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2022-12-31-accounts

EMPATHY ACTION CIO Registered Charity Number: 1162224

ANNUAL REPORT & ACCOUNTS

FOR THE PERIOD ENDED

31st December 2022

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 Colin Crisp 5 March 2019 Isabel Hodgson 22 May 2023 Laura Cook 22 May 2023

reappointed 28 February 2022 reappointed 28 February 2022 reappointed 28 February 2022 reappointed 28 February 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 deficit of £5,578 made up of deficit of £6,810 on General Funds and a surplus of £1,231 on Designated Funds.

Incoming resources

Incoming resources decreased by £6,247 over the previous year. While income from simulations, handicrafts and donations all increased over prior year, fundraising was lower reflecting the inclusion of funds for The High Life in 2021. The increases in income reflected significantly more simulation and handicraft activity than in 2021.

Resources expended

Handicraft costs increased reflecting increased activity, and the net profit on handicrafts at £1,971 represents a margin of 58%, upon last year. No donations given were recorded during the year. Expenditure on simulations decreased, despite including some consultancy fees. Office, administration and governance costs were similar to the previous year.

Balance sheet

Fixed assets represents one computer which is now two-thirds depreciated. Total stock of handicrafts decreased from the previous year and there is one significant debtor to the value of £1,750. the bank balance at £19,095 is reduced by £5,279. Designated Funds increased by £1,231, with no recorded expenditure, and General Funds decreased by £6,810.

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.

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

Approval Statement

This report was approved by the Trustees of the Charity

…………………………………… P. Williams

…………………………………… J. MacLeay

) ) ) on behalf of the Trustees ) )

Date: 29 September 2023

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 2022, 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:

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:

have not been met; or

Date: 29 September 2023

5

Empathy Action CIO Statement of Financial Activities For the period ended 31st December 2022

Note
Incoming Resources
Voluntary Income
2
Activities for generating funds
3
Total Incoming Resources
Resources Expended
Cost of generating funds
Fundraising trading costs
5
Simulation costs
5
Desperate Journeys
5
Donations
5
Total
Office, administration and governance
5
Interest income
Total Net Resources Expended
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		 General Designated
Total
Funds
Funds
Funds
2022
2022
2022
£
£
£
3,792
431
4,224
12,709
800
13,509
16,501
1,231
17,733
3,572
3,572
5,288
5,288
146
146
-
-
5,434
-
5,434
14,322
14,322
17
17
23,311
-
23,311
(6,810)
1,231
(5,578)
(6,810)
1,231
(5,578)
20,906
9,020
29,926
14,097
10,251
24,348		 Total
Funds
2021
£
16,828
7,152
23,980
2,145
6,967
97
543
7,606
14,177
1
23,927
53
53
29,873
29,926

6

Empathy Action CIO Balance Sheet as at 31st December 2022

Note
Fixed Assets
7
Current Assets
Stock
Prepayments
8
Debtors
9
Cash at bank and in hand
Total Fixed and Current Assets
Current Liabilities
Creditors
10
Net Assets
Designated Funds
11
General Funds
11
31st December 2022
)
)
)
)
…………………..…………
) on behalf
Paul Williams
)
)
)
…………..…...……………
)
James MacLeay
)		 2022
£
553
2,950
-
1,750
19,095
24,348
-
24,348
10,251
14,097
24,348
of the Trustees		 2021
£
1,106
4,294
-
153
24,374
29,925
-
29,926
9,020
20,906
29,926

Date: 29 September 2023

7

Empathy Action CIO Notes to the Accounts for the year ended 31st December 2022

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 2022

2 Voluntary Income
Donations
Fundraising
3 Activities for generating funds
Simulations
Handicraft sales
4 Trustees' Remuneration and Expenses		 General
Designated
Funds
Funds
2022
2022
£
£
3,792
421
-
10
3,792
431
General
Designated
Funds
Funds
2022
2022
£
£
7,200
800
5,509
12,709
800		 Total
Funds
2022
£
4,214
10
4,224
Total
Funds
2022
£
8,000
5,509
13,509		 Total
Funds
2021
£
3,051
13,777
16,828
Total
Funds
2021
£
2,700
4,452
7,152

Trustees received no remuneration during the year. Trustee expenses were reimbursed for appropriate travel and other expenditure.

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
Interest income
Total expenditure
6 Staff costs and numbers		 General
Designated
Funds
Funds
2022
2022
£
£
3,538
33
3,572
-
5,288
146
5,434
-
14,322
17
23,311
-		 Total
Funds
2022
£
3,538
33
3,572
-
5,288
146
5,434
14,322
17
23,311		 Total
Funds
2021
£
2,080
65
2,145
543
6,967
97
7,606
14,177
1
23,927

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 2022

7 Fixed Assets

Fixed assets consist of computers and communication equipment which is depreciated over an expected useful life of 3 years.

----- Start of picture text -----
2022 2021
£ £
-
Opening Gross book value 1,106
-
Acquistions 1,658
Disposals - 552
Depreciation 552 -
Closing Net book value 553 1,106
----- End of picture text -----

8 Prepayments

There were no Prepayments as at year end.

9 Debtors

There was one debtor as at year end, Headington School to the value of £1,750.

10 Creditors

There were no Creditors as at year end.

----- Start of picture text -----
11 Funds Analysis General Designated Total Total
Funds Funds Funds Funds
2022 2022 2022 2021
£ £ £ £
Balance brought forward 20,906 9,020 29,926 29,873
Total incoming resources 16,501 1,231 17,733 23,980
-
Total resources expended 23,311 23,311 23,927
Other recognised (losses)/gains
Balance at 31 December 14,097 10,251 24,348 29,926
----- 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.

10