Charity registration number 1141069
Company registration number 06581421 (England and Wales)
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr Michael Lewis Mr Stuart Fiertz Mr M Bergman Dr Serra Kirdar Mr Edward Williams Mr Konstantin Von Unger Mr Stephen Zinser
(Appointed 28 February 2023) (Appointed 1 January 2023)
Charity number 1141069 Company number 06581421 Registered office PO Box 75769 London SW1P 9ER Auditor Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX
INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 8 |
| Statement of Trustees responsibilities | 9 |
| Independent auditor's report | 10 - 12 |
| Statement of financial activities | 13 |
| Balance sheet | 14 |
| Statement of cash flows | 15 |
| Notes to the financial statements | 16 - 25 |
INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees present their annual report and financial statements for the year ended 31 December 2022.
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Institute for Strategic Dialogue (the company) for the year ended 31 December 2022. The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution
The company is registered as a charitable company limited by guarantee (registered charity number 1141069) and was set up by a Memorandum of Association on 30 April 2008.
The charity is constituted under a Memorandum of Association and is a registered charity.
Method of Appointment or Election of Trustees
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.
Organisational Structure and Decision Making
The Institute for Strategic Dialogue (ISD) has a Board of Trustees that meets twice a year (until 2022), moving to three times a year from 2023. There is a Chair of the Board and Treasurer. The Institute also has an active Finance Committee, made up of the Chair and Treasurer, which meets regularly and works closely with the Chief Executive Officer (CEO) and Chief Operating Officer (COO).
Responsibility for day-to-day management matters and the implementation of policy is delegated to the CEO, within a clearly understood framework of strategic control. The CEO is supported by a leadership team and senior management team responsible for the execution of the organisational objectives. All Trustees and Staff are required to report any potential or actual conflicts of interest immediately to the Chair and/or CEO.
Risk Management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Public Benefit
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. All of the activities that are undertaken by the charity are for the advancement of the objectives and the activities that are undertaken by the charity to further its charitable purposes are for the public benefit.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Objectives and activities
The Institute for Strategic Dialogue (ISD) is an independent ‘think and do tank’ that studies and develops policy and operational responses to the rising challenges of hate, polarisation and extremism. Combining research and analysis of disinformation, hate and extremism with government advisory work, training, capacity building and educational programmes, ISD has been at the forefront of forging real-world, evidence-based responses to the challenges of disinformation, extremism and polarisation.
The principal objects of the charity and company are:
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The advancement of the education of the public in the UK and elsewhere in relation to government, economics, politics, law, administration and social services;
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The advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity;
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Such other charitable purposes as the Trustees shall from time to time think fit.
STRATEGIES & ACTIVITIES FOR ACHIEVING OBJECTIVES
Since its formation, ISD has been at the forefront of solutions that combat extremism, hate speech and disinformation. At a time when these pose immediate threats to safety, security and democratic civil culture and institutions, ISD is working to enable individuals, organisations and nations to turn the tide.
ISD’s work is delivered through three types of activity:
1. RESEARCH & ANALYSIS - ISD combines sector-leading expertise and research in global extremist movements with advanced digital analysis that identifies and tracks disinformation, weaponised hate and extremism in real time. Our Digital Analysis Unit has been at the forefront of analysing audiences, networks and content to accurately interpret the threat of disinformation, hate and extremism online. This, combined with ISD’s ongoing anthropological research, has ensured that ISD has consistently been ahead of the curve in predicting developments at the nexus of disinformation and extremism. Our research informs responses to these emerging challenges, and shapes policy-makers’ and the public’s understanding of evolving threats.
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ACTION PROGRAMMING - ISD innovates, trials and scales cutting-edge interventions that empower cities, practitioners and civic leaders to mitigate hate, polarisation and disinformation. From our digital education and communications programmes, to our training and direct interventions with at-risk individuals, we build the resilience of communities on and offline. We work to empower and facilitate civil society, fostering networks of community groups and influencers to take the lead, applying their granular expertise and credibility in a way that delivers impact at scale. ISD has pioneered the application of data, technology and marketing tactics to mount a proportional response to extremist messaging.
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POLICY & ADVISORY SERVICES - ISD provides strategic advice, policy support and training to local and national governments and multilateral institutions worldwide, giving them the data, expertise and support needed to deliver evidence-based policy and programming. We lead inter-governmental policy initiatives on extremism, polarisation and digital regulation that optimise counter-extremism and integration policies and programming and safeguard democracy. ISD also provides high-level digital policy input to the tech sector to harmonise efforts with governments and civil society.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Achievements and performance
Polarisation, hate, extremism and disinformation continued to have a profound impact on society throughout 2022, presenting real and immediate threats to cohesion and democracy worldwide. We achieved our charitable objectives in the year through three core operating areas: research and analysis; policy and advisory services; and action programming.
During 2022, ISD’s research teams published work showing how extremists, conspiracy networks, hate groups and authoritarian states borrow from each other’s playbooks and amplify each other’s narratives. ISD’s work showed how profits are being made from hate and disinformation and how social media products and algorithms are supercharging everything from electoral disinformation to misogyny. In 2022, our teams helped safeguard elections in the US, France, Kenya, and Australia; protect targeted communities from harassment and violence, and countered conspiracy and disinformation on Ukraine, climate, migration and public health. Our digital policy team used this insight to move the needle on tech platform action and regulation. Where bad actors seek to exacerbate division and undermine trust, we worked to deliver programming to meet the evolving challenge.
The following areas of programming constituted particular highlights of the organisation’s work in 2022:
Research & Analysis
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Research on conspiracy, extremism and hate: 2022 once again saw a number of vicious attacks motivated by extremist ideologies and conspiracy theories. The mass shooting in a supermarket in Buffalo, New York in May was one of the deadliest and ISD experts spoke to NBC News about what the shooting can tell us about online extremist communities. We also discussed with BBC News the importance of disengaging people from conspiracies that have become mainstreamed; sounded the alarm over videos of the shooting that remained online with Bloomberg; and explained to Tortoise how gaming platforms can be a link to extremist communities, building on ISD’s extensive analysis of extremism across gaming platforms. In 2022, ISD also produced four separate reports on how extremist actors use alternative platforms; produced one of the most comprehensive studies of Islamic State’s social media ecosystem; and charted the numerous difficulties entailed in researching the evolving online ecosystem.
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Misogyny and targeted hate against women and LGBTQ+ people: In addition to a study of abusive hashtags recommended to users searching for female political candidates on social media, we produced one of the first pieces of its kind looking at algorithmic recommendation of misogynist content on YouTube and YouTube Shorts. For the award-winning Slow Newscast podcast, ISD experts explored how platforms with aggressive algorithms like TikTok are actively contributing to the popularity of misogynistic online content produced by Andrew Tate and others. We also published a study on gender-based harassment by QAnon supporters, and explainers about Incels and the Manosphere. Simultaneous with assaults on the rights of women, LGBTQ+ people increasingly had their rights and freedoms attacked in countries around the world. ISD published analysis of the ‘groomer’ narrative used to slander LGBTQ+ people as paedophiles for VICE, Euronews, and Insider; followed the harassment of drag queens reading to children for CNN; and explored the links between a Spanish-based advocacy group and the cancellation of a British children’s sex education play for VICE. In the aftermath of the vicious attack on a gay club in Colorado Springs that left multiple people dead, ISD provided thought leadership on the international trend of antiLGTBQ+ hate and demonstrated an increase in ‘groomer’ rhetoric on social media stemming from the attack.
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Research and action on antisemitism: In collaboration with UNESCO and B’nai B’rith International, ISD produced a first-of-its-kind toolkit for civil society and practitioners looking to combat online antisemitism. As part of our Explainer series, we published articles exploring common conspiracy theories that are often tinged with antisemitism - the New World Order and the Great Replacement - as well as shining a light on the antisemitic ‘Khazarian Mafia’ conspiracy theory circulating around the war in Ukraine. ISD also built and tested new tools which we deployed to detect antisemitic content online.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
- Response to the Russian invasion of Ukraine: The 2022 invasion of Ukraine marked a significant geopolitical shift in Europe and the trajectory of the war will in so many ways determine the balance of power between authoritarianism and liberal democracy on the global stage. ISD quickly mobilised in the immediate aftermath of the Russian invasion to track and monitor Kremlin information operations targeting global audiences, as well as technology platform performance in relation to stemming the tide of Russian disinformation regarding the war. Our objective was to provide vital information on one key question: how and where pro-Kremlin propaganda reaches foreign audiences. This work served to inform policy audiences at the highest levels in the UK (including foreign office briefings), the US (including White House briefings) and the EU. It also led to us securing funding to set up a monitoring taskforce contributing to the EU ‘Disinformation Situation Centre’ which exposes online disinformation about the conflict in Ukraine for the European Commission in the first instance but also to other government, media, corporate clients and the public.
We continued research on the war throughout 2022, creating a resource page on the Ukrainian war to provide analysis of the evolving threat landscape to policymakers, the media and wider public. This included the first analysis of TikTok’s role in the info war; a dissection of pro-Kremlin operation #IStandwithRussia; analysis of a Chinese-linked network supporting Russia; and numerous breakdowns of Russian state media’s circumvention of sanctions. Our expertise featured prominently in the media landscape, with Sasha Havlicek appearing on Sky’s prime-time programme The Great Debate and BBC Radio 4’s Today programme to discuss the war. We collaborated with the Washington Post to debunk viral misinformation on TikTok; had our investigation of atrocity denial in Bucha covered by the Guardian; worked with BBC News to analyse networks of Vladimir Putin ‘superfans’; spoke to Deutsche Welle about RT’s success in the Arabic-language information war; gave comment to Al Jazeera on the pro-Kremlin troll army Cyber Front Z; and helped the New York Times understand Russia’s information war past and present. Building on these insights, our teams have launched counter disinformation education and communications programming in countries heavily targeted by Russian propaganda.
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Climate information operations analysis: In 2022, ISD built on our work to provide real-time analysis of information manipulation related to the COP27 climate summit. We provided real-time intelligence for the duration of the climate negotiations in Sharm el-Sheikh as part of the Climate Action Against Disinformation coalition. During the event, the unit produced eight ‘COP, Look, Listen’ intelligence briefings, the equivalent of ~90 pages of data-driven evidence and case studies. These were circulated to a mailing list of 920 subscribers, nearly tripling the audience engaged in 2021. ISD also produced a landmark report on the state of climate disinformation: Deny, Deceive, Delay, launched at the UN’s Climate Change Conference in Bonn and covered across the media spectrum. Activity from the coalition generated over 300 media hits with coverage in The Guardian, The Independent, Forbes and Newsweek.
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Islamist Extremism: In 2022, ISD’s experts on Islamist extremism produced one of the most comprehensive social media analysis of al-Shabaab and Islamic State networks on Facebook in Somali, Swahili, and Arabic, generating substantial coverage by the Associated Press, the Washington Post, and Voice of America. The report was similarly featured in two of the largest daily newspapers in Kenya, the Nation and the Standard. ISD’s findings from the report were presented to the UK Home Office, the UK Research, Information and Communications Unit, the US State Department Bureau of Counterterrorism, the Global Coalition to Defeat Daesh, and the National Counterterrorism Centre of Kenya. The report highlighted the gaps in platform moderation during a highly contentious election year in Kenya and identified 168 calls for violence across Meta platforms. ISD experts similarly released a report highlighting the networks, supporters, and platforms affiliated with Islamic State disinformation disseminators. The proIslamic State alternative news outlet ecosystem uncovered by ISD was exploiting platform inability to verify media sources, by masquerading as legitimate news outlets.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
- Electoral Disinformation: ISD continued its efforts to protect elections from information manipulation in an array of international contexts, working with coalitions of in-country partners to deliver real-time insights into the threat landscape and equip those at the front line with the data and capacity to respond. In 2022, these included the Australian, French, Kenyan and US midterm elections. ISD’s growing election team continuously tracked threats of violence, abuse, foreign and domestic disinformation, voter intimidation, confusion or suppression tactics, as well as attacks on election infrastructure. We delivered flags of high risk activity, analysis and training to community organisations, governors, state secretaries, election officials, federal, state and local law enforcement agencies, working to protect communities from violence, safeguard the integrity of the election and hold platforms to account. The New York Times covered our research on short-form video platforms and the spread of election disinformation, as well as on disinformation efforts around election drop boxes, which became mainstreamed earlier this year. Our expert analysis was cited by CNN, Bloomberg, the NYT and Time Magazine on and after Election Day. ISD’s Head of Election Integrity gave testimony before the US House Committee on Administration about the growing threat of election disinformation, and ISD’s Head of Disinformation Research gave expert comment to Bloomberg about Meta’s failures to curb election fraud content and to NBC and the BBC on state-backed information operations.
Policy & Advisory
- Influencing Digital Policy: Throughout the year, we continued to hold platforms to account over their failure to address extremist content and disinformation with over 25 research reports, briefings and Digital Dispatches on the subject published over the course of the year. Our team sought to be agile and responsive to new threats exacerbated by platform failures and insufficient policies, focusing on the monetisation and algorithmic amplification that benefit malign actors. We explored how YouTube profits from hateful Super Chats; assessed how algorithmic ranking practices affect online discourse; analysed new and alternative platforms such as Odysee and Gettr; highlighted inauthentic tactics used by political campaigns; evaluated platforms’ implementation of EU sanctions against Russian state media; produced four separate reports on how extremist actors use alternative platforms; and published a series of case studies showing how a commercially motivated network has used conspiracy clickbait to make serious money. We also assessed the platforms’ responses to the rollback of abortion rights in the wake of the Dobbs decision and the subsequent overturn of Roe v. Wade , documenting their inability to curb misinformation about reproductive rights even 100 days after the Supreme Court ruling.
Outside the Western context, we produced impactful research on the influence of Salafi-jihadist groups and other extremist actors in the Middle East and Africa. Our report highlighting Facebook’s failure to remove terrorist content from their platform in Kenya was covered by AP News, and saw Amnesty International release a statement calling on both Meta and the government to take action. We also released one of the most comprehensive studies of Islamic State’s social media ecosystem completed to date, and ISD collaborated with the Syria Campaign on a report looking at the human costs of disinformation spread about the Syria conflict. Our Executive Director for Asia, the Middle East and Africa gave comment to POLITICO and Washington Post on the poor moderation of terrorist content in the region.
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Digital policy and regulation: ISD continued to work on digital policy and regulation in 2022 by convening the Digital Policy Lab (DPL). The DPL is an inter-governmental working group of Five Eyes and EU governments and regulators, funded by the German Foreign Office, focused on charting the regulatory and policy path forward on platform governance. Digital Policy Digests were published to track policy developments from across member countries as well as policy papers emanating from DPL Working Groups established on critical challenges including platform data access and algorithmic auditing. We hosted a series of DPL sessions in the year focused on risk-based policy responses, examining the parameters of formulating, designing and conducting risk assessments of online platforms, both within and beyond the context of the EU’s Digital Services Act. ISD’s research and policy analysis in this domain fed into advisory work with a range of governments and multi-stakeholder initiatives and ISD’s CEO Sasha Havlicek had the honour of addressing the Christchurch Call Leaders’ Summit in the margins of the UN General Assembly on the matter of algorithmic oversight and transparency. The Summit was attended by world leaders including former New Zealand President Jacinda Ardern, French President Emmanuel Macron and Canadian President Justin Trudeau.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
Action programming
- The Strong Cities Network (SCN): During 2022, our Strong Cities Network (SCN) launched four new Regional Hubs – in East and Southern Africa, MENA, South Asia and the Western Balkans – to serve as regional focal points for cities and to catalyse network engagement and support across these regions. These hubs will serve mayors and local leaders, sharing and delivering good practices and training to address threats where they are felt most acutely: at a local level within communities around the world. The team delivered two virtual regional summits (one in Africa and another in South Asia); organised an inperson city exchange in Kyrgyzstan; organised a Mombasa Governors roundtable on ‘Delivering as One in Preventing Violent Extremism Conducive to Terrorism in Kenya’; hosted a US-Nordic exchange on citylevel P/CVE in Helsinki; and carried out two city consultations in Slovakia. With support from the European Union, the SCN also convened over 100 mayors and other local government officials, as well as representatives from national governments, civil society organisations and multilateral bodies like the UN Office for Counter Terrorism and UN Women, in Nairobi, Kenya and Dakar, Senegal to explore how to enhance city-led efforts to prevent and counter extremism across the African continent. Finally, antisemitism, racially motivated extremism, far-right extremism, dis/misinformation and polarisation were key thematic foci for the Network’s Transatlantic workstream, including workshops in Helsinki and Denver. This area of programming culminated in the endorsement of The Hague Mayoral Declaration by more than forty cities from both sides of the Atlantic – a demonstration of the commitment and determination of cities to work together to counter hate, extremism and polarisation, and to safeguard local democracy.
In 2022, we continued fruitful collaborations with partners such as Nordic Safe Cities through our Together for Safety series, which focused on Safeguarding Local Democracies and Safe City Governance and Regional Alliances. We also worked with new partners, such as the University of Denver’s Colorado Resilience Collaborative, and with the Bertelsmann Foundation, a collaboration that produced a graphic animation of key mayoral decision points during and in the wake of the 2018 attack at the Tree of Life Synagogue in Pittsburgh, Pennsylvania. Stronger Than Hate, narrated by the former Mayor of Pittsburgh Bill Peduto, was one of five shorts nominated for Cannes Shorts’ Best Animation Film this year. The SCN and ISD were also represented at a range of events, including at the Summit of the Americas in LA, where the SCN hosted a roundtable on city-led violence prevention.
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Practitioner training: Mass casualty attacks in the US in 2022 underscored the need for improved capacity at the front line of violence prevention. Through our partnership with the McCain Institute for International Leadership, we developed and delivered practice guides and training for US practitioners, equipping over 500 practitioners - including social and health care workers, education providers and law enforcement - with the capacity to respond to domestic extremism as part of the build-out of the first US prevention practitioners network.
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Counter-extremism interventions playbook: In September 2022, ISD began scoping models of interventions to counter Gen-Z youth radicalisation online based on our extensive research into the GenZ online extremism landscape. ISD analysts worked to identify key gaps in current interventions programming, and novel opportunities for online interventions. Following this analysis, we will produce a ‘playbook of the possible’ outlining innovative, experimental models for interventions. Working with an oversight board of subject matter experts, ISD will then test these interventions in a controlled environment to identify models with the potential for application in large-scale programming.
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Counter-extremism educational resources: In 2022, ISD completed a project in Québec to deliver interactive resources for teachers, youth workers and those engaged closely with young people, centered on exploring the first-hand stories of former extremists and survivors of violence. Part of the Extreme Dialogue programme run with partners Duckrabbit, The Tim Parry Johnathan Ball Peace Foundation, and the Montreal Centre for the Prevention of Radicalization Leading to Violence (CPRLV), this project produced two new films telling the stories of Sylvain and Junior, two French-speaking individuals who have both experienced forms of radicalisation and violence. They are accompanied by educational resources centered on experiential learning to ensure maximum impact on young people.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
MEDIA AND COMMUNICATIONS
During 2022, ISD published 64 report-style publications along with 92 Digital Dispatches in order to inform the public, policy makers and other stakeholders on trends and analysis on hate, extremism and disinformation. In addition, we launched our Explainers section - a glossary on different extremist narratives, movements and actors - of which we published 16 entries covering topics from the 'Great Replacement' theory to the Reichsbürger movement behind the failed coup in Germany.
In 2022, international news outlets sought ISD experts and analysis during important moments such as RussiaUkraine War, the global freedom/trucker’s convoys, multiple elections, Elon Musk’s Twitter takeover, the UN’s Climate Change conference (COP27), the coup plot in Germany, and more. In February, when Russia invaded Ukraine, we spoke to the New York Times, the BBC, the Washington Post, AP News, Al Jazeera, Politico, and others about the online war over information and the different pro-Kremlin tactics at play. We provided analysis to the Guardian and Slate on the Bucha atrocities, and CEO Sasha Havlicek featured on BBC Radio’s news and current affairs program, Today, and also joined Sky News’ the Great Debate answering the question, “can the West stop Vladimir Putin?”
Our analysis on the US elections featured in Bloomberg, the Washington Post, POLITICO, Axios, VICE News, and TIME, among others. Other US topics that garnered coverage included the overturning of Roe v. Wade, covered by Axios and Deutsche Welle; the Buffalo shooting, covered by NBC, ABC and BBC; and the FBI’s search of Donald Trump’s residence, covered by The Hill, ABC and NPR. A report we published exposing the state of Islamic State content on Facebook in East Africa prompted a response from Amnesty International and was covered by the BBC, Washington Post and AP. Work we did on anti-LGBTQ+ hatred was covered by VICE, CNN and Insider, and we spoke to NBC News, Metro Weekly and Washington Post, on the far right’s reaction to the Colorado LGBTQ+-bar shooting. ISD researchers provided commentary to Bloomberg, AP News, the Washington Post, Euronews, on Musk’s takeover later in the year, and featured in MIT’s Technology Review talking about the risk of losing Twitter’s digital and human history records. During COP27, we featured in Politico, and provided journalists with daily monitoring reports on mis- and disinformation trends through our participation in the Climate Action against Disinformation coalition. Our experts commented to Newsweek, Reuters, Vice News, and more, on the failed coup plot to overthrow the German government and its conspiratorial connections. ISD’s CEO Sasha Havlicek also delivered high-level appearances, including at Eradicate Hate 2022 and alongside world leaders at the Christchurch Call Leaders’ Summit, as well as being an expert panellist at Defence Disrupted and the Institute for Economics’ 2022 Global Terrorism Index presentation. Her interview for the new Paramount Plus docuseries Indivisible: Healing Hate also premiered in 2022.
OPERATIONS
2022 was a significant year for ISD’s institutional growth and operations. In addition to a number of exciting new hires to our UK team, we also achieved significant expansion of ISD’s sister organisations ISD US and ISD Germany. ISD recognises that our global impact is best achieved by effective co-working between ISD UK and all other ISD entities, and so ISD invested in the growth and training of these teams as well as improved inter-entity working across all ISD’s geographies.
During 2022, we actively managed approximately 45 concurrent projects valued at £14.2 million throughout their lifecycles, with £6.01 million generated in 2022 income. We made substantial improvements in project management, developing a versatile Project Management Toolkit and introducing dashboards for workstream oversight, promoting transparency, ownership, and accountability. Additionally, we strengthened business development oversight through focused weekly meetings and an improved automated system.
We recruited ISD’s first Managing Director in Spring 2022, mandated to drive a number of priority institutional projects including building our capacity for internal knowledge and information flow and boosting management processes to support our growth and internalisation. She also provided leadership and management support to our senior teams. Meanwhile, our COO expanded her team to bring on additional operations staffing to support this growth, including a Head of Finance and additional HR and finance staff in the UK, Germany and the US.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUEO) FOR fHE YEAR ENDED 31 DECEMBER 2022 FUTURE PLAN8 In 2023. ISD will continue to dèlivei Ils work inlernationally. We antlclp81è th8 start or continu8t+on of many new mvlti-year grants 8nd projeet5. particularfy in rolalion to rtse8rch and th8 Strong Crties N81work In fundraising, 2023 will see significant expansion of ISD's work in the United Slates through its sisl•r Ofganisation, th8 In5tilulo lor Slrategic Dialogue-us. In September 2023. ISD'S co-Founder and CEO Sasha H8vlicek will move Irorn London lo INashington DC to drive the growth of the global group of org8nisalions from thèrè Oneo sh• is no longèr an èmployèè tsf ISD UK, responsibility for t1ay-to-day management mallers and th8 impl&ment8lion ol ptslioy will b8 do981 from lh• Board directly to Sarah Kennedy. the Chief Operaling Officer. and Arabella Phillimoro, Iho Managing Director, with ¢lèarty understood fram$work of stralggic control. Flnan¢141 r•vl•w The results lor the yaar show that there was n1 expenditure of £788,25812021'. £100,960). Th• lotsl incoming resourcès for the ygar were £6.014,73912021.' £6,829,1(X)l. The d)arity has bèèn able to a¢hieve rts obp¢lives as reserves have been maintained to enable it lo do so. Al 31. Drnber 2022, the unrestrf¢t•d reseryas amount8d to £4102.343 and re$lrS¢led res¢rv•$ amounted lo £479,465 R•••pé• Poll¢y Th¥ Trustees Closely monitor lh• lèvel ol freo reserves availabl8 to ènsure Ihere is s¢Jfficienl financial n•xibility in place. It is the Truslees. policy to oc¢umulale reserves for fulurè 8eUvilies. The free r•serv8s (nèt of r•stnct¢d funds) available as at 31, 08eèmber 2022 were £359,08312021." £167.2441- prowdin9 in ¥xe¥s$ 013 monlhs, adminislratson cosls in the following financial year at projected expenditure levels. At the time ol approving the financial slalements, th4 fru51ees have a 8$Onabl& xwdalion that th• Chafty has adeq¢Jale rèstsurcè$ Its support Ihe curr8nt leval of èxpgndilure and lo continuè In operational exist•nc lor the lorèsèèabl• lulure. Golng Cvnoern After making appropriate anquiries, th• Trust¢$s have a reasonable axpeetation Ihal the Company has asjequat? resources lo continue in operational existence fof the loresaaablg lulure. For Ihis aSOn th8y continue to adopl th• 90ing cxjncern basis in preparing the financial slatem•nts Dl•¢lo•ur• of Infgrni•ll•n to iudltor Each of the Twsl••s has confirmed Ihal there is no information of which they arè aware which 15 relevant to the audrt. bul L)f which the auditor is unaware. Thgy have further confirmed that they have laken apwr)priate st&p$ lo ideniify such relevant Information and lo e51ablish Ihal the audrtor Is aware of such Information. The Trust 0$ report pproved by Ihtr Board of Tru$lee$. MrMI Chair ol Trustees Dated." 17 October 2023
INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2022
The Trustees, who are also the directors of Institute for Strategic Dialogue for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements 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.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE
Opinion
We have audited the financial statements of Institute for Strategic Dialogue (the ‘company’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’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 annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE
Responsibilities of Trustees
As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the company for the purpose 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. In preparing the financial statements, the Trustees are responsible for assessing the 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 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 as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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, is detailed below.
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We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with management (as required by auditing standards).
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We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
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Except for any known or possible non-compliance, and as required by auditing standards, our work in respect of these included enquiry of management about the company's policies, procedures, and related controls regarding compliance with laws and regulations and if there are any known instances of noncompliance.
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We tested the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
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We performed analytical procedures to identify any unusual or unexpected relationships.
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We examined supporting documents for all material balances, transactions and disclosures.
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We evaluated the selection and application of accounting policies related to subjective measurements and complex transactions.
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We reviewed the board of trustees’ minutes.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE A further de9P.0 of our responslblMl•s 1$ available Anon¢aal Reporling Counal'$ webstt at.. httpsjl wMv.fr¢.org.ukJauditorsresponb1lths. Thr8 d&wiplion foms part of our ¥uditorfs report U8• ofour fvport This report 1$ made solely to the charity$ trustees, as a body, in a¢¢ord4nce part 4 of the Chartbes IAceounts and Reports) Regulations 2008. Our audfrt has been undertaken so Ihal we might Blate to the chadtys trn$l¢$ those matt•r¥ w• arg rgquir•d to $tat• tts thgrn in an auditoes report and ft¥r no other purpose. To the full¢st ¢xt¥nt p•mitted by law. we do not a¢¢epl or assume responsits'llty to anyone other than lh& and tht charttys trustees as a bfyjy. for our audit work. for this report. orlor the opinions A hav• bm)•d Land•u Morl•y LLP 25 06rtiknr 2023 Chart•rod A¢¢ountsnts statutory Audltor 32&327 Okjfield L•n• North Gr•enlord IAiddl8s•x UB6 OFX Landau Morf•y LLP h •1Iglble for oppolnlment •$ audknr of Ihe ¢>Jmpany by vlrt¢Je of h ellglbllty lor appolntrnenl •s audllor of a company undfjr lethn 1212 ofthtr Cixnpanl8$A¢¢ 2006. 12-
INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted Restricted funds funds 2022 2022 Notes £ £ Income from: Charitable activities 3 1,512,851 4,501,888 Expenditure on: Charitable activities 4 1,373,927 5,429,070 Net incoming/(outgoing) resources before transfers 138,924 (927,182) Gross transfers between funds 28,377 (28,377) Net income/(expenditure) for the year/ Net movement in funds 167,301 (955,559) Fund balances at 1 January 2022 235,042 1,435,024 Fund balances at 31 December 2022 402,343 479,465 |
Total Unrestricted Restricted funds funds 2022 2021 2021 £ £ £ 6,014,739 699,797 6,129,303 6,802,997 841,646 6,088,414 (788,258) (141,849) 40,889 - (16,779) 16,779 (788,258) (158,628) 57,668 1,670,066 393,670 1,377,356 881,808 235,042 1,435,024 |
Total 2021 £ 6,829,100 6,930,060 (100,960) - (100,960) 1,771,026 1,670,066 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS Af31 DECEMBER 2022 2022 2021 Not•• Flx•d Assets Tangible 855e15 CurT•nt •88•ts Oeblots Cash at bank and In h8nd 11 43,280 67,798 12 1,100,018 303,805 1,312.387 884,113 1.403,821 2,176.5(KJ Cr•dltor8.' mounts IAlllng du• wlthln on• y•r 13 1565,2731 1574.232) Net curTenl assts 838,548 1,802,288 Totsl s8•ts1•6* ¢umint Ilabllltl•• 881.808 1.670,Ce6 Ineom• funds Reslricled funds Unrpslricted funds 14 479,465 402,343 1,435,024 235.042 881,808 1.670.066 The company is entitled lo the exemption from the audit requirement contained in sect 477 of the Companies Act 20(, forthe yearended 31 December 2022. although an audit ha5 been carried out under section 144 of the Charth"es Act2011. The directors acknowledge their responsibilities for cx)mplying with the requirements of th8 C(xnpanies Aca 21))6 with respect to accounting records an¢J thts preparation of financial statements. The members have not reqsjired th• eompany to obtain an audrt of its financi81 staternenls under th• requirèments ol the Companies Act 2006. for the year In question in accordance wth section 476. These finanryal 51alemer¢ls have been prepared in a¢cor¢Jance wth the promsions apPlible to companiès subject to the small companies regime. The finan I stateme erè approved by the Trustees on 17 Oclobèr 2023. Mrmi Tru¥t•• ae ewis Company R•glstratlon No. 06681421 14-
INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
| Notes Cash flows from operating activities Cash absorbed by operations 18 Investing activities Purchase of tangible fixed assets Net cash used in investing activities Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2022 £ (23,093) |
£ (537,215) (23,093) - (560,308) 864,113 303,805 |
2021 £ (34,226) |
£ (433,779) (34,226) - (468,005) 1,332,118 864,113 |
|---|---|---|---|---|
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
Charity information
Institute for Strategic Dialogue is a private company limited by guarantee incorporated in England and Wales. The registered office is PO Box 75769, London, SW1P 9ER.The members of the company are the Trustees named on legal and adminstrative page. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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)” (as amended for accounting periods commencing from 1 January 2019). The company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to support the current level of expenditure and to continue in operational existence for the foreseeable future.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the company.
1.4 Income
Income is recognised when the company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings 20% straight line method Fixtures and fittings 25% reducing balance method Computer and office eqipment 33.33% straight line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
1 Accounting policies
(Continued)
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3 Charitable activities
| Programmes Core Analysis by fund Unrestricted funds Restricted funds 4 Charitable activities Wages, salaries and consultants UK travel and hospitality Travel costs (staff) Travel costs (participants) Occupancy costs and room rental Outside professional services Communications and technology Grants and awards to other organisations Share of support costs (see note 6) Analysis by fund Unrestricted funds Restricted funds |
2022 £ 4,501,888 1,512,851 6,014,739 1,512,851 4,501,888 6,014,739 2022 £ 3,394,871 12,093 216,365 296,506 59,368 959,301 39,809 825,182 5,803,495 999,502 6,802,997 1,373,927 5,429,070 6,802,997 |
2021 £ 6,129,303 699,797 |
|---|---|---|
| 6,829,100 | ||
| 699,797 6,129,303 |
||
| 6,829,100 | ||
| 2021 £ 2,269,923 14,170 185,091 53,211 27,760 1,716,451 51,852 1,052,027 |
||
| 5,370,485 1,559,575 |
||
| 6,930,060 | ||
| 841,646 6,088,414 |
||
| 6,930,060 |
Direct Costs include the following:
Outside Professional Services: Includes technical and specialist consultants and suppliers such as filmmakers, content producers, educational resource specialists, trainers, researchers and translation services.
Communications and Technology: Includes telecommunications equipment, telephone calls, IT hardware, software, webhosting, social media and digital costs.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5 Grants and awards payable
| Grants and awards were paid to the following: ISD Germany ACT ISD USA Midrift Hurinet Limited Democracy Lab Youth Bila Noma WANA Institute Isiolo Peace Link Talented Youth Network (TYN) Individualland CZO Skopje Isiolo Women of Faith Roots Nakuru County Youth Bunge Forum Jamji Action Centre Tim Parry Johnathan Ball Foundation Sponsored Arts for Education (SAFE) Pastoralist Women (PWLS) HURIA CASM Technology LLP Human Security Collective Hedayah Hifswerk International Duckrabbit Resource Development Foundation Other |
2022 £ 362,795 94,780 87,724 58,087 57,021 33,691 31,825 29,762 18,652 13,563 7,017 6,357 5,474 5,336 5,333 2,997 2,733 2,035 - - - - - - - 825,182 |
2021 £ 449,330 43,800 - 61,833 43,968 29,538 171,334 85,802 - - 18,717 7,851 - 9,263 7,956 - 7,438 9,175 26,963 22,678 18,264 11,855 10,096 6,193 727 9,247 |
|---|---|---|
| 1,052,028 |
In respect of the year ended 31 December 2022, of the total grants paid of £825,182 (2021: £1,052,028), £262,630 (2021: £147,625) is attributable to unrestricted funds and £562,552 (2021: £904,403) is attributable to restricted funds.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6 Support costs
| Staff costs Loss on disposal of fixed assets UK travel and hospitality Travel costs (staff) Occupancy costs and room rental Outside professional services Office costs and communications Exchange loss/(gain) Depreciation Analysed between Charitable activities |
Support costs £ 392,915 6,591 881 4,401 322,701 181,005 60,419 (10,451) 41,040 999,502 999,502 |
2022 £ 392,915 6,591 881 4,401 322,701 181,005 60,419 (10,451) 41,040 999,502 999,502 |
Support costs £ 900,437 558 3,234 10,711 313,198 162,713 88,461 24,815 55,448 1,559,575 1,559,575 |
2021 £ 900,437 558 3,234 10,711 313,198 162,713 88,461 24,815 55,448 |
|---|---|---|---|---|
| 1,559,575 | ||||
| 1,559,575 |
In respect of the year ended 31 December 2022, of the total Exchange gain of £10,451 (2021: Loss £24,815), a gain of £1,040 (2021: Loss £18,249) is attributable to unrestricted funds and a gain of £9,411 (2021: Loss £6,566) is attributable to restricted funds.
Outside professional services costs include £20,000 (2021: £21,000) in respect of auditor's remuneration.
7 Auditor's remuneration
The analysis of auditor's remuneration is as follows:
| The analysis of auditor's remuneration is as follows: | ||
|---|---|---|
| Audit of the annual accounts All other non-audit services Total fees |
2022 £ 12,750 7,250 20,000 |
2021 £ 12,750 8,250 |
| 21,000 |
8 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the company during the year.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9 Employees
Number of employees
The average monthly number of employees during the year was:
| Employment costs Wages and salaries Social security costs Other pension costs |
2022 Number 51 2022 £ 2,535,786 290,714 109,599 2,936,099 |
2021 Number 48 |
|---|---|---|
| 2021 £ 2,223,322 218,301 90,770 |
||
| 2,532,393 |
Responsibility for day-to-day management matters and the implementation of policy is delegated to the Chief Executive Officer. Remuneration paid to the key management personnel of the charity in 2022 was £154,745 (2021: £150,208).
Of the employees whose emoluments exceed £60,000, 14 have retirement benefits accruing under defined contribution pension schemes, totaling £56,773 (2021: £42,811).
The number of employees whose annual remuneration was £60,000 or more were:
| 2022 | 2021 | |
|---|---|---|
| In the band £60,001 - £70,000 | 8 | 3 |
| In the band £70,001 - £80,000 | - | 1 |
| In the band £80,001 - £90,000 | 1 | - |
| In the band £90,001 - £100,000 | 1 | 1 |
| In the band £100,001 - £110,000 | 1 | - |
| In the band £130,001 - £140,000 | 1 | 1 |
10 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
| 11 Tangible fixed assets Cost At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation and impairment At 1 January 2022 Depreciation charged in the year Eliminated in respect of disposals At 31 December 2022 Carrying amount At 31 December 2022 At 31 December 2021 12 Debtors Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 13 Creditors: amounts falling due within one year Other taxation and social security Trade creditors Other creditors Accruals and deferred income |
Leasehold land and buildings Fixtures and fittings Computer and office eqipment £ £ £ 39,226 25,479 157,899 - - 23,094 - (4,692) (22,620) 39,226 20,787 158,373 21,623 16,666 116,516 7,845 5,197 27,998 - (3,526) (17,193) 29,468 18,337 127,321 9,758 2,450 31,052 17,603 8,813 41,382 2022 £ 688,737 68,356 342,923 1,100,016 2022 £ 94,854 254,072 36,947 179,400 565,273 |
Total £ 222,604 23,094 (27,312) 218,386 154,805 41,040 (20,719) 175,126 43,260 67,798 2021 £ 726,751 78,720 506,916 1,312,387 2021 £ 81,241 258,532 36,785 197,674 574,232 |
|---|---|---|
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
14 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds | Movement in funds | Movement in funds | Movement in funds | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Transfers | Balance at | Incoming | Resources | Transfers | Balance at | ||
| 1 | January 2021 | resources | expended | 1 January 2022 | resources | expended | 31 December | |||
| 2022 | ||||||||||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
| Restricted Funds | 1,377,356 | 6,129,303 | (6,088,414) | 16,779 | 1,435,024 | 4,501,888 | (5,429,070) | (28,377) | 479,465 |
Restricted funds are funds donated to the charity to aid its work as an independent 'think and do tank' for the study and development of policy and operational responses to the challenges of hate, polarisation and extremism.
The transfers from restricted funds to unrestricted funds totalling £28,377 (2021: £16,779) relate to activities and funds that have ceased to meet the conditions required for Institute for Strategic Dialogue to continue to retain these funds in restricted funds.
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INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022
15 Analysis of net assets between funds
| Analysis of net assets between funds | ||
|---|---|---|
| Unrestricted funds Restricted funds 2022 2022 £ £ Fund balances at 31 December 2022 are represented by: Tangible assets 43,260 - Current assets/(liabilities) 359,083 479,465 402,343 479,465 |
Total Unrestricted funds Restricted funds 2022 2021 2021 £ £ £ 43,260 67,798 - 838,548 167,244 1,435,024 881,808 235,042 1,435,024 |
Total 2021 £ 67,798 1,602,268 |
| 1,670,066 |
16 Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
| Within one year Between two and five years |
2022 £ 237,823 64,506 302,329 |
2021 £ 237,823 302,329 |
|---|---|---|
| 540,152 |
17 Related party transactions
Donations of £74,000 (2021: £60,049) were received during the year from the Trustees and from entities connected with the Trustees.
18 Cash generated from operations
| Cash generated from operations Deficit for the year Adjustments for: Loss on disposal of tangible fixed assets Depreciation and impairment of tangible fixed assets Movements in working capital: Decrease/(increase) in debtors (Decrease)/increase in creditors Cash absorbed by operations |
2022 £ (788,258) 6,591 41,040 212,371 (8,959) (537,215) |
2021 £ (100,960 558 55,449 (475,562 86,736 |
|---|---|---|
| (433,779 |
19 Analysis of changes in net funds
The company had no debt during the year.
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