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2021-12-31-accounts

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

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS

Page
Legal and Administrative Information 1
Report of the Trustees 2
Independent Auditors’ Report 12
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19

SWAROVSKI FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION

Trustee Marisa Schiestl-Swarovski (Chairperson)
Helene Antonia von Damm
Evelyn Haim Swarovski (Appointment 25 Jan 2022)
Anouchka Rafail-Vogiatzakis (Appointment 11 Feb 2022)
Nadja Swarovski (Resignation 31 Dec 2021)
Paul van Zyl (Resignation 21 Jan 2022)
Jonathan Edward Michener Baillie (Resignation 24 Jan 2022)
Lorenza (aka Mimma) Viglezio (Resignation 21 Jan 2022)
Teri Ellen Schwartz (Resignation 4 Feb 2022)
Melanie Grieder-Swarovski (Resignation 4 Feb 2022)
Director Jakhya Rahman-Corey
Bankers HSBC
9 The Boulevard
Crawley
West Sussex
RH10 1UT
Registered office 1st Floor, Building 4 Chiswick Park,
566 Chiswick High Road,
London,
W4 5YE
Independent Statutory Auditor Saffery Champness LLP
71 Queen Victoria Street
London
EC4V 4BE
Company Registration No. 08325666 (England and Wales)
Charity Registration No. 1153618

1

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees of the Swarovski Foundation present their annual report and financial statements for the year ended 31 December 2021, 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 and governance

The Swarovski 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 Swarovski Foundation were updated in February 2022. The updated Memorandum and Articles of Association recognise that Marisa Schiestl-Swarovski is the sole member of the Foundation and has the right to appoint Trustees (directors) by way of an ordinary resolution. Furthermore, the Memorandum and Articles of Association removed the minimum number of Trustees required in office. The process of recruiting Trustees are under review by current Trustees and the Swarovski Foundation team. The initial process is to identify Trustee skillsets required by the organisation to fulfil its charitable objectives and subsequently seek Trustees with the relevant skills and experience to support the Swarovski Foundation.

The Swarovski 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 Swarovski 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 12 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.

2

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

The Swarovski 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. Furthermore, there is an extensive due diligence framework to ensure the pursuit of the public benefit and the mitigation of risk of support charities and/or organisations in accordance to Charity Commission guidance.

The Trustees are aware of the principles of the Charity Governance Code for larger charities: organisational purpose, leadership, integrity, decision making, risk & control, board effectiveness, diversity, integrity and openness and accountability. 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).

SWAROVSKI FOUNDATION STRATEGY OBJECTIVES

Vision

Spark change for good

Mission

The Swarovski Foundation aims to build on its heritage to foster creativity, promote human empowerment, preserve the environment to achieve a more inclusive and equitable society whilst creating protections for the environment

Striving for Impact

The United Nations Sustainable Development Goals (SDGs) 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 are the best practice for modern philanthropy, providing a 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 achieves greater impact.

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. Currently, we have identified 8 global goals that we aim to follow and incorporate into the Swarovski Foundation strategy.

3

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives

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

SWAROVSKI FOUNDATION VISUALISATION OF STRATEGIC OBJECTIVES

Image Credits to Swarovski Foundation Charity Partners: Nest, Mothers2Mothers, Room to Read, Blue Marine Foundation and The Nature Conservancy

4

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Delivering Objectives

The Swarovski Foundation as a grant giving body seeks to empower organisations through grants, advocacy and engagement to fulfil our mission for a more inclusive and equitable society whilst creating protections for the environment.

Therefore, the Swarovski Foundation role in addition to delivering grants is to communicate, advocate and engage society to mobilise effective and sustainable change. For example, by raising awareness and advocating causes to global Swarovski employees could lead to future volunteer and/or fundraise opportunities for charities which can create further positive impact.

Significant activities that contribute to the achievement of the stated objectives in the year ending 31 December 2021:

Global Partnerships – In 2021 The Swarovski Foundation has supported 24 organisations and 3 global emergencies in 38 different countries, reaching a total of 25,875 people directly: 5,053 of those under the pillar of Culture and Creativity, 14,212 under the pillar of Human Empowerment and 6,610 under the pillar of Environment.

Advocacy and Engagement - The Swarovski Foundation believes in the power of engaging both internal and external stakeholders to create a ripple effect of impact. The Swarovski Foundation regularly sets up various engagement activities that aim to drive both more awareness and concrete actions to activate change.

In 2021, the Swarovski Foundation carried out various advocacy and engagement efforts with a focus on digital engagement due to the limitations of the global pandemic by organising 8 virtual in conversation events which allowed our stakeholders to join from all over the world. Over 35 email marketing newsletters were distributed to our network to keep them informed and educated on the work of our partners. Raised awareness of key topics across all of our digital platforms including Instagram through 600 posts reaching 576,000 people and the Swarovski Foundation website reaching 15,000 users with an above average user time of 2 minutes.

5

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Significant activities that contribute to the achievement of the stated objectives in the year ending 31 December 2021:

Launch of a new programme – Creatives for our Future - Due to the COVID-19 pandemic many creative talents experienced many challenges to access the creative industry. At the Swarovski Foundation, we reflected the impact this caused not only for creativity but also for society and the environment, as many creative and innovative solutions help people and planet.

In April 2021, the Swarovski Foundation launched a programme called Creatives For Our Future, a global mentorship and grant initiative, in collaboration with the United Nations Office for Partnerships. The programme sought to identify and accelerate the next generation of creative leaders in sustainable development.

Creatives For Our Future builds on the Swarovski Foundation’s commitment to foster creativity that will drive positive change through cultural, educational and advocacy collaborations. The cornerstone of the Swarovski Foundation’s work is the 17 Sustainable Development Goals, in turn these goals were the anchor for our Creatives For Our Future programme.

Creatives For Our Future was an open-submission initiative, to which creatives aged 18 to 25 of all nationalities were invited to enter ideas for sustainable innovation. The Swarovski Foundation received 400 submissions from 72 countries, from which nine successful applicants were chosen.

They come from nine different countries, and represent a wide range of disciplines, including fashion, product design, biotechnologies, architecture, engineering and the visual arts. All share a focus on sound environmental and human practices.

The programme aimed to leverage the Swarovski Foundation’s ability to combine investment and education with a stakeholder network crossing borders and industries. As well as funding, the Swarovski Foundation assembled an international team of 28 advocates to provide tailored mentorship and training, making the programme a unique digital teaching and learning platform.

The cohort embarked on the eight-month program and taking in a week-long digital summit which featured some of the world’s leading thinkers in sustainability and creativity. The cohort presented their final projects at a virtual graduation event in December 2021.

Please find enclosed here the Creatives for our Future Impact report, for more information: (LINK)

6

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Future Considerations and COVID-19

A year on from the start of the COVID-19 pandemic, and the impact continues to be felt in society and charities.

The Swarovski Foundation recognises that COVID-19 had 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 their objective.

Many of the Swarovski Foundation charity partners shared their concern of funds withdrawn from them as other funders redirected efforts to other causes. 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

In awarding Grants, the Trustees apply the following principles:

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.

7

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

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 9. 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.

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, US and Austrian-based staff are donated by the Swarovski businesses in those countries. It has no volunteers.

Its primary financial asset is cash, it does not have investments. Likewise, its primary financial liabilities are the grants payable to its charity partners and programs; 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.

8

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Financial Review

Incoming resources of £1,291,607 (2020: £760,138) were received in the year, primarily in the form of grants from Swarovski AG, whilst resources of £1,150,498 (2020: £459,761) were expended within the year. In addition to these amounts, the Statement of Financial Activities also recognises incoming resources and equivalent expenditure of £462,510 (2020: £393,462) representing an estimate of services donated by the Swarovski Group in 2021 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 2021, the net assets of the Swarovski Foundation amounted to £9,417 (2020: net liabilities of £138,198). The net asset position is positive compared to 2020, as incoming funding for a designated funds programme (Creatives for Our Future) was received in 2021, but charitable activities will be recognised in 2022. 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.

Reserves Policy

As noted above, as at 31 December 2021, the Foundation is in a positive reserves position of £9,417 (2020: negative reserves of £138,198). The Foundation does not have a specific reserves target, and is supported by the wider business, and specifically Swarovski AG, who funds the Foundation on an as-needed basis.

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 such as the Creatives for Our Future programme, but this remains at their discretion.

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.

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.

9

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

10

SWAROVSKI FOUNDATION REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

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

………………………………. M Schiestl-Swarovski Trustee

31 August 2022

11

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of Swarovski Foundation for the year ended 31 December 2021 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.

12

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS (continued) YEAR ENDED 31 DECEMBER 2021

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 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 Trustees’ Annual Report.

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:

13

SWAROVSKI FOUNDATION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS (continued) YEAR ENDED 31 DECEMBER 2021

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 10, 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.

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 the trustees, 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 trustees 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.

14

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.

There are inherent limitations in the audit procedures described above and the further removed non-compliance 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.

Claire Wills (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

71 Queen Victoria Street Chartered Accountants London Statutory Auditors EC4V 4BE Date: 07 September 2022 Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

15

SWAROVSKI FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

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 funds / (deficit) carried
forward
8		 2021
Unrestricted
& total funds
£
1,754,117
1,754,117
1,613,007
1,613,007
141,110
6,505
147,615
(138,198)
9,417		 2020
Unrestricted
& total funds
£
1,153,600
1,153,600
853,222
853,222
300,378
(34,599)
265,779
(403,977)
(138,198)

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 19 to 28 form part of these financial statements.

16

SWAROVSKI FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Current assets
Cash at bank and in hand
Prepayments
Liabilities
Creditors: amounts falling due
within one year
6
Net current assets / (liabilities)
Creditors: amounts falling due
after one year
7
Net assets / (liabilities)
Funds
Unrestricted funds
General funds
Designated funds
Total funds / (deficit)
8		 2021
£
564,424
32,500
596,924
(455,523)
141,401
(131,984)
9,417
(184,678)
194,094
9,417		 2020
£
514,872
-
514,872
(619,245)
(104,373)
(33,825)
(138,198))
(296,048)
157,850
(138,198)

The notes on pages 19 to 28 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:

On behalf of the board

……………………………….

M Schiestl-Swarovski Trustee

31 August 2022

17

SWAROVSKI FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

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		 2021
£
49,552
514,872

564,424		 2020
£
(32,367)
547,239
514,872

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

1 Accounting policies

Swarovski Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 4th 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 £.

1.2 Going concern

Total funds were positive in 2021, although there was a deficit in unrestricted general funds. This 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.

1.3.3 Investment income

Investment income is accounted for on a receivable basis.

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SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

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.

1.4.2 Governance costs

Governance costs are the costs involved in the constitutional and statutory aspects of running the Foundation as a legal entity.

1.4.3 Advocacy and Engagement and Other costs

Other direct and support costs are allocated to the appropriate activity as the cost is incurred, or on the basis of the estimated time spent on the activity.

1.5 Funds

Unrestricted Funds comprise those funds, which the trustees are free to use in accordance with the charitable objects. Designated funds are unrestricted funds of the Foundation which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are funds received where the donor has indicated that they can only be spent on specific projects. There were no restricted funds in 2021 nor 2020.

1.6 Foreign currency translation

Foreign currency transactions are translated into pounds sterling at the exchange rate prevailing at the transaction date. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date.

1.7 Areas of judgement and uncertainties

In the application of the Foundation’s accounting policies, the trustees are required to make judgements, estimates and assumptions. These are based on historical experience and other relevant factors. The estimates and underlying assumptions are reviewed on an ongoing basis.

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.

20

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

1.8 Financial instruments

The Foundation only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. There were no bank loans in the year.

2 Voluntary income

Voluntary income
Donation–Swarovski AG
Donated service-Swarovski North
America
Donated service–Swarovski UK
Donated service–D Swarovski KG
Donation – other funding		 2021
£
1,283,694
105,910
286,208
70,392
7,913
1,754,117		 2020
£
760,138
43,823
279,887
69,752
-
1,153,600

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.

21

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Charitable activities
Grant making 2021 2020
£ £
Womankind 17,200 -
CFDA 116,100 -
Blue Marine Foundation 64,343 -
NAACP LDF - 22,350
Equal Justice Initiative 64,343 22,652
Jane Goodall - 26,169
Teach for Thailand - 34,892
Room to Read 4,516 34,892
UNFPA 4,517 45,165
VOW to End Child Marriage (2021 (9,033) 9,033
cancelled, reallocated)
Turquoise Mountain - 27,099
Conservation International 42,895 -
Australian Red Cross - 42,720
Design Museum 64,342 -
Barefoot College - 34,892
Identity 2021
 - 4,565
FIT Foundation - 3,918
Whitechapel Gallery - 25,000
Women for Women 42,825 43,615
Central Saint Martins 128,685 27,099
Mothers 2 Mothers 42,851 43,615
Fashion Council Germany 128,685 -
Nest Inc - 824
Young Minds 42,851 -
National Aids Trust 42,851 -

22

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Charitable activities (continued)
UNHCR
ACE
Reserved for Action Fund
Creatives for Our Future (grants to
individuals)
Subtotal Grants
Support costs (see below)
Governance costs (Note 4)
Support costs:
Grant administration
Advocacy and engagement
Finance and administration
Legal and professional		 2021
£
42,825
42,851
21,448
98,312
1,003,406
564,758
44,843
1,613,007
2021
£
413,708
132,787
5,920
12,343
564,758		 2020
£
-
-
-
-
448,501
367,315
37,406
853,222
2020
£
340,166
1,635
7,986
17,528


367,315

Included above is a notional cost of £431,971 in respect of donated services (2020: £367,315).

23

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

4
Governance costs
Legal,
professional,
finance
and
administration
Audit and accountancy
Other governance costs		 2021
£
30,538
11,040
3,265
44,843		 2020
£
26,146
10,200
1,060
37,406

Included above is a notional cost of £30,538 in respect of donated services (2020: £26,146).

Net income / (expenditure) is stated after charging:

2021 2020
£ £
Auditors’ remuneration 11,040 10,200

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 £451,075 (2020: £393,462).

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 £86,518 (2020 equivalent: £81,842).

24

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Creditors: amounts due within one year

Accruals
Other creditors – grants payable
Other creditors – advocacy and engagement contract		 2021
£
28,300
394,723
32,500
455,523		 2020
£
10,200
609,045
-
619,245
In addition to the £32,500 included in creditors, at the year end, the Foundation is also
contractually committed to a further spend of £32,500 in relation to engagement during
2022.
7 Creditors: amounts due after one year
2021 2020
£ £
Grants payable (due within 1-2 years)
131,985
33,825
131,985
33,825
8
Funds
2021
Funds
b/fwd
Incoming
resources
Resources
expended
Gains/
(Losses)
Funds
c/fwd
£
£
£
£
£
General unrestricted funds
(296,048)
1,608,274
(1,514,695)
17,792
(184,678)
Designated funds:
Employee programme
45,100
-
-
(3,200)
41,900
Creatives for our Future
112,750
145,843
(98,312)
(8,087)
152,194
Total funds
(138,198)
1,754,117
,
(1,613,007)
6,505
9,417
2020
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
Funds
c/fwd
£
£
£
£
£
General unrestricted funds
(446,697)
1,040,697
(853,222)
(36,816)
(296,048)
Designated funds:
Employee programme
42,720
-
-
2,360
45,100
Creatives for our Future
-
112,913
-
(163)
112,750
Total funds
(403,977)
1,153,600
(853,222)
(34,599)
(138,198)		 In addition to the £32,500 included in creditors, at the year end, the Foundation is also
contractually committed to a further spend of £32,500 in relation to engagement during
2022.
7 Creditors: amounts due after one year
2021 2020
£ £
Grants payable (due within 1-2 years)
131,985
33,825
131,985
33,825
8
Funds
2021
Funds
b/fwd
Incoming
resources
Resources
expended
Gains/
(Losses)
Funds
c/fwd
£
£
£
£
£
General unrestricted funds
(296,048)
1,608,274
(1,514,695)
17,792
(184,678)
Designated funds:
Employee programme
45,100
-
-
(3,200)
41,900
Creatives for our Future
112,750
145,843
(98,312)
(8,087)
152,194
Total funds
(138,198)
1,754,117
,
(1,613,007)
6,505
9,417
2020
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
Funds
c/fwd
£
£
£
£
£
General unrestricted funds
(446,697)
1,040,697
(853,222)
(36,816)
(296,048)
Designated funds:
Employee programme
42,720
-
-
2,360
45,100
Creatives for our Future
-
112,913
-
(163)
112,750
Total funds
(403,977)
1,153,600
(853,222)
(34,599)
(138,198)		 In addition to the £32,500 included in creditors, at the year end, the Foundation is also
contractually committed to a further spend of £32,500 in relation to engagement during
2022.
7 Creditors: amounts due after one year
2021 2020
£ £
Grants payable (due within 1-2 years)
131,985
33,825
131,985
33,825
8
Funds
2021
Funds
b/fwd
Incoming
resources
Resources
expended
Gains/
(Losses)
Funds
c/fwd
£
£
£
£
£
General unrestricted funds
(296,048)
1,608,274
(1,514,695)
17,792
(184,678)
Designated funds:
Employee programme
45,100
-
-
(3,200)
41,900
Creatives for our Future
112,750
145,843
(98,312)
(8,087)
152,194
Total funds
(138,198)
1,754,117
,
(1,613,007)
6,505
9,417
2020
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
Funds
c/fwd
£
£
£
£
£
General unrestricted funds
(446,697)
1,040,697
(853,222)
(36,816)
(296,048)
Designated funds:
Employee programme
42,720
-
-
2,360
45,100
Creatives for our Future
-
112,913
-
(163)
112,750
Total funds
(403,977)
1,153,600
(853,222)
(34,599)
(138,198)
(138,198)
1,754,117
,
(1,613,007)
6,505
9,417
Deficit
b/fwd
Incoming
resources
Resources
expended
(Losses)
/ Gains
Funds
c/fwd
£
£
£
£
£
(446,697)
1,040,697
(853,222)
(36,816)
(296,048)
42,720
-
-
2,360
45,100
-
112,913
-
(163)
112,750
(403,977)
1,153,600
(853,222)
(34,599)
(138,198)

25

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Funds (continued)

The employee programme supports individual charitable initiatives of the Swarovski employees; it has continued to be delayed due to office closures from Covid-19 restrictions. Creatives for our Future identifies and mentors young (age 18-25) creatives in a variety of areas. The 2021 programme funded in 2020 completed at the end of 2021, and the incoming resources in 2021 are for the 2022 programme.

9 Analysis of net assets by fund

2021
Cash at bank Other Creditors Total
Current
Assets/
Liabilities Over 1 year
£ £ £ £
Funds
Unrestricted funds
General funds 370,330 (423,023) (131,985) (184,678)
Designated funds 194,094 - - 194,094
____ ____ ____ ____
564,424 (423,023) (131,985) 9,416
____ ____ ____ ____
2020
Cash at bank Current Creditors Total
Assets/
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)
____ ____ ____ ____

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 (2020: £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.

26

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Related party transactions

During the year, Swarovski AG donated £1,283,694 (2020: £760,138) to the Foundation. Additionally, D Swarovski KG donated services valued at £70,392 (2020: £69,752). Swarovski UK donated services valued at £286,208 (2020: £279,887) and Swarovski North America donated services to the Foundation of £105,910 (2020: £43,823) (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, who is a Trustee of the Foundation and exerts significant influence over Swarovski AG, D Swarovski KG, Swarovski UK and Swarovski North America by virtue of her role on the Executive Board of the Swarovski Group. N Swarovski resigned from the Group in December 2021.

Marisa Schiestl-Swarovski, a trustee of the Swarovski Foundation, is also a trustee of Teach for Austria, which received a 3-year grant totalling £260,370 in 2019. Ms SchiestlSwarovski abstained from any involvement or voting proposals related to Teach for Austria.

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

13

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		 2021
2020
£
£
147,614 265,779
(32,500)
-
(65,562)
(298,146)
49,552
(32,367)

27

SWAROVSKI FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2021

14
Analysis of changes in net debt
2021
Cash
Total
2020
Cash
Total		 At start of
year

£
514,872
514,872
At start of
year

£
547,239
547,239		 Cashflows
£
49,552
49,552
Cashflows
£
(32,367)
(32,367)		 At end of
year
£
564,424
564,424
At end of
year
£
514,872
514,872

28