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THE ASSOCIATION OF

CHARITABLE ORGANISATIONS

REPORT OF TRUSTEES

For the year ended 30[th] September 2022

Charity No: 1118605

Company No: 6113479

Chair’s Foreword

The last year has seen ACO celebrate its 75[th] Anniversary and it has been clearer than ever – as we have entered the “Cost of Living crisis” – that our member charities continue to provide critical financial and well-being support to individuals and families in significant need.

During the course of the year we ran our “Support During the Squeeze” outreach campaign, connecting with key referral and advice organisations working closely with the general public, to ensure awareness of the range of support available from benevolent/grant-making charities that could positively impact individuals and families struggling to afford essentials and meets rising costs.

Digitalisation has continued to positively impact the working models of charities, in terms of how they communicate, interact with, and deliver services to their respective audiences. From ACO’s perspective, we have looked to regularly share learnings from organisations that have utilized technology to improve their operational effectiveness. At the same time, we have been keen to ensure there is still a continuing dialogue around the need to reach audiences without access to digital technology.

We have looked to collaborate with external organisations on projects and initiatives that positively impact the sector. Our relationship with Lightning Reach as a founding partner of their “Social Innovation Council” has seen the development and launch of their online grant’s portal, a product which enables users to identify and apply online for support from multiple providers and which is gaining increasing interest and traction amongst grantmakers. Similarly, we have commenced a project this year with 360Giving to enable charities to publish their grantmaking to individuals on their existing platform, providing significant potential benefits for the sector through data transparency, analysis and benchmarking.

At the same time, I’m delighted to report that - supported by a generous funding from CCLA Investment Management - we were able to develop and implement a much needed upgrade to our previous website, which now provides a far superior platform for ACO to position itself and communicate with both our membership and external audiences.

We continue to balance our service output against the need to manage costs and broader financial sustainability. It continues to provide a robust challenge given our relatively limited income streams, and we have closed the year with a small deficit. However, the Board remains committed to increasing our reserves position and we will look to build our income base moving forward.

As we move towards the close of 2022, we remain confident that ACO plays a valuable role in helping benevolent/grant-making charities share their resources, learnings and experience with each other and in doing so build a more robust sector to support our beneficiary audiences.

D’Arcy Myers

ACO Chair

Objectives & Activities
Status
Charitable Objects
Achievements & Performance
Knowledge Sharing
Campaigns
Collaboration
Communication
Structure, Governance & Management - Governance
Trustees’ Responsibilities Statement
Administration
Risk
Membership
Statement of Public Benefit
Financial Review
Financial Sustainability
Reserves Policy - Remuneration Policy for key management personnel
Plans for the Future
In Appreciation
Charity Information
Trustees
Chief Executive
Secretary
Professional Advisers
Annual Accounts 2019-20 - Statement of Financial Activities
Balance Sheet
Notes to the Accounts
Independent Examiner’s report

1. OBJECTIVES and ACTIVITIES

Status

The Association of Charity Officers (ACO) was founded in 1946. In June 2011 members agreed to a change of name from Association of Charity Officers to Association of Charitable Organisations. This represented a shift in emphasis from individuals working within member charities to member charities as a whole.

ACO is a registered charity, number 1118605 and a Company Limited by guarantee, company registration number is 6113479. From 1[st] February 2022 the address of ACO’s registered office is 28 Commercial Street London E1 6LS.

Charitable objects

ACO’s objects are “to promote for the public benefit the efficiency and effectiveness of charities, particularly but not exclusively those which relieve individuals in need, by assisting in their better administration and promoting the sharing of information and practices useful to these charities.” ACO achieves its objects by:

Undertaking research into the work and impact of our members;
Encouraging developments and innovations in service delivery for wider benefit;
Enabling collaborative and collective working and responses between members;
Providing members with timely information, training and advice;
Influencing the law and public policy affecting the work of its members;
Providing forums for networking, learning and peer support across the individual grant giving sector.

2. ACHIEVEMENTS AND PERFORMANCE

ACO celebrated its 75[th] Anniversary through its first post-covid physical event in November 2021, which provided the opportunity to launch its first Annual Awards programme, celebrating the achievements of both charities and individuals throughout the network – a template which will now be repeated on a yearly basis.

During the course of the year, as the impact of the cost of living crisis became more evident, ACO focused activity around broadening awareness of the support and resources available through benevolent/grant-making charities – particularly to referral and advice agencies.

Key areas of delivery for ACO across 2021-22 included:

Knowledge Sharing

ACO maintained its regular programme of (virtual) knowledge sharing events accessible to members. Our primary focus has been the increasing development of Special Interest Groups, tailoring content to specific segments of membership. These groups have gradually increased during the course of the year to now include:

▪ CEO Forum

Income Generation & Fundraising
Evaluation & Impact
Marcomms
Small Charities
International Beneficiaries

We will continue to introduce new virtual groups where demand is identified.

In addition to our quarterly Grantmaker Forums, we also managed a range of bespoke (virtual) events across the year that included:

Supporting Individuals through the Cost of Living Crisis
Appliance Poverty – discussion workshops (led by National Benevolent Charity)
Introduction to Crisis Management
360 Giving workshop – Grantmaking to Individuals data platform
Lightning Reach – online grants portal workshop

In the final month of the financial year (September 2022) we were delighted to host our first physical annual conference since 2019 in London. With 119 attendees, the event proved a strong success - with the programme incorporating the second Annual Awards ceremony – and provides a tremendous opportunity to bring together professionals from across the sector to renew/build new relationships with their charity peers.

Campaigning/Lobbying

ACO continued to campaign on issues impacting benevolent/grant-making charities where resources allowed charities, both in terms of activity to build the profile of our member organisations, as well as collaborating in broader external campaigns (primarily through participation in the Civil Society Group of national charity infrastructure bodies) to ensure the needs of the sector – and its audience – is clearly communicated to Government, Regulators and Funders.

During 2022, ACO ran its “Support During the Squeeze” outreach campaign, working to strengthen relationships with key referral and advice organisations to raise the profile of benevolent/grantmaking charities and their potential resources to help support the needs of clients/service users struggling to afford essentials and meet rising costs.

Collaborations

ACO has continued to collaborate with external organisations on initiatives that deliver value to the network. Through our relationship with Lightning Reach as a participant on their “Social Innovation Council,” we have contributed to the product development of their online grants portal, designed to enable users to identify and apply online to multiple grant providers. This portal has gained increasing interest and traction since launch. Similarly we have commenced an initiative with 360 Giving to enable charities to publish their grantmaking to individuals data onto 360Giving’s existing

platform, providing significant potential benefits for the sector through data transparency, analysis and benchmarking.

Communication

Following financial support provided by CCLA Investment Management, ACO were able to develop and implement a new website platform, which has considerably increased its ability to communicate effectively with both its internal membership and external stakeholders.

3. STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance

Two Trustees were appointed to the Board at the 2022 AGM (6[th] July)

Caroline Gee (Charity Business Development Manager, EdenTree Investment Management);
Victoria Crawford (Senior Manager, Investment Partnerships, World Business Council for Sustainable Development);

A strong and effective board is synonymous with a strong and effective organisation. ACO will continue to attract and recruit high calibre sector individuals to contribute as Trustees. The Board will continue to recruit new members - when required - to fill gaps in the present array of skills and to maintain a diverse range of organisations represented.

The Trustees of the Charity, as defined in the Companies Act 2006, are also Directors for the purposes of charity law. Eligibility for election to the board of trustees is for up to fifteen trustees, two thirds of whom must be a nominated representative of a charity member organisation at the time of appointment. Elections are governed by the Articles, (a copy of which may be obtained from the secretary or on the website).

Trustees are elected at the AGM for a term of office of three years. A retiring trustee may stand for re-election but may not be re-elected after serving for six years until three years from the date of his/her second retirement.

The Trustees met regularly during the financial year, to undertake their governance role in ensuring the effective strategic, operational, and financial performance of the organisation.

Trustees’ Responsibilities Statement

The Trustees (who are also directors of the Association of Charitable Organisations for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS102 the Financial Reporting Standard applicable in UK and Republic of Ireland. Under company law the Trustees must not approve the financial statements unless they’re satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the

charitable group for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it’s inappropriate to presume that the charitable group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They’re also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that so far as each Trustee is aware, there is no relevant information of which the charitable company’s independent examiner is unaware; and the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant information and to establish that the charitable company’s independent examiner is aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Trustees have taken the exemption available to small companies and haven’t prepared a strategic report.

Administration

The day-to-day management of the Charity has been delegated to the Chief Executive, supported by a small staff team.

ACO has a risk register that is reviewed regularly by trustees. Key risk areas this year included:

*Risk Area*	*Mitgaton*
Insufcient income to sustain core actvites	Stringent budgetary planning in place/regular
	management accounts review/increase in
	membership numbers/
Loss of core staf	Succession planning/systems & project
	documentaton/role support
Further pandemic impact	Remote working/virtual actvity/role cross-
over	capability

Financial mismanagement

Charity fraud/failure to comply with legislation

Strong Treasurer function on Board/regular financial monitoring/annual Independent Examiner review Specific financial procedures providing authorised expenditure parameters and control/ continuing external agency HR and H&S support to ensure compliance

Trustee body lacks relevant skillsets

Annual skills gaps analysis, trustee recruitment and induction process

The Board continues to closely monitor potential risk areas and take appropriate actions in conjunction with the Chief Executive to mitigate issues as deemed necessary.

Membership

Charity membership of the Association was 122 on 30th September 2022.

Statement of Public Benefit

Trustees have regard to the Charity Commission’s guidance on public benefit and consider that ACO’s activities have provided public benefit, through helping benevolence charities optimise their own public benefit through a range of approaches, which include best practice initiatives, networking opportunities, and influencing policy where this is likely to impact on member charities and those they serve.

4. FINANCIAL REVIEW

Financial Sustainability

As previously reported, in 2020, the Board – in conjunction with the Chief Executive – had agreed a range of measures in order to maintain the financial sustainability of the charity, particularly in the context of the economic impact of Covid 19 across the charity sector. These measures had enabled ACO to reverse the significant financial deficits of 2018-19 and 2019-20 and close the financial year in surplus.

During the course of 2020-21, ACO worked to balance expanding service delivery against the need for stringent cost controls. Whilst expenditure was broadly managed in line with budget, the combination of costs associated with the return to desk license provision at 28 Commercial Street combined with lower than anticipated membership growth resulted in a deficit for the year of £4,631 (non-restricted income).

Reserves Policy

Any organisation requires reserves to safeguard itself against major fluctuations in income or delays in income being received and or unexpected items of expenditure. It is our objective to build and maintain our free reserves at a level of six months’ expenditure to give the Board the security of being able to plan for the long term as well as continue to be able to pay necessary

expenses such as salaries. Unrestricted reserves as of 30th September 2022 were standing at £28,347 against £32,978 (2020-21) broadly 2 months of our actual expenditure for 2021-22. The financial position is closely monitored by the Board on a regular basis and reserves are considered by the Board as part of this monitoring exercise.

Remuneration policy for key management personnel

The ACO Board decides remuneration for staff on an annual basis. The aim is to offer a fair salary to attract and retain staff to lead and support the delivery of the Charity’s aims and objectives. Cost of living increases were awarded to staff reflecting rising living costs whilst maintaining budgetary controls.

Copies of the full accounts are on pages 12 to 18 of this report.

5. PLANS FOR THE FUTURE

In the context of the continuing economic uncertainty underlying the Covid pandemic, ACO’s primary focus has remained around ensuring short term activity and service delivery and maintaining financial sustainability.

However, it is hoped that as we hopefully emerge from the pandemic over the course of the following year, that this will enable the Board to focus on medium term strategic planning that will map the course of the organisation as it adapts to the evolving charity landscape and looks to meet the changing requirements of its members.

In the meantime, our immediate priorities include:

Launch of our CRM platform (Spring 2023) to enable ACO to enable ACO to help manage relationships with both its membership/potential membership base and external stakeholders;
Focus resources around systematic recruitment campaigns to build out key membership segments (such as occupational charities) and significantly increase subscription income;
Develop our special interest group offering to ensure that we connect with the key functional roles within our membership;
Continue to manage bespoke events and workshops that reflect themes impacting the operational and strategic management of our charities;

6. IN APPRECIATION

At the heart of ACO is a collaborative ethos – ‘we are better together’. The trustees would accordingly like to give sincere thanks and express their appreciation to:

ACO staff for their assistance to Trustees and members during the year;
Neil Finlayson of Moore Kingston Smith LLP, Independent Examiner, for his support, generosity and advice;
Corporate and charity partners – a particular note of mention for the financial support provided by CCLA for the development of the new ACO website;

All members for their continued support, participation and contribution which enables our network to continue to thrive.

Signed:

Date: 25 April 2022

D’Arcy Myers, Chair, on behalf of the Trustees of the Association of Charitable Organisations

7. CHARITY INFORMATION

Trustees - The trustees who held office during the financial year were as follows:

D’Arcy Myers (Chair) Consultdarcy Caroline Aldred Former CIMA Benevolent Fund Manager John Brown Former Trustee of Iprovision Jodie Gill caba Juliet Smithson Lionheart Liam Evans Action For Children Caroline Gee EdenTree Investment Management (appointed 6/7/22) Victoria Crawford World Business Council for Sustainable Development (appointed 6/7/22) Kris Barnett ICE (retired 6/7/22) Julie Green RL Glasspool (retired 6/7/22)

Chief Executive Donal Watkin Company Secretary Donal Watkin

Professional advisers

Bankers:

Unity Trust Bank Plc, Nine Brindley Place, Birmingham B1 2HB

CCLA Investment Management Limited, 80 Cheapside, London EC2V 6DZ

Independent Examiner:

Mr Neil Finlayson, Moore Kingston Smith LLP, Devonshire House, 60 Goswell Road, London EC1M 7AD

Solicitors:

Russell-Cooke, 2 Putney Hill, London SW15 6AB

Insurers:

PIB Group, Rossington’s Business Park, West Carr Road, Nottinghamshire, DN22 7SW

ANNUAL ACCOUNTS 2021 - 2022

ASSOCIATION OF CHARITABLE ORGANISATIONS STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30[TH] SEPTEMBER 2022

2021-22 (General) £ 116,175 28,020 47	2021-22 (Restricted) £ - 3,000 -	2021-22 Total £ 116,175 31,020 47	2020-21 £ 118,347 29,556 1
144,242	3,000	147,242	147,904
148,156 717	10,840 -	158,996 717	135,548 1,042
148,873	10,840	159,713	136,590
(4,631) 32,978 28,347	(7,840) 7,840 -	(12,471) 40,818 28,347	11,314 29,504 40,818

Restricted income comprises of a grant from IE Digital Ltd.

BALANCE SHEET AS AT 30TH SEPTEMBER 2022

	2021-22 Restricted £ - - -	2021-22 Total £ 10,375 10,552 20,803	2020-21 £ 65,715 10,505 4,083

41,730 (13,383)	- -	41,730 (13,383)	80,303 (39,485)
28,347	-	28,347	40,818
- 28,347	- -	- 28,347	- 40,818
28,347 -	- -	28,347 -	32,978 7,840
28,347	-	28,347	40,818

For the financial year ended 30[th] September 2022 the company was entitled to exemption from audit under section 477 Companies Act 2006. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements under the requirements of the Companies Act 2006.

BALANCE SHEET (CONTINUED)

The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its surplus or deficit for the financial year in accordance with the requirements of section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime within Part 15 of the Companies Act 2006 and with Financial Reporting Standard 102.

The notes on pages 4 to 7 form part of these financial statements.

Approved by the Board for issue on 22 June 2023 and signed on their behalf by:

D’Arcy Myers, Chair:

John Brown, Honorary Treasurer:

Company Registration No: 6113479

ASSOCIATION OF CHARITABLE ORGANISATIONS

These Notes are an Integral Part of the Accounts For the Year Ended 30[th] September 2022

1. Accounting Policies

(a) Basis of preparation

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), the 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 Republic of Ireland (FRS 102) Charities SORP (FRS 102) and the Charities Act 2011/Companies Act 2006. FRS 102 has been adopted for the first time when preparing these financial statements. The transition date to FRS 102 was 1 October 2014 and the last financial statements prepared under the previous financial reporting framework were prepared for the year ended 31 September 2015. The financial statements are prepared in sterling, which is the functional currency of the charity.

(b) Going concern

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

(c) Depreciation Equipment, Fixtures, Fittings and Furniture are depreciated at 25% per annum on a straight line basis.
(d) Subscriptions are accounted for in the year to which they relate.
(e) Financial Instruments

Basic financial instruments are measured at amortised cost other than investments which are measured at fair value.

(f) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

(g) Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. 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.

2021-22 General 2021-22 Restricted £ £ 91,915 0 24,260 0 116,175 0 5,100 0 22,920 0 0 3,000 0 0 28,020 3,000 717 0 6,344 0 26,735 10,840 114,915 0 162 0 148,873 10,840		2021-22 Total £ 91,915 24,260 116,175

5,100 0 22,920 0 0 3,000 0 0 28,020 3,000		5,100 22,920 3,000 0 31,020
717 0 6,344 0 26,735 10,840 114,915 0 162 0 148,873 10,840		717 6,344 37,576 114,915 162 159,713
	2021-22 £ 99,174 5,838 2,976 710 6,217 114,915 2021-22 2 1

One employee earned more than £60,000

6. Pension Costs

The pension staging date for auto-enrolment was in January 2017 and ACO has set up an appropriate scheme for employees. The 2 full time members of staff have enrolled into the NEST Scheme. The part time member of staff does not meet the qualifying requirements.

7. Trustees’ Remuneration and Expenses

No remuneration was paid to any Trustee but reimbursement has been made of necessary travel expenses of £65 (2020-21 £129) for Trustees included under Governance costs. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year.

8. Lease

There is no lease on office accommodation. The property that is occupied is governed under a memorandum of agreement in which there are no liabilities.

9. Creditors

Creditors falling due within one year Sundry Creditors Subscriptions paid in advance Creditors falling due after one year		2021-22 General £ 13,383 0 13,383	2021-22 Restricted £ 0 0 0	2021-22 Total £ 13,383 0 13,383	2020-21 £ 870 38,615 39,485
		0	0	0	0

10. Analysis of Net Assets

Current Assets Current Liabilities	2021-22 General £ 41,730 (13,383) 28,347	2021-22 Restricted £ 0 0 0	2021-22 Total £ 41,730 (13,383) 28,347	2020-21 £ 80,303 (38,615) 40,818

Independent examiner’s report to the Trustees of The Association of Charitable Organisations

I report to the charity Trustees on my examination of the accounts of the Company for the year ended 30[th] September 2022.

Responsibilities and basis of report

As the charity’s Trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my independent examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for Accounting and Reporting by Charities.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Date: 30 June 2023

Neil Finlayson, FCA, DChA

Independent Examiner

For and on behalf of Moore Kingston Smith LLP

Chartered Accountants 9 Appold Street London EC2A 2AP

http://www.mooreks.co.uk

2022-09-30-accounts