 

Hardeep Singh Kohli 

Ian Wright MBE 

Frankie Seaman (formerly Poultney) Martin Chivers 

Ossie Ardiles 



**72** 

Katie Swan 

Alfie Boe OBE 

Leah Williamson 

Mica Paris MBE 

## **Trustees** 

Richard King – Chair 

Nicholas Aldridge 

Stewart Bennett 

Elena Ciallie Rachel Jones Martin Ryan from 18 May 2020 

Glyn Taylor 

David Waddington CBE 

John Wilson to 31 December 2020 

## **Senior Management** 

Jonathan Aves – Chief Executive 

Claire Kermode – Company Secretary, Finance, Resources and Retail Director Dominic Heath – Special Days Director 

## **Principal address and registered office** 

3rd Floor, Gate House, Fretherne Road 

Welwyn Garden City, Hertfordshire AL8 6NS 

Telephone: 01707 259777 

Fax: 01707 259289 

Web: willowfoundation.org.uk 



**73** 

## **Auditors** 

Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London EC1Y 0TL 

## **Solicitors** 

Pellys Solicitors Ltd, 18 The Causeway, Bishops Stortford CM23 2EJ 

## **Principal banker** 

NatWest Bank, 2nd floor Argyll House, 246 Regent Street, London W1P 3PB 

## **Investment managers** 

Quilter Cheviot Investment Management, Senator House, 85 Queen Victoria Street, London, EC4V 4AB.