2022-12-31-accounts

14 F¢undaiion,, OUR IMPACT AND FINANCIAL STATEMENTS FOR 2022

What’s insIde

A Message From our Chair ............................................................... 3 Who we Are ...................................................................................... 4 Funding ............................................................................................ 5 Working With Asda Community Champions .................................... 6 Our Year in Numbers ........................................................................ 8 Money Awarded by Grant ................................................................ 9 BUILDING RESILIENCE ............................................................. 10 Investing in Spaces and Places ....................................................... 11 Empowering Local Communities.................................................... 13 Under 18 Better Starts .................................................................... 14 Jubilee Celebrations ...................................................................... 15 Colleague Match Funding ............................................................... 16 Green Token Giving ........................................................................ 18 CRISIS RESPONSE ..................................................................... 19 Cost of Living ................................................................................. 20 Ukraine Response and Refugee Support........................................ 22 Emergency Community Grants ...................................................... 24 Supporting Colleagues in Crisis ..................................................... 25 What’s Next .................................................................................... 26 Thank You ....................................................................................... 27 REPORTS AND FINANCIAL STATEMENTS 2022 ................... 28

“ the asda foundatiOn reflects the princIples Of a place-based approach and is a shInIng example Of supportIng lOcal cOmmunities and makIng a dIfference to the lIves of local peOple.

tom arthur msp, scottish government minister for community Wealth and public finance ”

2 What’s insIde

a message from Our chair

2022 was another challenging year, with economic struggles, a rise in demand for community services and support for emerging communities as a result of international war.

Community groups and charities demonstrated their resilience and resourcefulness, responding quickly to help people struggling or needing additional support.

The Asda Foundation charity continued to be there for local grassroots groups throughout.

Staying true to our commitment of building community resilience and supporting in times of crisis, our agile ability enabled our grant programmes to stay relevant and flexible to meet new emerging needs and to be there for communities.

We adapted our approach throughout 2022 in many different ways to meet the needs of the communities we serve:

In response to the invasion of Ukraine, we pledged an urgent package of support in partnership with Asda, which included grants to support refugees arriving in the UK to set up home and access the services and support they needed for themselves and their families.

Our responsive actions in moments of crisis strengthened our approach to supporting resilience in communities. Through our new higher value grant programme; Investing in Spaces and Places, we awarded 60 grants to create safe and inclusive spaces at the heart of local communities to bring people together. Over £700k was invested through our Better Starts grant programme, giving children the best start in life and our Empowering Local Communities grant programme funded equipment and resources to keep vital services and programmes open.

Following the pandemic, our communities’ needs have changed and as a community funder, remaining informed and knowledgeable is very important to us. We made a commitment at the start of 2022 to understand more. Through launching a Community Tracker in conjunction with Asda, we listened to community groups, the general public and Asda Community Champion colleagues. Through this, we gathered a better understanding to inform our future grant making decisions. This ongoing quarterly insight strengthens our understanding of the future challenges we face across the UK.

Thank you to everyone who made the achievements in this report possible. Special thanks to Asda for your continued support and to our operational team for working tirelessly. Most of all, thank you to the thousands of grassroots groups and charities for your unwavering commitment to making a positive difference in your local communities.

We remain dedicated to empowering small, local grassroots community groups, enabling them to overcome challenges and meet community needs to have a positive social impact on community life.

Jodie Tate, Interim Chair

In September, we announced £500k of funding to support community groups that were struggling with rising costs and increased demand for vital services, and for the creation of warm hubs.

a message from Our chair

3

Who we are

The Asda Foundation is an independent charitable foundation funded by Asda.

We’re managed by a board of trustees made up of Asda employees and external subject matter experts and our work is delivered by an operational team of nine.

We value our relationship with Asda who respect our independence and trust us to make the right decisions to achieve the biggest impact for local grassroots communities.

We have been supporting local communities through grant giving for 35 years and we’re proud to have awarded over £40 million to date.

We focus our funding on smaller, local, grassroots-led organisations making a positive difference in the heart of communities throughout the UK.

Our aims are simple – to empower small groups and organisations at a local level to enable them to overcome challenges and meet their own community needs.

Grassroots organisations are the experts delivering appropriate support for people in their local communities. That’s why we keep local groups at the heart of every decision and aim to empower and enable groups to deliver their vital work.

Whilst staying true to our aims and mission, we also pride ourselves on being a responsive, agile funder. We constantly review and evaluate our grant programmes to ensure funding is relevant and having the biggest impact locally, which has been strengthened with the launch of our Community Insights Tracker.

We’re not afraid to challenge and adapt our grant programmes if it’s the right thing to do to support local groups and communities.

We give grants ranging from £200 to £25,000 and the scope of our grant programmes is broad and far reaching, enabling us to make a positive impact across a wide range of local communities and social issues.

We’re proud to support thousands of local groups to deliver their important work year after year.

“

asda Is a busIness IntrInsically linked tO the communItIes surrounding our stores. the asda foundatiOn fOsters these relatIonships further by suppOrting cOmmunity groups through funding tO ensure those lIfelIne servIces fOr many contInues.

Jodie tate, asda foundation Interim chair and Vice president central retail Operations at asda ”

4 Who we are

funding

Our work to support local communities is funded by an annual profit related donation from Asda In 2022, we were gifted £3.6million to enable us to deliver our grant programmes.

Asda’s contribution isn’t just financial. We have access to a breadth of gift-in-kind Asda support which further enables our work, including but not limited to Community Champion time, PR, design, HR support and office space. This means we can keep operating costs low to maximise our annual grant giving, providing funds to local communities at a time when they need it more than ever.

Due to the cost-of-living crisis in 2022, we made the decision to spend down on legacy reserves, which saw us increase our spend significantly in the second half of the year to ensure more groups were able to survive and continue supporting people, resulting in over £4.3million being granted during 2022.

We’re proud to share that 91p in every pound spent in 2022 went towards achieving our ambitions through Asda Foundation activity.

“this report demOnstrates the breadth and depth of the Impact the asda fOundatIon made in 2022. I’m particularly prOud Of the support the fOundatIon has gIven tO the small, grassroOts grOups and charities makIng a huge dIfference In the heart of asda communItIes.”

mohsin Issa cBe co-Owner of asda

our fundIng strategy

Over the last few years, we have changed direction to focus on supporting small, grassroots groups, moving away from large partnership activities with national organisations.

Focused on small community groups, our theory of change has developed to focus on three key areas:

• Strengthening community resilience

• Building community inclusion and belonging

• Developing community amenities

At the heart of this local work are Asda’s Community Champions, who help us achieve big impact on a local level.

funding

5

WOrking wIth asda cOmmunity champIons

We’re proud to support local community groups to deliver lasting change in every part of the UK.

We achieve this by working alongside a network of almost 400 Asda Community Champions who understand local needs and challenges and help to deliver funding where it’s needed most. Their time to help us curate grants is part of the gift we receive from Asda stores.

They are instrumental to our grant delivery, working closely with local community groups to build relationships and to ensure funding has the biggest impact at a local level.

We also aim to add value beyond funding by providing training, guidance, and resources to empower colleagues, supporting them to build a strong and connected community network.

The work of Asda Community Champions remains a lifeline for many community groups and charities and working in collaboration with this unique network drives real change in society.

“

I’m sO prOud Of our cOmmunity champIons who wOrk tirelessly tO BuIld relatIonships and support lOcal groups With funding from asda fOundatIon. WIth the incrediBle knOwledge our cOmmunity champIons have Of theIr lOcal areas and wIth the suppOrt Of these amazing grants frOm asda foundatiOn, It really dOes make a bIg impact fOr lOcal groups and their cOmmunities - it truly does help to change liVes for the better.

craig donaldson, community lead for lancashire and lakes stores and asda colne general store manager ”

6 WOrking wIth asda cOmmunity champIons

Lisa Staggs, Wakefield Community Champion shared her thoughts on being able to access funding to support local groups:

“Asda Foundation grants are so important to the community programme – without Asda Foundation we wouldn’t be able to make such a lasting impact in the local areas we work in.”

“During my 11 years in role, I’ve supported local grassroots groups to secure tens of thousands of pounds. Without this vital funding, many groups would have been unable to survive.”

“Asda Foundation grants are broad and constantly evolving, enabling us to respond to the biggest needs in our communities. Funding is available for a wide range of activities, from helping groups through a crisis with the essentials to larger grants helping to create long lasting community spaces.”

“In 2022, £38,600 was given through Asda Foundation grants to groups in Wakefield.”

“The two grants I am most proud of are The Clothing Bank that secured £2,000.

They have been inundated with requests from families for clothing parcels and estimated that they handed out over 2000 parcels last year. They fundraised for a new storage unit and needed essential items like socks, underwear, nightwear etc for the clothing parcels. These made a huge difference to families who essentially are low wage earners, trying to pay bills and cannot afford to clothe their children or themselves.”

“The second one is the amazing Dream Time Creative that managed to secure £20,000 for the Chapel they were converting. They needed a new kitchen and essential building repairs in addition to creating an outdoor space and memory garden. This has been a lifeline for the many groups who use the Chapel, including support for women from abusive backgrounds who can meet in a safe space and feel safe within their surroundings. The group wanted to create a greenspace within the city as there was no other greenspace around, which they’ve done incorporating stories from a local female suffragette and writer who lived in 1850’s Wakefield, bringing her stories to life in the garden.”

WOrking wIth asda cOmmunity champIons 7

2022 - our year in numbers

In total over £4.3 mIlliOn Awarded in 2022

Scotland £546,590

England £3,321,262

Northern Ireland £230,975

Wales £216,617

7,119 grants giVen

hOw we spent Our funds

84% BuildIng resilience (54% in 2021)

16% crisis respOnse (46% in 2021)

91 p in every pound spent on grants

8 2022 - Our year in numbers

mOney aWarded by grant

£702,849 under 18 Better starts

£107,366 cOlleague match funding

£644,810 Investing in spaces & places

£542,270 cOst Of lIvIng

£980,300 green tOken gIvIng

£165,596 partnershIps

£18,170 emergency dOnatIons

£1,022,841 empOwerIng local cOmmunities

£39,955 cOlleague hardship

£69,037 supermarket dOnatIons

mOney aWarded by grant 9

BuildIng resilience

We’re proud of our broad and inclusive grant criteria which recognises and champions a wide range of groups and projects tailored to different local needs.

Our continued focus on building resilience in local communities enabled groups to grow and thrive throughout a year of continued uncertainty and new challenges.

Under our building resilience aim were the following grants:

• Investing in Spaces and Places

We distributed funding to get groups back on track, to improve resources, facilities and services, and we enabled groups to reach and support more people in their local communities.

• Empowering Local Communities

• Under 18 Better Starts

• Colleague Match Funding

• Green Token Giving

Our focus was on strengthening communities by enabling groups to deliver their vital work and empowering them to respond, adapt, recover and survive.

“

thanks to asda foundatiOn’s support wIth fundIng to refurBish our buildIng, we’ve Been aBle to put on more actIvItIes and eVents, including a cOmmunity choIr, stand-up cOmedy, traInIng, fIlm making and spoken Word.

”

headspace Bolton cIc

10 BuildIng resilience

Investing in spaces and places

Vital community spaces which provided places for people to meet and deliver services and activities faced rising costs and funding cuts.

yOuth and cOmmunity cOnnexiOns supported by asda edmOnton

Community spaces are a lifeline for many, and we wanted to play our part in uniting communities and reducing loneliness, to build a sense of inclusion and belonging, by sustaining and improving community spaces for people to be together.

Youth and Community Connexions in Edmonton received a £24,650 grant to transform an abandoned retail unit into a usable warm and welcoming community space for hundreds of young people, offering free and affordable community activities, services, workshops and events.

As a result, we launched a new higher value Investing in Spaces and Places grant enabling groups to create or develop safe and inclusive spaces in the heart of local communities.

Funding was used to carry out repairs and upgrade out of date rooms, creating vibrant community facilities including a new kitchen, computer room, studio and community workshop space.

£750,000 was awarded in 2022 providing investment for 60 community spaces, of which £644,810 was donated during the year and £105,190 is committed in 2023.

The youth led charity was established in 2008 in response to escalating gang violence in the community and takes a fresh approach to youth work to support the varied and diverse communities of north London. The charity is passionate about helping young people become confident, informed, and empowered to be proud of who they are as individuals.

programmes, and workshops for young people here at the centre whilst also providing a sense of security for the elders and helping the community feel a much safer place. Thanks to this funding, we will be able to put on new activity and expand our services to help more young people, for example our new upgraded kitchen means we can run free after school clubs and healthy eating classes. We’ll also be better able to address equality, diversity and inclusion including employment and language classes.”

£750,000 aWarded cOmmunity 60 spaces

Adria Bennett, Youth and Community Connexions Director said: “The Asda Foundation grant has been instrumental in getting the new and improved space open for young people so early. We can now deliver a wide range of activities,

BuildIng resilience 11

the gateway cOllectIve cIc

the gateway cOllectIve cic supported by asda BOotle

options that were not possible on a camping stove and create new recipes from the food we grow. Our new facility also helps us to address the rising cost of living by reducing food poverty in our community, giving local people the tools to grow and cook for themselves.”

Asda Foundation provided The Gateway Collective CIC a grant for £14,750 to transform an outdoor community space within North Park Community Garden. The group used the funding to build a kitchen and outdoor classroom within the garden space, so the group no longer needs to use hotplates to cook meals. The new learning space is used to educate the community on how to cook with what they grow.

Colette Johnson, Community Champion Asda Bootle, said: “I have been going to North Park Community Garden (where The Gateway Collective CIC is based) since 2016 and I have watched it grow and develop over the years. As the garden has expanded, new people have joined and benefited from it. It’s more than a garden. It is a place for people to meet other people, to socialise and to work together. The food they grow and cook is just as an important part of the process as eating together. The garden was limited due to lack of facilities, but this new kitchen brings an important extra element and will help the garden become even more of a community hub where everyone is welcome and has a place to belong.”

The group runs a community garden space, growing vegetables which are shared with the community or cooked to give meals. The project helps to boost wellbeing, create social connections, tackle food poverty and makes Bootle a better place for everyone using the tool of gardening.

Ali Horton, Founder of The Gateway Collective CIC, said: “Thank you Asda Foundation, we were so pleased to receive your support! Cooking and eating together is an integral part of our sessions helping to create community togetherness and combating food poverty, however without a kitchen we relied on camping stoves and cooked outside. This grant funded a fully fitted kitchen which is ready to use and we’re already seeing the benefits. We’re now able to reach more people and we plan to open a café enabling us to use the space during the cold winter months. It has also enabled us to increase our range of cooking

One gardener said: “Since I started coming to the garden, I’ve met some wonderful people I would never normally meet. It’s been a joy and I now have a group of people I can call friends. The garden is an opportunity to change people’s lives for the better and build a better community. Long may it continue!”

12 BuildIng resilience

empOwerIng local communItIes

Last year, we gave £1,022,841 to 1104 groups through our Empowering Local Communities grant – our most popular (and oversubscribed) grant of 2022.

We know by speaking to people in their local communities, that the specific needs in each local community are different, and wide ranging. We also know that local groups and charities are the experts in addressing those challenges and aim to support local people in the most appropriate way.

It’s for that reason the criteria for this grant were purposely broad. We wanted to empower local groups to apply for what was important for them, enabling small local grassroots groups and organisations to deliver localised support and big impact. Groups could apply for funding to support a wide range of needs, from providing essentials, to connecting people through sport or improving a sense of belonging through community celebrations, to improving mental health and wellbeing.

£1,022,841 1104 aWarded groups supported

denmead cOmmunity cafe supported by asda waterloOvIlle

Denmead WI Belles received an Empowering Local Communities grant of £500 to buy craft materials and supplies for their community café.

Lara, WI Member and Café Organiser said: “The community café was set up before the pandemic to reduce loneliness and isolation. We offer simple crafts, refreshments, cake and biscuits along with a very warm welcome. We’ve seen a huge increase in people visiting the café for a cuppa, or to join in with activities and meet others. This grant will make a huge difference to what we are able to provide at the café – thank you Asda Foundation!”

the rOyal natIonal cOllege fOr the blind supported by asda herefOrd

The Royal National College for the Blind (RNC) in Hereford was supported with a grant for £810 to purchase height adjustable work benches to make outdoor activity more inclusive for wheelchair users and those with additional needs.

The aims of the organisation are to ensure blind and visually impaired young people are not disadvantaged because of their sight problems.

Thanks to Asda Foundation funding, all students, regardless of needs, are now able to experience the therapeutic benefits of gardening, growing plants from seeds and cuttings and learning about the cost and taste advantages growing their own food.

13

BuildIng resilience

under 18 better starts

In 2022, we launched our Under 18s Better Starts grant aiming to give children under 18 the best start in life, aimed at tackling poverty, enabling inclusion and enhancing wellbeing.

We awarded £702,849 in total and provided funding for 796 groups to make a difference in four key areas:

Providing essentials: ensuring no child goes hungry and providing the basic essentials.

Being active: giving every child the opportunity to be active.

Improving wellbeing: activities supporting children’s mental health and encouraging creativity.

Celebrating and bringing children together : enabling under 18s to be together to celebrate what’s important to them within their community.

£702,849 aWarded

caft supported by asda altrincham

An Asda Foundation grant for £1,448 enabled the Children’s Adventure Farm Trust (CAFT) to hold a winter wonderland experience throughout the festive period that was accessible to children living with illness, disability or social disadvantage.

Hannah Grahame, CAFT Fundraiser, said: “Thank you Asda Foundation for bringing the magic of the festive season to children who often find it difficult to access mainstream experiences. Your grant meant we could provide important and lasting memories for 85 children and their families.”

CAFT charity provides the opportunity for adventurous play in a countryside setting, for children whose needs often prevent them from accessing the childhood experiences that most of us would take for granted.

lytham st anne’s ymca fOotball club supported by asda blackpoOl

Lytham St Anne’s YMCA FC received a grant for £1500 to support the team with new kit and equipment, enabling three teams to play matches throughout the summer period.

Under 8s Manager, Luke, said: “This grant enabled us to give girls and boys the chance to get active over summer, increasing physical and mental health. The new kit and equipment enabled us to facilitate training and match days and meant children felt a sense of belonging in a safe, fun and inclusive environment.”

14 BuildIng resilience

JubIlee celebratiOns

Through our Empowering Local Communities and U18 Better Starts grants, we gave funding to over 250 groups so they could bring people together to celebrate The Queen’s Platinum Jubilee.

From street parties to concerts, afternoon tea to outdoor festivals, community groups went above and beyond to connect their communities and create special memories to last a lifetime.

“

the Queen’s platinum JuBilee was a wOnderful oppOrtunity fOr lOcal cOmmunities tO cOme together. we’re really proud tO haVe aWarded oVer £200k to help 250+ lOcal cOmmunity groups mark the hIstoric moment.

”

alexandra preston, asda foundation

BuildIng resilience

15

cOlleague match funding

We recognise and celebrate the fundraising achievements of Asda colleagues through Match Funding.

gary holmes skydiVe

From cake sales to marathons, sponsored walks to skydives, we matched up to £300 per colleague in 2022 to boost fundraising and make an even bigger impact for community groups and charities up and down the UK.

Service Design and Transition Manager Gary Holmes completed a skydive from 15,000ft to support Kidneys for Life charity.

In 2022, we gave £107,366 in match funding to make colleague fundraising go further.

The charity is close to Gary’s heart, after his wife of 33 years, Julie, was diagnosed with Polycystic Kidney Disease (PKD) and her kidney function gradually deteriorated to just 12%.

Although Gary wasn’t a match for donating a kidney to Julie, he joined the Living Kidney Sharing Scheme and their lives changed overnight in October 2020 when they received a call to say they’d both been matched. In January 2021, Gary donated a kidney to someone, and Julie received a kidney.

“ It’s great tO have a corpOrate charity cOmmitted tO suppOrting causes clOse to cOlleague’s hearts.

To continue raising awareness and funds for Kidneys for Life charity based at the Manchester Royal Infirmary (where the couple had their operations), Gary signed up to do a skydive.

Gary said: “I can’t quite believe I did it from 15,000ft, or 3 miles up! It was a bit high as I exited the plane but the freefall at 120mph for 60 seconds was awesome and then the glide down to a safe landing even better, it’s another world up there with amazing views!”

”

gary holmes, asda service design & transition manager

aWarded In match fundIng £107,366

“Huge thanks to the Asda Foundation for providing a Colleague Match Funding donation of £300 to boost my fundraising for this amazing charity which means so much to me. Between the five of us, we raised over £3,500 which will make a big difference for such a small charity.”

16 BuildIng resilience

“ the fundraising I have done means that they can cOntinue the valued suppOrt tO Over 4000 kIds In scotland

Joseph mcsherry, delivery driver from asda dumbarton ”

JOseph mcsherry zIpline challenge

Delivery Driver Joseph McSherry from Asda Dumbarton, took part in a 150ft zip slide for Spina Bifida Hydrocephalus Scotland, raising £180. Asda Foundation doubled the amount raised through match funding which meant a total of £360 to Joseph’s chosen charity.

Joseph’s daughter was born with the conditions, and he wanted to raise money and give back to say thanks to the charity for its invaluable help and assistance.

Spina Bifida Hydrocephalus Scotland seeks to increase public awareness and understanding of individuals with spina bifida and / or hydrocephalus and allied conditions. It aims to support all those affected to identify their needs and to empower them to make informed choices and decisions.

Joseph said: “I have an irrational fear of heights so it was very challenging to take part but it was for a very good cause so I pushed my fear aside. The charity is so important to me as they have been an amazing help with my daughter who has Spina Bifida and Hydrocephalus and they do great work to help families who also have the conditions. The fundraising I have done means that they can continue the valued support to over 4000 kids in Scotland in a number of ways and the Matched Funding from Asda Foundation will make it go even further and we are grateful for your contribution.”

BuildIng resilience 17

green t ken GIVING

Last year, we celebrated ten years of Green Token Giving.

Since launching in 2012, we’re proud to have given £10million to local communities through this programme alone, which gives customers the opportunity to nominate and vote online for their favourite local good causes.

Grants ranged from £200 to £500 and enabled grassroots groups to make a positive impact in their communities.

In 2022, we supported 2582 groups with £980,300 funding.

cOllingWoOd cOmmunity centre supported by asda queslett

The Collingwood Community Centre in Birmingham has been offering a warm welcome for more than 25 years, providing facilities for a wide range of local groups to deliver services and activities for people from the local community.

£980,300 aWarded

In 2022, the centre received a Green Token Giving donation for £300 to help towards creating a community allotment.

groups 2582 supported

Sharon Frogatt, Centre Manager, said: “We rely on donations to continue our programme of work here at the centre. The grant from Asda Foundation helped us develop our allotment space, creating an extra activity for local people to get involved with and improving health and wellbeing.”

random café supported by asda watford

The Random Café in Watford received £300 through the Green Token Giving scheme to help towards creating a community hub and garden.

The mission at Random Café is simple – to feed bellies, not bins. The group works hard to reduce waste and to create a more sustainable world, whilst providing a safe outdoor space for people in the local community to use.

Food is eaten on a ‘pay-as-you-feel’ basis which means customers can offer a financial donation of what they feel a meal is worth, give whatever they can, or recognise the value of a meal by donating their time, energy, skills and support.

Jane, Founder, said: “We rely on donations to cover running costs and achieve our mission. Every donation makes a real difference and we’re very grateful for Asda Foundation’s continued support.”

18 BuildIng resilience

crisis respOnse

Our crisis response activities included:

In 2022, we continued to be there for local communities throughout times of crisis.

• Cost-of-Living grants

• Ukraine response and refugee support

• Emergency support

Not only were local communities still feeling the effects of the pandemic, but in addition, groups faced a drop in income and pressure costs due to inflation and the cost-of-living crisis. These challenges came at the same time as a rise in demand for services and activity.

• Colleague Hardship grants

Our crisis support can consist of a cash payment in the form of a grant or product from Asda stores and depots funded by Asda foundation.

We listened, responded, and pivoted our grant programmes to launch timely and relevant grants, such as a new Cost-of-Living grant to support local groups with essentials and funding for increased rent and utility costs.

“ We are commItted to supportIng local communItIes in times Of crisis. the responsIve apprOach of the asda foundatiOn gIves us the abIlIty to react quickly in times Of greatest need thrOugh the netWork of asda communIty champiOns. this alloWs us to rapIdly mObIlIse and distriBute funding in times Of emergency, enaBlIng communItIes to meet their Immediate needs and begIn theIr recOvery frOm lOcal challenges.

”

sue hennessey, Independent, external asda foundation trustee

crisis respOnse 19

cOst-Of-lIvIng

As the cost-of-living crisis intensified, the need for help with the basics was loud and clear. Challenges varied from group to group - some required essentials to meet rising demand, whilst others needed support with rising bills to keep their doors open for their local community.

As a result, we launched a new Cost-of-Living grant which offered support towards increased running costs – a new approach in response to new challenges. We simplified the application form and prioritised the most urgent applications so we could get funding quickly to the groups most in need.

We saw a record number of applications submitted after launching in September and in just a four-month period, we gave grants totalling £542,270 to 506 local groups.

We saw an increase in applications from foodbanks requesting support to meet unprecedented demand. Warm banks emerged to keep people warm and together, and some organisations started to offer hot meals alongside their usual services, to provide adequate nutritious meals for those who couldn't afford to eat.

£542,270 aWarded groups WOodlands fOod taBle 506 supported supported by asda larne

In the run up to Christmas, we supported Woodlands Food Table based in Carrickfergus with a Cost-of-Living Grant for £1,000.

Since forming during the pandemic, the group has continued to support the Carrickfergus community through difficult times. Funding was used to create an extra 20 food parcels per week to help local people through the winter period.

Volunteer Wendy Boyd said: “Times are really hard for people at the moment. As costs increase, families are having to choose between eating or heating their homes. This grant will make a huge difference and enable us to provide food for those struggling.”

“It also gives us an opportunity to reach new people and to invite them in for a cuppa and a chat, to meet others and keep warm in the cold winter months.”

“Thank you for helping us to provide ongoing support for those in need from our local community during such challenging times.”

20 crisis respOnse

cOst-Of-lIvIng

centenary methodist church supported by asda BOston

Thanks to the Asda Foundation grant, which has been amazing, we’ve been able to maintain our current meal provision and expand to provide warm space throughout the cold winter months, when some were having to choose between heating and eating. We’ve been able to extend each sitting by four hours, with free tea, coffee, biscuits, conversation and activities to reduce isolation and alleviate some of the adverse impacts of hardship and spiralling costs. We’re committed to serving our community and really appreciate Asda’s support.”

Centenary Methodist Church used Asda Foundation funding to meet increased utility and food costs and to help the group set up a new ‘Warm Welcome’ initiative, providing a warm and free safe space for hundreds of people struggling with the cost-of-living crisis.

Reverend Dr Val Ogden said: “Everyone needs a good, hot, nutritious meal. When that’s prepared with love by generous volunteers and shared without discrimination to all comers in a warm and friendly community space, that’s a truly beautiful thing. We recognise the appalling reality that, for many in Boston, times are really tough and there isn’t sufficient money or the resources to cook at home. Frankly, some don’t have a home to go to.

“ this grant helped us maIntaIn fOod prOvIsIon and expand to proVide a warm space thrOugh WInter, when peOple were haVing tO make a choIce Between heatIng and eating.

reverend dr Val Ogden, centenary methodist church

”

crisis respOnse 21

ukraine response and refugee suppOrt

Following an increase in refugee support at the end of 2021, it remained a key priority in 2022.

leeds ukrainian cOmmunity centre supported by asda kIllingBeck

In response to the invasion of Ukraine, we worked with Asda to pledge an urgent package of support, which included grants to support refugees arriving in the UK.

Community Champion Sarah from our Killingbeck store was so moved by the plight of the refugees fleeing war-torn Ukraine that she supported the group to secure a £1,000 Asda Foundation grant for Leeds Ukrainian Community Centre which went towards providing food, starter packs of clothes and school equipment and IT support for refugees arriving in the UK.

people have got together to help. The kindness and generosity of people never ceases to amaze. We've always been a community here; the centre has been here since the early 1950s.

We wanted to play our part in helping groups to provide vital support services on the ground.

Funding was available for essential items such as food, hygiene, and clothing so groups could welcome refugees into the local community – giving them a starter pack and helping them to feel safe and welcome.

"We want to help all Ukrainians who are coming into Leeds. We need to be a place where they can come, and we can provide somewhere where they can speak in Ukrainian. We do not want them to be isolated. We want the children to be able to mix with other Ukrainian children and maybe have a Saturday school so that they can continue to learn Ukrainian.”

Sarah said: " It’s heart-breaking what is going on over there and I wanted to help. The team at the Ukrainian Association are amazing. They are all volunteers and have never experienced anything like this before. It's all new to them ."

"We just want to help them when they come over here. You wouldn't want to lose your home, job and everything you've ever worked for and just come here with a rucksack."

She visited the centre to see first-hand the scale of the relief effort and to present the £1,000 cheque to Chairwoman Olga Callaghan and the team.

"People keep saying what are your plans for the future and we don't really know. We've never done anything like this before. We are learning every day."

Olga said she couldn’t thank Sarah and the Asda Foundation team enough.

She said: " The grant is wonderful. Every penny and every donation count. It's amazing how

22 crisis respOnse

“ thanks to yOur kindness and generOsIty, we at canOlfan felin fach wIll Be aBle to support famIlIes WhO haVe cOme tO Our toWn pWllhelI tO feel safe and secure in their neW homes.

sharon Jones, support Worker ” at canolfan felin fach centre

canOlfan felin fach centre supported by asda pWllhelI

Canolfan Felin Fach Centre in Pwllheli prepared support packages to give refugees a warm welcome using a grant from Asda Foundation for £1,500.

The centre is the first port of call for Ukrainian refugees arriving in the local and surrounding area. The group used funding to provide essential items such as hygiene products, clothing, bedding and food to ensure people felt safe and welcomed.

Sharon Jones, Support Worker said: “We are so grateful to Asda Foundation for this kind donation. Thanks to your kindness and generosity, we at Canolfan Felin Fach will be able to support families who have come to our town Pwllheli to feel safe and secure in their new homes.”

Pwllheli Community Champion Jo said: “The support workers Sharon, Debbie ,Sandra, Ciera, and Sami Lloyd the Centre Manager at Canolfan Felin Fach are all so friendly, kind and compassionate and help so many in our community who often get forgotten. Now with the help of this Asda Foundation grant, they are able to help refugees from the Ukraine with essential items, care packages and lots of support. I am so proud of this group and their kindness and the fun they bring and the welcome for all is outstanding to see!”

crisis respOnse 23

emergency cOmmunity grants

When disaster strikes, we’re able to respond quickly and efficiently by getting essential items to people who need it.

Working with Asda colleagues, Asda Foundation funds items from stores to support people quickly in times of crisis, such as local fires or flooding. Items include food, water, clothing and hygiene products.

In 2022, we gave 45 emergency donations totalling £18,170, supporting over 1000 people.

We provided emergency support to hundreds of local people who were impacted by power cuts and landslides after Storm Eunice devastated parts of the country early in the year.

In July, we responded to support people in need when a summer heatwave caused wildfires in parts of the country.

asda dagenham

Dagenham Community Champion Gemma Gray asked for support after people lost their homes and possessions in the devastating fires during the heatwave.

Gemma arranged £5,000 emergency funding from the Asda Foundation which bought food, bedding, toiletries, and clothes for residents whose properties were destroyed by out-ofcontrol field fires. Donations went to Dagenham United Charity who were one of the organisations heading up the support for local people.

She said: " It's been absolutely heart-breaking – you just can't comprehend how this sort of thing can happen in your community, on your doorstep. It's just unthinkable. I'm just so glad that I was able to do something to help.”

"The Asda Foundation were amazing by arranging the funding so quickly and giving advice. I can't thank them enough."

Peter Chand, Chairman of Dagenham United Charity and former Dagenham mayor, said: " It’s been a really difficult day for the residents in Ballards Road in Dagenham.

"The wildfires have devastated homes and people's belongings. Dagenham United Charity along with Councillor Margaret Mullane have responded with essentials that residents may need. Thank you to Asda Foundation and Dagenham Asda."

24 crisis respOnse

supportIng colleagues in crIsIs

Our crisis support doesn’t stop there. We also support Asda colleagues in times of unexpected financial hardship.

Penny Bartlett, General Store Manager at Asda Highbridge said: “I feel really proud and humbled to work for a business that is able to support my colleagues through some really challenging times via the Asda Foundation. Being awarded these grants can be truly life changing for colleagues in addition to reducing the emotional stress they feel. I would recommend any colleague finding themselves in significant financial difficulty speaks to their manager to see what support could be given rather than continue to struggle on in silence."

Colleague hardship support is there for colleagues facing a wide range of personal circumstances. This might include support with rent arrears, an emergency essential food shop, or hospital travel costs.

aWarded £39,955

Here is some feedback from a colleague who received a grant towards a deposit and first month’s rent after leaving an abusive relationship.

“I wanted to send a massive thank you to the Asda Foundation team for the overwhelming support and kindness you have shown me. A few weeks ago, I thought my world had fallen apart and that I was in a never-ending battle. With the help of store management, colleagues, and the Asda Foundation team, I have a new start to build on. I now have a lovely home I feel safe in and I’m sure I will be very happy in. I am so grateful and thank you from the bottom of my heart.”

“

cOlleague hardship grants can Be a lIfelIne fOr cOlleagues When they need it most.

Jason martin, asda foundation trustee and senior director, West scotland at asda

”

crisis respOnse 25

What’s next

We know funding and support for local communities is more important than ever.

Local charities and community groups have seen income and volunteer hours drop, at the same time as demand for community services and activities has increased. We’re committed to supporting these vital community provisions to ensure they remain a lifeline for local people in the years ahead.

Our Cost-of-Living grant made a significant difference in 2022. With continued uncertainty, this grant programme will remain a key focus for 2023. There is growing community need for food and essentials provision, which will also remain part of our programmes, in addition to help with increasing rent and utility costs.

We know a huge moment of celebration for local communities will be the Coronation of His Majesty the King. Whether that’s a street party, a tea dance, or any other kind of celebration, we will support communities to come together, by providing funding.

Following the success of our inaugural year of our higher value Investing in Spaces and Places grants, this will return in 2023. This programme

will continue to address the sustainability of community spaces that are so vital for adding to the quality of life in local communities and delivering local services and activities.

Through our commitment to remain relevant and to provide the appropriate funding for groups to meet the needs in their local communities, we will review our Green Token Giving programme in 2023. As times have changed post pandemic, we will launch new grant programmes which will continue to deliver the biggest impact for community groups across the UK.

Finally, we will further strengthen our board in 2023 by appointing associate trustees to bring further subject matter expertise and lived experience to our leadership team.

26 What’s next

thank yOu

Thank you to all the community groups who contributed to this report by giving their permission to share their stories. These groups continue to support their local communities, making a big impact and helping to bring Asda Foundation funding to life. Also, thank you to the Asda Community Champions who supported groups in applying for our funding and Asda colleagues who took part in fundraising challenges for their chosen charities.

Be The Change Youth Project Canolfan Felin Fach Centre Canolfan Pentre

Centenary Methodist Church Children’s Adventure Farm Trust Collingwood Community Centre Dagenham United Charity Denmead Community Café Dream Time Creative Headspace Bolton CIC King’s Church Leeds Ukrainian Community Centre

Asda Bolton

Asda Pwllheli Asda Tonypandy Asda Boston

Asda Altrincham Asda Queslett

Asda Dagenham Asda Waterlooville Asda Wakefield

Asda Burnden Park Asda Motherwell Asda Killingbeck

Lytham St Anne’s YMCA Football Club Pendle Armed Forces Support Group Rotary Club of Radcliffe Random Café

The Clothing Bank The Family Haven The Friendship Circle

The Gateway Collective CIC

The Royal National College for the Blind, Hereford

Woodlands Food Table

Youth and Community Connexions

Asda Blackpool Asda Colne

Asda Radcliffe Asda Watford Asda Wakefield Asda Gloucester Asda Trafford Park

Asda Bootle Asda Hereford

Asda Larne

Asda Edmonton Green

thank yOu 27

repOrts and fInancial statements 2022

28 repOrts & fInancial statements 2022

CONTENTS

The Trustees’ Annual Report .......................................................... 30 Strategic Report ............................................................................. 33 Trustee’s Responsibilities Statement .............................................. 35 Independent Auditor’s Report ....................................................... 36 Statement of Financial Activities .................................................... 38 Summary of Income and Expenditure Account ............................. 39 Balance Sheet ................................................................................. 40 Cash Flow Statement ..................................................................... 41 Notes to the Accounts ................................................................... 42

repOrts & fInancial statements 2022 29

THE TRUSTEES’ ANNUAL REPORT

The trustees present their report together with the financial statements of The ASDA Foundation (‘ASDA Foundation’) for the year ended 31 December 2022.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity number: 1124268 Company number: 6480049

DIRECTORS AND TRUSTEES

The ASDA Foundation (“ASDA Foundation”, “the Foundation” or “the Charity”) was incorporated in England on 22 January 2008 as a charitable company limited by guarantee. The Charity’s key principle is to further its charitable objects (the objects and main activities are detailed on page 31). The directors are its trustees for the purposes of charity law and throughout this report are collectively referred to as ‘the trustees’.

The trustees serving during the year and since the year end were as follows:

Helen Selby Chair Trustee (appointed 10 June 2022 and resigned 9 June 2023) Jodie Tate Trustee (Interim chair from 9 June 2023) John Cookman Independent Trustee (resigned 30 December 2022) Susan Hennessey Independent Trustee Patricia Mitchell Independent Trustee Simon Lewis Independent Trustee Andrew Murray Independent Trustee (resigned 8 March 2022) Meghan Farren Trustee (appointed 8 March 2022 and resigned 14 July 2022) Rehman Minshall Trustee (appointed 1 October 2022) Independent Trustee (from 1st April 2023) Jane Earnshaw Trustee Jessica Hodgson Trustee (resigned 22 July 2022) Jason Martin Trustee Mark Benton Trustee (appointed 10 April 2023) Sarah Ashby Trustee (appointed 1 March 2023) Lewis Oldroyd Trustee (appointed 1 October 2022) Alexandra Askew Secretary

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

ASDA Foundation was originally established as a Charitable Trust. It was incorporated as a charitable company limited by guarantee on 22 January 2008 and ASDA Foundation’s governing document is now its Memorandum and Articles of Association. ASDA Foundation is registered with the Charity Commission (charity number 1124268).

Appointment of trustees

There are currently ten trustees (also known as company directors) who are also the members of the Charity. All conflicts must be declared at the beginning of each trustee meeting. Any votes that are considered to have a benefit to ASDA Stores Limited (Asda Stores) are voted on by independent trustees only. The chair or Interim chair has a casting vote in the event of an equality of votes.

The articles require that the board of trustees comprises between five and twelve trustees. The articles currently require that the board of trustees will be constituted at all times as follows:

• a minimum of three trustees who will be employees of ASDA Stores;

• a minimum of two trustees who will not be employees of ASDA Stores.

Trustees who are not employees of ASDA Stores have relevant experience to add value to the board of trustees and enable the Charity to progress in line with its strategic ambitions.

Trustees are appointed by an ordinary resolution, by a decision of the trustees or by ASDA Stores. They retire by rotation from the board after three years in office but are eligible for re-election for a second term.

Trustee induction and training

New trustees are provided with an induction pack including key constitutional documents, the Charity’s accounts and relevant Charity Commission guidance. They are offered trustee training to ensure they are fully aware of their legal obligations under company law and charity law, of the content of the Memorandum and Articles of Association and the decisionmaking processes for the Charity. Before trustees may vote at any meeting of the trustees, they must sign a declaration confirming their willingness to act as a charity trustee and only in the best interests of the ASDA Foundation (and not as a representative of ASDA Stores).

Achievements, performance and financial review

Achievements, performance and financial review of the Charity’s activities in the year are detailed in the Strategic Report.

ASDA FOUNDATION

30

THE TRUSTEES’ ANNUAL REPORT

Management and administration

Trustees have delegated the recruitment support, payroll and human resource requirements for all ASDA Foundation staff to ASDA Stores. ASDA Foundation trustees remain in control of determining the team requirements and the team structure. The team of nine colleagues is made up of the Senior Foundation Manager, the Foundation Manager, three Foundation Advisors and four Foundation Coordinators. The terms of the delegation are set out as part of the grant agreement contract between ASDA Foundation and ASDA Stores.

ASDA Foundation’s strategic and operational management is led by the Senior Foundation Manager, who manages ASDA Foundation and reports to the trustees. The board of trustees make the final decision on all charitable donations and strategic decisions. The ASDA Foundation Senior Manager is also appointed as Company Secretary.

The board of trustees meets quarterly as a minimum (and, in any event, must meet at least once in each year) to agree donations and discuss matters requiring attention. ASDA Foundation also has two Trustee sub-committees which meet between quarterly meetings and have delegated authority to make decisions. These sub-committees are: Giving and Risk Committee and Finance and Governance Committee.

In line with the current grant agreement between ASDA Foundation and ASDA Stores, financial support is provided to ASDA Foundation by ASDA Stores, and the ASDA Foundation meets on a monthly basis with a financial representative from ASDA Stores to review the monthly management accounts. Additionally, the Finance Sub Committee receive a monthly finance report from the Asda Foundation Operational Team to verify the monthly management accounts and the committee meets quarterly to review spend against the budget set.

Trustees’ responsibilities in relation to the Financial Statements

The trustees must comply with the requirements of the Companies Act and of the Charities Act as to keeping financial records, the audit of accounts and the preparation and transmission to the Charity Commission and Companies House of:

• annual returns;

• annual report and financial statements

Accounting records relating to ASDA Foundation must be made available for inspection by any trustee at any time during normal office hours and may be made available for inspection by members who are not trustees if the trustees so decide.

A copy of ASDA Foundation’s latest available report and financial statements must be supplied on request to any trustee or member. A copy must also be supplied, within two months, to any other person who makes a written request and pays the Charity’s reasonable costs. Charitable objects, main objectives and activities

ASDA Foundation’s charitable objects are as follows:

• to provide or assist in the provision for persons who by reason of their youth, age or infirmity or disablement, poverty or social and economic circumstances, have need of such facilities, or for members of the public at large in the United Kingdom of facilities, for recreation or other leisure-time occupation in the interest of social welfare with the object of improving the conditions of life for the persons for whom the facilities are primarily intended;

• to make donations or provide assistance for the relief of poverty, the advancement of education, the advancement of religion, the advancement of health and the advancement of citizenship or community development; and

• to further such purposes which are charitable under the laws of England and Wales.

In furthering those objects, ASDA Foundation’s main activities are:

• to fund local grant giving programmes focusing on grass roots entities to build resilient communities and improve lives within the UK as agreed by the trustees;

• to provide emergency support to communities in the event of a disaster within the UK.

• to provide financial support to those colleagues and immediate family members who have found themselves in significant financial hardship; and

Foundation guidelines

In line with its charitable objects, ASDA Foundation’s main aim is to make donations to charities and local good causes based in the UK and benefitting UK communities. Donations can be applied for in the form of Transforming Communities and Improving Lives, Grants and Green Token Giving Grants and Investing in Spaces and Places Grant (new in 2022), all of which aim to build resilient communities whilst also supporting communities through crisis. Colleagues of ASDA Stores raising funds for their chosen local charities/communities may also apply to ASDA Foundation for Match Funding.

The Theory of Change framework in place for ASDA Foundation explain the desired outcomes we want to achieve through the activities funded via our grant programmes. The long term outcomes of the ASDA Foundation include:

• To strengthen community resilience (empower, respond, adapt, recover, survive)

• To build a sense of inclusion and belonging within local communities (reach, engage, mobilise)

• To develop community assets (place, provision people)

31

THE TRUSTEES’ ANNUAL REPORT

As a result of changing community needs during 2022, ASDA Foundation pivoted their activities to remain relevant and support those most in need. In March 2022, the Ukraine crisis resulted in families being displaced in the UK and needing additional help to settle in their new community, a new grant round was launched to meet this need.

Later in 2022, the cost of living crisis resulted in communities needing additional support to continue core services. A new grant launched in August 2022 to support groups with rent, utilities, food and personal hygiene. This grant will continue in 2023.

Each grant round has tailored criteria and guidance which can be found on the ASDA Foundation website.

Compliance with Charities SORP requirements

In setting objectives, the trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Commission in exercising their powers and duties.

Fundraising

ASDA Foundation is funded by an annual donation from ASDA Stores and commission income in relation to the National Lottery received by ASDA Stores. The current funding agreement is for 3 years, with the final payment due in December 2023. ASDA has made a long term commitment to ASDA Foundation spanning over 30 years. ASDA Foundation does not engage in any fundraising activity within ASDA stores or via public participation.

Trustees’ statement as to disclosure of information to auditors

So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow trustees and the Charity’s advisers, each trustee has taken all the steps that he/she is obliged to take as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the auditor is aware of that information.

Going concern

The principal income for the Charity is from ASDA Stores Limited. The Charity has a sufficient level of unrestricted cash balances and contractually agreed income due in December 2023 as set out in the funding agreement with ASDA Stores Limited to meet all committed expenses and donations as they fall due for the period following approval of the financial statements up to 30 September 2024. These financial statements are therefore, prepared on a going concern basis, under the historical cost convention.

Approved by the trustees and signed on their behalf by

Jodie Tate

Reserves policy

ASDA Foundation maintains reserves at a level sufficient to meet its objectives. The policy in place includes commitments for strategic partnerships beyond one year funds to cover the costs of dissolution should ASDA Foundation cease to exist and emergency funding for utilisation at trustee discretion if a local community emergency occurred requiring additional funding such as a future Covid pandemic or significant community flooding.

Interim Chair and Trustee

12[th] September 2023

Restricted and unrestricted reserves policy

ASDA Foundation holds no restricted funds and has no policy in place for this. Restricted funds carried forward are £nil (2021: £nil).

The trustees have a policy of designating unrestricted funds for specific purposes. The majority of unrestricted funds are utilised through ASDA Foundation grant programmes. The amount of unrestricted funds carried forward as at 31 December 2022 was £3,409,956. This unrestricted fund consists of the annual donation from ASDA Stores £3,000,000 made to ASDA Foundation in December 2022 and the remaining unrestricted fund £409,956 inclusive of commitments £232,690.

ASDA FOUNDATION

32

STRATEGIC REPORT

Achievements and performance

Transforming Communities and Improving Lives Grants (TCIL)

In line with our Theory of Change Model, our TCIL grants aim to empower small, local, grassroots groups and organisations to be resilient and meet the ever changing needs of the communities they serve. In 2022, total TCIL grants £2,336,997 included the following:

• ‘Under 18 Better Starts Grant’ - providing young people with the best opportunities to succeed, tackling inclusion, fighting hunger and enabling them to belong we supported 796 groups totally £702,849 to achieve these goals.

• ‘Cost of Living Grant’- supporting community groups to survive with support for rent and utilities increases and supporting their group users with food and personal hygiene needs. In 2022, we awarded £542,270 to 506 local groups through this grant.

• ‘Empowering Local Communities Grant’ - with such diverse needs across the UK, ensuring projects relevant to the local community is very important. This grant, Asda Foundation’s broadest criteria grant, enables the services and projects supporting people to apply for what is important to them, with 1,104 groups supported through £1,022,841 of funds.

Investing in Spaces and Places

The charities newest grant programme, launched in 2022. Grants worth between £5,000 and £25,000 are available for projects which are providing a safe and inclusive place in the community for people to be together, learn together and have fun. Eligibility criteria outlines spaces which need one of following can apply: space requiring structural repairs, spaces requiring renovation or an outdoor space requiring transformation into a useable space. £750,000 was awarded in 2022 providing investment for 60 community spaces, of which £644,810 was donated during the year and £105,190 is committed in 2023 (see note 10 for further detail).

Green Token Giving Grant Programme

Following the COVID-19 pandemic, the retail environment has changed significantly and returning to the in store Green Token voting process was a challenge during 2022. £980,300 was granted during the year to 2,582 groups but the decision has been taken to pause the programme for 2023 and investigate the best ways that the ASDA Foundation can support community groups, with low value grants, in the future.

Community Emergency Grants

Every year, ASDA Foundation is committed to supporting communities during times of crisis with emergency funding. In 2022 the UK experienced extreme weather resulting in high temperatures exceeding 30 degrees resulting in large scale fires. ASDA Foundation supported these communities displaced from their homes and facing nowhere to go.

Community rest centres were established and ASDA Foundation funded food and essentials for these locations. During 2022, ASDA Foundation supported with £18,170.

Partnership

Following ASDA Foundation’s strategic reprioritisation to focus the distribution of funds to grassroots community groups, ASDA Foundation has reduced the number of partnerships with larger organisations delivering on a broader national scale. In 2022, we continued to support our remaining partners.

The Duke of Edinburgh Award continues to provide more young people with an inclusive opportunity to take part using funding to break down barriers to participation.

Colleague Hardship

As a corporate charity, ASDA Foundation has a longer term commitment to supporting Asda colleagues during times of financial hardship. In 2022, ASDA Foundation provided £39,955 to support colleagues with funds towards but not limited to funeral costs, hospital associated costs and rent deposits. Each application is reviewed and awarded by trustees on a case by case basis due to the complex nature of hardship.

Colleague Match Funding

Supporting ASDA colleagues with their fundraising ambitions is important to ASDA Foundation. For colleagues undertaking a challenge of raising funds in their personal time, ASDA Foundation provides funds towards matching their efforts. In 2022, £107,366 was given through this programme.

Key Performance Indicators

Key performance indicators are detailed below:

	Year ended	Year ended
	2022	2021
	£	£
Restricted donations Unrestricted donations	- 4,315,444	9,065 4,001,254
Net expenditure	(1,059,272)	(617,857)
Net cash outfow	(1,048,381)	(720,734)

Financial review

During the year, donations totalling £4,315,444 (2021: £4,001,254) were made from unrestricted funds to support local grant giving programmes.

33

STRATEGIC REPORT (CONTINUED)

Restricted funds raised by ASDA Stores colleagues and customers in previous years relating to various national campaigns are no longer managed through ASDA Foundation. At 31 December 2022, the balance of restricted funds is £nil (2021: £nil).

At the year-end, ASDA Foundation had total closing funds and net assets of £3,409,956 (2021: £4,469,228) broken down as follows:

	Balance at 31	Balance at 31
	December	December
	2022	2021
	£	£
Restricted funds Unrestricted funds	- 3,409,956	- 4,469,228

ASDA Foundation funds continue to be in surplus and the Charity maintains reserves at a level sufficient to meet its objectives.

Principal Risks and Uncertainties

All monies are held as cash in bank accounts under the Charity’s name. The key source of income for the Charity is expected to be donations from ASDA Stores Limited.

The trustees have reviewed the major risks to which the Charity is exposed. Appropriate systems and procedures have been established to manage or mitigate those risks. Risks identified include:

• Funding causes/organisations which are not charitable or for the public benefit ASDA Foundation has a detailed assessment system in place to ensure that projects funded are charitable and/or not for profit and it undertakes due diligence on all potential grantees. A number of trustees with considerable charity sector experience have been appointed and the Foundation is a member of the Association of Charitable Foundations. ASDA Foundation also specifies the purposes for which a grant is given and includes relevant safeguards in its grant agreements;

• Fraud or other financial mishandling of charity assets

• ASDA Foundation works with external advisors and ASDA Stores to regularly review its approval systems and financial processes, to reduce the risk of fraud either internally or from third parties. The approval process is documented and is subject to review by the trustees. The ASDA Stores Financial Crime & Financial Services Compliance Team can form part of the approval process in line with Giving Procedures Policy. ASDA Foundation has a Finance Sub Committee with a number of trustees and ASDA Foundation Operational Team as members. The committee meets quarterly and review accounts on a monthly basis.

• Ensuring independence of ASDA Foundation in its dealings with ASDA Stores

• With the required close relationship ASDA Foundation has with its sole funder and the gift in kind support ASDA Stores provides to the Foundation, ASDA Foundation has

developed a clear strategy that is independent of ASDA Stores’ own giving strategy. The Foundation also ensures there are at least two trustees who are not employed by ASDA Stores on the board, to ensure independent decision-making, and it takes independent legal advice when appropriate. A conflicts of interest policy is in place, which requires trustees who have a conflict of interest to absent themselves from certain decisions. On matters where the chair might have a conflict of interest; a Sub Committee chair will take the chair role for these matters.

• ASDA Foundation is inadequately publicised

The trustees consider that significant progress has been made in mitigating this risk. Actions include the launch of social media channels in 2022, updates to the website, PR plan for grant rounds and a new brand identity.

• Financial reliance ASDA Foundation has with its sole donor, ASDA Stores Limited

• The Foundation has ensured the reserves level is sufficient to meet all multi-year contractual obligations the Foundation has beyond the current financial year. The Foundation also has a multi-year funding agreement contract in place with ASDA Stores and a re-negotiation timeline clause included to ensure continuated funding is agreed in a timely manner.

• Ensuring groups awarded funding have safeguarding protocols in place

• The risk of safeguarding increased with the launch the Under 18 Better Start Grant. ASDA Foundation recognises the importance of safeguarding across all grant activity and new policies, protocols and training are being implemented to mitigate against this risk .

Plans for future periods

ASDA Foundation will continue to fund Grant Giving Programmes, continuing the latest strategy to support grassroots whilst being agile and flexible to change direction depending on the evolving needs of the community. It is anticipated that many people will continue to experience cost of living challenges in 2023 and this latest grant focus will continue for the foreseeable future to ensure the community lifelines for many continue to exist, evolve and support those who need it most.

Approved by the trustees and signed on their behalf by

Jodie Tate

Interim Chair and Trustee

12[th] September 2023

ASDA FOUNDATION

34

TRUSTEES’ RESPONSIBILITIES STATEMENT

Company Law and Law applicable to charities in England and Wales requires the trustees to prepare the Report and Financial Statements for each financial year, which give a true and fair view of ASDA Foundation’s financial activities during the year and of its financial position at the year end. In preparing those financial statements, the trustees are required to:

• Select suitable accounting policies and apply them consistently;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards and statements of recommended practice have been followed subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume ASDA Foundation will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of ASDA Foundation and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the articles of association. They are also responsible for safeguarding the assets of ASDA Foundation and hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

35

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE ASDA FOUNDATION

Opinion

We have audited the financial statements of The ASDA Foundation for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes 1 to 11, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 December 2022 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; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this 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 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 the other information, we are required to report that fact.

We have nothing to report in this regard.

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 the charitable company’s ability to continue as a going concern for a period up to 30 September 2024.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the trustee’s ability to continue as a going concern.

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’ report, which includes the directors’ report and the strategic report prepared for the purpose of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have identified no material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation where 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

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime

ASDA FOUNDATION

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE ASDA FOUNDATION

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 35, 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 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 management either intends to liquidate the charitable company or to cease operations, or has 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (International Accounting Standards in conformity with the requirements of the Companies Act 2006 and United Kingdom Generally Accepted Accounting Practice) and the relevant tax laws and regulations in the UK.

• We understood how The ASDA Foundation is complying with those frameworks by making enquiries of management, the Trustees, the ASDA Group Limited Legal

• & Compliance team, and the ASDA Group Limited Internal Audit department. We corroborated our enquiries through our review of board minutes and papers and inspection of commentary in the management accounts.

• We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was a susceptibility to fraud. We considered controls that the charitable company has established to address risks identified, or that otherwise prevent, deter and detect fraud and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing donations and unpresented cheques and were designed to provide reasonable assurance that the financial statements were free from material fraud and error.

• Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved testing donation disbursements and donation receipts, with a focus on unusual donators or recipients and large or unusual transactions based on our understanding of the business. We also performed enquiries of management, the Trustees, the ASDA Group Limited Group Legal & Compliance team, and the ASDA Group Limited Internal Audit department. In addition, we completed procedures to conclude on the compliance of the disclosures in the financial statements with the requirements of the relevant accounting standards, and UK legislation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://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.

Victoria Venning (Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

Leeds

13[th] September 2023

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STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2022

All of the income and expenditure is in respect of continuing activities. There were no gains and losses in the year other than those included in the statement of financial activities (2021: £nil).

The notes to the accounts form part of these financial statements.

ASDA FOUNDATION

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SUMMARY OF INCOME AND EXPENDITURE ACCOUNT

for the year ended 31 December 2022

Donations received comprise £3,600,000 (2021: £3,600,000) unrestricted and £nil, (2021: £3,703) restricted funds.

A detailed analysis of donations received and expenditure is provided in the Statement of Financial Activities.

The Summary Income and Expenditure Account is derived from the Statement of Financial Activities which, together with the notes to the accounts, provides full information on the movements during the year in the funds of ASDA Foundation.

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BALANCE SHEET

As at 31 December 2022

The notes to the accounts form part of these financial statements.

Approved by the trustees and signed on their behalf by

Jodie Tate Interim Chair and Trustee

12[th] September 2023

ASDA FOUNDATION

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CASH FLOW STATEMENT

for the year ended 31 December 2022

41

NOTES TO THE ACCOUNTS

As at 31 December 2022

1. ACCOUNTING POLICIES

Basis of preparation

The financial statements of The ASDA Foundation have been prepared in compliance 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 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011. The Charity is incorporated and domiciled in England under the Companies Act 2006, as a private company limited by guarantee, The Charity is a public benefit entity and its registered office is ASDA House, Great Wilson Street, Southbank, Leeds, LS11 5AD. The principal policies adopted in the preparation of the financial statements are set out below.

Going Concern

The principal income for the Charity is from ASDA Stores Limited. The Charity has a sufficient level of unrestricted cash balances and contractually agreed income due in December 2023 as set out in the funding agreement with ASDA Stores Limited to meet all committed expenses and donations as they fall due for the period following approval of the financial statements up to 30 September 2024. These financial statements are therefore, prepared on a going concern basis, under the historical cost convention.

Income

ASDA Stores funds ASDA Foundation. This income is recognised on an accruals basis. These funds are donated by ASDA Foundation to projects and local good causes. Supporting local good causes and sustainable projects in the surrounding areas of ASDA Stores makes a real long-term difference to local communities.

Sundry Income

For a variety of reasons, certain donation payments are not cashed by recipient charities. When such circumstances arise, the ASDA Foundation Management Team investigate to determine the reasons for this and, where appropriate the original payment is cancelled and a new payment is raised. Where this occurs, the cancellation and the new payment are accounted for within donations. In instances where investigation deems it to be inappropriate to raise a new payment, and where the original payment has been accounted for as a donation in the prior year, the cancellation of the original payment is accounted for as a credit within sundry income.

Expenditure

Expenditure is recognised on an accruals basis and comprises:

• donations to local charitable good causes;

• governance costs, which relate to the salary of employees of ASDA Stores, for administering and distributing funds, of all projects;

• legal fees for all documentation relating to the trust, trustee retirement and appointment;

• audit fees;

• marketing fees;

• bank charges; and

• trustees’ expenses.

All other costs associated with organising and running the Charity are borne by ASDA Stores.

Debtors

Debtors are stated at their nominal amount (discounted if material) and reduced by appropriate allowances for estimated irrecoverable amounts, if applicable.

Creditors

Creditors are non-interest bearing and are stated at their nominal value.

2. UNRESTRICTED FUNDS

The income funds of ASDA Foundation include unrestricted funds comprising the following unexpended balances of donations and grants held on trust, which the trustees are free to use in accordance with the charitable objects.

Unrestricted funds 31 December 2021 Income from ASDA Stores Limited Sundry income Interest received Charitable donations Administration costs Unrestricted funds 31 December 2022	£ 4,469,228 3,600,000 51,291 5,016 (4,315,444) (400,135)
	3,409,956

ASDA FOUNDATION

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NOTES TO THE ACCOUNTS

As at 31 December 2022

3. EXPENDITURE FROM UNRESTRICTED FUNDS

The below table summarises expenditure on unrestricted funds:

4. RESTRICTED FUNDS

In 2021 £3,703 of restricted funds were received and £9,605 of donations were made. These restricted funds are no longer managed through the ASDA Foundation. The closing funds of £4,469,228 at 2021 were not restricted.

5. ADMINISTRATIVE COSTS

The amount payable to the Charity’s auditor for the audit of the Charity’s financial statements is £7,800 (2021: £6,600).

ASDA Stores recharged an amount of cost totalling £313,685 for the salary payments of the ASDA Foundation Operational team. (2021: £286,836).

The average number of employees for the year was none (2021: none). No employee benefits were paid in the year (2021: none). The administration activities of the Charity are performed by the Foundation Operational Team, who are employees of ASDA Stores Limited but funded by Asda Foundation income. Further details of the Foundation Team are included in The Trustees Annual Report.

6. TRANSACTIONS WITH TRUSTEES

Trustee expenses was £nil (2021: £71).

No emoluments were paid to trustees in relation to their qualifying services as a trustee by ASDA Foundation for the year ended 31 December 2022 (2021: £nil).

During the year Grants to institutions donations were made totalling: £4,275,489 (2021: £3,956,237) Cheques granted to institutions and individuals with a value over £10,000 are disclosed in note 7. For further details of unrestricted funds expenditure in the prior year, please refer to the financial statements for the year ended 31 December 2021 which are available from the registered office of the Charity.

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NOTES TO THE ACCOUNTS

As at 31 December 2022

7. DONATIONS OVER £10,000 FROM UNRESTRICTED FUNDS FOR THE YEAR ENDED 31 DECEMBER 2022

8. DEBTORS

DONATIONS OVER £10,000 FROM UNRESTRICTED F FOR THE YEAR ENDED 31 DECEMBER 2022	UNDS	8. DEBTORS
		Balance at 31	Balance at 31
Partnerships		December		December
The Duke of Edinburgh Award	£127,500	2022		2021
Transplant Sport UK	£20,000	£		£
Investing in Spaces and Places		Restricted -		-
Youth & Community Connexions	£24,650	Unrestricted 50,000		49,416
1st Wormley Scout and Group Council	£20,000	Total 50,000		49,416
Biggleswade Arts Collective Limited	£20,000
Manchester Vineyard	£20,000	9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Morley Cricket and Sports Club	£20,000
SEN Space Care and Respite Services	£20,000	Balance at 31 December	31	Balance at December
The Parochial Church Council of the Meadgate Church	£20,000	2022		2021
Trimsaran Village Forum	£20,000	£		£
Dream Time Creative	£20,000
		-		-
Headspace Bolton C.I.C	£18,560	Accruals 7,800		6,600
Newton Abbot Centre Association	£18,120	Amounts owed to ASDA Stores Limited 38,958		41,783
Bothwell Futures	£18,000	Other creditors 13,400		300
Bangor Foodbank and Community Support Elder Voice	£16,200 £16,000	60,158		48,683
St Margaret The Queen Mintlaw Public Hall	£16,000 £13,500	10. RELATED PARTIES
Breast Cancer Now Ark Church Nottingham	£13,313 £12,000	ASDA Stores provides funding to The ASDA Foundation through an annual lump sum donation and money paid to ASDA Stores from the National Lottery. ASDA Foundation then distributes these funds to charitable good causes and sustainable projects.
CPD Pwllheli FC Cyfyngedig The Gateway Collective	£12,000 £11,800	During the year, ASDA Stores donated £3,600,000 (2021: £3,600,000). ASDA Stores recharged an amount of cost totalling £313,685 for their contribution to the
Workington Unit of the Sea Cadet Corps	£11,800	administrative support of the ASDA Foundation (2021: £286,836).
1st Golborne St Thomas Scout Group Executive	£11,200	At the year end, ASDA Stores owed The ASDA Foundation £50,000 in relation to
Gordon Rural Action	£10,800	unrestricted funds (2021: £49,416) and £nil in relation to restricted funds (2021: £nil).
Swimbridge Parklands Committee Abbeydore Church	£10,800 £10,000	The ASDA Foundation owed ASDA Stores £38,958 for administration costs in unrestricted funds (2021: £41,783).		relation to
St Mary’s Bitton	£10,000

At the year end, ASDA Stores owed The ASDA Foundation £50,000 in relation to unrestricted funds (2021: £49,416) and £nil in relation to restricted funds (2021: £nil). The ASDA Foundation owed ASDA Stores £38,958 for administration costs in relation to unrestricted funds (2021: £41,783).

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NOTES TO THE ACCOUNTS

As at 31 December 2022

11. COMMITMENTS

The ASDA Foundation is committed to grant payments of £232,690 in 2023 with individual charity partners under Partnership contracts and Investing in Spaces and Places Grant agreements which span the year end. The payment of these commitments is conditional on the charity partners completing activities set out in their respective contracts and grant agreements by fixed dates during the course of 2023. At 31 December 2022, The ASDA Foundation is not contractually committed to any grant payments beyond 31 December 2023.

Investing in Spaces and Places The Duke of Edinburgh Award	31 December 2022 £ 105,190 127,500
	232,690

At 31 December 2021, the Charity was committed to grant payments of £255,000 to The Duke of Edinburgh Award, of which £127,500 was paid during the year.

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Bankers Principal Office ASDA House Natwest Bank PLC Southbank 8 Park Row Great Wilson Street Leeds Leeds LS1 5HD LS11 5AD

Auditors

Solicitors

Wrigleys Solicitors LLP 19 Cookridge Street Leeds LS2 3AG

Ernst & Young LLP 1 Bridgewater Place Water Lane Leeds LS11 5QR

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Asda House • Great Wilson Street • Leeds • LS11 5AD WWW.ASDAFOUNDATION.ORG

@AsdaFoundationCharity

@AsdaFoundationCharity

@AsdaFoundation @AsdaFoundation

Charity number: 1124268 • Company number: 6480049