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2021-12-31-accounts

DKMS Foundation ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDING 31 DECEMBER 2021

Our Vision:

To delete blood cancer.

Our Mission:

To give as many blood cancer patients as possible a second chance at life.

Our Purpose:

To raise awareness of blood cancer and blood disorders, recruit and retain potential blood stem cell donors to provide a second chance at life, raise funds to match donor registration costs, and improve blood cancer therapies by our own research.

Contents

Trustee’s introduction 3
Achievements 4
DKMS donor contribution 6
Stem cell donor recruitment 8
The power of partnerships 11
Achieving success during unprecedented times 12
Fundraising in 2021 14
Success stories 18
Trustees’ Report 20
Independent auditors’ report to the members and Trustees of DKMS Foundation 26
Financial statements 29
Reference and administrative details 48

2

Trustee’s introduction

As we began to emerge from the early stages of the pandemic, navigating the continued ripple effects on our services caused by Covid-19 and the changing priorities in the UK and international healthcare systems, one thing remains unchanged: blood cancer continues to have a profound and debilitating effect on the lives of people from all communities. Therefore, throughout 2021 DKMS continued to do everything possible to overcome obstacles and unforeseen circumstances and deliver the best services possible for patients who found themselves in need of a blood stem cell transplant.

As a strategically-critical arm of a global organisation, DKMS UK was able to continue to deliver essential life-saving services and expand upon a foundation that will provide for patients for years to come. By continuing to recruit and register a diverse pool of potential blood stem cell donors and arrange blood stem cell donations, DKMS has been able to provide treatment to those in need and hope to the innumerable friends and family who fear for their loved ones. Despite the challenging circumstances, DKMS remained firm in their promise to never settle for anything less than the best when it comes to serving our patients and donors.

a global pandemic, you will be pleased to learn we still added nearly 90,000 people to the UK blood stem cell donor register, moving ever closer to one million available donors. The importance of new donors was reinforced by the nearly 350 blood stem cell donations that DKMS helped arrange during the year, a record number for the UK. We draw deep inspiration from this achievement, not simply for the sum total, but rather from the knowledge that each and every donation represents a second chance at life for a patient in the UK or around the world.

As always, an enormous debt of thanks is owed to our blood stem cell donors, volunteers, and fundraising supporters who have all worked closely with our committed staff to overcome seemingly insurmountable obstacles and achieve remarkable things. Their dedication and passion for the cause ensures that we never take no as an answer.

Beyond the maintenance of day-today operations, DKMS also continued to evolve and develop successfully as an organisation during the course of 2021. Though it was difficult to register as many new potential stem cell donors as in previous years, due to limited opportunities to run faceto-face recruitment events and the inevitable shift of public focus during

Stephan Schumacher

Trustee DKMS Foundation

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339
second chances at life Livia found a donor through DKMS
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Achievements

During 2021 we continued to work in line with the key priorities established in 2019, which will guide our work through to 2023. We reviewed and reconfirmed our priorities to ensure focus remained on delivering the best and most innovative services and support for our incredible blood stem cell donors, fundraisers, volunteers and patients.

Saving more lives

2021 was a record-breaking year for DKMS UK, with the organisation’s donors and staff helping to give 339 second chances at life via blood stem cell donations – a massive increase from the 273 achieved in 2020. Last year, DKMS globally facilitated stem cell transplants for 527 UK patients, with 98 donations coming from DKMS UK.

This accomplishment is a real testament to the passion, commitment, and fortitude of our donors. So many of them were willing to overcome challenging situations, often related to fast-changing pandemic health or travel restrictions, to selflessly donate their stem cells to those in need.

Increasing the number of lives that can be saved is absolutely dependent on continuing to build the donor pool by recruiting new people to the UK stem cell donor register. A further 87,000 new potential donors were registered, bringing us close to 900,000 total donors since DKMS first started working in the UK.

We hope to reach our first million registrations in 2022.

It costs DKMS £40 to register each donor, so fundraising is pivotal to our continuing to do more for patients with blood cancer.

By growing our fundraising income, we will be able to register more donors and give more people with blood cancer a second chance at life.

Better chances for those who have fewer chances

During 2021, an external agency was commissioned to research the needs of racial and ethnic minority communities, with a focus on how best to engage, build, and maintain better relationships with these groups. This will improve our work with transplant patients and help target blood stem cell donor recruitment from selected communities, including from South Asian, African, and Caribbean groups. The research findings have provided us with the knowledge and tools to more effectively communicate with these communities.

The best support for donors

Major steps were taken to improve the journey for our blood stem cell donors, supporters, and stakeholders. Some of the more significant changes include:

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Achievements (Continued)

Increasing our Income

The successes of 2021, including the increase in our blood stem cell donation services, reductions in costs and efficiency savings, have moved DKMS UK closer to a position of being sustainable. However, this is still not enough.

We want to increase income so we can support more blood stem cell donations and transplants, including in countries such as India and South Africa where there is currently no donor register or where access to transplantation is limited due to high costs, limited availability of qualified clinicians, or both.

Building a community of support

Building a vibrant community of committed and engaged support for DKMS UK is vital to achieving our long-term goals. With this goal in mind, we were pleased to take major steps forward during 2021. A new volunteer development programme was launched to better support existing volunteers, recruit new ones, and establish volunteering hubs in different areas of the UK. All of these efforts will continue to further blood stem cell donor recruitment and fundraising initiatives, while increasing engagement with our passionate and dedicated volunteers.

Fundraising supporters exceeded our expectations over the last year, with more and more people taking part in community and challenge events, finding new and creative ways in which to support our work. We continue to be deeply grateful for their committed efforts, which have been above and beyond what we could hope for.

Relationships were built and strengthened with new and existing companies that support our work, continuing strong collaborations with over 60 businesses into the new year.

We were glad to have the opportunity to work more closely with a number of stem cell collection centres and their clinicians to prepare for growth in future years.

Ultimately, none of this year’s achievements would be possible without a committed and talented staff. Therefore, staff welfare, care, and support were prioritised in the organisation’s plans.

Due to the ongoing and unprecedented volume of work, we are exceptionally proud that during the pandemic no staff were furloughed and that employees have been able to migrate to a more flexible hybrid office-home working environment that is coming into fuller effect during 2022.

Digital frst

The desire to digitise more of DKMS’ processes remains as strong as ever and 2021 saw significant improvements across the organisation. We have transitioned to more systems becoming digital or automated, including reducing physical postage, automating key notifications, and using online platforms for core services or support. The year ahead offers bigger opportunities, as e-registration for faceto-face donor recruitment events will be introduced.

Not only do these changes improve the quality of our work, they also bring operational efficiencies and reduce our carbon footprint.

~£800k raised from fundraising work

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Donor contribution, globally and locally

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Global breakdown of where DKMS UK sends stem cells
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81 98 135 6
North UK Europe Asia
America
1 16
2
Africa Oceania
South
America
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DKMS UK Collections DKMS UK Collections DKMS UK Collections
by donor age by donor gender by donor ethnicity
7% 1% 33% 54% 7% 81%
51-59 18-20 21-30 Male ROW BINE
18% 41% 46% 9% 3%
41-50 31-40 Female South-Central African
Asian Caribbean
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British, Irish and Northern European *Minority Ethnic Backgrounds Source for all data in this section: DKMS UK 2021 Donor Collections

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Contribution to the Aligned Stem Cell Registry

The UK’s aligned stem cell registry is made up of donors recruited by Anthony Nolan, DKMS, NHS Blood and Transplant and the Welsh Blood Service. The registry coordinates requests for UK donors from both national and international transplant hospitals.

Aligned Stem Cell Registry and DKMS UK donors by ethnicity

2020/1 (registry)
April 2021 DKMS
BINE*
1,658,500
623,730
MEB**
268,000
236,990
Unknown
151,000
13,323
Total
2,105,000
874,043

Registered donors in the UK Aligned Stem Cell Registry 2021

69k 847k

WBMDR*** Anthony Nolan

Chart shows the number of registered potential blood stem cell donors.

375k 835k NHSBT**** DKMS

***WBMDR: Welsh Bone Marrow Donor Registry

****NHSBT: NHS Blood and Transplant Source for all data in this section: State of the Registry report 2021

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2,000 requested a home swab kit for Libby

Stem cell donor recruitment

Remaining patient-centric

We launched a programme to further engage patients and patient families with our work. The programme started with research to better understand their experience of working with DKMS and their thoughts on what we could do to better support them.

One interesting piece of feedback received from most of the patients spoken to was that DKMS gives patients and their families hope at a very difficult time.

The insight also highlighted several things we can do to better support our patients including providing a forum for patients to talk to each other. As a result, we have set up a closed Facebook group for patients and their family members.

We will continue to deliver other initiatives in the coming years.

Many of the ways of working introduced in 2020 were built on in 2021. Patient-led appeals and online registration events (called virtual drives, or V-drives) were the focus of activity for the first three-quarters of the year.

We launched 105 V-drives in 2021, including 49 in partnership with our corporate supporters, resulting in over 30,000 people registering as potential blood stem cell donors and raising £18,668 in fundraising donations, exceeding expected outcomes. 20 people who registered via V-drives have gone on to donate their stem cells.

DKMS’ social media activities continued to deliver good levels of impact and contribute significantly to the number of donors recruited (60% of the total). We were fortunate enough to be able share some particularly powerful patient stories, resulting in high levels of engagement. 13-year-old Libby, who had aplastic anaemia, is a great example of the online community coming together to help spread the word about what’s needed. Within three days, Libby’s patient appeal resulted in 2,000 people requesting a home swab kit.

By sharing a variety of content, including patient stories, statistics on the ongoing impact of the pandemic on our work and the inequality of access to donors for certain ethnic communities, some great successes can be noted. 100 pieces of national media coverage were secured of which six were on broadcast media – the highest so far for DKMS in any year.

We continued to work with celebrity supporter Al Murray. In November, alongside DKMS’ CEO, Al was interviewed by BBC News and 16 regional TV and radio stations, which resulted in more than 1,700 people starting the registration process in the 48 hours following the interview being aired.

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3,387 donors registered within a 48 hour period for Esha

Stem Cell donor recruitment

In-person opportunities

As restrictions started to ease across the UK, some face-to-face registration drives were held in locations where people were already gathering. In September, DKMS UK was approached by the family of four-year-old Esha, who had acute myeloid leukaemia (AML), to run registration drives in temples across London. Over a matter of days, the family had arranged for more than 20 drives to be held in the temples, resulting in 3,387 donors being registered within a 48-hour period. The family also shared their story via social media which saw a further 3,281 people register as potential blood stem cell donors.

We also worked with Everton FC to deliver a two-day donor recruitment event at the team’s stadium, Goodison Park. The drive was in support of former player Gary Stevens, whose four-year-old son, Jack, was searching for a blood stem cell donor. Sadly, little Jack died not long after this event but his legacy remains in the hundreds of donors who registered as a result of seeing or hearing his story.

Jack’s appeal has also led to the development of a model for working with other sports clubs and associations, which DKMS will focus on in the coming years.

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Levelling up access to donors

Work to increase the chances available to all patients continued. At the end of December 2021, a further 10,000 donors had been recruited from the black African and Caribbean and Asian communities in the UK.

The breakdown of DKMS’ donor database at the end of December 2021 is shown below.

13,441 29,255 African-Caribbean Mixed 78,271 750,330 Asian British Irish and European

24,223 3,304 Middle Eastern/Mediterranean Other/unknown

Although engagement continues with specific ethnic communities, we’re aware that more needs to be done to achieve parity of access for all, so this will continue to be a focus for DKMS’ work in 2022.

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Angelina and Shola, blood stem cell donors

The power of partnerships

Thanks to our many recruitment partners, in particular those listed below, who have continued to support our mission, DKMS is exploring new ways to work together to recruit more people onto the donor database.

10,000 Donors

ACLT

AME-BCT (Asian and Middle Eastern Blood Cancer Trust)

Kevin Kararwa Leukaemia Trust Sue Harris Trust

Jain and Hindu Organ Donation Steering Group Love Hope Strength Team Margot

Jaskomal Foundation

Race Against Blood Cancer

Upahaar

Throughout 2021, DKMS continued to work with the Women’s Institute (WI) to support its efforts in raising awareness of the need for blood stem cell donors. We value this important relationship and the WI’s continued support.

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Oakmere Women’s Institute
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Achieving success during unprecedented times

Although the UK embarked on a successful Covid-19 vaccination campaign which allowed public life to reopen, for blood stem cell donors there were still many restrictions that had to stay in place to ensure donor and patient safety.

However, despite the effects of these restrictions, the DKMS UK team was determined to continue finding solutions so that donations could be completed and blood cancer and blood disorder patients would receive the treatment they desperately needed.

A new record for second chances at life

In 2021, 3,085 DKMS UK donors were selected as a potential match for patients. 339 donors went on to donate. This included 34 by bone marrow donation and 305 by PBSC (peripheral blood stem cell) donation. This was an all-time record for DKMS UK with more second chances at life given in one year than ever before.

A mark of quality

The quality of our processes has always been core to DKMS’ success. In March 2021, this was recognised when we received Qualification status with the World Marrow Donor Association (WMDA). This accreditation was a significant milestone. The accreditation is important as it acts as a stamp of approval, shown to transplant centres and search coordinators searching for donors.

Learning from our colleagues abroad

Taking learning from other DKMS entities, we aligned our donor processes to deliver improved donor care and business efficiency in our work.

Listening, learning and striving to make a diference

Helping donors to proceed with their donation is a core element of what happens at DKMS, so we continually seek solutions to give an easier, better quality experience for donors. Staying involved in the latest developments in the medical community, as well as listening to the donors, several new ways were developed to help our donors and community.

A new welcome pack for potential lifesavers

The new Lifesaver Pack (the welcome pack mailed to donors when they are identified as a potential match) went live in August. There has been a positive impact from this, including donors sharing the pack on social media which, in turn, has helped to raise the profile of the DKMS brand.

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- An improvement to pre donation injections

Published works

In April 2021, a medicine called Zarzio became DKMS’ primary drug of choice used to stimulate the bone marrow to produce stem cells and release them into the bloodstream; an essential pre-donation step for those donating by PBSC.

DKMS UK was actively involved (working with the UK aligned stem cell register) and listed as a co-author for the following two papers published in 2021.

Zarzio is an easier drug to administer and has provided an uplift in donors self-injecting, which has been particularly useful during the pandemic restrictions. It is estimated there will be a cost saving of approximately £200,000 thanks to this change.

Family assistance

In some cases, for patients worldwide that had a stem cell donor match in their family, the pandemic meant that these family members were not able to travel to donate. In 2021, we supported three family donations where lockdown or travel restrictions did not permit travel by finding ways to transport the required stem cells across borders.

In 2021 our international Patient Aid programme continued to grow. The aim of this programme is to make treatment more available to those in developing economies who would otherwise struggle to access it, or have that access denied entirely. Four families were supported to proceed with stem cell treatment during this financial year. We will work tirelessly to secure further funds to ensure we’re able to help increasing numbers of families.

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Fundraising in 2021

DKMS’ fundraising activities generate incredible stories of daredevil feats and endurance challenges, helping to raise awareness of blood cancer and blood disorders, and highlighting our lifesaving work.

Corporate Partnerships

Working with companies with a strong sense of social responsibility, be it through a shared purpose or shared values – aids the DKMS cause and mission. By delivering jointly organised events and activities, companies are able to see the lasting impact of their partnership with DKMS, for example when their staff members are selected as donors or when they directly contribute towards a patient appeal.

Donor Drives

Online registrations continued in 2021, with new bespoke online pages set up for each company we worked with. This enabled employees to register online and DKMS to give feedback to companies on how many of their workforce had joined the fight against blood cancer. In 2021, 49 virtual donor drives were set up with our corporate partners. We would like to thank all those companies who supported us to make this happen.

CT Business Travel

On the back of a new contract with CT Business Travel who help arrange travel and accommodation for our donors, the company agreed to waive £2,000 of DKMS donor booking fees and committed to raising money by holding a company donor registration event and publicising our partnership to their client base… with a little help from their Wellness Director, Willow the Dog!

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Hanbury Manor Golf Course

Hanbury Manor Golf Club near Ware selected DKMS to be its 2021 Charity of the Year Partner because one of its members, Nigel Ovenden, was diagnosed with multiple myeloma in September 2020. The club has done an incredible job in supporting Nigel and DKMS to raise awareness about the importance of registering as a potential blood stem cell donor, as well as the need to raise money to cover donor registration costs. The total they had raised by the end of the year was almost £25,000.

Serco

The Serco Surface Finish team at RAF Brize Norton refurbished a 1956 Chevrolet truck, raising an amazing £800. Serco has been supporting DKMS since 2018 and has raised over £3,000 to date.

The London Stock Exchange Group

The London Stock Exchange Group (LSEG) recently supported DKMS and one of their employees, Gareth Walker. Nearly two years ago, Gareth’s son, Henry died of aplastic anaemia. Gareth said: “In order that something positive might come out of something so utterly heart-breaking, and in an effort to prevent other people and their loved ones from having to go through the same ordeal as Henry, I want to get the word out about the blood stem cell donor register and stem cell donation. If we know about it, we can do something about it.” An amazing 189 LSEG employees registered as potential lifesavers.

We greatly appreciate the support every company has given to DKMS in what has been another challenging year. Their support has enabled us to continue to aid people facing blood cancer and to help them have a second chance at life.

Trusts and foundations

Trusts and foundations are playing an increasingly important role in DKMS voluntary funding and we would especially like to thank:

Community Fundraising

Our amazing fundraising community continued to show their dedication to DKMS during 2021. Hundreds of runners, walkers, skydivers, bakers, gamers and countless others raised nearly £190,000 over the year. This was an amazing outcome for DKMS – nearly doubling the expected income from this area of fundraising at a time when other charities were publicly calling for more support. Thank you to everyone that gave their support this way in 2021.

Here are some examples of what our incredible supporters delivered:

Stand Out Supporter: Jordan Donovan

The brother of recent transplant recipient, Sheldon, and four of his friends braved a skydive to raise money for DKMS. By jumping from a plane 10,000 feet above Cornwall, the group raised over £5,500. Jordan said “I loved every second of it and can’t wait for the next fundraiser!”.

Stand Out Supporters: Dorset and Wiltshire Firefighters

An amazing group of ten firefighters took on the Bristol Half Marathon in memory of their friend and colleague Guy Tadman. Not content with the running challenge itself, they made it harder for themselves by running the 13.1 miles in their full firefighting kit, including breathing apparatus. In total they raised over £3,500.

Fantastic Fundraising Event: Wine and Cheese with DKMS

The first ever Wine and Cheese with DKMS event took place on 28 May, World Blood Cancer Day. The virtual event raised over £2,700 and was attended by around 200 to 300 people. Olly Smith, star of BBC’s Saturday Kitchen, provided lots of wine-tasting tips, answered audience questions and shared a few insider stories on finding the perfect wine and cheese pairing. As well as raising vital funds, a post-event survey revealed that 53% of participants had not heard of DKMS before the event and 13% went on to register as a blood stem cell donor following the event.

Wing walk to find lifesaving donors

DKMS’ theme for 2021’s Blood Cancer Awareness month (September) was ‘You’ve Got it in You’. The initiative urged people between the ages of 17 and 55 to make a difference by taking the first step to becoming a blood stem cell donor and a potential lifesaver.

As part of the month-long campaign, DKMS supporters Peter McCleave, Sally Hurman and Lisa Jackson completed a daring walk on the wing of a plane. The event, which took place in Essex, brought together three people with a personal connection to blood cancer, to highlight Peter’s search for a lifesaving blood stem cell donor.

The trio became a quartet when Jo Hill, the mother of former patient Finn, shaved her head for us. These four brave supporters managed to raise over £10,000 in total for DKMS. Peter, who has the blood cancer myeloma, said: “I’ve been searching for a match for four years now. If we can get more people to register with DKMS, that will help give me and other blood cancer patients a second chance at life.

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End of Year Appeal

At the end of November, DKMS UK launched the Year End Appeal, which featured Alfie and his lifesaving donor, Christin. An email and social media posts encouraged supporters to watch a video featuring Lorna, Alfie’s mum, and give a donation if they wished to. The campaign raised more than £16,000, making it one of the most successful Year End Appeals to date.

Better support for our supporters

In February, the fundraising team launched a useful new microsite. Provided by third party fundraising web specialist, Enthuse, the site serves as a platform not only for community fundraisers and corporate partners to raise funds and awareness through the challenges they set themselves, but also to collect donations for virtual drives.

Since launch, the Enthuse microsite has helped DKMS raise more than £93,000 in under a year. More details on this can be found at: dkms.enthuse.com.

Whilst all DKMS entities faced unprecedented challenges with fundraising, they came together for a week in May to share learning and seek solutions to the global challenges. Topics discussed included acquisition of new regular givers and retention of givers, digital peer-to-peer fundraising, and best and worst practice to share insight and lessons learned. This inspired ideas about other opportunities to raise money and new ways of engaging more supporters.

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Volunteering Stories

There are currently 50 volunteers registered with DKMS and six volunteering hubs across the UK. Due to the pandemic, our volunteers weren’t able to deliver as many physical donor recruitment drives as hoped, but they helped promote a number of V-drives and attracted a total of 223 new donors to the register.

In December our amazing volunteers were invited to celebrate their work over the year, at our lunchtime quarterly meeting. Lorna Gray, one of our volunteers, had a good reason for missing out on the meeting – she was donating her blood stem cells for the second time in two years.

“

It's a privilege to have the potential to help a stranger who is in an unfortunate health position. We are only asked to donate something we can make up again for ourselves, so why would you not? The whole experience was simple and made easier by the information given by my donation coordinator. During this last couple of years, we have all done many swabs but the DKMS registration swab is by far the easiest and most beneficial you can do.”

- Lorna Gray

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Success stories

Black donors working with DKMS for Black History Month

In October, as the focus for our Black History Month outreach, DKMS adopted Black History Month Magazine’s theme ‘Proud to Be’, aiming to raise awareness of blood stem cell donation among black African and Caribbean communities and position it as a positive experience.

Blood stem cell donors Angelina, Julius and Shola teamed up with DKMS to urgently call for more black blood stem cell donors. For those with blood cancer or a blood disorder diagnosis, a blood stem cell donation from a genetically similar person can be the only option for survival. Currently, people from black, Asian or other minority ethnic backgrounds have a 37% chance of finding the best possible stem cell donor match, compared to 70% for people from Northern European backgrounds.

The trio said: “We chose to become blood stem cell donors because we all understood how important it is for black African or Caribbean people to be on the register. As it stands, blood cancer patients from backgrounds similar to us have a far harder task to find a potential lifesaver”.

Our Black History Month donor outreach resulted in an increase in people from black African and Caribbean communities joining the register in October, and contributed to our continuing efforts to diversify the register.

37% chance of finding the best stem cell donor match, compared to 70% for Northern Europeans

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Patrick, left, in the USA and Alex, right, his donor in the UK

Success stories

“You’re like my brother, you saved my life”

The moment a patient meets their lifesaver is always so special.

Alex, from the UK, registered because his friend Peter McCleave – mentioned on page 15 – is still seeking a match and Alex hoped he might be the one to help. He wasn’t a match for Peter, unfortunately, but he did match with someone else. His blood stem cells were an excellent match for Patrick, who lives in the US.

Because of the pandemic it wasn’t possible for them to meet in person but a Zoom call meant they were able to meet virtually for the first time. ITV News Granada Reports captured the moment and in an emotional exchange, Patrick told Alex: “I had trouble sleeping

last night, I was so excited to meet you. I find myself getting a little emotional. I keep thinking: Alex, what if you didn’t do it? I’m so grateful. I thank you, we’re joined at the hip now. But you’re like my brother, you saved my life and I love you.”

Since the story was featured, over 2,000 people have joined the blood stem cell register. Through Peter’s own website, 10000donors.com, he has helped to register over 90,000 blood stem cell donors, far exceeding his original goal. Seventeen of these so far were found to be a match for a patient in need and went on to donate. Alex was one of them.

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people from the 10,000 donors campaign have already donated

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DKMS FOUNDATION

TRUSTEES’ REPORT

Preparation of report

As the company qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required.

DKMS Foundation (referred to hereinafter as ‘DKMS UK’) is incorporated as a charitable company limited by guarantee and is a registered charity in England and Wales, and in Scotland. It is governed by its Memorandum and Articles of Association, and the work, management, finances and strategy of the Charity are overseen by a Board of Trustees, who are also the Company Directors.

DKMS UK is connected through common Trustees to DKMS gemeinnützige GmbH (‘DKMS’), and its related charities.

The Trustees who held office during the financial year and at the date of the report are set out on page 50.

A minimum of two Trustees at any one time are required by the Articles of Association. There is no maximum limit required by the Articles. At every Annual General Meeting (AGM) one-third of the Trustees retire by rotation, but are eligible for re-election. There is no restriction on the term of tenure as a Trustee. Trustees do not receive remuneration for their duties.

register as a potential blood stem cell donor. Increasing the number and diversity of potential blood stem cell donors is vital in increasing the life chances of blood cancer and disorder patients who are in need of a blood stem cell transplant. At present, only 3% of the UK population are registered as donors compared to much higher levels in some other countries.

Registering more potential blood stem cell donors means that we are able to provide more second chances at life by finding and supporting an unrelated blood stem cell donor who can and will donate their stem cells for a patient in need of a life-saving blood stem cell transplant.

Through recruiting, registering and supporting blood stem cell donors to be part of life-saving treatments, we deliver significant public benefit to patients and their families and to the National Health Service, which arranges treatment and care for those patients.

The Trustees review the aims, objectives and activities of DKMS UK each year, ensuring the Charity remains focused on its stated purpose. This report looks at what DKMS UK has achieved and the outcomes of its work in the reporting period.

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.

Purpose

DKMS UK’s charitable purposes are set out in its Memorandum of Association as follows:

“The preservation and protection of good health and the relief of sickness of individuals who are suffering from any kind of blood cancer.”

The aims of DKMS UK are to:

Board and management operations and structure of Board of Trustees

The Board of Trustees meets twice a year to review DKMS UK’s work, finances and services, and to agree the strategic goals for the Charity.

Recruitment and appointment of new Trustees

Public beneft

DKMS UK raises awareness of blood cancers and blood disorders in the UK, including the life-changing impact of a diagnosis, in order that increasing numbers of the general public know about the need for more people to

Trustees are appointed on the basis of their relevant skills and experience. The ongoing Trustees are responsible for the induction of any new Trustees, which involves an awareness of a Trustee’s responsibilities, the governing document, administrative procedures, the history, approach and current business plan of DKMS UK.

The Trustees will also make available a welcome pack to include copies of the previous year’s annual report and financial statements, a brief history of the charitable company and a copy of the governing document. The pack will also include a copy of the Charity Commission guidance ‘The essential Trustee: What you need to know. What you need to do.’

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DKMS FOUNDATION

TRUSTEES’ REPORT

While DKMS UK is connected through common Trustees to DKMS gemeinnützige GmbH (‘DKMS’), it aims to recruit additional Trustees that can broaden and support its representation in the UK.

Management and organisation

Day-to-day operation of the Charity, and strategy implementation, is delegated to the Chief Executive Officer, supported by the Senior Leadership Team (SLT). In the absence of the CEO, Stephan Schumacher, Trustee oversees the work of the SLT.

The Senior Leadership Team comprises:

The salary structure’s pay levels are reviewed at least annually by the CEO to ensure that salary scales are aligned with those for similar positions in the external market. A review of salaries normally takes place annually, and is usually implemented in January. If changes are to be made, staff are advised in writing of the amount and the date from which it takes effect. A salary review does not imply an increase and in making any pay award the review will be based on the organisation’s financial health and achievements.

With reference to the National Council of Voluntary Organisation’s 2014 inquiry into executive pay (NCVO, Report of the Inquiry into Charity Senior Executive Pay and Guidance for Trustees on Setting Remuneration), the Board of Trustees is committed to including the following information within its annual statutory report and financial statements:

Related parties

The only related parties are considered to be the Trustees and those connected with the Trustees, including their close family, business and other charity interests. There have been no transactions with related parties, other than the reimbursement of reasonable travel expenses for the purposes of attendance at Board meetings and other relevant organisational activities.

Our approach to fundraising

We continue to uphold the highest standards in how we communicate with our fundraising donors and supporters and ensure that our fundraising practices meet the requirements of the recommended Codes of Practice.

We treat our donors and supporters with great respect and gratitude that befits a community of people and organisations that make our work possible.

Remuneration

Key aspects of our approach to fundraising include:

In order to recruit and retain staff of the calibre it requires, DKMS UK’s pay policy is to remunerate staff at levels above the voluntary sector median rate, but below the private sector market rate. The Charity has an organisational salary structure based upon a job evaluation study and external salary benchmarking that took place in 2018. New roles are assessed against the job evaluation criteria and placed in a corresponding grade in the structure.

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DKMS FOUNDATION

TRUSTEES’ REPORT

DKMS UK acknowledges these and takes them seriously. The risks to the safety of our donors before, during and after the donation process, as well as any risks to transplant patients from the collection of poor-quality stem cell product are managed and mitigated in the following ways:

DATA MANAGEMENT AND PROTECTION

Risk assessment and management

DKMS UK operates a risk assessment and management framework that reviews major risk areas on a quarterly basis.

The CEO and individual members of the SLT take responsibility for the day-to-day management and oversight of the above risk areas. The Trustees review the assessments and mitigating actions at their Board meetings and consider the following areas to be the major risks related to DKMS UK’s operations and activities.

MEDICAL SAFETY OF DONORS DURING THE BLOOD STEM CELL COLLECTION PROCESS

Although the medical process and procedure for blood stem cell donation and collection is safe, well-established and regulated, there will always be some safety risks and

The collection, processing, storage and security of our blood stem cell donors’ personal data and genetic information is of paramount importance and so represents a major risk in the event of mismanagement, loss or misuse of that data. The potential damage to individual donors through a data breach, let alone the damage to DKMS UK’s and the DKMS Group’s reputation and activities in working with patients, donors, supporters and stakeholders would be catastrophic. We manage and mitigate these risks through:

Effective and high-quality blood stem cell donor recruitment is essential to ensuring we meet the needs of patients and transplant centres looking for a match. If we fail to ensure we recruit sufficient numbers of

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DKMS FOUNDATION

TRUSTEES’ REPORT

donors with a diverse range of backgrounds, and also with accurate and regularly updated personal health and genetic information and contact details, then we risk not being able to save the lives of more blood cancer and blood disorder patients. We manage and mitigate this risk by ensuring we have:

FINANCIAL RISKS

There are a number of areas of financial risk faced by DKMS UK:

These risks are managed and mitigated in the following ways:

LOGISTICAL AND SUPPLY LINE BUSINESS CONTINUITY AND RESILIENCE

Ensuring we have reliable, efficient and cost-effective methods for transporting our swab packs, blood samples and collected blood stem cells is crucial to the successful achievement of our organisational goals and objectives to save more lives, as is having a well-stocked and maintained supply line, resources and medicines. To manage and mitigate the risks of business-critical supplies and logistical arrangements we have:

CONSEQUENCES FOR DKMS UK OF THE UK EXIT FROM THE EU

DKMS UK did not experience any major effects on its activities following the UK’s exit from the EU and leaving the single market and customs union. The charity has a diverse customer base across wide geographical areas and continues to trade in all three major trading currencies – namely the British pound sterling, Euro and US dollar.

Signifcant operational developments in the year

As reported in our previous Annual Report the Controlling company DKMS gemeinnützige GmbH entered into a contract with DKMS Life Science Lab whereby DKMS UK receives HLA and CMV (human leukocyte antigen and cytomegalovirus, two key pieces of information gathered from new donor registration swabs) for no consideration from 1 January 2021.

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DKMS FOUNDATION

TRUSTEES’ REPORT

DKMS gemeinnützige GmbH and its related entities also implemented its strategic decision to simplify its pricing structure for stem cell treatment to its customers with effect from 21 April 2021. This has been received favourably by Registries and Transplant Centres.

Post-balance sheet events

The war in Ukraine is likely to increase costs of stem cell extraction and delivery in the short term. The Charity and its controlling company is financially able to cover the extra costs. The situation is still in its early days and the management team and the Trustees will continue to monitor the situation as it develops and take measures to ensure the safety and wellbeing of our donors and giving blood cancer patients a second chance at life.

Financial review

GOING CONCERN

The Board of Trustees of the ultimate parent company approved an arrangement to continue funding DKMS UK’s main activities to meet all its liabilities from its principal, DKMS gemeinnützige GmbH for a period not less than 12 months from the date these financial statements are approved. Accordingly, the Trustees continue to adopt a going concern basis in preparing the financial statements.

The company’s business activities in 2022 show positive results to budget and the trend is expected to continue for rest of the year with the company’s funding requirements expected to remain well within the amounts approved by the board for next three years.

The charitable company’s net current assets at 31 December 2021 were £1,069,433 (2020: £817,186). Further details regarding the adoption of the going concern basis can also be found in the Accounting Policies on page 32.

FINANCIAL RESULTS

DKMS UK received donations totalling £2,608,270 (2020: £4,079,333) of which £775,451 (2020: £939,538) was donated funds, £1,825,114 (2020: £3,139,795) was donated services from DKMS in Germany and other income £7,705 (2020: £nil).

The year posed different challenges than that experienced in 2020. The charity company’s net income for the year amounted to £223,736 (2020: loss £346,067) mainly from increased activity in stem cell transplants in the year as the success of vaccination programme against the Covid-19 virus and its variants in the UK and in many other countries made patient treatment more readily available and generated income of £6,381,655 (2020: £4,841,811). However, the uncertainty, constantly changing and longer long lockdowns and travel restrictions created greater

challenges for online and face-to-face donor registration meetings resulting in lower register donor numbers. Money donation income was also adversely affected once again by cancellation of the annual UK Gala with lost revenue of almost £1,550,000 (2020: £1,200,000).

RESERVES POLICY

DKMS UK’s aim is to gradually grow its unrestricted funds and achieve full financial independence. While the Charity is growing its income base and cash flow, it continues to receive funding for its main activities from its principal, DKMS gemeinnützige GmbH. The Trustees have approved for this arrangement to continue for the foreseeable future and until DKMS UK becomes financially independent to meet all its liabilities for at least 12 months. As at 31 December 2021 DKMS UK’s unrestricted funds were £1,181,420 (2020: £957,684).

PRINCIPAL FUNDING

In the period under review, DKMS UK’s principal funding has come from donations from DKMS in Germany. In the meantime, the charitable company continues to grow its fee income from referral of potential blood stem cell donors and management of stem cell or bone marrow collections and establishing a broader base of additional funding sources to grow its voluntary donation income.

However, the charitable company developed a fundraising strategy to raise additional funding through voluntary donations and events. Another source of fundraising is fees earned for the referral of potential blood stem cell donors and the management of stem cell or bone marrow collection.

FUTURE DEVELOPMENTS

DKMS remains on track to increase the number of blood stem cell donations to exceed 400 per year within two years, but realises the need to continue adding new blood stem cell donors to the UK register to support this aim.

Recruitment must remain targeted, particularly focusing on those from ethnic minority communities, as those groups will help increase our overall number of matched donors, and move us closer to levelling up access to transplantation.

Fundraising work is planned to grow significantly over the next three years to support our expansion, with important areas for future growth being community-based and volunteer-led programmes, along with an expanded corporate support programme. This support is vital to achieve our aim of finding a matching donor for every stem cell transplant patient that needs one and where required covering the costs of the transplant.

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DKMS FOUNDATION

TRUSTEES’ REPORT

Trustees’ reponsibilities statement

The Trustees (who are also directors of DKMS Foundation for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Trustees at the time when this Trustees’ report is approved has confirmed that:

This report was approved by the Trustees on 4 July 2022 and signed on their behalf on 20 September 2022 by:

----- Start of picture text -----
S. Geist
Trustee
----- End of picture text -----

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DKMS FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF DKMS FOUNDATION

OPINION

In our opinion, DKMS Foundation’s financial statements (the ‘financial statements’):

We have audited the financial statements, included within the Annual Report and Financial Statements (the ‘Annual Report’), which comprise: the balance sheet as at 31 December 2021; the statement of financial activities (incorporating income and expenditure account) and the statement of cashflows for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (‘ISAs (UK)’) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

INDEPENDENCE

We remained independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.

CONCLUSIONS RELATING TO GOING CONCERN

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 charitable company’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

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.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charitable company’s ability to continue as a going concern.

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

REPORTING ON OTHER INFORMATION

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of 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 based on these responsibilities.

With respect to the Trustees’ Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) require us also to report certain opinions and matters as described on the next page.

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DKMS FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF DKMS FOUNDATION

Trustees’ Report

In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements and the Trustees’ Report have been prepared in accordance with applicable legal requirements.

In addition, in light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Trustees’ Report. We have nothing to report in this respect.

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

Responsibilities of the Trustees for the financial statements

As explained more fully in the Trustees’ Responsibilities statement, the Trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Trustees are also responsible 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under section 44(1) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect there under.

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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Based on our understanding of the charitable company and industry, we identified that the principal risks of non-compliance with laws and regulations related to Health and Safety regulations and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of The Charities Accounts (Scotland) Regulations 2006 (as amended). We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to manipulation of financial performance. Audit procedures performed included:

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DKMS FOUNDATION

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF DKMS FOUNDATION

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of this report

This report, including the opinions, has been prepared for and only for the charitable company’s members and Trustees as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation 10 of The Charities Accounts (Scotland) Regulations 2006 (as amended) and Chapter 3 of Part 16 of the Companies Act 2006) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

Under the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

ENTITLEMENT TO EXEMPTIONS

Under the Companies Act 2006 we are required to report to you if, in our opinion, the Trustees were not entitled to: prepare financial statements in accordance with the small companies’ regime and take advantage of the small company’s exemption from preparing a Strategic Report.

We have no exceptions to report arising from this responsibility.

Matthew Kaye (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors, Glasgow 20 September 2022.

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DKMS FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and legacies
2
Charitable activities
3
Total Income
Expenditure on:
Raising funds
4
Charitable activities
5, 6 and 9
7, 18
Net income/(expenditure) before
other recognised gains and losses
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds 2021
£
2,608,270
6,381,655
8,989,925
521,982
8,244,207
8,766,189
223,736
223,736
957,684
1,181,420		 Total funds
2021
£
2,608,270
6,381,655
8,989,925
521,982
8,244,207
8,766,189
223,736
223,736
957,684
1,181,420		 Total funds
2020
£
4,079,333
4,841,812
8,921,145
459,047
8,808,165
9,267,212
(346,067)
(346,067)
1,303,751
957,684

All activities relate to continuing operations. The notes on pages 32 to 48 form part of these financial statements.

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DKMS FOUNDATION

BALANCE SHEET

AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Inventory
14
Debtors
15
Cash at bank
and in hand
21
Creditors:
amounts falling
due within
one year
16
Net current
assets
Net assets
Charity Funds
Unrestricted
funds
18
Total funds
19		 2021
2020
£
£
£
£
111,986
140,497
1
1
111,987
140,498
180,086
144,271
1,171,084
1,878,009
1,017,723
771,903
2,368,893
2,794,183
(1,299,460)
(1,976,997)
1,069,433
817,186
1,181,420
957,684
1,181,420
957,684
1,181,420
957,684		 2021
2020
£
£
£
£
111,986
140,497
1
1
111,987
140,498
180,086
144,271
1,171,084
1,878,009
1,017,723
771,903
2,368,893
2,794,183
(1,299,460)
(1,976,997)
1,069,433
817,186
1,181,420
957,684
1,181,420
957,684
1,181,420
957,684
140,498
817,186
957,684
957,684
957,684

The company’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 (‘the Act’) and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 4 July 2022 and signed on their behalf on 20 September 2022 by:

S. Geist Trustee

The notes on pages 32 to 48 form part of these financial statements.

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DKMS FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

OR THE YEAR ENDED 31 DECEMBER 2021
Note
Cash fows from operating activities
Net cash provided by operating activities
20
Cash fows from investing activities
Purchase of tangible fxed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
21		 2021
£
281,770
(35,950)
(35,950)
245,820
771,903
1,017,723		 2020
£
15,937
(17,425)
(17,425)
(1,488)
773,391
771,903

The notes on pages 32 to 48 form part of these financial statements.

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DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2021

1. Accounting Policies

1.1 Basis of preparation of financial statements

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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

DKMS Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in pound sterling (£).

1.2 Going concern

The Trustees of the ultimate parent company review the company’s activities and 3-year business plan each year and establish and approve funding level required to enable the company to achieve its goals and meet its business commitments and liabilities.

The Board of Trustees of the ultimate parent company approved arrangement to continue funding the charitable company’s main activities from its principal, DKMS gemeinnützige GmbH until the company becomes financially independent to meet all its liabilities for a period not less than twelve months from the date these financial statements are approved. Accordingly, the Trustees continue to adopt going concern basis in preparing the financial statements.

1.3 Company status

The charitable company is limited by guarantee. The members of the company are the Trustees named on page 50. In the event of the company being wound up, the liability in respect of the guarantee is limited to £10 per member of the company.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular

purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.5 Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Money donation income is recognised when the income is credited into the company’s account and revenue for clinical services is recognised after services are delivered.

Donated services or facilities are recognised when the charitable company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charitable company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102). General volunteer time is not recognised. Further information about volunteer contribution is included in the Trustees’ report.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charitable company which is the amount the charitable company 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.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.6 Expenditure

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

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings:

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DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1.7 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of accumulated depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

1.8 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value. Investments in subsidiary companies are stated at cost less diminution in value.

1.9 Interest receivable

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

1.10 Debtors

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

1.12 Creditors and provisions

Creditors and provisions are recognised where the charitable company 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.

1.13 Pensions

The charitable company operates a defined contribution pension scheme and the pension charge represents the amount payable by the charitable company in respect of the year.

1.14 Financial instruments

The charitable company has applied Sections 11 and 12 of (FRS 102) in respect of financial instruments.

Financial assets and financial liabilities are recognised when the charitable company becomes party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charitable company after deducting all of its liabilities.

The charitable company’s policies for its major classes of financial assets and financial liabilities are set out below.

Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances, related charity working capital balances, and related charity financing are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

1.11 Cash at bank and in hand

Cash at bank and 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.

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DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from related charities, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Impairment of financial assets

Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset’s carrying amount and the best estimate of the amount the charitable company would receive for the asset if it were to be sold at the reporting date.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If the financial asset has a

variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets and financial liabilities

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

1.15 Critical accounting estimates and areas of judgment

Management does not consider there to be any key judgements or estimates made in the preparation of the financial statements.

2. Donations and legacies

Donation income
International donation income
Funding for donor recruitment activities
from DKMS gemeinnützige GmbH
Other income
Total donations and legacies
Total 2020		 Unrestricted
funds
2021
£
475,451
300,000
1,825,114
7,705
2,608,270
4,079,333		 Total
funds
2021
£
475,451
300,000
1,825,114
7,705
2,608,270
4,079,333		 Total
funds
2020
£
693,838
245,700
3,139,795
-
4,079,333

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DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. Charitable activities

Income from service provision
Total 2020		 Unrestricted
funds
2021
£
6,381,655
4,841,812		 Total
funds
2021
£
6,381,655
4,841,812		 Total
funds
2020
£
4,841,812

In the year ended 31 December 2021 and 2020 all income related to unrestricted funds.

4. Raising funds

Salaries, national insurance and pensions
Other staf costs and training
Premises costs
Publicity costs (income)
Postage, support and stationery
Other admin costs
Travel costs
Loss on foreign exchange
Depreciation
Total 2021
Total 2020		 Unrestricted
funds
2021
£
333,167
10,455
58,061
9,341
1,794
89,671
272
10,739
8,482
521,982
459,047		 Total
funds
2021
£
333,167
10,455
58,061
9,341
1,794
89,671
272
10,739
8,482
521,982
459,047		 Total
funds
2020
£
306,647
9,036
55,971
(2,344)
2,121
73,979
287
1,862
11,488
459,047

35

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

  1. Direct costs
Other direct costs
Other staf costs and training
Premises cost
Publicity cost
Loss on foreign exchange
Postage, support and
stationery
Travel costs
Donor typing costs
Salaries, national insurance
and pensions
Depreciation
Total 2020		 Recruitment
of donors
2021
£
229,391
21,882
63,334
69,793
11,426
233,378
160
1,741,184
278,527
9,025
2,658,100
3,852,792		 Raising
awareness
2021
£
98,142
509
108,506
210,942
19,588
240,273
1,920
161
508,062
15,471
1,203,574
1,584,072		 Donor
Request
Management
2021
£
2,593,152
730
110,582
8,787
22,853
108,826
-
-
508,527
18,049
3,371,506
2,502,290		 Total
funds
2021
£
2,920,685
23,121
282,422
289,522
53,867
582,477
2,080
1,741,345
1,295,116
42,545
7,233,180
7,939,154		 Total
funds
2020
£
2,348,760
20,316
184,826
305,256
6,672
706,203
4,233
3,179,578
1,142,156
41,154
7,939,154

In the year ended 31 December 2021 and 2020 all costs of direct charitable activities related to unrestricted funds. In the year ended 31 December 2021 and 2020 all income related to unrestricted funds.

36

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

6. Support costs

Legal and professional fees
Loss on foreign exchange
Other staf costs and training
Premises costs
Travel costs
Other support costs
Postage, Support
and stationery
Admin costs
Salaries, national insurance
and pensions
Depreciation
Total 2020		 Recruitment
of donors
2021
£
5,901
3,608
12,926
21,017
68
18,620
943
2,034
138,825
2,850
206,792
201,537		 Raising
awareness
2021
£
10,108
6,186
22,159
36,002
116
31,920
1,617
3,486
237,985
4,885
354,464
243,368		 Donor
Request
Management
2021
£
10,004
7,217
25,851
35,633
135
37,239
1,887
4,068
277,650
5,700
405,384
402,556		 Total
funds
2021
£
26,013
17,011
60,936
92,652
319
87,779
4,447
9,588
654,460
13,435
966,640
847,461		 Total
funds
2020
£
21,855
3,013
41,074
107,162
1,305
86,287
9,160
(5,095)
564,114
18,586
847,461

In the year ended 31 December 2021 and 2020 all income related to unrestricted funds.

37

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. Analysis of expenditure by expenditure type

Expenditure on raising
voluntary income
Costs of raising funds
Recruitment of donors
Raising awareness
Donor request management
Charitable activities
Expenditure on governance
Total 2021
Total 2020		 Staf
costs
2021
£
333,167
333,167
417,353
746,047
786,176
1,949,576
0
2,282,743
2,012,919		 Depreciation
2021
£
8,482
8,482
11,874
20,356
23,749
55,979
0
64,461
71,226		 Other
costs
2021
£
180,333
180,333
694,641
2,532,659
2,966,965
6,194,265
44,387
6,418,985
7,183,067		 Total
funds
2021
£
521,982
521,982
1,123,868
3,299,062
3,776,890
8,199,820
44,387
8,766,189
9,267,212		 Total
funds
2020
£
459,047
459,047
2,040,820
3,840,949
2,904,845
8,786,615
21,550
9,267,212

In the year ended 31 December 2021 and 2020 all costs of direct charitable activities related to unrestricted funds.

Expenditure on raising voluntary income has not been allocated to specific activities as all costs relate to general charitable activities.

8. Analysis of expenditure by activities

Recruitment of donors
Raising awareness
Donor request management
Total 2021
Total 2020		 Activities
undertaken
directly
2021
£
917,078
2,944,597
3,371,506
7,233,182
7,939,152		 Support
costs
2021
£
206,791
354,465
405,384
966,640
847,463		 Total
funds
2021
£
1,123,869
3,299,062
3,776,890
8,199,821
8,786,615		 Total
funds
2020
£
2,040,820
3,840,950
2,904,845
8,786,615

In the year ended 31 December 2021 and 2020 all costs of direct charitable activities related to unrestricted funds.

38

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. Governance costs

Auditors' remuneration
Legal and professional fees
Total		 Unrestricted
funds
2021
£
23,000
21,387
44,387		 Total
funds
2021
£
23,000
21,387
44,387		 Total
funds
2020
£
20,950
600
21,550

In the year ended 31 December 2021 and 2020 all costs of direct charitable activities related to unrestricted funds.

10. Net resources expended

This is stated after charging: 2021 2020
£ £
Depreciation of tangible fxed assets:
- owned by the charity 64,719 71,226
Auditors’ remuneration - audit 23,000 21,939
- Non audit services - Taxation advice 15,000 10,640

During the year, no Trustees received any remuneration (2020 - £Nil). During the year, no Trustees received any benefits in kind (2020 - £Nil). During the year, no Trustees received any reimbursement of expenses (2020 - £Nil).

39

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Staff costs

Staf costs were as follows:
Salaries
Social security costs
Pension costs
Total		 2021
£
1,992,059
201,512
82,196
2,275,767		 2020
£
1,755,341
171,521
83,524
2,010,386

The average monthly number of employees was: 50 (2020: 45) and the average monthly number of employees during the year expressed as follows.

Full-time equivalents was as follows (including part-time and fixed period temporary staff):

Donor recruitment
Fundraising
Communications
Medical
Administration
Total
In the band £60,001 - £70,000
In the band £70,001 - £80,000
In the band £80,001 - £90,000
In the band £90,001 - £100,000
In the band £100,001- £110,000
In the band £110,001- £120,000
In the band £120,001- £130,000
Total
The number of higher paid employees was:		 2021
No.
7
5
12
14
12
50
2021
No.
2
1
1
0
0
0
1
5		 2020
No.
9
5
7
13
11
45
2020
No.
2
0
0
0
0
0
1
3

The charitable company Trustees were not paid or received any other benefits from employment with the charitable company in the year (2020: £Nil) neither were they reimbursed expenses during the year (2020: £Nil). No charitable company Trustees received payment for professional or other services supplied to the charitable company (2020: £Nil).

The key management personnel of the charitable company are the Trustees, the Chief Executive Officer and the heads of departments. There are 6 heads of department (2020: 7), five of whom received remuneration in excess of £60,000 during the year (2020: 3). The total employee benefits of the key management personnel of the charitable company were £571,266 (2020: £516,792).

40

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. Tangible assets

Cost
At 1 January 2021
Additions
At 31 December 2021
Accumulated Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Ofce
equipment
£
69,500
934
70,434
50,282
6,384
56,666
13,768
19,218		 Computer
equipment
£
136,312
35,016
171,328
103,557
24,880
128,437
42,891
32,755		 Leasehold
improvements
£
228,855
-
228,855
140,331
33,197
173,528
55,327
88,524		 Total
funds
£
434,667
35,950
470,617
294,170
64,461
358,631
111,986
140,497
  1. Investments
Shares
in Group
undertakings
£
Costs
At 31 December 2021 and 31 December 2020 1

The company’s wholly owned subsidiary, Delete Blood Cancer UK Marketing Limited, registered at Ashburnham House, Castle Row, Horticultural Place, London W4 4JQ is a dormant company. Its net liability position at 31 December 2021 £10,245 (2020: £10,245) is represented by amounts due to parent company and is fully provided for in the accounts of the parent company.

14. Inventory

Inventory costs were as follows:
Materials stock
Work in progress costs
Total		 2021
£
155,634
24,452
180,086		 2020
£
129,903
14,368
144,271

Inventories are valued at lower of cost and net realisable value. Work in progress costs are reimbursable costs incurred for active stem cell collections awaiting to be billed.

41

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Amounts owed by related charity
Other debtors
Prepayments and accrued income
Total
16. Creditors: amounts falling due within one year
Trade creditors
Amounts owed to related charity
Other creditors
Other taxation and social security
Accruals
Total
17. Financial Instruments
Financial assets
Financial assets that are debt instruments measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost
Total		 2021
£
884,498
10,245
95,715
1,245
179,381
1,171,084
2021
£
349,404
30,807
22,217
62,586
834,446
1,299,460
2021
£
991,703
(380,211)
611,492		 2020
£
701,885
10,245
984,975
4,445
176,459
1,878,009
2020
£
325,906
213,039
415,615
57,773
964,664
1,976,997
2020
£
1,701,550
(538,946)
1,162,604

Financial assets measured at amortised cost include trade debtors, amounts owed by group companies, other debtors and amounts owed by related charity.

Financial liabilities include trade creditors and amounts owed to a related charity.

42

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. Summary of funds
At 1 January
Income for year
Resource expended
At 31 December
19. Analysis of net assets between funds
Tangible fxed assets
Fixed asset investments
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - current year
Tangible fxed assets
Fixed asset investments
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior year		 2021
£
957,684
8,989,925
(8,766,189)
1,181,420
Unrestricted
funds
2021
£
111,986
1
2,368,893
(1,299,460)
1,181,420
Unrestricted
funds
2020
£
140,497
1
2,794,183
(1,976,997)
957,684		 2020
£
1,303,751
8,921,145
(9,267,212)
957,684
Total
funds
2021
£
111,986
1
2,368,893
(1,299,460)
1,181,420
Total
funds
2020
£
140,497
1
2,794,183
(1,976,997)
957,684

43

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

  1. Reconciliation of net movement in funds to net cash flow from operating activities
Net income/(expenditure) for the year
(as per Statement of Financial activities)
Adjustment for:
Depreciation charges
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
(Increase)/Decrease in inventory
Total
21. Analysis of cash and cash equivalents
Cash at bank and in hand
Total
22. Operating lease commitments
Within 1 year
Between 2 and 5 years
Over 5 years
Total
At 31 December the total of the charity’s future minimum lease payments
under non-cancellable operating leases was:		 2021
£
223,736
64,461
706,925
(677,537)
(35,815)
281,770
2021
£
1,017,723
1,017,723
2021
£
285,022
217,638
-
502,660		 2020
£
(346,067)
71,226
(276,613)
481,603
85,788
15,937
2020
£
771,903
771,903
2020
£
281,925
493,369
-
775,294

Lease payments recognised as an expense amounted to £282,183 (2020: £218,171).

The company entered into a new 4-year lease ending 30 September 2023 for its current office premises at annual rent of £281,925 including a 6-month rent-free period at the start of the lease and a 3-year lease ending October 2024 for purchase of operating equipment at annual rent of £3,097.

44

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23. Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 ‘Related Party Disclosures’ from disclosing transactions with entities which are a wholly owned part of the group.

Transactions with other related parties are as follows:

Name (relationship) Transaction Amount Amount due from/(to) Amount due from/(to)
related party
2021 2020 2021 2020
£ £ £ £
DKMS gemeinnützige GmbH Donated
(Common Trustees) services 1,825,114 3,139,795 83,930 921,171
DKMS gemeinnützige GmbH Intercompany
(Common Trustees) recharges 249,463 195,217 (30,141) 62,503
DKMS Life Science Lab Intercompany
(Common Trustees) recharges 161 2,686,250 - (211,958)
DKMS Registry Intercompany
gemeinnützige GmbH recharges 54,339 - (7,050) -
DKMS USA Intercompany
(Common Trustees) recharges 667 - (667) 1,301
DKMS USA International
(Common Trustees) money donation 300,000 245,700 - -
DKMS BMST Intercompany
(India) support services - - 11,785 -
DKMS Foundation NPC Intercompany
(South Africa) service provision 14,290 - 14,290 -

Amounts owed to related parties are unsecured, interest free and due for repayment within one year.

DKMS gemeinnützige GmbH is the Controlling company and exercises full control over the charitable company through its common Trustees who are also directors of the company. The controlling company recharges the charitable company actual or appropriately apportioned costs it incurs in providing support to the latter.

The controlling company DKMS gemeinnützige GmbH entered into a contract with DKMS Life Science Lab whereby DKMS Foundation receives typing services for no consideration from 1 January 2021.

DKMS Life Science Lab is one of the leading HLA laboratories and provides this service for all DKMS entities.

45

DKMS FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

24. Post balance sheet events

The war in Ukraine is likely to increase costs of stem cell extraction and delivery in the short term. The Charity and its controlling company is financially able to cover the extra costs. The situation is still in its early days and the management team and the Trustees will continue to monitor the situation as it develops and take measures to ensure the safety and wellbeing of our donors and giving blood cancer patients a second chance at life.

25. Controlling party

The Trustees are the immediate controlling party and DKMS gemeinnützige GmbH is the ultimate parent. The principal address of the ultimate parent is Kressbach 1, 72072 Tubingen, Germany.

Copies of the group financial statements are available at www.dkms.de.

46

DKMS FOUNDATION 47

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Dr E Neujahr B J Abel S Geist Dr A H Schmidt S Schumacher

Principal staff Jonathan Pearce, CEO (until 4 April 2022) Stephan Schumacher, Trustee

Registered company number 08151279 (England & Wales)

Charity registered number 1150056 (England & Wales) SC046917 (Scotland)

Registered office Ashburnham House, Castle Row, Horticultural Place London, W4 4JQ

Company secretary B J Abel

Independent auditors PricewaterhouseCoopers LLP 141 Bothwell Street Glasgow, G2 7EQ

Bankers

Barclays Bank plc 74 Shepherds Bush Green Shepherds Bush London W12 8QB

Commerzbank AG 30 Gresham Street London EC2V 7PG

96,061 Transplants for people in need*

11.2+ 21 Lifesaving blood million stem cell donations worldwide Potential donors each day registered

*Global DKMS statistics as of 31 December 2021

DKMS is the trading name of DKMS Foundation, a company limited by guarantee registered in England and Wales (08151279) and a charity registered in England and Wales (1150056) and Scotland (SC046917).