EMPATHY ACTION CIO Registered Charity Number: 1162224
ANNUAL REPORT & ACCOUNTS FOR THE PERIOD ENDED
31st December 2020
Empathy Action CIO Contents Page
----- Start of picture text -----
|||
|---|---|
|Page|
|Report of the Trustees|1 to 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Accounts|8 to 10|
----- End of picture text -----
Empathy Action CIO Report of the Trustees
Principal address: 15 Serpentine Road Sevenoaks Kent, TN13 3XR
Trustees
Date of appointment
Paul Williams 16 June 2015 reappointed 7 May 2019 Mike Fawcett 15 March 2016 reappointed 5 March 2019 James MacLeay 15 March 2016 reappointed 5 March 2019 Natasha Williams 15 March 2016 reappointed 5 March 2019 Victoria Mason 5 March 2019 Colin Crisp 5 March 2019
1
Empathy Action CIO Report of the Trustees
Report of the Trustees
Our Structure, Governance and Management
Empathy Action is a Charitable Incorporated Organisation. The only voting members are its charity trustees, who are appointed by the existing trustees. The charity was registered on June 16th, 2015. Empathy Action is managed by its founder Director Ben Solanky and run by its full-time and part-time volunteers who receive no financial remuneration except for expenses properly incurred in the course of their voluntary activity that fall within the guidelines laid down in its expenses policy. In November 2019 Matt Gurney gave notice of his intention to resign as Co-Director with effect from July 31st, 2020.
Our Objectives
Empathy Action aims to promote the prevention and relief of poverty and to advance education by: providing experiential learning opportunities which enable participants to develop their understanding of poverty, and encourage compassionate action; undertaking research into factors that contribute to poverty and ways to mitigate these; and assisting in the provision of education, training, and healthcare projects to enable individuals to generate a sustainable income.
Our Mission
We believe that everyone is able to engage in the battle against poverty and injustice and that we each make a crucial difference. Our mission is to inspire and empower people to work together to improve the lives of others in need. We are motivated by the teaching of Jesus to love our neighbour as ourselves.
Our Core Values
CONVICTION: we believe that honouring others above oneself, caring for each other and acting with courage, can change this broken world we live in.
COMPASSION: we believe that God lovingly created all people in His image, to live equally and with dignity. COMMUNITY: we believe that acts of collaboration are like ripples, spreading outward, far-reaching and with transformative power.
Our activities
Empathy Action focuses on deepening people’s awareness of, and empathy with, global deprivation and finding strategic ways of helping those in need. It achieves this primarily through its experiential activities; igniting a desire to help, which it believes will fuel compassionate action. Alongside this, Empathy Action is identifying particular communities in need of assistance, working closely with them to establish viable livelihood development schemes, including the production and distribution of handicrafts. This targeted approach has the twofold objective of bringing about positive transformation of such groups whilst providing Empathy Action’s partners with opportunities to become part of the solution through, for example, the donation of skills or financial resources or the sale of handicrafts. Empathy Action's experiential activities include simulations of the life experiences of disadvantaged and marginalised groups around the world. These simulations are activities that allow participants to walk in the shoes of those living in extreme poverty and refugees. These aim to help the public better understand the needs of people facing such situations by offering a small glimpse into the reality faced by millions worldwide. The experiences are used to stimulate discussion about how participants can contribute in their personal and professional lives to initiatives in the area of poverty relief and respond to humanitarian need through volunteering, or donating goods, skills or financial resources. The trustees have reviewed the guidance issued by the Charity Commission on public benefit and had regard to them in the oversight of Empathy Action’s activities. At the time of writing (September 2021) many of our programmes have remained disrupted by the measures put in place to respond to the Covid 19 pandemic. Empathy Action is seeking innovative and creative ways to implement our mission in the current crisis in order to show compassion to the most vulnerable.
2
Empathy Action CIO Report of the Trustees
Financial review
Expenditure for the year exceeded income by £7,429, following a significant decrease in both income and expenditure from the prior year.
Incoming resources
Activities for generating resources consist of simulations and handicraft sales.
Simulation income at £5,500 was greatly reduced from the previous year as it was only possible to deliver two Poverty Trap simulations. Handicraft sales increased to £5,393. Income from donations and fundraising at £4,547 was significantly lower than the previous year.
Resources expended
Fundraising trading costs consist of the cost of sales for handicrafts, and costs incurred for fundraising. These totalled £5,613 compared with £3,188 in the previous year.
Simulation costs at £1,666 reduced due to a reduction in the number of Poverty Trap simulations. No costs were incurred for Desperate Journeys. A number of grants were made from the Livelihood Development Fund, totalling £3,517. Office, general and administration costs at £12,083 reduced significantly compared to the previous year, with reductions in rent, travel and substance.
Balance sheet
Cash stood at £26,434 at the end of the year, slightly lower than the prior year. Current assets were lower than the prior year, and fixed assets were nil as all assets are fully depreciated.
Funds
The charity has two categories of funds, General and Designated. Designated Funds consist of the Livelihood Development Fund, to which 10% of the income from simulations, fundraising and donations is transferred to fund projects to alleviate poverty and suffering. The balances of both funds decreased during the year as expenditure exceeded income for both categories.
3
Empathy Action CIO Report of the Trustees
Public Benefit
The Trustees confirm that they comply with their duty to have regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.
Approval Statement
This report was approved by the Trustees of the Charity
…………………………………… P. Williams …………………………………… J. MacLeay
) ) ) ) ) on behalf of the Trustees ) ) ) )
Date: 27.09.21
Charity's Principal Address 15 Serpentine Road Sevenoaks Kent, TN13 3XR
4
Empathy Action CIO Independent Examiner's Report
I report on the accounts of the Charity for the year ended 31 December 2020, which are set out on pages 6 to 10.
Respective Responsibilities of Trustees and Examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
-
examine the accounts under section 145 of the 2011 Act;
-
to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
-
state whether particular matters have come to my attention.
Basis of Independent Examiner's Statement
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent Examiner's Statement
In connection with my examination, no matters have come to my attention:
-
(1) which gives me reasonable cause to believe that in any material respect the requirements:
-
to keep accounting records in accordance with Section 130 of the 2011 Act; and
-
to prepare accounts that accord with the accounting records and comply with the accounting requirements of the 2011 Act.
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Date: 25.09.21
5
Empathy Action CIO Statement of Financial Activities for the year ended 31st December 2020
----- Start of picture text -----
General Designated Total Total
Funds Funds Funds Funds
Note 2020 2020 2020 2019
£ £ £ £
Incoming Resources
Voluntary Income 2 3,344 1,203 4,547 12,420
Activities for generating funds 3 10,343 550 10,893 30,765
Total Incoming Resources 13,687 1,753 15,440 43,185
Resources Expended
Cost of generating funds
Fundraising trading costs 5 5,613 - 5,613 3,188
Charitable activities :
Simulation costs 5 1,666 - 1,666 6,871
Desperate Journeys 5 - - - 5,093
Donations 5 - 3,517 3,517 1,008
Total 1,666 3,517 5,183 12,972
Office, administration and governance 5 12,083 12,083 21,743
Interest income 11 - 11 -
Total Net Resources Expended 19,352 3,517 22,869 37,904
Net Incoming/(Outgoing) Resources for the Year (5,665) (1,764) (7,429) 5,281
Net Movement in Funds for the year (5,665) (1,764) (7,429) 5,281
Funds at 1st January 27,022 10,281 37,302 32,021
Accumulated Funds at 31st December 21,357 8,516 29,873 37,302
----- End of picture text -----
6
Empathy Action CIO Balance Sheet as at 31st December 2020
| 31 December | 31 | December | ||
|---|---|---|---|---|
| Note | 2020 | 2019 | ||
| £ | £ | |||
| Fixed Assets | 7 | - | - | |
| Current Assets | ||||
| Stock | 4,650 | 7,843 | ||
| Prepayments | 8 | - | 743 | |
| Debtors | 9 | 290 | 2,880 | |
| Cash at bank and in hand | 26,434 | 27,779 | ||
| Total Fixed and Current Assets | 31,374 | 39,245 | ||
| Current Liabilities | ||||
| Creditors | 10 | 1,500 | 1,943 | |
| Net Assets | 29,873 | 37,302 | ||
| Designated Funds | 11 | 8,516 | 10,281 | |
| General Funds | 11 | 21,357 | 27,022 | |
| Restricted Funds | 11 | - | - | |
| 29,873 | 37,302 | |||
| 31st December 2020 | ) | |||
| ) | ||||
| ) | ||||
| ) | ||||
| …………………………………… | ) on behalf of the Trustees | |||
| P. Williams | ) | |||
| ) | ||||
| ) | ||||
| ) | ||||
| …………………………………… | ) | |||
| J. MacLeay | ||||
| Date: 27.09.21 |
7
Empathy Action CIO Notes to the Accounts
for the year ended 31st December 2020
1 Accounting Policies
Basis of Preparation of Accounts
The accounts of the charity have been prepared on the basis of historic cost in accordance with the Statement of Recommended Practice (SORP 2005) and with Accounting Standards and Charities Act applicable to smaller charities. The CIO was formed on 16 June 2015.
Fund Structure
General Funds comprise those funds which the Trustees have not designated for any specific purpose. Designated Funds relate to The Livelihood Development Fund, which has been established by setting aside 10% of the income from simulations, donations and fundraising for funding projects designed to alleviate poverty and suffering.
Restricted Funds comprise those funds for which the donors have specified a purpose.
Incoming Resources
All income is recognised in the Statement of Financial Activities (SOFA) when the conditions for receipt have been met and there is reasonable assurance of receipt. Where a claim for repayment of income tax has been or will be made such income is grossed up for the tax recoverable. The following accounting policies are applied to different categories of income:
Grants and Donations Receivable
Grants and donations are recognised in the SOFA when conditions for receipt have been complied with.
Charitable Activities
Charitable expenditure is charged to the Statement of Financial Activities for the period to which it relates.
Gifts in kind
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SoFA as incoming resources when receivable.
Donated services & facilities
These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material . The value placed on these resources is the estimated value to the charity of the service or facility received.
Liability recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out
Tangible fixed assets for use
These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or a reasonable value on receipt.
Stocks and work in progress
These are valued at the lower of cost or market value.
Reserves policy
To hold sufficient reserves for the foreseeable future.
8
Empathy Action CIO Notes to the Accounts
for the year ended 31st December 2020
| 2 Voluntary Income Donations Fundraising 3 Activities for generating funds Simulations Handicraft sales |
General Designated Funds Funds 2020 2020 £ £ 2,894 314 450 889 3,344 1,203 General Designated Funds Funds 2020 2020 £ £ 4,950 550 5,393 - 10,343 550 |
Total Funds 2020 £ 3,208 1,339 4,547 Total Funds 2020 £ 5,500 5,393 10,893 |
Total Funds 2019 £ 9,116 3,304 12,420 Total Funds 2019 £ 27,845 2,920 30,765 |
|---|---|---|---|
4 Trustees' Remuneration and Expenses
Trustees received no remuneration during the year. Trustee expenses were reimbursed for appropriate travel and other expenditure.
| 5 Analysis of resources expended Cost of Generating Funds Handicraft sales Fundraising Total Charitable expenditure Donations Simulations Desperate Journeys Total Office, administration and governance Total expenditure |
General Designated Funds Funds 2020 2020 £ £ 5,441 - 172 - 5,613 - - 3,517 1,666 - - - 1,666 3,517 12,083 - 19,362 3,517 |
Total Funds 2020 £ 5,441 172 5,613 3,517 1,666 - 5,183 12,083 22,879 |
Total Funds 2019 £ 2,692 496 3,188 1,008 6,871 5,093 12,972 21,743 37,904 |
|---|---|---|---|
6 Staff costs and numbers
The CIO is supported by volunteers and has no employees. There is therefore no individual remunerated over £60,000.
9
Empathy Action CIO Notes to the Accounts for the year ended 31st December 2020
7 Fixed Assets
Fixed assets consist of computers and communication equipment which is depreciated over an expected useful life of 3 years. All items are currently fully depreciated.
----- Start of picture text -----
31 December 31 December
2020 2019
£ £
Opening Gross book value - 93
Acquistions - -
Disposals - -
Depreciation - 93
Closing Net book value - -
----- End of picture text -----
8 Prepayments
Prepayments in 2019 relate to insurance premiums.
9 Debtors
There were no significant debtors at year end.
10 Creditors
Creditors consist of a deposit from LEH in respect of a forthcoming simulation.
----- Start of picture text -----
11 Funds Analysis General Designated Total Total
Funds Funds Funds Funds
2020 2020 2020 2019
£ £ £ £
Balance brought forward 27,022 10,281 37,302 32,021
Total incoming resources 13,687 1,753 15,440 43,185
Total resources expended (19,362) (3,517) (22,879) (37,904)
Other recognised (losses)/gains 11 - 11 -
Balance at 31 December 21,357 8,516 29,873 37,302
----- End of picture text -----
Designated Funds relate to the Livelihood Development Fund. This has been established by setting aside part of the income from simulations, donations and fundraising for funding projects designed to alleviate poverty and suffering.
12 Related parties
No trustee has received any remuneration or benefit from the charity.
13 Post Balance sheet events
As as result of the global pandemic in 2020 the charity reviewed its operational and financial plans and there was a substantial reduction in all sources of income. However given the charity’s low fixed costs and substantial cash reserves the trustees consider that the charity remains a going concern.
10