2023-12-31-accounts - Ikdi

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IKDI Company no. 08478660

IKDI

(a company limited by guarantee)

Report and Financial Statements

for the year ended 31 December 2023

Registered Company no: 08478660 Registered Charity no: 1157417

IKDI Company no. 08478660

Trustee Report and Financial Statements for the year ended 31 December 2023

	Page
Reference and Administrative details	3
Trustees’ Report	4 – 7
Independent Examiner’s report	8
Statement of Financial Activities	9
Balance Sheet	10
Notes to the Financial Statements	11 – 14

IKDI Company no. 08478660

REFERENCE AND ADMINISTRATIVE DETAILS

Directors and Trustees

Principal and registered office

Teresa Tideman (Chair)

Bastien Charpentier Rosanne Gray Graham Inglis Juliane Kronen Richard Wolff Ajay Kavan

11–15 St Mary at Hill London EC3R 8EE Tel: 0300 30 20 200 Fax: 0203 637 1347 www.ikdinternational.org

Independent Examiner

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Bankers

Lloyds Banking Group 109 Finsbury Pavement Finsbury Park London EC2A 1LB

Solicitors Bates Wells 10 Queen Street Place London EC4R 1BE

Status IKDI is:

 a company limited by guarantee in England & Wales, number 08478660.
 a charity registered in England & Wales, number 1157417.

IKDI is governed by Articles of Association dated 8 April 2013 and amended 6 February 2014 by Special Resolution.

IKDI Company no. 08478660

IKDI

Trustees’ Report

For the year ended 31 December 2023

The Trustees of IKDI, who are also the directors of the charitable company for the purposes of company law, present their report for the year ended 31 December 2023.

Public benefit, objectives and activities

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission on determining the activities undertaken by a charity. The trustees are satisfied that the aims and objectives of the charity and the activities reported, achieve the aims and principles of public benefit.

The company’s main charitable objects are to advance education internationally in respect of sustainable waste management and redistribution processes; the matching of surplus goods and materials to the needs of charities and individuals; and research into the benefits to the community of the matching of surplus to need and sustainable waste management and redistribution processes; the relief of poverty; and the advancement of citizenship or community development.

IKDI network members work together in order to increase the volumes of surplus goods collected and distributed by members at low cost , creating greater economic, environmental and social impact for all stakeholders.

IKDI was founded in 2013 and manages a network of charities located in four countries. Each network member co-ordinates the distribution of surplus products, to other not for profit organisations and their beneficiaries. Products received from IKDI network members enable recipient organisations to use products to provide services to beneficiaries attending charity centres, as well as donate products directly to beneficiaries and maintain charity working environments. Charities are able to save money as a result of receiving goods from network members and these savings can be used to improve and extend their services. Beneficiaries benefit from products which improve their daily lives and reduce hardship.

To date, collectively IKDI network members have supported more than 18,100 voluntary organisations with product donations received from over 1,780 corporate donors, with an estimated retail value of over £753 million.

IKDI works for the public benefit by ensuring that the expenditure of recipient charities on essential goods is reduced, thereby stretching their limited resources and enabling them to help millions of people in need at home and abroad, while reducing environmental damage, because goods are saved from waste or landfill.

Achievements and performance

At the end of 2023, IKDI had four network members: In Kind Direct, the founder member; Innatura, a German licensee; Dons Solidaires, a French licensee and a Swiss licensee, MateriaBona.

Collectively, to the end of 2023, IKDI network members have distributed goods with an estimated retail value of over £915 million, received from more than 1,928 corporate product donors, to over 22,290 charitable organisations.

Work continued during 2023, to support the establishment of a new network member in Italy with monthly support and follow-up calls.

IKDI Company no. 08478660

Demand for the services of established IKDI network members continued in the year. IKDI network members continued to work collaboratively, sharing know-how, experience, innovation, and donations, when appropriate. Regular online meetings took place between IKDI network members throughout the year and new working groups were established in 2023: Monthly network Directors calls and the introduction of a Sustainability Working Group. In May 2023, an in-person IKDI conference took place in London.

Since the IKDI network was formed in 2013, IKDI network members have shared donated goods between network members with an estimated retail value of over £18 million. Goods are shared between network members if they are surplus to the requirements of the receiving network member or because a particular type of product is better suited to use in another country, for example due to need, size, labelling or configuration. IKDI continues to review opportunities for potential expansion of the IKDI network in additional countries.

The financial results of IKDI have been consolidated in the Statement of Financial Activities and balance sheet of the In Kind Direct group, as In Kind Direct is the sole legal member of IKDI. This was the tenth full year of operating for IKDI.

Financial review of 2023

£21,750 of licence fee income was received during 2023 (2022: £69,000). This comprised £15,000 from the French licensee, Dons Solidaires; as well as £6,750 from In Kind Direct. This £6,750 fee represents 60% of the annual membership and licence fee paid by other network members, with the 40% reduction given in recognition of the fact that In Kind Direct should not pay for its own licence elements.

£25,000 of unrestricted funding was received by the charity in 2023 (2022: £25,000).

The charity’s main overhead costs relate to cross charges which cover: the Chief Operating Officer for IKDI, who is employed by In Kind Direct, but whose salary and on-costs are cross charged to IKDI; and time allocated by IKD staff, to provide support services to IKDI and support for start-up licensees. Total staff costs cross charged for the year were £38,217 (2022: £57,350).

At the balance sheet date, the charity had total reserves of £91,007 (2022: £92,498) of which cash held at year end was £95,507 (2022: £103,698).

Key lessons learned

IKDI continues to learn from working with all network members and prospective network members, as well as from the preliminary research and country selection process for new licensees.

Working with prospective licensees has enabled IKDI to gain an understanding of the key skills and local support which is required to enable start-up, as well as understanding whether the operating model would be viable in certain countries. Working with newly established licensees, has enabled IKDI to learn about changes which are required to the operating model locally, in order to meet compliance and other requirements. Established network members continue to provide valuable insights into the ongoing requirements of network members and the opportunities and challenges associated with the operating model.

Plans for the future

IKDI continues to work towards expansion, researching countries with potential for start-up members. Countries for start-up are identified through a series of steps, including an assessment of whether a range of country selection criteria are met, including the key criteria of need and supply, amongst others.

IKDI Company no. 08478660

IKDI continues to act as a convening entity for network members, supporting the sharing of best practice between network members, while continuing to support the start-up of new entities.

During 2024, IKDI will continue to focus on supporting existing network members and on growth and expansion of the IKDI network.

Structure, governance and management

The Board of IKDI has six Director/Trustees as set out below and in the year was managed on a daily basis by the Chief Operating Officer. Finance, Marketing, IT, Fundraising, Governance, administrative and Chief Executive services are provided at cost to IKDI by In Kind Direct. During Q1 and Q2 of 2023, In Kind Direct seconded an interim CEO, who provided Chief Executive services to IKDI.

During the second quarter of 2023, IKDI recruited an IKDI Network Manager to take over the daily management of the IKDI network from the Chief Operating Officer.

The Board meets quarterly. Board members hold office under the terms set out in the Articles of Association. The Company is limited by guarantee without having a share capital. The Member of the Company agrees to contribute a sum of up to £10 on a winding-up of the Company.

In Kind Direct is the sole member of IKDI.

Financial policies

The board of IKDI has agreed that IKDI should aim to achieve reserves equivalent to three months’ operational cash flow.

Risk policy and management

The Trustees review the assessment of major risks to which the charity is exposed. IKDI has compiled a risk register, which will be regularly monitored and amended as necessary. Management of risks, with strategies to minimise and mitigate them, is an on-going task. The full risk register will be reviewed by Trustees annually.

Related Parties

Three of the trustees of IKDI, Teresa Tideman, Graham Inglis, and Richard Wolff, are also trustees of In Kind Direct. Rosanne Gray is the Chief Executive Officer of In Kind Direct. Juliane Kronen is Chief Executive Office of innatura, and Bastien Charpentier is President of Dons Solidaires. Graham Inglis resigned as a trustee in September 2023 and Ajay Kavan was appointed as a trustee in December 2023.

Qualifying indemnity insurance

The charitable company has granted an indemnity to its directors and officers against liability in respect of actions brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity insurance remains in force as at the date of approving the Directors’ Report.

Directors and trustees

Teresa Tideman (Chair) Bastien Charpentier Rosanne Gray Graham Inglis Juliane Kronen Richard Wolff Ajay Kavan

IKDI Company no. 08478660

Statement of trustees’ responsibilities

The trustees, who are also directors of IKDI for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year 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:

Select suitable accounting policies and then apply them consistently;
Observe the methods and principles in the Charities SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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.

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

These financial statements were approved and authorised for issue by the directors and were signed on its behalf by:

T M Tideman

Teresa Tideman

Director and Trustee 06/09/2024 Date……………………..

IKDI Company no. 08478660

Independent examiner’s report to the trustees of IKDI (‘the Company’)

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023.

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

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:

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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.

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Richard Weaver

For and on behalf of Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

9 September 2024 Date:……………………..

IKDI Company no. 08478660

IKDI

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Note Funds £ Income from: Donations 2 25,000 Charitable activities Licence fees 21,750 Other Income - Total 46,750 Expenditure on: Raising funds Costs of raising funds 4,804 Charitable activities International network 43,437 Total 3 48,241 Net Income Before Transfers (1,491) Gross transfers between funds - Net Income For The Year (1,491) Reconciliation of funds Funds brought forward at 1 January 2023 76,165 Funds carried forward at 31 December 2023 74,674	Restricted Funds £ - - - - - - - - - - 16,333 16,333	Total Unrestricted 2023 Funds £ £ 25,000 25,000 21,750 69,000 - 75 46,750 94,075 4,804 8,665 43,437 79,839 48,241 88,504 (1,491) 5,571 - - (1,491) 5,571 92,498 70,594 91,007 76,165	Restricted Total Funds 2022 £ £ - 25,000 - 69,000 - 75 - 94,075 - 8,665 - 79,839 - 88,504 - 5,571 - - - 5,571 16,333 86,927 16,333 92,498

All gains and losses arising in the year are included in the Statement of Financial Activities and arise from continuing operations.

The accompanying notes on pages 11 to 14 form an integral part of these financial statements.

IKDI Company no. 08478660

IKDI

BALANCE SHEET AS AT 31 DECEMBER 2023

Note Fixed Assets Current Assets Debtors 7 Cash at bank and in hand Creditors: Amounts falling due within one year 8 Net Current Assets Total Assets less Current Liabilities Funds Balances Unrestricted Funds Restricted Funds 9 Total Funds	2023 £ - 95,507 95,507 (4,500)	2023 2022 2022 £ £ £ - - - 103,698 103,698 (11,200) 91,007 92,498 91,007 92,498 74,674 76,165 16,333 16,333 91,007 92,498

The charitable company is exempt from the requirements relating to preparing audited accounts in accordance with section 477 of the Companies Act 2006 relating to small companies.

No member has deposited a notice requiring the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The financial statements were approved and authorised for issue by the Board of Trustees on and signed on its behalf by:

T M Tideman

………………………………………………………………

Teresa Tideman

Director & Trustee

06/09/2024 Date ………………………….

IKDI Company no. 08478660

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

IKDI

General Information

IKDI is a charitable private company limited by guarantee (co. number 08478660) and registered with the Charity Commission (charity registration no. 1157417). It is incorporated in the United Kingdom and domiciled in England and Wales. The registered office and principal place of business is:

11 – 15 St Mary at Hill London EC3R 8EE

1. Accounting Policies

a) Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 (SORP, effective 1 January 2019). The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. IKDI meets the definition of a public benefit entity under FRS 102.

b) Cash flow statement

No cash flow statement has been prepared for the current year as the charity qualifies as a small charity for the purposes of the Charity SORP.

c) Going concern

The trustees are confident that IKDI will remain a going concern and that there are no material uncertainties about the charity’s ability to continue. IKDI currently has 4 network members with the services of the established network members in great demand. Annual licence fees that were expected to date have either all been paid or are expected to be paid, and the organisation currently has sufficient reserves to operate into 2025 and for a period of at least 12 months following the date of approval of these financial statements.

d) Income

Voluntary income and donations are accounted for on an accrual’s basis. All income in the Statement of Financial Activities is shown gross of the associated costs. Income from charitable activities is recognised as it is earned. Where amounts are billed in advance of the activity being carried out, the income is deferred. Legacy income is recognised when its amount and receipt is reasonably certain.

IKDI Company no. 08478660

e) Expenditure

All expenses are accounted for on an accrual’s basis. Wherever possible costs are allocated directly to the appropriate activity, other costs common to all activities are appointed between those activities on the basis of the proportion of staff time spent in each activity.

Expenditure on raising funds compromises costs incurred in inducing people and organisations to contribute financially to the Charity’s work. This includes the costs of advertising for donations and the staging of special fundraising events.

Expenditure incurred in connection with the specific objects of the charity is included under the heading Charitable activities. Support costs include governance costs being those that relate to regulation, compliance and the strategic direction of the charity.

The irrecoverable element of VAT is included with the item of expense to which it relates.

f) Funds

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objects of the charity and have not been designated for other purposes.

Designated funds compromise funds which have been set aside by the trustees for particular purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.

g) Taxation

The Charity is an exempt approved charity in accordance with the Income and Corporation Taxes Act 1988.

h) Debtors

Short term debtors are measured at transaction price, less any impairment.

i) Creditors

Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

j) Public benefit concessionary loans

IKDI provides a loan to further its charitable purposes at rates below prevailing market rates. In accordance with section 34 of FRS102 this loan has been classified and accounted for as a concessionary loan. Such loans are initially recognised and measured at the amount provided and subsequently adjusted to reflect any repayments, accrued interest and any subsequent impairments.

IKDI Company no. 08478660

IKDI

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2 Voluntary income Grant from individual 3 Total Expenditure Costs of raising funds Charitable Activities International network 2022 Total 4 Staff Costs Staff costs comprise: Cross charges from In Kind Direct No staff members are directly employed by IKDI. Staff c 5 Support & Governance Costs Allocated overheads Taxation services Independent Examination fees .	Unrestricted Restricted Funds Funds £ £ 25,000 - 25,000 - Staff Other Costs Costs £ £ (note 4) 3,822 983 34,395 9,041 38,217 10,024 57,349 31,155 osts are cross charges from In Kin Unrestricted Restricted Funds Funds £ £ 200 - - - 9,824 - 10,024 -	Total 2023 £ 25,000 25,000 2023 £ 4,805 43,436 48,241 88,504 2023 £ 38,217 38,217 d Direct. Total 2023 £ 200 - 9,824 10,024	Unrestricted Funds £ 25,000 25,000	Restricted Total Funds 2022 £ £ - 25,000 - 25,000 2022 £ 8,665 79,839 88,504 2022 £ 57,349 57,349 Unrestricted Funds and Total 2022 £ 1,850 - 29,305 31,155

6 Trustees

The trustees received no remuneration or reimbursed expenses during the year (2022 : nil).

IKDI Company no. 08478660

IKDI

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

7 Debtors Trade Debtors Prepayments and Accrued Income Taxation & social security 8 Creditors: amounts falling due withi Trade Creditors Accruals Amounts due to parent undertaking 9 Restricted Funds 2023 i In Kind Direct 9 Restricted Funds 2022 i In Kind Direct i) In Kind Direct. These funds were to	n one year Tra Brought Incoming Resources Forward Resources Expended £ £ £ 16,333 - - 16,333 - - Brought Incoming Resources Forward Resources Expended £ £ £ 16,333 - - - - - 16,333 - - provide loan capital to new operations starting in ot	2023 £ - - - - 2023 £ - 4,500 - 4,500 nsfer (to)/ from Unrestricted Fund £ - - Transfer from Unrestricted Fund £ - - - her countries.	2022 £ - - - - 2022 £ - 6,300 4,900 11,200 Carried Forward £ 16,333 16,333 Carried Forward £ 16,333 - 16,333

i) In Kind Direct. These funds were to provide loan capital to new operations starting in other countries.

10 Financial Commitments

At 31 December 2023 the charitable company had no financial commitments (2022: £0).

11 Legal Status

The charity is a company limited by guarantee. In the event of the company being wound up the guarantee is limited to £10 per member.

12 Parent and Ultimate Controlling Party

The charitable company is deemed to be wholly owned and controlled by In Kind Direct, a charitable company limited by guarantee (03155226) and registered charity (1052679), by virtue of being the sole member of IKDI. Consolidated accounts for the parent undertaking are publicly available. Copies of those group accounts are available from Companies House and the Charity Commission.