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2022-12-31-accounts

Company number: 07679479 Charity number: 1145224

Big Change Charitable Trust

Report and financial statements For the year ended 31 December 2022

Big Change Charitable Trust

Contents

Contents
For the year ended 31 December 2022
Reference and administrative information 1
Trustees’ annual report 2
Independent auditor’s report 13
Consolidated statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20

Big Change Charitable Trust

Reference and administrative information

For the year ended 31 December 2022

Company number 07679479 – incorporated in the United Kingdom 07679479 – incorporated in the United Kingdom
Charity number 1145224 – registered in England and Wales
Registered office 7 Savoy Court
London
WC2R 0EX
Operational address 66 Porchester Road, London, W2 6ET
Trustees Trustees, who are also directors under company law, who served during the
year and up to the date of this report were as follows:
P. Nevin Chair
N. Duri
H. K. T. Branson
B. J. Hay
A. Peacock
D. Scott
B. York
H. Gordon (resigned 14 February 2022)
Key management Vanessa North Chief Executive Officer
personnel Noah Bernstein Chief Operating Officer (left 18 May 2023 )
Bankers Barclays Bank
Leicester
LE87 2BB
Solicitors Harbottle and Lewis LLP
7 Savoy Court, London
WC2R 0EX
Auditor Godfrey Wilson Ltd
5th Floor, Mariner House
62 Prince Street
Bristol
BS1 4QD

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

The Trustees present their report and the audited financial statements for the year ended 31 December 2022.

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 rethink how charity can be a catalyst for change in how we support all young people to thrive in life, not just in exams. 2022 marks ten years of finding and backing bold ideas for change. In that time we have backed 60 projects, positively impacted the lives of 8 million young people, supported over 200 thousand teachers, parents, carers and adults working with young people and unlocked over £60m in follow-on funding.

Emerging from the COVID period which brought both turbulence and opportunity, 2022 has been a year of evolution and momentum building. We have been focused on three areas of work that demonstrate our ability to convene, catalyse change and put young people at the heart of what we do.

Identifying and supporting bold ideas in the UK

Alongside a limited grant allocation process in 2022, we designed and launched our Big Education Challenge . This £1m prize fund builds on our 10 years of grantmaking experience and is set to support and reward young people and experienced innovators who have bold ideas with the potential to transform education and learning in the UK. Designed to incentivise change from the bottom up, the prize aims to surface and support often underrepresented leaders from across the UK. In 2023, we will announce the 15 finalists who will receive both financial and capacity building support, then select the winners at the end of the year.

Generating global insights to transform, not just improve, education systems

Our collective insight report A New Education Story (NES) was the anchor for successful partnerships with global allies around the need for transformation in education and learning by shifting purpose, power and practice. From Salzburg and Singapore to the UN Transforming Education Summit this simple but powerful framework has achieved buy-in and influence beyond our expectations and has connected with thought leaders, funders and changemakers across the world. In 2023, we will continue a partnership with Salzburg Global Seminar to convene intergenerational leaders in a series of co-action summits focused on enabling transformative change.

Empowering young people and the public to set a new direction for learning

Through Subject to Change we created a wealth of insight about public demand for change in education. In 2022 we focused our efforts on Big Education Conversation (BEC) to support inclusive and intergenerational conversations about the purpose of education that can create a shared vision and ideas for the future. In 2023, we will be working with existing and new partners to support BEC to happen in their context (with Big Change leading in the UK and working with local partners in 11 countries around the world). Building on successful prior partnership we will work with IPPR to share national insights and data to inform both practice and policy conversations.

Projects

Through a limited grant allocation process we backed new projects in 2022 that are addressing some of the key levers for change identified through our learning. Their focus spans from rethinking what and how we measure success (Big Education/Rethinking Assessment) and wellbeing (BeeWell and Tranquiliti), to joined up approaches for teaching and learning (London Interdisciplinary School) and how we create change with and for local communities (The Centre for Place Based Transformation). We are proud of the insight and leadership these projects represent and look forward to working closely with them going forward.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

Finances

Big Change’s charitable income was up 74% compared to 2021 at £2.65m as we returned to pre-pandemic levels on our traditional fundraising and built new income streams in 2022. This puts us in a healthy position after the uncertainty of Covid and the related disruptions we saw in 2020/2021. We are incredibly grateful to the ongoing support of our Catalyst Circle (Virgin Unite, the Strive Catalyst Circle as well as Joann McPike and new HNW donors) for their funding of our core costs which have enabled us to continue to lean in to the opportunities of our catalytic role alongside sector allies as well as challenge and evolve our own model of funding.

Our Strive Challenge events continue to provide a solid foundation to our income and also generate deep and trusted relationships with existing and new donors. We saw some income from our American Friends of Big Change for the 2021 Strive BVI as well as income from our 2022 Strive Kenya. 2022 has seen us work with a number of new partners supporting some key areas of our system change work. Paul Hamlyn Foundation and Blagrave Trust have supported our increased focus on youth leadership and intergenerational collaboration and Lego Foundation have been a key partner in the evolution and global launch of the Big Education Conversation at the UN Transforming Education summit.

Our impact work in 2022 was a combination of backing five projects, designing and launching the new model of The Big Education Challenge, partnering with allies around system change and activating a community of philanthropists to support transformation. Our expenditure on charitable activities was £1,823,298 (total 2022 expenditure: £2,277,569). The first round of funding for the Big Education Challenge finalists will be coming in 2023.

With the increased recognition at a global level of the need for transformation in education and learning we are hopeful that the conversation is changing. 2023 looks to be an exciting year for Big Change as we launch our first finalists of the Big Education Challenge and learn together with communities and leaders on a mission to work together so all young people are set up to thrive in life.

Philip Nevin (Chair)

Philip Nevin

…………………………………… Date:

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

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. PURPOSE - Wider society embraces a new, expanded purpose for education (thriving) and key parts of the system have changed to support it (e.g. policy, funding).

  2. POWER - Young people are agents of change and all parts of society (e.g. parents,educators, employers) are supporting young people to learn and thrive.

  3. PRACTICE - Bold, pioneering approaches show that a new way is possible in setting up the next generation with the agency and opportunities to learn and thrive.

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, and our New Education Story.

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:

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

  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?

  3. 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?

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

  5. 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 2022 grant allocation process, with up to £250,000 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).

The total funds awarded to Big Change projects in 2022 was £234,059 across both the 2022 and prior year cohorts. A closing balance of £80,916 is held in designated funds for specific grants that are expected to be distributed in future years.

Details of all funded projects are as follows:

2021 Cohort

CHILDREN’S UNIVERSITY TRUST (£27,000 awarded in 2022)

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.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

NO LIMITS (via Gesher Trust) (£25,000 awarded in 2022)

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.

CYMBROGI FUTURES

(£43,000 awarded in 2022)

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 2022)

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 2022)

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.

2022 Cohort

TRANQUILITI (£19,975 awarded in 2022)

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 2022

CENTRE FOR PLACE BASED TRANSFORMATION (via Right to Succeed)

(£8,334 awarded in 2022 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 to place-based work that blends private, public and philanthropic involvement.

BIG EDUCATION TRUST (£65,750 awarded in 2022 of total grant of £100,000)

Big Education is the incubator for Rethinking Assessment. We have funded Rethinking Assessment’s Learner Profile’s project. They have been learning from, and building on, best practices around the world to design an approach to assessment that helps every young person to thrive. Working on practical ideas and approaches to be piloted in schools, they have identified a powerful way forward: Learner Profiles. Drawing on work underway in the USA and Australia in particular.

Rethinking Assessment’s vision is for every young person to put together a Learner Profile during their 14 year learning journey, including evidence of what they can do, what they have achieved, the story of their learning and a portfolio of their best work.

Young people will start creating their Learner Profile at school, topping it up as they go to demonstrate a range of achievements and show the breadth of their knowledge and capabilities. The profile will give universities, training providers and employers real information about the young person’s competencies in crucial skills and provide a rounded picture that goes beyond a set of exam numbers and letters. We're funding the launch of the learner profiles.

THE LONDON INTERDISCIPLINARY SCHOOL (£20,000 awarded in 2022 of total grant of £40,000)

The London Interdisciplinary School has been awarded a grant to develop and roll out an interdisciplinary programme in schools for students in KS5. The programme will centre around three distinct areas: complex problems, interdisciplinary learning and careers. Their long-term vision is to ensure that interdisciplinary (ID) learning is embedded within the curriculum at all levels and that an ID experience is a prerequisite for an outstanding school.

Their grant will be used toward staffing, development and implementation of the programme in schools.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

4. Financial Review

Operating budget and grant making

We are grateful to Virgin Unite and our Catalyst Circle members for supporting Big Change operating expenditure in 2022. Operating expenditure totalled £1,007,123 (this includes staff costs, general expenses and other overhead costs).

During the course of the year Big Change received in-kind donations amounting to £161,830. 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 DLA Piper for providing extensive pro bono legal support via Thomson Reuters’ Trust Law service.

During the year the cost of charitable activities was £1,823,298 (2021: £1,375,128). This includes finding and backing impact projects totalling £819,109 (2021: £681,567) as highlighted in Section 3, Our Impact.

For the 12-month period ending 31 December 2022, income (before net gains/(losses) on investments) exceeded costs by £722,637 (2021: income exceeded costs (before net gains/(losses) on investments) by £116,324). Total income, including Trading income and in-kind donations, was £3,000,206 (2021: £2,178,984) which comprised mainly charitable donations (including in-kind donations) of £2,652,199 (2021: £1,527,512). Consolidated unrestricted reserves increased during the period to £3,097,821 (2021: £2,609,378).

Going concern and reserves policy

The Board of Trustees are of the opinion that 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 2022, 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 2022, Big Change held £1,250,000 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.

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.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

  1. 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:

  2. an assessment of compliance with applicable laws and regulations, track record, charitable status etc; and

  3. a review of information in the public domain (e.g. applicant’s website, Companies House, Charity Commission website, online news sources) to check for any environmental, social, business integrity, reputational or legal controversy relating to the Applicant.

Management then:

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.

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. 9

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

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;

(c) to advance in life and help young people especially but not exclusively through:

(i) the provision of recreational and leisure time activities provided in the interest of social welfare, designed to improve their conditions of life; and

(ii) providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals;

(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;

(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

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

(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 information on how the organisation is managing them:

Big Change recognises our key risks and mitigation actions as follows

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

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 (2021: none) and codes and the Trust received no complaints (2021: none) relating to its fundraising practice.

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.

Since inception, the charity’s portfolio returned performance of 6.4% 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.

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Big Change Charitable Trust

Trustees’ annual report

For the year ended 31 December 2022

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:

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 4th July, 2023 and signed on their behalf by:

Philip Nevin

P Nevin Chair of Trustees

D W Scott

D Scott Trustee

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Independent auditor’s report

To the trustees of

Big Change Charitable Trust

Opinion

We have audited the financial statements of Big Change Charitable Trust (the 'charity') for the year ended 31 December 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related 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 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:

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 charity 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 charity'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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Independent auditor’s report

To the trustees of

Big Change Charitable Trust

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees 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 they 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

14

Independent auditor’s report

To the trustees of

Big Change Charitable Trust

Our responsibilities for the audit of the financial statements

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

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. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

15

Independent auditor’s report

To the trustees of

Big Change Charitable Trust

Use of our report

This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

5 July 2023

Alison Godfrey

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

16

Big Change Charitable Trust

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

For the year ended 31 December 2022

Note
Income from:
2
3
Investments
Other incoming resources
4a
6
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds
Raising funds
Net income/(expenditure) for the year
Total expenditure
Net
income/(expenditure)
before
net
gains/(losses) on investments
Charitable activities
Impact
Community
System
Net gains/(losses) on investments
Cost of fundraising
Costs of trading
Total income
Expenditure on:
Donations and legacies
Other trading activities		 Unrestricted
£
2,320,218
312,000
34,997
1,010
2,668,225
166,032
288,239
701,770
489,178
412,283
2,057,502
610,723
(122,280)
488,443
-
488,443
2,609,378
3,097,821		 Restricted
£
331,981
-
-
-
331,981
-
-
117,339
51,364
51,364
220,067
111,914
-
111,914
-
111,914
12,273
124,187		 2022
Total
£
2,652,199
312,000
34,997
1,010
3,000,206
166,032
288,239
819,109
540,542
463,647
2,277,569
722,637
(122,280)
600,357
-
600,357
2,621,651
3,222,008		 Unrestricted
£
1,220,269
601,749
28,760
20,963
1,871,741
173,276
514,256
544,911
336,906
211,341
1,780,690
91,051
89,399
180,450
30,500
210,950
2,398,428
2,609,378		 Restricted
£
307,243
-
-
-
307,243
-
-
136,656
72,657
72,657
281,970
25,273
-
25,273
(30,500)
(5,227)
17,500
12,273		 2021
Total
£
1,527,512
601,749
28,760
20,963
2,178,984
173,276
514,256
681,567
409,563
283,998
2,062,660
116,324
89,399
205,723
-
205,723
2,415,928
2,621,651

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.

17

Big Change Charitable Trust

Company no. 07679479

Balance sheets

As at 31 December 2022

----- Start of picture text -----
The group The charity
2022 2021 2022 2021
Note £ £ £ £
Fixed assets:
Investments 11 979,860 1,103,212 979,861 1,103,213
979,860 1,103,212 979,861 1,103,213
Current assets:
Debtors 13 281,669 91,969 52,397 105,201
Short term cash deposit 1,714,947 1,083,415 1,714,947 1,083,415
Cash at bank and in hand 888,530 782,320 536,149 379,246
2,885,146 1,957,704 2,303,493 1,567,862
Liabilities:
Creditors: amounts falling due within one year 14 642,998 439,265 62,716 50,795
Net current assets 2,242,148 1,518,439 2,240,777 1,517,067
Total net assets 16a 3,222,008 2,621,651 3,220,638 2,620,280
Funds: 17a
Restricted income funds 124,187 12,273 124,187 12,273
Unrestricted income funds:
General funds 3,015,535 2,474,007 3,015,535 2,474,007
- -
Non-charitable trading funds 1,370 1,371
Designated funds 80,916 134,000 80,916 134,000
Total unrestricted funds 3,097,821 2,609,378 3,096,451 2,608,007
Total funds 3,222,008 2,621,651 3,220,638 2,620,280
----- End of picture text -----

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

Approved by the Trustees on 4 July 2023 and signed on their behalf by

Philip Nevin

D W Scott

P Nevin D. Scott Chair of Trustees Trustee

18

Big Change Charitable Trust

Consolidated statement of cash flows

For the year ended 31 December 2022

----- Start of picture text -----
Note 2022 2022 2021 2021
£ £ £ £
Cash flows from operating activities
Net income/(expenditure) for the reporting period 600,357 205,723
(as per the statement of financial activities)
(Gains)/losses on investments 11 122,280 (89,399)
Dividends, interest and rent from investments (34,997) (28,760)
(Increase)/decrease in debtors 13 (189,700) (15,223)
Increase in creditors 14 203,733 179,385
Net cash provided by operating activities 701,673 251,725
Cash flows from investing activities:
Proceeds from sale of investments 11 391,398 213,120
Purchase of investments 11 (427,086) (393,605)
Dividends, interest and rent from investments 34,997 28,760
Movement within cash held by investment managers 11 36,760 (65,048)
Decrease/(increase) in short term cash deposits (631,532) 234,883
Net cash provided by / (used in) investing activities (595,463) 18,110
Change in cash and cash equivalents in the year 106,210 269,835
Cash and cash equivalents at the beginning of the year 782,320 512,485
Cash and cash equivalents at the end of the year 888,530 782,320
----- End of picture text -----

19

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

1 Accounting policies

a) Statutory information

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 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.

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.

Trading events income is measured at the fair value of the consideration received or receivable and is recognised when the event takes place.

20

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

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

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

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.

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

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

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, but do not meet the criteria for recognition as a liability or provision at the balance sheet date.

i) Expenditure and irrecoverable VAT

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

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.

21

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

k) Allocation of support costs

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.

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.

Cost of fundraising 20.0%
Cost of trading 0.0%
Charitable activities: impact 26.7%
Charitable activities: community 26.7%
Charitable activities: system 26.7%

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £3,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

m) Investments in subsidiaries

Investments in subsidiaries are at cost.

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.

o) 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.

p) Short term deposits

Short term cash deposits consist of cash held on deposit in interest bearing accounts. Such investments are measured at their fair value

q) Cash at bank and in hand

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.

r) 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.

22

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

1 Accounting policies (continued)

s) 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.

t) Pension costs

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid, the charity has no further payment obligations.

The amounts charged in the Statement of Financial Activities for defined contribution pension schemes represent the contributions payable in the period. The assets of the plan are held in independently administed funds, so are not included in the assets of the charity.

23

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

Donated services
Charitable donations		 Unrestricted
£
161,830
2,158,388
2,320,218		 Restricted
£
-
331,981
331,981		 2022
Total
£
161,830
2,490,369
2,652,199		 Unrestricted
£
144,799
1,075,470
1,220,269		 Restricted
£
-
307,243
307,243		 2021
Total
£
144,799
1,382,713
1,527,512

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 DLA Piper.

Entry fees (events inc. STRIVE) 2022
Total
£
312,000
312,000		 2021
Total
£
601,749
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 2022 4a Analysis of expenditure (current 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
Tax payable by subsidiaries
Grants awarded (note 5)
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021		 Cost of
fundraising
Cost of
trading
£
58,739
-
-
288,239
3,263
-
-
-
-
-
7,660
-
586
-
16,799
-
-
-
-
-
87,047
288,239
65,405
-
13,580
-
166,032
288,239
173,276
514,256
Cost of raising funds		 Impact
Community
£
£
278,150
208,233
-
-
979
979
187,664
187,664
-
-
12,945
24,581
-
13,773
-
-
-
-
234,059
-
713,797
435,230
87,207
87,207
18,105
18,105
819,109
540,542
681,567
409,563
Charitable activitie		 System
£
147,949
-
979
187,664
-
21,743
-
-
-
-
358,335
87,207
18,105
463,647
283,998
s		 Governance
costs
£
47,236
-
-
-
-
-
20,659
-
-
-
67,895
-
(67,895)
-
-		 Support
costs
£
82,893
-
326
-
148,792
95,015
-
-
-
-
327,026
(327,026)
-
-
-		 2022 Total
£
823,200
288,239
6,526
562,992
148,792
161,944
35,018
16,799
-
234,059
2,277,569
-
-
2,277,569		 2021
Total
£
584,886
514,256
20,775
381,816
124,535
88,239
34,503
16,140
876
296,634
2,062,660
-
2,062,660

25

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022 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
Tax payable by subsidiaries
Grants awarded (note 5)
Support costs
Governance costs
Total expenditure 2021		 Cost of
fundraising
Cost of
trading
£
77,139
514,256
10,388
-
-
586
-
16,140
876
-
105,129
514,256
54,312
-
13,835
-
173,276
514,256
Cost of raising funds		 Impact
Community
System
£
£
£
163,682
174,511
62,747
-
-
-
3,116
3,116
3,116
127,272
127,272
127,272
-
-
-
-
-
-
-
13,801
-
-
-
-
-
-
-
296,634
-
-
590,704
318,700
193,135
72,416
72,416
72,416
18,447
18,447
18,447
681,567
409,563
283,998
Charitable activities		 Governance
costs
£
48,474
-
-
-
-
-
20,702
-
-
-
69,176
-
(69,176)
-		 Support
costs
£
58,333
-
1,039
-
124,535
87,653
-
-
-
-
271,560
(271,560)
-
-		 2021 Total
£
584,886
514,256
20,775
381,816
124,535
88,239
34,503
16,140
876
296,634
2,062,660
-
-
2,062,660

26

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

#BeeWell Manchester (via the University of Manchester)
Big Education Trust
Centre for Place Based Transformation via Right to Succeed
Children's University Trust
Cymbrogi Futures
Foundation for Education Development
ImpactEd Limited
Joined Up (via Reach Foundation)
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 London Interdisciplinary School
Tranquiliti
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)
Auditor's remuneration (excluding VAT):
Audit - over accrual from prior year
Audit
Net incoming/(outgoing) resources for the year
This is stated after charging:
Trustees' indemnity insurance
Total		 2022
£
-
65,750
8,334
27,000
43,000
5,000
-
20,000
-
25,000
-
-
-
20,000
19,975
234,059
2022
£
25,000
234,059
(259,059)
-
2022
£
586
8,400
(180)		 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
296,634
2021
£
27,500
296,634
(299,134)
25,000
2021
£
586
7,000
-

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Social security costs
Salaries and wages
Pension contributions		 2022
£
710,177
84,211
28,812
823,200		 2021
£
507,573
54,630
22,683
584,886

27

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

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

2022 2021
No. No.
£60,000 - £69,999 - -
£70,000 - £79,999 1 1
£80,000 - £89,999 - 2
£90,000 - £99,999 2 -

The total employee benefits including pension contributions and employer's national insurance of the key management personnel were £237,869 (2021: £285,843).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2021: £nil) incurred by 0 (2021: 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:

Kickstart
Governance and Support
Community
Cost of Raising funds
Impact
System		 2022
No.
1.0
4.0
4.0
2.0
2.0
-
13.0		 2021
No.
2.0
1.0
2.0
2.0
2.0
1.3
10.3

9 Related party transactions

During the year legal fees of £1,917 (Trust; 2021 £1,052) and £349 (Trading; 2021 £685) 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 2022 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 £150,508 (2021: £138,580). During the year H. Branson was a trustee of Big Change and was also employed by Virgin Management Limited.

Virgin Unite has provided the charity with an unrestricted grant of £110,000 (2021: £230,000) to cover the core costs of the charity. In addition, a £140,000 grant was received in relation to Pioneer's Prize. H. Branson is a trustee of Big Change and is also a Trustee of Virgin Unite.

During the course of the year there were no donations made to Big Change by its trustees (2021: £nil).

A total of £240,769 was paid to Virgin Limited Edition (VLE) for exclusive use of Necker Island during the annual Strive event (2021: £394,561). 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 £nil.

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

28

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

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:

2022
2021
£
£
1,103,212
768,280
427,086
393,605
(391,398)
(213,120)
(122,280)
89,399
(36,760)
65,048
979,860
1,103,212
2022
2021
£
£
-
-
33,733
71,747
946,127
1,031,465
979,860
1,103,212
Disposal proceeds
Movement within cash held by investment
managers
Fair value at the end of the year
Net (loss)/gain on change in fair value
Effects of:
Investments comprise:
The group
Unlisted shares in UK registered companies
Income tax expense reported in the income statement
Income not taxable
Profit/(loss) before tax multiplied by standard rate of corporation tax in the UK of
19.00% (2021 - 19.00%)
Profit/(Loss) on ordinary activities before taxation
Adjustments in respect to prior year
Cash
Listed investments
The group
Investments
Fair value at the start of the year
Additions at cost		 2022
2021
£
£
27,678
76,081
5,259
14,455
-
-
(5,259)
(13,579)
-
876
2022
2021
£
£
1,103,213
768,281
427,086
393,605
(391,398)
(213,120)
(122,280)
89,399
(36,760)
65,048
979,861
1,103,213
2022
2021
£
£
1
1
33,733
71,747
946,127
1,031,465
979,861
1,103,213
The charity
The charity

29

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

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
Distribution under gift aid to parent undertaking
The aggregate of the assets, liabilities and funds was:
Cost of Sales
Parent charity
Profit/(loss) on ordinary activities before taxation
Taxation
Profit/(loss) for the financial year
Retained earnings carried forward
Turnover
Assets
Liabilities
Retained earnings brought forward
Capital and retained earnings		 2022
£
312,000
(284,322)
27,678
-
27,678
1,370
27,678
(27,678)
1,370
634,050
(632,679)
1,371		 2021
£
601,749
(525,668)
76,081
(876)
75,205
(2,362)
75,205
(71,473)
1,370
476,206
(474,835)
1,371

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

13
Amounts owed by Subsidiary
Gross income
Result for the year
Debtors
Trade debtors
Prepayments and Other debtors		 2022
£
80,918
200,751
-
281,669
The		 2021
£
-
91,969
-
91,969
group		 2022
2021
£
£
2,725,712
1,663,600
600,357
201,991
2022
2021
£
£
-
-
-
18,837
52,397
86,364
52,397
105,201
The charity

30

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

14 Creditors: amounts falling due within one year

Accruals
Deferred income (note 15)
Other payables
Grant Creditors (note 5)
Trade creditors		 2022
£
170,333
-
50,885
417,500
4,280
642,998
The		 2021
£
258,830
25,000
23,435
132,000
-
439,265
group		 2022
2021
£
£
15,052
2,360
-
25,000
43,384
23,435
-
-
4,280
-
62,716
50,795
The charity

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		 2022
£
132,000
(12,000)
347,500
417,500
The		 2021
£
214,911
(82,911)
-
132,000
group		 2022
2021
£
£
-
41,000
-
(41,000)
-
-
-
-
The charity

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)

General
unrestricted
£
979,860
2,037,045
3,016,905
General
unrestricted
£
1,103,212
1,372,166
2,475,378
Fixed asset investments
Analysis of group net assets between funds (prior year)
Net current assets
Net current assets
Fixed asset investments
Net assets at 31 December 2022
Net assets at 31 December 2021		 Designated
funds
£
-
80,916
80,916
Designated
funds
£
-
134,000
134,000		 Restricted
funds
£
-
124,187
124,187
Restricted
funds
£
-
12,273
12,273		 Total funds
£
979,860
2,242,148
3,222,008
Total funds
£
1,103,212
1,518,439
2,621,651

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

31

Big Change Charitable Trust

Notes to the financial statements

For the year ended 31 December 2022

17a Movements in funds (current year)

Restricted Funds
General funds
Designated funds
Total funds		 At 1 January
2022
£
12,273
2,475,378
134,000
2,621,651		 Income
£
331,981
2,668,225
-
3,000,206		 Expenditure
£
(220,067)
(1,869,418)
(188,084)
(2,277,569)		 Gains, losses
and transfers
£
-
(257,280)
135,000
(122,280)		 At 31
December
2022
£
124,187
3,016,905
80,916
3,222,008

Restricted funds: in 2022 Big Change received donations totalling £331,981 that were restricted to specific projects. £19,975 of the total was allocated to the Tranquiliti project, £40,000 to Joined Up, £12,000 to Big Education Challenge, £39,006 to Global Learning Alliance, £140,000 to Pioneer's Prize, £51,000 to Big Education Conversation, and £30,000 to the Co-mission project.

Gains, losses and transfers includes a total of £135,000 of funds transferred from unrestricted to designated funds, leaving a closing balance of £80,916 in designated funds. This represents grant payments the charity is reasonably certain will be paid to grantees (as per the payment schedule), but do not meet the criteria for recognition as a liability or provision at the balance sheet date.

17b Movements in funds (prior year)

Restricted Funds
General funds
Designated funds
Total funds		 At 1 January
2021
£
17,500
2,278,844
119,584
2,415,928		 Income
£
307,243
1,871,741
-
2,178,984		 Expenditure
£
(281,970)
(1,548,056)
(232,634)
(2,062,660)		 Gains, losses
and transfers
£
(30,500)
(127,151)
247,050
89,399		 At 31
December
2021
£
12,273
2,475,378
134,000
2,621,651

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.

32