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2020-12-31-accounts

Company number: 08364475 Charity number: 1155570

Social Innovation Exchange Report and financial statements For the year ended 31 December 2020

Social Innovation Exchange

Contents

For the year ended 31 December 2020

Reference and administrative information 1
Executive Board members’ annual report 2
Independent examiner’s report 13
Statement of financial activities (incorporating an income and expenditure account) 15
Balance sheet 16
Statement of Cash Flows 17
Notes to the financial statements 18

Social Innovation Exchange

Reference and administrative information

For the year ended 31 December 2020

Company number 08364475
Charity number 1155570
Registered office 3-5 Hardwidge Street
and operational LONDON
address SE1 3SY
UK
Executive Board Executive Board members, who are also directors under company law, who
members served during the year and up to the date of this report were as follows:
Harvey Koh Chair
Marcello Palazzi
Geoff Mulgan
Ada Wong
Carolyn Curtis
Tim Draimin
Martin Cosarinsky
Kriss Deiglmeier
Principal staff Louise Pulford
So Jung Rim
Bankers Cooperative Bank
80 Cornhill
LONDON
EC3V 3NJ
Solicitors Bates Wells and Braithwaite
Scandinavian House
2-6 Cannon St
LONDON
EC4M 6YH
Independent Sayer Vincent LLP
examiners Chartered Accountants
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

The Executive Board present their report and the audited financial statements for the year ended 31 December 2020.

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

Part 1: Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 17 January 2013 and registered as a charity on 30 January 2014.

The company was established under a memorandum of association, which established the objects and powers of the charitable company and is governed under its articles of association.

All Executive Board members give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 10 to the accounts.

Executive Board

The Executive Board has the power to make decisions that will govern SIX. The responsibilities of the Executive Board are as follows:

Appointment of Executive Board members

Between four and eight Trustees can be appointed by the Trustees. If a new member is required they will be recruited following a Board review and skills audit of the existing Board.

Trustee induction and training

When a new member is appointed they are given an induction pack consisting of the memorandum and articles of association, the latest accounts, the business plan and the risk register. An induction programme is tailored to the skills and experience of the new member. Most new members are already familiar with the work of SIX.

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

Remuneration policy for key management personnel

The Director’s salary is reviewed and set by the Board.

Global Council and Advisors

SIX takes a networked approach to all of its work, and we work with a large network of partners and advisors, When SIX was established, we established a global council who acted as an advisory group for SIX and contributed financially. At the end of 2020, the Global Council had 15 global partner organisations.

We also have a network of close partners and friends who support SIIX is a non-financial way: 1) the SIX100, which is a tool to widen input and strategic direction to the work of SIX and 2) a group of informal Advisors, made up of retired Board members and other senior experts. They all act as representatives and a hub for SIX around the world.

Part 2: Objectives and activities

SIX Vision and Mission

SIX is a social innovation exchange built on mutual value, relationships and knowledge.

SIX was founded to help identify and connect isolated people and organisations within social innovation, in order to build the emerging field and share ideas within it. This was fuelled by our belief that change is more effective when people work collectively. Ten years later, we have helped to establish a flourishing global social innovation movement, and to connect those working within it. In order for SIX to remain the leading organisation who sets the direction for social innovation globally, we needed to update our vision and mission.

We believe that the exchange of experiences and knowledge drives positive social change, and that everyone has something to contribute and gain from the exchange. We curate connections between thinkers and doers who share a common goal of wanting to improve society. We invite new people into these conversations in order to create a buzzing marketplace of ideas and experiences. As an exchange, we facilitate purposeful conversations that challenge and inspire people to advance the field of social innovation.

SIX exists to challenge and inspire people to use innovation to increase social impact.

SIX in 2020 - the global Covid-19 pandemic and our unique advantage

SIX’s work has always been situated in a changing context, directly affected by what is happening in the wider world. So, when Covid-19 started to spread around the world at the beginning of 2020, SIX adapted quickly. We had already identified the pandemic as a potential risk in 2019 but we did not predict the length or magnitude of its effects. On balance, SIX has weathered the (ongoing) storm well so far. 2020 was an opportunity for the organisation to take stock, renew and grow in confidence.

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

As the effect of the pandemic took hold on societies around the world, SIX’s mission and approach became even more relevant as many organisations realised the following:

SIX was also well set up to deal with the challenges of 2020 due to our established approach and values. As an organisation, we have developed skills and capabilities that mean we can flexibility to adapt to the new challenges faced by the world. We have always stayed ahead of trends - as new societal challenges arise, new methods and tools and a social innovation lens needs to be applied in different areas. In addition, as public resources become more limited, new kinds of finance and public sector practices are developed. SIX is agile enough to adapt our work to these new trends, and spread them globally. The social innovation knowledge, experience and resources we hold in the team, Executive Board and close partners was more important than ever in 2020.

Key activities in 2020

Type of activities - We were still able to deliver the majority of our activities, despite the challenging environment. We adapted out three core types of activity in the following ways, in order to comply with the rules of COVID-19:

  1. Events and convening - we transferred most of our events to zoom, a tool we were already familiar with. We also used a creative mix of high and low tech approaches to provide variety for participants in our programmes.

  2. Capacity building programmes - we conducted our training programmes and study visits online and extended the programme times to make sure the programmes were still effective.

  3. Developing and sharing insights and knowledge - we created several different creative ways to communicate our insights, moving away from producing standard reports and innovating by working with artists and in different mediums.

Working across six strategic areas and cross cutting themes - Following the Board retreat in November 2019, the Board agreed that SIX should work on 6 strategic areas over the coming years, which are based around all our activities in the previous years. Each year, we can change cross cutting themes, as relevant. We do not need to address every area every year. The strategic areas are:

  1. Funders/foundations - philanthropy becomes more effective and authentic

  2. Universities - universities rethink their purpose/innovate their models

  3. Business - explore and share what motivates businesses to do good

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

  1. Policy - social innovation is supported policy (focus on lobbying/influencing and working with cities/Mayors in Europe and Asia)

  2. Future SI leaders - grow the next generation of social innovation leaders

  3. Specialist SI institutions - grow the social innovation movement/mainstream social innovation

The core theme for 2020 was power and our work focussed on Funders and foundations, Corporates, Cities and social innovation movement building.

Geography/Global reach - Each year, we aim to expand our global reach but we are always limited by the number of events we can hold, and the high participation costs of flying around the world. Since travel was restricted in 2020, we took the opportunity to expand our network globally in a different way, specifically reaching out to include people and organisations from the global south who we don't usually connect with. Through our funders node work and the Wayfinder, 35 countries around the world participated in our activities, including Haiti, Lebanon, Tunisia, Saudi Arabia and Serbia. We also continued to grow our programmes in East Asia (focussing on Hong Kong, Seoul and Malaysia), as well as Canada.

2020 Goals and priorities

At the Board meeting in January, the Board agreed on the following list of priorities. In addition to continuing to deliver our existing contractual projects, we should:

1. Host flagship programmes that demonstrate SIX’s leadership in social innovation.

2. Scale the GIA Summer School

During the November 2019 Board retreat, the Board recommended we focus on scaling the SIX International Summer School for young people (a 5-day long challenge based exploratory programme designed to build social innovation capacity in young people aged 18-24, which we have delivered twice previously), rather than trying to develop several new programmes at the same time under the banner of the Global Innovation Academy.

This programme requires young people from different parts of the world to meet in person, and the funding would come from universities. Because of these 2 requirements and the global pandemic, it was not possible to deliver this goal in 2020.

3. Be deliberate in participation of small in ad hoc projects - In 2019, it was agreed that we should try and move away from doing lots of small projects, and focus on bigger longer term work. Whilst we should not go out and search for this kind of work, the Board agreed that if we are approached, we should take on the projects if they are inline with our strategic aims; if the partner is high profile/strategic; if it is good money; and if it is easy to deliver.

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

4. Building the SIX organisation - in order to have a strong foundation on which to deliver the above activities. 2020’s organisational development should focus on:

Specific activities

1. Events and convening - We transferred our convening activities

a) Funders node - bringing together more than 50 philanthropic leaders from around the world in online exchanges. To make the insights from the global scan (explained below) really useful for people, we organised a series of global conversations to help people meet new friends and contextualise these topics - different countries and types of organisations understand things in different ways. We also believe in reaching beyond our own ‘bubbles’, so we collaborated with philanthropy networks Wings network (focussing on philanthropy, power and new challenges) and Ariadne (focussing on radical change) to host learning exchanges, bringing our networks together and dive deeper into key themes that came out of the scan with new funders. In particular, we focused on building relationships with philanthropic organisations in the global south.

b) SIX Wayfinder events - The SIX Wayfidner is usually a 2 day event which brings together up to 150 global social innovation leaders. When it became evident that we could not host an in person event in 2020, we transformed the Wayfinder into a 9 months programme of different styles activities, reaching new people. In response to the general sense of anxiety, zoom fatigue, and anger around the world as death rates increased and economies crashed, we used the Wayfinder to connect with people in different ways. In total we hosted more than 70 events for 400+ people participating from 70 organisations in 10 languages.

c) Other convening activities

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

time when life and meetings have been very regimented because of the pandemic, people really

appreciated the opportunity to connect informally for a ‘chat’, hosted by SIX with no official agenda. We hosted 20 global pairs for chats in 2020.

2. Capacity building programmes

Whilst we were not able to deliver Summer School for young people, as identified in our aims, we were able to deliver our existing programmes by redesigning them and adapting them to be delivered online.

a) Systems thinking training - We delivered 3 systems thinking in practice training workshops to the second cohort of 12 staff from the UK foundation. We used the broad structure from the first cohort in 2019, but adapted by making the sessions shorter but more regular, and breaking the group into smaller groups.

b) Virtual study tour - We’d been asked by an NGO in Hong Kong to host a study tour for its staff. We had planned to bring them to the UK to visit social innovation organisations. So when it became clear the a visit to the UK was not possible, we redesigned for a ‘virtual’ study tour. We took the opportunity to introduce the participants to innovations in different parts of the world, not just the UK and we spread the programme over several months with bi-weekly meetings, rather than an intensive week of learning, embedding more sustained learning.

c) Exchanging the how - We begun hosting regular learning sessions with Open Society Foundation team in Barcelona and New York to exchange learning on new ways of convening online, and sharing different tools and approaches to capacity building in an online environment.

3. Develop and share knowledge and insights

Since we were not able to host as many in person events enduring 2020, we focussed more energy on designing creative ways to develop and share knowledge globally. 2020 was a year when we spent a lot of a time staring at screens, reading similar content in long reports, mainly written in English. This approach means the audience is limited to a few people. So, we developed different kinds of products to increase accessibility, designed specifically for different kinds of global audiences.

a) REPORT: Business for Good: Understanding the motivations for businesses to create shared value - We

finished and published the report working with the Hong Kong consulting team (of which SIX was a part). The executive summary is produced both in English and Cantonese to make it more accessible to more people in Hong Kong, as well as globally.

b) BOOK: Seoul as a people powered city - from local to global and back again - We worked with the Seoul

City Social Innovation Advisory Group to produce a book of essays and case studies telling the story of how Seoul became a truly people powered city. The book introduces and promotes the social innovation legacy of Seoul City to a global audience and to cities around the world grappling with similar challenges.

c) WEBSITE: Funders node global scan - We conducted a global scan, examining how foundations around the world were responding to the Covid 19 global pandemic, and what it might mean for the way they behave in the future. We interviewed 40+ funders from across 6 continents, and developed a website to share the

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

insights we collected, making the content more engaging and easier to navigate than a standard report. We also participated in the CAF Giving Thought podcast.

d) MULTIMEDIA: Wayfinder - Through the SIX Wayfinder, events, We gave life to these in the global stories, essays, poetry, podcasts, videos, music, sounds, and other art works, which you can experience through the artefacts that make up our ‘Wayfinder score’. We worked with 6 artists from all over the world and produced a 25 minute piece of music - our final symphony entitled: , ‘Sounding together’ --- a soundtrack to a new social contract. Our insights reached more than 1000 people across 35 countries.

e) Ad Hoc development of knowledge and insights - Throughout the year, the team contributed articles, blogs and interviews related to the projects they work on as a way of spreading social innovation knowledge. We also supported other organisations including producing a short report for the Gulbenkian Foundation (UK Branch), documenting the analysis and key lessons from their marine co-lab programme.

4. Building SIX organisation

a) Governance review - It was agreed that 2020 was the right time for a governance review for the following 3 reasons:

.

The Board agreed on the criteria for new members and the process to renew the SIX Board.

b) The team changes - We employed two strategies for developing the team in 2020:

Beneficiaries of our services

Because SIX is a network focussed on exchange, its participants determine its impact. SIX participants are, in principle, co-creators of SIX. The main function of SIX is, therefore, to facilitate connections and curate learning between them.

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

The participants of SIX are leaders or emerging leaders in social innovation, and work in government, non-profits and charities, social enterprises, universities and private companies. Mixing different backgrounds contributes to our quality. Broadly speaking, SIX network is comprised of people who are already engaged in social innovation thinking and/or practice and lead in a specific sector, expertise or geography. They see the value of social innovation and wish to share experiences with their peers and all those interested.

SIX also provides experiences for, and opportunities to engage those who are new to the concept of social innovation, but who are in practice already doing it in the sector, field or geography. This audience is a growing part of SIX’s audience. SIX is also interested to learn from people in parallel fields with similar experiences.

For participants and people in our wider network, SIX provides access to other leading practitioners, thinkers as well as other networks of social innovators as well as dynamic experiences (SIX events series) where they can quickly access this. For governments and large regional and national institutions, SIX offers practical knowledge, skills, examples, and case studies of social innovations as well as open forums to discuss issues and practical problems. For foundations, SIX provides challenging forums for them to step out of their day to day work, and to reflect on and question their own practice.

Public benefit focus on ensuring that our activities achieve our charitable aims

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

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

Achievements and performance in the delivery of public benefit

The charity's main activities and who it tries to help are described below. All its charitable activities focus on advancing the knowledge, practice and field of social innovation and are undertaken to further Social Innovation Exchange's charitable purposes for the public benefit.

All of the activities below develop and produce resources which are posted on SIX website and communicated with members in the UK, and around the world, via social media for the benefit of the general public.

Part 3: Financial review

The financial results are set out from page 15 onwards. SIX generated £400,859 of income and spent £338,261 on running projects, events and on support and governance costs.

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

SIX is grateful to its Global Council members for the financial support they have given in 2020 and their continued support for SIX's ongoing activities.

Principal risks and uncertainties

The Executive Board discuss risks and uncertainties in each Board meeting. We have short and long term challenges in 2020:

Short term:

Long term challenge:

Reserves policy and going concern

The Trustees have decided that the charity should hold three months running costs in reserves so that it could continue its activities in the event of a drop in funding. The target amount is £75,000 (3 months operating costs). We currently have free reserves of £353,983.

Part 4: Plans for the future

2021 can be seen as a transition year, or a year of investing in business development for the future. We need to move from a model of ‘hand to mouth’ activities year on year, to bigger and more sustainable projects. 2021 is the perfect time to do this. There has been so much change in the world, and so we should review our strategy in light of this. We also have our own changes in SIX with new Board members. 2021 is therefore an opportunity to:

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

Part 5: Statement of responsibilities of the Executive Board members

The Executive Board members (who are also directors of Social Innovation Exchange for the purposes of company law) are responsible for preparing the report of the Executive Board and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Executive Board members 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 Executive Board members are required to:

The Executive Board members 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 Executive Board members 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.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2016 was 10 (2015:8). The Executive Board members are members of the charity but this entitles them only to voting rights. The Executive Board members have no beneficial interest in the charity.

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Social Innovation Exchange

Report of the Executive Board

For the year ended 31 December 2020

Independent Examiner

Jonathan Orchard of Sayer Vincent LLP was re-appointed as the charitable company's independent examiner during the year and has expressed his willingness to continue in that capacity.

The report of the Executive Board has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The report of the Executive Board has been approved by the Executive Board members on 29/03/2021 and signed on their behalf by

Harvey Koh Chair

12

Independent Examiner’s report

To the Executive Board of

Social Innovation Exchange

I report on the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.

This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accounts in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

13

Independent Examiner’s report

To the Executive Board of

Social Innovation Exchange

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Name: Jonathan Orchard

The Institute of Chartered Accountants in England and Wales Relevant professional qualification or membership of professional bodies (if any): Address: Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL Date: 10 June 2021

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Social Innovation Exchange

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Note
Income from:
2
3
3
4
Reconciliation of funds:
Total funds carried forward
Transfers between funds
Net movement in funds
Total funds brought forward
Net income / (expenditure) for the year
Total expenditure
Total income
Expenditure on:
Raising funds
Charitable activities
Donations and legacies		 Unrestricted
£
317,069		 Restricted
£
83,790		 2020
Total
£
400,859
400,859
24,883
313,378
338,261
62,598
-
62,598
291,385
353,983		 Unrestricted
£
311,689		 2019
Restricted
Total
£
£
121,055
432,744
121,055
432,744
-
26,949
121,055
359,916
121,055
386,865
-
45,879
8,689
-
8,689
45,879
(8,689)
245,506
-
291,385
317,069 83,790 311,689
24,883
229,588		 -
83,790		 26,949
238,861
254,471 83,790 265,810
62,598
-		 -
-		 45,879
(8,689)
62,598
291,385		 -
-		 37,190
254,195
353,983 - 291,385

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 15 to the financial statements.

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Social Innovation Exchange

Company no. 08364475

Balance sheet

As at 31 December 2020

Note
Fixed assets:
9
Current assets:
10
Liabilities:
11
15
Total unrestricted funds
Debtors
Creditors: amounts falling due within one year
Net current assets
Unrestricted income funds:
The funds of the charity:
Total net assets
Cash at bank and in hand
Tangible assets
General funds
Total charity funds		 £
61,059
376,532		 2020
£
£
338
338
249,977
129,810
379,787
(89,800)
353,645
353,983
291,385
353,983
353,983		 2019
£
1,398
1,398
289,987
437,591
(83,946)
353,983
291,385
291,385
291,385

The opinion of the directors is that the company is entitled to the exemptions conferred by Section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge the following responsibilities:

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

Approved by the trustees on 29/03/2021 and signed on their behalf by

Harvey Koh Chair

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Social Innovation Exchange

Statement of cash flows

For the year ended 31 December 2020

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net cash provided by / (used in) operating activities
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
Cash flows from operating activities
Net cash provided by / (used in) operating activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Decrease) in debtors
(Decrease) in creditors		 £
£
246,722
246,722
129,810
376,532
At January
1 2020
Cash flows
£
£
129,810
246,722
129,810
246,722
2020		 £
£
246,722
246,722
129,810
376,532
At January
1 2020
Cash flows
£
£
129,810
246,722
129,810
246,722
2020		 2020
£
62,598
1,060
188,918
(5,854)		 2019
£
45,879
1,682
(25,683)
(9,994)
246,722
11,884
£
£
11,884
11,884
117,926
129,810
Other
changes
£
£
-
376,532
-
376,532
At 31
December
2020
2019		 11,884
376,532 129,810
Cash flows
£
246,722		 £
376,532
At 31
December
2020
129,810 246,722 376,532

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Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

Social Innovation Exchange is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is 3-5 Hardwidge Street, Top Floor, London SE1 3SY.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

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

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees have considered the impact of COVID-19 on the organisation, and do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

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

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

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

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

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

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

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

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

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Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies (continued)

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with

this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with

constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000, or if it is an item of computer equipment. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

 Computer equipment

3 years

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

o) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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

p) Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

19

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

Gifts and donations
Global Council		 Unrestricted
£
300,367
16,702
317,069		 £
83,790
-
83,790
Restricted		 2020
Total
£
384,157
16,702
400,859		 Unrestricted
£
179,189
132,500
311,689		 2019
Total
£
£
121,055
300,244
-
132,500
121,055
432,744
Restricted

20

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

3a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 5)
Other HR costs
Professional fees
Event costs
Travel and subsistence
Office costs
IT
Depreciation
y, g
fees
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Cost of
raising
funds
£
11,558
-
-
13,246
79
-
-
-
-
24,883
-
-
24,883
26,949		 Events and
convening
£
92,468
-
-
-
633
-
-
-
-
93,101
10,469
47,300
150,870
172,486		 Knowledge
and insights
£
57,793
-
-
-
396
-
-
-
-
58,189
5,234
23,650
87,073
101,186		 Capacity
building
£
46,234
-
-
-
317
-
-
-
-
46,551
5,234
23,650
75,435
86,244		 Support
costs
£
16,182
-
1,284
-
111
-
-
-
3,360
20,937
(20,937)
-
-
-		 Governance
costs
£
6,935
51,342
-
-
47
33,220
1,996
1,060
-
94,600
-
(94,600)
-
-		 2020 Total
£
231,170
51,342
1,284
13,246
1,583
33,220
1,996
1,060
3,360
338,261
-
-
338,261
-		 2019
Total
£
275,545
25,093
999
12,007
23,296
32,497
5,406
1,682
10,340
386,865
-
-
-
386,865

21

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

3b Analysis of expenditure (prior year)

Charitable activities

Staff costs (Note 5)
Other HR costs
Professional fees
Event costs
Travel and subsistence
Office costs
IT
Depreciation
y, g
fees
Support costs
Governance costs
Total expenditure 2019		 Cost of
raising
funds
£
13,777
-
-
12,007
1,165
-
-
-
-
26,949
-
-
26,949		 Events and
convening
£
110,219

-

-
-
9,318

-

-

-

-
119,537
16,128
36,821
172,486		 Knowledge
and insights
£
68,886

-

-

-
5,824

-

-

-

-
74,710
8,065
18,411
101,186		 Capacity
building
£
55,109

-

-

-
4,659

-

-

-

-
59,768
8,065
18,411
86,244		 Support
costs
£
19,288

-

999

-
1,631

-

-

-

10,340
32,258
(32,258)
-
-		 Governance
costs
2019 Total
£
£
8,266
275,545

25,093
25,093
-
999

-
12,007
699
23,296

32,497
32,497

5,406
5,406

1,682
1,682
-
10,340
73,643
386,865
-
-
(73,643)
-
-
386,865

22

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2020 2019
£ £
Depreciation 1,060 1,682
Operating lease rentals:
Property 28,800 28,800
Independent examiner's remuneration (excluding VAT):
Independent examination 2,800 2,700
Other services - 5,400

Staff costs were as follows:

Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2020
2019
£
£
202,280
241,625
16,843
21,602
12,047
12,319
231,170
275,546

One employee earned more than £60,000 during the year (2019: one).

The total employee benefits including pension contributions and employer's national insurance of the key management personnel were £127,965 (2019: £127,546).

The Executive Board were not paid or did not receive any other benefits from employment with the charity in the year (2019: £nil). No Executive Board member received payment for professional or other services supplied to the charity (2019: £nil).

The Executive Board's expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2019: £354) incurred by nil (2019: 1) member relating to attendance at meetings of the trustees.

23

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

6 Staff numbers

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

Raising funds
Support and governance
Charitable activities		 2020
2019
No.
No.
0.5
1.0
4.5
5.0
0.5
1.0
5.5
7.0

7 Related party transactions

There were no related party transactions in 2020 (2019: £nil).

8 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Tangible fixed assets

Tangible fixed assets
Cost or valuation
Depreciation
Net book value
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
At the end of the year
At the start of the year		 Computer
equipment
£
9,371
-		 Total
£
9,371
-
9,371 9,371
7,973
1,060		 7,973
1,060
9,033 9,033
338 338
1,398 1,398

All of the above assets are used for charitable purposes.

24

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

10
Debtors
11
Accruals
Deferred income (note 12)
Taxation and social security
Trade creditors
Trade debtors
Prepayments
Accrued income
Creditors: amounts falling due within one year		 2020
£
41,425
-
19,634		 2019
£
208,366
3,400
38,211
61,059 249,977
2020
£
33,035
7,840
3,360
39,711		 2019
£
13,184
10,098
7,510
59,008
83,946 89,800

12 Deferred income

Deferred income comprises of £39,711 received in 2020 for use towards SCALINGS, which will be spent in 2021.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2020
2019
£
£
59,008
57,990
(59,008)
(47,990)
39,711
49,008
39,711
59,008

13 Pension scheme

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £12,047 (2019: £12,319).

25

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

14a Analysis of net assets between funds (current year)

14b
15a
At the start
of the year
£
-
-
-
Total restricted funds
-
291,385
291,385
VISION
SCALINGS
SIKE (Social Innovation for
Knowledge Exchange)
Total unrestricted funds
Net current assets
Net assets at the end of the year
Tangible fixed assets
Net current assets
Total funds
Net assets at the end of the year
Tangible fixed assets
Analysis of net assets between funds (prior year)
Movements in funds (current year)
Restricted funds:
European Commission		 14b
15a
At the start
of the year
£
-
-
-
Total restricted funds
-
291,385
291,385
VISION
SCALINGS
SIKE (Social Innovation for
Knowledge Exchange)
Total unrestricted funds
Net current assets
Net assets at the end of the year
Tangible fixed assets
Net current assets
Total funds
Net assets at the end of the year
Tangible fixed assets
Analysis of net assets between funds (prior year)
Movements in funds (current year)
Restricted funds:
European Commission		 Incoming
resources &
gains
£
35,047
32,235
16,508		 £
338
353,307
General
unrestricted		 Restricted
£
-
-		 Total funds
£
338
353,307
353,645 - 353,645
£
1,398
288,589
General
unrestricted		 Restricted
£
-
-		 Total funds
£
1,398
288,589
289,987 - 289,987
Outgoing
resources
& losses
£
35,047
32,235
16,508		 Transfers
£
-
-
-		 At the end
of the year
£
-
-
-
- 83,790 83,790 - -
291,385 317,069 254,471 - 353,983
291,385 400,859 338,261 - 353,983

26

Social Innovation Exchange

Notes to the financial statements

For the year ended 31 December 2020

15b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
Total unrestricted funds
Total funds
SIKE (Social Innovation for
Knowledge Exchange)
SCALINGS
European Commission
Common Good
SEASIN
Other restricted -SIC
Restricted funds:		 At the start
of the year
£
(1,343)
-
(7,346)
-
-		 Incoming
resources &
gains
£
8,287
28,474
18,705
32,001
33,588		 Outgoing
resources
& losses
£
8,287
28,474
18,705
32,001
33,588		 Transfers
£
1,343
-
7,346
-
-		 At the end
of the year
£
-
-
-
-
-
(8,689) 121,055 121,055 8,689 -
254,195 311,689 265,810 (8,689) 291,385
245,506 432,744 386,865 - 291,385

Movement in funds

Purposes of restricted funds

European Commission

SIKE - to support social innovation through knowledge exchange between universities and their communities by developing SIKE Units within universities in Europe, which encourage the development of new social innovation projects and products.

SCALINGS - an interdisciplinary European research project seeking to develop a systematic and in-depth understanding of the socio-cultural variation of co-creation across 10 European countries in 3 research areas.

VISION - is a project that aims to advance Europe’s capacity and effectiveness in teaching and training for creativity, innovation and entrepreneurship (CIE).

16 Operating lease commitments

The property lease agreement came to an end in November 2019, and is in the process of being renegotiated. Rent is currently being paid on a rolling-month basis.

17 Legal status of the charity

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

27