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2022-03-31-accounts

Company number: 06902258 Charity number: 1133179 Charity Digital Trust

Report and financial statements For the year ended 31 March 2022

Charity Digital Trust

Contents

For the year ended 31 March 2022

Reference and administrative details .............................................................................................. 1 Trustees’ annual report .................................................................................................................. 2 Independent auditor’s report ....................................................................................................... 13 Consolidated statement of financial activities .............................................................................. 17 Balance sheets .............................................................................................................................. 18 Consolidated statement of cash flows .......................................................................................... 19 Notes to the financial statements ................................................................................................. 20

Charity Digital Trust

Reference and administrative details

For theyear ended 31 March 2022
Registered name Charity Digital Trust (formerly Tech Trust)
Trading names Charity Digital
Company number 06902258
Country of incorporation England and Wales
Charity number 1133179
Principal office Pennine Place
2a Charing Cross Road
London WC2H 0HF
Registered office Camburgh House, 27 New Dover Road
CANTERBURY, CT1 3DN
Trustees Ms C Tavernier
Mr S Dunne
Ms Z Amar
Mr P Jacobs
Ms E MacKenzie
Ms M Brewis
Mr R George
Mr R Taylor
Mr J Nathenson (Appointed 4thAugust 2022)
Accountants Burgess Hodgson
Camburgh House, 27 New Dover Road
Canterbury CT1 3DN
Bankers NatWest Bank plc
The Strand
London WC2N 5JB
Solicitors Wright Hassall LLP
Olympus Avenue
Royal Leamington Spa
CV34 6BF
Auditors Sayer Vincent LLP
Chartered Accountants and Statutory Auditors
Invicta House, 108-114 Golden Lane
London EC1Y 0TL

1

Trustees’ annual report

For the year ended 31 March 2022

The trustees are pleased to present their annual directors' report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 March 2022 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Our purposes and activities

The charity and its subsidiaries derive most of their income from trading activities offering products and services to other not-for-profits, either delivering significant cost savings, unique products or levels of support unavailable elsewhere. The trustees have considered this trading position with respect to the Charities SORP, FRS102 and the Charity Commission's guidance on public benefit including:

The trustees are clear that the trading activity model delivers significant benefit to not-for-profits that could not be delivered by a commercial organisation, and that the charity, whilst run on a trading basis, has clear charitable impact objectives which can be quantified and publicly reported.

We have four primary vehicles to deliver our impact:

2

Trustees’ annual report

For the year ended 31 March 2022

Our values

We believe technology used in the right way and to the right extent can be enormously beneficial to society as a whole. We want technology to be fully utilised for the benefit of not-for-profits and their beneficiaries. Charity Digital Trust (Charity Digital) believes it can do this as a charity trading in a commercial way through collaboration with the technology community whilst maintaining a balanced and agnostic view on the choice of solutions.

We aim to be friendly, honest, supportive, open-minded and humble in our approach to supporting UK not-for-profits.

Achievements and performance

This report covers the second year of the COVID-19 pandemic and, though it was a year of significant challenge for organisations across the country and not-for-profits in particular, the Charity, supported by a great board of trustees, performed strongly.

Our central purpose has essentially remained the same – helping not-for-profits throughout the UK adjust to and embrace the opportunities and challenges of an increasingly digital world. This has led the organisation to focus on doing 3 things:

The achievements of the charity are significant, delivering:

3

Trustees’ annual report

For the year ended 31 March 2022

As a trading charity we typically generate enough income from activities to sustain the charity and add to reserves for the future. Our current annual revenue stands at £2.3m (2020/21 £2.05m) with a surplus of £25k and cash reserves of over £1.2m.

Though lockdown was less of a feature in 2021/2022 than in the previous year, the COVID-19 pandemic continued to affect the sector with reduced income from public fundraising for many charities and demand for charitable services continuing to increase. The year also saw the start of the so-called cost-of-living crisis which has continued to have a significant effect through 2022/2023.

We were pleased to continue to receive strong levels of support from the tech sector in providing the above services and this together with high levels of not-for-profit demand resulted in a strong financial year for the Charity.

Software and Related Services – Charity Digital Exchange

We have been operating the donation programme in the UK since 2006 in close collaboration with our partner TechSoup in the USA. Software partners like Microsoft, Adobe and Zoom, and hardware providers like Cisco, make their products available to us. We then give eligible not-for-profits access to those products at free or heavily discounted prices, charging an administration fee for each product taken, which funds the eligibility assessment, marketing and customer support.

In 2021/22 7,404 (2020/21 6,204) not-for-profits received a donation from the exchange programme, generating administration fees for Charity Digital of £845k (£885k in 2020/21), cumulatively saving not-for-profits around £12m (2020/21 £12m) versus fair market value. During the year, 2,925 new not-for-profits registered (5,349 in 2020/21) and became eligible to receive donated software. By the financial year end, a total of 77,014 not-for-profits had registered on the programme since 2006, saving a total of around £284m in procurement costs.

The drop in administration fees in the year was anticipated and is linked to Microsoft transitioning its Charity offering to the Cloud. Administration fees are anticipated to fall further in 2022/23, as in October 2021 Microsoft announced the end of its on-premise software donation programme, other than for the Windows Operating System and those not-for-profits running publicly shared computer resources (i.e. libraries and computer training labs). The changes which took effect on April 4[th] 2022 were also reported in the 2020/21 annual report and accelerated a review of the Charity Digital strategy.

We continually monitor not-for-profit satisfaction and value for money when using the Exchange programme through Trust Pilot. We have consistently maintained a 5-star rating and have an ongoing programme of improvement to address any specific issues and complaints.

Since 2006 we have built considerable experience validating UK not-for-profits for access to discounted technology on the Exchange. We now offer bespoke validation services to Microsoft for Office 365, and Google for their Workspace for Nonprofits programmes. This has accelerated the number of not-for-profits we interact with, especially the larger ones. During 2021/22 8,231 (2020/21 11,159) not-for-profits registered for these supplementary services bringing the total number of registered and eligible not-for-profits to 36,688. The reduced number of validations

Trustees’ annual report

For the year ended 31 March 2022

compared to 2020/21 reflects a return to the levels seen prior to the pandemic, after a one-off increase at its onset. The reduced number of validations is reflected in a reduction in total productrelated validation income to £118k (2020/21 £154k).

Software and Related Services – Charity Digital Mail

We bulk buy millions of e-mails a month from dotdigital (previously known as DotMailer), a specialist marketing automation provider, and then pass the volume discount we achieve back to the not-forprofits. They are able to send out templated and branded e-mails to their donors, supporters and service users via a white-labelled dotdigital platform. So that not-for-profits can get the maximum impact from the platform, we provide initial technical training and also ongoing support and training including know-how on improving open rates and click-throughs.

In 2021/22, we sent over 48m million e-mails on behalf of UK not-for-profits (49 million 2020/21). The slight decrease was caused by one significant customer deciding to move to another e-mail marketing platform. Despite this customer loss, the service remains very popular with a retention rate of 99% in the year. Underlying mail volumes continuing to increase.

Information and Education Services – Advertiser-Funded Activity

We know from our many years’ experience that not-for-profits struggle to keep pace with changing technology and are quite often daunted by the prospect of IT related projects. Our information and education platform, previously known as CDN but migrated to our new Affino platform in March 2020, was created to provide a unique daily feed of case studies and helpful advice, aiding not-forprofits in achieving more with digital tools.

Page views were stable at 1.9m in 2021/22 (1.9m in 2020/21) despite publishers more generally reporting a weakening in demand for online content in the second year of the pandemic. The Affino platform was key in enabling us to support users in accessing this information and we continued to invest in developing its capability. Across the year our newer content types continued to do well with videos generating 27,840 views, podcasts generating 12,100 listens (11,663 in 2020/21) and webinars generating 8,214 participants (8,780 in 2020/21).

With uncertainty over physical events at the start of the year, the plan for 2021/22 was for three significant virtual events and a return of our physical conference in March 2022. We started with our virtual Digital Marketing Day in May 2021, this was followed in June with Digital Strategy Day and October 2021 saw the successful return of our #BeMoreDigital Fundraising Day. These three virtual events engaged 1,174 live participants for a total of 148k minutes and a further 2,141 engagements with event recordings in the year. Unfortunately, the onset of the Omicron variant of COVID-19 forced us to postpone our physical conference to June 2022. In its place, we ran a content takeover called “Digital Transformation Week”. This delivered a good level of engagement, but more modest sponsorship revenues.

Our information and education services have traditionally been funded from advertising, sponsorship and lead generation campaigns delivered for a mixture of large corporate and focused niche suppliers to the not-for-profit market. Despite the loss of the conference-related revenues in Q4, we achieved revenues of £367k an increase on 2020/21 (£342k).

5

Trustees’ annual report

For the year ended 31 March 2022

Information and Education Services – Grant Funded

In the 2021/22 year, the level of grant funded activity undertaken by the Charity increased significantly to £288k (2020/21£62k). Grants enable us to deliver programmes which have more focused impact and would not be fundable by our other income streams. Some of these grants were received directly from funders such as from the Heritage Fund (for the Heritage Digital Academy which is managed by Charity Digital but delivered by a consortium) and others indirectly such as the Digital Questions Project which is also funded from the Heritage Fund but paid by the Heritage Alliance who are managing that project.

Significant funding was also received from the Okta for Good Fund via the TIDES foundation for a new programme called Accelerating Digital Strategy. This programme, which supports a cohort of not-for-profits on a 12-month accelerator combing learning and doing, started in March 2022 but will be substantially delivered in the 2022/23 financial year.

In the 2021/22 Charity Digital also became the custodian for the Charity Digital Code. The Code was developed by a consortium of voluntary sector contributors, chaired by Zoe Amar (who is also a Charity Digital Trustee). Some initial grant funding was transferred to Charity Digital to support some activities in the year and more substantial funding is being sought to enable a major update and increased promotion of the code.

Most of the grant funded activity the Charity undertakes leverages the Affino platform, our virtual event capability and our reach into the not-for-profit sector to cost effectively deliver significant impact.

Settlement Services

CTT Charity Payments has continued to invest in its Direct Debit processing solution for UK lotteries, processing around 152,000 direct debits a month compared to 151,00 in 2020/21. The aim is to continue to offer the lowest costs solution available to maximise the proportion of ticket proceeds going to each charity.

Financial review

The consolidated unrestricted fund position as of 31 March 2022 is £864,389 compared with £914,448 as at 31 March 2021. Consolidated income of £2,260,611 was up on the 2020/21 figure of £2,045,849 whilst total expenditure was at £2,235,210 versus £1,881,937 in the previous year.

The surplus of income over expenditure in the year has led to an increase in funds carried forward at year end to £944,350 ~~.~~

Reserves policy and going concern

The reserves policy aims to ensure that the charity (and group) has sufficient reserves to continue its core activities of providing services to the charity sector, even when there are significant deviations from its business plans. The level of reserves is further considered in the context of approved contingent charity activities investment. The level of reserves needed to achieve this

6

Trustees’ annual report

For the year ended 31 March 2022

objective is reviewed on an annual basis, and for the 2021/22 financial year the target level was held in line with the policy at a target of £200,000. This target of free reserves is calculated as being Net Assets less Fixed Assets. This free reserves target was reviewed specifically by the Board at its full board meeting in March 2022 and deemed to be sufficient.

In conducting this review, a number of factors are taken into account including the degree of risk associated with future income streams, the level of fixed costs and forecast cash flow requirements.

At year-end the amount of unrestricted funds to be carried forward was £864,389. Using the calculation of Net Assets less Fixed Assets as above, unrestricted free reserves at 31 March 2022 were £830,928 thereby exceeding the free reserves target of £200,000. The end of most of the Microsoft on-premise donation programme in April 2022 is resulting in a significant loss of income in 2022/23, the Charity is therefore investing some of its reserves in developing new income streams. It is also investing in further growing its audience to increase the number of notfor-profits that will benefit from its services and content.

The Financial Sub-Committee will continue to review the financial situation carefully on a regular basis, identifying risks and potential remedies versus the monthly reforecasting.

The trustees are confident that the activities contained within the subsidiary, CTT Charity Payments Limited, continue to provide value to the charity, both in terms of its complementary activity and benefit to the charity and charitable impact to the charity community. A small profit has been forecast for the coming year, and future years will deliver similar if not higher excess funds for use in the charity. It should also be noted that included in the subsidiary’s forecast profit expected in the next financial year are apportionments of fixed cost and expense incurred in, and recharged by, the charity to the subsidiary, which would not be avoided should the subsidiary be closed. As in previous years the provision for intercompany indebtedness in the Charity has been adjusted to reflect the amount outstanding as at 31 March 2022 and provided for in full as at that date and the trustees will continue to review this position in the future.

Plans for future periods

Following the significant changes to the Microsoft donation programme it was decided to fully review and update the Charity Digital Strategy.

Working closely in the first half of 2022 the trustees and executive team refined the strategy, building on the elements agreed in 2018, with 5 key focus areas:

7

Trustees’ annual report

For the year ended 31 March 2022

Executing this strategy will be important in both increasing impact and building financial resilience following the major changes to the Microsoft on-premise Exchange programme. This will involve further investment in both people and platform development.

Together with TechSoup Global, we will continue to work with partners like Microsoft, Google and Adobe to help not-for-profits transition to the cloud whilst adapting existing commercial models to work in a subscription world.

The continuous improvement principles applied over the last ten years will continue with a focus on using technology to improve efficiency and negotiating the best possible commercial deals with suppliers.

All products and services will be reviewed for impact and their ability to generate a margin versus the complexity, risk and investment surrounding their operation. The likelihood is that we will see a more focussed list of products and services in future years and greater integration between product and content on the Charity Digital platform.

8

Trustees’ annual report For the year ended 31 March 2022

Principal risks

Our approach to risk management and control is described on page 10. Following review by the Trustees, the principal risks and uncertainties facing Charity Digital and its subsidiaries are listed here, together with a summary of our approach to managing those risks.

Risk Our Response
Financial Challenge
We operate in a dynamic environment and the
viability of our business model cannot be
assumed to continue. In addition, we are
exposed to the impact of the broader
economic environment on our customers.		 We keep our business performance under
constant review. We are actively seeking to
both grow our existing revenue streams and to
seek new avenues for the generation of
income.
People and Culture
Current market conditions mean that it may be
difficult for the Charity to recruit and retain the
right calibres of staff and hence achieve its
strategic goals.		 We place significant emphasis on ensuring our
employees feel connected to the Charity and
its mission.
We aim to maintain a remuneration package
that is competitive within our sector including
aperformance-linked bonus scheme.
Internal Factors
Our activities are highly dependent upon our
I.T. systems and in common with other
organisations cyber threats are a serious risk.		 Our I. T. environment and systems are
overseen by a dedicated resource. The security
of our systems and our plans to ensure the
continuityof operations are kept under review.

Governing document

Charity Digital Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 05 October 2018. It is registered as a charity with the Charity Commission in England and Wales.

Leadership induction and training

New trustees undergo an orientation meeting on: their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, decision-making processes, the strategy, the business plan, the budgets and recent financial performance of the charity. An induction document is updated annually.

9

Trustees’ annual report For the year ended 31 March 2022

Leadership

During the year the charity had up to 8 voluntary trustees that met formally four times to review the operations and strategy of the charity and its subsidiary and provide guidance and support to management. The trustees continue to delegate the day-to-day operational decision making to the Chief Executive and to the directors of CTT Charity Payments Limited (CTTCP).

Charity Code of Governance

The Trustees are guided by the principles of the Charity Code of Governance. The composition of the Board is reviewed regularly to ensure that the right mix of skills is present to guide the Charity. Throughout the Charity equality, diversity and inclusion is a guiding principle and the Board reviews the composition of our team regularly both in terms of composition and remuneration. The Board works closely with management through several sub-committees which help to ensure that the right decisions are taken to advance the mission of the Charity. The adequacy of the internal control environment is monitored by the Risk Committee each quarter and reported to the Board.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefits from their work with the charity. However, some of the trustees own or manage companies that the charity partners with and any payments to those organisations for services are logged on the conflict of interest register. Any new potential conflicts are declared at each board meeting

Pay policy for senior staff

All trustees give of their time freely and none have received remuneration in the year (2020/21: £Nil)

The pay of the staff is reviewed annually and normally increased in accordance with average earnings and a view on the cost of living.

The CEO salary is reviewed annually by the trustees benchmarking against levels in other charities, social enterprises and commercial organisations. The salary of the CEO was last reviewed in April 2022 at the same time as other staff members.

Risk management

The Trustees are responsible for identifying and managing the major risks facing the charity. Trustees regularly consider risk management in a broad and strategic manner, considering all relevant internal and external factors that might alter or undermine the capacity of the charity to fulfil its charitable objectives, its mission and its strategy. Risk registers provide comprehensive assurance of the following areas of risk and control:

10

Trustees’ annual report

For the year ended 31 March 2022

Our risk review process assesses each of the major risks and the effectiveness of the arrangements for managing them. The resulting report is reviewed by the Risk Subcommittee and Trustees every quarter and in greater depth once each year. The Risk Appetite statement is also reviewed by the Trustees annually. The Trustees are satisfied that the principal risks have been identified and are being effectively managed.

To ensure our future viability we continue to employ continuous improvement principles in operational and financial areas with a specific focus on being more effective and efficient at what we do whilst having the lowest cost levels possible. We have introduced several digital solutions to facilitate this whilst focussing on supplier cost reduction.

The trustees are confident that the risks and safeguards contained in the risk assessment have been properly documented and addressed over the course of the financial year. In addition, the trustees have reviewed the internal controls within the charity and its subsidiaries to ensure that they were operating effectively throughout the year as well as ensuring that they will safeguard the assets of the charity.

Trustees' responsibilities in relation to the financial statements

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

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the

11

Trustees’ annual report

For the year ended 31 March 2022

assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving the report of the trustees:

By order of the board of trustees

Claire Tavernier (Chair) 12[th] December 2022

12

Independent auditor’s report to the members of Charity Digital Trust

For the year ended 31 March 2022

Opinion

We have audited the financial statements of Charity Digital Trust (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 group financial statements section of our report. We are independent of the group and parent 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 Charity Digital Trust's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

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

13

Independent auditor’s report to the members of Charity Digital Trust

For the year ended 31 March 2022

for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

14

Independent auditor’s report to the members of Charity Digital Trust

For the year ended 31 March 2022

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

15

Independent auditor’s report to the members of Charity Digital Trust

For the year ended 31 March 2022

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.

Joanna Pittman (Senior statutory auditor)

15 December 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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

16

Charity Digital Trust

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2022

For theyear ended 31 March 2022
Note
Income from:
2,3
Reconciliation of funds:
18
Total funds brought forward
Total funds carried forward
Net movement in funds
Total expenditure
Charitable activities
Software and related services
Information and education services
Settlement services
Other
Total income
Expenditure on:
Grants
Charitable activities
Software and related services
Information and education services
Settlement services
Other		 Unrestricted
£
2,719
1,440,862
367,474
163,277
1,432		 Restricted
£
284,847
-
-
-
-		 2022
Total
£
287,566
1,440,862
367,474
163,277
1,432		 Unrestricted
£
51,962
1,470,430
342,328
168,731
2,611		 Restricted
£
9,788
-
-
-
-		 2021
Total
£
61,750
1,470,430
342,328
168,731
2,611
1,975,764 284,847 2,260,611 2,036,062 9,788 2,045,850
1,073,413
738,486
199,889
14,036		 209,386
-
-
-		 1,282,799
738,486
199,889
14,036		 1,150,599
557,750
159,642
4,158		 9,788
-
-
-		 1,160,387
557,750
159,642
4,158
2,025,824 209,386 2,235,210 1,872,149 9,788 1,881,937
(50,060)
914,449		 75,461
4,500		 25,401
918,949		 163,913
750,537		 -
4,500		 163,913
755,037
864,389 79,961 944,350 914,449 4,500 918,949

There were no other recognised gains or losses other than those stated above. All activities are continuing. Movements in funds are disclosed in note 19 to the financial statements.

17

Charity Digital Trust

Company no. 06902258

Balance sheets

As at 31 March 2022

As at 31 March 2022
Balance sheets		 Company no. 06902258 Company no. 06902258
Note
Fixed assets:
9
Current assets:
12
Liabilities:
13
15
18, 19
Total assets less current liabilities
Debtors
Funds:
Restricted income funds
Unrestricted general funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Cash at bank and in hand
Short term deposits
Tangible assets
Total funds		 2022
2021
£
£
33,461
65,419
33,461
65,419
185,589
121,806
170,049
170,000
1,522,927
1,259,728
1,878,565
1,551,534
(967,676)
(698,005)
910,889
853,529
944,350
918,948
-
-
944,350
918,948
79,961
4,500
864,389
914,448
944,350
918,948
The group		 2022
2021
£
£
33,461
65,419
33,461
65,419
524,568
581,684
170,049
170,000
1,224,262
939,604
1,918,879
1,691,288
(680,053)
(484,536)
1,238,826
1,206,752
1,272,287
1,272,171
(447,446)
(447,446)
824,841
824,725
79,961
4,500
744,880
820,225
824,841
824,725
The charity
33,461
185,589
170,049
1,522,927		 65,419
121,806
170,000
1,259,728		 33,461
524,568
170,049
1,224,262		 65,419
581,684
170,000
939,604
1,878,565
(967,676)		 1,551,534
(698,005)		 1,918,879
(680,053)		 1,691,288
(484,536)
910,889 853,529 1,238,826 1,206,752
944,350
-		 918,948
-		 1,272,287
(447,446)		 1,272,171
(447,446)
944,350 918,948 824,841 824,725
79,961
864,389		 4,500
914,448		 79,961
744,880		 4,500
820,225
944,350 918,948 824,841 824,725

Approved by the trustees on 12th December 2022 and signed on their behalf by

Claire Tavernier Chairman of the Trustees

18

Charity Digital Trust

Consolidated statement of cash flows

For the year ended 31 March 2022

For the year ended 31 March 2022 For the year ended 31 March 2022 For the year ended 31 March 2022
Note
£
£
20
267,769
(4,522)
(48)
(4,570)
263,199
1,259,728
1,522,927
g
Cash flows from operating activities
Net cash used in investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Amounts placed on short term deposit
2022		 £
£
241,509
(2,898)
47
(2,851)
238,660
1,021,068
1,259,728
2021
263,199
1,259,728		 238,660
1,021,068
1,522,927 1,259,728

19

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

1 Accounting policies

a) Statutory information

Charity Digital Trust is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is Camburgh House, 27 New Dover Road, Canterbury CT1 3DN and its main place of business is Pennine Place, 2a Charing Cross Road, London WC2H 0HF.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary CTT Charity Payments Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern and meet its liabilities as they fall due. The impact of Covid has been considered in reaching this assessment.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. There has been no material impact on trading through the Covid period and there is no expectaion that there will be in the rest ot the financial year.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. Such deferment is also applied to grants and donations until those services for which the grant or donation was made, have been provided.

f) Interest receivable

20

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on estimates of activity and/or staff time, of the amount attributable to each activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on either staff time or turnover creating the following ratios:

Support % Governance %
Software and related services 31 66
Marketing services 49 17
Settlement services - 8
Other - 9
Governance 20 -

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

The Charity had no operating leases or rentals in the financial period other that of a short term lease for accommodation (shown in Note 21 below); the cost of which is charged as it is incurred on a straight line basis.

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £200. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

21

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash in hand only includes balances held in accounts with instant access.

n) Short term deposits

Short term deposits includes cash balances that are invested in accounts with maturity dates of greater than 90 days.

o) Creditors and provisions

p) Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Pensions

The Charity operates a defined contribution pension scheme which is available to all members of staff. The Charity contributes a fixed 5% (2021:5%).

22

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

2 Analysis of expenditure (current year)

Staff costs (Note 5)
Cost of sales
Other staff related costs
Marketing
IT and transaction cost
Consultancy, legal & prof.
Auditors remuneration
Accommodation and office
Depreciation
Other
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Charitable activities Charitable activities Charitable activities Other
£
-
-
-
-
-
-
-
-
-
-		 Governance
costs
£
-
-
10,093
-
-
-
13,500
-
-
-		 Support costs
£
263,713
-
-
-
-
34,881
-
85,506
36,480
14,752		 2022
Total
£
877,940
953,931
50,172
39,631
83,066
74,760
13,500
90,978
36,480
14,752		 2021
Total
£
738,258
822,527
22,741
15,625
68,010
68,795
13,200
86,738
36,148
9,895
Software &
related
services
£
246,756
692,376
15,494
39,631
83,066
-
-
-
-
-		 In~~f~~ormation
and
Education
services
£
367,471
90,306
24,584
-
-
24,741
-
-
-
-		 Settlement
services
£
-
171,249
-
-
-
15,138
-
5,472
-
-
191,859
-
8,030
199,889
159,642
1,077,324
134,441
71,034		 507,102
213,313
18,072		 -
-
14,036		 23,593
87,578
(111,171)		 435,332
(435,332)
-		 2,235,210
-
-		 1,881,937
-
-
1,282,799 738,486 14,036 - 2,235,210 1,881,937
1,160,387 557,750 4,158 - - 1,881,937

Of the £2,218,778 (2020 - £1,881,937) £2,081,012 was unrestricted (2021 - £1,855,491) and £137,766 was restricted (2021 - £26,446)

23

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

3 Analysis of expenditure (prior year)

Charitable activities

Staff costs
Cost of sales
Other staff related costs
Marketing
IT and transaction cost
Consultancy, legal & prof.
Auditors remuneration
Accommodation and office
Financing and Interest
Depreciation and amort.
Other
Support costs
Governance costs
Total expenditure 2021		 Re stated
Software &
related
services
£
181,698
640,151
7,374
15,625
68,010
-
-
-
-
-
-		 Restated
Information
and
Education
services
£
256,241
62,591
9,468
-
-
15,937
-
-
-
-
-		 Settlement
services
£
-
119,785
-
-
-
23,023
-
5,472
-
-
-
148,280
-
11,362
159,642		 Other
£
-
-
-
-
-
-
-
-
-
-
-		 Governance
costs
£
-
-
5,899
-
-
-
13,200
-
-
-
-		 Support costs
£
300,319
-
-
-
-
29,835
-
81,266
-
36,148
9,895		 2021
Total
£
738,258
822,527
22,741
15,625
68,010
68,795
13,200
86,738
-
36,148
9,895
912,858
148,334
99,194		 344,237
190,461
23,052		 -
-
4,158		 19,099
118,667
(137,766)		 457,463
(457,463)
-		 1,881,937
-
-
1,160,386 557,750 4,158 - - 1,881,937

24

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation 36,480 36,148
Operating lease rentals:
Property 88,540 84,982
Equipment 120 120
Auditors' remuneration (excluding VAT):
Audit - group 13,500 13,200
Over -accrual in prior year 1,200 900
Foreign exchange losses/(gains) 3,048 5,748

Staff costs were as follows:

Staff costs were as follows:
Social security costs
Other forms of employee benefits
Salaries and wages
Employer’s contribution to defined contribution pension schemes		 2022
£
762,411
83,812
26,533
5,185		 2021
£
639,986
69,970
21,406
6,896
877,940 738,258

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2022 2021
No. No.
£110,000 - £119,999 1 -
£100,000 - £109,999 1
£60,000 - £69,999 ` 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £288,831 (2021: £196,791).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

No travel or other expenses were paid to the Trustees in the financial year (2021: £nil).

25

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 17 (2021: 15.4).

Staff are split across the activities of the charitable company as follows:

Staff are split across the activities of the charitable company as follows:
Software and support
Mail & marketing Services
Support		 2022
No.
5.3
8.3
3.4		 2021
No.
5.0
6.4
4.0
17.0 15.4

7 Related party transactions

During the year one of our Trustees, Zoe Amar, was instrumental in arranging the award of funding to Charity Digital in respect of the Charity Digital Code.

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary CTT Charity payments made taxable profits in the year but no charge to corporation tax is expected due to the availability of tax losses brought forward, profit of £25,283 in 2021 (2021:£31,432).

26

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

For the year ended 31 March 2022
9
Depreciation
The group and Charity
At the end of the year
At the start of the year
Additions in year
At the start of the year
Charge for the year
At the end of the year
Tangible fixed assets
Net book value
At the end of the year
At the start of the year
Cost		 Fixtures and
fittings
£
51,302
-		 Computer
equipment
£
182,619
4,522		 Total
£
233,921
4,522
51,302 187,141 238,443
50,584
-		 117,918
36,480		 168,502
36,480
50,584 154,398 204,982
718 32,743 33,461
718 64,701 65,419

All of the above assets are used for charitable purposes.

27

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

10 Subsidiary undertakings

The charitable company owns the whole of the issued ordinary share capital of CTT Charity Payments Limited, a company registered in England (4222881). The subsidiary is used for additional primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities.


activities.
The aggregate of the assets, liabilities and funds was:
Cost of sales
Operating profit
Profit for the financial year
Costs fairly apportioned from the parent charity
Gross profit
Assets
Liabilities
Turnover
Interest receivable
Deficit in funds
Administrative and direct expenses		 2022
£
163,277
(85,029)		 2021
£
168,731
(81,441)
78,248
(19,933)
(33,072)		 87,290
(27,287)
(29,050)
25,243
40		 30,953
479
25,283 31,432
339,794
(667,730)		 360,000
(713,222)
(327,936) (353,222)

11 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

12
Balance with subsidiaries
Trade debtors
Other debtors
Prepayments and accrued income
Result for the year
Gross income
Debtors		 2022
2021
£
£
133,867
80,410
10,755
10,755
40,967
30,641
-
-
185,589
121,806
The group		 2022
2021
£
£
133,867
80,410
10,755
10,755
40,967
30,641
-
-
185,589
121,806
The group		 2022
£
2,130,364
116		 2021
£
1,905,689
132,481
185,589 121,806 524,568 581,684

28

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Deferred income (note 14)
Other creditors
Accruals		 2022
2021
£
£
109,674
63,535
132,108
113,370
253,453
194,760
147,057
135,093
325,384
191,247
967,676
698,005
The group		 2022
2021
£
£
107,718
61,929
109,239
105,312
12,469
10,560
125,243
115,488
325,384
191,247
680,053
484,536
The charity
967,676 698,005 680,053 484,536

14 Deferred income

Deferred income comprises unexpired elements of invoiced contract bundles for email marketing unused by clients at year end, billed but not delivered work undertaken on the Charity Digital News platform and deferred balances from grants received where performance specified under the donation is not completed.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2022
2021
£
£
191,247
139,829
(663,466)
(139,829)
797,603
191,247
325,384
191,247
The group		 2022
2021
£
£
191,247
139,829
(663,466)
(139,829)
797,603
191,247
325,384
191,247
The group		 2022
2021
£
£
191,247
139,829
(663,466)
(139,829)
797,603
191,247
325,384
191,247
The charity		 2022
2021
£
£
191,247
139,829
(663,466)
(139,829)
797,603
191,247
325,384
191,247
The charity
325,384 191,247 325,384 191,247

15 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
Other liabilities 2022
2021
£
£
-
-
-
-
The group		 2022
2021
£
£
447,446
447,446
447,446
447,446
The charity
- - 447,446 447,446
Analysis of group net assets between funds (current year)
Net current assets
Tangible fixed assets
Net assets at 31 March 2022		 General
unrestricted
£
33,461
830,928		 Restricted
funds
£
-
79,961		 Total funds
£
33,461
910,889
864,389 79,961 944,350

29

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

For the year ended 31 March 2022 For the year ended 31 March 2022
17
18
At 1 April
2021
£
-
-
-
Code of practice
-
4,500
Total restricted funds
4,500
General funds
914,448
918,948
Tangible fixed assets
TS Foundation
Total funds
OCS
Net assets at 31 March 2021
Movements in funds (current year)
Analysis of group net assets between funds (prior year)
Restricted funds:
Net current assets
Heritage Digital
Tides Foundation		 General
unrestricted
£
65,419
849,029		 Restricted
funds
£
-
4,500		 Total funds
£
65,419
853,529
914,448 4,500 918,948
Income &
gains
£
180,088
74,404
20,957
9,399
-		 Expenditure
& losses
£
(175,060)
(5,920)
(16,406)
(7,500)
(4,500)		 At 31 March
2022
£
5,028
68,484
4,551
1,899
-
4,500
914,448		 284,848
1,975,764		 (209,386)
(2,025,824)		 79,962
864,388
918,948 2,260,612 (2,235,210) 944,350

The narrative to explain the purpose of each fund is given at the foot of the note below.

19 Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
General funds
TS Foundation
Total funds
OCS
Restricted funds:		 At 31 March
2020
£
-
4,500		 Income &
gains
£
9,788
-		 Expenditure
& losses
£
(9,788)
-		 At 31 March
2021
£
-
4,500
4,500
750,536		 9,788
2,036,061		 (9,788)
(1,872,149)		 4,500
914,447
755,036 2,045,849 (1,881,937) 918,947

30

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

Purposes of restricted funds

Heritage Digital

Heritage Digital Academy is a programme managed by Charity Digital whihh seeks to support orgnaisations in the Heritage sector in developing new practices around the use of digital tools and services.

Tides Foundation

Charity Digital has been awarded funding to deliver a programme entitled 'Accelerating Digital Strategy'. This will support a cohort of not for profits over a 12 month period and will be primarily delivered in the following finacial year.

TS Foundation (Fundacja Techsoup- [Poland])

Grants were received in the year from TS Foundation as part of the roll out of SAP's european technology access programme designed to generate interest in computer coding in young people. Small individual grants were given to local groups working with young people to hold events promote coding.

Code of Practice

Charity Digital is the custodian of the Charity Digital Code of Practice. Developed by a numiber of sector particpants, more funding is expected to further develop and promote the code.

OCS (Office for Civil Society)

Charity Digital ran a first and very successful multi strand conference event in March 2019. This event was attended by in excess of 200 delegates, many from small and very small charities. OCS provided a grant support to help charities with travel bursaries and ticket subsidy to promote representation among the smaller charities. In addition OCS helped promote a series of related webinars on subjects covered at the conference.

Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Decrease (Increase) in debtors
Increase in creditors
Net cash provided by operating activities		 2022
£
25,401
36,480
(63,783)
269,671
267,769		 2021
£
163,912
36,148
4,078
37,371
241,509

21 Operating lease commitments

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:


each of the following periods:
Property
2022 2021
£ £
Less than one year 89,400 88,200

31

Charity Digital Trust

Notes to the financial statements

For the year ended 31 March 2022

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

32