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2023-06-30-accounts

Registered number 07001473 Charity Number 1134085

FAMILY BUSINESS RESEARCH FOUNDATION (A Charitable Company Limited By Guarantee)

Report and Accounts

For the year ended 30 June 2023

FAMILY BUSINESS RESEARCH FOUNDATION (LIMITED BY GUARANTEE) Report and accounts

For the year ended 30 June 2023

Contents Page
Charity information 1
Trustees' report 2 to 11
Independent Examiner's report 12
Statement of Financial Activities (Including Income and
Expenditure Account) 13
Balance Sheet 14
Notes to the accounts 15 to 21

FAMILY BUSINESS RESEARCH FOUNDATION Company Information

Directors

Sir M Bibby - Chair of the Board of Trustees Mr A Bhalla - Research Committee Chair Mr S D Ramsden MBE Ms R M Sandby-Thomas Sir J G M Wates CBE Mr C E D Field Ms C Benest Mr K J Nicholson - Risk Committee Chair Mr A Jackson

Accountants

Winston Hazelton & Co Ltd 34 Arlington Road London NW1 7HU

Registered office

Share London The Green House 244-254 Cambridge Heath Road London E2 9DA

Registered number 07001473

Bankers

Santander UK plc Bootle Merseyside L30 4GB

1

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

The directors (who are also the trustees) present their report and accounts for the year ended 30 June 2023.

The Trustees have adopted the provisions of the Statement of Recommended Practice (FRS 102 Charities SORP, Second Edition) on "Accounting and Reporting by Charities", effective 1 January 2019 in preparing the annual report and financial statements of the charity.

Structure, Governance and Management Structure and organisation

The Family Business Research Foundation (the Foundation), was incorporated on 26 August 2009 as a company limited by guarantee, number 07001473, and a Charity registered with the Charity Commission, number 1134085. The Foundation is governed by its Memorandum and Articles of Association.

The Foundation is formerly known as IFB Research Foundation. The Foundation changed its name by a written resolution dated 23 August 2023 in accordance with Part 13, Chapter 2 of the Companies Act 2006 in order to continue to reflect the association with its sole member.

The Foundation has no share capital but under the terms of its Memorandum of Association every member is liable to contribute a sum not exceeding £1 in the event that the Foundation is wound up whilst they are a member or for one period thereafter. The Directors of the Company are the Trustees of the Foundation. The number of Trustees shall not be less than three nor more than ten.

The Foundation is under the overall control of the Trustees, who conduct the affairs of the Foundation.

The Trustees meet regularly to set the policies and overall direction of the Foundation, to review its plans and to discuss the management of the Foundation's affairs.

The Foundation has an open recruitment procedure for new Trustees who have the appropriate skills and experience to meet the needs of the organisation and has procedures for the induction of new Trustees.

Cooperation with other organisations and bodies (both charitable and non charitable)

Independently governed, the Family Business Research Foundation works closely with the Family Businesses UK LTD (FBUK), its sole member. Some of the Foundation's Trustees are connected with the FBUK.

During 2023, the service agreement with the FBUK was terminated and the Charity set up its own administrative support and website. The Memorandum of Understanding with FBUK continues and is currently being reviewed to ensure it properly reflects the objectives of both parties under the new arrangements.

During 2022-23, the Foundation continued to expand its network of stakeholders and partners in the UK and internationally and collaborates with UK family businesses, firms providing services to family firms, universities, research providers, consultants, and other stakeholders to achieve its goals and objectives.

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Key management personnel

The Board of Trustees are the key management personnel of the Foundation in charge of directing and controlling the Charity. The management, running and operating of the Foundation is assigned to the Head of Research, being a paid position.

The administrative requirements have increased with the termination of the service agreement with FBUK, and an interim executive assistant was employed in the last quarter of 2023. A full-time Operations and Governance Manager has been recruited in 2024. The salaries for both posts have been benchmarked against similar positions in other non-profit organisations and are kept under review.

All Trustees give their time freely and no trustee received remuneration in the year. Details of Trustees' expenses are disclosed in Note 3 to the accounts.

Objectives and Activities

Principal objectives and aims

The Foundation is dedicated to promoting a deeper understanding of family business in the UK. The Foundation’s activities help to deliver its Mission “to grow a strong and thriving UK family business sector” by:

This is done for the public benefit and all our findings and publications are disseminated to our stakeholders on an open-source basis, free of charge, including, for example, family business research community (in the UK and internationally), decision makers, the media, family business owners, managers and practitioners, and the wider policy and business community in the UK. The Trustees have had due regard to the guidance issued by the Charity Commission regarding public benefit. They consider the work done by the Foundation to be in the public benefit as the services supplied are to advance the education of the public in the spheres of business and management. The Trustees are also satisfied that the Foundation’s objectives will be met through the various activities being undertaken. The Trustees consider the Foundation to be a public benefit entity.

The Foundation’s research strategy sets out how the Foundation will deliver its mission during 20242026, can be found here:.

https://www.fbrf.org.uk/strategy/

The Foundation aims to achieve its mission by expanding knowledge about and understanding of family businesses and how their owning families are most effectively organised.

To make this happen the Foundation aims to ensure that:

  1. The best data possible are available on which to conduct research;

  2. Academics are interested and motivated to interpret these data;

  3. Research is focused on areas of greatest impact to companies; and

  4. Findings from our work are communicated effectively to all stakeholders.

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Principal Activities, Review of Business and Achievements and Performance

The Foundation aims to ensure that the best evidence is available on UK family businesses, and both engages and supports researchers and academics working in this field and carry out research focused on areas of greatest impact on UK family businesses and business families. The Charity’s activities are focused on undertaking, commissioning, publishing and disseminating family business research and analysis, and developing new evidence-based guidance in five main areas – as set out in our Research Framework.

Defining and characterising family businesses. Understanding business families. Understanding the effects of family ownership on the business. Identifying and assessing the impact of family businesses on the economy and society. Analysing and evaluating the impact of government policy on family business.

The Foundation’s publications are designed to create a better understanding of family business, for the benefit of all. The Foundation does not seek to replicate corporate research done elsewhere but focuses on the effect of family ownership on companies’ operations and its impact on the economy and society.

During 2022-23, the Research Foundation's work focused on the following areas:

Research and publications

A central focus of the Charity’s research activity in 2022-23 was on working with PwC UK to design and deliver new research to estimate the Total tax contribution of family firms in the UK. The statistical estimates from the study will enable the Foundation to make more accurate estimates of the tax contribution of UK family businesses going forwards, though the TTC study will need to be repeated periodically to keep these estimates up to date.

The final research report for the TTC study is available here:

https://www.fbrf.org.uk/reports/total-tax-contribution-of-uk-family-businesses

A shorter briefing version of the findings from the study can be accessed here:

https://www.fbrf.org.uk/s/IFBResearchFoundationTTCinfographicfinal.pdf

On 6th September 2023, PwC and the Family Business Research Foundation (FBRF) organised a panel discussion to discuss the findings from the tax report https://www.fbrf.org.uk/past-events/fbrfpwc-panel-discussion-on-the-tax-contribution-of-family-firms

Since publication, the findings have been widely disseminated among family businesses, politicians, advisers, economists and finance specialists, and the international research community.

An article summarising learning from the project can be accessed here: https://www.fbrf.org.uk/articles/family-businesses-a-vital-partner-for-the-public-financesnbsp

The Head of Research also published a chapter on codes of governance for family businesses in the De Gruyter Handbook of Family Business, along with Professor Carole Howorth and Professor Tim Nichol. This can be accessed here:

https://www.fbrf.org.uk/reports/codes-of-governance

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Research and publications - cont.

Work on the Foundation’s 2022 Family Business Sector report overlapped with the previous financial year. The findings from the report were disseminated among the Charity’s networks and among the research, policy and family business communities in the UK. The report included an indepth look at the impact of COVID 19 on family businesses and, for the first time, made use of new survey data on family firms available from the Office for National Statistics. The full report can be accessed here:

https://www.fbrf.org.uk/reports/state-of-the-nation-22

The Trustees decided not to produce the traditional Sector report in 2023 in order to fund the TTC study.

The Head of Research and a researcher at Cranfield University collaborated on a new Challenges Guide (20th in the series) on succession to a non-family CEO based on research at Cranfield Management School. The new guidance is due to be published in spring 2024.

The Head of Research also collaborated with researchers from three UK universities to investigate the adoption of the Wates Principles among UK family businesses, as well as the quality of reporting among family firms (compared with non-family firms). This follows up an earlier FRC study that looked at private firms’ level of engagement with the Wates Principles The data preparation and analysis of the data took place in the summer-autumn of 2023 and the report from the project will be published in 2024.

During 2023, the Charity commenced a new programme of work on ESG, commencing in the first stage with a review of existing evidence on ESG in family firms, which also includes a review of existing practice guidance on ESG to assess its relevance for family firms. This is in preparation for producing new evidence-based guidance on ESG tailored to UK family businesses. A partnership of family business researchers from Leicester (Project lead: Prof. Mat Hughes), Loughborough, and Lancaster Universities have been commissioned to deliver the project which will commence in February 2024 with a report due in summer 2024.

Family Business Research Conference 2024

During 2022-23, the Foundation continued to strengthen its links and expand its networks among family business researchers and organisations in the UK and internationally, as well as with UK family firms and practitioners and the UK policy community. The Foundation plays an active role in the family business research and practitioner community in the UK.

The Family Business Research Foundation’s annual research conference took place in March 2023 in collaboration with the Enterprise Research Centre (Aston Business School and Warwick Business School). The conference, New Frontiers in Family Business Research, was hosted at The Shard in London, with around 120 people attending, the majority of whom attended in-person. The conference sought to bring together researchers, policy makers, and family-business practitioners to discuss current themes and challenges in the family-business research field, and to explore new priorities and avenues for research.

Slides and videos of presentations of the conference can be found here:

https://www.fbrf.org.uk/past-events/new-frontiers-in-family-business-research-conference-march2023-the-shard-london

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Family Business Research Conference 2024 - cont.

We have also edited and uploaded the video recordings of presentations and panel discussions from the previous year’s conference (organised in partnership with Loughborough University) which focused on governance in family firms. Available here: https://www.fbrf.org.uk/past-events/4th-annual-research-event-governance-in-family-business

Finally, it should be noted that research activity was somewhat restricted over the past year due to two main reasons:

First, the withdrawal of the Foundations support services meant that the Head of Research and Trustees had to focus resources and time on setting up new administrative systems for the Charity and independent operating procedures mostly from scratch: for example:

The Trustees are pleased to report that this transition has largely been completed and new research projects are now actively being tendered and completed.

Second, 2023 is the first year in the Foundation’s three-year fundraising cycle 2023-26 which required additional time to set up the prospectus, write to potential benefactors and make grant applications.

Governance

The Trustees have improved the governance arrangements with the Research Committee now actively controlling the identification, tendering and completion of the research and other activities such as publishing new guidance for family firms and organizing events such as our annual research conference. A Risk and Governance Committee chair has been appointed and has completed a tremendous amount of work, having reviewed the risk profile of the Charity and identified key improvements to be made. A full risk register review is planned to be completed in 2024. Fundraising activities during 2023 have been led by the Chair, supported by other Trustees and the Head of Research.

Board reporting has been improved to better identify risks and understand forecast cash movements.

In June 2023, the Board was sorry to see Roshy Dwyer step down after 13 years as a Director, helping focus, drive, grow and sustain the Charity’s activities. The Board wishes Roshy every success going forward.

Rachel Sandby-Thomas notified the Board that she intends to step down when her current term ends at the next AGM and not stand for re-election, The Board thanked Rachel for her wise council over the past three years.

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Governance - cont.

In December 2023, Adam Jackson was appointed as an independent trustee. His experience of conducting research and advising on government policy on SMEs within the civil service and private sector will help focus the Foundation’s research and activities to deliver enhanced impact.

The Foundation is able to appoint up to 10 Trustees and is likely to be looking to recruit a Treasurer in 2024 as well further diversifying the skills and experience on the Board.

Dr Louise Scholes was recruited in July 2022 to provide expert advice to the Foundation's Research Committee on family business research matters. Over the past year she has continued to make a valuable contribution the Foundation's work. The Research Committee has met several times over the past year to discuss and plan research matters and issues as they arise and to support the Head of Research in his role. The Committee' membership includes Dr Louise Scholes (Expert Adviser), three trustees including Professor Ajay Bhalla (Chair), and Dr Martin Kemp, the Head of Research.

Fundraising

A new appeal commenced in early 2023. The Foundation continued to be supported by most of its previous donors, but it is also working successfully at adding new benefactors. During the year, the Charity continued to develop new and existing partnerships and other funding opportunities as a key way of delivering its work, for example, collaborating with universities and research partners to deliver research events such as the UK Family Business Research Conference.

The three-year fundraising campaign successfully raised pledges from our existing benefactors generating underlying income around £150,000 p.a. however further follow up fundraising was restricted given the Foundation’s content on the IFB’s old website was no longer available after June 2023. A new website was built, once the Foundation logo was agreed and name changed, extremely quickly at a minimal cost, providing the Charity with a more fit for purpose website which reflects our work and mission and will enable the Charity to share and communicate learning from its activities more effectively.

Donations to specifically support certain research projects have been raised in the year for the first time in recent years and this approach is expected to be continued going forward.

A renewed campaign targeting family businesses and foundations that do not currently support the Foundation will be launched in 2024. The new Operations and Governance Manager will support the Charity’s fundraising activities, so this should enable the Charity to take a more structured approach to fundraising going forwards.

7

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Financial Review

During the year, the Foundation recognised £178,558 (2022: £122,000) donations as income. £17,500 of these donations were restricted.

The Board of Trustees wish to record their gratitude to the Foundation's benefactors and supporting foundations. Our funders' financial support provides the organisation with the resources to pursue its charitable purpose.

During the financial year, after meeting all its costs, the Foundation produced a net surplus of £33,029 (2022: deficit of funds of £4,435), all unrestricted. The funds carried forward increased to £224,708 (2022: decreased to £191,679).

The Trustees consider that it has adequate assets to continue to meet its obligations for the foreseeable future.

Risk Management

The Trustees are committed to reviewing the major risks which the Foundation faces on a regular basis and believe that maintaining reserves no lower than the levels set in the board's policy, combined with a regular review of the controls over the key financial systems, will provide sufficient resources in the event of unforeseen and/or adverse circumstances arising.

Conflict of interest

The Trustees are aware of a legal duty to act only in the best interests of the Foundation. In line with published guidance from the Charity Commission, practical steps have been developed for identifying, managing, preventing and recording of conflicts of interest.

Unrestricted reserves policy

In order to provide sufficient funds to cover ongoing management, administration and support costs the Trustees have decided that the Foundation's unrestricted reserves represented by the net current assets should be kept to a total of no less than one year of support costs plus an allowance of one third of annual research and publication and dissemination costs, i.e., circa £93K (2022: £99K). Reserves currently stand at a surplus of £224,708 (2022: £191,679).

Investment policy

The Trustees take a prudent view regarding the investment of surplus funds. Under the memorandum and articles of association, the company has the power to make any investment which the Trustees see fit after obtaining advice from a financial expert as the Trustees consider necessary. The Trustees have considered the most appropriate policy for investing funds and have decided funds invested in bank accounts currently meet their requirements.

Fixed assets

The cost and depreciation policy are disclosed in the notes to these accounts.

Dividends

No dividend is proposed as the Foundation is a Charity.

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Plans for future periods

The Foundation now has a much sounder base upon which to grow, with control over its own systems, processes, and assets, including its own website. The recruitment of a new Operations and Governance Manager will allow the Head of Research to focus on developing research projects and academic work in the family business field, whilst also allowing more focus on a consistent fundraising programme.

The Charity’s Research Strategy for the current period (2023-26) is available here:

https://www.fbrf.org.uk/strategy

In 2024, the Charity will deliver a programme of activities aligned with this overall strategy. The Foundation will continue to work in partnership with FBUK, academic institutions and business partnership to produce impactful research, evidence, and guidance to inform UK family businesses and decision-makers and to better communicate its work to all stakeholders. For example:

As noted above the Foundation is delivering a new programme of work on ESG. In spring/summer 2024, new qualitative research will be commissioned informed by this evidence review and which will form the basis for new evidence-based practice guidance on ESG specifically tailored to family businesses.

Findings from the research already underway on the reporting by family businesses using the Wates Principles will be disseminated via our website and other channels. In Spring 2024, we will also publish a new Challenges Guide (produced in partnership with researchers at Cranfield Management School) on non-family leadership succession in family firms.

A review of our flagship publication, the UK Family Business Sector Report, is underway, which involves considering the best methods and data sources for examining the UK sector and assessing the economic and social impact of family businesses. Going forwards, the new taxation estimates produced by PwC will provide us with more accurate estimates of the contribution that family firms make to the public finances.

One particular area that the Charity intends to focus on in 2024 is looking at how to use artificial intelligence and other innovative methods for identifying family businesses and creating new data sources to underpin family business research in the UK. This may involve commissioning new work in this area.

The Charity will continue to develop and improve the way that it disseminates and communicates its work, producing more multi-media content for the Charity’s website, developing online or in-person events for sharing new family business research with the Charity’s partners, and greater use of social media.

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FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Plans for future periods - cont.

In addition, the annual academic conference is planned to be held at Lancaster University Business School in May 2024 and participation in the FFI conference being held in London in the autumn is being discussed.

In 2024, we aim to complete and build on the substantial amount of work undertaken to develop and improve the Charity’s operations, policies, procedures, and data systems. The Charity has for instance adopted a treasury policy to allow more cash to be placed on longer term deposits to generate more interest going forward, whilst still ensuring liquidity issues are minimized.

Benefactor engagement

The website now shows all reports and news items while regular updates continue to be sent to all benefactors. A Benefactor’s dinner is being planned for 2024 at London Business School.

Trustees

The Trustees of the Foundation, who constitute directors for the purposes of the Companies Act 2006 had no beneficial interest in the funds of the Foundation at the beginning and end of the period and were as follows:-

Sir M Bibby - Chair of the Board of Trustees Mr A Bhalla - Research Committee Chair Ms R K Dwyer - Treasurer (resigned 19/06/2023) Mr S D Ramsden MBE Ms R M Sandby-Thomas Sir J G M Wates CBE Mr C E D Field Ms C Benest Mr K J Nicholson (appointed 28/10/2022)

The Trustees who were the longest serving Trustees at the last AGM dated 1 December 2022, have resigned and were all re-appointed as trustees on 1 December 2022. K J Nicholson who was appointed during the year was formally re-appointed during the last AGM to serve her full first term.

It was also confirmed that one third of the longest serving Trustees would resign and they will have the opportunity to be re-elected as trustees, at the next AGM.

10

FAMILY BUSINESS RESE#ACH FOUNDATION Re8lslered number.. 07001473 Trusl•¢$' ropwt law and regjhts'ons. Ccffipany rewres the Truslees to yepart ac¢tyJnts finan0 y. Under thai law the Trustees hav• doCt8d to wapare ￿ a¢coJrts n aCC4xdw i￿1h United Kingdorn Ggneralty Accepte(l AC￿￿ntsng Pract(e (United Kj'ngaom S￿￿a￿s and awY￿e t￿1. Under company th8 knijslees mu51 Tr)1 approve thè accrAwffS unless Ilwy We sab"sfieL1 thai tsy 9ive a InJ8 and f8ic view of Ihe state of aTrars •YJ of the profft ( (09$ r>f kne fc Ih81 Ferioj. In wepamg Ihese xcounts, tr tnMtee5 are reqLHred t)ser¥e I￿ rnet￿$ aryl prrritAes of Charibe5 SORP tharitywl contirnje in cwatio . state wthether aK¥thable Acc¢)uthg kndards arhj Statements of Recrynrnendea Practic have lollrrned. su4.eci lo any dep¥W thsdosed ar¥J gxrts'rd in th8 fina￿￿81 statements and explain the Charws trartsaCbL￿ and ¢knaose reasonatle accJJracy al wy "me th8 finar£ial po$ib"ts) ol Ihe Charity and erobk to erts￿e that the a￿o￿ntS comply ith the Acl 2c￿. They resp￿$th for Saleguardlr￿ the assets of the cornpany and hence Iiytaking reasonaNe sw forthe prevefthl de*¢b"¢Y& offraud and olher Irrewlarths. This repJrtwa$ 8pwov•J by￿ b+. !& fiu .. wwj Swed on ts bth￿r. "bby. Clwr ol the Bowd ofTnJstees 11

Indepondont examinerfs rnport to the trustee5 of FAMILY BUSINESS RESEARCH FIXINDATION For the year end￿1 30 June 2023 l on the acrnunts ￿ the ¢xxro¥ny lty Ihe yw ended 30 20fJ. which conwri50 Slatemnt of Financ￿ Athiis. ts Balance Slet and the re￿ted Mlos. Those accounts hav• been Fvared m ￿￿￿ance with ￿ 8co)unting po￿￿ set cojt therwn and the rnquirements the Aewunkng aThY Reportry by Chaii.. Statwnent ol Re0yr￿l#S¢{1 Pr•¢tice appkuts￿ l¢+ charits preparing account in accordance with the Firwrthl Rewbr#J kndard apph"¢al)le in V UK and RepU￿1C ¢4 Ir•J8TrJ IFRS1021 lellecbNY 1 Jawary 20191- Ch•ritEs SORP FRS 102 ISecoTh1 Editwjnl. the Fina￿111 Rewbng Stwthrd aPF4¢ablè ￿ thB UK and Fiepubk of Ireland IFRS1021 and Ihe ¢Thns Act 2fxJ6. Thi5 report soletyto fv Ccry8Ds Bowd ol th0 * also ttcharW$Twst￿. a5 a tr￿dY My wort h85 been uThJert8ken so that I mty3ht state to tr¢tsteÈs mètters l am uited lo state to them in •n IndEperKlÈnl E￿n￿er$ rewrt no other puw. To st extent permthd by . I dp not W or a55urre to anyo￿ other than th8 Charty and the Charitys t￿￿￿e5 as a body. ts my wotk. fty Ihi% for Ihe opjnion I have Th& trustees (who are also ts direuots ol the eJJryany foT the of euryfiy lwl •r raspons￿le for the preparntson of the accounts. trustees CC•SkJur Ihal an audit i4 not requirÈd lor thi5 year under s8Ctw 144121 ol the Clwths kl 2011 Ithe ALa} •Jd bw • Md¢p&￿InI éxaffMnal￿n reded. Havirq ￿kfd rrry5eW Ihal the charity rs nDt s&4ecl t4 urth e(ryaAy taw is 818ibtè for nidependent exMatitin. rt ts my rÈsportsi¥lrty to.". . examin8 the accounts ur￿r8e¢&￿￿ 145 oftheA¢ . to follow the prccedures la￿ down in the gerrnl CrectK￿s gwen by the Charity undvseckn 14515llbl olthe Art wnd . io Slate whether particU￿rInat￿r5 ho￿ to ry atiEntithl. 8a818 oflnd•pnd•ntouThn8e8 teport My e¥arnination was carned out in accoTdarKe ¥Ah general D￿5 9r4en by Charty Comrrission. An e¥aminabon ￿cjLth$ a revw attoLmtiTrJ rBords k8Pt by the ch•iity aftd tyrparison of Il accounts pr•sent•d wth those rect￿. M 0 includès of any Unusu￿ iterrd or dock¢wes in tke •c¢ourAS. and seekth9 you as trustees ncerning any such mitters. The woLdures undertaken do Tr)1 al ts evhyence that woukl te wuired ￿ an audit 80d Cor￿￿trY otxmn t& as to Ihe accounts presant a and fair ¥￿. and ￿port is to IIM)sÈ matters set tyjt in ts stslThnt Indèpen¢lent sttrrneht 11 whith gives ￿SOna￿e cause trj beheve that in any rnalerial re¥ct rwuwwrwts". . to keep rectsrds in wGcordance wrfh Sec1￿ 386 ofthe CtrnpansAL 20C6', uireftnts ol secbon YJ6 of the Cfrynies Act 2C(6 with ￿ ￿ott5 ar￿ prirtip$ of the 121 to whth. in my atteThti￿ 51¥xthl be itrawn in ¢ythr tsenabkn a rry8r YrnJO￿18nth9 cl Monika Plaz•hon FCCA Indewndeni gxaftxr•r Win8trJn Hazelton & Cts Charter•Y Cernfi8d Accoufttsnts 34 Arfington Ro& NW17 12

FAMILY BUSINESS RESEARCH FOUNDATION (LIMITED BY GUARANTEE) Statement of Financial Activities (Including Income and Expenditure Account) for the year ended 30 June 2023

Notes
Income
Income from:
Donations
Sale of publications
Total Income
Expenditure
Expenditure on:
Raising funds
2
Charitable activities
Research activities
2
Total Expenditure
Net movement in funds before transfers
Trunsfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
2023
£
161,058
-		 Restricted
Funds
2023
£
17,500
-		 Total
Funds
2023
£
178,558
-
178,558
(8,465)
(137,064)
(145,529)
33,029
-
33,029
191,679
224,708		 Total
Funds
2022
£
122,000
-
161,058 17,500 122,000
(8,465)
(76,877)		 -
(60,187)		 (8,509)
(117,926)
(85,342) (60,187) (126,435)
75,716
(42,687)		 (42,687)
42,687		 (4,435)
-
33,029
191,679		 -
-		 (4,435)
196,114
224,708 - 191,679

Continuing operations

All of the above results in the current and comparative years are derived from continuing activities.

Other recognised gains and losses

There were no other recognised gains or losses other than those stated above.

Movements in funds

Movements in funds are disclosed in Notes 8 and 9 to the Accounts

Comparative figures

Detailed comparative figures are provided in Note 16 to the Accounts

13

FAMILY BUSINESS RESEARCH FOUNDATION Bal8n¢e Sl•t •s at 30 Jun¢ 2023 Reg51wed number 07001473 Chanty Number 1134085 Flxed asstts Tangit4e assets 154 Cmnt ass•ts Debtors Cash ai bank and in 224.477 219.709 227.040 Cr￿lt0￿5. amount5 falkng dMI wlthln one >af 140.0 {35.5151 Net 4$6•ts 224,708 191.525 224.7C* 191.679 Funds 191,679 Tolal funds 224. 191,679 exempts'on from the requirementlo oblan 5ecbcffl 477 of Ihe ¢c￿panieS Act 2¢ lating to small ujmpaw. No rnernbe￿ have required the company to obtain xcwnts fLY Ihe year in ¢WeS￿On sn ￿c￿d￿￿llh seclicffl 476 01 the Act Approved by the 14.f4 swon ts behav ty. &"rM Btkny. Chwof Ihe Bowd ot 14

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2023

1 Summary of significant accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention (unless otherwise stated in the relevant policy or note) and 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) (effective 1 January 2019) - Charities SORP FRS 102 (Second Edition), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

Public benefit entity

The Foundation meets the definition of a public entity under FRS 102.

Going concern

The trustees consider that there are no material uncertainties related to events or conditions that cast significant doubt upon the Foundation's ability to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial accounts. In particular the trustees considered the Foundation's budget projection. The trustees made enquires and have concluded that there is a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. The Foundation therefore continues to adopt the going concern basis in preparing its accounts.

Fund accounting

Unrestricted funds comprise income receivable or generated for the furtherance of the objects of the Foundation without a specified purpose and are available as general funds. Expenditure which meet these criteria are charged to the funds, together with a fair allocation of support costs. Accumulated surpluses are available for use at the discretion of the trustees.

Restricted funds can only be expended in accordance with specific restrictions. These arise either by the wishes of the donor or by the nature of the appeal.

Income

Total income is included in the Statement of Financial Activities. Income comprises principally donations to further the charities objectives. Donations are brought into income when the Foundation 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.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure includes attributable VAT which cannot be recovered. Expenditure which is directly attributable to specific activities will be included in the relevant activity.

15

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2023

Support costs

These are management and administration costs and comprise expenditure not directly attributable to the generated funds, charitable or fund raising activities of the Foundation, but relate to furtherance of the Foundation's objectives. They are therefore allocated to the relevant category of expenditure based on estimates of the time devoted to each activity.

Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts.

Cash at bank and in hand

Cash at bank and in hand includes bank balance kept in current account.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Taxation

The company is not liable to corporation tax as it is a Registered Charity.

The company is not VAT registered and can therefore not recover input tax on goods and services purchased.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Equipment - 25% straight line

Employee benefits

Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

Short term benefits

Short term benefits including holiday pay are recognised as an expenses in the period in which the service is received.

16

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts

for the year ended 30 June 2023

2 Analysis of expenditure
Fundraising
Events
Research and printing costs
Support costs
Legal and Professional Fees
Research Committee
Advisor
Accounting Services
Salaries and wages
Employer's NI
Pensions
Staff training, welfare and
recruitment
Bank charges
Insurance
Accommodation and
services
Strategy event costs
Meeting costs
Telephone
Stationery and printing
Information and publications
Software costs
Travel and subsistence
Depreciation
Total expenditure 2023
Total expenditure 2022		 2023
Unrestricted
Raising
funds
£
-
-
-		 2023
Unrestricted
Charitable
activities
£
-
712
-		 2023
Restricted
Charitable
activities
£
-
-
60,187		 2023
Total
Expenditure
£
-
712
60,187		 2022
Total
Expenditure
£
-
1,500
41,343
59
150
692
5,602
655
132
44
3
44
966
62
2
9
6
17
7
-
15		 533
1,350
6,225
50,414
5,895
1,189
400
27
393
8,694
555
13
78
50
152
58
-
139		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 592
1,500
6,917
56,016
6,550
1,321
444
30
437
9,660
617
15
87
56
169
65
-
154		 1,717
-
4,400
52,790
6,264
1,321
280
47
244
16,710
-
-
310
21
130
-
238
620
8,465 76,165 - 84,630 85,092
8,465 76,877 60,187 145,529 126,435
8,509 117,926 - 126,435

Support costs include all expenditure not directly related to the charitable activity. These are allocated to the relevant category of expenses based on estimated time devoted to each activity. In the current and preceding years it is: 10% to raising funds and 90% to charitable activities.

17

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2023

3
Salaries, pensions and social security costs
Analysis
of
staff
costs,
trustee
remuneration
and
expenses, and the cost of key management personnel		 2023
63,887		 2022
60,375

Gross wages: No employee earned more than £60,000 during the year (2022: NIL).

Total cost of key management personnel including pension contribution and employers National Insurance was £63,887 (2022: £60,375).

The trustees did not receive any remuneration or expenses for services to the Foundation in the year. The average number of persons employed during the period, including the trustees, was 9 (2022:9).

4
Net movement in funds
This is stated after charging:
Depreciation of owned fixed assets
Independent examination		 2023
£
154
2,880		 2022
£
620
2,760

5 Tangible fixed assets

5
Tangible fixed assets
Cost
At 1 July 2022
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
At 30 June 2023
Net book value
At 30 June 2023
At 30 June 2022
6
Debtors
Accrued income
Prepayments		 2023
£
40,000
289		 Equipment
£
1,858
1,858
1,704
154
1,858
-
154
2022
£
7,000
331
40,289 7,331

18

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts

for the year ended 30 June 2023

7
Creditors: amounts falling due within one year
Trade creditors
Deferred income
Other taxes and social security costs
Other creditors		 2023
£
1,620
12,000
1,943
24,495		 2022
£
3,457
5,000
1,980
25,078
35,515
40,058

Trade creditors include an amount owing to The Institute for Family Business (UK) of £Nil (2022: £2,400).

Deferred income: £12,000 of income pledged from Foundation benefactors in the year 30 June 2023 has been deferred to the year ended 30 June 2024 (2022: £5,000).

8
Unrestricted Funds
At 1 July 2022
Income from donations
Total expenditure
Transfer to Restricted Funds
At 30 June 2023		 2023
£
191,679
161,058
(85,342)
(42,687)
224,708
9
Restricted Funds
Income from donations
Total expenditure
Transfer from Unrestricted Funds
At 30 June 2023		 2023
£
17,500
(60,187)
42,687
-

Restricted funds consist of restricted donations for the cost of Total Tax Contribution (TTC) of Family Businesses in the UK Study with PricewaterhouseCoopers LLP. The Trustees agreed that the remaining cost balance not covered by the restricted donation would be met by an appropriate transfer from the unrestricted funds.

19

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2023

10 Analysis of net assets between funds
Current assets:
Debtors
Cash at bank and in hand
Transfers between funds
Creditors: amounts falling
due within one year
Net current assets		 2023
Unrestricted
Funds
40,289
224,477
(20,187)
(19,871)		 2023
Restricted
Funds
-
-
20,187
(20,187)		 2023
Total
Funds
40,289
224,477
-
(40,058)
224,708 - 224,708

11 Related party transaction

Under the terms of a service agreement with its parent Family Businesses UK LTD the company incurred costs in the year relating to support and administration of £7,200 (2022: £15,000). The service agreement terminated as at 16 March 2023 and was not renewed.

12 Liability of members

The company has no share capital but under the terms of its Memorandum of Association every member is liable to contribute a sum not exceeding £1 in the event that the company is wound up whilst they are a member or for one year thereafter.

13 Ultimate parent organisation

The company is a subsidiary of Family Businesses UK LTD by virtue of Family Businesses UK LTD being the only member in the company. Family Businesses UK LTD is a not-for-profit membership association which supports the family business sector in the UK through an extensive programme of learning and networking and through advocacy of the sector as the backbone of the UK economy.

14 Company information

IFB Research Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Share London, The Green House, 244-254 Cambridge Heath Road, London, E2 9DA.

15 Presentation currency

The accounts are presented in Sterling.

20

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2023

16 Statement of Financial Activities (Including Income and Expenditure Account)prior year.

Income
Income from:
Donations
Sale of publications
Total Income
Expenditure
Expenditure on:
Rising funds
Governance costs
Charitable activities
Research activities
Total Expenditure
Other recognised gains/losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
2022
£
122,000
-		 Restricted
Funds
2022
£
-
-		 Total
Funds
2022
£
122,000
-
122,000 - 122,000
(8,509)
(117,926)		 -
-		 (8,509)
(117,926)
(126,435) - (126,435)
(4,435)
196,114		 -
-		 (4,435)
196,114
191,679 - 191,679

21