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2021-12-31-accounts

Company number: 07679479 Charity number: 1145224

Big Change Charitable Trust

Report and financial statements For the year ended 31 December 2021

Big Change Charitable Trust

Contents

For the year ended 31 December 2021

For the year ended 31 December 2021
Reference and administrative information 1
Trustees’ annual report 2
Independent auditor’s report 14
Consolidated statement of financial activities 18
Balance sheet 19
Statement of cash flows 20
Notes to the financial statements 21

Big Change Charitable Trust

Reference and administrative information

For the year ended 31 December 2021

Company number 07679479 – incorporated in the United Kingdom Charity number 1145224 – registered in England and Wales Registered office 7 Savoy Court London WC2R 0EX Operational address The Battleship Building, 179 Harrow Road London W2 6NB Trustees, who are also directors under company law, who served during the Trustees year and up to the date of this report were as follows: P. Nevin Chair N. Duri (appointed 6 July 2021) H. K. T. Branson B. J. Hay A. Peacock (appointed 6 July 2021) D. Scott B. York H. Gordon (appointed 1 January 2021; resigned 14 February 2022) Key management Vanessa North Chief Executive Officer personnel Noah Devereux Managing Director (Until 1 December 2021) Noah Bernstein Chief Operating Officer Bankers Barclays Bank Leicester LE87 2BB Solicitors Harbottle and Lewis LLP 7 Savoy Court, London WC2R 0EX Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House, 108-114 Golden Lane London EC1Y 0TL

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

The Trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

1. Chair’s Report

Big Change was founded in 2012 to think differently about how charity can be a catalyst for positive longterm change for young people. Since then, we’ve become a small but disruptive force for change, and have developed a tried and tested model for our role as a catalyst.

2021 was a turbulent year. We saw the extraordinary resolve of the team shine through as we continued to operate in a constant state of uncertainty – the viability of in-person events, travel, and income streams. We ended the year with a collective sigh of relief, and a good dose of pride, in how we lent in to this crisis, and emerged stronger because of it. The organisation made the most of the challenges to create opportunities – capitalising on the moment to listen, learn and double down on the need for big change given both the disruption to ‘education as normal’ and the further exposure of gaps and symptoms that the status quo is failing so many young people.

Network & System

The Network and System team continued to build on our approach in working with allies across the sector to drive system change through three connected strands of work:

Each of these strands of work launched a publication as a platform for change from voices from the top leaders in global education to UK sector partners and the often-underserved voices of young people, parents, teachers, and employers. This work lays a very solid foundation for action and influence in 2022.

Development

We are incredibly grateful to the continued backing of some of our most loyal supporters (Strive Catalyst Circle, Joann McPike, Virgin Unite, to name a few) whose long term commitments helped see us through the uncertainty this year when in-person events remained difficult. The team effectively managed the uncertainty to both plan for short term adapted event income (Strive Weekender, Virtual Strive, Strive BVI) while accelerating our work on future income streams. Building on our greatest strengths, our growing credibility in backing pioneers, and our sector-leading work on system change we are engaging new and high-potential audiences. The success of Strive BVI at the end of year – both in terms of short-term fundraising, but also as a much-needed pipeline builder – has been a huge boost as we transition to more diverse income streams.

Impact

Following on from the Emergent Needs Fund in 2020, we backed six new projects in 2021, spread across a range of areas where there was both a clear need and opportunity for change (special educational needs; raising the profile and resource of extra-curricular; new models of joined-up leadership; youth-led engagement around measuring wellbeing; developing a long-term plan for UK education; and embedding a new sustainable country-wide curriculum in Wales).

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

We launched these projects while continuing support to our existing projects and conducted an impact review which revealed that, to date, Big Change projects have impacted the lives of 2.8 million young people across the UK. We continue to stay focused on how to build a pipeline of brilliant projects with representative leaders addressing critical challenges. 2022 will see us focus on incentivising change and big ideas through the launch of our Big Change Prize Fund.

Big Change’s finances recovered somewhat in 2021, with charitable income up 35% on 2020 to £1.38m, but still below pre-pandemic levels. Expenditure was reigned in to compensate for the reduced forecast income, resulting in a net surplus of £112k before net gains/losses on investments (as compared to a net loss of £534k in 2020). As the giving environment (hopefully) stabilises in 2022, Big Change is expected to significantly increase programme expenditure, most notably in the form of the above mentioned £1m Big Change Prize Fund.

From a governance perspective, we’re fortunate to have had two extraordinary new trustees join the Board, Dame Alison Peacock and Nyasha Duri, and hope to build out the Trustees – and Team – further in 2022.

For the coming year, our strategy is centred around three areas of work, with a focus on building on our solid foundations and proven model to increasingly work with partners to amplify our potential to catalyse big change:

With the world opening up, and the demand for system transformation (not reform) clearer than ever before, 2022 looks to be an exciting year for Big Change, one where a multitude of actors – from teachers to parents to employers and, of course, young people - are coming together to bring about real, lasting change.

Philip Nevin (Chair)

…………………………………… Date:

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

2. About Big Change

We want to see a society working together so that every young person is set up to thrive in life, not just exams.

By 2030 we aim to:

  1. Show a new way is possible – Pioneering approaches to supporting young people have become the new normal, and the learning experience of every child, no matter what their background or circumstance, sets them up with the agency and opportunity to thrive.

  2. Make education everyone’s business – All parts of society, including parents and employers, are actively involved in supporting young people and schools to thrive as part of learning ecosystems

  3. Create a new common sense – Wider society has accepted a new and expanded purpose for education, and key parts of the system have changed to support it.

We act as a catalyst for this change by:

Our model and approach to achieve this consists of three distinct but interlinked pillars - Insight, Action, and Support:

  1. Insight: We listen and learn with and from all parts of the system to understand what is needed to support reimagining education over the long-term.

  2. Action: We target our support to the most critical opportunity areas by finding and backing the leaders with big vision to help them prove a new way is both possible and powerful.

  3. Support: We activate a network of people and organisations who power this change through individual effort and collective action.

For more information please see big-change.org, our 10 Hopes for Change or our Change is Happening impact review.

3. Our Projects

Big Change will only happen if we do things differently, which is why we fund in the areas where there is critical need, we have a unique opportunity to add value and that, if changed, could have a broader systemic impact.

When considering projects, we are particularly interested in the following key criteria:

  1. Does the applicant have a bold ambition for system change, with the potential to significantly impact on the broader sector? What is the unique and disruptive insight that can really change the way things are done?

  2. Does the idea focus on positive growth: would the project clearly support young people to unlock their potential, and make a real difference?

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

  1. Does the proposal demonstrate that there is a clear and compelling need? Is there a clear benefit to the education/youth development sector in the UK, and would the project have support from sector experts and other practitioners?

  2. Do the team have passionate leadership: are the right people in place with the expertise and experience to fulfil their big ambition?

  3. Is the project a good fit for Big Change: can we add significant value to the project?

With the above in mind, we launched our 2021 grant allocation process, with up to £300,000 in available funding for aligned project partners. The applications needed to score well on the criteria listed above, as well as demonstrate alignment with our 10 Big Hopes for Change in Education.

We solicited applications from a number of people and organisations who were part of our pipeline development and high-quality referral network. Each submitted an expression of interest and, if successful, a subsequent detailed proposal was assessed, both internally and by an invited Impact Council of sector experts and Trustees (see Section 5, Grant Making Policy).

Of the £250k available, £234k was allocated to 6 projects over a period of two years. Of this amount, £100k was disbursed in 2021, with the remainder (£134k) designated for 2022.

An additional £172k was disbursed in 2021 to partners from the 2019 and 2020 project cohorts. An additional project, Tranquiliti, from our 2020 cohort, was funded as a specific one-off by one of our funders and was awarded £25k in 2021.

This brings the total of funds distributed to Big Change project partners in 2021 to £296,634 (£100k to new 2021 project partners, the remaining £197k to previous cohorts).

Details of all funded projects are as follows:

2021 Cohort

CHILDREN’S UNIVERSITY TRUST (£19,000 awarded in 2021)

Children’s University Trust works in partnership with schools across the UK to develop a love of learning by encouraging participation in quality-assured extracurricular activities in and outside of school.

We supported staff time for the CEO and Head of Comms to engage in advocacy and campaigning work to increase resource, visibility and access for learning outside the classroom.

NO LIMITS (via Gesher Trust) (£25,000 awarded in 2021)

Led by Gesher Trust, an established leader in working with children with special educational needs and disabilities, NoLimits will create a new evidence-based model of teaching and learning, and a community of practice for secondary school students that is academically rigorous and showcase it in other SEN learning communities.

We supported the creation of NoLimits by funding Gesher's Director of Rigour, Director of Curation, and Community of Practice Lead to get the group off the ground.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

CYMBROGI FUTURES (£21,000 awarded in 2021)

Cymbrogi Futures is a programme in its pilot stage; designing unique learning journeys for both educators and young people to empower them to take on their futures with confidence. Their suite of programmes includes both online and residential programmes (hosted on their natural site) focused on their ‘Core Four’: sustainability, wellbeing, creative skills and collaboration.

We funded staff time required to get these pilot programs off the ground, including the Program Director and learning designer.

JOINED UP (via Reach Foundation) (£20,000 awarded in 2021)

JoinedUp is collaboration of award-winning and trusted organisations - Frontline, UK Youth, Reach Foundation, and Dixon Academies Trust - that will bring together school leaders, social workers and youth workers to better support disadvantaged children and young people across the UK.

We funded the staff time necessary to facilitate the network building and learning activities that will help identify and seek to address barriers to working in this 'joined up' way, locally and nationally.

FOUNDATION FOR EDUCATION DEVELOPMENT (£5,000 awarded in 2021)

The FED has been set up to address the problem of the short-term nature of education policy. It is an independent organisation that can bring together stakeholders from all sides and sectors to build on the wisdom and experience of policy makers, practitioners, and all interested parties.

Big Change funded a Workstream Director to oversee the delivery of four workstreams, including a vision and purpose for a 10-year plan for education and the structures and governance for this plan, for 12 months.

BEEWELL MANCHESTER (via the University of Manchester) (£10,000 awarded in 2021)

BeeWell, a consortium of The University of Manchester and the Anna Freud Centre, in partnership with the Greater Manchester Combined Authority, will oversee the delivery of an annual survey, co-created with young people, to assess the wellbeing (and the factors that influence wellbeing) of young people in Years 8 to 10 in up to 250 secondary schools across Greater Manchester over three academic years.

Big Change contributed £20,000 to pot of funding that will be the commissioning budget for #BeeWell’s young commissioners, who will use the survey results to commission work to improve wellbeing outcomes.

TRANQUILITI (£25,000 awarded in 2021)

Tranquiliti is a new, digital service that looks to place the voice of every young person at the heart of their school. Central to their service is a question-set which asks young people about their wellbeing, mental health, and experiences at school. They support tailored early intervention and positive culture change in schools, as well as more effective signposting for young people onto the support they need most.

In 2021, via a specific donation from a Foundation tied to Tranquiliti, we supported the founders’ time, plus development costs, to roll out the pilot of this service.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

2020 Cohort

CENTRE FOR PLACE BASED TRANSFORMATION (via Right to Succeed) (£19,334 awarded in 2021 from 2020 grant of £58,000)

Right to Succeed is a youth organization that exists to equip every child with the skills, wellbeing and access to opportunity to thrive from childhood to adulthood.

Big Change supported the staff costs associated with setting up the Centre for Place Based Transformation, a new approach to place-based community projects, demonstrating the power and value of place-based change and local learning ecosystems through both targeted, locally-led pilots and unlocking political will and funding at a government level to adopt an approach the place-based work that blends private, public and philanthropic involvement.

SHiFT UK (formerly Whatever it Takes)

(£12,500 awarded in 2021 from 2020 grant of £30,000)

SHiFT exists to break the destructive cycle of offending behaviours in children enabling them to enjoy lives of choice and opportunity. SHiFT’s model offers a radical blueprint for challenging the way services are designed and delivered that will produce dramatically improved outcomes at significantly lower costs.

Big Change funded the activities that will generate the impact, evidence and learning that would help SHiFT’s approach scale across the sector.

PARENT PING (via Education Intelligence) (£2,800 awarded in 2021)

Parent Ping is a daily survey app that helps parents learn how other parents are dealing with life by sharing experiences, gathering and sharing data on what’s happening, and to meld together education and parent data in a way that has never been done before.

In 2021, Big Change topped up Parent Ping's original grant (£40,000 in 2020) to cover the reporting costs for the pilot of an in-school research and recruitment program of parents of secondary school children.

2019 Cohort

LIGHTHOUSE (via Catch-22 Charity Ltd.)

(£77,000 awarded in 2021 from 2019 grant of £154,000)

Lighthouse will ensure that care leavers are viewed as an asset rather than a cost to society. They believe that residential care should be seen as an opportunity for the young person placed in it, not a failure, and aim to make a big change for children in care with a brand-new kind of children’s home based on successful German and Danish methods of practice.

Big Change funded the full-time salaries of a Head of Influence and Impact and a Partnerships Manager for 2 years.

REKINDLE SCHOOL

(£30,000 top up awarded in 2021, following on from 2019 grant of £49,700) Rekindle is a supplementary school for 13-16 year-olds in South Manchester, at risk of mainstream and school exclusion, those struggling with motivation at school, or whose families are struggling to provide support. It offers a wraparound programme of learning, support, mentoring, business engagement, topical masterclasses and career development.

Big Change has provided the seed funding to cover the core costs associated with setting up the program.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

IMPACTED LIMITED (£30,000 awarded in 2021, from 2019 grant of £120,000)

ImpactEd is developing England first teacher-led evidence and action-research platform to help teachers and school leaders identify what is working best in their context and on more than grades alone.

Big Change funded the core salary costs associated with delivering across 3 workstreams: testing and experimentation, building a coalition, and sector learning and dissemination.

4. Financial Review

Operating budget and grant making

We are grateful to Virgin Unite, the Greenslade Family Foundation, and our Catalyst Circle members for supporting Big Change operating expenditure in 2021. Their grants covered the majority of operating expenditure, which totalled £687,364 (which includes staff costs, general expenses and other overhead costs).

During the course of the year Big Change received in-kind donations amounting to £144,799 (2020: £162,566). The Trustees would like to thank Virgin Management Limited for providing donations in-kind of office space, IT support and professional services such as finance and taxation advice; and Arnold & Porter Kaye Scholer LLP for providing extensive pro bono legal support via Thomson Reuters’ Trust Law service.

During the year the cost of charitable activities was £1,375,128 (2020: £1,483,786). This includes direct grants to institutions and research totalling £678,450 (2020: £893,159) as highlighted in Section 3, Our Impact.

For the 12-month period ending 31 December 2021, income (before net gains/losses on investments) exceeded costs by £116,324 (2020: costs exceeded income (before net gains/losses on investments) by £534,464). Total income, including trading income and in-kind donations, was £2,178,984 (2020: £1,199,038) which comprised mainly charitable donations (including in-kind donations) of £1,527,512 (2020: £1,190,236). Consolidated unrestricted reserves increased during the period to £2,609,378 (2020: £2,398,428).

Going concern and reserves policy

The Board of Trustees are of the opinion that, despite the COVID-19 pandemic and its implications on short and long-term fundraising, Big Change Charitable Trust has adequate resources to continue in operational existence for the foreseeable future. The Board of Trustees have identified no material uncertainties that cast significant doubt about the Big Change Charitable Trust to continue as a going concern.

At 31 December 2021, the Trustees' reserves policy is that Big Change should retain in the form of either cash or contracted income, at all times, (a) at least 12 months of working capital based on predicted known operating costs, and (b) the total amount allocated to current project partners through grant agreements. The Trustees have judged this level as appropriate given Big Change’s liabilities, assets, and staffing structure. It is also appropriate given our two-yearly fundraising cycle.

At the end of 2021, Big Change held £1,090,000 in reserves to account for designated project grants and projected operating costs. Our projected grant making over the next three years is accounted for separately in respect of our reserves policy and will be covered by income raised from our community of supporters.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

5. Grant making policy

Trustees approve all grants at the Trustee meetings that take place throughout the year (one every quarter) and grant applications must be approved by all Trustees to be successful. In anticipation of these meetings, an initial assessment and due diligence is undertaken by key management and operational personnel prior to the preparation of an assessment report for consideration by the Trustees in advance of the meeting.

1. Initial application

Applicants submit an initial one-page grant proposal and if management team agree, ask proposers to submit an expanded grant proposal.

2. Due Diligence and Assessment Report

Management will identify the Applicant and whether it is appropriate for Big Change to be involved with this Applicant through:

Management then:

3. Grant decision

The assessment report is sent to Trustees for contemplation in advance of the meeting at which they are considering the grant applications. At the meeting, the Trustees analyse the grant based on all of the relevant elements of the report and, if appropriate, approve the grant during the meeting.

4. Monitoring after approval and payment of the grant, Big Change management:

6. Related party transactions

In all instances where Big Change is potentially involved in a related party transaction, Trustees ensure that we not only act in the best interests of the charity by checking costs against the market but where applicable, also ensuring that Big Change is not licensing rights for less than their market rate. Details of the related party transactions are in note 9 to the accounts.

All Trustees and Staff are required to declare any conflicts of interest on an ongoing basis. When a conflict of interest is discovered or brought to the attention of the Leadership Team (LT) it is added to the Conflict of Interest register and then forwarded to the Chair of the Big Change Board of Trustees for consideration. The Chair then consults with his fellow Trustees and provides guidance and/or a mitigation strategy to the LT.

7. Structure, governance & management

The organisation is a charitable company limited by guarantee, incorporated on 22 June 2011, and registered as a charity on 23 December 2011.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

The organisation was established under a memorandum of association, as amended by special resolutions on 10 December 2011 and 21 December 2011, which established the objects and powers of the organisation and is governed under its articles of association.

All Trustees give their time voluntarily and receive no benefits from the charity. No Trustees were reimbursed for any expenses incurred during the year. The Board of Trustees meet at least three times a year and the Charity is empowered to delegate its powers to the Committees of Trustees.

Typically, the charity's senior management team is present at the meetings of the Board of Trustees and, when appropriate, the Chair of the Board of Trustees is in regular contact with senior management. Day-today decisions are made by senior management and where necessary referred to the Board of Trustees for approval.

8. The appointment and recruitment of Trustees

The Trustees are responsible for the recruitment of new Trustees, which they carry out in light of the existing balance of skills and experiences of the Board. Before their appointment, all new Trustees attend an induction programme in order for them to properly undertake and fulfil their responsibilities to the Charity. The induction process ensures new Trustees meet existing Trustees and members of the Senior Management team.

9. Objectives and activities

The Trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work within the last twelve months. The Trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the Trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

The Trust’s objects are:

(a) the promotion of participation in healthy recreation in particular by the provision of facilities for the playing of sports;

(b) to assist in such ways as the charity Trustees think fit any charity whose aims include advancing education of persons under the age of 25 years by developing their mental, physical and moral capabilities through leisure time activities;

(d) to act as a resource for young people up to the age of 25 years by providing advice and assistance and organising programmes of physical, educational and other activities as a means of:

(i) advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals; (ii) advancing education;

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

(iii) relieving unemployment; and

(iv) providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons;

(e) to assist in the treatment and care of persons suffering from mental or physical illness of any description or in need of rehabilitation as a result of such illness, by the provision of facilities for work and recreation and through the provision of financial assistance, support, education and practical advice;

(f) the relief and assistance of people in any part of the world who are the victims of war or natural disaster, trouble, or catastrophe; and

(g) such charitable purposes for the public benefit as are exclusively charitable according to the laws of England and Wales as the Trustees may from time to time determine.

10. Risk management

The Trustees regularly discuss and review the key risks to the charity and identify mitigation strategies during their Trustee meetings. The Trustees are satisfied that the key risks to the organisation are mitigated during the current year. Below is a list of the principle risks or uncertainties that management and Trustees have identified, along with info on how the organisation is managing them:

Big Change recognises our key risks and mitigation actions as follows:

Risk Mitigatingaction
1.1 –Financial: Macro-economic conditions
(pandemic, war, recession) impact the organisation’s
ability to raise funds in the short and long-term.		 •Adjusting fundraising approach to seize
opportunities as the situation evolves.
• Adapting expenditure approach when necessary to
maintain adequate reserves position.
1.2 -Reputational: Big Change receives donations
from a number of donors and there is a risk of
receiving funds from inappropriate sources.		 • Ensure that adequate due diligence is carried out
on all potential big gift donors;
• Maintain clear paper trails for all donations
received.
1.3 -Charitable: Big Change grants funds to a
number of different organisations and there is a risk
that money is spent inappropriately.		 • Ensure that grantees are reporting back to Big
Change per grant agreements.
• Management and Impact team to keep in regular
contact with grantees;

The Trustees are satisfied that the key risks to the organisation are identified and that appropriate strategies are in place to manage them in the current year.

Statement on fundraising practice

The Trust does not use professional fundraisers or commercial participators to raise funds. The Trust nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations (2020: none) and codes and the Trust received no complaints (2020: none) relating to its fundraising practice.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

11. Investment powers and policy

Under the Memorandum and Articles of Association, the Charity has the power to invest in any way the Trustees wish. During the year to 31 December 2020 the organisation adopted an Investment Policy (housed within Big Change’s Treasury Management Policy) that, once ratified by the Trustees, was used to guide the investment of operational reserves with the organisation’s nominated investment management firm. The policy includes general provisions, as well as the organisation’s investment objectives, attitude towards risk, ethical investment priorities, and management reporting and approval processes. Additional financial details can be found in Note 11 of the annual accounts.

During the year to 31 December 2021 the charity’s portfolio returned performance of 8.9% net of all fees, costs and charges. This contrasts with the return from the ARC PCI GBP Cautious index which returned 4.2%, again net of fees, costs, and charges. This shows we are ahead of the ARC index for the short term and are meeting the investment objective in the longer term to outperform the relevant index.

The downturn in global markets at the beginning of 2022 has impacted the charity’s investments. At the end of July 2022, Big Change's investments have decreased in value by 11% since year end. However, at date of signing the total portfolio value, net of fees, costs, and charges, is greater than at inception, and the Trustees are confident in its further growth over the long-term.

12. Remuneration policy

The management team comprise the key management personnel of the charity, in charge of directing and controlling, running and operating the charity on a day to day basis. The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. The charity benchmarks against pay levels in other similar organisations. All pay raises, as well as bonuses, are determined by the Board of Trustees after a formal end-of-year evaluation. Consensus must be reached before any pay rise or other form of compensation is awarded.

13. Statement of responsibilities of the Trustees

The Trustees (who are also directors of Big Change Charitable Trust for the purposes of company law) are responsible for preparing the Trustees’ annual 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 charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2021

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

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

The Trustees’ annual report has been approved by the Trustees on 29 July 2022 and signed on their behalf by:

P Nevin D Scott Chair of Trustees Trustee

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Independent auditor’s report

To the members of

Big Change Charitable Trust

Opinion

We have audited the financial statements of Big Change Charitable Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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Independent auditor’s report

To the members of

Big Change Charitable Trust

Other information

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

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

15

Independent auditor’s report

To the members of

Big Change Charitable Trust

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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

Capability of the audit in detecting irregularities

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

16

Independent auditor’s report

To the members of

Big Change Charitable Trust

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

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Noelia Serrano (Senior statutory auditor) Date: 14 September 2022 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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

17

Big Change Charitable Trust

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

For the year ended 31 December 2021

2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations and legacies 2 1,220,269 307,243 1,527,512 1,097,736 92,500 1,190,236
Other trading activities 3 601,749 - 601,749 - - -
Investments 28,760 - 28,760 8,802 - 8,802
Other incoming resources 20,963 - 20,963 - - -
Total income 1,871,741 307,243 2,178,984 1,106,538 92,500 1,199,038
Expenditure on:
Raising funds
Cost of fundraising 173,276 - 173,276 246,633 - 246,633
Costs of trading 514,256 - 514,256 3,083 - 3,083
Charitable activities
Impact 544,911 136,656 681,567 866,621 92,500 959,121
Community 336,906 72,657 409,563 335,492 - 335,492
System 211,341 72,657 283,998 189,173 - 189,173
Total expenditure 4a 1,780,690 281,970 2,062,660 1,641,002 92,500 1,733,502
Net
income/(expenditure)		 before net 91,051 25,273 116,324 (534,464) - (534,464)
gains/(losses) on investments
Net gains on investments 89,399 - 89,399 30,225 - 30,225
Net income/(expenditure) for the year 6
180,450 25,273 205,723 (504,239) - (504,239)
Transfers between funds 30,500 (30,500) - - - -
Net movement in funds 210,950 (5,227) 205,723 (504,239) - (504,239)
Reconciliation of funds:
Total funds brought forward 2,398,428 17,500 2,415,928 2,902,667 17,500 2,920,167
Total funds carried forward 2,609,378 12,273 2,621,651 2,398,428 17,500 2,415,928

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17 to the financial statements.

18

Big Change Charitable Trust

Company no. 07679479

Balance sheets

As at 31 December 2021

As at 31 December 2021
Balance sheets		 Company no. 07679479 Company no. 07679479
Note
Fixed assets:
11
Current assets:
13
Liabilities:
14
16a
17a
Total unrestricted funds
Investments
Cash at bank and in hand
Short term cash deposit
Creditors: amounts falling due within one year
Net current assets
Total net assets
Funds:
Restricted income funds
Unrestricted income funds:
General funds
Non-charitable trading funds
Designated funds
Total funds
Debtors		 2021
2020
£
£
1,103,212
768,280
1,103,212
768,280
91,969
76,745
1,083,415
1,318,298
782,320
512,485
1,957,704
1,907,528
439,265
259,880
1,518,439
1,647,648
2,621,651
2,415,928
12,273
17,500
2,474,007
2,281,206
1,371
(2,362)
134,000
119,584
2,609,378
2,398,428
2,621,651
2,415,928
The group		 2021
2020
£
£
1,103,213
768,281
1,103,213
768,281
105,201
8,842
1,083,415
1,318,298
379,246
408,751
1,567,862
1,735,891
50,795
85,883
1,517,067
1,650,007
2,620,280
2,418,289
12,273
17,500
2,474,007
2,281,205
-
-
134,000
119,584
2,608,007
2,400,789
2,620,280
2,418,289
The charity
1,103,212
91,969
1,083,415
782,320		 768,280
76,745
1,318,298
512,485		 1,103,213
105,201
1,083,415
379,246		 768,281
8,842
1,318,298
408,751
1,957,704
439,265		 1,907,528
259,880		 1,567,862
50,795		 1,735,891
85,883
1,518,439 1,647,648 1,517,067 1,650,007
2,621,651 2,415,928 2,620,280 2,418,289
12,273
2,474,007
1,371
134,000		 17,500
2,281,206
(2,362)
119,584		 12,273
2,474,007
-
134,000		 17,500
2,281,205
-
119,584
2,609,378 2,398,428 2,608,007 2,400,789
2,621,651 2,415,928 2,620,280 2,418,289

Approved by the Trustees on 29 July 2022 and signed on their behalf by

P Nevin Chair of Trustees

D. Scott Trustee

19

Big Change Charitable Trust

Consolidated statement of cash flows

For the year ended 31 December 2021

For theyear ended 31 December 2021 For theyear ended 31 December 2021
Note
2021
£
Net income/(expenditure) for the reporting period
205,723
(as per the statement of financial activities)
(Gains) on investments
11
(89,399)
Dividends, interest and rent from investments
11
(28,760)
(Increase)/decrease in debtors
13
(15,223)
Increase in creditors
14
179,385
Net cash provided by operating activities
11
213,120
11
(393,605)
Dividends, interest and rent from investments
11
28,760
Movement within cash held by investment managers
11
(65,048)
Decrease/(increase) in short term cash deposits
234,883
Net cash provided by / (used in) investing activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Cash flows from investing activities:
Proceeds from sale of investments
Purchase of investments		 2021
£
251,725		 2020
£
(504,239)
(30,225)
(8,802)
438,309
212,211		 2020
£
107,255
213,120
(393,605)
28,760
(65,048)
234,883		 219,551
(280,862)
8,802
64,328
(420,323)
18,110 (408,504)
269,835
512,485		 (301,250)
813,735
782,320 512,485

20

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

a) Statutory information

Big Change Charitable Trust is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address is 7 Savoy Court, London, WC2R 0EX.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

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

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

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

d) Going concern

The Board of Trustees are of the opinion that, despite the COVID-19 pandemic and its implications on short and long-term fundraising, Big Change Charitable Trust has adequate resources to continue in operational existence for the foreseeable future. The Trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. See Page 8 of Annual Report for further detail.

e) Income

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

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

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

21

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

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

Designated funds are defined as grant payments the charity is reasonably certain will be paid to grantees (as per the payment schedule) prior to the date of the signing of the accounts.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

22

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities in line with the proportion of staff time dedicated to fundraising activities.

20% 80%

l) Tangible fixed assets

m) Investments in subsidiaries

Investments in subsidiaries are at cost.

Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

n) Debtors

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

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors and provisions

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.

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

23

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

Donated services
Charitable Donations		 Unrestricted
£
144,799
1,075,470		 Restricted
£
-
307,243		 2021
Total
£
144,799
1,382,713		 Unrestricted
£
162,566
935,170		 Restricted
£
-
92,500		 2020
Total
£
162,566
1,027,670
1,220,269 307,243 1,527,512 1,097,736 92,500 1,190,236

The donated goods and services consisted of (1) office space, IT support and professional services such as finance and taxation advice provided by Virgin Management Limited throughout the period; (2) pro bono legal support provided by Arnold and Porter Kaye Scholer LLP via Thomson Reuters’ Trust Law service.

3 Income from other trading activities

Income from other trading activities
Entry Fees (events inc. STRIVE) 2021
Total
£
601,749		 2020
Total
£
-
601,749 -

All income from other trading activities is unrestricted.

24

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

Staff costs (Note 7)
Events - Cost of trading
Marketing
Research and Content
Office and Premises costs
General Expenses
Legal and Professional
Investment Management Fees
Tax payable by subsidiaries
Grants awarded (note 5)
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Cost of
raising
funds
£
77,139
514,256
10,388
-
-
586
-
16,140
876
-		 Charitable activities Charitable activities Charitable activities Governance
costs
£
48,474
-
-
-
-
-
20,702
-
-
-		 Support
costs
£
58,333
-
1,039
-
124,535
87,653
-
-
-
-		 2021 Total
£
584,886
514,256
20,775
381,816
124,535
88,239
34,503
16,140
876
296,634		 2020
Total
£
603,248
3,083
4,777
199,353
128,129
36,352
53,811
11,819
(876)
693,806
Impact
£
163,682
-
3,116
127,272
-
-
-
-
-
296,634		 Community
£
174,511
-
3,116
127,272
-
-
13,801
-
-
-		 System
£
62,747
-
3,116
127,272
-
-
-
-
-
-
619,385
54,312
13,835		 590,704
72,416
18,447		 318,700
72,416
18,447		 193,135
72,416
18,447		 69,176
-
(69,176)		 271,560
(271,560)
-		 2,062,660
-
-		 1,733,502
-
687,532 681,567 409,563 283,998 - - 2,062,660 1,733,502
249,716 959,121 335,492 189,173 - -

25

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

4b Analysis of expenditure (prior year)

Staff costs (Note 7)
Events - Cost of trading
Marketing
Research and Content
Office and Premises costs
General Expenses
Legal and Professional
Investment Management Fees
Legal and Professional
Tax payable by subsidiaries
Grants awarded (note 5)
Support costs
Governance costs
Total expenditure 2020		 Cost of
raising
funds
£
77,205
3,083
2,387
-
-
381
-
11,819
-
(876)
-
93,999		 Charitable activities Charitable activities Charitable activities Governance
costs
£
47,436
-
-
-
-
-
-
-
30,513
-
-
77,949		 Support
costs
£
66,183
-
239
-
128,129
35,971
2,958
-
-
-
-
233,480		 2020 Total
£
603,248
3,083
4,777
199,353
128,129
36,352
2,958
11,819
50,853
(876)
693,806
1,733,502
Impact
£
146,243
-
717
66,451
-
-
-
-
-
-
693,806
907,217		 Community
£
196,080
-
717
66,451
-
-
-
-
20,340
-
-
283,588		 System
£
70,101
-
717
66,451
-
-
-
-
-
-
-
137,269
116,741
38,976		 38,913
12,991		 38,913
12,991		 38,913
12,991		 -
(77,949)		 (233,480)
-		 -
-
249,716 959,121 335,492 189,173 - - 1,733,502

26

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

5
For the year ended 31 December 2021
Grant making
BeeWell Manchester (via the University of Manchester)
Big Leadership Adventure (via Big Education Trust)
Centre for Place Based Transformation via Right to Succeed
Children's University Trust
Communicolour (formally ICE, via Wellspring Academy Trust)
Cymbrogi Futures
EasyPeasy via Character Counts
Education Exchange via The Chartered College of Teaching
Foundation for Education Development
HeadsUp via InspirEDucate
ImpactEd Limited
Institute for Public Policy Research
Joined Up (via Reach Foundation)
Learning from Lockdown (via Big Education Trust)
Lighthouse (via Catch-22 Charity Ltd.)
No Limits (via Gesher Trust)
Parent Ping (via Education Intelligence)
Rekindle School (via Northern Soul Consultancy)
SHiFT UK (formerly Whatever it Takes)
The Difference
The Relationships Foundation
Tranquiliti
Voice 21 via School 21 Foundation
Reconciliation of movements in grant creditors
Brought forward grant creditor
Add: Grants awarded in the year
Less: Grants paid in the year
Carried forward grant creditor (note 14)
6
Auditor's remuneration (excluding VAT):
Audit - under accrual from prior year
Audit
Net incoming/(outgoing) resources for the year
This is stated after charging:
Trustees' indemnity insurance
Total		 2021
£
10,000
-
19,334
19,000
-
21,000
-
-
5,000
-
30,000
-
20,000
-
77,000
25,000
2,800
30,000
12,500
-
-
25,000
-		 2020
£
-
56,823
38,666
-
30,000
-
54,417
95,000
-
24,900
60,000
2,500
-
25,000
35,000
-
40,000
27,000
17,500
91,500
28,000
50,000
17,500
296,634 693,806
2021
£
27,500
296,634
(299,134)		 2,020
£
-
693,806
(666,306)
25,000 27,500
2021
£
586
7,000
-		 2,020
£
381
6,700
840

27

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

Staff costs were as follows:

Staff costs were as follows:
Pension contributions
Social security costs
Salaries and wages		 2021
£
507,573
54,630
22,683		 2,020
£
520,556
59,071
23,621
584,886 603,248

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

2021 2020
No. No.
£60,000 - £69,999 - 1
£70,000 - £79,999 1 1
£80,000 - £89,999 2 2

The total employee benefits including pension contributions and employer's national insurance of the key management personnel were £285,843 (2020: £293,776).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £nil) incurred by 0 (2020: 0) members relating to attendance at meetings of the trustees.

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:


follows:
Kickstart
Governance and Support
Community
Cost of Raising funds
Impact
System		 2021
No.
2.0
1.0
2.0
2.0
2.0
1.3		 2020
No.
2.0
1.0
2.0
2.0
2.0
-
10.3 9.0

28

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

9 Related party transactions

During the year legal fees of £1,052 (Trust; 2020 £nil) and £685 (Trading; 2020 £nil) were paid to Harbottle and Lewis LLP in respect of legal services provided to the charity in connection with secretarial duties. David Scott is a trustee of the charity and a partner in Harbottle and Lewis LLP. Harbottle and Lewis LLP do not charge for the time David spends providing services as a trustee. At 31 December 2021 there were no amounts outstanding between the charity and Harbottle and Lewis LLP.

Virgin Management Limited have provided the charity with office space including administrative services at no cost. This has been recognised as a donated service both within income and expenditure, valued at £138,580 (2020: £128,129). During the year H. Branson and H. Gordon (resigned 14 February 2022) were trustees of Big Change and employed by Virgin Management Limited.

Virgin Unite has provided the charity with an unrestricted grant of £230,000 (2020: £230,000) to cover the core costs of the charity. H. Branson is a trustee of Big Change and is Chairperson of Virgin Unite.

During the course of the year there were no donations made to Big Change by its trustees (2020: total £7,585)

A total of £394,561 was paid to Virgin Limited Edition (VLE) for exclusive use of Necker Island during the annual Strive event. This was inclusive of a 25% discount, and paid via the Trading account. VLE is a subsidiary of Virgin Management Limited and the balance outstanding from Big Change Trading Limited to VLE at the balance sheet date was £181,226.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Big Change Trading Limited distributes available profits under gift aid to the parent charity. Its charge to corporation tax in the year was:

Deferred Tax (Asset)/Liability
As at 1 January 2021
Income statement charge/(credit)
As at 31 December 2021
Effects of:
Total tax charge
Income not taxable
UK corporation tax at 19%
Profit/(Loss) on ordinary activities before taxation
Adjustments in respect to prior year
Tax on results on ordinary activities
Recognised deferred tax assets and liabilities
Deferred tax (assets) and liabilities are attributable to the following:
Losses		 2021
£
76,081
14,455
-
(13,579)		 2019
£
(4,608)
(876)
-
-
876 (876)
876 (876)
2021
£
-		 2021
£
(876)
- (876)
2021
£
(876)
876
-

29

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

For the year ended 31 December 2021
11
Investments comprise:
Unlisted shares in UK registered companies
Disposal proceeds
Movement within cash held by investment
managers
Fair value at the end of the year
Net gain on change in fair value
Cash
Listed investments
Investments
Fair value at the start of the year
Additions at cost		 2021
£
768,280
393,605
(213,120)
89,399
65,048
The		 2020
£
741,072
280,862
(219,551)
30,225
(64,328)
group		 2021
2020
£
£
768,281
741,073
393,605
280,862
(213,120)
(219,551)
89,399
30,225
65,048
(64,328)
1,103,213
768,281
2021
2020
£
£
1
1
71,747
6,699
1,031,465
761,581
1,103,213
768,281
The charity
The charity
1,103,212 768,280 1,103,213 768,281
2021
£
-
71,747
1,031,465
The		 2020
£
-
6,699
761,581
group
1,103,212 768,280 1,103,213 768,281

30

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

12 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of Big Change Trading Limited, a company registered in England (company number 07998643). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

Retained earnings
Profit for the financial year
Retained earnings brought forward
Distribution under gift aid to parent undertaking
Retained earnings carried forward
The aggregate of the assets, liabilities and funds was:
Capital and retained earnings
Cost of Sales
Parent charity
Profit/(loss) on ordinary activities before taxation
Taxation
Profit/(loss) for the financial year
Turnover
Assets
Liabilities		 2021
£
601,749
(525,668)		 2020
£
-
(4,608)
76,081
(876)		 (4,608)
876
75,205 (3,732)
(2,362)
75,205
(71,473)		 1,370
(3,732)
-
1,370 (2,362)
476,206
(474,835)		 174,637
(176,998)
1,371 (2,361)

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

13
Deferred tax asset
Amounts owed by Subsidiary
Gross income
Result for the year
Accrued income
Debtors
Trade debtors
Prepayments and Other debtors		 2021
£
-
91,969
-
-
-
The		 2020
£
5,500
70,028
341
-
876
group		 2021
£
1,663,600
201,991		 2020
£
1,190,236
(505,114)
91,969 76,745 105,201 8,842

31

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals
Deferred income (note 15)
Grant Creditors (note 5)		 2021
£
258,830
25,000
23,435
132,000
The		 2020
£
6,343
27,500
11,126
214,911
group		 2021
2020
£
£
2,360
6,257
25,000
27,500
23,435
11,126
-
41,000
;
50,795
85,883
The charity
439,265 259,880 50,795 85,883

15 Deferred income

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
£
214,911
(82,911)
-
The		 2020
£
-
-
214,911
group		 2021
2020
£
£
41,000
-
(41,000)
-
-
41,000
-
41,000
The charity		 2021
2020
£
£
41,000
-
(41,000)
-
-
41,000
-
41,000
The charity
132,000 214,911 - 41,000

Deferred income is comprised of event entry fees that have been ported over to the next financial year when the events will take place and then be counted as income.

16a Analysis of group net assets between funds (current year)

Fixed asset investments
Net assets at 31 December 2021
Net current assets		 General
unrestricted
£
1,103,212
1,372,166		 Designated
funds
£
-
134,000		 Restricted
funds
£
-
12,273		 Total funds
£
1,103,212
1,518,439
2,475,378 134,000 12,273 2,621,651

16b Analysis of group net assets between funds (prior year)

Fixed asset investments
Net assets at 31 December 2020
Net current assets		 General
unrestricted
£
768,280
1,510,564		 Designated
funds
£
-
119,584		 Restricted
funds
£
-
17,500		 Total funds
£
768,280
1,647,648
2,278,844 119,584 17,500 2,415,928

32

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2021

Restricted Funds
General funds
Designated funds
Total funds		 At 1 January
2021
£
17,500
2,278,844
119,584		 Income &
gains
£
307,243
1,961,140
-		 Expenditure &
losses
£
(281,970)
(1,548,056)
(232,634)		 Transfers
£
(30,500)
(216,550)
247,050		 At 31
December
2021
£
12,273
2,475,378
134,000
2,415,928 2,268,383 (2,062,660) - 2,621,651

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

Restricted funds: in 2021 Big Change received eleven separate donations from eight donors totalling £293,000 that were restricted to specific projects. £25,500 of the total was allocated to the Tranquiliti project, £25,000 to Shift UK, £25,000 to Children's University Trust, £7,500 to the Rekindle project, £14,243 to the Global Network project, and £210,000 to the Co-mission project from 5 separate donors.

The transfers shown include a total of £30,500 of expenditure transferred from designated to restricted funds. This represents expenditure on specific projects classified as designated expenditure in prior years, now reclassified as restricted expenditure within the same project.

Designated funds are described in the Note 1h.

17b Movements in funds (prior year)

At 1 January
2020
£
17,500
2,419,600
483,067		 Income &
gains
£
92,500
1,136,763
-		 Expenditure &
losses
£
(92,500)
(947,196)
(693,806)		 Transfers
£
-
(330,323)
330,323		 At 31
December
2020
£
17,500
2,278,844
119,584
2,920,167

18 Legal status of the charity

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

33