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Charity registration number 1110500 (England and Wales) Company registration number 05335841
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 - 20 |
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
LEGAL AND ADMINISTRATIVE INFORMATION
| Directors and Trustees Senior Management Treasurer Charity number Company number Registered office Independent examiner Bankers Website |
W K Ridley O L Lee (Chair) G T Lama E M Ström D S Cutts J A Costello L S Seedhouse Victoria Coleman – Executive Director D S Cutts 1110500 05335841 93 Tabernacle Street London England EC2A 4BA David Terry FCA Ramon Lee Ltd Chartered Accountants 93 Tabernacle Street London EC2A 4BA The Co-operative Bank Plc Skelmersdale WN8 6WT The Charity Bank Limited Fosse House 182 High Street Tonbrigde TN91BE www.compassionandwisdom.org |
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024
The Trustees who are also the directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, provisions of Charities Act 2011, the Companies Act 2006 and "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)" (effective 1 January 2019).
Objectives and activities
The Foundation for Developing Compassion and Wisdom (“FDCW”) was established to support people in developing a warm heart and a wise mind. It provides training and resources to develop kindness and compassion, a deeper understanding of how our mind works and a sense of responsibility for the welfare of others.
FDCW takes inspiration from its Patron, the Dalai Lama, who said:-
When it comes to developing our understanding and increasing the positive qualities of our mind, the potential is limitless.
FDCW program content is rooted in the ancient wisdom of Buddhist philosophy and psychology as well as modern psychology and sciences of the mind such as neuroscience. FDCW courses have reached thousands of people across the world through a dedicated and growing network of more than 100 facilitators spread throughout 25 countries. It also offers a wide range of resources available for anyone to use to bring transformation and benefit throughout various sectors of society.
Achievements and performance
FDCW has had another very productive year. It has created a brand new 16 Guidelines Meditations Course focused on discussing and reflecting on core human values, inspired by its flagship program: 16 Guidelines for a Happy Life.
The course was created and piloted during 2024 with 27 pilot groups around the world and their feedback was overwhelmingly positive:-
The course manual/facilitator guide is top notch ~ relevant, well-written, practical and usable in everyday life. This is a wonderful series! - Linda, USA
Exploring basic human values has so much benefit as it’s all very simple and super relevant to living a life with
more ease. - Jonelle, New Zealand
Just as water wears away a stone so the 16 Guidelines gradually and gently change the mind and educate the
heart. – participant, Russia
Every pilot leader said they would happily lead the series again. Following this strong positive response, feedback has been incorporated and the new course will be launched in 2025.
Faculty of Trained Facilitators Grows
FDCW has a faculty of over 100 trained facilitators active across 22 countries. In 2024,16 new facilitators were trained from 4 different countries. It is vital to train facilitators who can deliver courses in their own language and within their cultural context. Two 16 Guidelines courses were held on the island of La Réunion, and for the first time, a facilitator training program was led entirely in French by a new trainer.
Meanwhile, as a result of 16 Guidelines programs running this year in Spain and Russia, students have been inspired in both countries to apply for facilitator training in 2025. A translation of the 16 Guidelines book into Russian began in 2024. Three new facilitators completed their training to become FDCW Level 3 trainers.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024
16 Guidelines in Schools
In India, FDCW’s Chair of the Board of Trustees visited Akshay School near Bodhgaya, where she witnessed firsthand the positive impact of 16 Guidelines training on both teachers and students. FDCW published an article about it here.
In Italy, the 16 Guidelines program has been active for several years, bringing this values-based approach into schools and universities. To support this work, the 16 Guidelines book was translated into Italian some years ago—and the program continues to flourish. In 2024, a new children’s book, Pronti per essere felici ("Ready to Be Happy"), inspired by the 16 Guidelines and FDCW’s Ready, Set, Happy program, was published in Italian for the first time. The book launch drew over 120 educators, who shared their experiences delivering 16 Guidelines training in schools.
There is also an initiative underway to bring 16 Guidelines training to teachers in a school in Nepal in early 2025.
Mongolia
FDCW partners with FPMT Mongolia to provide a national program of education for adults, youth and children based on the 16 Guidelines. Between 80 to 100 children enroll in classes each year. In the Ger district - an area where families often face difficult living conditions - classes focus on the 16 Guidelines alongside activities that promote positive social-emotional development for children who have limited access to resources and are considered more at risk.
To support this work, two of FDCW’s children’s programs , Happy Toolbox for Kids and Growing with 16 Guidelines , have been translated into Mongolian. A third program, Ready, Set, Happy , is being translated. In total, 500 books have been printed for use in classrooms across the region.
Russia
The 16 Guidelines program was introduced in Russia three years ago and continues to flourish, with a focus on introducing 16 Guidelines techniques to teachers and children. Students wish to apply for FDCW facilitator training program so they can share 16G tools in their own language and a Russian translation of the 16 Guidelines book is underway.
Spain
A group of teachers have integrated the 16 Guidelines into a program aimed at supporting the social reintegration of marginalized communities. Participants in the program are now sharing what they’ve learned by developing activities to support the elderly, designing exercise routines for individuals with physically demanding jobs, and developing programs for children. Project leaders report:-
We learned that introducing these Guidelines can be overwhelming, especially for those facing significant challenges. Giving participants time to understand and process each concept was key to the program’s success.
Israel
FDCW continues its partnership with Dreamers Home in Israel to train new facilitators and expand access to values-based education. Regular training has been provided so there are now 43 facilitators based in the region. FDCW also provides support and educational materials. 16 Guidelines course materials have been translated into Hebrew. Dreamers Home delivers 16 Guidelines training in a variety of settings, including a hospital near Gaza, several schools in Netanya, and in the community.
Marketing
During 2024, FDCW conducted a review of its marketing and branding to identify opportunities for improvement. The review concluded that FDCW’s message would be more effective with a refreshed, modern website. The aim was to improve functionality, elevate the visual identity, and better reflect our message of compassion through a more accessible online presence. Our comms team designed a bespoke website, hosted on a new platform, which was successfully launched in summer 2024. Since then, website traffic has increased by 277% compared to the previous year, with visitors coming from over 200 countries.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024
Fundraising
FDCW has launched a new fundraising initiative called Become a Friend of FDCW, with the goal of building a strong foundation of financial stability to support the development of new programs and resources for future generations. Friends of FDCW contribute through monthly donations, helping to sustain and expand our reach.
Our Volunteers
FDCW relies on a strong team of volunteers. All speakers, moderators and translators at the Growing Compassionate Hearts Conference and the Wisdom Dialogues series offered their time for free. One of FDCW’s trustees offered a considerable amount of her time developing courses and delivering training during the year. FDCW very much values the contributions made by its volunteers.
Public benefit statement
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PD2). The achievements and activities above demonstrate the public benefit arising through the Charity’s activities.
Financial review
The Statement of Financial Activities showed a net deficit of £64,139 (2023 – net surplus £38,738) for the year and reserves stand at £74,624 (2023 – £138,763).
The Board is delighted that the budget and funds have been managed in such a way this year so that there are surplus unrestricted funds available for allocation towards the 2025 budget.
Reserves policy
It is the policy of the Trustees to maintain free reserves at a level equivalent to at least three months running costs to enable the Charity to meet its obligations in the short term together with funds to cover any unforeseen deficits or revenue shortfalls. The trustees have estimated the reserves needed are £30,000.
Three months running costs are calculated on the basis of projected expenditure, with no allowance made for projected income. The Directors consider that the Charity’s reserves will enhance the services provided and provide financial security for the future.
As at 31st December 2024 financial statements showed reserves of £74,624 (2023 - £138,763) of which £64,624 (2023 - £124,732) was general, £10,000 (2023 - £10,000) was designated and £Nil (2023 - £4,031) was restricted. The unrestricted funds not designated or invested in tangible fixed assets held by the charity are £64,464 (2023 - £123,177).
Principal Funding Sources
FDCW receives annual funding from The Camellia Foundation. It receives regular, generous support from the Foundation for Preserving the Mahayana Tradition. FDCW also receives funding from the Chair of the Board of its trustees, Ms Oi Loon Lee.
Structure, governance and management
Governing document
Foundation for Developing Compassion and Wisdom (the word ‘Limited’ being omitted by licence from the Department of Trade) is registered as a company limited by guarantee and not having a capital divided by shares.
The company was incorporated on 18th January 2005 and is a registered charity constituted as a Limited Company under the Memorandum and Articles of Association. The charity registration number is 1110500 and the company registration number is 05335841.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024
Recruitment and appointment of Trustees
As set out in the Articles of Association the Chair of the Trustees is nominated by Foundation for Developing Compassion and Wisdom. The Directors of the organisation are also the charity trustees for the purposes of charity law.
The Trustees have no beneficial interest in the company other than as members. The Trustees are also the directors of the company. All of the Trustees are members of the company and guarantee to contribute £1 in event of winding up.
Organisation structure
FDCW has a Board of seven trustees spread across UK, Australia and Malaysia. The Executive Director reports to the trustees during quarterly meetings. The Operations Manager and the Communications and Marketing Manager report to the Executive Director.
Trustee induction and training
Trustees joining FDCW's Board receive training and necessary documentation in order to make them fully aware of FDCW's past and current activities as well as financial and risk management. All trustees have completed safeguarding training and have signed an Ethical Policy of conduct.
Risk management
The Board of Trustees carried out a review of the Risk Register in November 2024. The level of risk in the following areas were reviewed and assessed: Governance, External Risk, Regulatory and Compliance, Financial and Operations. Areas deemed to be higher risk were identified and steps put in place to address and ameliorate these.
Related parties
Ms Oi Loon Lee is the Chair of the Board of Trustees and has offered generous funding to FDCW over several years. Ms Wendy Ridley is a Trustee on the Board and offers her time for free to develop and deliver courses and training for FDCW.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024
Statement of Trustees' responsibilities
The Trustees, who are also the directors of Foundation for Developing Compassion and Wisdom for the purpose of company law, are responsible for preparing the Trustees' Report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
Company Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company 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 accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for 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 accounts may differ from legislation in other jurisdictions.
The Trustees (who are also the directors of the company for the purposes of company law) consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the 2011 Act) and under the provisions of section 477 of the Companies Act and that an independent examination is needed. The Members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
The Trustees' report was approved by the Board of Trustees and signed on its behalf by:
W K Ridley Trustee
Dated: 19 June 2025
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
I report to the Trustees on my examination of the financial statements of Foundation for Developing Compassion and Wisdom (the charitable company) for the year ended 31 December 2024.
This report is made solely to the charity's trustees, as a body, in accordance with the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my independent examination, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the Trustees of the charitable company (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charitable company as required by section 386 of the Companies Act 2006.
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
David Terry FCA
Ramon Lee Ltd Chartered Accountants
93 Tabernacle Street London EC2A 4BA 19 June 2025
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
| Current financial year Unrestricted Restricted funds funds Notes £ £ Income from: Donations and legacies 3 12,741 20,000 Charitable activities 4 7,823 - Investments 5 2,509 - Total income 23,073 20,000 Expenditure on: Raising funds 6 9,674 - Charitable activities 7 77,538 20,000 Total expenditure 87,212 20,000 Net income/(expenditure) (64,139) - Transfers between funds 4,031 (4,031) Net movement in funds 9 (60,108) (4,031) Reconciliation of funds: Fund balances at 1 January 2024 134,732 4,031 Fund balances at 31 December 2024 74,624 - |
Total 2024 £ 32,741 7,823 2,509 43,073 9,674 97,538 107,212 (64,139) - (64,139) 138,763 74,624 |
Total 2023 £ 132,791 11,070 - |
|---|---|---|
| 143,861 | ||
| 10,176 94,947 |
||
| 105,123 | ||
| 38,738 - |
||
| 38,738 100,025 |
||
| 138,763 |
All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
The notes on pages 9 to 20 form part of these financial statements.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
BALANCE SHEET
AS AT 31 DECEMBER 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 11 | 160 | 1,555 | ||
| Current assets | |||||
| Debtors | 12 | 425 | 422 | ||
| Cash at bank and in hand | 79,974 | 142,298 | |||
| 80,399 | 142,720 | ||||
| Creditors: amounts falling due within | 13 | ||||
| one year | (5,935) | (5,512) | |||
| Net current assets | 74,464 | 137,208 | |||
| Total assets less current liabilities | 74,624 | 138,763 | |||
| The funds of the charitable company | |||||
| Restricted income funds | 14 | - | 4,031 | ||
| Unrestricted funds including Designated | |||||
| funds | 15 | 74,624 | 134,732 | ||
| 74,624 | 138,763 |
The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2024.
The directors acknowledge their responsibilities for:
a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
b) preparing accounts which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the charitable company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements were approved by the Trustees on 19 June 2025 and were signed on its behalf by:
| 16... | |
|---|---|
| D S Cutts DOEDBD02425249E... |
W K Ridley C96A1A4B9AB84 16... |
| Trustee | Trustee |
Company registration number 05335841 (England and Wales)
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1 Accounting policies
Company information
Foundation for Developing Compassion and Wisdom is a private company limited by guarantee incorporated in England and Wales. The registered office is 93 Tabernacle Street, London, England, EC2A 4BA.
1.1 Accounting convention
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The principal accounting policies adopted are set out below.
1.2 Legal status of the Charity
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
1.3 Going concern
The charity’s accounts show a net deficit of £64,139 (2023 – net surplus £38,738) for the period and free reserves of £64,464 (2023 – £123,177). The charity received £20,000 funds from Camellia Foundation in February 2025 and £61,295 in June 2025 from a past funder. The Trustees are of the view that these results have secured the immediate future of the charity for the next 12 months and on this basis the charity is a going concern.
1.4 Charitable funds
The general fund comprises those monies, which may be used towards meeting the charitable objectives of the company at the discretion of the Management Board.
The designated funds are monies set aside out of general funds and designated for specific purposes by the Management Board.
The restricted funds are monies raised for, and their use restricted to, a specific purpose or donations subject to donor imposed conditions.
- 1.5 Incoming resources
All income is included in the consolidated SOFA when the charity is legally entitled to it, receipt is probable and the amount can be measured with sufficient reliability.
Grant income
Grants are credited to the SOFA when the charity is entitled to the funds. Income is only deferred where there are time constraints imposed by the donor or if the funding is performance related.
Where entitlement to grants receivable is dependent upon fulfilment of conditions within the charity’s control, the income is recognised when there is sufficient evidence that conditions will be met.
Grants supporting the core activities of the charity and with no specific restrictions placed upon their use are included within donations and legacies. Grants that have specific restrictions placed upon their use are included within income from charitable activities.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
1 Accounting policies
(Continued)
Donations and legacies
Donations are recognised in the period in which they are received. Legacy income is recognised when the charity’s entitlement is judged to be probable and where the amount can be reliably measured.
Training income
Income from charitable activities include income recognised as earned (as the related goods and services are provided) under contract, in the form of training fees.
1.6 Volunteers and donated services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item 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), the general volunteer time is not recognised and refers to the trustees’ annual report for more information about their contribution.
On receipt, donated 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.
1.7 Expenditure recognition 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:
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Cost of raising funds comprises costs of seeking donations, legacies and grants and their associated support costs.
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Expenditure on charitable activities include expenditure associated with the main objectives of the charity and include both directs costs and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
- 1.8 Allocation of support costs
Support costs comprise those costs which are incurred directly in support of expenditure on the objects of the charity and include governance costs, finance, and office costs. Governance costs are those costs incurred in connection with the compliance with constitutional and statutory requirements of the charity. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 7.
1.9 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The cost of minor additions or those costing less than £250 are not capitalised.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
4 Years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
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FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
1 Accounting policies
(Continued)
1.10 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11 Financial instruments
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
1.12 Taxation
The charity is a registered charity and, therefore, is not liable for Income Tax or Corporation Tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
1 Accounting policies
(Continued)
1.13 Creditors and Provisions
Creditors and Provisions are recognised when the charitable company has a legal or constructive present obligation as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
1.14 Pension Costs
The charity operates a defined contribution pension scheme, the assets of which are held separately from those of the charity. Pension costs are charged to the SOFA in the period to which they relate.
1.15 Cash flow statement
The charitable company qualifies as a small company and advantage has been taken of the exemption provided by Statement of Financial Activities (FRS 102), not to prepare a cash flow statement.
1.16 Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities.
1.17 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.
2 Critical accounting estimates and judgements
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
3 Income from donations and legacies
| Unrestricted Restricted funds funds £ £ Donations and gifts Bodhicitta Trust 8,640 - Individual Benefactor 4 - - Other Donations 4,101 - Communication Camellia Foundation - 20,000 Donated services - - 12,741 20,000 |
Total Unrestricted Restricted 2024 funds funds £ £ £ 8,640 8,640 - - 100,000 - 4,101 5,151 - 20,000 - 18,000 - 1,000 - 32,741 114,791 18,000 |
Total 2023 £ 8,640 100,000 5,151 18,000 1,000 |
|---|---|---|
| 132,791 |
The donations in kind are recognised within income as donations, and corresponding charges included within direct project costs. The values placed on these contributions by the charity are:
- Individual – Direct project costs £Nil (2023 – £1,000)
4 Income from charitable activities
| Income from charitable activities | ||
|---|---|---|
| Unrestricted | Unrestricted | |
| funds | funds | |
| Total | Total | |
| 2024 | 2023 | |
| £ | £ | |
| Training income | ||
| CBLC Course | - | 723 |
| 16 Guidelines Programme | - | 2,698 |
| Donations in kind | 3,672 | - |
| Resource distribution | ||
| Donations in kind | - | 7,649 |
| Publication Sales | 4,151 | - |
| 7,823 | 11,070 |
The donations in kind are recognised within income as charitable activities, and corresponding charges included within direct project costs. The values placed on these contributions by the charity are:
-
Individual – Direct project costs £3,672 (2023 – £7,649).
-
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
5 Income from investments
| Unrestricted Total funds 2024 £ £ Bank Interest 2,509 2,509 2,509 2,509 Expenditure on raising funds Unrestricted Total Unrestricted funds 2024 funds £ £ £ Fundraising and publicity Staff costs 6,711 6,711 6,085 Share of support and governance costs (see note 8) Support costs 2,423 2,423 3,224 Governance costs 540 540 867 9,674 9,674 10,176 |
Total 2023 £ - |
|---|---|
| - | |
| Total 2023 £ 6,085 3,224 867 |
|
| 10,176 |
6 Expenditure on raising funds
7 Expenditure on charitable activities
| Training Neuroscience Programme Communications Resource distribution 2024 2024 2024 2024 £ £ £ £ Direct costs Staff costs 3,709 - 25,483 27,109 Direct project costs 600 - 760 4,823 Communications and IT Costs - - 5,182 - 4,309 - 31,425 31,932 Share of support and governance costs (see note 8) Support 1,556 - 11,344 11,528 Governance 347 - 2,528 2,569 6,212 - 45,297 46,029 Analysis by fund Unrestricted funds 6,212 - 25,297 46,029 Restricted funds - - 20,000 - 6,212 - 45,297 46,029 |
Total 2024 £ 56,301 6,183 5,182 |
|---|---|
| 67,666 24,428 5,444 |
|
| 97,538 | |
| 77,538 20,000 |
|
| 97,538 |
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
| 7 Expenditure on charitable activities (Con Previous year: Training Neuroscience Programme Communications Resource distribution 2023 2023 2023 2023 £ £ £ £ Direct costs Staff costs 12,742 3,042 27,872 3,043 Direct project costs 9,050 - 1,025 - 21,792 3,042 28,897 3,043 Share of support and governance costs (see note 8) Support 11,547 1,612 15,311 1,612 Governance 3,105 434 4,118 434 36,444 5,088 48,326 5,089 Analysis by fund Unrestricted funds 36,444 5,088 28,576 5,089 Restricted funds - - 19,750 - 36,444 5,088 48,326 5,089 |
tinued) Total 2023 £ 46,699 10,075 |
| 56,774 30,082 8,091 |
|
| 94,947 | |
| 75,197 19,750 |
|
| 94,947 |
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
8 Support and governance costs allocated to activities
The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Governance costs and other support costs are apportioned separately between charity’s five key activity undertaken in the year. All the general support and governance costs have been apportioned to the various charitable activities on the basis of a proportion of direct costs, allocated to each activity.
| 9 | Staff costs Depreciation Communications and IT Costs Insurance Bank Charges and Exchange differences Miscellaneous expenses Legal and Professional Costs Governance costs Analysed between: Fundraising Training Neuroscience Programme Communications Resource distribution Governance costs comprise: Staff costs Fees for Independent Examination Net Income/(Expenditure) for the year Net movement in funds is shown after charging: Depreciation of tangible fixed assets Independent Examiner's Fees Independent Examination Other Services |
2024 £ 17,531 1,395 3,525 1,072 408 1,605 1,315 5,984 32,835 2,963 1,903 - 13,872 14,097 32,835 2024 £ 3,584 2,400 5,984 2024 £ 1,395 2,400 823 3,223 |
2023 £ 18,897 1,544 6,173 656 355 4,463 1,218 8,958 |
|---|---|---|---|
| 42,264 | |||
| 4,091 14,652 2,046 19,429 2,046 |
|||
| 42,264 | |||
| 2023 £ 6,738 2,220 |
|||
| 8,958 | |||
| 2023 £ 1,544 |
|||
| 2,220 765 |
|||
| 2,985 |
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
10 Employees
The average monthly number of employees during the year was:
| 2024 | 2023 | |
|---|---|---|
| Number | Number | |
| Direct Charitable work | 2 | 2 |
| 2 | 2 | |
| 2024 | 2023 | |
| £ | £ | |
| Wages and salaries | 82,812 | 76,892 |
| Social security costs | - | 297 |
| Pension costs | 1,314 | 1,230 |
| 84,126 | 78,419 |
There were no employees whose annual emoluments were £60,000 or more.
None of the Trustees received any remuneration or reimbursement of expenses during the year (2023 - £Nil).
The key management personnel of the charity comprise the Executive Director. The total employee benefits of the key management personnel of the charity were £35,840 (2023 - £34,264).
11 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Computers | |
| £ | |
| Cost | |
| At 1 January 2024 | 7,418 |
| At 31 December 2024 | 7,418 |
| Depreciation and impairment | |
| At 1 January 2024 | 5,863 |
| Depreciation charged in the year | 1,395 |
| At 31 December 2024 | 7,258 |
| Carrying amount | |
| At 31 December 2024 | 160 |
| At 31 December 2023 | 1,555 |
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
| 12 Debtors Amounts falling due within one year: Prepayments 13 Creditors: amounts falling due within one year Other creditors Accruals |
2024 £ 425 425 2024 £ 342 5,593 5,935 |
2023 £ 422 |
|---|---|---|
| 422 | ||
| 2023 £ 342 5,170 |
||
| 5,512 |
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
14 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| Movement | in funds | Movement in funds | Movement in funds | Movement in funds | ||||
|---|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Balance at | Incoming | Resources | Transfers | Balance at | |
| 1 January | resources | expended | 1 January | resources | expended | 31 December 2024 | ||
| 2023 | 2024 | |||||||
| £ | £ | £ | £ | £ | £ | £ | £ | |
| Individual Benefactor 4 | 4,031 | - | - | 4,031 | - | - | (4,031) | - |
| Camellia Foundation | 1,750 | 18,000 | (19,750) | - | 20,000 | (20,000) | - | - |
| 5,781 | 18,000 | (19,750) | 4,031 | 20,000 | (20,000) | (4,031) | - |
Description, nature and purpose of restricted funds:
Camellia Foundation :- Towards communications and marketing department staff costs.
Individual Benefactor #4 :-The unspent balance has been transferred to unrestricted funds in accordance with the wishes of the benefactor.
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Docusign Envelope ID: 16AD9202-27C2-4B34-98A2-16098CFE6834Docusign Envelope ID: 73FE8917-1037-4C23-82D0-D96B0B89C8B1
FOUNDATION FOR DEVELOPING COMPASSION AND WISDOM
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
15 Designated funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| Balance at 1 January 2023 £ Redundancy fund 2,000 2,000 |
Transfers Balance at 1 January 2024 £ £ 8,000 10,000 8,000 10,000 |
Transfers Balance at 31 December 2024 £ £ - 10,000 - 10,000 |
Transfers Balance at 31 December 2024 £ £ - 10,000 - 10,000 |
|---|---|---|---|
| 10,000 |
Description, nature and purpose of designated funds:
Redundancy fund :- Funds set aside to cover redundancies due to two staff contracts becoming permanent.
16 Analysis of net assets between funds
| Unrestricted Designated Restricted funds funds funds £ £ £ At 31 December 2024: Tangible assets 160 - - Current assets/(liabilities) 64,464 10,000 - 64,624 10,000 - Unrestricted Designated Restricted funds funds funds £ £ £ At 31 December 2023: Tangible assets 1,555 - - Current assets/(liabilities) 123,177 10,000 4,031 124,732 10,000 4,031 |
Total 2024 £ 160 74,464 |
|---|---|
| 74,624 | |
| Total 2023 £ 1,555 137,208 |
|
| 138,763 |
17 Related party transactions
During the year Charity received donations totalling £Nil (2023 - £100,000) and donations in kind amounting to £3,672 (2023 - £6,724) from Trustees and related organisations.
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