2020-12-31-accounts - The Buddy Bag Foundation

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Report of the Trustees and Unaudited Financial Statements for the year ended 31 December 2020 for The Buddy Bag Foundation (A Charitable Incorporated Organisation) REGISTERED CHARITY NUMBER: 1164916

Report of the Trustees	4
Objectives and Activities	6
Achievements and Performance	10
Financial Review	21
Structure, Governance and Management	26
Reference and Administrative Details	28
Independent Examiner’s Report	29
Consolidated Statement of Financial Activities	30
Balance Sheets	31
Notes to the Financial Statements	32 to 40

Buddy Bag Foundation Annual Report 2020

Report of the Trustees

The trustees present their report together with the consolidated financial statements of the Buddy Bag Foundation (the charity) for the year ended 31 December 2020.

The financial statements have been prepared using the accounting policies set out in note 1 to the financial statements and comply with the Charitable Incorporated Organisation’s trust deed, applicable law and 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) – (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (March 2018) and the Charities Act 2011.

The Buddy Bag Foundation is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission for England and Wales on 17 December 2015.

IMPLICATIONS OF COVID-19 ON THE CHARITY

This report covers the year ended 31 December 2020, after COVID-19 had affected life in the UK.

COVID-19 has greatly impacted on all the fundraising and charitable activities of this charity. We continue to

adapt and to thrive. Throughout this Trustees’ Report we have described what we have been doing since COVID-19 measures were introduced in the UK as well as our future plans.

Buddy Bag Foundation Annual Report 2020

Founder’s Report

My name is Karen Williams. I am passionate about making a difference to the lives of others.

Where did the Buddy Bag idea come from?

During a visit to Australia in 2014, I was inspired by an article about the Alannah and Madeline Foundation (www.amf.org.au) which has delivered more than 50,000 Buddy Bags to children in emergency care since 2007. On my return from Australia, I researched the facilities available to children in emergency care in the UK and discovered a huge need for Buddy Bags here. To ensure as many children as possible can benefit from the Buddy Bag scheme, I set up the Live Love Laugh Foundation (which later became the Buddy Bag Foundation) and launched the Buddy Bag appeal in the UK, with the help and support of The Alannah and Madeline Foundation.

Our goal

To restore a sense of safety and security into a child’s life during a traumatic time is one of the first steps to recovery. Buddy Bags are something a child can call their own, no matter where they go. Tailored across a wide age range, from new born babies to teenagers, they contain all the essential items a child needs straight away - such as toiletries, pyjamas, socks and underwear. They also include comfort items, including a book and a teddy bear.

Starting in the West Midlands, our aim was to deliver 20,200 Buddy Bags to 300 refuges across the UK by 2020. We achieved these objectives in 2019. To help support this aim, we are looking for companies and individuals that would like to get involved in a community project. They can do this by either sponsoring Buddy Bags in their local area, by donating funds to help pay for the items that go into the bags, or by donating their time to help fill the bags.

How the scheme works

Buddy Bags are funded through fundraising, sponsorship and donations. Groups of items can either be donated or sponsored. Individual volunteers, or companies looking for community projects to support, can meet at venues throughout UK every fortnight to help fill the backpacks.

We are committed to 100% of the monies raised going into the supply of Buddy Bags!

Most of our services are supplied by companies who have chosen us as their Charity of the Year and donate some of their services free of charge.

Despite COVID-19, 2020 has been an amazing year for the Buddy Bag Foundation.

We have delivered 5,953 Buddy Bags this year. Making a difference to 5,953 children. We are proud to have delivered a total of 31,121 Buddy Bags, hosted 165 Buddy Bag Brigades and engaged with 3,130 volunteers in the period since formation to 31 December 2020.

I am both honoured and humbled to have received an OBE in the 2020 New Year’s honours list. My dream five years ago was to set up a charity that could and would make a real and meaningful difference to children in emergency care. With the assistance and support of all our volunteers we have realised this dream.

We have packed over thirty thousand Buddy Bags, far exceeding our initial target and look to the future with optimism at the challenges and opportunities that lie ahead.

Thank you to all our volunteers and supporters, together we have achieved and are continuing to achieve something truly special.

Karen Williams

Karen Williams Founder and Trustee

Buddy Bag Foundation Annual Report 2020

Objectives and Activities

The objective of the charity is:

The relief of material hardship and need, for the public benefit, in England and Wales, by providing personal items of basic necessity and comfort to children and young people in emergency situations, through charities or other organisations, working with children and young people when they arrive in crisis accommodation without vital personal essentials.

Our guiding principles

Purpose:

We exist to make a difference to children in emergency care.

Mission:

To provide a bag of essential items to children in emergency care to help restore a sense of comfort and love.

Philosophy:

100% of donations go directly to the children.
To support local communities all over the UK.
To provide opportunities for individuals and organisations to give back.

Buddy Bag Foundation Annual Report 2020

Values:

How we behave as an organisation to deliver on our purpose and mission:

AMBITION INTEGRITY EMPATHY DETERMINATION ACCOUNTABILITY PASSION LEADERSHIP HONESTY COLLABORATION GENEROSITY RESPECT AUTHENTICITY

What is a Buddy Bag?

A Buddy Bag is a backpack that contains all the essential items a child needs. They include toiletries, pyjamas and underwear. They also include comfort items such as a book and a teddy bear. A Buddy Bag is something a child can call their own, no matter where they go.

All the items going into the Buddy Bags are new. This has several benefits ranging from helping the children receiving the bags to bolster their self-esteem, through to simplifying the process involved in hosting a Buddy Bag Brigade.

Each Buddy Bag costs the charity about £25.

How do Buddy Bags get to the children?

Buddy Bags are donated to women’s refuges all over Great Britain. Each refuge receives 30 Buddy Bags at a time.

The Buddy Bags are tailored to suit babies, children and young people, according to the needs of different age groups and genders.

Buddy Bag Foundation Annual Report 2020

What is a Buddy Bag Brigade?

A Buddy Bag Brigade is an event which brings around 20 volunteers together for two hours, working together to pack 180 Buddy Bags. The packed bags are delivered to six women’s refuges. Where possible, Buddy Bags are distributed locally, but the charity works to support women’s refuges all over Great Britain.

These brigades are a great team building opportunity. Many organisations engage in fundraising activities and then host their own Buddy Bag Brigades.

The charity is committed to positively influencing the local communities in which we live and work.

Buddy Bag Foundation Annual Report 2020

Corporate Social Responsibility

The Charity engages with employers, demonstrating how partnering with the Buddy Bag Foundation can help impact Corporate Social Responsibility policies, and positively support their local community.

With the opportunity to fundraise, whether through bake sales or bike rides, and volunteer with a Buddy Bag Brigade, the Buddy Bag Foundation provides great team building opportunities whilst making a difference to children in crisis.

Public benefit

The trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit during the performance of their duties.

Buddy Bag Foundation Annual Report 2020

Achievements and Performance

During the year ended 31 December 2020:

----- Start of picture text -----
Since formation to
2020 2019 31 Dec 2020
Buddy Bags distributed 5,953 8,310 31,121
Number of Buddy Bag Brigades 29 47 165
Number of volunteers engaged 430 940 3,130
Women's refuges supplied 198 277 396
----- End of picture text -----

Regular Buddy Bag Brigades have been held at Lichfield, Tamworth and Sutton Coldfield.

Thanks to the work of volunteer Ambassadors and to groups and employers, in 2020 Buddy Bag Brigades have been held in Birmingham, the West Midlands, Lancashire, York, Nantwich, London and Essex. Sadly due to COVID-19 we have been unable to hold as many BBB nationwide.

In 2020, when COVID-19 considerations appeared, our most important priority became ensuring the safety of our volunteers and the safety of the children we serve. We immediately postponed or cancelled all our

signature Buddy Bag Brigades and other face-to-face events. We held an emergency meeting on 3rd April 2020 to discuss how we could best meet the needs of our end users; all families being in lockdown.

With domestic violence rising daily during lockdown our Buddy Bags have never been needed more.

We contacted the women’s refuge centres and asked “How could we help?”. The feedback we had was a request to supply craft items. Activities to keep the children busy while in refuge during lockdown.

Buddy Bag Foundation Annual Report 2020

We immediately started to contact women’s refuge centres and began to send out craft boxes. To date we have supplied craft items to over 800 children.

On 30th April 2020 we held our first COVID-19 Buddy Bag Brigade, where Karen Williams OBE and Chris Williams pioneered how to pack 180 Buddy Bags whilst following government guidance. During May 2020 – Dec 2020 every fortnight we brought together

a small team of 8 volunteers who followed current government guidance and packed 180 Buddy Bags. This has only been possible due to the generosity of Ian Hazel Funerals, Sutton Coldfield, who allowed us to use their function room.

Buddy Bag Foundation Annual Report 2020

Fundraising and donations

Individuals, groups and companies are the lifeline of the Buddy Bag Foundation. Together they have helped to achieve total income of £201,745 (2019: £238,003).

The Charity is active in bidding for funding and during this period has been successful in securing funding from different sources including supermarkets and various groups.

Volunteers

We have engaged with over 3,130 Volunteers since formation to 31 December 2020. Our volunteers support us in lots of different ways; at our Buddy Bag Brigades by donating two hours of their time; at our fundraising events and we have lots of volunteers that knit cuddly toys for our Buddy Bags.

We thank you.

When COVID-19 measures first appeared in 2020, we postponed or cancelled all our face-to-face events. Our teams of ambassadors and fundraisers and supporters have become very inventive by switching to online fundraising activities instead.

Interested in joining our Team? Volunteer Now! https://buddybagfoundation.co.uk/volunteer/

Our campaign to receive hand-knitted toys has mushroomed in popularity during the 2020 lockdown.

Patrons and Supporter

Our Patrons are Olivia Hill and Molly Windsor and Supporter Dr. Hilary Jones. In 2020 Jess Phillips MP has also become a Patron.

Ambassadors

We now have a number of Ambassadors nationwide (for example: York, Essex, Bury, Cardiff, Croydon and Cornwall) who are flying the flag of BBF.

With a supportive team of volunteers their goal is to raise £4,500 in their community to host their own Buddy Bag Brigade in their area. We will continue to recruit more Ambassadors.

Buddy Bag Foundation Annual Report 2020

BBF Awards

Due to COVID-19 we were unable to host our Live BBF Annual Awards.

The 2020 Awards were held on a smaller scale at the BBB at Ian Hazel in September with a small group to celebrate our Volunteers, Ambassadors and Supporters.

The winners and runners up:

2020 AWARDS Winners Volunteer of the Year Rachel Boardman Ambassador John Wilson Going the Extra Mile Charlotte Shutt Top Fundraiser Gowling CSR Ian Hazel Funeral Services Making a difference Award Linda Aithchison

Runner up Barrie Davies Sylvia Kerris Angela Gakis / Pam Beale St James Place Sydney Mitchell BNI Premier

Buddy Bag Foundation Annual Report 2020

Fundraising events

We would like to thank all our supporters for their support during COVID-19. Sadly many events did not go ahead due to restrictions.

We had a virtual Fashion Show and Quiz Nights.

Here is our simple A-Z list of fundraising ideas https://buddybagfoundation.co.uk/fundraise/

Awards received

31st December 2020 – Karen Williams, Founder, was awarded an OBE for her Services to Domestic Violence.

Buddy Bag Foundation Annual Report 2020

Partnering with Buddy Bag Foundation

Corporate Social Responsibility, or CSR, centres around embracing and giving back to your local community. Companies throughout the UK are reaping the benefits of making a difference and engaging with their local causes, plus raising their profile whilst doing so.

So, why should you get involved with the Buddy Bag Foundation?

1. You can make a positive impact in YOUR area

100% of money raised goes directly back into local communities.
You can join us for one of our upcoming Buddy Bag Brigades

5. Enhances client relationships

Just like your employees, giving back to your local community shows you in an extremely positive light to your client base.
Visit our Postcard gallery to see why our Buddy Bags are loved so much!

6. Helps to build your team, boosting selfimprovement for all

  - Playing a vital part in our bag pack events helps communication, compassion and self fulfilment for the whole team.

  - Our Buddy Bag Brigade events welcome all ages and abilities, showing how working together can make such a difference!

2. Creates fantastic exposure for your brand

What better way to strengthen your brand by associating with a worthwhile cause?
We have the incredible support of our star Patrons

3. Strengthens relationships with your customers

By supporting your local community, this will have a huge positive impact on your customer relationships, showing them you care.

Our current partners include: Vodaphone, Utility Warehouse, Four Oaks Financial Services, Sydney Mitchell, Gateley, National Express.

For further detail on how you can be part of our CSR Team Building initiative https://buddybagfoundation.co.uk/csr/

Our social presence is felt within the community and online via our social media channels Facebook, Twitter and Instagram

4. Encourages employee engagement and attracts potential employees

In helping local causes, it will make your company desirable to potential employees and your current employees will be proud to be giving something back.
You can view case studies from the
companies we have worked with through our
Corporate Partnerships here

Buddy Bag Foundation Annual Report 2020

Corporate Suppliers

Thank You to our Corporate Supporters of donations that help reduce the cost of our Buddy Bags. https://buddybagfoundation.co.uk/supporters/

Buddy Bag Foundation Annual Report 2020

Buddy Bag Foundation Angels

It is thanks to the benevolence and generosity of our Angels, whose financial assistance and support ensures the long term sustainability and continuation of the Buddy Bag Foundation.

They do this by providing support to fully develop processes and systems which not only increase reliability and growth but ensure the foundation’s long term future.

https://buddybagfoundation.co.uk/our-angels/

Buddy Bag Foundation Annual Report 2020

Buddy Bag Foundation Challenge Box

A fun, team-building activity helping local causes. Employees will be proud to be giving something back. Playing a vital part in the challenge helps communication, compassion and self-fulfilment for the whole team. Welcoming all ages and abilities, showing how working together can make a real difference.

Each individual has an opportunity of donating their time and collecting approx. 6-8 items (approx. £8-£10) for a Buddy Bag.

Once items have been collected, the team will be bought together to pack 30 Buddy Bags and deliver/courier to a womens refuge centre.

The BBF Challenge Box was launched in Nov 2020 to continue providing Buddy Bags despite lockdown.

BBF Challenge Boxes were sent out to 23 teams of volunteers, who produced 733 Buddy Bags. https://buddybagfoundation.co.uk/wp-content/uploads/2021/03/BBF-Challenge-Box-Factsheet-2021.pdf

Buddy Bag Foundation Annual Report 2020

Testimonials

We continue to receive “Thank You” cards from the children who receive our Buddy Bags. “What I love about my Buddy Bag is... ”

Buddy Bag Foundation Annual Report 2020 he age groups are perfect! The children have been really surprised at>out getting this gift when they come into refuge and it has made a real difference to how they have settled in. Thank you so much." Fv trl .oa r>a I,KE arli "o qnd l tsJafLI 20

Buddy Bag Foundation Annual Report 2020

Financial Review

Donations received

----- Start of picture text -----
£36,398
£65,688
£40,575
£3,979
£47,856
----- End of picture text -----

The economic consequences of COVID-19 have adversely affected many people. Our income has also fallen this year.

Income from donations and legacies reduced by £28,707 (13%) from £223,203 in 2019 to £194,496 in 2020.

Cash donations of £146,640 (2019: £192,604) were received from individuals 25%, companies 45%, groups 28%, and Gift Aid claimable on donations 2.7%. As a consequence of COVID-19 we did not receive any donations at live events (2019: £7,902).

Donations received included:

Donations received included:
Charity of the year	Gowling WLG	£21,478
	Gateley PLC	£5,779
	National Express	£2,990
Supermarket charity token drops	Co-Op	£5,763
	Tesco	£5,332
Groups	Rotary	£14,815
	Freemasons	£11,302
	St James’s Place Charitable	£5,000
	Foundation

Many of the donations listed above are as a result of the work done by our ambassadors. Additional donations and fundraising by ambassadors includes:

Ambassador	Some of their fundraising
Heather Gordon	AFG Law & WHN Solicitors	£3,797
Angela Gakis	St James’s Place Charitable	£2,540
	Foundation
Karen Morgan	Maximus Foundation	£2,500
John Wilson	On top of Rotary groups above,	£1,945
	other fundraising

These amazing increases reflect the consistent effort made by the ambassadors, supporters and trustees.

Buddy Bag Foundation Annual Report 2020

Donated goods, professional services and donated facilities

The Charity is very grateful for the generous donations of goods, professional services and facilities it has received.

The COVID-19 lockdowns have led to more volunteers knitting toys and sewing toiletries bags and pencil cases. This year donations of goods, services and facilities totalled £47,856 (2019: £30,559), an increase of £17,257 (56%).

Non-cash donations received this year include:

Pack a Buddy Bag challenges, where volunteers provided the items that go in to the 733	£11,145
bags
3,240 knitted toys	£11,080
Other goods received for Buddy Bags	£8,539
Deliveries to refuges	£3,513
Storage facilities	£2,880
Prizes for winners of awards	£1,320
Venues for Buddy Bag Brigades	£910

We thank the hundreds of volunteers who have each donated a few hours of their time to support the Buddy Bag Brigades, and the many volunteers who generously hand knit so many cuddly toys.

We are grateful to all the organisations and individuals who generously sponsored and donated their professional services and venues.

Together, our work becomes possible.

As stated in the accounting policy note 1, donated goods, donated professional services and donated facilities are recognised as income in the Consolidated Statement of Financial Activities. The general volunteer time of the volunteers attending Buddy Bag Brigade events and other events is not recognised.

Other trading activities

Other trading activities comprise income from online fundraising events, workshop events, bids, compensation received and sales of toys.

Income from these sources has fallen by £8,202 to £6,558 (2019: £14,760) as a consequence of the impact of COVID-19 on live events.

Fundraising events and sales of workshops totalled £2,621 (2019: £10,600) a reduction of £7,979.

Following the receipt of the first own-brand Buddy Bears in June 2019, these are being sold on the website and generated sales income of £736 (2019: £905).

Buddy Bag Foundation Annual Report 2020

Expenditure

Expenditure on raising funds totalled £13,417 (2019: £11,846). Unrestricted expenditure of £1,958 consisted of processing charges on income received £568; expenses on fundraising events £596; London Marathon entry fee £230; Just Giving membership fee £216 and the cost of the Buddy Bears sold for fundraising £347. Restricted fund expenditure on fundraising of £11,459 mainly consisted of website and promotional expenses £5,400; donated services on website and promotion £4,344 and donated goods, services and facilities for fundraising activities and events £1,320.

Direct costs are those costs incurred in creating the Buddy Bags and the craft boxes and in supplying them to the children.

Buddy Bag Foundation Annual Report 2020

Buddy Bag Brigades are the events at which Buddy Bags are crafted. The 5,953 Buddy Bags this year (2019: 8,310 Buddy Bags) and the craft boxes cost £122,468 (2019: £158,505) to produce, a decrease of £36,037 (23%).

Karen Williams OBE has been successful in sourcing the materials purchased for Buddy Bags at reduced cost. This is a continuous process to ensure reliability of deliveries and consistent quality of the items whilst ensuring value for money.

Support costs totalled £10,807 (2019: £5,358) of which £4,685 were covered by restricted funds. The expenditure from unrestricted funds of £6,122 mainly comprised administrative services £2,444, donated storage costs for the materials before they are used in Buddy Bag Brigades of £2,880 and insurance £763. Expenditure from restricted funds comprised donated services and venues for administration £2,913 and other administrative support costs £1,772.

Restricted funds and angels

Live Love Laugh Limited generously made donations to the Charity which are specifically designated to cover the administration costs. In 2019 a new programme of Angels was successfully launched. The Angels make their donations specifically as restricted funds to cover the administration costs. This resulted in cash donations of £4,900 (2019: £21,963) and donated goods, services and facilities of £8,077 (2019: £4,342).

Cash donations by Angels in 2020 include Sydney Mitchell £1,200, Centre of Excellence £2,000 and the admin fees received from the various Pack a Buddy Bag Challenge organisers £1,700.

Buddy Bear toys

Prior to COVID-19, most of the first batch of own-brand Buddy Bear cuddly toys were being used very rapidly at Buddy Bag Brigades and a second batch of bears was ordered in November 2019 for delivery in May 2020.

As a consequence of COVID-19, when we resumed a smaller frequency of Buddy Bag Brigades, we prioritised using the 3,240 knitted toys received ahead of the own-brand Buddy Bears. This leads to much larger stock-holding of Buddy Bears than we had expected.

At the year end: Stock of Buddy Bears £16,897 (2019: £7,151) Prepaid expenses of £70 (2019: £17,033) include prepaid Buddy Bears not yet received £nil (2019: £16,269) Trade creditors of £2,225 (2019: £8,910) in 2019 included the 50% payable on delivery of Buddy Bears 2019: £8,135

Financial position

The Trustees are very satisfied with the financial position as at 31 December 2020. The charity had £183,139 at the bank (2019: £129,167).

The Charity aims to hold unrestricted cash reserves sufficient to fund a minimum of three months of Buddy Bag Brigades. This is calculated as if the charity had to buy all facilities, goods and services at market values. This policy is regularly reviewed by the Trustees. At 31 December 2020, the unrestricted cash at bank was well in excess of this minimum.

Buddy Bag Foundation Annual Report 2020

Financial prospects

When the 2020 COVID-19 pandemic arrived, the charity was in an excellent financial situation; with sufficient cash to finance the supply of 5,920 Buddy Bags.

In common with many other charities, income from donations and fundraising has fallen significantly since March 2020 and appears to have currently stabilised, at a lower level than before.

Because of the security the cash reserves give, we plan to continue to increase the quantity of packing Buddy Bags towards our 2019 levels of between 720 and 900 per month for the rest of 2021.

Buddy Bag Foundation Annual Report 2020

Structure, Governance and Management

Governing document

The Buddy Bag Foundation is a Charitable Incorporated Organisation governed by its Constitution amended on 3 March 2018. It is registered with the Charity Commission in England and Wales, registered number 1164916.

Appointment of trustees

Trustees are appointed for a term of one year by a resolution passed at a properly convened meeting of the Charity trustees.

In selecting individuals for appointment as a Charity trustee, the Charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

Trustee induction and training

New trustees receive a copy of the current version of the constitution and the latest Trustees’ Annual Report and Unaudited Financial Statements.

The CEO gives individual induction to new trustees, informing them about the work of the Foundation, the expectations of the board and the decision-making processes.

Trustees and advisory board members are expected to provide evidence of relevant GDPR training within half a year of joining the board.

Trustees and advisory board members provide evidence of their DBS certificates every few years.

Organisation

The Constitution provides for a maximum number of 12 trustees serving on the board of trustees, which administers the Charity. The board of trustees meets between four and six times per year. From its members, the board of trustees nominates a Chairman, a Chief Executive and a Treasurer, who manage the day-to-day operations of the Charity.

The board of trustees is supported by an advisory board, who provide additional advice and expertise. They make non-binding recommendations to the board of trustees. Members of the advisory board are appointed by the board of trustees, who also have the authority, in its sole and absolute discretion, to remove any member of the advisory board at any time for any reason.

The Foundation does not have any employees and it does not provide any remuneration to any of its trustees or advisory board members.

Buddy Bag Foundation Annual Report 2020

Subsidiary company

Under the law of England and Wales, charities may engage in some types of trading, subject to restrictions.

To enable additional fundraising activities, (for example, running fundraising balls and providing events on a commercial basis to businesses), on 8 June 2018 the Trustees incorporated The Buddy Bag Ltd as a wholly owned subsidiary company limited by shares incorporated in England and Wales.

Related parties

Live Love Laugh Limited generously makes donations to the Charity which are specifically designated to cover the administration costs. Live Love Laugh Limited is controlled by Karen Williams OBE (Trustee) and Chris Williams (Advisory Board Member).

Karen Williams OBE (Trustee) and Chris Williams (Advisory Board Member) are the parents of Harry Williams (Trustee). The Charity’s internal processes and procedures ensure that duties are segregated appropriately to trustees outside the Williams family.

Buddy Bag Foundation Annual Report 2020

Reference and Administrative Details

Charity registered number: 1164916

Registered address: Unit 28 Maybrook Road, Maybrook Business Park, Minworth, Sutton Coldfield B76 1AL

Trustees

The trustees serving during the year ended 31 December 2020 and since the year end were as follows:

Date appointed/resigned as trustee

Chairman H E Williams CEO K S Williams OBE Treasurer N S Wallis Trustees A Henry B L Mabberley Resigned 9 April 2020 D M Whitbrook D M Fielding P Tranter Appointed 1 January 2020 J Brierley-Masheter Appointed 1 November 2020

Advisory board

The advisory board members serving during the year ended 31 December 2019 and since the year end were as follows:

Date appointed to Advisory Board Advisory Board C M Williams I G Goodwin Appointed 9 March 2021

By order of the board of trustees on 30 September 2021. And signed on its behalf by:

H E Williams (Chairman)

Buddy Bag Foundation Annual Report 2020

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE BUDDY BAG FOUNDATION

I report on the accounts for the period 01 January 2020 to 31 December 2020 set out on the following pages.

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 period (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.

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
to state whether particular matters have come to my attention.

Basis of the independent examiner’s report

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 statements below.

Independent examiner’s statement

In connection with my examination, no matter has 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 which accord with the accounting records and to 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.

Dr Kamran Shaikh

Morgan Reach Chartered Certified Accountants Morgan Reach House 136 Hagley Road Birmingham West Midlands B16 9NX

Date: 30 September 2021

Buddy Bag Foundation Annual Report 2020

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note INCOME Donations and legacies 2 Other trading activities 3 Investment income Total income EXPENDITURE Raising funds 4 Charitable activities Direct costs 5 Support costs 5 Total expenditure NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forwards Total funds carried forwards	Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 £ £ £ £ 181,019 13,477 194,496 223,203 6,048 511 6,559 14,760 690 0 690 40
	187,757 13,988 201,745 238,003
	1,958 11,459 13,417 11,846 122,468 0 122,468 158,505 6,122 4,685 10,807 5,358
	130,548 16,144 146,692 175,709
	57,209 (2,156) 55,053 62,294 129,648 14,310 143,958 81,664
	186,857 12,154 199,011 143,958

The notes form part of these financial statements

Buddy Bag Foundation Annual Report 2020

BALANCE SHEETS AS AT 31 DECEMBER 2020

Group 2020 2019 £ £ 0 0	Group 2020 2019 £ £ 0 0	Charity 2020 2019 £ £ 100 100	Charity 2020 2019 £ £ 100 100
0 16,997 2,000 183,139	0 7,251 19,930 129,167	100 16,997 2,000 183,039	100 7,251 20,085 129,012
202,136 (3,125)	156,348 (12,390)	202,036 (3,125)	156,348 (12,490)
199,011	143,958	198,911	143,858
199,011	143,958	199,011	143,958
12,154 186,857	14,310 129,648	12,153 186,858	14,310 129,648
199,011	143,958	199,011	143,958

The financial statements were approved by the Board of Trustees on 30 September 2021 and were signed on its behalf by:

H E Williams (Chairman)

The notes form part of these financial statements

Buddy Bag Foundation Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

a) Basis of preparing the financial statements

The financial statements have been prepared in accordance with 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 (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK (FRS 102) (March 2018) and the Charities Act 2011.

The Buddy Bag Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Group financial statements

These financial statements consolidate the results of the charity and its wholly-owned subsidiary The Buddy Bag Ltd on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes to the charity’s balance sheet.

c) Going concern

The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. The consequences of the COVID-19 pandemic on the charity are regularly reviewed.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Income

Donated goods, donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the volunteers attending Buddy Bag Brigade events and other events is not recognised. Refer to the trustees’ annual report for more information about their contribution.

On receipt, donated goods, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Buddy Bag Foundation Annual Report 2020

f) Investments

Investment in the subsidiary company is valued at cost less provision for impairment.

g) Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

h) Taxation

The charity is exempt from tax on its charitable activities.

i) Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Buddy Bag Foundation Annual Report 2020

2 Income from donations and legacies

Donations from individuals Donations from companies Donations from groups Donations at events Gift Aid Donated goods, services and facilities	Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 £ £ £ £ 36,398 0 36,398 53,210 60,788 4,900 65,688 103,224 40,575 0 40,575 21,003 0 0 0 7,902 3,979 0 3,979 7,265 39,279 8,577 47,856 30,599
	181,019 13,477 194,496 223,203

3 Other trading activities

Bids Sales of Buddy Bear toys Compensation received Fundraising events Sales of workshops and team building events	Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 £ £ £ £ 3,000 0 3,000 3,000 736 0 736 905 202 0 202 255 575 511 1,086 5,485 1,535 0 1,535 5,115
	6,048 511 6,558 14,760

Buddy Bag Foundation Annual Report 2020

4 Raising funds expenditure

Processing charges on income received Just Giving membership fee London Marathon entry fee Cost of Buddy Bear toys for fundraising Trainers and facilitators for events Fundraising event expenses Donated goods, services and facilities for fundraising activities and events Website and promotional expenses Donated website and promotional expenses Other expenses	Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 £ £ £ £ 569 0 569 872 216 0 216 216 230 0 230 0 347 0 347 342 0 0 0 615 596 307 903 1,561 0 1,320 1,320 0 0 5,400 5,400 5,421 0 4,344 4,344 2,700 0 88 88 119
	1,958 11,459 13,417 11,846

5 Cost of charitable activities

DIRECT COSTS Materials purchased for Buddy Bags Materials purchased for craft boxes Donated materials for Buddy Bags Delivery charges Donated delivery charges Other donated services and facilities for Buddy Bag Brigades Other direct costs Cost of Buddy Bag Brigades	Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 £ £ £ £ 75,465 0 75,465 123,884 4,024 0 4,024 0 31,676 0 31,676 17,777 4,314 0 4,314 4,475 3,513 0 3,513 7,500 910 0 910 980 2,566 0 2,566 3,889
	122,468 0 122,468 158,505

Buddy Bag Foundation Annual Report 2020

SUPPORT COSTS Storage costs Storage facilities donated Administrative services Insurance donated Insurance Donated services received and venues for trustee meetings Other support costs Support costs Total charitable activities expenditure	Unrestricted Funds Restricted Funds Total Funds 2020 Total Funds 2019 £ £ £ £ 35 0 35 290 2,880 0 2,880 0 2,444 0 2,444 1,843 300 0 300 409 463 0 463 159 0 2,913 2,913 1,163 0 1,772 1,772 1,494
	6,122 4,685 10,807 5,358

	128,590 4,685 133,275 163,863

6 Trustees’ remuneration and benefits

The charity Trustees were not paid nor received any other benefits from employment with the charity in the year (2019: £nil).

Trustees’ expenses

As part of fundraising activities, the charity and its subsidiary company have sold team-building workshops to businesses. Trainers and facilitators have been engaged to deliver these fundraising activities, which included 2 of the Trustees.

Trustee’s expenses represent the cost of delivering one of these workshops, including travel and subsistence costs totalling £nil (2019: £365) incurred by 1 Trustee (2019: 1).

Buddy Bag Foundation Annual Report 2020

7 Investment in subsidiary

The charity holds 100 shares of £1 each in its wholly owned trading subsidiary company The Buddy Bag Ltd which is incorporated in England and Wales. These shares are allotted, called up and fully paid. The company is going to be used for non-primary trading activities. Available profits are gift aided to the charity under a deed of covenant. A summary of the results of the subsidiary is shown below:

Net operating income Other income Net proft Amount gift aided to the charity under deed of covenant Retained in subsidiary Current assets Current liabilities Total net assets Aggregate share capital and reserves he assets and liabilities of the subsidiary were:	2020 2019 £ £ 1,293 0 0 155
	1,293 155 (1,293) (155)
	0 0
	31 Dec. 2020 31 Dec. 2019 £ £ 100 255 0 (155)
	100 100
	100 100

The assets and liabilities of the subsidiary were:

Buddy Bag Foundation Annual Report 2020

8 Parent charity

The parent charity’s gross income and results for the year are disclosed as follows:

	2020	2019
	£	£
Gross income	199,509	238,003
Net income	55,053	62,294

9 Stock

0 Debtors Stock of Buddy Bears Other stock Income receivable donations and Gift Aid Prepaid expenses Receivable from subsidiary company	Group Charity 2020 2019 2020 2019 £ £ £ £ 16,897 7,151 16,897 7,151 100 100 100 100
	16,997 7,251 16,997 7,251
	Group Charity 2020 2019 2020 2019 £ £ £ £ 1,930 2,897 1,930 2,897 70 17,033 70 17,033 0 0 0 155
	2,000 19,930 2,000 20,085

10 Debtors

Buddy Bag Foundation Annual Report 2020

11 Creditors: Amounts falling due within one year

Trade creditors Accruals and deferred income Other creditors Payable to subsidiary company	Group Charity 2020 2019 2020 2019 £ £ £ £ 2,225 8,910 2,225 8,910 900 250 900 250 0 3,230 0 3,230 0 0 0 100
	3,125 12,390 3,125 12,490

12 Movement in funds

Current year

Restricted Funds Unrestricted Funds Total Funds Restricted Funds Unrestricted Funds Total Funds revious year	At 1 January 2020 Income & Gains Expenditure & Losses At 31 December 2020 £ £ £ £ 14,310 13,988 (16,144) 12,154 129,648 187,757 (130,548) 186,857
	143,958 201,745 (146,692) 199,011
	At 1 January 2019 Income & Gains Expenditure & Losses At 31 December 2019 £ £ £ £ 313 27,070 (13,073) 14,310 81,351 210,933 (162,636) 129,648
	81,664 238,003 (175,709) 143,958

Previous year

Purpose of restricted funds

Restricted funds are donations and donated goods, services and facilities which are specifically designated to cover the administration costs.

Buddy Bag Foundation Annual Report 2020

13 Related party disclosures

Live Love Laugh Limited generously make donations to the Charity which are specifically designated to cover the administration costs. Live Love Laugh Limited is controlled by Karen Williams OBE (Trustee) and Chris Williams (Advisory Board Member).