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2022-12-31-accounts

Registered number: 08565148 Charity number: 1162201

FOUNDERS PLEDGE LTD

Formerly Founders for Good Ltd

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1 -2
Trustees' Report 3 - 13
Independent Auditor's Report on the Financial Statements 14 - 17
Consolidated Statement of Financial Activities 18
Consolidated Balance Sheet 19
Company Balance Sheet 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 - 42

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(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees V Bhargava
D C Bonas
R I Chapman
L H L Ding
N D Hutchinson
P D Kimmelman (Resigned 22 July 2022)
A McLoughlin (appointed 8 July 2022)
Company registered
number
08565148
Charity registered
number
1162201
Registered office
Runway East
20 St. Thomas Street
London
SE1 9RS
Chief executive officer
David Goldberg
Independent auditor
Crowe U.K. LLP
Fourth Floor
St James House
St James Square
Cheltenham
GL50 3PR
Bankers
Silicon Valley Bank
14-18 Finsbury Square
London
EC2A 1BR
Hypovereinsbank
Potsdamer Platz 10
10785
Berlin
Germany
Pictet Group
Stratton House
6th Floor
5 Stratton Street
London
W1J 8LA

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Legal Advisor Cooley UK LLP
69 Old Broad Street
London
EC2M 1 QS
Legal Advisors Macfarlanes LLP
20 Cursitor Street
London
EC4A 1LT
Legal Advisor Withers Worldwide
20 Old Bailey
London
EC4M 7AN
Legal Advisor Taylor Vinters
Tower 42, 33rd Floor
25 Old Braod Street
London
EC2N 1HQ
Legal Advisor Watson, Farley & Williams
15 Appold St
London
EC2A 2HB

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Trustees Report

For the year ended 31 December 2022

The Trustees present their annual report and strategic report, together with the audited financial statements for the year 1 January 2022 to 31 December 2022. This report is intended for Founders Pledge as a group comprising Founders Pledge Ltd (formerly Founders for Good Ltd), Founders Pledge Inc, and Founders Pledge gGmbH, and all references to the “group” are intended to refer to all three entities. The Trustees confirm that the Annual Report and financial statements of the group comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) as amended by the updates.

Administrative Details for Founders Pledge Ltd

Charity Number: 1162201 Company Number: 08565148 Trading Name: Founders Pledge

The Trustees of Founders Pledge Ltd are:

All Trustees can be reached via the principal office address of Founders Pledge Ltd: Runway East, 20 St Thomas Street, London SE1 9RS.

Strategic Report

Mission, Vision and Model

Founders Pledge’s mission is to empower entrepreneurs to do immense good. Our vision is that the value created by technology benefits those who need it most. We work to achieve this by helping our members become more informed and strategic philanthropists. The steps on this journey are:

  1. Pledge - members commit a portion of their current or future wealth to charity.

  2. Connect - we provide opportunities to collaborate with each other and learn from experts.

  3. Learn - we provide philanthropic advice and in-depth charity research so that members can maximise the impact of their donations.

  4. Give - we facilitate members’ donations, providing a global Donor Advised Fund and endto-end giving infrastructure.

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Our Achievements

In 2022 we guided $66m in grants to end user charities and our thematic funds of which $26m was granted to our recommended high impact funding opportunities (HIFO), and welcomed 80 new members who pledged a total of $1.26bn. This is against our objectives of moving $30m to HIFO and adding $1bn in pledge value.

Member Journey

We continued to have good engagement from our members in 2022. We fine-tuned the member experience across every stage of their journey, improving our products and services to be more robust, efficient and future-proof, such as:

We continue to make efforts to increase diversity within our membership, and we work consciously to diversify attendees of and speakers at our events.

Research & Advisory

Identifying the most effective charities to solve the world’s most pressing problems is a challenging but critical element of our work. During 2022, our researchers continued to identify new high impact funding opportunities (HIFO). We have 49 recommendations with the ability to absorb productively up to $2.3 billion in funding. Our advisors continued to support our members in building tailored giving portfolios, informed by the latest charity research. With our values-based approach, our advisors guided members through big questions and helped them articulate the core values that underpinned their giving.

We also trialled a new concept of working in a high-touch, bespoke way with an UHNW on a joint research agenda which resulted in £11.1m of grants. The experiment was deemed to be a success so we extended the experiment through into 2023 by signing up two additional UHNWs.

Patient Philanthropy Fund

2022 marked the first anniversary of the Patient Philanthropy Fund (PPF), a first of its kind fund designed to safeguard and improve the future of humanity. In 2022 the PPF invested just under $2 million into an Index Fund. These funds will be disbursed during especially pivotal moments (for

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example, when there is a major opportunity to protect our future or respond to an existential catastrophe that threatens it). In June 2022, the Fund (known by the Charity Commission as 'the linked charity') was formally registered as part of Founders Pledge ('the reporting charity'). This means that, in future, PPF can be separated out as a stand-alone charity; until then its governance, financial management, audit and all other operational issues are managed by Founders Pledge.

Future Plans

We will continue to focus on how we can leverage what matters most to our community and maximise every charitable dollar. In 2025, we want to be able to actively influence the granting of $100m to our recommended charities (HIFO).

In 2023, on the path towards this goal, we plan to:

Fundraising

Support from FP’s members and other generous donors drives our impact and ensures we can continue providing our members with: cutting-edge research and advisory services; events and programming to engage, challenge and inspire our community; our DAF and global giving infrastructure; and access to a community of impact-driven peers.

Our fundraising strategy centres around securing medium term commitments. Membership of the Foundry (major donors >$250k for non-members, $100k for members) requires a multi-year commitment, and Sustaining Partners (members donating >$5k) is an annual giving programme for a larger pool of donors.

While we ended the year in a healthy financial position, 2022 was challenging from a fundraising perspective given the overall market conditions, in particular the impact on the tech sector. However, we secured several three-year Foundry-level gifts, which has ensured we have a solid fundraising foundation for 2023. We are doubling-down on requesting multi-year gift commitments, which allow us to plan ahead and create organisational stability.

Principal funding sources

Our principal funding sources are pledge fulfilment (when our donors become liquid and choose to put their pledged assets into one of the Founders Pledge Donor Advised Funds) and Opex gifts from members, other generous individuals, corporations and foundations for support of Founders Pledge’s mission. Donations from our members supported 60% of our operating expenses in 2022.

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Founders Pledge recognises the provisions of the Charities (Protection and Social Investment) Act 2016, and takes a responsible approach to its fundraising, ensuring that pledgers and potential pledgers are treated with respect. FP has not used any commercial fundraising partners or outsourced its fundraising activity. No complaints were received in respect of our fundraising operations.

Financial Review

Total income for the year was £53,702,104 (2021: £41,769,485), of which £5,756,041 (2021: £5,870,756) related to donations. Total expenditure for the year was £45,944,643 (2021: £35,637,551) of which £41,299,317 (2021: £31,979,692) related to grants.

Our main source of income over the period was pledge income from our members and donations from individuals and philanthropists. We are especially grateful for all the contributions received without which we will not be able to fulfil our objectives.

Our total funds at year-end were £34,881,441 (2021: £26,031,040) of which £24,293,099 were restricted (2021: £17,756,434) and £10,588,342 (2021: £8,274,606) were unrestricted.

Going Concern

It is our assessment that Founders Pledge has a strong foundation and will continue as a going concern. Founders Pledge Ltd intends to remain in operation beyond the foreseeable future. Discussion of increased and continued donations from our major donors is an ongoing process. As at 31 December 2022, our secured committed funds totalled $16.7 million which equated to a runway of 25 months.

Despite the prevailing market conditions caused by global economic uncertainty, high interest rates and rising inflation, Founders Pledge ended 2022 in a strong financial position with 14 months' reserves cover (two months better than target). Founders Pledge successfully fundraised through the year, and anticipates sustaining its managed growth in operations during 2023. The cash position is being closely monitored by management on a monthly basis and quick action will be taken if there are indications of reduced reserve levels.

As a result, the Trustees confirm their assumptions that Founders Pledge is a going concern and that no significant uncertainty exists in this respect and the financial statements have been prepared on that basis.

Investment Policy

In 2022, the majority of our operational funds were held in cash, with a portion ($1.75m) moved to a 12-month fixed term deposit account in December 2022.

Following the collapse of SVB in March 2023, and working closely with the Trustees and the Investment Committee, we developed a short-term investment plan. A new, longer-term financial arrangement will be in place by the summer of 2023.

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Reserves Policy

In 2021, the management team set a policy to maintain a reserves target of 12 months cash at bank throughout the year, a reduction from 15 months during the COVID-19 pandemic, and 24 months runway target of cash at bank plus committed funding. We were able to maintain an average of 14 months throughout 2022 and ended 2022 with a runway figure of 25 months. We believe that these targets continue to be both important to track for our financial health as well as being set at the right level to provide assurance during continued difficult economic conditions. As at 31 December 2022, unrestricted cash reserves amounted to $10.7 million, which would cover an estimated 14 months of operation.

In line with the Charity Commission’s definition our free reserves stood at £10,565,183 which equates to our unrestricted funds excluding fixed assets.

Grant-Making Policy

The Philanthropic Services Team recommends grants for approval either to the Trustees or to those with delegated authority to approve on their behalf. The Philanthropic Services team conducts due diligence on the potential recipient and as part of the approval process it is ensured that any grants made are aligned with Founders Pledge’s Charitable Purposes.

Stakeholder Considerations

Section 172 of the Companies Act 2006 requires the directors (Trustees) to act in the way they consider, in good faith, would be most likely to promote the success of the charity to achieve its charitable purposes. The Act states that in doing so, the directors should have regard, amongst other matters, to:

The likely consequence of any decision in the long term

Our mission, vision and model, as set out above, have been carefully considered and selected as a long term strategy to meaningfully address some of the world’s most pressing problems. The Board routinely reviews external factors that could have an impact on the success of the charity, and ensures that we have a suitable strategy in place to continue to be able to deliver on our charitable objectives in the long term.

The interests of the company’s employees

The employees of the charity are critical to the success of our mission, and as such the Board gives ongoing consideration to ways in which we can ensure that employees are adequately supported in their roles. In 2022 we were able to get our average weekly engagement and welfare survey scores above the industry benchmark. The flexibility of this metric enables the Board and management to react quickly to any shifts or dips in factors contributing to culture and engagement to ensure the ongoing welfare of the team. Additionally, it was decided that given the cost of living crisis faced by our employees, we would use a portion of an underspend in our ‘Salaries’ budget line to provide a cost of living payment to all Founders Pledge employees, equal to £3,500 / €3,500 / $4,000. This payment has been delivered in two instalments in December 2022 and March 2023.

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The need to foster the company’s business relationships with suppliers, customers and others

Relationships with our partners, suppliers and members are paramount to the success of the charity. A single point of contact is assigned to each partner, supplier or member of the Founders Pledge community so that we can ensure a seamless and efficient experience for those who the charity works alongside. Any concerns are appropriately escalated and swiftly addressed, and we continuously receive overwhelmingly positive feedback from those members of the community with whom we have been actively engaged.

The impact of the company’s operations on the community and the environment

Founders Pledge recognises our responsibility to sustainability, and the impact of the charity's operations. A key focus since 2021 has been the growth of the Founders Pledge Climate Fund, which seeks to save lives that would otherwise be lost to air pollution, reduce energy poverty, and protect the planet for current and future generations.

The desirability of the company maintaining a reputation for high standards of business conduct

The Trustees take their responsibility for the reputation of the charity seriously, and consider the reputational and ethical repercussions of all decisions that are taken by the company. This not only covers strategic decisions, but also extends to the consideration of partnerships, and decisions made about suppliers or contractors.

The need to act fairly as between members of the company

The company is a company limited by guarantee, with the Trustees fulfilling the duties of members of the company. The company does not have shareholders. As such, all members have an equal responsibility and rights, and each member is considered equally through the company’s decisionmaking process and actions.

Future Performance & Risks

In 2022 we appointed a new Risk & Compliance Manager and the Trustees approved a new Risk Management Strategy. Our strategy is to move towards a data-led and quantitative approach to risk management. Our aim is to ensure we are allocating resources as effectively as possible to manage and mitigate risks.

Factors likely to affect future financial performance

Overall, Founders Pledge mainly relies on both grant and individual funding to support its operations. The performance of the organisation, however, is measured both in how much money we can secure in committed pledge funds, as well as how many grants we make. The main factors in securing pledge commitments are: trust in Founders Pledge by the public and potential members, our members ability to benefit from tax relief, , the professionalism with which we can maintain our relationships with our members, and the ability of the team to meet with founders at our own events as well as external events. The main factors in maintaining donor support for our operations are: the effectiveness of the grants we make, our ability to report that the donors’ money isn’t better spent elsewhere, and our ability to influence the money our members donate for grants.

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Principal Risks and Uncertainties

The Trustees have established a risk management policy for the Founders Pledge group. It sets out what we do to manage risk and who is accountable and responsible for risk management. The Trustees have overall accountability for risk management and they delegate responsibility to management for managing risk day-to-day. The Audit and Risk Committee supports the Trustees in exercising their duties by advising on the effectiveness of management action in response to risk.

Risk is reported on for the group as a whole, with any entity specific risks identified as appropriate. The Trustees review risk and receive reports from the Audit and Risk Committee at every meeting.

The Trustees have considered the principal risks and uncertainties of the Group and identified the following as the most significant risks for attention:

Risks & Uncertainties How FP is managing the risk
Global Economic Climate
High interest rates and the threat of recession continues
to impact tech valuations and financing. The risk to FP is
that this reduces Members’ liquidity, which reduces their
available funds, which then reduces our impact. This
might then reduce our opex funding from donors. There is
also a risk that it directly affects our donors and reduces
their ability to fund our work.		 We have managed this risk throughout 2022 but we
continue to be alert to the risk in 2023. The Trustees and
Management regularly review the reserves and runway to
ensure we are able to manage fluctuations in donor
giving. This includes reporting on fundraising and the
donor pipeline.
We also monitor data on charitable giving from our
Members to identify any trends that would indicate
reductions in giving as a result of this risk.
Loss of a High Value Member
Losing a high value Member, specifically a Member who
gives significant sums to our recommended HIFO, would
reduce our impact, which then might reduce our funding
from donors.		 We have prioritised actions to focus on Member services
and their connection to Founders Pledge, including a new
events programme, ongoing improvements to the
Member App, and creating a new website.
We monitor Member affinity and feedback and we also
ensure we are capturing our impact to demonstrate the
value we add to donors and funders.
IT & Data Security
If we had a major cyber attack and/or a significant data
breach, there is a risk that we could face fines or
penalties if we were found to have failed to protect
personal data adequately. This would also damage our
reputation with our Members and stakeholders.		 Ensuring the security of the data we hold is a top priority.
We have invested in improving IT and data security over
the last 12 months and we are continuing to prioritise
internal projects that will make our data more secure.
This includes ongoing work to ensure compliance with
data protection good practice, and penetration testing of
our key systems.
Compliance with Laws & Regulations
We operate across the globe and are committed to
providing grants to the most effective charities wherever
they operate. This increases the risk that we might
breach laws or regulations, especially in our grantmaking,
as we navigate the complexities of different charitable
regulatory environments.		 We have detailed processes, including robust grantee
due diligence, to mitigate the risk of breaching laws or
regulations in our grantmaking. We also have ‘Know Your
Donor’ processes to ensure we know the source of the
money we receive.
We have also invested in internal compliance resources,
creating a new Risk & Compliance Manager post, and we
have access to legal advisors to help us manage legal
risks in our operations.

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This strategic report was approved by the Trustees in their capacity as company directors on 23 May 2023 and signed on their behalf by Vikrant Bhargava, Chair of Trustees.

[SIGNED]

__ Vikrant Bhargava

Trustees Report

Structure, Governance And Management

Founders Pledge Ltd has two wholly owned subsidiaries, each of which have their own governance structures:

As Founders Pledge Ltd has overall control, these are consolidated on a line by line basis.

Governing Document

Founders Pledge Ltd is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new Trustees

Founders Pledge recognises that an effective Board of Trustees is essential if the charity is to be effective in achieving its objects. The Board must seek to be representative of the people with whom the charity works and must have available to it all of the knowledge and skills required to run the charity. Individual Trustees must have sufficient knowledge, both of trusteeship in general and of the charity's activities, to enable them to carry out their role and to represent the charity at meetings and other events.

Individuals who appear suitable candidates will be invited to attend individual meetings with existing Trustees and will receive further information regarding the role of being a Trustee. If, following this meeting, at least two Trustees wish to proceed the candidate will need to be approved by a two-thirds vote of existing Trustees/Board directors. New Board members are inducted via sharing a data-pack of relevant reading materials, after which a series of meetings are scheduled with CEO, COO and other key employees for briefing and Q&A.

Decision-Making

The Trustees focus on strategy, performance and assurance and delegate operational matters to the CEO and staff of Founders Pledge. Specific Trustee duties and delegations are set out in the Founders Pledge Signing Matrix. Trustees approve budgets, policies and remuneration proposals for the CEO. All Founders Pledge Ltd grants are reviewed by the Board and approvals are conducted by the Trustees or by senior staff according to the Founders Pledge Grant Approvals

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Delegation framework. The Founders Pledge Signatory and Approvals Matrix document outlines where Trustees delegate approvals and signatory authority to staff members and at which thresholds. Staff proactively bring any decisions which incur medium to high level of risk to the Trustees for their oversight, and the Trustees regularly review the Founders Pledge risk register and make recommendations. The Founders Pledge Audit and Risk Committee also make recommendations to the Trustees to inform their decision making.

Pay policy for key management personnel

The Trustees consider and assess pay levels for all staff taking into account market conditions as well as individual roles and responsibilities. The pay of the key management personnel is reviewed annually by the Trustees to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

Objectives And Activities

Objectives and aims for the public benefit

The objects of the Charity are:

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant-making policy for the year.

The Charity carries out these objects through its charitable activities by:

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As at 31 December 2022, our members have committed around $9.5bn to the charitable sector by signing a Founders Pledge pledge.

Statement of Trustees Responsibilities

The Trustees (who are also directors of Founders Pledge Ltd for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and UK Generally Accepted Accounting Practice (UK Accounting Standards).

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s articles of association. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Disclosure of Information to Auditors

The Trustees reappointed Crowe UK LLP as their auditors for this accounting period. Insofar as each of the Trustees of the charity at the date of approval of this report is aware, there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each Trustee has taken all of the steps that he/she should have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the group’s auditor is aware of that information.

Pursuant to section 487 of the Companies Act 2006, the auditors will be deemed to be reappointed and Crowe UK LLP will therefore continue in office.

This report was approved by the Trustees in their capacity as company directors on 23 May 2023 and signed on their behalf by Vikrant Bhargava, Chair of Trustees.

[SIGNED]

__ Vikrant Bhargava

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(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOUNDERS PLEDGE LTD

Opinion

We have audited the financial statements of Founders Pledge Ltd ('the charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows and the related notes, including a summary of 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.

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(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOUNDERS PLEDGE LTD (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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.

Opinion 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 our 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 Strategic Report or the Directors' Report included within the Trustees' Report.

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

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(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOUNDERS PLEDGE LTD (CONTINUED)

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 12, the Trustees (who are also the 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 the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS 102) 2019 and the Internal Revenue Service for compliance with the local tax regulations in the United States of America. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Health and safety legislation, Taxation legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of donation income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, designing audit procedures over donation income and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOUNDERS PLEDGE LTD (CONTINUED)

material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located 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.

Tara Westcott (Senior Statutory Auditor) for and on behalf of Crowe U.K. LLP Statutory Auditor Fourth Floor St James House St James Square Cheltenham GL50 3PR

Date: 27 June 2023

Page 17 Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income from:
Donations
4
Other trading activities
5
Investments
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net income before net gains on
investments
Net gains on investments
Net income
Foreign exchange gains/(losses)
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
5,756,041
109,768
313
5,866,122
13,161
4,632,165
4,645,326
1,220,796
4,099
1,224,895
1,088,841
2,313,736
8,274,606
2,313,736
10,588,342		 Restricted
funds
2022
£
47,835,982
-
-
47,835,982
-
41,299,317
41,299,317
6,536,665
-
6,536,665
-
6,536,665
17,756,434
6,536,665
24,293,099		 Total
funds
2022
£
53,592,023
109,768
313
53,702,104
13,161
45,931,482
45,944,643
7,757,461
4,099
7,761,560
1,088,841
8,850,401
26,031,040
8,850,401
34,881,441		 Total
funds
2021
£
41,730,792
38,239
454
41,769,485
31,713
35,605,838
35,637,551
6,131,934
6,251
6,138,185
(34,140)
6,104,045
19,926,995
6,104,045
26,031,040

The notes on pages 22 to 42 form part of these financial statements.

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee) REGISTERED NUMBER: 08565148

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
16
Net current assets
Net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 471,162
33,748,836
34,219,998
(607,064)		 2022
£
23,159
1,245,348
1,268,507
33,612,934
34,881,441
24,293,099
10,588,342
34,881,441		 1,030,487
25,209,316
26,239,803
(228,899)		 2021
£
20,136
-
20,136
26,010,904
26,031,040
17,756,434
8,274,606
26,031,040

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

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

V Bhargava

Chair of Trustees Date: 23 May 2023

The notes on pages 22 to 42 form part of these financial statements.

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD (A Company Limited by Guarantee) REGISTERED NUMBER: 08565148

COMPANY BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
16
Net current assets
Net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 929,807
24,515,279
25,445,086
(378,780)		 2022
£
11,961
1,245,348
25,066,306
26,323,615
21,034,660
5,288,955
26,323,615		 641,232
14,109,851
14,751,083
(273,848)		 2021
£
12,172
-
14,477,235
14,489,407
11,566,779
2,922,628
14,489,407

The Company's net movement in funds for the year was £11,834,208 (2021 - £3,122,981).

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

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

V Bhargava Chair of Trustees Date: 23 May 2023

The notes on pages 22 to 42 form part of these financial statements.

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Cash flows from operating activities
Net cash used in operating activities
20
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21
The notes on pages 22 to 42 form part of these financial statements		 2022
£
9,802,452
313
(21,996)
390,677
(1,631,926)
(1,262,932)
-
8,539,520
25,209,316
33,748,836		 2021
£
5,755,632
454
(13,014)
1,075,316
(859,706)
203,050
-
5,958,682
19,250,634
25,209,316

Page 21

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. General information

Founders Pledge Ltd is a charitable company, limited by guarantee, domiciled in England and Wales, company registration number 08565148 and charity registered number 1162201. The registered office is Runway East, 20 St Thomas Street, London, SE1 9RS.

The charity previously operated under the name Founders for Good Ltd however this was amended to Founders Pledge Ltd from 17 January 2023.

The members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), 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.

Founders Pledge Ltd meets the definition of a public benefit entity under FRS 102.

The financial statements consolidate the accounts of Founders Pledge Ltd and its subsidiary undertakings. The subsidiary charities, Founder Pledge Inc. and Founders Pledge GmbH have been included in the consolidation as Founders Pledge Ltd is deemed to have control as they are able to appoint the Trustees of the charities. The results of the subsidiaries have been consolidated on a line by line basis.

The charity has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own income and expenditure account.

2.2 Going concern

Despite the prevailing market conditions caused by global economic uncertainty, high interest rates and rising inflation, Founders Pledge ended 2022 in a strong financial position with 14 months' reserves cover (two months better than target). Founders Pledge successfully fundraised through the year, and anticipates sustaining its managed growth in operations during 2023. The cash position is being closely monitored by management on a monthly basis and quick action will be taken if there are indications of reduced reserve levels.

As a result, the Trustees confirm their assumptions that Founders Pledge is a going concern and that no significant uncertainty exists in this respect and the financial statements have been prepared on that basis.

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.3 Income

All income is recognised once the group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

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

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

All expenditure is accounted for on an accruals basis and includes irrecoverable VAT where applicable. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Costs of raising funds relates to activities that are intended to generate income.

Expenditure on charitable activities is allocated to the relevant charitable activities on a basis consistent with resources used against the strategic plan.

Governance costs relate to the governance of the group apportioned to charitable activities.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

  1. Accounting policies (continued)

2.5 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the spot rate on the date of the transaction.

Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.

2.6 Taxation

As a charity the group is exempt from UK corporation tax to the extent that its income is applied to its charitable objects.

Founders Pledge Ltd is a VAT registered charity and therefore required to comply with VAT law. Quarterly VAT returns are submitted in arrears to HMRC.

2.7 Tangible fixed assets and depreciation

All items with a value over £1,000 are reviewed to identify if they are of a capital nature. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their residual value on a straight line basis over their estimated useful lives.

Depreciation is provided on the following basis:

Office equipment - 25%
Computer equipment - 33%

Where any assets are impaired in value, provisions are made to reduce the book value on such assets to the recoverable amount.

2.8 Investments

Fixed asset investments are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

2.9 Financial instruments

The group 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.

Debtors

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

Page 24

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.10 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

2.11 Pensions

The group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2.12 Fund accounting

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

Restricted funds are donor funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Patient Philanthropy Fund (PPF) was set up during 2021. This is not a seperate legal entity and is included within the charity's own results. This is a restricted fund and is treated as a special trust.

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement:

Income recognition

In applying the group's policy for income recognition the Trustees are required to consider the group's entitlement to the receipt of the income based on the terms of the 'pledge'. The applied accounting treatment is that of receipts, given the uncertainty of whether the funds would be received through Founders Pledge or whether the ‘pledge’ funds would be directed through a private foundation or other charity.

Page 26 Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4.
Income from donations
Unrestricted
funds
2022
Restricted
funds
2022
£
£
Donations
5,756,041
47,835,982
Total 2021
5,870,756
35,860,036
5.
Income from other trading activities
Income from fundraising events
Unrestricted
funds
2022
£
Fundraising event
109,768
DAF Fees
-
109,768
Total 2021
38,239
6.
Investment income
Unrestricted
funds
2022
£
Bank interest
201
Dividend Income
112
313
Total 2021
454		 Total
funds
2022
£
53,592,023
41,730,792
Total
funds
2022
£
109,768
-
109,768
38,239
Total
funds
2022
£
201
112
313
454		 Total
funds
2021
£
41,730,792
Total
funds
2021
£
10,435
27,804
38,239
Total
funds
2021
£
228
226
454

Page 27

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2022
£
Website
9,198
Travel and subsistence
3,189
Advertising
774
Total 2022
13,161
Total 2021
31,713		 Total
funds
2022
£
9,198
3,189
774
13,161
31,713		 Total
funds
2021
£
17,298
4,759
9,656
31,713

Page 28

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Charitable activities
4,632,165
Total 2021
3,626,146		 Restricted
funds
2022
£
41,299,317
31,979,692		 Total
2022
£
45,931,482
35,605,838		 Total
2021
£
35,605,838

9. Analysis of expenditure by activities

Charitable activities
Total 2021		 Activities
undertaken
directly
2022
£
307,774
222,724		 Grant
funding of
activities
2022
£
41,299,317
31,979,692		 Support
costs
2022
£
4,324,391
3,403,422		 Total
funds
2022
£
45,931,482
35,605,838		 Total
funds
2021
£
35,605,838

Page 29

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Events costs
Freelance fees
Consultancy fees
IT costs
Staff training
Recruitment
Other staff costs
Support travel costs
Foreign exchange (gain)/loss
Audit and accountancy
Bank charges
Telephone and internet
Legal expenses
General office expenses
Property rent and other costs
Other costs
Governance costs		 Direct
activities
2022
£
3,836,295
18,973
89,032
114,250
13,600
90,865
14,956
5,051
311,657
6,616
(605,688)
19,816
26,118
3,066
103,712
79,770
114,117
41,233
40,952
4,324,391		 Total
funds
2022
£
3,836,295
18,973
89,032
114,250
13,600
90,865
14,956
5,051
311,657
6,616
(605,688)
19,816
26,118
3,066
103,712
79,770
114,117
41,233
40,952
4,324,391		 Total
funds
2021
£
2,624,582
26,593
2,665
18,199
10,654
75,914
3,657
13,574
135,335
592
143,985
36,162
18,546
2,918
143,453
54,901
63,721
(1,329)
29,300
3,403,422

Page 30

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10.
Analysis of grants
Grants
Total 2021		 Grants to
Institutions
2022
£
41,299,317
31,979,692		 Total
funds
2022
£
41,299,317
31,979,692		 Total
funds
2021
£
31,979,692

Page 31

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. Name of institution

The Group has made the following material grants to institutions during the year:

Action for Happiness
Alpenglow Group
Berkeley Existential Risk Initiative
Berkeley Risk and Security Lab
Center for Applied Rationality
Center for Human-Compatible AI (CHAI)
Centre for Effective Altruism (CEA)
Centre for Long-Term Resilience / Alpenglow
Clean Air Task Force (CATF)
Climate Change Fund
Climate Fund
EIDU
Emergent Ventures
HKI Vitamin A
Impact Challenge
M33
Ocean Conservancy Inc
Redwood Research
Sightsavers
Surgo Ventures UK
Teaching at the Right Level (TaRL) Africa
TerraPraxis
Ukraine TrustChain
We Help Ukrainians
Grants less than £645,000		 2022
£
-
756,900
-
1,577,287
-
-
-
-
-
-
-
750,000
828,514
750,000
-
-
-
-
750,000
-
1,701,650
-
1,000,000
1,200,000
31,984,966
41,299,317		 2021
£
735,000
-
1,160,244
-
1,949,733
1,426,761
2,691,242
1,432,645
971,517
1,020,693
2,994,467
-
-
-
726,970
1,031,923
872,364
966,870
-
750,000
951,784
1,675,335
-
-
10,622,144
31,979,692

Page 32

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11. Auditor's remuneration

2022 2021
£ £
Fees payable for the audit of the consolidated group accounts 18,240 16,550
Fees payable to the group's auditor in respect of:
Audit of the US subsidiary 9,378 9,195
All non-audit services not included above 3,781 3,576

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2022
£
3,384,152
369,857
82,286
3,836,295		 Group
2021
£
2,309,363
271,064
44,155
2,624,582		 Company
2022
£
1,934,700
241,632
44,496
2,220,828		 Company
2021
£
1,635,757
191,672
32,673
1,860,102

The average number of persons employed by the Group during the year was as follows:

Employees
Directors		 Group
2022
No.
33
11
44
43
54		 Group
2021
No.
29
11
40

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FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2022 2021
No. No.
In the band £60,001 - £70,000 4 4
In the band £70,001 - £80,000 4 1
In the band £80,001 - £90,000 1 -
In the band £90,001 - £100,000 7 2
In the band £100,001 - £110,000 2 -
In the band £110,001 - £120,000 - 1
In the band £120,001 - £130,000 1 1
In the band £150,001 - £160,000 - 1
In the band £160,001 - £170,000 1 -

Total remuneration in respect of key management personnel was £1,261,851 (2021: £1,155,474).

During the year ended 31 December 2022, no Trustee received remuneration (2021: £nil) and no Trustee expenses have been incurred (2021: £nil).

Page 34 Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Tangible fixed assets

Group

Cost or valuation
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
On disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Office
equipment
£
20,873
-
(20,379)
494
19,427
1,446
(20,379)
494
-
1,446		 Computer
equipment
£
86,427
21,996
(8,635)
99,788
67,737
17,527
(8,635)
76,629
23,159
18,690		 Total
£
107,300
21,996
(29,014)
100,282
87,164
18,973
(29,014)
77,123
23,159
20,136

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Tangible fixed assets (continued)

Company

Cost or valuation
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
On disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
14.
Fixed asset investments
Group and Company
Valuation
Additions
Disposals
Revaluations
At 31 December 2022		 Office
equipment
£
20,873
-
(20,379)
494
19,427
1,446
(20,379)
494
-
1,446		 Computer
equipment
£
69,187
13,583
(8,635)
74,135
58,461
12,348
(8,635)
62,174
11,961
10,726		 Total
£
90,060
13,583
(29,014)
74,629
77,888
13,794
(29,014)
62,668
11,961
12,172
Listed
investments
£
1,631,926
(390,677)
4,099
1,245,348

Page 36

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15. Debtors

Trade debtors
Amounts owed by subsidiaries
Other debtors
Prepayments and accrued income		 Group
2022
£
53
-
17,717
453,392
471,162		 Group
2021
£
37,810
-
8,521
984,156
1,030,487		 Company
2022
£
53
495,356
9,726
424,672
929,807		 Company
2021
£
35,000
18,432
6,593
581,207
641,232

16. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to subsidiaries
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2022
£
74,139
-
113,064
14,811
405,050
607,064		 Group
2021
£
572
-
52,900
9,799
165,628
228,899		 Company
2022
£
51,091
24,761
113,064
14,811
175,053
378,780		 Company
2021
£
322
73,254
52,900
9,799
137,573
273,848

Deferred income relates to a consultancy contract.

17. Financial instruments
Group Group Company Company
2022 2021 2022 2021
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 1,245,348 - 1,245,348 -

Financial assets measured at fair value through income and expenditure comprise listed investments.

Page 37

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Restricted funds
Pledge fulfilment fund
Total of funds		 Balance at 1
January
2022
£
8,274,606
17,756,434
26,031,040		 Income
£
5,866,122
47,835,982
53,702,104		 Expenditure
£
(4,645,326)
(41,299,317)
(45,944,643)		 Gains/
(Losses)
£
1,092,940
-
1,092,940		 Balance at
31
December
2022
£
10,588,342
24,293,099
34,881,441

Restricted funds

Pledge fulfilment fund represents pledges received from members where due diligence on a potential recipient has not been completed.

The Patient Philanthropy Fund (PPF)

The Fund was launched as a special trust within Founders Pledge Ltd in October 2021. The PPF is an FP-incubated grant-making vehicle which invests to give for maximum long-term impact.

The PPF takes a patient approach to philanthropy: it invests contributions until the time is optimal for it to make large grants aimed at improving the long-term future. This means that - in addition to identifying the highest-impact giving opportunities at any particular point in time - it aims to identify the point in time when the highest-impact opportunities are available, which may be years, decades, or even centuries ahead.

In accordance with its long-term strategy and purpose (and Charity Commission guidance). FFG is the sole trustee of the PPF. It has appointed and devolved all management responsibilities to a Management Committee (MC) consisting of purpose-aligned experts on timing of giving

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18. Statement of funds (continued) Statement of funds - prior year

Balance at
1 January
2021
£
Income
£
Expenditure
£
Transfers
in/out
£
Unrestricted
funds
General Funds -
all funds
5,378,997
5,909,449
(3,657,859)
678,159
Restricted
funds
Pledge fulfilment
fund
14,547,998
35,860,036
(31,979,692)
(678,159)
Total of funds
19,926,995
41,769,485
(35,637,551)
-
19.
Analysis of net assets between funds
Analysis of net assets between funds - current year
Unrestricted
funds
2022
£
Tangible fixed assets
23,159
Fixed asset investments
1,245,348
Current assets
9,926,899
Creditors due within one year
(607,064)
Total
10,588,342		 Gains/
(Losses)
£
(34,140)
6,251
(27,889)
Restricted
funds
2022
£
-
-
24,293,099
-
24,293,099		 Balance at
31
December
2021
£
8,274,606
17,756,434
26,031,040
Total
funds
2022
£
23,159
1,245,348
34,219,998
(607,064)
34,881,441

Page 39

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19.
Analysis of net assets between funds (continued)
Analysis of net assets between funds - prior year
Unrestricted
funds
2021
Restricted
funds
2021
£
£
Tangible fixed assets
20,136
-
Current assets
8,483,369
17,756,434
Creditors due within one year
(228,899)
-
Total
8,274,606
17,756,434
20.
Reconciliation of net movement in funds to net cash flow from operating activities
Group
2022
£
Net income for the year (as per Statement of Financial Activities)
7,761,560
Adjustments for:
Depreciation charges
18,973
(Gain)/Loss on investments
(4,099)
Dividends and interest from investments
(313)
Decrease/(increase) in debtors
559,325
Increase in creditors
378,165
Foreign exchange losses
1,088,841
Net cash provided by operating activities
9,802,452
21.
Analysis of cash and cash equivalents
Group
2022
£
Cash in hand
33,748,836
Total cash and cash equivalents
33,748,836		 Total
funds
2021
£
20,136
26,239,803
(228,899)
26,031,040
Group
2021
£
6,138,185
26,650
6,251
(454)
(391,126)
38,497
(62,821)
5,755,182
Group
2021
£
25,209,316
25,209,316

Page 40

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

(A Company Limited by Guarantee)

FOUNDERS PLEDGE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

22. Analysis of changes in net debt

Cash at bank and in hand At 1
January
2022
£
25,209,316
25,209,316		 Cash flows
£
8,539,520
8,539,520		 At 31
December
2022
£
33,748,836
33,748,836

23. Operating lease commitments

At 31 December 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2022
£
103,271
201,665
304,936		 Group
2021
£
-
-
-		 Company
2022
£
50,784
175,392
226,176		 Company
2021
£
-
-
-

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

Group Group Company Company
2022 2021 2022 2021
£ £ £ £
Operating lease rentals 113,067 - 60,580 -

24. Related party transactions

During the year ended 31 December 2022, donations and contributions totalling £1,224,309 (2021: £1,153,591) were received from Trustees and key management personnel (and their immediate relatives).

During the prior year, grants were made to Founders Pledge gGmbH totalling £86,145. This was a related party through the CEO of Founders Pledge Ltd who held a majority stake in the entity before donating to the group. No transactions occurred during 2022 and no balances were outstanding at either 31 December 2022 or 31 December 2021.

Page 41

Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

FOUNDERS PLEDGE LTD

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

25. Subsidiaries

Founders Pledge Inc.

The above charity is registered at 228 Park Ave S, PMB 71081, New York, New York 10003 in the United States of America, and is consolidated as control exists through the ability of Founders Pledge Ltd to appoint members of the Founders Pledge, Inc Board of Directors.

The financial results for the year translated to GBP (£) were:

2022 2021
Income 19,011,057
19,218,051		 21,401,629
Expenditure 23,027,761
23,007,660		 19,322,300
Investment gains Nil
542		 6,252
(Loss)/Profit (4,016,704)
(3,790,151)		 2,079,328
Net assets 7,263,934
7,277,440		 10,082,362

Amounts owed to Founders Pledge Inc. are included as a debtor in these accounts were £469,057 (2021:£489,144 £17,422).

Founders Pledge gGmbH

The above charity is registered at Friedrichstr, 206, c/o e.ventures, 10969 Berlin, Germany, and was acquired on 4 December 2020. The entity was donated to the group by the sole shareholder for no cost and therefore is consolidated on the basis of ownership.

During the year a grant of £86,145 was awarded to Founders Pledge gGmbH from Founders Pledge Ltd.

The financial results for the year translated to GBP (£) were:

2022 2021
Income 1,169,758 2,356,345
Expenditure 1,343,447
1,344,460		 1,526,528
(Loss)/Profit (173,689)
(174,702)		 829,816
Net assets 1,289,806
1,290,129		 1,412,512

Amounts owed from Founders Pledge gGmbH are included as a debtor in these accounts were £1,538 (2021: creditor of £74,840).

For both subsidiaries, the foreign exchange differences on consolidation are shown in the consolidated SOFA beneath the net income for the year.

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Doc ID: bc631e7e98bb8f234c4b0c4da89dee347f3d23a3

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Founders Pledge Group Accounts
Founders Pledge L...3 16 May 2023.pdf
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