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2020-12-31-accounts

PayPal Giving Fund UK

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Annual Report and Financial Statements

Contents

Reports

Reports
A letter from the Chair and CEO 3
Reference and administrative details of
the charity, its Trustees and advisers 4
Trustees’ report 7
Independent auditor’s report 15

Financial statements

Statement of fnancial activities 27
Balance sheet 28
Cash fow statement 29
Notes to the fnancial statements 30

PayPal Giving Fund UK

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Annual Report and Financial Statements

PayPal Giving Fund UK

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Annual Report and Financial Statements

Reference and administrative details of the charity, its Trustees and advisers

Trustees Naomi Tomkys OBE (Chair)
Eva Gustavsson (Deputy Chair)
Amit Ghosh
Sukhraj Dhadwar
Ben Chaudoir
Oktay Dogramaci
Alison Sagar (resigned 8 February 2020)
Company secretary Nick Aldridge
Staf
CEO Nick Aldridge
VP, UK and Ireland Vanessa Babouram (joined 1 April 2020)
Accountant Daisy Crawford
UK Financial Controller Anya Milligan
Client Services Manager Sharnie McCourt
Operations and Data Manager Tawheed Rahim
Marketing and Communications Executive Mimi Anim-Nyame (joined 7 January 2020)
Accounting and Operations Associate Dahnish Shiraz (joined 1 November 2020)
Registered ofce Whittaker House
Whittaker Avenue
Richmond
Surrey TW9 1EH
Website www.paypalgivingfund.org.uk
Company registration number 5507404 (England and Wales)
Charity registration number 1110538
Auditor Sayer Vincent
Invicta House
108-114 Golden Lane
London, EC1Y 0TL
Bankers Barclays Bank Plc
Onslow Hall, Little Green,
Richmond, Surrey, TW9 1QS
Solicitors Bates Wells
10 Queen Street Place
London
EC4R 1BE

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Annual Report and Financial Statements

In 2020,

team at PayPal Giving Fund.” Matt Griffiths, CEO Youth Music

PayPal Giving Fund UK

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Annual Report and Financial Statements

Introduction

Cystic Fibrosis Comfort Fund

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Annual Report and Financial Statements

The objects of PayPal Giving Fund UK

The charity’s objects are to advance all purposes that are charitable under the law of England and Wales. Our principal activity to achieve these objects is the development of partnerships with PayPal Inc and its subsidiaries, and with other leading internet businesses such as eBay, Humble Bundle, GoFundMe and Facebook. The partnerships enable the full range of UK charities to benefit from the unrestricted funds we raise through innovative customer giving programmes.

How we achieve public benefit

As PayPal Giving Fund UK is a grant-making charity, our public benefit occurs principally through the activities of those charities that receive funds from us. We believe that, given the large number of small grants we make, we maximise our public benefit by providing relatively unrestricted funding for those charities. We do not seek to impose any restrictions on our grants beyond those necessitated by our obligations to ensure our funds are spent appropriately.

We fund only those charities that comply with our published Charity Certification Policy. This includes our process to verify that the organisations we fund have charitable status in the UK, or equivalent status in jurisdictions closely connected to the UK, and that they are not subject to sanctions imposed by the UN, EU, US or other relevant authorities.

Through our partnership with PayPal, we undertake checks to ensure that charities in our directory are correctly registered, in good standing with relevant regulators, do not represent unreasonable risks, and that (where relevant) they have verified PayPal accounts so donations can be promptly granted to them. Since January 2021, we also manually review every charity prior to enrolment.

We suspend from our system any charities where we find that this is not the case.

Each year we undertake a survey of charities that received significant funds from PayPal Giving Fund, to demonstrate that they applied our funds in support of charitable purposes.

We also actively seek out opportunities to benefit the charity sector and the public in other ways, for instance by sharing our expertise in online fundraising with charities across the sector and helping to inform government and regulatory policy development on charitable giving. We also participate actively in conferences and events attended by UK charities to share our expertise.

Through our programmes we work to promote charities and charitable giving to online audiences who may have little previous involvement in the sector, for example by promoting charitable causes to PayPal’s, eBay’s and Humble Bundle’s online shopping audiences.

As such, the Trustees are confident that PayPal Giving Fund UK has complied with its duty to have due regard to the public benefit guidance published by the Charity Commission.

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Annual Report and Financial Statements

Overview of our programmes

Paul Davies, Head of Corporate Partnerships at the British Heart Foundation

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Annual Report and Financial Statements

Our partnerships during the period included the following:

PayPal makes it easy for donors to find and support their favourite charities while at home or on the go. Giving opportunities embedded in the PayPal customer experience are complemented by seasonal campaigns and promotions that forge new connections and inspire people to give more and give more often. PayPal Giving Fund enables PayPal customers in the UK to donate at checkout, through the PayPal app and through PayPal’s fundraiser hub.

GoFundMe is a crowdfunding platform that enables charity supporters to create their own unique fundraising campaigns in support of charitable causes. Our partnership with GoFundMe to the UK enables its users to create and donate to certified charity campaigns on GoFundMe. Funds raised through GoFundMe certified charity campaigns are donated to PayPal Giving Fund, and we grant those funds to charitable causes recommended in the campaigns.

Facebook enables its users to create charity fundraisers and share them with friends and family. Thanks to our partnership, Facebook users can now support any of the UK charities in PayPal Giving Fund’s directory. As with our other programs, donations are made to PayPal Giving Fund, and we then grant the funds to charity in our monthly pay-outs, subject to our policies.

eBay for Charity makes it easy for buyers and sellers to support their favourite charities in one of the world’s largest marketplaces. When a charity enrols with PayPal Giving Fund, eBay sellers can donate a portion of their sales to PayPal Giving Fund to, in turn, benefit an organisation they select, and buyers can add donations at checkout. Special features help eBay for Charity items stand out, and eBay incentivises charitable selling by crediting sales fees on charitable proceeds. Enrolled charities can also sell items on eBay, and benefit from fee credits and additional promotion.

Humble Bundle is a leading retailer of digital games and eBooks that offers its customers the opportunity to support the charities in our network with every purchase they make. Through an innovative “pay what you want” pricing model, customers can choose not only what they want to pay, but also designate a portion of the sale to be donated by Humble Bundle to PayPal Giving Fund to benefit the charity of their choice.

Thrift+ is a donation service for second-hand clothes. Individuals pack up their clothes into a recyclable ‘ThriftBag’ and send them to Thrift+ to be photographed and sold online. Proceeds are (by default) split equally between Thrift+, the donor, and a donation to PayPal Giving Fund in support of the donor’s chosen charity.

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Annual Report and Financial Statements

Our achievements in 2020

Impact of coronavirus on the charity

RSPCA

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Annual Report and Financial Statements

Donations received and charities funded

Donations increased to more than £50.9 million during the period, representing growth of 105%. A total of 2.7 million donors gave to PayPal Giving Fund during the period (0.7 million in 2019). As a result, we granted funds to 23,779 charities in 2020 (21,811 in 2019).

----- Start of picture text -----
Donations made Charities funded
£60,000,000 25,000
£50,000,000
20,000
£40,000,000
15,000
£30,000,000
10,000
£20,000,000
£10,000,000 5,000
£-
2018 2019 2020
Donations (£) Charities funded
----- End of picture text -----

We achieved this dramatic increase by enabling our donors to support a wide range of charities through our programmes with Facebook, GoFundMe, and PayPal. In 2020 more than 2.7 million people made donations to PayPal Giving Fund through PayPal’s fundraising programmes, with Give at Checkout making a large contribution to our year on year increase.

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Annual Report and Financial Statements

Other achievements

We increased the number of charities that enrolled with PayPal Giving Fund by 2,921 during 2020 (2019: 2,940). Enrolment enables charities to receive payments electronically, update their profiles, and benefit from more of our programmes, since some require enrolment by the charities. We made further telephone calls to many benefitting charities that remained unenrolled via a dedicated campaign in Q4 to ensure increased access funds already raised to benefit these charities via our partner programmes. This initiative helped reduce the overall value of uncashed cheques at a time where traditional sources of funds for charities had drastically diminished due to the impact of the pandemic.

Towards the end of the year we worked with PayPal to simplify the onboarding process by reducing the steps required, enabling charities to enrol with PayPal Giving Fund (or opt out) as part of the process of account creation and verification with PayPal. We were able to apply this change retrospectively to charities that had vetted PayPal accounts but had not yet manually completed PayPal Giving Fund enrolment. As a result, we saw the number of active enrolled charities increase from 11,875 at the end of 2020 to 17,447 charities by the end of March 2021.

During 2020 we launched a new fundraising programme with PayPal, enabling customers to make a donation while completing checkout using their PayPal accounts. We raised £2.4 million in funds (from 2.4 million individual donations of £1). Campaigns to support charities responding to the pandemic, including NHS charities and the Big Night In (run by BBC Children in Need and Comic Relief) led to our other PayPal fundraising programmes raising £7.5 million. Our holiday giving campaign encouraged PayPal customers to choose a favourite charity so they can support it more easily using PayPal, and more than 58,000 donors did so.

Overall, more than 10,000 charities have been selected as favourites, through more than 152,000 actions by PayPal customers.

The 10 charities receiving the highest total value of grants in 2020 are listed below (in alphabetical order), reflecting charities that ran significant appeals during the year, and/or were featured on our partners’ platforms.

We also supported the launch of PayPal Giving Fund Ireland in 2020, which, independently governed, benefits from staff time and expertise provided from the UK team. We are confident that the investment of our time will enable PayPal Giving Fund Ireland to support a wide range of Irish charities with significant funding, reflecting our experience in the UK.

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Annual Report and Financial Statements

Our operating costs

PayPal Giving Fund UK has increased its grants made to charities eleven-fold since 2016, from £4.5 million to £50.9 million. Our ongoing focus on efficiency and scalability has kept the increase in our cash operating costs to 47% during that time. As a proportion of grants made to charities, our cash operating costs have declined from 8.0% to 1.1% during the last 5 years.

Cash operating costs and ratio to donations

----- Start of picture text -----
£600,000 9%
8%
£500,000
7%
£400,000 6%
5%
£300,000
4%
£200,000 3%
2%
£100,000
1%
£- 0%
2016 2017 2018 2019 2020
Operating costs Operating costs as a
(excluding in-kind support) percentage of donations
----- End of picture text -----

Our plans for the future

In the current 3-year period (2019-21), we continue to focus on the following three priorities for the charity, reviewed at a strategy day attended by management and the board and refined at the subsequent board meeting:

  1. Increasing the total funds raised each year to benefit charities across our partnerships and programmes.

  2. Increasing the number and variety of charities that benefit from our programmes through a more inclusive platform that generates more value for charities.

  3. Managing our growth by building capacity and operational excellence, so we can operate our programmes effectively at greater scale.

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Annual Report and Financial Statements

The Board of Trustees

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Annual Report and Financial Statements

Codes of governance and compliance

The charitable company recognises the Code of Governance for the charity sector, and the board takes collective responsibility for upholding its principles. The charity reviews board effectiveness on a regular basis to encourage learning and professional development within the board, so that all board members can make a full contribution to governance. To support the effective discharge of Trustees’ roles and responsibilities, trustees are recruited and developed to provide expertise relating to the charitable company’s activities and operating needs.

Having reviewed the charity’s compliance with good practice as set out in the Charity Commission’s “Guide to Corporate Foundations” in 2018, determining that the charity operated with an appropriate level of independence from PayPal, we reviewed in 2019 our compliance with its new guidance for charities with a connection to a non-charity, and determined (making use of the checklist provided) that the charity operated in an appropriate way in its dealings with PayPal. We also completed our own strategic review of governance with the support of an independent expert in 2019. Although we undertook no further review of our governance in 2020, we anticipate doing so in 2021.

Fundraising standards and customer service

PayPal Giving Fund works closely with all our partners to ensure that their charitable giving programs are clearly explained to donors and charities, and do not involve any unreasonable intrusion on a person’s privacy, unreasonably persistent approaches or undue pressure to give, in the course of or in connection with fundraising for the charity.

Through ongoing collaboration regarding customer service, we monitor our fundraising activities and feedback received from donors and charities to ensure that we maintain high standards. PayPal Giving Fund now benefits from a well-established front-line customer service team within PayPal’s UK customer service organisation. We have set a service level agreement that teammates respond within one working

day to all enquiries. Our servicing was impacted by covid-19, as phone capabilities were suspended, and our teammates began working from home. By mid-2020 we had reopened all contact paths and our customer service team reliably met our servicing expectation towards the end of the year. Customer Service continues to provide assistance to charities by email and phone with plans to introduce other channels for support in 2021.

We are a member of the Fundraising Regulator’s scheme, have paid its levy on fundraising, and have committed to follow the Code of Fundraising Practice and the Fundraising Promise. We display the Fundraising Regulator’s badge on our website. We supported the Fundraising Regulator, as a member of its working group, to develop its advice and guidance for online fundraising platforms when developed, and (where relevant) have supported our partners in ensuring that their programs meet the standards and principles set out in the guidance. We note that in its annual meeting, the Fundraising Regulator highlighted the importance of clear information in online giving, to which we remain committed.

During the period PayPal Giving Fund received a total of 5 formal complaints. These related to the removal of ineligible organisations from our directory during our annual review of organisations, which disappointed several organisations that had benefited from grants in the past. We have instituted an additional up-front review of organisations to ensure that only eligible organisations are able to enrol, reducing the need to remove organisations after enrolment. We also received escalated queries regarding our donation pay-out process: these charities and donors were not immediately aware of how PayPal Giving Fund grant donations. We engaged with all charities and donors to address their complaints and concerns raised through our complaints process. We have also added FAQ’s into PayPal’s Help Centre to share pay-out and eligibility information more widely as well as updating our marketing communications We also work closely with our partners to refer and address any complaints from our joint customer base.

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Annual Report and Financial Statements

Employees

The charity aims to be an organisation where employees enjoy a sense of fulfilment and where they feel supported and developed. Employees are kept fully informed about strategy and objectives, as well as day-to-day news and events, through regular team meetings including a review of our strategy each year. All employees are encouraged to give their suggestions and views on performance and strategy.

The charity actively supports and encourages diversity and inclusion, and has a formal policy in this regard. Recruitment and promotion decisions are made on the basis of aptitude and ability, and without discrimination. In 2020 and 2021 we have focused on promoting active inclusion through conversations with our employees, including a seminar facilitated by the Centre for Inclusive Leadership.

The charity is committed to the training, career development and promotion of all employees. An individual’s performance is assessed through annual appraisal and supervision, with regular one-to-one meetings with managers to promote and enable employee engagement and development.

PayPal Giving Fund believes in rewarding staff fairly for their jobs, and fostering a positive work environment. We are also responsible for ensuring that the charity’s funds are used cost-effectively, and aim to achieve a sensible and proportionate balance in setting pay levels. Salaries are set and reviewed by line managers, in consultation with the CEO, and annual increases may be enhanced by a small element of performancerelated pay. The CEO salary is agreed by the UK board as employer, and the US board as funder.

Salaries are reviewed regularly, including when job requirements change significantly, and when the charity undertakes recruitment. In setting salaries, we consider:

We also take into account the additional responsibilities and requirements on personnel that come from delivering our aims in partnership with PayPal, and other leading internet businesses, often in a global context. Our operational funding is provided by PPGF US (and ultimately by PayPal and our other partners), rather than from donations made by the public.

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Annual Report and Financial Statements

Risk management, internal controls and delegated authority

The trustees maintain a formal risk management process to monitor and assess business risks and implement risk management strategies. This involves identifying the types of risks the charitable company faces, prioritising them in terms of potential impact and likelihood of occurrence, and deciding on means of mitigating the risks.

The trustees delegate the exercise of certain powers in connection with the management and administration of the charitable company as set out below. This is controlled by the requirement of regular reporting back to the Trustees, so that all decisions made under delegated authority can be ratified by the Trustees.

Internal controls over all forms of commitment and expenditure continue to be refined to improve efficiency, and were reviewed and updated during the period. Performance is monitored and appropriate management information is prepared and reviewed regularly by the Board.

Systems of internal control are designed to provide reasonable, but not absolute assurance against material misstatement or loss.

During the period, we actively reviewed a variety of risks facing the organisation, with trustee input at each board meeting on those risks judged to be material at the time. The risks considered by the trustees during the period included:

They include:

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Annual Report and Financial Statements

Statement of trustees’ responsibilities

The trustees (who are also directors of PayPal Giving Fund UK for the purposes of company law) are responsible for preparing the trustees’ report and 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 of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

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

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of 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.

Expenses

The charity operates a strict expenses policy, allowing reimbursement of reasonable expenses incurred by trustees and staff on the business of the Charity subject to the production of appropriate vouchers and receipts. The CEO also serves as CEO of PayPal Giving Fund’s USbased parent organisation, and in that capacity typically undertakes additional travel to the US and other countries where PayPal Giving Fund operates under the expenses policy of the US charity, although the charity did not undertake any business travel after February 2020. The CEO’s expenses are reviewed by the UK Audit Committee Chair.

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Annual Report and Financial Statements

Results for the year

Financial position

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Annual Report and Financial Statements

Reserves policy

The Trustees are satisfied that the current position provides sufficient financial certainty to continue the charitable company’s operations in the medium term. The trustees have formulated a reserves policy for the charitable company. Given the charity’s degree of financial security, the charity has a limited need to maintain financial reserves. However, reserves may still be required to:

The charity therefore maintains a minimum target level of at least 6 months’ cash running costs which total approximately £361,000 in our budget for 2021. Currently reserves are £272,478 in excess of the minimum target of which £118,883 is designated, leaving £153,595 in excess of the target level.

The charity invests its surplus reserves on a temporary basis, with a view to applying them actively to its charitable purposes. During the period we contributed £254,610 (2019 - £58,073) to reserves due to saving on travel and staffing costs.

We invest retained reserves in institutions with a view to:

We aim to have a regular flow of available funds by:

Gifts in kind

The charitable company is grateful to both PayPal UK, which has provided office space, customer service support, legal advice and waived PayPal fees contribution valued at £1,263,609 (2019 - £523,336) in the financial period, and to PPGF US, which provided technical and operational support valued at £79,163 (2019 - £64,890) in the financial period.

Approved by the Trustees and signed on their behalf by:

Naomi Tomkys OBE Chair of the Board

Approved by the Trustees on: 1 July 2020

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Annual Report and Financial Statements

Opinion

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Annual Report and Financial Statements

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on PayPal Giving Fund UK’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:

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Annual Report and Financial Statements

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 requires us to report to you if, in our opinion:

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 charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and

using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud 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:

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Annual Report and Financial Statements

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

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.

Use of our report

This report is made solely to the charitable company’s members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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.

Noelia Serrano (Senior Statutory Auditor) Date: 23 June 2021

For and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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Annual Report and Financial Statements

Statement of financial activities: Year to 31 December 2020

(incorporating an income and expenditure account)

Notes Unrestricted
funds
Restricted
funds		 2020
Total funds		 Unrestricted
funds
Restricted
funds		 2019
Total funds
£ £ £ £ £ £
Income from:
Donations
Other
Total income
Expenditure on:
Raising funds
Charitable activities
• Grants to charities
Total expenditure
Net (expenditure) income
and net movement in funds
Fund balance brought
forward
Fund balance carried forward		 2
3a
3b
 2,152,239
829		 50,941,461
—		 1,044,985
1,405		 25,026,903
—		 26,071,888
1,405
53,093,700
829
2,153,068 50,941,461 53,094,529 1,046,390 25,026,903 26,073,293
149,104
1,749,354		 —
50,941,488		 147,927
956,659		 —
25,026,780		 147,927
25,983,439
149,104
52,690,842
1,898,458 50,941,488 52,839,946 1,104,586 25,026,780 26,131,366
254,610
378,868		 (27)
6,212		 (58,196)
437,064		 123
6,089		 (58,073)
443,153
254,583
385,080
633,478 6,185 639,663 378,868 6,212 385,080

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 12a to the financial statements.

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Annual Report and Financial Statements

Balance sheet: 31 December 2020

Notes 2020
£		 2020
£		 2019
£		 2019
£
Current assets
Debtors
Cash at bank and in hand
Creditors:amounts falling
due within one year
Net current assets
Total net assets
The funds of the charity
Restricted funds
Unrestricted funds
Designated funds
General funds
Total unrestricted funds
Total charity funds		 9
10
11a		 842,464
4,909,726		 639,663 1,107,204
2,473,409		 385,080
5,752,190
(5,112,527)		 3,580,613
(3,195,533)
639,663 385,080
6,212
633,478 378,868
639,663 385,080

Approved by the Trustees and signed on their behalf by:

Naomi Tomkys OBE

Eva Gustavsson

Chair of the Board

Trustee

Approved on: 23 June 2021

Approved on: 23 June 2021

PayPal Giving Fund UK Company Limited by Guarantee

Company Registration Number: 5507404 (England and Wales) Charity Registration Number: 1110538

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Annual Report and Financial Statements

Cash flow statement: 31 December 2020

Notes 2020
£
2020
£
2019
£
2019
£
Cash fows from operating activities:
Net income / (expenditure)
(as per the statement of fnancial activities)
Decrease / (increase) in debtors
Increase in creditors
Net cash generated by operating activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of
the year
Cash and cash equivalents at the end of the
year
Analysis of cash and cash equivalents and of
net debt
Cash at bank and in hand
Total cash and cash equivalents		 A
 254,583
264,740
1,916,994
On 1
January
2020
£
2,473,409
803,157
803,157
1,670,252
2,473,409


Cash fows
£
2,436,317

On 31
December
2020
£
4,909,726
2,473,409 2,436,317 4,909,726

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Notes to the financial statements PayPal Giving Fund UK 28

Annual Report and Financial Statements

1. Accounting policies

PayPal Giving Fund UK is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

a) Statutory information

PayPal Giving Fund is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is Whittaker House, Richmond, Surrey, TW9 1EH.

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.

c) Public benefit entity

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

Critical accounting estimates and areas of judgement

The most significant areas of adjustment and key assumptions that affect items in the financial statements are to do with estimating prepayments and accruals. With respect to the next reporting period, there are no significant areas of uncertainty that affect the carrying value of assets held by the charity.

d) Going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. This is because there are sufficient reserves at the balance sheet date to continue operating the charity in the medium term.

The trustees have considered the potential impact of the ongoing Covid-19 pandemic on the future operations of the charity in coming to their conclusion on going concern. The trustees have noted the charity’s strong cash position, which would allow it to continue operations for at least the next year even in the absence of further funding.

e) Income recognition

Income is recognised in the period in which the charity is entitled to receipt, the amount can be measured reliably and it is probable that the funds will be received.

Income is deferred only when the charity has to fulfil performance related conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Donations are recognised when receivable, receipt is probable and the amount can be measured reliably by the charity.

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Annual Report and Financial Statements

f) Gifts in kind

Services and facilities donated to the charity for its own use are included in income and expenditure at their market value as at the time of the gift.

h) Fund accounting

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

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

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

i) Expenditure recognition and the basis of apportioning costs

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.

All expenditure is accounted for on an accruals basis. Expenditure comprises of:

Payment to charities of amounts received from Platform Partner Programmes.

Grants payable, which are included in the statement of financial activities when approved and when the intended recipient has either received the funds, or been informed of the decision to make a grant and has satisfied all related conditions. Grants approved but not paid for at the end of the financial period are accrued.

Other costs, representing direct and indirect expenditure incurred in order to carry out and support the primary purpose of the charity.

j) Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

k) Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

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Annual Report and Financial Statements

l) Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

m) Pensions

The charity’s employees are enrolled in a defined contribution plan.

2. Income from donations and legacies

Unrestricted
£		 Restricted
£		 2020 Total
£		 Unrestricted
£		 Restricted
£		 2019 Total
£
Donations - amounts received from
Platform Partner Programmes
Grants received
Gifts in kind
• Technical and managerial support
• Transaction processing
• Accommodation, legal and other
support
2019 Total funds		 —
809,467
79,163
1,170,319
93,290		 50,941,461
—
—
—
—		 50,941,461
809,467
79,163
1,170,319
93,290		 —
456,759
64,890
436,094
87,242		 25,026,903
—
—
—
—		 25,026,903
456,759
64,890
436,094
87,242
2,152,239 50,941,461 53,093,700 1,044,985 25,026,903 26,071,888

The charitable company is grateful to PayPal (UK) Ltd which has provided office space, customer service, transaction processing and legal support valued at £1,263,609 (2019: £523,336) in the financial period, and PPGF US and PayPal Inc., which have provided technical and managerial support valued at £79,163 (2019: £64,890).

Corresponding amounts are included within costs of charitable activities (note 3).

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Annual Report and Financial Statements

3a. Analysis of expenditure (current year)

Raising
funds
£		 Charitable
activities
£		 Governance
costs
£		 Support
costs
£		 2020 Total
£		 2019 Total
£
Staf costs (Note 5)
Charitable donations
Publicity costs
Premises costs (donated service)
Processing costs (donated service)
Technical and managerial
Audit
Other costs
Governance costs
Support costs
Total expenditure 2020
Total expenditure 2019		 91,477
—
57,627
—
—
—
—
—		 —

50,421,390
—

—

—

—

—

520,098		 —
—

—

—

—

—

16,890
—		 294,615

-

-

93,290

1,170,319

79,163
-

95,077		 386,092
50,421,390
57,627
93,290
1,170,319
79,163
16,890
615,175		 293,762
24,846,998
63,276
87,242
436,094
64,890
11,100
328,004
149,104
—
—		 50,941,488

16,890

1,732,464		 16,890
(16,890)
—		 1,732,464
—

(1,732,464)		 52,839,946

—
—		 26,131,366

—

—
149,104 52,690,842 — — 52,839,946
147,927 25,983,439 — — 26,131,366

3b. Analysis of expenditure (prior year)

Raising
funds
£		 Charitable
activities
£		 Governance
costs
£		 Support
costs
£		 2019 Total
£
293,762

24,846,998

63,276
87,242
436,094
64,890

11,100
328,004
26,131,366
Staf costs (Note 5)
Charitable donations
Publicity costs
Premises costs (donated service)
Processing costs (donated service)
Technical and managerial support
(donated service)
Audit
Other costs		 84,651
—
63,276
—
—
—
—
—		 —

24,846,998
—

—

—

—

—

—		 —
—

—

—

—

—

11,100

—		 209,111

—

—

87,242

436,094

64,890
—

328,004
147,927 24,846,998 11,100 1,125,341
Governance costs — 11,100
(11,100)
—
—
Support costs
Total expenditure 2019		 — 1,125,341 — (1,125,341) —

26,131,366
147,927 25,983,439 — —

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Annual Report and Financial Statements

4. Net income / (expenditure) for the year

This is stated after charging:

This is stated after charging:
2020
£		 2019
£
Auditor’s remuneration (excluding VAT):
• Statutory audit services
• Prior Year Under Accrual
• Other services – taxation		 10,000
1,475
1,500		 11,100
—
2,370

5. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

2020
£		 2019
£
Salaries and wages
Social security costs
Pension costs		 330,655
35,231
20,206		 252,427
26,347
14,988
386,092 293,762

The number of employee’s receiving remuneration from the charity in excess of £60,000 was as follows:

2020 No. 2019 No.
£60,000 - £70,000 3 2

Key management personnel comprise the CEO, Financial Controller and VP UK & Ireland. The total remuneration of the key management personnel, including employer national insurance and pension contributions was £228,330 (2019: £190,533).

None of the trustees received any remuneration in respect of their services during the period.

No out of pocket expenses were reimbursed to any trustees during the year (2019 - none).

6. Staff numbers

The average number of employees during the period, analysed by function, was as follows:

Full time equivalent Full time equivalent Average headcount Average headcount
2020 No. 2019 No. 2020 No. 2019 No.
Raising funds
Support		 1.8
5.3		 1.4
4.0		 1.9
5.6		 1.5
4.5
7.0 5.4 7.4 6.0

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Annual Report and Financial Statements

7. Related party transactions

PPGF US, a United States 501 (c) (3) non-profit organisation (‘PPGF US’) is the sole member of PPGF UK. During the period, PPGF US provided in-kind support totalling £79,163 (2019: £64,890) and granted the charity £690,584 (2019: £456,759). During the period the charity provided leadership services to PPGF US. PPGF UK received £75,828.

(2019: £71,832) in relation to these services.

PPGF Ireland is a related party as both PPGF UK and PPGF Ireland are subsidiaries of PPGF US. During the year, PPGF UK provided in kind support of £658 to PPGF Ireland (2019: £nil).

While PPGF UK enables and encourages trustees to make donations through its programmes, such donations are regranted to their recommended charities in the normal course of the charity’s business, therefore the charity does not consider it necessary to track and report on such donations.

Other than those transactions stated above, there were no other related party transactions during the year.

Several trustees of the charity hold remunerated positions in related organisations: PayPal, and PPGF US. The charity has actively sought out trustees from those organisations to maximise our charitable impact by identifying shared opportunities. The current trustees include Oktay Dogramaci (board member, PPGF US and Employee of PayPal Inc.), Ben Chaudoir (Director of Professional Services, PayPal) and Eva Gustavsson (Government Relations Senior Director, PayPal).

8. Taxation

PayPal Giving Fund UK is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

9. Debtors

2020
£		 2019
£
Gift aid recoverable
Accrued donations from Platform Partner Programmes
Other accrued income		 797,005
—
45,459		 380,851

651,800
74,553
842,464 1,107,204

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Annual Report and Financial Statements

10. Creditors: amounts falling due within one year

2020
£		 2019
£
Taxation and social security
Donations to charities
Other creditors
Accruals		 13,750
5,046,143
37,514
15,120		 14,110
3,122,504
39,935
18,984
5,112,527 3,195,533

11a. Analysis of net assets between funds (current year)

General
unrestricted
£		 Restricted
£		 Total Funds
£
Current assets
Creditors: amounts falling due within one year
Net assets at 31 December 2020		 699,809
(66,331)		 5,052,381
(5,046,196)		 5,752,190
(5,112,527)
633,478 6,185 639,663

11b. Analysis of net assets between funds (prior year)

General
unrestricted
£		 Restricted
£		 Total Funds
£
Current assets
Creditors: amounts falling due within one year
Net assets at 31 December 2019		 451,897
(73,029)		 3,128,716
(3,122,504)		 3,580,613
(3,195,533)
378,868 6,212 385,080

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Annual Report and Financial Statements

12a. Movements in funds (current year)

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes:

At
1 January
2020
£

Income &
gains
£
Expenditure &
losses
£
At
31 December
2020
£
Restricted funds:
PayPal Giving Fund UK Platform
Partner Programmes
Total Restricted funds:		 6,212 50,941,461 (50,941,488) 6,185
6,212 50,941,461 (50,941,488) 6,185
Unrestricted funds:
Designated fund
General unrestricted funds
Total funds:		 —
378,868		 118,883
2,034,185		 —
(1,898,458)		 118,883
514,595
385,080 53,094,529 (52,839,946) 639,663

The narrative to explain the purpose of each fund is given at the foot of the note below.

12b Movements in funds (prior year)

At 1 January
2019
£		 Income &
gains
£		 Expenditure &
losses
£		 At 31
December
2019
£
Restricted funds:
PayPal Giving Fund UK Platform
Partner Programmes
eBay for Charity promotion
Total restricted funds
Total unrestricted funds
Total net assets		 6,026
63		 25,026,903
—		 (25,026,717)

(63)		 6,212
—
6,089 25,026,903 (25,026,780) 6,212
437,064 1,046,390 (1,104,586) 378,868
443,153 26,073,293 (26,131,366) 385,080

Purposes of restricted funds

PayPal Giving Fund UK Platform Partner Programmes

This fund represents amounts held for onward distribution to UK charities.

Purposes of designated funds

The designated fund is held to match future restricted donations to benefit recipient charities.

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Annual Report and Financial Statements

13. Liability of member

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up the member is required to contribute an amount not exceeding £1.

14. Ultimate controlling party of member

The sole member of the charitable company is the PayPal Charitable Giving Fund (PPGF US), a United states 501(c) (3) non-profit organisation. The sole member of PPGF US is PayPal Inc. The primary purpose of PPGF US is to raise funds for charitable purposes online and distribute those funds to other charitable organisations.

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