PayPal Giving Fund UK Annual Report and Financial Statements
31 December 2021
Company Limited by Guarantee Registration Number 5507404 (England and Wales) Charity Registration Number 1110538
PayPal Giving Fund Canada
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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 | 5 |
| Independent auditor’s report | 23 |
Financial statements
| Statement of fnancial activities | 27 |
|---|---|
| Balance sheet | 28 |
| Cash fow statement | 29 |
| Notes to the fnancial statements | 30 |
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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 | |
| Company secretary | Nick Aldridge |
| Staf | |
| CEO | Nick Aldridge |
| VP, UK and Ireland | Vanessa Babouram |
| 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 |
| Accounting and Operations Associate | Dahnish Shiraz |
| 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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Trustees’ report
Introduction
The trustees present their statutory report together with the financial statements of PayPal Giving Fund UK for the year to 31 December 2021. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes the directors’ report for the purposes of the Companies Act 2006.
The financial statements have been prepared in accordance with the accounting policies set out in the Principal Accounting Policies section therein and comply with the charitable company’s memorandum and articles of association, applicable laws and the requirements of 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).
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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 GoFundMe, Facebook, Humble Bundle and eBay. The partnerships enable the full range of UK charities to benefit from the unrestricted funds we raise through our 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 therefore 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, verifying 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. During the period, we introduced an additional manual review of each charity prior to enrolment. Each year we undertake a survey of charities that received significant funds from PayPal Giving Fund, to confirm that they applied our funds in support of charitable purposes. We also suspend from our system any charity that we find to represent an unreasonable risk.
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 and Humble Bundle’s online shopping audiences. 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 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.
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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Achievements and performance
Overview of our programmes
We aim to make charitable giving a part of everyday life, introducing in relevant, simple and engaging ways to new audiences. Our partnerships with leading internet businesses enable their customers to do good by supporting charities as part of their daily lives online.
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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 through a growing range of programmes, including the PayPal app, through PayPal’s fundraising site, and by making donations at checkout when shopping using PayPal.
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.
Bequeathed is a professional fundraising company bringing charities, law firms and professional will writers together in the UK. As part of the Will For Good campaign, Bequeathed already encouraged people to make a will and offered the opportunity to pledge a gift when they did. Our partnership now adds the opportunity for will makers to donate online in support of their favourite charity when they have their will drafted.
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Strategic Report 2021
Impact of coronavirus on the charity
During the period the coronavirus (Covid-19) pandemic continued worldwide, with a severe impact on people’s health as well as economic activity globally, including in the UK. The charity continued to follow government guidance and mitigated risks by continuing home working for all staff, using technology already in place. Our staff have adapted well to the many changes in working patterns over the last two years, particularly for those members of staff with caring responsibilities. We hope to return to the office as a team in 2022.
We continued to monitor carefully those areas of our business that might be disrupted by the pandemic, such as the distribution of cheques to benefitting charities; we have, for example, allowed longer periods of time for charities to cash the cheques we send. At a time of continued challenge to the charity sector and the UK population in general, we have been pleased that a growing number of charities have placed trust in PayPal Giving Fund, following an unprecedented year of growth in 2020, and we have seen a dramatic rise in enrolment during the period.
We raised £44m to benefit nearly 26,000 charities
We raised £44m in 2021, 14% less than in 2020, which had been marked by dramatic fundraising in response to the pandemic, including the Big Night In, many campaigns in support of NHS charities, and fundraising as part of social movements such as Black Lives Matters. Although we did not meet our objective to grow donations each year, compared to 2019 however, the value of donations grew by 76%, demonstrating strong organic growth over time. In 2022 we hope to return donations to growth by taking on additional partners and further developing our programmes. 2.7 million donors in total gave to PayPal Giving Fund during the period: the same number as in 2020, and up from 0.7 million in 2019. As a result, we granted funds to 25,866 charities in 2021 (up from 23,779 in 2020 and 21,811 in 2019).
We dramatically grew the number of charities enrolled
We increased the number of charities enrolled with PayPal Giving Fund by 11,192 during 2021, a dramatic increase on 2020’s 2,921 enrolments). We achieved this increase by working with PayPal to simplify the onboarding process for charities. We reduced 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 change retrospectively by giving notice to charities that had vetted PayPal accounts but had not yet manually completed PayPal Giving Fund enrolment. As a result of all this work, we ended 2021 with nearly 22,000 enrolled UK charities. Enrolment enables charities to receive payments electronically, update their profiles, and benefit from more of our programmes, since some require enrolment by the charities. Now nearly 90% of funds we receive are donated to benefit enrolled charities.
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“
PayPal Giving Fund’s amazing support throughout our Red Nose Day campaign has delivered a major boost to our fundraising. By making it simple and easy for our supporters to donate securely online through the PayPal Giving Fund we have raised £180,000 for vital projects across the UK and internationally. I want to thank them for their continued support and l look forward to our partnership helping thousands more people throughout 2022 ”
Liz Warner CEO, Comic Relief
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We supported new programs and campaigns
PayPal’s “Give at Checkout” program, which enables customers to make a donation while completing checkout using their PayPal accounts, raised £4.4million in funds (2020: 2.4 million). At the end of 2021 we supported the launch of PayPal’s Generosity Network fundraisers, enabling PayPal customers to create fundraisers to benefit the charity of their choice through PayPal Giving Fund. We look forward to seeing its impact in 2022.
We supported the Disasters Emergency Committee’s Afghanistan Appeal, launched in December 2021. Through a multi-faceted campaign in partnership with PayPal, we helped raised awareness via social media, reached out to 17m PayPal customers and help raise £833k between December and January 2022 primarily through our fundraising website and Give at Checkout.
After the period we helped donors and charities respond to the Russian invasion of Ukraine, promoting the work of charities responding to the growing humanitarian crisis through our programmes. By 15 March 2022, PPGF donors had contributed more than £2 million in support of relevant charities.
We funded a wide range of UK charities
We sent funds to 25,866 UK charities in 2021. Overall, more than 13,000 charities have been selected as favourites, through more than 200,000 selections by PayPal customers. The 10 charities receiving the highest total value of grants in 2021 are listed below (in alphabetical order), reflecting charities that ran significant appeals during the year, and/or were featured on our partners’ platforms.
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Alzheimer Society
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BBC Children in Need
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British Heart Foundation
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Campaign Against Living Miserably
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Cancer Research UK
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Macmillan Cancer Support
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Mind
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NHS Charities Together
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The Little Princess Trust
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The Trussell Trust
We also continued to support PayPal Giving Fund Ireland, which, independently governed, operates in a similar way and for similar purposes to PayPal Giving Fund UK, and benefits from staff time and expertise provided by PayPal Giving Fund UK. The launch of GoFundMe’s charity programme in Ireland enabled PayPal Giving Fund Ireland to raise €1.4 million during the period, benefitting nearly 600 Irish charities.
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Annual Report 2021
“
PayPal Giving Fund has been a lifeline
for us. We were lucky enough to be a Featured
Charity, which helped us raise an extra £33K
during a difficult 2021. That will pay for a
revamp of our mobile app, which help more
people get things they need and keep usable
stuff out of landfill and incinerators.” ”
Edward Hibbert
Chair, Freegle
PayPal Giving Fund 1212
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Annual Report 2021
Our operating costs
PayPal Giving Fund UK has increased its funds raised almost tenfold since 2016, from £4.5 million to £44 million. Our ongoing focus on efficiency and scalability has kept the increase in our cash operating costs to 72% during that time. As a proportion of grants made to charities, our cash operating costs have declined from 8.0% to 1.4% since 2016.
Position of the charity at year end and plans for the future
We ended 2021 in a strong position, with sufficient reserves and funding commitments to assess the charity as a going concern, and a growing number of partners, donations, and benefitting charities. The addition of several new UK partners, and the launch of GoFundMe Ireland at the end of the period augurs well for increased charitable impact in 2022. With an increasingly experienced staff team, and funding confirmed for an additional role in 2022, we believe the charity is well positioned to meet its 2022 goals.
During 2022 we will 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:
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Increasing the total funds raised each year to benefit charities across our partnerships and programmes.
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Increasing the number and variety of charities that benefit from our programmes through a more inclusive platform that generates more value for charities.
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Managing our growth by building capacity and operational excellence, so we can operate our programmes effectively at greater scale.
Our 2022 priorities are underpinned by continued investment in our team: promoting diversity, building an inclusive culture, promoting mental health and work-life balance combined with a performance mindset help drive the best outcome for benefitting charities, our partners as well as donors.
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“
We’re incredibly grateful for the support
we received from PayPal Giving Fund in 2021, which enabled us to continue our vital work being there for every dog and cat. Last year, we cared for thousands of animals in our three centres until they could be reunited with their owners or found a new forever home. We also helped support more dogs and cats beyond our gates by sharing our expert advice with pet owners, and by training other animal welfare practitioners via the Battersea Academy.
None of this would be possible without the generosity of our supporters such as PayPal Giving Fund – thank you! ”
Peter Laurie Chief Executive, Battersea Dogs and Cats Home
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Structure and governance
PayPal Giving Fund UK is governed by its memorandum and articles of association (last updated 15 April 2013). It is constituted as a company limited by guarantee (Company Registration No. 5507404 (England and Wales)) and is a registered charity (Charity Registration No. 1110538).
The sole member of the company is the PayPal Charitable Giving Fund (“PPGF US”), a United States 501(c)(3) non-profit organisation. In the event of the charitable company being wound up the member undertakes to contribute an amount not exceeding £1.
The Board of Trustees
The Board of Trustees is responsible for the overall governance of the charitable company. Whilst there is no cap on the total number of Trustees, the minimum number of Trustees is three, and currently there are six. All Trustees were duly appointed by PPGF US, having been proposed by the board.
To enable and promote board renewal, at the final board meeting of each calendar year, one-third of the Trustees retire from office. The Trustees to retire are those who have been longest in office. Trustees who retire shall be eligible for reappointment by PPGF US. Trustees are expected to serve two or three terms of approximately 3 years per term. By exception, a fourth term may be considered where it is agreed by the board and member to be in the best interests of the charity.
The names of the trustees who served during the year are set out as part of the reference and administrative details on page 4 of this annual report and accounts.
Trustees convene regularly for formal meetings, during which time they oversee current business and review the charity’s strategy, operational and financial performance against annual plans and budgets. Additional meetings are scheduled on an ad hoc basis, in which a subset of trustees meets to consider particular issues. On appointment, trustees receive an induction pack containing a detailed background on the charitable company and its work, and meet with the chair and chief executive, helping them to make informed decisions from the outset. Trustees are encouraged to undertake ongoing professional development to support the overall effectiveness of the board.
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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 help to ensure 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.
During the period we completed a second review of the charity’s independence (first undertaken in 2019), using guidelines set by the Charity Commission for charities set up and mainly funded by a non-charity. We determined (making use of the checklist provided) that the charity operated in an appropriate way in its dealings with PayPal. We also updated our evaluation of the charity’s governance against the Code of Governance for the charity sector, focusing on recent changes made to the principles of Integrity, and to the principle of Equality, Diversity and Inclusion (EDI). As a result of the review, we drafted a Code of Conduct for trustees, incorporated EDI into our board effectiveness evaluation, and made plans to add an additional question to our annual survey of charities.
We also completed a governance self-assessment during the period, examining the skills present on the board, confirming that all the essential skills required by the charity were present on the board. We also considered ways in which the charity could further increase its effectiveness (assessed by the trustees as “very high”) in carrying out its governance functions. We are implementing several actions as a result of the review, including the adoption of a formal code of conduct for trustees, and consideration of how to promote equality, diversity and inclusion within the charity’s board and its role as a funder. We also appointed Vanessa Onyemem, PayPal Europe’s Chief Compliance Officer and a Corporate Governance specialist, as an observer to the board and advisor on governance matters.
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, 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 to respond within one working day to all enquiries.
Our customer service teammates continued working from home throughout 2021. While our servicing had been impacted at the start of the Covid-19 pandemic with phone capabilities suspended during the first part of 2020, we were able to maintain all contact paths open throughout 2021. A new chat messaging channel was also added which has quickly become the channel of choice for our users. Customer Service continues to provide assistance to charities by email and phone as well.
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.
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During the period PayPal Giving Fund received a total of 6 formal complaints. We engaged with all charities and donors to address their concerns raised through this channel. These complaints related to our donation reassignment and cheque delivery processes, typically because incorrect or obsolete charity addresses remained registered with the regulator, leading to our cheques not being received. In all cases we acted in accordance with our published donation delivery policy. We reissue cheques to the correct charity address once this has been updated with the regulator. We also encourage enrolment for donation grants to be safely received electronically. In all cases we acted in accordance with our published donation delivery policy, dealt with the complaints satisfactorily, and closed them.
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 2021 we have focused on promoting active inclusion, resilience and teamwork through conversations with our employees, including several seminars facilitated by outside experts.
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 performance-related 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:
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The need to secure and retain a suitably skilled and experienced professional team to deliver the charity’s objectives.
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Local marketplace knowledge and external benchmarks in each country, with reference to the recommendations of relevant recruitment organisations.
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In the case of some roles, the need to manage operations in multiple countries, with associated time pressures and travel commitments.
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That high-level skills in finance and technology, which the charity needs in many roles, are particularly competitive fields for recruitment.
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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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 has involved identifying the types of risks the charitable company faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying 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.
They include:
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A regularly updated strategic plan and annual budget approved by the trustees;
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Regular consideration by the trustees of financial results, variances from budgets, nonfinancial performance indicators and benchmarking reviews;
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Monitoring of the charitable company’s day-to-day financial transactions by the CEO, UK Financial Controller and accounting team at PPGF US;
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Clear expenses policies with trustee approval required for any significant expenditure; and
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Identification and management of major risks through a risk register, reviewed at most meetings of the trustees.
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:
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Risks from cyber-attacks and other information security challenges, mitigated through PayPal Giving Fund’s existing controls, and the security measures specialists at PayPal have in place to combat attacks and security risks in general.
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Risks associated with dependency on partner activities for the generation of charitable income, which we mitigate so far as is possible through close engagement with major partners, and by expanding our list of partners to reduce dependence for income on any single partner.
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Risks associated with potential human resource challenges during a period of extended home working, which we have mitigated through staff engagement and training, focusing on wellbeing and inclusion.
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Delegation of day-to-day management authority and duties, with controls on expenditure decisions by the CEO, the CFO and individual trustees;
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Financial review
Results for the year
The statement of financial activities on page 22 shows total income of £46,189,793 (2020 - £53,094,529) and total expenditure of £46,090,963 (2020 - £52,839,946) including £43,444,353 (2020 - £50,421,390) distributed to charities benefiting from Partner Programmes.
Financial position
The balance sheet shows total funds of £738,492 (2020 - £639,663).
At the balance sheet date, the charitable company held restricted funds of £6,187 (2020 - £6,185). These monies had either been raised for, and their use restricted to specific purposes, or they comprised donations subject to donorimposed conditions. Full details of restricted funds can be found in note 12 to the financial statements together with an analysis of movements in the year.
General funds of the charity at 31 December 2021 were in surplus by £613,422 (2020 - £514,595).
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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:
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Meet any unbudgeted expenditure within the year,
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Bridge any cash flow issues arising from delayed payments from our parent charity,
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Wind down the charity in the event of an unexpected funding termination (e.g. due to a breach of terms).
The charity therefore maintains a minimum target level of at least 6 months’ cash running costs which total approximately £394,500 in our budget for 2022.
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If reserves drop below the target level, the charity will include a contribution to them in each year’s budget submission to PPGF US.
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If reserves are significantly above this level, the charity will apply them to further its purposes in the next financial year.
We invest retained reserves in institutions with a view to:
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Minimising risks by favouring institutions with relatively strong credit ratings, and government backing.
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Minimising administrative burdens by limiting the number of institutions we must engage with.
We aim to have a regular flow of available funds by:
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Keeping at least 45% of our reserves target available on an “instant access” basis.
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Choosing any savings accounts that are used to have a term no greater than 12 months, and staggering any such investments on a quarterly basis.
Gifts in kind
The charitable company is grateful to both PayPal UK, which has provided office space, customer service support, legal advice and PayPal fees contribution valued at £1,478,428 (2020 £1,263,609) in the financial period, and to PPGF US, which provided technical and operational support valued at £72,662 (2020 - £78,505) in the financial period.
Currently reserves are £337,806 in excess of the minimum target of which £118,883 is designated, leaving £218,923 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 £98,828 (2020 - £135,727) to reserves due to savings on travel and staffing costs.
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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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in 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);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements 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 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:
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so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
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 has not undertaken any business travel since February 2020. The CEO’s expenses are reviewed by the UK Audit Committee Chair.
Approved by the Trustees and signed on their behalf by:
Naomi Tomkys OBE Chair of the Board
Approved by the Trustees on: 6th April 2022
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“
PayPal Giving Fund continue to be one of the DEC’S flagship appeal partners and were integral to the success of the DEC Coronavirus Appeal and Afghanistan appeal which launched in July 2020. On the day of our launch, PayPal amplified our appeal to a huge audience with an incredible response, enabling us to support communities in 7 of the world’s most fragile places to keep themselves safe as the virus spread with hygiene kits and information. PayPal also supported the appeal’s expansion to support vulnerable communities in India as they faced a deadly surge in infections, again amplifying our call to action and enabling us to shore up health systems with PPE and medical equipment. In total, PayPal raised over £1million in this appeal ”
Saleh Saeed Chief Executive, DEC
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Independent auditor’s report to the members of PayPal Giving Fund UK
Opinion
We have audited the financial statements of PayPal Giving Fund UK (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
-
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
-
Have been prepared in accordance with the requirements of the Companies Act 2006
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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:
-
The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
The trustees’ annual report has been prepared in accordance with applicable legal requirements.
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Annual Report 2021
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:
-
Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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The financial statements are not in agreement with the accounting records and returns; or
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Certain disclosures of trustees’ remuneration specified by law are not made; or
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We have not received all the information and explanations we require for our audit; or
-
The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the 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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We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
-
Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
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Annual Report 2021
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Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
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The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
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We inspected the minutes of meetings of those charged with governance.
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We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
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We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
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We reviewed any reports made to regulators.
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We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
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We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc. org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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: 12th May 2022
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 2021
Statement of financial activities: For the year ended 31 December 2021
(incorporating an income and expenditure account)
| 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 Reconciliation of funds: Total funds brought forward Fund balance carried forward |
Notes 2 3a 3a |
Unrestricted funds £ 2,221,617 753 |
Restricted funds £ 43,967,162 - |
2021 Total funds |
Unrestricted funds £ 2,152,239 829 |
Restricted funds £ 50,941,461 - |
2020 Total funds £ 53,093,700 829 |
|---|---|---|---|---|---|---|---|
| £ | |||||||
| 46,188,779 | |||||||
| 753 | |||||||
| 2,222,370 | 43,967,162 | 46,189,532 | 2,153,068 | 50,941,461 | 53,094,529 | ||
| 178,780 1,944,763 |
- 43,967,160 |
149,104 1,749,354 |
- 50,941,488 |
149,104 52,690,842 |
|||
| 178,780 | |||||||
| 45,911,923 | |||||||
| 2,123,543 | 43,967,160 | 46,090,703 | 1,898,458 | 50,941,488 | 52,839,946 | ||
| 98,827 633,478 |
2 6,185 |
254,610 378,868 |
(27) 6,212 |
254,583 385,080 |
|||
| 98,829 | |||||||
| 639,663 | |||||||
| 732,305 | 6,187 | 738,492 | 633,478 | 6,185 | 639,663 |
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 2021
Balance sheet: As at 31 December 2021
| Current assets Debtors Cash at bank and in hand Liabilities 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 |
Notes 9 10 11a |
£ 524,188 3,031,193 |
2021 £ 738,492 |
£ 842,464 4,909,726 |
2020 £ 639,663 |
|---|---|---|---|---|---|
| 3,555,381 (2,816,889) |
5,752,190 (5,112,527) |
||||
| 738,492 | 639,663 | ||||
| 732,305 | |||||
| 738,492 |
Approved by the Trustees and signed on their behalf by:
Naomi Tomkys OBE Eva Gustavsson Chair of the Board Trustee Approved on: 6th April 2022 Approved on: 6th April 2022
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 2021
Cash flow statement: For the year ended 31 December 2021
| Cash fows from operating activities: Net income (as per the statement of fnancial activities) Decrease in debtors (Decrease) / increase in creditors Net cash (used in) / 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 |
Notes |
2021 £ 98,829 318,276 (2,295,638) On 1 January 2021 £ 4,909,726 |
£ |
£ |
£ |
|---|---|---|---|---|---|
| 2,436,317 2,436,317 2,473,409 |
|||||
| 4,909,726 | |||||
Cash fows £ (1,878,533) |
On 31 December 2021 £ 3,031,193 |
||||
| 4,909,726 | (1,878,533) | 3,031,193 | |||
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Annual Report 2021 Notes to the financial statements PayPal Giving Fund
Annual Report 2021
1. Accounting policies
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 2021
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:
-
a. Expenditure on raising funds includes the salaries and direct costs associated with raising funds, which relate to the costs of publicising the eBay for Charity programme.
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b. Expenditure on charitable activities comprise expenditure on the charity’s primary charitable purposes as described in the trustees’ report. Such costs include:
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 2021
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 £ |
2021 Total £ |
Unrestricted £ |
Restricted £ |
2020 Total £ |
|
|---|---|---|---|---|---|---|
| Donations - amounts received from Platform Partner Programmes Grants received Gifts in kind Technical and managerial support Transaction processing Accommodation, legal and other support 2020 Total funds |
- 721,864 21,325 1,369,787 108,641 |
43,967,162 - - - - |
43,967,162 721,864 21,325 1,369,787 108,641 |
- 809,467 79,163 1,170,319 93,290 |
50,941,461 - - - - |
50,941,461 809,467 79,163 1,170,319 93,290 |
| 2,221,617 | 43,967,162 | 46,188,779 | 2,152,239 | 50,941,461 | 53,093,700 |
The charitable company is grateful to PayPal (UK) Ltd which has provided office space, customer service, transaction processing and legal support valued at £1,478,428 (2020: £1,263,609) in the financial period, and PPGF US and PayPal Inc., which have provided technical and managerial support valued at £21,325 (2020: £79,163).
Corresponding amounts are included within costs of charitable activities (note 3).
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Annual Report 2021
3a. Analysis of expenditure (current year)
| Raising funds £ |
Charitable activities £ |
Governance costs £ |
Support costs £ |
2021 Total £ |
2020 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 2021 Total expenditure 2020 |
110,760 - 68,020 - - - - - |
- 43,444,353 - - - - - 522,807 |
- - - - - - 13,725 - |
342,311 - - 108,641 1,369,787 21,325 - 88,974 |
453,071 43,444,353 68,020 108,641 1,369,787 21,325 13,725 611,781 |
386,092 50,421,390 57,627 93,290 1,170,319 79,163 16,890 615,175 |
| 178,780 - - |
43,967,160 13,725 1,931,038 |
13,725 (13,725) - |
1,931,038 - (1,931,038) |
46,090,703 - - |
52,839,946 - - |
|
| 178,780 | 45,911,923 | - | - | 46,090,703 | ||
| 149,104 | 52,690,842 | - | - | 52,839,946 |
3b. Analysis of expenditure (prior year)
| 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 Governance costs |
Raising funds £ 91,477 - 57,627 - - - - - |
Charitable activities £ - 50,421,390 - - - - - 520,098 |
Governance costs £ - - - - - - 16,890 - |
Support costs £ 294,615 - - 93,290 1,170,319 79,163 - 95,077 |
2020 Total £ 386,092 50,421,390 57,627 93,290 1,170,319 79,163 16,890 615,175 52,839,946 |
|---|---|---|---|---|---|
| 149,104 | 50,941,488 | 16,890 | 1,732,464 | ||
| - | 16,890 (16,890) - - |
||||
| Support costs Total expenditure 2020 |
- | 1,732,464 | - | (1,732,464) | - 52,839,946 |
| 149,104 | 52,690,842 | - | - |
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Annual Report 2021
4. Net income / (expenditure) for the year
This is stated after charging:
| Auditor’s remuneration (excluding VAT): Statutory audit services Prior Year Under Accrual Other services – taxation |
2021 £ 2020 £ |
2021 £ 2020 £ |
|---|---|---|
| 10,500 (1,400) 1,200 |
10,000 1,475 1,500 |
5. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
| Staf costs were as follows: | ||
|---|---|---|
| Salaries and wages Social security costs Pension costs |
2021 £ 2020 £ |
|
| 387,405 43,204 22,462 |
330,655 35,231 20,206 |
|
| 453,071 | 386,092 |
The number of employee’s receiving remuneration from the charity in excess of £60,000 was as follows:
| £60,000 - £70,000 £70,000 - £80,000 £80,000 - £90,000 |
2021 No. | 2020 No. |
|---|---|---|
| 0 | 2 | |
| 1 | - | |
| 1 | - |
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 £244,939 (2019: £228,330).
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 (2020 - none).
6. Staff numbers
The average number of employees during the period, analysed by function, was as follows:
| Raising funds Support |
Full time equivalent 2021 No. 2020 No. 1.7 1.8 6.0 5.3 |
Full time equivalent 2021 No. 2020 No. 1.7 1.8 6.0 5.3 |
Average headcount 2021 No. 2020 No. 1.8 1.9 6.2 5.6 |
Average headcount 2021 No. 2020 No. 1.8 1.9 6.2 5.6 |
|---|---|---|---|---|
| 7.7 | 7.0 | 8.00 | 7.4 |
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Annual Report 2021
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 £72,662 (2020: £79,163) and granted the charity £721,864 (2020: £690,584). During the period the charity provided leadership services to PPGF US. PPGF UK received £119,022 (2020: £75,828) in relation to these services.
PayPal PLC, (UK Branch) Ltd, of which 3 PPGF UK trustees are employees, provided in-kind support valued at £1,478,428 (2020: £1,263,609).
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 £51,337 to PPGF Ireland (2020: £658).
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 VP PayPal Giving, PayPal Inc.), Ben Chaudoir (Director of Professional Services, PayPal Inc) and Eva Gustavsson (Government Relations Director, PayPal Inc).
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
| Gift aid recoverable Other accrued income |
2021 £ 2020 £ |
2021 £ 2020 £ |
|---|---|---|
| 504,995 19,193 |
797,005 45,459 |
|
| 524,188 | 842,464 |
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Annual Report 2021
- Creditors: amounts falling due within one year
| 10. Creditors: amounts falling due within one year | ||
|---|---|---|
| Taxation and social security Donations to charities Other creditors Accruals |
2021 £ 16,319 2,743,786 44,544 12,240 |
2020 £ 13,750 5,046,143 37,514 15,120 |
| 2,816,889 | 5,112,527 |
11a. Analysis of net assets between funds (current year)
| Current assets Creditors: amounts falling due within one year Net assets at 31 December 2021 Current assets Creditors: amounts falling due within one year Net assets at 31 December 2020 11b. Analysis of net assets between funds (prior year) |
General unrestricted £ 805,371 (73,066) |
Restricted £ 2,750,010 (2,743,823) |
Total funds £ 3,555,381 (2,816,889) |
|---|---|---|---|
| 732,305 | 6,187 | 738,492 | |
| General unrestricted £ 699,809 (66,331) |
Restricted £ 5,052,381 (5,046,196) |
Total funds £ 5,752,190 (5,112,527) |
|
| 633,478 | 6,185 | 639,663 |
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Annual Report 2021
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:
| Restricted funds: PayPal Giving Fund UK Platform Partner Programmes Total Restricted funds: Unrestricted funds: Designated fund General unrestricted funds Total funds |
At 1 January 2021 £ Income & gains £ Expenditure & losses £ At 31 December 2021 £ 6,185 43,967,162 (43,967,160) 6,187 |
At 1 January 2021 £ Income & gains £ Expenditure & losses £ At 31 December 2021 £ 6,185 43,967,162 (43,967,160) 6,187 |
At 1 January 2021 £ Income & gains £ Expenditure & losses £ At 31 December 2021 £ 6,185 43,967,162 (43,967,160) 6,187 |
At 1 January 2021 £ Income & gains £ Expenditure & losses £ At 31 December 2021 £ 6,185 43,967,162 (43,967,160) 6,187 |
|---|---|---|---|---|
| 6,185 | 43,967,162 | (43,967,160) | 6,187 | |
| 118,883 514,595 |
2,222,370 | (2,123,543) | 118,883 613,422 |
|
| 639,663 | 46,189,532 | (46,090,703) | 738,492 |
The narrative to explain the purpose of each fund is given at the foot of the note below.
12b Movements in funds (prior year)
| Restricted funds: PayPal Giving Fund UK Platform Partner Programmes Total restricted funds Designated Funds General Unrestricted Funds Total funds |
At 1 January 2020 £ Income & gains £ Expenditure & losses £ At 31 December 2020 £ |
At 1 January 2020 £ Income & gains £ Expenditure & losses £ At 31 December 2020 £ |
At 1 January 2020 £ Income & gains £ Expenditure & losses £ At 31 December 2020 £ |
At 1 January 2020 £ Income & gains £ Expenditure & losses £ At 31 December 2020 £ |
|---|---|---|---|---|
| 6,212 | 50,941,461 | (50,941,488) | 6,185 | |
| 6,212 | 50,941,461 | (50,941,488) | 6,185 | |
| - 118,883 - 118,883 |
||||
| 378,868 | 2,034,185 | (1,898,458) | 514,595 | |
| 385,080 | 53,094,529 | (52,839,946) | 639,663 |
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 recipient charities.
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Annual Report 2021
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 PPGF US, a United States 501(c)(3) non-profit organisation (‘PPGF US’). 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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PayPal Giving Fund