Company registration number: 06754603 Charity ￿gIStration number.. 1128013 Charitable Giving IA company limited by guarantee) Annual Report and Financial Statements for the Year Ended 30 April 2021 Charitable Giving Contents Trustees. Report 2to6 Statement of Trustees, Responsibilities Independent Auditors, Report 8t011 statement of Financial Activities 12 BaSance Sheet Notes to the Financial Slatem8nts 14to23 Charitable Giving Reference and Administratlve Detalls Trustees Mr D A Alcock Mr P D Armstrong (appointed 12 February 20211 MrCRBBrook Rt. Hon. Lord J P Burnett Mr P V Clarke (resigned 21 August 20201 Mr R P Jones ColPRLLane Mrs C Pitcher MrJRSale Mrs J Smart Sg¢retary Mrs J Smart Senior Management Team Mrs C Morbmore, Chief Executive Officer Mrs S Sherrell. Finance Manager Rggistered and Prlnclpal Office Unlt C4 Union Mine Road Pitts Cleave Tavislock Devon PL19 ONS The Charity is incorporated In England and Wales. Company Registration Number 06754603 Charlty Reglstration Number 1128013 Sollcltors Stephens Scown LLP Osprey House Malpas Road Truro Comwall TR1 1UT Bankers Lloyds Bank 13 Broad Street Launceston Cornwall PL15 8AG Audltor PKF Francis Clark Chartered Accountants North Quay House Sutton Harbour Plymouth Devon PL4 ORA Page 1 Charitable Giving Trustees, Report The Trustees. who are directors for the purposes of Company law, present the annual report together with the finanu81 statements and auditors, report of the charitable company for the year ended 30 April 2021. Status Tho Charity is limited by guarantee, having no share capital. 11 is a registered charity- Th8 Company was incorporated on 20 November 2008 and is bound by ils Memorandum and Articles of Association. The Charity became registered wllh the Charity Commission on 12 February 2009. Principal A¢tlvlty The principal activity of the Charity during the year was the administration of the distribution of charitable donations for 1 Individual donors through the Payroll Giving scheme.. 2 Employers in developing their eorporale social responsibilities in support of their charitable aims-, and 3 Foundations and major corporations in managing the distribution of their charitable funds and donations in an efficient and economical manner. Charity's Objectives The Charity's objectives are the encouragement of the effectiveness and efficiency of charities by promoting and advising upon lax efficient giving, counselling on fundraising strategy and providing fundraising support and adminislralive services. In order to achieve ils objectives, the Charity wll work with employers and charitable organisations to.. Introduce and develop the payroll giv(ng scheme: Advise employers on fundraising in the workplace., Assist employers in developing their corporate and community charitsble activities,. and Provide an efficient and cost effective service for the distribution of charitable donations. Page 2 Charitable Giving Trustees, Report structure and Election Process The Board of Trustees, a body of not less than 4, but with no maximum. controls the Charity. Trustees are elected by a quorum of al least 4 membeis ol the Board of Trustees. In the event of the Charity being wound up, the liability of the members is limited lo £10. The Board links governance and management functions through the Chief Executive Officer. All Board authority delegated to the day to day operational organisalion is delegated through the Chief Executive Officer, so that all authority and accounlabilily for the operational organisation is considered to belong lo the Chief Executive Officer. The Chief Executive Officer has no authority to make any decisions about any maller that the Board has spocifically reserved for itself for decision. Accordingly. the Chief Executive Officer musl not make decisions wilhoul prior Board approval regarding.. Strategic issues- consideration of any project or venture that involves, or could lead to, a significant alteration of the Charity's risk profile., Financial items- approval of the annual budgols, political donations, charitable donations in excess of £5,000, capital expenditure in excess of £10,000. debt securities, unbudgeled loan facilities, debt factoring, leaselsale back arrangements and approval of the Annual Reports and Financial Slalemenls., Agreements- approving acquisitions, mergers or disposals of any business or subsidiary. regardless of value., Legal Structure - modification to the legal structure of the Charity., Liligakn'on approval of the initiation, conduct and settlement of liligation., Administration and benefits- alteration of the Charity's accounting dale, name or registered office of tho Charity and changes lo the Memorandum and Articles of Association. Approval of remuneration packages of the Chief Executive Officer, pension right and compensation payments.. and Board arrangements- appointment or removal of the Company secretary or directors, eslablishmenl of Board Commillees and approval of the reference terms and amendment of any Board policies. Page 3 Charitable Giving Trustees, Report Revlew of the Year and Future Devalopments Twelve months of trading under various levels of COVID-19 restrictions has been incredibly challenging for Charitable Giving as il has been for many of its clients. The Board is, however. very pleased with the strength and resilience of the Charills s￿￿teMs and controls as well as the adaptability and commitment shown by its staff. Charitable Giving was able to adapt ils operations quickly lo include homeworking. whilst at the same time maintaining the standards of service our customers expect. That, and other busines3 conlinuily requirements instigated by the pandemic have continued to accelerate development. Signrficanl business efficioncies have been achieved and the team restructured to include additional IT Support and Management resources. Mindful of Charitable Giving's mission lo encourage and increase the level of donations via the workplace, priority has been given throughout the year to supporting the continued uplift in interest in Payroll Giving. A record number of new schemes have been sel up and enhancements le.g.. Corporate Malchingl added to existing schemes. Several employers have run special appeals in r6sponse to public opinion and a desire to recognise the tremendou5 afforts of key workers. for example the NHS. In addition, there has been renewed interest in the post-lax giving scheme Every Penny Helps, which is complementary to Payroll Giving and offers an affordable solution lo those who may be suffering a degree of financial hardship. Unsurprisingly, given the social and economic Impact of the pandemic nationally, there has been reduction in the overall number of donations processed during the yoar resulting from key employers in hard hil industries le.g.. hospitality) making use of the Job Retention Scheme. reslruduring, or making redundancies. On the positive side, there has been a sign'rficant uplifl in donation values as high earners make use of the lax advantage of making both large regular andlor one-off donations from their salary. 11 is noted that many more new or small charities are benefitung from Payroll Giving donations. and as SL¢ch il is plèasing lo see the increasing impact to the charity sector as a whole that is being driven by Ihe sustainability and resilience of workplace glving schemes. Despite the initial doubts and concems around the impact of the COVID-19 crisis on distribution figures, they have been encouragingly high throughout the last firbancial year totalling in excess of £30M. The year ahead is expected lo present further challenges, but Charitable Giving is well placed lo continue as per the new normal with a blend of home and office working across the team thus maintaining the safest working environment. Social distancing, increased ventilation and enhanced hygiene controls will continue even as lockdown reslriclions aro reduced. The Board of Trustees review the situation with respect lo income versus costs on a regular basis. and an additional budget specific meeting has been added to the quartedy schedule in April. Management Information reports have been significantly enhanced lo include new KPI'S lo ensure roactive mgasures are applied quickly in the event of an unexpected downlum in business or increase in costs. Pag8 4 Charitable Giving Trustees, Report A programme of rolling retirement from the Board of Trustees has been introduced in antscipalion of one relirerllenl each Financial Year. Reliremenls are based on length of service and where there is duplication, retirees are selected based on alphabetic81 rotation to avoid multiple losses lof skills and experiencel from the Board al one time. Trustee recruitment is an ongoing agenda item al quarterly Board Meetings and a skills matrix is maintained to identify strengths and ensure a reasonable level of diversity and relevant experience among members. While it is expected that economic conditions will become increasingly challenging through the year, there is an extremely high level of confidence that the Charity will continue as a going concern. Recruitment and appolntment of Trustees A programme of rolling reliremgnl from the Board of Trustees has been introduced in anticipation of one retirement each Financial Year. Relirernents are based on length of seryice and where there is duplication, retirees are selected based on alphabetical rotation lo avoid multiple losses lof skills and experiencel from the Board al one time. Trustee recruitment is an ongoing agenda item al quarterly Board Meetings and a skills matrix is maintained lo identify strengths and ensure a reasonable level of diversity and rglevanl experience among members. Trustees are elected by a quorum of al least 4 members of the Board of Trustees. Results The Charity has a surplus of £38,721 12020.. £59,824) on unreslricled funds for the year. Reserves The policy of the Board is to sel a level of reserves sufficient lo meet the fixed costs of the Charity for a period of three months. The reserves policy will be reviewed annually. The balance of unreslricled funds al 30 April 2021 was £464.37812020 - £425,657) of which £276,940 12020 £238,605>, being the net current assets, is regarded as free reserves. Surplus funds will be used lo further the Charitys objectives. Principal Risk and Uncertainties The Trustees of Chari18ble Giving maintain a risk regislgr which is reviewed quarterly. The main risks to Charitable Giving are.. 1 IT failure., 2 Property damage.. 3 Loss of key personnel; and 4 Financial loss of deposits. The Trustees have established systems and procedures lo alleviate the above by full use of off-site back-up, understudy personnel and resetved allernalive office accommodation. Deposits hold on behalf of third parties before distribution are held with recognised UK established banks including some term deposits of no more than 12 months. Flnanclal Rlsk Management Objectlves and Pollcles The Charity's activities expose it lo a number of financial, cash low, and liqui(thly risks. The Charity has in place the structure lo manage these risks with various established banks and through effective budgeting and monitoring of performance. Included in the budget is a capital expenditure budget, which is approved by the Board of Trustees prior lo any significant expenditure being incurred. Page 5 Charitable Giving Trustees, Report Price rlsk, credit risk, Ilquldlty risk and cash flow risk The Charitys main expense is wages and salaries. Any significant fluclualioris in minimum wage. or employment taxes could have a significant impact on the Charity. Salary costs are continually monitored against budget and market rates to ensure these are aligned. There is little exposure to credit risk as donations are paid lo Charity beneficiaries once the income has been received from the donor. The bank loan has a fixed interest rale over the long-lemi, givlng certainly over finance costs when budgeting. Cash deposits are held in various accounts to spread risk. Public Benerrt The Trustees confirm Ihal they have complied with the duty of the Charities Act 2011 to have due regard lo the Charity Commission for England and Wales's general guidance on public benefit in exercising Ihelr power or duties. They have referred to this guidance when reviewing the Ch8ri1ies aims and objectives and in planning ils future aclivilies. Trustees Mr DAAlcock Mr P D Armstrong {appointed 12 February 20211 MrCRBBrook Rt. Hon. Lord J P Burnett Mr P V Clarke {resigned 21 August 20201 MrR P Jones ColPRLLane Mrs C Pitcher MrJRSale Mrs J Smart Disclosure of Informatlon to Auditor Each Trustee has taken steps that they ought lo have taken as a Trustee in order to make themselves aware of any relevant audit information and lo establish that the Charills auditor is aware of that information. The Trustees wnfim) that there is no relevant infomialion that they know of and of which they know the auditor is unaware. Small Companles Provlslon Statem9nt This report has been prepared in accordance with the small companies regime under the Companies Ad 2006. a7 )&ZI The annual report was approved by the Trustees of the Charity on and signed on its behalf by.. Mr D AAlcock Trustee Page 6 Charitable Giving Statement of Trustees, Responsibilities The Trustees (who are also the directors of Charitable Giving for the purposes of company lawl are responsible for preparing the financial slalemenls in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice} and applicable law and regulalior)s. Company law requires the Trustees lo prepare financial statements for each financl81 year. Under company law the Trustees musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of ils incoming resoLJrces and application of resources, including it5 income and expondilure. for that period. In preparing these financial slatemenls, the Trustees are required lo.. select suitable accounting policies and apply Ihern consislenlly., observe the methods and principles in the Charities SORP., make judgemonls and estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial slalements., and prepare the financial statements on the going concern basis unless it 15 inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable companls transactions and disclose with reasonable accuracy al any lime the financial position of th8 charitable company and enable them to ensure that the financial slalomenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 27 Approved by the Truslges of the Charity on and signed on its behalf by= MrD Trustee ck Page 7 Charitable Giving Independent Auditor's Report to the Members of Charitable Giving Oplnion We h8V8 audited the financial statements of Charitable Giving (the 'Charity'} for the year ended 30 April 2021, which comprise the Statement of Financial Acllvilies, Balance Sheet, and Notes lo the Financial Stalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is Uni18d Kingdorn Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable18w (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the Charity's affairs as al 30 April 2021 and of its results for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in a¢cord8nce with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financi81 statements section of our reporL We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in tho 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 provjde a basis for our opinion. Conclusions relating to going concern In auditing the financial stalemenls, 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 eolleclively, may cast significanl doubt on the Charitys ability to continue as a going concern for a period of at least twelve months from when the original financial slalemenls were authorised for issue. Our responsibilities and the responsibilities of the Tnjstees wi(h respect to going concern are described in the relevant sections of this Teport. Page 8 Charitable Giving Independent Auditor's Report to the Members of Charitable Giving Other Infomiation The Trustees arg responsible for the other information. The other infomiatlon comprises the infomialion included in the annual report. other than the financial statements and our auditor's report thergon. Our opinion on the financial slalgm8nts do&s not cover the other infomialion and, except lo the extent olheNise explicitly slated in our report. we do not express any form of assurance onclusion Ihereon. In connection with our audit of the financial stslemenls, our responsibility is to read the other information and, in doing so, consider whether the other inforniation is materially inconsistent with the financial slalements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we idents'fy such material inconsistencies or apparent material misslalemenls, we are required to determine whether there is a material mi551alemenl in th8 financial slatomenls or a material misstslemenl of the other information. If. based on the wort( we hav& performed, we conclude that there is a maleTial misslalemenl of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, Report for the financial year for which the financial statements are prep8red is consistent with the financial statements., and the Trustees. Raport has been prepared in accordance with appllcable legal requirements. Matters on which we are required to report by exception In tho light of our knowledge and understand￿ng of the company and ils environment obtained in the courso of the audit, we have not identified material misslatemenls in the Trustees, Report. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us., or the financlal 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 havo not received all the information and explanations we require for our audit. Responslbllltles of Trustees As explained more fully in the Statement of Trustees. Responsibilities Isel out on page 71, the Trustees are responsible for th8 preparation of the financial statèments and for being satisfied that they give a true and fair view, and for such inlemal control as the Trustees delemiine is necessary lo enable the preparation of financial statements that are free from material misstalemenl. whether due to fraud or error. In preparing the financial slalements. the Trusloes are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going con¢em basis of accounting unless the Trustees either intend lo liquidate the Charity or to cease operations. or have no realistic alternative bul lo do so. Page 9 Charitable Giving Independent Auditor's Report to the Members of Charitable Giving 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 lo 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 accordanc8 with ISAS (UK) will always delecl a mal8rial misstatement when it exists. Misstslements can arise from fraud or error and are considered material if, individually or in the aggregate, Ihey could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. Irregularities, including fraud, a￿ instances of non-compliance with laws and regulations. We design procgdLJres in line with our responsibilities, outlined above, to delecl material misslalements in respect of irregularities. including fraud. The extent lo which our procedures are capable of detecting irregulaTlties. including fraud is detailed below.. As part of our audit planning, through discussions with management. we obtained an understanding of the legal and regulatory framework that is applicable lo Charitsble Giving and th& sector in which il operalgs lo idèntify the key laws and regulations affecting the charitable ¢ornpany. The key laws and regulations we identified We￿ General Data Protection Regulations IGDPRI, Fundraising Regulations, health and safety laws. and employment laws. We also considered those laws and regulations that have a direct impact on the preparation of the financial slalemenls, primarily the Companies Act 2006, the Charities Act 2011, relevant tax compliance regulations in the UK, and reporting framework Icharities SORP - FRS 1021. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial slalemenls bul compliance with which may be fundamental the charivs ability to operate or lo avoid a material penalty. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial stalgmenls lincluding the risk of override of controls) and determined that the principal risks related lo fraudulent financial reporting, in particular to grant funding received. Audit prO￿dureS performed by the engagement tearn include, but were not limited lo. discussions and inquiries with management of compliance with laws and regulations, reviewing the clients laws and regulations file including ISO audit reports, and reviewing Board minutes and significant legal costs incurred in the year. We also addressed the risk of management override of inlemal controls, including lesling of journals and evaluating whether Ih8re was evidence of bias by the frustees that represented a risk of material misslalemenl due to fraud. There are inherent limitations in the audit procedures describèd above and the furthor removed non