OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Family Business Research Foundation

2024-06-30-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 2024

FAMILY BUSINESS RESEARCH FOUNDATION (LIMITED BY GUARANTEE) Report and accounts For the year ended 30 June 2024

Contents Page
Charity information 1
Trustees' report 2 to 13
Independent Examiner's report 14
Statement of Financial Activities (Including Income and
Expenditure Account) 15
Balance Sheet 16
Notes to the accounts 17 to 23

FAMILY BUSINESS RESEARCH FOUNDATION Company Information

Directors

Sir M Bibby - Chair of the Board of Trustees Dr A F Discua Cruz (appointed 10/12/2024) - Research Committee Chair Mr S D Ramsden MBE Mr K J Nicholson - Risk Committee Chair Mr A Jackson (appointed 12/12/2023) P Bouverat (appointed 11/03/2025) H Trevor - Jones (appointed 11/03/2025)

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 2024.

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.

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, with a minimum of three and a maximum of ten Trustees.

The Trustees have overall control, meeting regularly to set policies, review plans, and discuss management.

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)

During 2024, Family Business UK (FBUK) resigned as the sole member and the directors at the time were appointed as the new members of the charity.

A new Memorandum of Understanding with FBUK was agreed to properly reflect the objectives of both parties under the new arrangements.

During 2023-24, 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.

2

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Key management personnel

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

An interim executive assistant was employed in the last quarter of 2023, with several colleagues performing the role throughout the year.

All Trustees give their time freely, with no renumeration.

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.

3

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.

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.

How Our Research Makes an Impact

For Corporate Partners

By supporting FBRF, corporate donors align with a research foundation dedicated to strengthening a key segment of the UK economy. Partnering with us offers:

Brand alignment with a respected institution at the heart of UK business research.

For Family Businesses

Access to research, guidance, and tools tailored to help businesses thrive.

Evidence-based insights to inform strategic planning and decision-making.

For Policymakers

Reliable research to shape policies affecting family businesses.

Data-driven insights into the economic and social contributions of the sector.

For Academics and Researchers

High-quality data and collaborations with leading universities. Strengthened research capacity in the field of family business studies.

Educational resources for teaching and learning in the family business field.

4

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Activities 2023-24 Financial Year:

During 2023-24, the Research Foundation's work focused on the following areas:

The Total Tax Contribution of Family Firms

A central focus of the Charity’s research activity in 2023 was on working with PwC UK to deliver new research to estimate the total tax contribution (TTC) of family firms in the UK. The statistical estimates from the have been used in the Research Foundation’s most recent Sector report (in collaboration with Cebr) produce more accurate estimates of UK family businesses’ TTC.

The final research report for the TTC study is available here: https://www.fbrf.org.uk/reports/total-tax-contribution-of-uk-family-businesses

An infographic summary of the key findings from the study can be accessed here: https://www.fbrf.org.uk/research-briefings/total-tax-contribution

An article summarising key findings from the research on fbrf’s website: https://www.fbrf.org.uk/articles/family-businesses-a-vital-partner-for-the-public-financesnbsp

Dr Martin Kemp (Head of Research) and Andrew Higgins (PwC) collaborated on an article for CampdenFB sharing key findings from the study: Tax Transparency Pay Off, CampdenFB, May 2024.

www.campdenfb.com/article/tax-transparency-pays-off

In September 2023, PwC and the FBRF collaborated to organise a panel discussion to discuss the findings from the TTC report, with a presentation of key findings by Andy Wiggins, ESG Tax Reporting Lead for PwC UK. The event was hosted at PwC UK headquarters in London. The event around 33 attending in person, and 52 via webex. More information about the event and a recording of the panel discussion are available here: https://www.fbrf.org.uk/past-events/panel-discussion-tax-contribution-of-family-business

New Challenges Guide

The Head of Research and a doctoral 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. This new guide was published in summer 2024 and seeks to assist business-owning families and those who own, manage, or advise family businesses to navigate potential pitfalls and challenges during leadership transitions. Navigating Non-Family CEO Succession can be downloaded here: https://www.fbrf.org.uk/s/Family-Business-Challenge-Guide-20.pdf

Environmental, Social and Governance (ESG) Research

The main output from the project ESG in Family Firms: A Review of Research, Regulations, and Practice Guidance, was published in January 2025 and includes a comprehensive review of the existing research literature on ESG in family businesses, and examines UK and EU regulations, voluntary standards, and best practices relating to ESG. It highlights the strategic role of ESG in driving sustainable growth, fostering innovation, and building long-term stakeholder trust. The report highlights gaps in the research base relating to ESG in family firms and points to the need for new guidance, practical tools, and frameworks tailored to the unique circumstances of family firms. The full report can be downloaded here:

https://www.fbrf.org.uk/reports/esg-in-family-firms

5

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

ESG Research, cont.

A briefing version of the research is available here: https://www.fbrf.org.uk/research-briefings/esg-in-family-firms

Project lead Professor Mat Hughes presented at our 2024 conference, summarising the preliminary findings from the report. See a summary of the presentation here: - https://www.fbrf.org.uk/past events/familybizresearchconference2024

The FBRF’s Head of Research, the Research team lead by Professor Mat Hughes, Leicester, Lancaster, and UEA, have worked closely together to disseminate and share the research through the their respective networks and audiences: family businesses, business organisations, the research, educational, policy and practitioner community in the UK and internationally.

Further dissemination activity planned includes:

Business Property Relief and Gift Holdover Relief

A key focus of the charity’s activities in the first six months of 2024 was on Business Property Relief. The FBRF collaborated with Family Business UK on a programme of policy analysis and research to assess the potential impact of changes to BPR in the event of a change of Government in the UK’s 2024 general election. Research was commissioned from Policy Points and Henman Strategy.

The review concluded that although the tax saved through the relief was well documented, no data required to carry out the economic/tax policy modelling was available and very limited research had been conducted on the actual impact of such changes on the resulting behaviour of family businesses and their ownership. The white paper published in September 2024 assesses the impact of BPR and GHR as mechanisms supporting the succession of family businesses in the UK, drawing out implications for tax policy, and potential reforms. Crucially, Policy Points identified the data and evidence gaps that would need to be addressed to be able to estimate or model the potential effects of any changes to these reforms on family firms. The white paper can be downloaded here:

https://www.fbrf.org.uk/reports/supporting-succession-bpr-ghr

The charity will build on the learning from this policy review and conduct further research to establish the impact in 2025-26 (see plans for future research below).

6

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Adoption of the Wates Principles among family firms

In 2023-24, Dr Martin Kemp, FBRF Head of Research, lead a project 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 full report, the Adoption of the Wates Principles among UK Family Businesses was published in September 2024 and is available here: https://www.fbrf.org.uk/reports/adoption-of-the-wates-principles-among-uk-family-businesses

The FBRF disseminated the report widely among its policy, research and advisory stakeholders and Dr Kemp wrote an article for the magazine, “Governance + Compliance” https://www.govcompmag.com/2024/11/21/applying-wates-principles-family-firms

Sector report 2024

Since 2008, the Family Business Research Foundation (FBRF) has periodically published a sector report scoping the size, scale, and diversity of the UK’s family business sector. Since 2014, this has been published most years, and has become an important source of evidence on the economic contribution of family businesses in the UK. In early 2024, we undertook an internal review of the existing approach to the charity’s Family business sector report. A revised report was commissioned with Cebr in January 2025 to speed up the production of the report by concentrating on the key findings coming out of the ONS and other surveys. Report:

https://www.fbrf.org.uk/reports/state-of-the-nation-23

Infographic summary: https://www.fbrf.org.uk/s/Infographic-summary-The-UK-Family-Business-Sector-in-2023.pdf

Research Briefing: https://www.fbrf.org.uk/research-briefings/briefing-economic-contribution-2023

Article summarising some key findings in FamilyBusiness.org: https://familybusiness.org/content/family-businesses-have-a-massive-impact-on-the-uk-economy

Family Business Research Conference 2024

During 2023-24, 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 (“Thriving in challenging times: how family businesses navigate crisis, complexity, and uncertainty”) took place on May 20, 2024, in collaboration with Lancaster University Management School’s Centre for Family Business and the Pentland Centre for Sustainability in Business.

To view the conference programme, click here: - https://www.fbrf.org.uk/s/FamilyBusinessResearchConference2024 Finalv160524.pdf

7

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Family Business Research Conference 2024, cont.

Practitioners, family business owners, researchers, advisers, and consultants came together to explore some of the challenges facing family firms in the UK today and how they are responding to these challenges. The event was held both in-person and online, with around 135 people taking part (63 in-person, 72 online), and explored a set of questions relevant to family business practitioners and researchers, including:

A summary of proceedings from the Conference can be accessed here: - https://www.fbrf.org.uk/past events/familybizresearchconference2024

Website and improving communications

To broaden the reach and impact of its research, FBRF has invested in enhancing its digital presence. This includes the redevelopment of the official website www.fbrf.org.uk to provide easier access to publications, event information, and research resources. Another key priority has been to increase the amount and quality of content on the charity’s website, and expand the charity’s communications activity and build its networks. As well as increasing the internal capacity and systems for engaging with policy makers and business/family business media, issuing press releases, engaging more actively with social media - for example, developing a robust LinkedIn presence - https://uk.linkedin.com/company/family-business-research-foundation

Building HR and Health and Safety

Developing the capability to employ and support all colleagues remains an important element to the charity’s work. A full suite of policies and systems were developed during the year including setting up the charity’s health and safety policies, documentation and procedures, compiling a new Employee Handbook, building systems for recruitment of new staff, and developing capacity and systems for managing and supervising staff.

Governance

The Research Committee has control over the identification, tendering and completion of the research and other activities such as publishing new Challenges Guides and overseeing events such as our annual research conference. Professor Ajay Bhalla stood down as Chair of the Research Committee in July 2024 and Dr. Allan Discua Cruz was appointed as the new Chair in December 2024. Ajay has completed a tremendous amount of work as Chair of the Committee, having originally set it up, he then helped deliver key improvements to our activities over his time as Chair and as a Trustee.

8

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Governance, cont.

Mr Kevin Nicholson is leading the governance review of the charity, and a full risk register is planned to be completed in 2025. Fundraising activities during 2023/24 have been led by the Chair, supported by other Trustees and the Head of Research.

As previously mentioned, significant changes have occurred to the membership of the Foundation and the make-up of the Board. Sir James Wates, Charlie Field and Chloe Benest stepped down as Trustees when FBUK retired as the sole member to show the independence of both organisations and Prof. Ajay Bhalla finished his term as a trustee in July 2024 and Dr. Allan Discua Cruz was appointed as a trustee in December 2024. The Boards heartfelt thanks go to each former Trustee for their immense contribution to the Foundation. We are happy to say that Chloe will remain on the Research Committee where her knowledge and experience is greatly valued.

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.

Philip Bouverat and Harry Trevor-Jones were appointed as Trustees in March 2025.

Dr. Martin Kemp continues as our Head of Research.

Fundraising

The three-year fundraising campaign launched in 2023 successfully raised pledges from our existing benefactors generating underlying income around £150,000 p.a. Since then, a review has been undertaken as to how to significantly scale the Foundations activities through accessing government and other research funding in partnership with universities and other organisations. The Board hopes to be able to announce the preferred development route shortly.

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

A renewed campaign was held back until the Chancellor of the Exchequer's October 2024 Budget changes on inheritance tax were known, and the costs of the required research could be estimated. When any available grant or other funding is established, the Foundation will launch a fundraising campaign to raise the required funds.

Financial Review

During the year, the Foundation recognised £154,449 (2023: £178,558) donations as income. £5,000 (2023:£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 £29,559 (2023: £33,029), all unrestricted. The funds carried forward increased to £254,267 (2023: £224,708).

9

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Financial Review, cont.

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. The resignation of FBUK as the sole member significantly improves the ability of the Foundation to act without fear of breaching any conflict-of-interest concerns.

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 £114K (2023: £93K). Reserves currently stand at a surplus of £254,267 (2023: £224,708).

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.

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. Access to additional sources of funding is being explored to allow significant growth in the charity’s activities. The success of this initiative will determine the resources required going forward.

The Charity’s Research Strategy for the current period (2023-26) is available here: https://www.fbrf.org.uk/strategy

10

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Plans for future periods, cont.

Our Research Priorities for 2025-26

FBRF is committed to advancing research that addresses the evolving challenges and opportunities faced by family businesses.

Business Property Relief

Of utmost concern to most larger family businesses have been the changes in the last budget to the Business Property Relief on Inheritance Tax. The initial research showed that there is a lot of data on the tax saved by applying the relief but virtually no analysis of the impact that the changes would have on the company and owners’ behaviour. A significant number of polls and surveys have been conducted on the initial reaction to the changes which the Foundation will not seek to duplicate but instead concentrate on monitoring the actual effect of owners and corporate behaviour over the next few years in order that future policymakers can properly understand the impact of their decisions.

The Institute of Fiscal Studies and other have raised the question as to whether family business succession is a positive for the economy given that the firms may be taken over by larger businesses who will on average make them more productive than if they were passed to the next generation. The board decided to address this issue by (a) reviewing the overall impact of family businesses on society including the effects on the economy, (b) to what extent material benefits or costs arise due to the business being owned by a family and (c) assessing the impact of the recent changes to the tax reliefs.

(a) Overall impact on society

The charity will be undertaking a comprehensive review of evidence on the effects of family ownership has on businesses, families, communities, and institutions in the UK. This will build on analyses already conducted using AI tools. The findings from this review will underpin and inform the charity’s policy research going forwards.

(b) Effect of family ownership

The Board considered the annual sector report provided excellent data to see the overall impact of family businesses on the economy but further work is required to review the effect of being owned by a family as opposed to other ownership structures.

(c) The impacts of the recent tax changes?

The charity will be examining the impact of recent changes to BPR on family businesses and succession planning, providing evidence-based recommendations to policymakers. Building on our recently published White Paper on BPR (see above).

Other Research

Other work will continue with the upcoming research agenda including:

Environmental, Social, and Governance (ESG) in Family Firms: Further research will build on the insights from the review of evidence and practice guidance on ESG in family firms recently published by the charity.

11

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Other Research, cont.

Other key actions for 2025-26:

The charity’s website (www.fbrf.org.uk) now shows all reports, practice guidance, policy and research briefings, policy analysis, case studies, and news items while regular updates continue to be sent to all benefactors, grant providers, and donors, and the ever-growing network of the charity’s stakeholders and partners.

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 S D Ramsden MBE Mr K J Nicholson

Mr A Jackson (appointed 12/12/2023)

12

FAMILY BUSINESS RESEARCH FOUNDATION Registered number: 07001473 Trustees' report

Trustees, cont.

Mr A Bhalla - Research Committee Chair (resigned 23/07/2024) Ms R M Sandby-Thomas (resigned 18/03/2024) Sir J G M Wates CBE (resigned 31/10/2024) Mr C E D Field (resigned 31/10/2024) Ms C Benest (resigned 31/10/2024)

Significant changes have occurred with the change in membership of the charity.

Mr A Jackson who was appointed during the year was formally re-appointed during the last AGM to serve his 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.

Trustees' responsibilities

The Trustees are responsible for preparing the report and accounts in accordance with applicable law and regulations.

Company law requires the Trustees to prepare accounts for each financial year. Under that law the Trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these accounts, the trustees are required to:

select suitable accounting policies and then apply them consistently;

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for 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 Foundation's website.

ðé ðì îðîë This report was approved by the board on …........................... and signed on its behalf.

~~Í·¹²»® ×Üæ ÈÑÐÆÒëÕÏÉÈòòò~~

~~…………………………~~ .

Sir M Bibby - Chair of the Board of Trustees

ܱ½«³»²¬ ×Üæ ð¼ê¼ðêë¿éë¿éêé½ç½éêð½ðçèêºìëè¾íº½º½ç¼ëïï¼éí»½¿ì¼¿îºðîïëðíìºè½»¿º

13

Independent examiner’s report to the trustees of FAMILY BUSINESS RESEARCH FOUNDATION For the year ended 30 June 2024

I report on the accounts of the company for the year ended 30 June 2024, which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. These accounts have been prepared in accordance with the accounting policies set out therein and the requirements of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing account in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (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.

This report is made solely to the Company's Board of Directors who are also the Charity's Trustees, as a body. My work has been undertaken so that I might state to the trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's trustees as a body, for my work, for this report or for the opinion I have formed.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

• to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Act; and

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements:

• to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met;

or

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

OY Monika Hazelton FCCA Loe Of

Monika Hazelton FCCA

Independent examiner

Winston Hazelton & Co Ltd

Chartered Certified Accountants 34 Arlington Road London NW1 7HU …………………….........

…............................

07 04 2025

14

FAMILY BUSINESS RESEARCH FOUNDATION (LIMITED BY GUARANTEE) Statement of Financial Activities (Including Income and Expenditure Account) for the year ended 30 June 2024

Notes
Income
Income from:
Donations
Sale of publications
Income from investments
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
2024
£
149,449
-
3,266		 Restricted
Funds
2024
£
5,000
-
-		 Total
Funds
2024
£
154,449
-
3,266
157,715
(10,766)
(117,390)
(128,156)
29,559
-
29,559
224,708
254,267		 Total
Funds
2023
£
178,558
-
-
152,715 5,000 178,558
(10,766)
(110,390)		 -
(7,000)		 (8,465)
(137,064)
(121,156) (7,000) (145,529)
31,559
(2,000)		 (2,000)
2,000		 33,029
-
29,559
224,708		 -
-		 33,029
191,679
254,267 - 224,708

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

15

FAMILY BUSINESS RESEARCH FOUNDATION FAMILY BUSINESS RESEARCH FOUNDATION FAMILY BUSINESS RESEARCH FOUNDATION Registered number Registered number
Balance Sheet 07001473
as at 30 June 2024 Charity Number
1134085
Notes 2024 2023
£ £ £ £
Fixed assets
Tangible assets 5 656 -
Current assets
Debtors 6 9,507 40,289
Cash at bank and in hand 278,615 224,477
288,122 264,766
Creditors: amounts falling due Creditors: amounts falling due
within one year 7 (34,511) (40,058)
Net current assets 253,611 224,708
Net assets 254,267 224,708
Funds
Unrestricted funds 8 254,267 224,708
Total funds 254,267 224,708

For the financial year in question, the directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 relating to small companies.

No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies' regime.

ðé ðì îðîë ÞÍÌ

Approved by the board on …....................and signed on its behalf by:

~~Í·¹²»® ×Üæ ÈÑÐÆÒëÕÏÉÈòòò ………………….....~~ .......................... Sir M Bibby - Chair of the Board of Trustees

ܱ½«³»²¬ ×Üæ ð¼ê¼ðêë¿éë¿éêé½ç½éêð½ðçèêºìëè¾íº½º½ç¼ëïï¼éí»½¿ì¼¿îºðîïëðíìºè½»¿º

16

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2024

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.

17

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2024

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.

18

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2024

2 Analysis of expenditure

Fundraising
Events
Research and printing costs
Support costs
Research Committee
Advisor
Accounting Services
Salaries and wages
Employer's NI
Pensions
Human resources and
payroll costs
Staff training, welfare and
recruitment
Bank charges
Insurance
Accommodation and
services
Strategy event costs
Meetings and conferences
costs
Telephone
Stationery, printing, postage
and sundry costs
Information and publications
Software, website and IT
costs
Travel and subsistence
Depreciation
Total expenditure 2024
Total expenditure 2023		 2024
Unrestricted
Raising
funds
£
-
-
-		 2024
Unrestricted
Charitable
activities
£
-
-
13,500		 2024
Restricted
Charitable
activities
£
-
-
7,000		 2024
Total
Expenditure
£
-
-
20,500		 2023
Total
Expenditure
£
-
712
60,187
150
630
7,250
783
157
455
318
11
35
270
44
149
50
22
-
346
63
33		 1,350
5,667
65,249
7,044
1,414
4,094
2,864
102
315
2,430
400
1,343
447
195
-
3,116
566
294		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 1,500
6,297
72,499
7,827
1,571
4,549
3,182
113
350
2,700
444
1,492
497
217
-
3,462
629
327		 1,500
6,917
56,016
6,550
1,321
592
444
30
437
9,660
617
15
87
56
169
65
-
154
10,766 96,890 - 107,656 84,630
10,766 110,390 7,000 128,156 145,529
8,465 76,877 60,187 145,529

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.

19

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2024

3
Salaries, pensions and social security costs
Analysis of staff costs, trustee remuneration and
expenses, and the cost of key management personnel		 2024
81,897		 2023
63,887

Gross wages: No employee earned more than £60,000 during the year (2023: NIL).

Total cost of key management personnel including pension contribution and employers National Insurance was £81,897 (2023: £63,887).

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 (2023:9).

4
Net movement in funds
This is stated after charging:
Depreciation of owned fixed assets
Independent examination
5
Tangible fixed assets
Cost
At 1 July 2023
Additions
At 30 June 2024
Depreciation
At 1 July 2023
Charge for the year
At 30 June 2024
Net book value
At 30 June 2024
6
Debtors
Accrued income
Prepayments and sundry debtors		 2024
£
327
2,940		 2023
£
154
2,880
2024
£
6,000
3,507		 Equipment
£
1,858
983
2,841
1,858
327
2,185
656
2023
£
40,000
289
9,507 40,289

20

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts

for the year ended 30 June 2024

FAMILY BUSINESS RESEARCH FOUNDATION
Notes to the Accounts
for the year ended 30 June 2024
7
Creditors: amounts falling due within one year
Trade creditors
Deferred income
Other taxes and social security costs
Other creditors		 2024
£
37
6,000
1,872
26,602		 2023
£
1,620
12,000
1,943
24,495
40,058
34,511

Deferred income: £6,000 of income pledged from Foundation benefactors in the year 30 June 2024 has been deferred to the year ended 30 June 2025 (2023: £12,000 deferred to the year ended 30 June 2024).

8
Unrestricted Funds
At 1 July 2023
Income from donations
Total expenditure
Transfer to Restricted Funds
At 30 June 2024		 2024
£
224,708
152,715
(121,156)
(2,000)
254,267
9
Restricted Funds
Income from donations
Total expenditure
Transfer from Unrestricted Funds
At 30 June 2024		 2024
£
5,000
(7,000)
2,000
-

2024:Restricted funds consist of restricted donation for the cost of ESG in Family Firms: A Review of Research and Practice - research conducted with University of Leicester. 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.

2023: 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 donations would be met by an appropriate transfer from the unrestricted funds.

21

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2024

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/ liabilities		 2024
Unrestricted
Funds
9,507
277,115
(2,000)
(31,011)		 2024
Restricted
Funds
-
1,500
2,000
(3,500)		 2024
Total
Funds
9,507
278,615
-
(34,511)
253,611 - 253,611

11 Related party transactions

There were no related party transactions during the year.

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

Up to the end of October 2024 the Charity was a subsidiary of Family Businesses UK LTD by virtue of Family Businesses UK LTD being the only member in the company. After careful consideration and extensive discussions, both organisations jointly decided that Family Businesses UK LTD will cease to be a member of the charity (FBRF). The Directors, who were also trustees of the charity, have taken over as the members of FBRF.

14 Company information

The Family Business 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.

22

FAMILY BUSINESS RESEARCH FOUNDATION Notes to the Accounts for the year ended 30 June 2024

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
Net movement in funds before transfers
Transfers 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
-
161,058 17,500 178,558
(8,465)
(76,877)		 -
(60,187)		 (8,465)
(137,064)
(85,342) (60,187) (145,529)
75,716
(42,687)		 (42,687)
42,687		 33,029
-
33,029
191,679		 -
-		 33,029
191,679
224,708 - 224,708

23