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2024-03-31-accounts

2024 Annual Report

and

Financial Statements

Hand in Hand International

Charity No: 1113868 For the year ended 31 March 2024

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Status The organisation is a charity registered by trust deed in England on 18[th] February 2006. Charity Number 1113868 Registered office 5[th] Floor, Caparo House, and operational address 101 – 103 Baker Street London W1U 6LN Trustees Bruce Grant (Chairman) John Barrett Madhvi Chanrai (resigned June 2023) Carsten Jorgenson Lars Josefsson Paola Uggla Stephanie Whittier Iris Epple-Righi (appointed October 2023) Senior officers Dorothea Arndt – Chief Executive Officer Amalia Johnsson – Deputy Chief Executive Officer Stephanie Nicholson – Director of Finance Jen Glyn – Head of Communications and Marketing Anna Davies – Head of Philanthropy and Corporate Partnerships (appointed November 2023) Charlotte Strawa – Interim Head of Philanthropy (until November 2023) Auditors Buzzacott LLP Chartered Accountants Registered Auditors 130 Wood Street London EC2V 6DL

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Contents

Legal and administrative details 2
Objectives and activities 4 - 6
Achievements and Performance 6 - 7
Plans for future periods 7 - 8
Report of the Trustees’ 8 -13
Report of the Independent Auditors 14 - 17
Statement of Financial Activities 18
Balance Sheet 19
Cash Flow Statement 20
Notes to the Financial Statements 21 - 32

The Trustees present their report and the audited financial statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting polices set out therein and comply with the charity’s governing document, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS102).

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Objectives and Activities

Vision

Our vision is a world where every woman has the power and the means to raise herself and her family out of poverty.

Mission

Our mission is to change lives by empowering women to beat the odds and succeed as entrepreneurs.

What we do

Women face barriers that men don’t.

Right now, in communities across the developing world, roughly 400 million women and girls live below the poverty line of US $2.15 a day, trapped by restrictive norms and attitudes that keep them from earning their own incomes, controlling their own assets, and making decisions for themselves.

To beat poverty for good, women must have an equal chance to earn and control their own incomes. Supporting women to run their own enterprises means more children in school, and more families with access to healthcare.

Through our unique, proven model, we support women to set up and run their own businesses on their own terms – lifting their families above the poverty line.

We also engage with whole communities to challenge restrictive norms and attitudes that hold women entrepreneurs back.

The Hand in Hand network spans regional operations in India, Afghanistan, Kenya, Tanzania and Zimbabwe. Three more offices in Sweden, the US and the UK provide programmes and governance support and fundraising.

How we measure success

Measurement is crucial because it allows us to assess the impact of our programmes, making data-driven decisions to improve their effectiveness – helping us achieve our mission of helping women entrepreneurs lift themselves and their families out of poverty.

Our Monitoring, Evaluation and Learning (MEL) team works closely with in-country colleagues across Hand in Hand’s global network to collect accurate data from our project members

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through routine project monitoring and periodic project evaluations. These valuable insights enable us to refine and improve our projects throughout their lifecycle.

We measure four key metrics:

Income uplift

Entrepreneurs increase revenue to make more money from their businesses. Current average income uplift is 115%.

Business survival rate

93% of enterprises that were set up during business training are still operational one year on from the end of their training in Hand in Hand project.

Financial resilience

53% of entrepreneurs can raise emergency funds, such as to pay an unexpected medical bill, with little or no difficulty.*

Women’s decision-making power

82% of women can have their say about the things that matter to them, such as household purchases, healthcare and being able to leave the home to visit family and friends by the end of our projects.**

This data is drawn from seven projects that concluded in 2023-24, reaching over 33,200 participants.

*Known as financial resilience, or the ability to withstand a financial shock without having to borrow money or sell an asset. This compares to an average of 31.5% of people across Kenya and Tanzania wh o would be able to withstand a financial shock without having to borrow money or sell an asset (S ource: World Bank). Four of the eight projects ending this year measured financial resilience.

**Compared to an average 40.3% of women in Kenya, Tanzania and Afghanistan who reported that they were able to participate in decisions that affect them, such as household purchases, family visits and healthcare. (Source: World Bank)

We also measure outputs and outcomes such as training graduation rates, adoption of target business practices such as record keeping, number of enterprises and jobs created, savings habits, access to credit, and market linkages.

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To understand the broader impacts of our projects, we ask about changes to our members’ quality of life as a result of participating in a Hand in Hand project, including improvements in housing, healthcare, nutrition, and children’s education.

We ensure accountability to our members by asking about their satisfaction with the project and, following the principle of “do no harm”, we check to see if they’ve experienced any negative effects from their participation. Lastly, for accountability to our donors, we track key metrics such as cost-per-member and project return-on-investment.

Significant activities

Hand in Hand International’s significant activities as displayed on the Statement of Financial Activities are:

  1. Raising funds

  2. Supporting people in Afghanistan 3. Supporting people in Kenya 4. Supporting people in Tanzania Supporting projects in Hand in Hand’s operating countries involves providing technical assistance in strategy, governance, programme development and implementation, monitoring and evaluation, safeguarding, communications and marketing.

Achievements and Performance

Network-wide, Hand in Hand created and enhanced 2,457,011 jobs in 2023/24 (2022/23: 637,453). In April 2023, Hand in Hand India completed a study reviewing the previous 8 years of projects. As a result of this study, HiH India has changed their methodology for counting jobs created, and continue to add around 200,000 jobs per month. This has led to the high uptick in job creation in 2023/24.

Here in the UK, at Hand in Hand International, we set ourselves the following goals in last year’s Trustees’ Report:

Fundraising

Raise $15.98M in-year, for FY23/24 and future years

We set out to secure $15.98M total income, comprising funds banked in the financial year to 31 March 2024 and new multi-year grant income to be banked in future years. During the financial year we received $9.39M (£7.44M) and secured an additional $8.25M (£6.54M) in multi-year grant funding for future years, bringing the combined funds raised in the year to $17.63M against our target of $15.98M (110%).

Due to the international nature of our supporters, we record our fundraising activities in USD. However, the Financial Review on page 11 and the financial statements and notes to the financial statements are all presented in GBP.

Start raising funds for a fifth country

We decided to proceed with expansion into Uganda and conducted desk research into potential NGO partners operating in the country. A pilot project has been scoped and designed. Registration and trademarks are also being initiated locally.

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Programmes

Increase bargaining power for women

We secured three multi-year lighthouse projects reaching 33,900 members collectively to cement the role of women as entrepreneurs in their community.

Accelerating past the poverty line

The financial year saw the completion of our Eco-farming 2.0 project, which saw median monthly incomes increase by KES 5,861.

Our flagship rural acceleration project encountered significant challenges at the start of the financial year linked to access to credit for the programme participants. Collaboration with East Africa's largest bank has significantly increased access to formal finance in Kenya, though there remains scope for further improvement, particularly in Tanzania.

The first 1,000 members of our urban accelerator have completed their coaching curriculum. The endline evaluation in August 2024 will reveal critical insights into the programme’s impact on their businesses’ profit and resilience.

Cultivating Regenerative Agriculture so farmers can thrive

We developed a lighthouse project concept to implement our new regenerative agriculture curriculum at scale and leverage regenerative demonstration farms in Kenya. We secured $150K for further regenerative agriculture projects and as at the end of the financial year, there were pending proposals worth $7.7M for scale-ups.

Best in class data

Design of an international data dashboard commenced in March 2024 with completion targeted in Q2 2024. Funding was secured from a new donor to cover 70% of the development costs. The data dashboard will reflect quarterly data for a consistent set of 10 indicators per project across all current and recent projects supported by Hand in Hand International.

Sector-beating team

At the end of the year to March 2024, we achieved our target of having a 23-strong team in place, with further recruitment taking place in the first quarter of FY2024/25. A planned office refurbishment has not taken place due to the growth in the team we are currently exploring options to move to a larger space.

Plans for Future Periods

Hand in Hand International’s priorities for the coming financial year, set during our annual strategic review, are:

Fundraising

Raise $20.2M in-year, for FY24/25 and future years

We will secure $20.2M total income, comprising funds banked in the financial year to 31 March 2025 and new multi-year grant income to be banked in future years.

We will also deliver a step-by-step engagement strategy, including a two-page proposal, for each of our identified 6 key target funders.

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Due to the international nature of our supporters, we record our fundraising activities in USD. However, the Financial Review on page 11 and the financial statements and notes to the financial statements are all presented in GBP.

Start raising funds for a fifth country

We will sign contracts for one project in Uganda and one in Zimbabwe.

Programmes

Increase bargaining power for women

All Breaking Barriers projects working with and for 33,900 individuals will meet or exceed their project goals for 24/25.

Accelerating past the poverty line

We will develop an evidence-based implementation model for Scaling Up for Success projects by September - to submit proposals from October.

We will complete a mapping of current entrepreneurs and the value chains they are connected to.

Cultivating Regenerative Agriculture so farmers can thrive

We will secure $7M for projects training small-holder entrepreneurs in regenerative farming.

Best in class data

Demonstrating our commitment to transparency and accountability, we will publish our 'Magic 4’ outcome data and summarised evaluations for every project (from 2021) on our website

Sector-beating team

We will have a team of 27 (headcount) in place, with 1/3 applicants from under-represented groups, and 80% of whom recommend us as employers.

Structure and Governance

Governing Document

The charity was registered by trust deed on 18 February 2006 and registered as a charity on that date.

Recruitment and Appointment of Trustees

As set out in the Trust Deed, the Board of Trustees nominates the Chair of the Trustees. The Board has powers to appoint additional Trustees as it considers in-line with skills required.

Induction and Training of New Trustees

New Trustees are considered on the basis of any gaps in the skills of the board. They are invited to meet the existing Trustees and senior members of staff and familiarise themselves with the work of Hand in Hand International. Further training is provided on an on-going basis in line with the identified needs of Trustees. Trustees sign a conflict of interest declaration each year and declare any conflicts of interest to the agenda at the start of each Board Meeting. Trustees receive safeguarding training and sign the safeguarding code of conduct.

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Public Benefit statement

The Trustees confirm they have complied with Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit”.

Serious Incidents

There were no serious incidents reported to the Charity Commission in FY23/24.

Risk Management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Trustees have assessed the major risks to which the charity is exposed, relating to operational areas of the charity, its investments, and its finances.

A written risk register is in place and reviewed at every Board meeting, outlining key risks the Charity faces and mitigating controls. The Trustees believe that by monitoring reserve levels, ensuring strong financial controls, and examining regularly the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

Going Concern

The trustees have assessed the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern.

The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. The cash flow to 31 March 2025 indicates that the charity will continue to be able to meet its financial commitments through the year and for a period of at least one year from the date of approval of these financial statements.

Remuneration of Staff

The governing principles of the Charity’s remuneration policy are as follows:

In relation to deciding remuneration of the charity’s senior executives, the charity considers the potential impact of remuneration levels and structures of senior executives on the wider Charity workforce. The Charity takes into account the following additional principles:

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Salaries for existing and new roles are benchmarked on an annual basis against multiple sector salary reports, to ensure that they are within acceptable ranges for the not-for-profit sector.

Investment Policy

Hand in Hand International receives income for ongoing projects over a three- to five-year time period and budgets to spend all anticipated income, except for retaining a prudent amount in reserves. It has no permanent endowment and provides for capital expenditure within its budget. Consequently, the Trustees do not consider it prudent to invest income for the longer term. Its policy is to retain funds as cash and place them on bank deposit at the best rates available.

Fundraising

We do not actively solicit funds via telephone, email, mail, or through third party fundraising organisations. Through general asks via our newsletter and social media, we offer the option for individuals to donate online via the Hand in Hand International website. There are a number of invite-only fundraising events held throughout the year at which individual donations are made.

We are committed to the highest standards of accountability and follow the Charity Commission’s and the Institute of Fundraising’s guidance on best practice in fundraising.

During the year there were no complaints about fundraising.

Sustainability

In recognition of the extensive consequences of climate change, our plans for the future period include a particular emphasis on regenerative agriculture in our programmes and increasing the energy efficiency of our London office. We will consider when international travel is necessary and limit this when possible, to minimise our carbon footprint.

Commitment to Diversity and Inclusion

Hand in Hand International has a Diversity and Inclusion working group that oversees initiatives to improve the Charity’s inclusiveness. Areas of focus include staff training, recruitment processes, and workplace policies. The working group has implemented changes to recruitment processes, resulting in over a third of new staff and volunteers being recruited from groups that are historically underrepresented in the charity sector. Diversity and inclusion training for all staff was undertaken in March 2022 and in July 2023.

Safeguarding

Our detailed approach to safeguarding is set out in our Safeguarding Policy and Safeguarding Code of Conduct. The Charity is committed to:

In accordance with the Charity’s Safeguarding Code of Conduct and Whistleblowing Policy, all staff are obligated to bring to the attention of the relevant manager any potential incident,

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abuse, or concern that they witness, suspect, or of which they are made aware, which appears to breach the standards of the Safeguarding Code of Conduct.

The Charity has two Safeguarding Focal Points on its board and two staff Safeguarding Leads. Hand in Hand International carries out basic Disclosure and Barring Service (DBS) checks on all employees and is a member of the Misconduct Disclosure Scheme, which aims to prevent perpetrators of sexual misconduct from moving between organisations undetected.

The staff Safeguarding Leads undertook a comprehensive safeguarding training course with Bond (the international development network) in April 2022. All new joiners complete an online safeguarding training course as part of their induction and a full team safeguarding training course was held in June 2024.

Reference and Administrative

Trustees

The Trustees in office during the year were:

Mr. Bruce Grant Mr. John Barrett Dr. Madhvi Chanrai (resigned June 2023) Mr. Carsten Jorgensen Mr. Lars G Josefsson Mrs. Paola Uggla Ms. Iris Epple-Righi (appointed November 2023) Ms. Stephanie Whittier

Financial Review

Total income for the year was £7,439,550. This was an increase of £1,185,480 (19%) on the previous year. Additional fundraising and programmes staff were hired during the year and a number of funding applications that were pending at the end of the previous financial year were secured at the start of this year.

Donations from corporate foundations represented 50% of income during the financial year. The second highest income source in the year was governments and institutions (19%), followed by trusts and foundations (16%). This constitutes a good balance of funding from a range of income streams, with remaining income secured from events (9%), corporate partnerships (3%), and individual giving (3%).

Unrestricted income decreased by £120,069 (12%) compared to the previous financial year. The proportion of unrestricted income compared to total income received in the year was 11%, which is in line with the average for the previous three years.

Expenditure supporting projects decreased in Afghanistan by £326,080 (24%), in Kenya by £1,329,025 (30%), and in Tanzania by £218,121 (13%). This is following a higher level of restricted spend in our countries of operation in the financial year 2022/23 which included a balance of funds brought forward at the end of FY2021/22 (resulting from pandemic-connected delays).

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Expenditure on raising funds in the financial year to 31 March 2024 was £504,349 (2023: £425,459). This increase of 19% is in line with Hand in Hand International’s strategic aim to increase fundraising capacity and is in line with the increase in income during the year. The financial year resulted in a surplus of £1,202,657 (2023: planned deficit £1,416,346).

Reserves Policy

Total funds at 31 March 2024 are £6,342,714 (2023: £5,140,059). This is an overall increase of £1,202,655 on the prior year. The increase relates to an increase in new restricted grants secured in the year.

Unrestricted free reserves are £1,001,721 at 31 March 2024 (2023: £1,131,321). The reserves policy is to hold six months’ core expenditure which is equal to £965,000 based on the budget for FY24/25. Unrestricted free reserves are equal to just over six months of core expenditure and therefore the required balance is held at the year end. The surplus will be spent on UK expenditure or used to support our network partners.

£290,138 has been transferred out of the designated fund for the EIF and strategic plan, being the reduction of the EIF loan debtor balance, through repayments to Hand in Hand International from its network partner Hand in Hand Eastern Africa, and funds spent on increasing headcount in line with our strategic plan. The balance on 31 March 2024 is £614,616 (2023: £904,754), and this will continue to be spent over the remainder of the current strategic plan period to March 2026.

A new designated fund was created in March 2023 for match funding future projects. This fund will enable Hand in Hand to unlock significant new funding partnerships requiring match funding in coming years, based on previous success using this approach. £429,898 has been added to this designated fund in the financial year 2023/24, being an allocation of funds raised through events during the year. The fund balance on 31 March 2024 is £1,238,363 (2023: £808,465).

The movements in restricted, unrestricted and designated funds is shown in Note 14 to the accounts.

Trustees' Responsibilities in relation to the Financial Statements

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity and of its income and expenditure for that period. In preparing these financial statements, the trustees are required to:

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The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

In so far as the trustees are aware:

Day to day management of the charity is delegated to Dorothea Arndt, CEO, and the senior management team.

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Independent auditor’s report to the trustees of Hand in Hand International

Opinion

We have audited the accounts of Hand in Hand International (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, principal accounting policies, and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the

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accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 01 October 2024

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

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Statement of Financial Activities for the year ended 31 March 2024

Note
Income from:
Donations and Grants
2
Interest
Total Income
Expenditure on:
Raising funds
Charitable expenditure
Supporting people in Afghanistan
Supporting people in Kenya
Supporting people in Tanzania
Total Expenditure
3
Net income/(expenditure) before foreign
exchange (losses)/gains
Foreign exchange (losses)/gains
Net income/(expenditure) for the year
Transfers between funds
Funds brought forward
Funds carried forward
14
Restricted
Unrestricted
Total 2024
Restricted
Unrestricted
Total 2023
£
£
£
£
6,592,143
831,524
7,423,667
5,286,594
964,660
6,251,254
-
15,883
15,883
-
2,816
2,816
6,592,143
847,407
7,439,550
5,286,594
967,476
6,254,070
504,349
504,349
-
425,459
425,459
992,371
56,490
1,048,861
1,322,826
52,115
1,374,941
2,935,044
121,210
3,056,254
4,251,397
133,882
4,385,279
1,432,725
47,754
1,480,479
1,658,213
40,387
1,698,600
5,360,140
729,803
6,089,943
7,232,436
651,843
7,884,279
1,232,003
117,604
1,349,607
(1,945,842)
315,633
(1,630,209)
-
(146,952)
(146,952)
-
213,863
213,863
1,232,003
(29,348)
1,202,655
(1,945,842)
529,496
(1,416,346)
(45,181)
45,181
-
(323,451)
323,451
-
2,271,967
2,868,092
5,140,059
4,541,260
2,015,145
6,556,405
3,458,789
2,883,925
6,342,714
2,271,967
2,868,092
5,140,059

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The notes on pages 21 to 32 form part of these accounts.

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Balance Sheet as at 31 March 2024

2024 2023
Note £ £
Fixed Assets
Tangible Assets 7 29,225 23,552
Long term debtors 8 - 197,451
Current Assets
Debtors 9 2,178,593 1,694,622
Cash at bank 4,478,440 3,743,483
6,657,033 5,438,105
Creditors: Amounts
due in one year
10 343,544 519,049
Net current assets 6,313,489 5,116,507
Net assets 11 6,342,714 5,140,059
Funds
Restricted funds 3,458,789 2,271,967
Designated fund 1,852,979 1,713,219
Unrestricted funds 1,030,946 1,154,873
Total funds 14 6,342,714 5,140,059

The notes on pages 21 to 32 form part of these accounts.

Authorised for issue and approved by the Trustees on

Charity Number: 1113868

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Cash Flow Statement for the year ended 31 March 2024

Cash flows from operating activities
Net income/(expenditure) for the year
Adjustments for:
Interest received
Depreciation of fixed assets
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in)
operating activities
Purchase of tangible fixed assets
Interest received
Net cash from investing activities
Change in cash and cash equivalents
in the year
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of
the year
2024
£
1,202,655
(15,883)
10,056
(286,520)
(175,505)
734,803
(15,730)
15,883
153

734,957

3,743,483
4,478,440
2023
£
(1,416,346)
(2,816)
9,618
(13,214)
221,291
(1,201,467)
(3,317)
2,816
(501)
(1,201,968)
4,945,451
3,743,483

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the Charity and the cash and cash equivalents.

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Notes to the Financial Statements for the year ended 31 March 2024

1. Accounting policies

a) The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP) and Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

Going concern

The trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charity’s forecasts and projections and have taken account of pressures on income streams. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

b) All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donations and grants are recognised in the Statement of Financial Activities when receivable. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met.

c) Gifts in Kind are included as donated income at market value at the time of receipt.

d) Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All costs are directly attributable to specific activities. Total expenditure has been allocated to either Direct Programmes, Fundraising or Support costs. UK expenditure on programmes has been included in restricted spend under Direct Programmes. Fundraising costs are included as Direct spend rather than Support Costs as fundraising is a core activity.

Support costs are split out between building costs, office costs, audit fees, legal and professional fees, trustees’ expenses, staff and consultancy costs, travel costs, and fundraising costs. The methodology of allocating support costs to network partner countries is based on direct spend on charitable activities.

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e) Depreciation is provided at rates to write off the cost of each asset by equal annual instalments over their expected useful lives as follows. Office equipment 4 years Leasehold improvements 10 years

Assets costing more than £500 are capitalised.

f) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. All restricted programme income to be spent in the UK has been recognised as restricted income, where previously this was recognised as unrestricted income in line with the treatment of expenditure.

g) Unrestricted funds are donations and other income receivable are generated for the objects of the charity.

h) Designated funds are also unrestricted funds but have been designated by the trustees for a particular purpose. The EIF and Strategic Plan Designated Fund is made up of the EIF (Enterprise Incubation Fund) loan debtor value and an amount for the increase in headcount as set out in the strategic plan. The Match Funding Designated Fund was created in the financial year to 31 March 2023 to support future co-funding opportunities.

i) Rental payments under operating leases are charged as expenditure as incurred over the term of the lease.

j) The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charity to the fund. The charity has no liability under the scheme other than for the payment of those contributions.

k) Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the net incoming resources for the year.

Critical accounting estimates and areas of judgement

l) In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

Other financial instruments

m) Cash and cash equivalents include cash at banks and short- term deposits with a maturity of three months or less.

n) Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

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2. Donations and Grants

. Donations and Grants
Corporate Foundations
Corporate Donors
Individual Donations
Governments & Institutions
Trusts & Foundations
Events
Restricted
£
Unrestricted
£
2024 Total
£
3,717,792
-
3,717,792
190,198
633,472
823,670
64,329
138,169
202,498
1,416,626
-
1,416,626
1,203,198
-
1,203,198
-
59,883
59,883
6,592,143
831,524
7,423,667

Included within Donations from Corporate Donors are Gifts-in-Kind of £37,913 (2023: £71,748) and the corresponding expenditure is included in support costs (Note 4).

Income from corporate foundations includes income of GBP 171,970 (EUR 200,287) from the IKEA Foundation for a multi-year project to develop Hand in Hand's capacity in circular economy and regenerative agriculture.

Corporate Foundations
Corporate Donors
Individual Donations
Governments & Institutions
Trusts & Foundations
Events
Restricted
£
Unrestricted
£
2023 Total
£
2,403,071
-
2,403,071
298,344
81,748
380,092
133,220
129,440
262,660
962,954
-
962,954
1,489,005
39,844
1,528,849
-
713,628
713,628
5,286,594
964,660
6,251,254

3. Net Expenditure

Net expenditure is stated after the following expenses:

2024 2023
£ £
Depreciation 10,056 9,618
Auditor's remuneration 16,500 12,900
Operating lease payments 59,843 59,680

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4. Analysis of Total Expenditure & Support Costs

Restricted
direct costs
Unrestricted
direct costs
Support Costs 2024 Restricted
direct costs
Unrestricted
direct costs
Support Costs 2023
Staff Costs Other Costs Staff Costs Other Costs
Costs of raising
funds
Fundraising costs - 478,220 16,839 15,582 510,641 - 405,578 10,172 9,709 425,459
Charitable
Activities
Supporting people in
Afghanistan
979,270 - 14,792 42,025 1,036,087 1,322,826 - 15,531 36,584 1,374,941
Supporting people in
India - - - - - - - - - -
Supporting people in
Kenya
2,936,050 - 59,270 63,253 3,058,573 4,251,397 - 68,499 65,383 4,385,279
Supporting people in
Tanzania
1,436,237 - 29,376 19,029 1,484,642 1,658,213 - 18,822 21,565 1,686,600
5,351,557 478,220 120,277 139,889 6,089,493 7,232,436 405,578 113,024 133,241 7,884,279

Included in Restricted Direct Costs spent on Charitable Activities - Supporting people in Kenya is £413,577 (€481,677) relating to a project funded by the IKEA Foundation for a multi-year project to develop Hand in Hand's capacity in circular economy and regenerative agriculture.

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Analysis of Support Costs
2024 All costs Fundraising Supporting
people in Kenya
Supporting
people in
Tanzania
Supporting
people in
Afghanistan
Building costs 43,534 6,094 21,453 10,633 5,354
Trademarks 4,122 577 2,031 1,007 507
Office costs 41,911 5,868 20,653 10,236 5,154
Audit fees 6,449 903 3,178 1,575 793
Legal and
professional
278 39 137 68 34
Trustees’ expenses 1,584 222 780 387 195
Staff and other
consultancy
120,277 16,839 59,270 29,376 14,792
Travel costs 12,631 1,768 6,225 3,085 1,553
Country Expenses 28,591 - 8,407 (8,154) 28,338
Strategic Initiatives 790 111 389 193 97
260,167 32,421 122,523 48,406 56,817
2023
Building costs
Trademarks
Office costs
Audit fees
Legal and
professional
Trustees’
expenses
Staff and other
consultancy
Travel costs
Country
Expenses
Strategic
Initiatives
All costs
Fundraising
Supporting people
in Kenya
Supporting
people in
Tanzania
Supporting
people in
Afghanistan
5,902
532
3,577
982
811
77
7
46
13
11
8,626
776
5,228
1,437
1,185
860
77
522
143
118
67,038
6,033
40,629
11,164
9,212
1,056
95
640
176
145
113,024
10,172
68,499
18,822
15,531
4,071
366
2,468
678
559
25,360
-
-
3,600
21,760
20,251
1,823
12,273
3,372
2,783
246,265
19,881
133,882
40,387
52,115

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5. Staff Costs and numbers

Salaries and wages
Social security costs
Pension contribution
2024
2023
£
£
910,411
744,201
101,578
84,512
52,241
45,162
1,064,230
873,875

The number of employees earning over £60,000 in the year is as follows:

2024 2023
Nos Nos
£60,000 - £70,000 1 0
£70,000 - £80,000 0 1
£80,000 - £90,000 1 0
£90,000 - £100,000 1 1

The average weekly number of employees (full time equivalents) during the year was as follows:

ollows:
2024 2023
Nos Nos
Operational 10.5 6.9
programmes
Fundraising and
publicity
6.5 6.4
Management and administration 1.2 1.3
18.2 14.6

The average headcount of employees was 20 (2023: 17).

Key management personnel is made up of the Trustees, CEO, Deputy CEO, Head of Philanthropy and Corporate Partnerships, Head of Communications and the Director of Finance. The total employee benefits of the charity’s key management personnel were £430,159 (2023: £384,404).

Every year a charity sector pay benchmarking exercise is carried out to ensure that salaries are in line with other similar organisations.

No trustee received any remuneration or other employment benefit during the financial year. (2023: nil).

£1,583 relating to 2 trustees was spent on travel expenses for board meetings during 2023/24 (2022/23: 1 trustee, £1,056).

6. Taxation

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

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7. Tangible fixed assets

. Tangible fixed assets
Cost
At 1 April 2023
Additions in year
As at 31 March 2024
Depreciation
At 1 April 2023
Charge in the year
As at 31 March 2024
Net Book Value
At 31 March 2024
At 31 March 2023
Leasehold
improvements
Office Equipment
Total
£
£
£
49,991
48,977
98,968
-
15,730
15,730
49,991
64,707
114,698
34,993
40,424
75,417
4,999
5,057
10,056
39,992
45,481
85,473
9,999
19,226
29,225
14,998
8,554
23,552

All fixed assets are used to fulfil the charity’s objects.

8. Long term debtors

. Long term debtors
Rent Deposit
Enterprise incubation funds
2024
2023
£
£
-
43,320
-
154,131
-
197,451

The Enterprise incubation funds have been made to Hand in Hand Eastern Africa to enable them to make micro-loans to beneficiaries. They are public benefit entity loans that are not repayable on demand and were loaned to the beneficiary as part of the purposes of the charity's objects.

There is a five-year repayment plan in place for Hand in Hand Eastern Africa to repay the full balance. In the year, one repayment of £150,665 was made as part of the repayment plan. The

remaining balance of £150,984 is due to be repaid by March 31 2025.

9. Debtors: amounts due within one year

Accrued Income
Other debtors
Prepayments
EIF Loan
HIHDE loan
2024
2023
£
£
1,945,936
1,495,979
665
-
43,974
44,512
150,984
154,131
37,034
-
2,178,593
1,694,622

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10. Creditors: amounts due within one year

Taxation and social security
Accruals
Trade Creditors
2024
2023
£
£
28,733
-
34,577
22,094
280,234
496,955
343,544
519,049

11. Analysis of net assets between funds

2024
Tangible fixed assets
Current assets
Current liabilities
Net assets as at 31
March 2024
Restricted funds
Unrestricted
funds
Designated
funds
Total funds
£
£
£
£
-
29,225
-
29,225
3,654,139
1,149,915
1,852,979
6,657,033
(195,350)
(148,194)
-
(343,544)
3,458,789
1,030, 946
1,852,979
6,342,714
2023
Tangible fixed assets
Current assets
Current liabilities
Net assets as at 31
March 2023
Restricted funds
Unrestricted
funds
Designated
funds
Total funds
£
£
£
£
-
23,552
-
23,552
2,760,669
1,161,668
1,713,219
5,635,556
(488,702)
(30,347)
-
(519,049)
2,271,967
1,154,873
1,713,219
5,140,059

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12. Related parties

The following transactions were made during the year:

==> picture [468 x 505] intentionally omitted <==

----- Start of picture text -----
2024
Amount owing Nature of
Total amount
Nature of to/(from) connected transactions
Connected Charity sent/(received) in
relationship entity at year end
the year
Sister Donations
HiH Sweden 139,579 72,413
organisation
HiH Deutschland Sister Donations and loan
37,556 (36,697)
organisation
Implementing Transfers for
HiH Kenya 2,272,114 (74,408)
Partner projects
Transfers for
Implementing
HiH Tanzania 1,187,542 - projects
Partner
Implementing Transfers for
HiH Afghanistan 729,463 118,775
Partner projects
Implementing Transfers for
HiH India - -
Partner projects
Friends of Hand in Sister Donations
(875,125) -
Hand organisation
2023
Amount owing to Nature of transactions
Total amount
Nature of connected entity
Connected Charity sent/(received) in
relationship at year end
the year
HiH Deutschland Sister Donations and loan
- -
organisation
Sister Donations
HiH Sweden 50,457 -
organisation
Implementing Transfers for projects
HiH Kenya 3,102,361 488,702
Partner
Transfers for projects
Implementing
HiH Tanzania 1,495,538 -
Partner
Implementing Transfers for projects
HiH Afghanistan 1,223,739 -
Partner
Implementing Transfers for projects
HiH India - -
Partner
Friends of Hand in Sister Donations
(1,264,360) -
Hand organisation
----- End of picture text -----

Amalia Johnsson (Deputy CEO at Hand in Hand International) is Chair of Hand in Hand Eastern Africa, Chair of Hand in Hand Eastern Africa Tanzania, Board Member of Hand In Hand In Afghanistan.

Dorothea Arndt (CEO of Hand in Hand International) is a Trustee of Hand in Hand Eastern Africa and is also a Trustee of Hand in Hand Afghanistan and Hand in Hand Deutschland.

Stephanie Nicholson (Director of Finance) is Treasurer of Hand in Hand Deutschland.

Bruce Grant and Dorothea Arndt are Trustees of Friends of Hand in Hand, a charity registered in the United States of America.

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Transactions with Trustees

During the year 2023/24 1 trustee made donations (2022/23: 2). These trustees donated a total of £638,560 (2022/22: £522,857). 1 company related to a trustee made donations in the year, including 1 donation in kind (2022/23: 2). The total of these donations was £164,128 (2022/23: £64,384). Donations from family members of trustees were £37,150 in total (2022/23: £112,297).

13. Obligations under operating leases

2024 2023
Land and Land and
buildings buildings
£ £
Within 1 year 60,529 60,529
Between 1-5 years 80,231 140,760
140,760 201,289

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14. Movements in funds

2024
Balance at 1
April 2023
Income Expenditure Foreign
Exchange
Losses
Transfers Balance at 31
March 2024
Restricted Funds
Afghanistan 351,149 853,023 (992,371) - - 211,801
Kenya 1,591,157 3,182,305 (2,935,044) - (43,423) 1,794,995
Tanzania 329,661 2,556,815 (1,432,725) - (1,758) 1,451,993
2,271,967 6,592,143 (5,360,140) - (45,181) 3,458,789
Unrestricted Funds
Unrestricted funds 1,154,873 847,407 (729,803) (146,952) (94,579) 1,030,946
Designated funds - match funding 808,465 - - - 429,898 1,238,363
Designated funds - EIF & Strategic
Plan
904,754 - - - (290,138) 614,616
2,868,092 847,407 (729,803) (146,952) 45,181 2,883,925
5,140,059 7,439,550 (6,089,943) (146,952) - 6,342,714
2023
Balance at 1
April 2022
Income Expenditure Foreign
Exchange Gains
Transfers Balance at 31
March 2023
Restricted Funds
Afghanistan 422,064 1,272,393 (1,322,826) - (20,482) 351,149
Kenya 3,000,435 3,089,864 (4,251,397) - (247,745) 1,591,157
Tanzania 1,118,761 924,337 (1,658,213) - (55,224) 329,661
4,541,260 5,286,594 (7,232,436) - (323,451) 2,271,967
Unrestricted Funds
Unrestricted funds 810,627 967,476 (651,843) 213,863 (185,250) 1,154,873
Designated funds - match funding - - - - 808,465 808,465
Designated funds - EIF & Strategic
Plan
1,204,518 - - - (299,764) 904,754
2,015,145 967,476 (651,843) 213,863 323,451 2,868,092
6,556,405 6,254,070 (7,884,279) 213,863 - 5,140,059

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£45,181 has been transferred from restricted funds to unrestricted funds in FY23/24, being the combined foreign exchange gains at the end of individual projects that were completed during the financial year. £429,898 has been transferred to the designated fund for match funding, being events income raised at a gala in November 2023; this has been designated for the purpose of unlocking new funding where a match funding contribution is a pre-requisite. The designated fund for the EIF and current strategic plan was reduced by £290,138 during the year, being the reduction in the EIF debtor (through repayments in FY23/24) and funds used to increase in fundraising staff capacity as part of the strategic plan.

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