EMPATHY ACTION CIO
Registered Charity Number: 1162224
ANNUAL REPORT & ACCOUNTS
FOR THE PERIOD ENDED
31st December 2021
Empathy Action CIO Contents Page
| 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 |
Empathy Action CIO Report of the Trustees
Principal address: 15 Serpentine Road Sevenoaks Kent, TN13 3XR
Date of appointment
Trustees
Paul Williams 16 June 2015 Mike Fawcett 15 March 2016 James MacLeay 15 March 2016 Natasha Williams 15 March 2016 Victoria Mason 5 March 2019 Colin Crisp 5 March 2019
reappointed 28 February 2022 reappointed 28 February 2022 reappointed 28 February 2022 reappointed 28 February 2022 resigned 5 March 2022 reappointed 28 February 2022
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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.
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 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 poverty relief initiatives and respond to humanitarian need through volunteering, or donating goods, skills or financial resources.
The measures put in place to contain the Covid 19 pandemic disrupted many of our programmes which require access to schools and face to face contact with pupils. Empathy Action sought innovative and creative ways to implement our mission in the crisis. These included the development of ‘The High Life’, a climate justice simulation that is available for schools and other groups to use by downloading the material from our website (www.empathyaction.org).
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Empathy Action CIO Report of the Trustees
Financial review
The net outcome for the year was a surplus of £53, made up of a loss of £451 on General Funds and a gain of £504 on Designated Funds.
Incoming resources
Incoming resources increased by £8,540 over the previous year with a significant increase in income from fundraising, including specific income relating to The High Life.
Resources expended
Handicraft costs were significantly lower than previous year, and the net profit on handicrafts at £2,372 represents a margin of 53%. Donations given were lower than last year but expenditure on simulations increased, reflecting the costs of developing The High Life. Office, administration and governance costs increased by £2,094, reflecting principally the cost of materials for building the new storage facility.
Balance sheet
Fixed assets represents one computer purchased during the year. Total stock of handicrafts decreased slightly from the previous year and the bank balance at £24,374 is reduced by £2,060. Designated Funds increased by £504 and General Funds decreased by £451. Restricted Funds income from Pickwell was fully expended in the year.
Funds
The charity has three categories of funds, General, Designated and Restricted. 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. Restricted Funds comprise those funds for which the donors have specified a purpose.
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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
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…………………………………… P. Williams …………………………………… J. MacLeay
) ) ) ) ) on behalf of the Trustees ) ) ) )
Date: 17.10.22
Charity's Principal Address 15 Serpentine Road Sevenoaks Kent, TN13 3XR
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Empathy Action CIO Independent Examiner's Report
I report on the accounts of the Charity for the year ended 31 December 2021, 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:
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examine the accounts under section 145 of the 2011 Act;
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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
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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:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with Section 130 of the 2011 Act; and
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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: 17.10.22
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Empathy Action CIO Statement of Financial Activities For the period ended
31st December 2021
| General Designated Restricted Total Funds Funds Funds Funds Note 2021 2021 2021 2021 £ £ £ £ Incoming Resources Voluntary Income 2 12,373 455 4,000 16,828 Activities for generating funds 3 6,882 270 - 7,152 Total Incoming Resources 19,255 725 4,000 23,980 Resources Expended Cost of generating funds Fundraising trading costs 5 2,145 - - 2,145 THL Simulaton costs 5 2,930 - 4,000 6,930 TPT Simulation costs 5 36 - - 36 DJ Simulation costs 5 97 - - 97 Donations 5 323 221 - 543 Total 3,386 221 4,000 7,606 Office, administration and governance 5 14,177 - - 14,177 Interest income 1 - - 1 Total Net Resources Expended 19,706 221 4,000 23,927 (451) 504 - 53 (451) 504 - 53 21,357 8,516 - 29,873 20,906 9,020 - 29,926 Net Incoming/(Outgoing) Resources for the Year Charitable activities : Funds at 1st January Accumulated Funds at 31st December Net Movement in Funds for the year |
Total Funds 2020 £ 4,547 10,893 15,440 5,613 - 1,666 - 3,517 5,183 12,083 11 22,869 (7,429) (7,429) 37,302 29,873 |
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Empathy Action CIO Balance Sheet as at 31st December 2021
| 31 December | 31 December | ||
|---|---|---|---|
| Note | 2021 | 2020 | |
| £ | £ | ||
| Fixed Assets | 7 | 1,106 | - |
| Current Assets | |||
| Stock | 4,294 | 4,650 | |
| Prepayments | 8 | - | - |
| Debtors | 9 | 153 | 289 |
| Cash at bank and in hand | 24,374 | 26,434 | |
| Total Fixed and Current Assets | 29,926 | 31,373 | |
| Current Liabilities | |||
| Creditors | 10 | - | 1,500 |
| Net Assets | 29,926 | 29,873 | |
| Designated Funds | 11 | 9,020 | 8,516 |
| General Funds | 11 | 20,906 | 21,357 |
| Restricted Funds | 11 | - | - |
| 29,926 | 29,873 | ||
| 31st December 2021 | ) | ||
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| …………………..………… | ) on behalf of the Trustees | ||
| Paul Williams | |||
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| ) | |||
| …………..…...…………… | ) | ||
| James MacLeay | ) |
Date: 17.10.22
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Empathy Action CIO Notes to the Accounts
for the year ended 31st December 2021
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 resources.
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.
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Empathy Action CIO Notes to the Accounts
for the year ended 31st December 2021
| 2 Voluntary Income Donations Fundraising 3 Activities for generating funds Simulations Handicraft sales |
General Designated Restricted Funds Funds Funds 2021 2021 2021 £ £ £ 2,746 305 - 9,627 150 4,000 12,373 455 4,000 General Designated Restricted Funds Funds Funds 2021 2021 2021 £ £ £ 2,430 270 - 4,452 - - 6,882 270 - |
Total Funds 2021 £ 3,051 13,777 16,828 Total Funds 2021 £ 2,700 4,452 7,152 |
Total Funds 2020 £ 3,208 1,339 4,547 Total Funds 2020 £ 5,500 5,393 10,893 |
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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 given THL Simulations TPT Simulations DJ Simulations Total Office, administration and governance Interest income Total expenditure |
General Designated Restricted Funds Funds Funds 2021 2021 2021 £ £ £ 2,080 65 2,145 - - 323 221 - 2,930 - 4,000 36 - - 97 3,386 221 4,000 14,177 - - 1 - - 19,707 221 4,000 |
Total Funds 2021 £ 2,080 65 2,145 543 6,930 36 97 7,606 14,177 1 23,927 |
Total Funds 2020 £ 5,441 172 5,613 3,517 1,666 - 5,183 12,083 11 22,869 |
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6 Staff costs and numbers
The CIO is supported by volunteers and has no employees. There is therefore no individual remunerated over £60,000.
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Empathy Action CIO Notes to the Accounts for the year ended 31st December 2021
7 Fixed Assets
Fixed assets consist of computers and communication equipment which is depreciated over an expected useful life of 3 years.
| Opening Gross book value Acquistions Disposals Depreciation Closing Net book value |
31 December 31 December 2021 2020 £ £ - - 1,658 - 552 - - - 1,106 - |
|---|---|
- 8 Prepayments
There were no Prepayments as at year end.
- 9 Debtors
There were no significant debtors as at year end.
10 Creditors
There were no Creditors as at year end.
| 11 Funds Analysis Balance brought forward Total incoming resources Total resources expended Other recognised (losses)/gains Balance at 31 December |
General Designated Restricted Total Total Funds Funds Funds Funds Funds 2021 2021 2021 2021 2020 £ £ £ £ £ 21,357 8,516 - 29,873 37,302 19,255 725 4,000 23,980 15,440 19,706 221 4,000 23,927 22,879 1 - - 1 11 20,906 9,020 - 29,926 29,873 |
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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. Restricted funds costs of a grant from the Pickwell Foundation for the development of a climate justice simulation.
12 Related parties
No trustee has received any remuneration or benefit from the charity.
13 Post Balance sheet events
None.
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