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2020-12-31-accounts

Charity Registration No. 1153618 (England and Wales) Company Registration No. 08325666

SWAROVSKI FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

SWAROVSKI FOUNDATION

CONTENTS

Page
Legal and Administrative Information 1
Report of the Trustees 2
Independent Auditors’ Report 10
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17

SWAROVSKI FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION

Trustee

Trustee
Nadja Swarovski
Paul van Zyl
Johnathan Edward Michener Baillie
Lorenza (aka Mimma) Viglezio
Helene Antonia vonDamm
Teri Ellen Schwartz
Marisa Schiestl-Swarovski
Melanie Grieder-Swarovski (appointed 23rdMarch 2021)
Director Jakhya Rahman-Corey
Bankers HSBC
9 The Boulevard
Crawley
West Sussex
RH10 1UT
Registered office 4thFloor
21 Sackville Street
London
Greater London
W1S 3DN
Statutory Auditor Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Company Registration No. 08325666 (England and Wales)
Charity Registration No. 1153618

Page 1

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees of the Swarovski Foundation present their annual report and financial statements for the year ended 31 December 2020, which are also prepared to meet the requirements of a directors’ report and accounts for Companies Act 2006 purposes.

The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2016, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard (FRS 102). The legal and administrative information on page 1 forms part of this report.

Constitution, objects and governance

The Foundation was incorporated on 11 December 2012 and is governed by its Memorandum and Articles of Association. The Trustees who have been in office during the period or up to the date of this report are listed on page 1.

The Memorandum and Articles of Association of the Foundation were updated in November 2016. The updated Memorandum and Articles of Association recognise that Nadja Swarovski is the sole member of the Foundation and has the right to appoint Trustees (directors) by way of an ordinary resolution.

The Foundation has created documents to support Trustees onboarding including but not limited to a Policy Handbook, highlighting the roles and responsibilities of Trustees.

The Trustees consider the Board of Trustees and the Director as comprising the key management personnel. The Trustees are responsible for the strategic direction of the Foundation, and they delegate day to day financial and operational responsibilities and administration to the Director.

No trustee remuneration was paid during the year. Details of any trustee expenses and related party transactions are disclosed in notes 5 and 11 of the financial statements.

The remuneration of the Foundation’s Director is reviewed annually, utilising the Swarovski Global Grading System, which is a globally aligned methodology of role evaluation that enables external comparatives and internal equity, and is overseen by the global management consulting expert, Mercer.

The Foundation operates a well-documented and appropriate methodology in relation to the declaration of interest. As part of an annual review, the Trustees attention is drawn to an outline of good practice based on guidance issued by the Charity Commission. The Foundation has in place a policy on conflicts of interest and loyalty, and the Trustees regularly disclose any actual or potential conflicts of interest.

The Trustees are aware of the principles of the 2017 Charity Governance Code for larger charities: organisational purpose, leadership, integrity, decision making, risk & control, board effectiveness, diversity and openness and accountability. The Charity Governance Code was refreshed in December 2020 to expand the diversity principle into equality, diversity and inclusion and to expand the integrity principle. The Swarovski Foundation Policy Handbook is updated regularly to reflect these changes. Furthermore, Trustees have received Charity Commission: The Essential Trustee Guidance (CC3) and Charity Commission: The hallmarks of an effective charity (CC10).

Page 2

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

The Foundation’s objects as set out in its Memorandum of Association are for such purposes as:

“The relief of sickness and the preservation of health among people residing throughout the world; the advancement of art, culture and heritage; the promotion for the benefit of the public of conservation protection and improvement of the physical and natural environment; the promotion of human rights (as set out in the Universal Declaration of Human Rights and subsequent United Nations conventions and declarations) throughout the world.”

Strategy, objectives, and activities

The Swarovski Foundation’s vision is to connect to the philanthropic spirit of Swarovski’s business founder who stated “a precondition of your long-term success is that you endeavour to think not only of yourselves but also of your fellow human beings. Those who adhere to this condition will certainly be blessed with success.” Daniel Swarovski (Founder of the Swarovski Business)

Main objectives

The Swarovski Foundation’s mission is to create impact through grants, awareness and action, across three areas of focus - culture and creativity, human empowerment and the environment, through global partnerships.

Strategies for achieving stated objectives:

The Sustainable Development Goals (SDGs) and Sustainability - The Sustainable Development Goals or Global Goals are a collection of 17 interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all". The SDGs were set in 2015 by the United Nations General Assembly and are intended to be achieved by the year 2030. Since 2018, the Swarovski Foundation has been aligning with the SDGs. This framework underpins the strategy of the Foundation to deliver our objective and help drive impact.

The SDGs are the best practice for modern philanthropy, providing unifying language to find and collaborate with partners working toward the same goals and thus by collaborating with grantees, the process of aligning with the SDGs yields greater impact.

Page 3

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Furthermore, Sustainable Development refers to the many processes and pathways to achieve Sustainability. Sustainability is a paradigm for thinking about the future in which environmental, societal, and economic considerations are balanced in the pursuit of an improved quality of life. There are four identified dimensions to sustainable development - social, natural/environmental, political and economic. The Swarovski Foundation aligns to social sustainability (achieve peace, equality and human rights) and environmental sustainability (conservation, all living things, resources and life support systems).

Global Partnerships – We work with and provide grants to global charities and institutions to deliver our objectives. All grants are subject to assessment to ensure alignment to our values, code of conduct and the strategic objectives of the Swarovski Foundation.

Community Engagement – Nadja Swarovski shares “money is not the only currency” as we can use human power to create change, such as volunteering. The Foundation seeks to empower Swarovski employees globally to understand engagement opportunities to volunteer and/or fundraise for charities which can create further impact for Foundation partners.

Significant activities that contribute to the achievement of the stated objectives in the year ending 31 December 2020:

The Sustainable Development Goals (SDGs) - The Swarovski Foundation is committed to supporting the 17 Sustainable Development Goals; we believe in the power of the global goals to shape a better world. Our Foundation focuses on eight key goals which most closely link to our partners’ work and the communities we reach including but not limited to No Poverty (Goal 1), Quality Education (Goal 4), Gender Equality (Goal 5), Clean Water and Sanitation (Goal 6), Decent Work and Economic Growth (Goal 8), Life Below Water (Goal 14), Life on Land (Goal 15) and Partnerships for the Goals (Goal 17). All partners of the Swarovski Foundation must align with the SDGs and promote sustainability.

Global Partnerships – Since 2013, the Swarovski Foundation has reached over 600,000 people through partnerships with 55 organisations across 47 countries. In 2020 The Swarovski Foundation has supported 21 organisations in 24 different countries, reaching a total of 83,000 people; 45,000 of those under the pillar of Culture and Creativity, 18,000 under the pillar of Human Empowerment and 20,000 under the Environment.

Community Engagement - The Swarovski Foundation believes in the power of engaging both external and internal stakeholders to involve them in its work and be one of our partners. The Swarovski Foundation regularly sets up various engagement activities that aim to drive both more awareness and concrete actions to activate change. In 2020 the Swarovski Foundation has carried out engagement efforts for its workforce especially in the first months of the year before the pandemic hit - reaching a total of 40 employees (through its first lunch lecture in Gdansk, Poland and a Swarovski Waterschool training for Swarovski employees in Austria and raising more than 2,100 Euros in support of Women for Women International - and again towards the end of the year with new virtual engagement formats that allowed employees from all over the world to take part.

Page 4

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Delivering Objectives During COVID-19 - The Swarovski Foundation recognises that COVID-19 had increased inequality leaving a devastating impact on individuals, organisations and economies. Whilst the Swarovski Foundation does not deliver services directly to beneficiaries, we considered during such challenging times that we must uphold longstanding charity partnerships, so that they are able to deliver the necessary support needed to beneficiaries. Our charity partners had shown such resilience and creative measures to deliver their work safely on the ground, as well as virtually, reaching over 100,000 people. We know the ripple effects of the pandemic continue, and therefore the Swarovski Foundation will continue to observe the situation and will adapt to any changes necessary to achieve the greatest positive social and environmental impact.

Some examples of partners aligning with Foundation strategic areas year ending 31 December 2020:

Page 5

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Financial Review

Incoming resources of £760,138 (2019: £635,139) were received in the year, primarily in the form of grants from Swarovski AG, whilst resources of £459,761 (2019: £1,083,536) were expended within the year. In addition to these amounts, the Statement of Financial Activities also recognises incoming resources and equivalent expenditure of £393,462 (2019: £322,836) representing an estimate of services donated by the Swarovski Group in 2020 in respect of employee time in the management of the grants programme, legal services and finance and administration services.

The trustees recognise the full value of multi-year grant commitments in the year in which the Swarovski Foundation create a legal or constructive obligation, and where the terms of the related agreement support this accounting treatment.

As a result, at 31 December 2020, the net liabilities of the Swarovski Foundation amounted to £138,198 (2019: £403,977). The net liabilities position recognises a decrease of £265,779 in 2020’s net liabilities compared to 2019, when several new multi-year grants were made. Swarovski AG provide Trustees with an undertaking on an annual basis in the form of a letter of support that the full value of multi-year grant commitments will be met as the future payment instalments arise.

Page 6

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Reserves Policy

As noted above, as at 31 December 2020, the Foundation is in a negative reserves position of £139,198 (2019: £403,977).

The Foundation operates within the confines of a project budget that is reviewed and approved by the Board of Trustees. The Foundation is provided with funding by Swarovski AG on an unrestricted basis. Within these unrestricted funds, certain funds have been designated by Trustees for future projects, but this remains at their discretion.

The negative reserves position in 2020 arises from a timing difference between income received to fund grant commitments and the recording of multi-year grant commitments as a liability on the balance sheet. The Trustees have received confirmation from Swarovski AG that funding will be provided as the need to make payment of grant instalments arises in the form of a letter of support, and accordingly the Trustees have satisfied themselves that the Foundation remains a going concern and the going concern basis of accounting remains appropriate.

Future Considerations and COVID-19

The Swarovski Foundation will continue in its vision to spark change for good through awareness and action, by supporting culture and creativity, promoting human empowerment, and preserving the environment, through global partnerships (as stated above).

The Swarovski Foundation recognises that COVID-19 is having a devastating impact on individuals, organisations and economies, and the ultimate outcome remains uncertain. Whilst the Swarovski Foundation does not deliver services directly to beneficiaries, it recognises that its grants support charity organisations to fulfil this service. Therefore, during these challenging times the Swarovski Foundation considers it important to uphold longstanding charity partnerships, so that they can deliver the necessary support needed to beneficiaries.

The Swarovski Foundation will continue to observe the situation and will adapt to any changes necessary to achieve the greatest positive social impact.

Grant Making Policy

The Swarovski Foundation has determined the following policy for Grant making purposes.

Principles

In awarding Grants, the Trustees apply the following principles:

Page 7

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Exclusions

The Swarovski Foundation does not accept unsolicited Grant requests.

All Grant applications are subject to the Board’s approval. Trustees shall not approve the use of any Grant funds that fall outside of the Swarovski Foundation mission and objectives. The number of projects which can be supported by the Swarovski Foundation is, of necessity, limited to the amount of funds available for distribution in any one year.

Risk Management

The Trustees have examined the major strategic, business, and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks.

The financial risk of not being able to pay grant instalments when due is mitigated by the letter of support provided by Swarovski AG, noted on page 7. The operational risk that the funds may not be used for the purpose granted is mitigated both by the frequent contact with charity partners, as well as the process of funding grants in two tranches, with the second tranche not paid until satisfactory progress has been made. While the reputational risk of being associated with an errant charity partner is of concern to all charitable organisations, the Foundation attempts to lessen this through its due diligence process. In addition, the Foundation does not deal directly with beneficiaries of our charity partners.

Fundraising

The Trustees are aware of the additional disclosure requirements and guidance of The Charities (Protection and Social Investment) Act 2016; the updated Charity Commission’s guidance - Charity fundraising trustee duties (CC20); and the Institute of Fundraising handbook - Trustees and fundraising: a practical handbook; however, as the Foundation does not raise funds via direct contact with the general public, these are considered to be not applicable at the present time.

COVID-19 Risk Management

The Swarovski Foundation is funded by Swarovski AG, and does not rely on fund-raising for its income. It has no staff of its own, and services of several UK and Austrian-based staff are donated by the Swarovski businesses in those countries. It has no volunteers.

The Swarovski Foundation does not deliver services directly to beneficiaries, but funds other charitable organisations. Its primary financial asset is cash, it does not have investments. Likewise, its primary financial liabilities are the grants payable to its charity partners; there are no pension or other financial liabilities.

Swarovski Foundation is in close contact with its charity partners to understand how the crisis is impacting these organisations.

The overall Swarovski business is financially healthy, yet like many retail businesses, had felt the liquidity impact of Covid-19 with a large number of stores closed globally during 2020 and early 2021, but many are now reopen and on-line sales healthy. Swarovski AG is expected to continue to support the Swarovski Foundation as it has in the past.

Page 8

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees are mindful that as a corporate foundation, the Swarovski Foundation is supported by the wider business and specifically by Swarovski AG, and share confidence in the Swarovski group. The Swarovski Foundation is part of the overall group budgeting and rolling forecast processes.

Trustees’ responsibilities statement

The Trustees (who are also directors of the Swarovski Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees 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 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:

The Trustees are responsible for keeping proper 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Provision of information to the auditor

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees has confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

On behalf of the board

………………………………. N Swarovski Trustee

12 July 2021

Page 9

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of Swarovski Foundation for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit

Page 10

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2020

or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Opinions 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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 to do so.

Page 11

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2020

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with informed management, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with informed management and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include the Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Page 12

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2020

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Liz Hazell (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

71 Queen Victoria Street Chartered Accountants London Statutory Auditors EC4V 4BE

Date:

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 13

SWAROVSKI FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income:
Donations and legacies
2, 8
Total Income
Expenditure:
Expenditure on charitable activities
3, 8
Total expenditure
Net income / (expenditure)
Other gains /(losses) - foreign exchange
Net movement in funds for the year
Total funds / (deficit) brought forward
Total (deficit) / funds carried forward
8
2020
Unrestricted &
total funds
£
1,153,600
1,153,600
853,222
853,222
300,378
(34,599)
265,779
(403,977)
(138,198)
2019
Unrestricted
& total funds
As restated
£
957,975
957,975
1,406,372
1,406,372
(448,397)
2,062
(446,355)
42,358
(403,977)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 17 to 25 form part of these financial statements. Note 15 shows the impact of the prior year restatement.

Page 14

SWAROVSKI FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Current assets
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
within one year
6
Net current (liabilities) / assets
Creditors: amounts falling due
after one year
7
Net (liabilities) / assets
Funds
Unrestricted funds
General funds
Designated funds
Total (deficit) / funds
8
2020

£
514,872
514,872
(619,245)
(104,373)
(33,825)
(138,198)
(296,048)
157,850
(138,198)
2019
As restated
£
547,239
547,239
(481,296)
65,943
(469,920)
(403,977)
(446,697)
42,720
(403,977)

The notes on pages 17 to 25 form part of these financial statements.

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

Approved and authorised for issue on behalf of the Trustees by:

…………………………….... Trustee N Swarovski

………………………………. 2021 12 July

Company Registration No. 08325666 (England and Wales)

Page 15

SWAROVSKI FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note

Cash flow from / (used in) operating activities:
Net cash provided by operating activities
and change in cash and cash equivalents
in the reporting period13
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the reporting period
2020
£
(32,367)
547,239

514,872
2019
£
45,324
501,915
547,239

Page 16

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Swarovski Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 2[nd] floor, 21 Sackville Street, London W1S 3DN.

The principal accounting policies adopted, judgements and key sources of estimating uncertainty in the preparation of the financial statements are as follows:

1.1 Accounting convention

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 (FRS 102), Charities SORP (FRS 102), and the Companies Act 2006.

The Swarovski Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at the historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the financial currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.

The 2019 financial statements have been restated to reflect the reclassification of the charitable grant-making activity for the Swarovski Foundation Community Engagement programme as a designed fund rather at 31 December 2019, rather than a grant payable. The impact of this is shown in note 15.

1.2 Going concern

The net deficit position in the financial statements arises from a timing difference between income received to fund grant commitments and the recording of full grant commitments as a liability on the balance sheet. The Trustees have received confirmation from Swarovski AG that funding will be received from Swarovski AG as the need to make payment of grant instalments arises. Accordingly, the Trustees have satisfied themselves that the Foundation remains a going concern and the going concern basis of accounting remains appropriate.

1.3 Income

1.3.1 Donations and gifts

Income is recognised in the period in which there is probability of receipt, the charity is entitled to receipt and the amount can be measured with reasonable certainty.

1.3.2 Donated services

Donated services are recognised as income and expenditure in the financial statements when companies and individuals provide their professional expertise pro bono. The value of these donated services is considered to be equivalent to the market value which would have been paid by the Foundation had the service been formally procured.

Page 17

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

1.4 Expenditure

Expenditure is included on an accruals basis including irrecoverable VAT. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Foundation to the expenditure.

1.4.1 Grants

The value of grants is recognised in full as expenditure in the year when the Foundation creates a legal or constructive obligation, even where they may be multi-year in nature. Typically, this arises when an unconditional grant offer has been communicated to the recipient. The notification gives the recipient a reasonable expectation that they will receive the one year or multi-year grant.

Restricted funds are funds received where the donor has indicated that they can only be spent on specific projects.

1.6 Foreign currency translation

1.7 Areas of judgement and uncertainties

Donated services have been estimated and consist of staff time and consultancy services donated by Swarovski UK, Swarovski North America and D Swarovski KG in respect of management of the grants programme, legal services and finance and administration services.

1.8 Financial instruments

Page 18

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Voluntary income

Voluntary income


Donation–Swarovski AG
Donated service-Swarovski North America
Donated service–Swarovski UK
Donated service–D Swarovski KG
2020
£
760,138
43,823
279,887
69,752
1,153,600
2019
£
635,139
-
251,958
70,878
957,975

Donated services have been estimated and consist of staff time and consultancy services donated by Swarovski UK, Swarovski North America and D Swarovski KG in respect of management of the grants programme, legal services and finance and administration services.

3 Charitable activities

Grant making 2020 2019
As restated
£ £
The Nature Conservancy - 260,370
British Red Cross - 34,588
Blue Marine Foundation - 43,235
NAACP LDF 22,350 -
Equal Justice Initiative 22,652 -
Jane Goodall 26,169 -
Teach for Thailand 34,892 -
Room to Read 34,892 -
UNFPA 45,165 -
VOW to End Child Marriage 9,033 -
Turquoise Mountain 27,099 -
Conservation International - 43,235
Australian Red Cross 42,720 -
Plastic Ocean Project (2019: cancelled) - (78,000)
Barefoot College 34,892 -
Nest Inc 824 195,278

Page 19

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

Charitable activities (continued)

Identity 2020
FIT Foundation
Whitechapel Gallery
Women for Women
Central Saint Martins
Mothers 2 Mothers
Street Business School
(was previously Bead for Life)
Sustainable Ocean Alliance
Superar
Waterkeepers
Teach for Austria
Support costs (see below, next page)
Governance costs (Note 4)
Support costs:
Grant administration
Finance and administration
Legal and professional
2020

£
4,565
3,918
25,000
43,615
27,099
43,615
-
-
-
-
-
365,680
39,041
853,222
2020
£
340,166
7,986
17,528
365,680
2019
As restated
£
-
-
8,647
52,074
-
52,075
43,395
86,470
25,940
43,235
260,370
288,280
47,180
1,406,372
2019
£
262,638
7,957
17,685
288,280

Included above is a notional cost of £365,680 in respect of donated services (2019: £288,280).

Page 20

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Governance costs

Legal, professional, finance and administration
Audit and accountancy
Communication & Promotion
Other support costs
2020
£
26,146
10,200
1,635
1,060
39,041
2019
£
34,555
9,240
2,365
1,020
47,180

Included above is a notional cost of £27,782 in respect of donated services (2019: £34,556).

Net income / (expenditure) is stated after charging:

2020 2019
£ £
Auditors’ remuneration 10,200 9,240

5 Staff costs, trustee remuneration and expenses, and the cost of key management personnel

The Foundation has no directly employed staff and engages the services of key management personnel and staff employed by Swarovski UK, Swarovski North America and D Swarovski KG in respect of the management of the grants programme, legal services and finance and administration services. The aggregate cost of this was £393,462 (2019: £322,835).

The trustees received no remuneration nor had any expenses reimbursed during the period.

The total employee benefits of the key management personnel of the Foundation were £90,935 (2019: £84,229).

6
Creditors: amounts due within one year
Accruals
Other creditors – grants payable
2020
£
10,200
609,045
619,245
2019
As restated
£
9,240
472,056
481,296

Page 21

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020


7
Creditors: amounts due after one year
2020
£
Grants payable (due within 1-2 years)
33,825
33,825
8
Funds
2020
Funds
b/fwd
Incoming
resources
Resources
expended
Gains/
(Losses)
£
£
£
£
General unrestricted funds
(446,697)
1,040,687
(853,222)
(36,816)
Designated funds:
Community Engagement
42,720
-
-
2,380
Creatives for Our Future
-
112,913
-
(163)
Total funds
(403,977)
1,153,600
(853,222)
(34,599)
2019, as restated
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
£
£
£
£
General unrestricted funds
42,358
914,740
(1,406,372)
2,577
Designated funds:
Community Engagement
-
43,235
-
(515)
Creatives for Our Future
-
-
-
-
Total funds
42,358
957,975
(1,406,372)
2,577

7
Creditors: amounts due after one year
2020
£
Grants payable (due within 1-2 years)
33,825
33,825
8
Funds
2020
Funds
b/fwd
Incoming
resources
Resources
expended
Gains/
(Losses)
£
£
£
£
General unrestricted funds
(446,697)
1,040,687
(853,222)
(36,816)
Designated funds:
Community Engagement
42,720
-
-
2,380
Creatives for Our Future
-
112,913
-
(163)
Total funds
(403,977)
1,153,600
(853,222)
(34,599)
2019, as restated
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
£
£
£
£
General unrestricted funds
42,358
914,740
(1,406,372)
2,577
Designated funds:
Community Engagement
-
43,235
-
(515)
Creatives for Our Future
-
-
-
-
Total funds
42,358
957,975
(1,406,372)
2,577
2019
£
469,920
469,920
Deficit
c/fwd
£
(296,048)
45,100
112,750
(403,977)
1,153,600
(853,222)
(34,599)
(138,198)
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
£
£
£
£
42,358
914,740
(1,406,372)
2,577
-
43,235
-
(515)
-
-
-
-
Funds
c/fwd
£
(446,697)
42,720
-
42,358
957,975
(1,406,372)
2,577
(403,977)

The Community Engagement programme supports individual charitable initiatives; it has been delayed due to office closures from Covid-19 restrictions. Creatives for Our Future is a new global grant programme designed with advisor the United Nations Office for Partnerships to identify and accelerate the next generation of creative leaders in sustainability. It has already commenced in 2021.

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SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

9 Analysis of net assets by fund

2020
Cash at bank Current Assets/ Creditors Total
Liabilities Over 1 year
£ £ £ £
Funds
Unrestricted funds
General funds 357,022 (619,245) (33,825) (296,048)
Designated funds 157,850 - - 157,850
____ ____ ____ ____
514,872 (619,245) (33,825) (138,198)
____ ____ ____ ____
2019, as restated
Cash at bank Current Assets/ Creditors Total
Liabilities Over 1 year
£ £ £ £
Funds
Unrestricted funds
General funds 504,519 (481,296) (469,920) (446,697)
Designated funds 42,720 - - 42,720
____ ____ ____ ____
547,239 (481,296) (469,920) (403,977)
____ ____ ____ ____

10 Company status

In the case of winding up, each member (who is also a trustee) has guaranteed to contribute an amount not exceeding £10 (2019: £10).

11 Controlling party

The Swarovski Foundation is controlled by its Trustees. Nadja Swarovski is the sole member of the Swarovski Foundation and may have a greater degree of control than the other Trustees in some respects, as defined by the updated Memorandum and Articles of Association.

12 Related party transactions

During the year, Swarovski AG donated £760,138 (2019: £635,139) to the Foundation. Additionally, D Swarovski KG donated services valued at £69,752 (2019: £70,878). Swarovski UK donated services valued at £279,887 (2019: £251,958) and Swarovski North America donated services to the Foundation of £43,823 (2019: Nil) (see note 2). Swarovski AG, D Swarovski KG, Swarovski North America and Swarovski UK are considered related parties of the Foundation by virtue of N Swarovski,

Page 23

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

who is a Trustee of the Foundation and exerts significant influence over Swarovski AG, D Swarovski KG and Swarovski UK by virtue of her role on the Executive Board of the Swarovski Group.

In 2019, Paul van Zyl, a trustee of the Swarovski Foundation, was also a trustee of Nest Inc, which received a 3-year grant of £195,278 during the year. Mr van Zyl abstained from any involvement or voting on proposals relating to Nest Inc.

There were no other related party transactions in the year.

13 Reconciliation of net movement in funds to net cash flow from operating activities

Net (expenditure) / income for the reporting period (as per the
statement of financial activities)
Adjustments for:
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash (used in) / provided by operating activities
2020
2019
As restated
£
£
265,779
(446,335)
-
4,500
(298,146)
487,159
(32,367)
45,324
14
Analysis of changes in net debt
2020
Cash
Total
2019
Cash
Total
At start of
year
£
547,239
547,239
At start of
year
£
501,915
501,915
Cashflows
£
(32,367)
(32,367)
Cashflows
£
45,324
45,324
At end of
year
£
514,872
514,872
At end of
year
£
547,239
547,239

Page 24

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Impact of prior year adjustment

Changes to balance sheet As previously Adjustment As restated at
reported at 31 (see below 31 December
December 2019 explanation) 2019
£ £ £
Current assets
Cash at bank 547,239 547,239
Liabilities
Creditors: amounts falling due within one year (524,016) 42,720 (481,296)
____ ____ ___
Net current assets 23,223 42,720 65,943
Creditors: amounts falling due after one year (469,920) (469,920)
____ ____ ____
Net assets (446,697) 42,720 (403,977)
Funds
Unrestricted general funds (446,697) - (446,697)
Designated funds - 42,720 42,720
___ ____ ____
Total funds (446,697) 42,720 (403,977)
Changes to statement of financial activities
Income
Donations and legacies 957,975 - 957,975
Expenditure
Expenditure on charitable activities 1,449,607 (43,235) 1,406,372
____ ____ ____
Net (expenditure) / income (491,632) 43,235 (448,397)
Other gains / (losses) 2,577 (515) 2,062
____ ____ ____
Net movement in funds (489,055) 42,720 (446,335)
Funds brought forward 42,358 - 42,358
____ ____ ____
Funds carried forward (446,697) 42,720 (403,977)

The 2019 financial statements have been restated to reflect the reclassification of the charitable grant-making activity for the Swarovski Foundation Community Engagement programme as a designated fund at 31 December 2019, rather than a grant payable. Creditors and expenditure have been restated as a result of this.

Page 25