## 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 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. ## _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). 2 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. 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 **----- Start of picture text -----**
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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 4 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: - 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: 17.10.22 5 ## 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| |---|---| 6 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|)||| ||)||| ||)||| ||)||| |…………………..…………|) on behalf of the Trustees||| |Paul Williams|||| ||)||| ||)||| ||)||| |…………..…...……………|)||| |James MacLeay|)||| Date: 17.10.22 7 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. 8 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| |---|---|---|---| ## 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| |---|---|---|---| ## 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 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| |---|---| 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. 10