Report of the Trustees and Unaudited Financial Statements for the year ended 31 December 2021 for The Buddy Bag Foundation (A Charitable Incorporated Organisation) REGISTERED CHARITY NUMBER: 1164916 




## **The Buddy Bag Foundation** 

## **CONTENTS** 

||Page|
|---|---|
|Report of the Trustees|2|
|● Objectives and Activities|5|
|● Achievements and Performance|8|
|● Financial Review|19|
|● Structure,Governance and Management|24|
|● Reference and Administrative Details|26|
|Independent Examiner's Report|27|
|Consolidated Statement of Financial Activities|28|
|Balance Sheets|29|
|Notes to the Financial Statements|30 to 37|



1 




## **The Buddy Bag Foundation** 

## **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 2021. 

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. 

2 




## **The Buddy Bag Foundation** 

## **Implications of COVID-19 on the charity** 


This report covers the year ended 31 December 2021, 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’ Re port we have described what we have been doing since COVID-19 measures were introduced in the UK as well as our future plans. 

## **Founder’s Report** 

My name is Karen Williams OBE. 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. We continue to deliver Buddy Bags and 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. 

3 




## **The Buddy Bag Foundation** 

## 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 back packs. 

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, 2021 has been an amazing year for the Buddy Bag Foundation. 

We have delivered 9,297 (5,953 2020) Buddy Bags this year. Making a difference to 9,297 children. We are proud to have delivered a total of 40,418 Buddy Bags, hosted 213 Buddy Bag Brigades and engaged with 3,685 volunteers in the period since formation to 31 December 2021. 

My dream eight 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 forty thousand Buddy Bags, far exceeding our initial target and look to the future with optimism at the challenges and opportunities that lie ahead. 

A huge Thank You to The Howell Group for donating and sponsoring our BBF HQ which has genuinely made a huge difference in the number of bags we can deliver, the service we can provide and the hub for our volunteers to meet. 

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

Karen Williams OBE Co- Founder and Trustee 


4 




## **The Buddy Bag Foundation** 

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. 



5 




## **The Buddy Bag Foundation** 

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. 



6 




## **The Buddy Bag Foundation** 

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 Chari ty Commission’s guidance on public benefit during the performance of their duties. 

7 




## **The Buddy Bag Foundation** 

## **Achievements and Performance** 

During the year ended 31 December 2021: 

||2021|2020|Since formation<br>to 31 Dec 2021|
|---|---|---|---|
|**Buddy Bags distributed**|**9,297**|**5,963**|**40,418**|
|Number of Buddy Bag Brigades|48|30|213|
|Number of volunteers engaged|545|430|3,685|
|Women'srefuges supplied|310|198|396|




Regularly 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 2021 Buddy Bag Brigades have been held in Birmingham, the West Midlands, York, Nantwich, , North Wales, Cardiff, London and Essex. Sadly due to COVID-19 we have been unable to hold as many BBB nationwide. 

8 




## **The Buddy Bag Foundation** 

With Domestic Violence rising daily during lockdown our Buddy Bags have never been needed more. 


## Fundraising and donations 

Individuals, groups and companies are the lifeline of The Buddy Bag Foundation. Together they have helped to achieve total income of £128,954 (2020: £142,661). 

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. 

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. 

Our campaign to receive hand knitted toys has mushroomed in popularity during the 2020/21 lockdown. 

9 




## **The Buddy Bag Foundation** 

## 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, North Wales) 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. 

## Volunteers 

We have engaged with over 3,685 Volunteers since formation to 31 December 2021. 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. 


If you are interested in joining our Team – Volunteer Now! https://buddybagfoundation.co.uk/volunteer/ 

10 




## **The Buddy Bag Foundation** 

## BBF Awards 


BBF Annual Awards held at Harvest Fields Sutton Coldfield in Sept 21 to celebrate our Volunteers, Ambassadors and Supporters. 

The winners and runners up: 

## Awards 2021 

Outstanding Achievement Awards to Pam Beale and Ian Hazel 

||**Award**|**Winner**|**Runner-Up**|
|---|---|---|---|
||Volunteer of the Year|Julie Thorn(Colton WI)|Val Day|
||Ambassador|Sylvia Kerris(Covid Teddies)|Imogen Allen|
||Going the Extra Mile|Mark Tonks|Daniel and Sam|
||Top Fundraiser|Masons|Claire Aglen|
||CSR|Graham Johnson - Howell<br>Group|SydneyMitchell|
||Making a difference Award|Cal Brooks|Laura Brown|
|||||



11 




## **The Buddy Bag Foundation** 

## Fundraising events 

We would like to thank all our supporters for their support during COVID-19. We held a virtual raffle,  Fashion Show and Quiz Nights.  BCASS held a Ball with funds being donated to BBF. Together with lots of outdoor fundraising events such as walks, golf and hiking. 







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

## Awards received 

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

## 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? 


12 




## **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 

**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 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 

**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 self-improvement** for all 

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

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

Our current partners include: Utility Warehouse, Four Oaks Financial Services, Sydney Mitchell, Gateley, National Express, Gowling, Amazon, Jaguar Land Rover. 

For further detail on how you can be part of our CSR Team Building initiative 

https://buddybagfoundation.co.uk/csr/ 

13 




## **The Buddy Bag Foundation** 

Corporate Suppliers 

In May 21 The Howell Group donated BBF a HQ space to accommodate a Buddy Bag Packing section, Storage facilities and kitchen. All services included. 

This professional facility gave BBF the status of having a dedicated HQ as a registered office. It allows BBF to keep a stock of items in case of disrupted deliveries. Buddy Bags can also be kept in stock. Also providing a home for the dedicate team of volunteers. 

## Updated Refuge Database 

BBF can now take orders for Buddy Bags based on the needs of the Women’s Refuge and deliver accordingly. This has made a massive difference to the service BBF can now supply our end users. 

It has also meant that we are able to increase the number of items we purchase generating lower purchase prices. 

We are extremely grateful for the Howell Group for donating and sponsoring this space. 



14 




## **The Buddy Bag Foundation** 

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 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. 

By providing support to fully develop processes and systems which not only increase reliability and growth but ensure the foundations long term future 

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

15 




## **The Buddy Bag Foundation** 

Buddy Bag Foundation Challenge Box 



The BBF Challenge Box was launched in Nov 2020 to continue providing Buddy Bags. Ideally suited to groups or corporates as team building events. 

https://buddybag foundation.co.uk/wp-content/uploads/2021/03/BBF-Challenge-Box-Factsheet2021.pdf 

16 



**The Buddy Bag Foundation** 


## Testimonials 

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



17 



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18


## **The Buddy Bag Foundation** 

## **Financial Review** 

## Donations received 


**----- Start of picture text -----**<br>
Total Donations received 2021: £193,061<br>Donations from Individuals<br>Donations from Companies<br>59,837.21  64,759.03  Donations from Groups<br>Donations from Events<br>4,186.89<br>Donations from GiftAid<br>81.92  47,503.43<br>Donations from NonCsh<br>16,692.46<br>**----- End of picture text -----**<br>


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

Income from donations and legacies remain stable, reducing by £1,436 (1%) from £194,496 in 2020 to £193,061 in 2021. 

Cash donations of £133,223 (2020: £146,640) were received from individuals 49%, companies 36%, groups 13%, and Gift Aid claimable on donations 3.1%. As a consequence of COVID-19 we did not receive any donations at live events (2021: £0). 

|Donations received included:|||
|---|---|---|
|Charity of the year|Gowling WLG|£1,000|
||Payaro Limited|£1,875|
|Supermarket charity token drops|Co-Op|£7,340|
||Tesco|£2,215|
|Groups|Rotary|£4,900|
||B1G1|£10,292|



Many of the donations listed above are as a result of the work done by our ambassadors. 

Additional donations and fundraising by ambassadors include: **Ambassador Some of their fundraising** Claire Glen £5,000 

19 




## **The Buddy Bag Foundation** 

St James's Place Charitable Angela Gakis Foundation £4,500 Shawn Bailey £2,500 

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

## 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 £59,837 (2019: £47,856), an increase of £11,981 (25%). 

Non-cash donations received this year include: 

|Pack a Buddy Bag challenges, where volunteers provided the items that go in to the|£9,015|
|---|---|
|601 bags||
|6,741 knitted toys|£25,095|
|Other goods received for Buddy Bags|£10,347|
|Deliveries to refuges|£950|
|Storage facilities|£2,880|
|Venues for Buddy Bag Brigades|£700|
|Venue for BBF, Minworth|£10,000|



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. 

20 




## **The Buddy Bag Foundation** 

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 to £2,302 (2020: £6,558) as a consequence of the impact of COVID-19 on live events. 

Fundraising events and sales of workshops totalled £1,543 (2020: £2,621). 

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 £453 (2019: £736). 

## Expenditure 


Expenditure on raising funds totalled £12,654 (2020: £13,417). Unrestricted expenditure of £1,178 consisted of processing charges on income received £797,Just Giving membership fee £216 and cost of Buddy Bears toys for fundraising £165. Restricted fund expenditure on fundraising of £9,469 consisted of £3700 on website design and services and £5769 on Advertising & Promotion. 

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

21 




## **The Buddy Bag Foundation** 

## Cost of Buddy Bag Brigades 2021: £192,864 


**----- Start of picture text -----**<br>
Other direct costs £15,088<br>£2,566<br>Other donated services and facilities for Buddy Bag £700<br>Brigades £910<br>£950<br>Donated delivery charges<br>£3,513<br>£10,682<br>Delivery charges<br>£4,314<br>£41,624<br>Donated materials for Buddy Bags<br>£31,676<br>£21<br>Materials purchased for craft boxes<br>£4,024<br>£123,799<br>Materials purchased for Buddy Bags<br>£75,465<br>0 20,000 40,000 60,000 80,000 100,000 120,000 140,000<br>Total Funds 2021 Total Funds 2020<br>**----- End of picture text -----**<br>


Buddy Bag Brigades are the events at which Buddy Bags are crafted.  The 9,267 Buddy Bags this year (2020: 5,953 Buddy Bags) and the craft boxes cost £192,864 (2020: £122,468) to produce, an increase of £70,396 (57.5%). 

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 £9,529 (2020: £10,807) of which £3,439 were covered by restricted funds. The expenditure from unrestricted funds of £6,090 mainly comprised administrative services £1,686, donated storage costs for the materials before they are used in Buddy Bag Brigades of £2,880 and insurance £724. Expenditure from restricted funds comprised donated services and venues for administration £1,193 and other administrative support costs £2,246. 

## 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 £7,450 (2020: £4,900) and donated goods, services and facilities of £2,000 (2020: £8,077). 

Cash donations by Angels in 2021 include Sydney Mitchell £5,600. 

22 




## **The Buddy Bag Foundation** 

## 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, the prioritisation of using knitted toys received ahead of the own-brand Buddy Bears was continued. Leading to much larger stock-holding of Buddy Bears than we had expected. 

At the year end: Stock of Buddy Bears £11,576 (2020: £16,897) Prepaid expenses of £70 (2020: £70). Trade creditors of £1498 (2020: £2,225) 

## Financial position 

The Trustees are very satisfied with the financial position as at 31 December 2021. The charity had £159,682 at the bank (2020: £183,139). 

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 2021, the unrestricted cash at bank was well in excess of this minimum. 

## 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 9,267 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 2022. 

23 




## **The Buddy Bag Foundation** 

## **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. 

24 




## **The Buddy Bag Foundation** 

## 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. 

25 




## **The Buddy Bag Foundation** 

## **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 2021 and since the year end were as follows: 

|**Date appointed/resigned as trustee**<br>Chairman<br>H E Williams<br>CEO<br>K S Williams OBE<br>Treasurer<br>L L Lomax<br>Appointed 15/10/2021<br>Trustees<br>N Wallis<br>A Henry<br>Resigned 15/10/2021<br>D M Whitbrook<br>D M Fielding<br>P Tranter<br>J Brierley-Masheter<br>M Bhandi<br>Appointed 15/10/2021||
|---|---|



## Advisory board 

The advisory board members serving during the year ended 31 December 2021 and since the year end were as follows: 

|||**Date appointed/resigned as Advisory Board Member**|
|---|---|---|
|Advisory|C M Williams||
|Board|I G Goodwin|Appointed 9 March 2021|



30/10/22 

By order of the board of trustees on ……………… And signed on its behalf by: 

H E Williams (Chairman) 

26 




## **The Buddy Bag Foundation** 

## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF** 

## **THE BUDDY BAG FOUNDATION** 

## **I report on the accounts for the period 01 January 2021 to 31 December 2021 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: 24 October 2022 

27 




## **The Buddy Bag Foundation** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021** 

|Note<br>INCOME<br>Donations and legacies<br>2<br>Other trading activities<br>3<br>Investment income<br>Total income<br>EXPENDITURE<br>Raising funds<br>4<br>Charitable activities<br>Direct costs<br>5<br>Support costs<br>5<br>Total expenditure<br>NET INCOME/(EXPENDITURE)<br>RECONCILIATION OF FUNDS<br>Total funds brought forwards<br>Total funds carried forwards|Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total Funds<br>2021<br>Total Funds<br>2020<br>£<br>£<br>£<br>£<br>183,611<br>9,450<br>193,061<br>194,496<br>2,302<br>0<br>2,302<br>6,559<br>1,094<br>0<br>1,094<br>690|
|---|---|
||187,007<br>9,450<br>196,457<br>201,745|
||1,178<br>11,476<br>12,654<br>13,417<br>192,569<br>295<br>192,864<br>122,468<br>6,090<br>3,439<br>9,529<br>10,807|
||199,837<br>15,210<br>215,047<br>146,692|
||(12,830)<br>(5,760)<br>(18,590)<br>55,053<br>186,857<br>12,154<br>199,011<br>143,958|
||174,027<br>6,394<br>180,421<br>199,011|



The notes form part of these financial statements 

28 




## **The Buddy Bag Foundation** 

## **BALANCE SHEET AS AT 31 DECEMBER 2021** 

|Note<br>FIXED ASSETS<br>Investment<br>7<br>Total fixed assets<br>CURRENT ASSETS<br>Stock<br>9<br>Debtors<br>10<br>Cash at bank and in hand<br>Total current assets<br>Creditors falling due within one year<br>11<br>Net current assets<br>NET ASSETS<br>FUNDS OF THE CHARITY<br>Restricted income funds<br>12<br>Unrestricted funds<br>12<br>TOTAL CHARITY FUNDS|**Group**<br>**Charity**<br>2021<br>2020<br>2021<br>2020<br>£<br>£<br>£<br>£<br>100<br>0<br>100               100|
|---|---|
||100<br>0<br>100                100<br>11,679<br>16,997<br>11,679<br>16,997<br>12,798<br>2,000<br>12,798<br>2,000<br>159,682<br>183,139<br>159,429<br>183,039|
||184,159<br>202,136<br>183,906<br>202,036<br>(3,838)<br>(3,125)<br>(3,838)<br>(3,125)|
||180,321<br>199,011<br>180,068<br>198,911|
||180,421<br>199,011<br>180,168<br>199,011|
||6,394<br>12,154<br>6,688<br>12,153<br>174,027<br>186,857<br>173,421<br>186,858|
||180,421<br>199,011<br>180,109<br>199,011|



30/10/22 

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

H E Williams (Chairman) 

The notes form part of these financial statements 

29 




## **The Buddy Bag Foundation** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 31 DECEMBER 2021** 

## 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. 

30 




## **The Buddy Bag Foundation** 

## 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. 

- 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. 

31 




## **The Buddy Bag Foundation** 

## 2 Income from donations and legacies 

|Donations from individuals<br>Donations from companies<br>Donations from groups<br>Donations at events<br>Gift Aid<br>Donated goods, services and<br>facilities<br>Cash donations only|Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total<br>Funds<br>2021<br>Total<br>Funds<br>2020<br>2020<br>percent<br>of total<br>Change<br>Percent<br>change<br>£<br>£<br>£<br>£<br>%<br>£<br>%<br>64,759<br>0<br>64,759<br>36,398<br>48.6%<br>28,361<br>77.9%<br>40,053<br>7,450<br>47,503<br>65,688<br>35.7% (18,185)<br>27.7%<br>16,692<br>0<br>16,692<br>40,575<br>12.5% (23,883)<br>58.9%<br>82<br>0<br>82<br>0<br>0.1%<br>82       0.0%<br>4,187<br>0<br>4,187<br>3,979<br>3.1%<br>208<br>5.2%<br>57,837<br>2,000<br>59,837<br>47,856<br>11,981<br>25.0%|
|---|---|
||183,610<br>9,450  193,061  194,496  100.0%<br>(1,436)<br>0.7%|
||125,773<br>7,450  133,223  146,640<br>(13,417)|



## 3 Other trading activities 

|Bids<br>Sales of Buddy Bear toys<br>Compensation received<br>Fundraising events<br>Sales of workshops and team<br>building events|Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total<br>Funds<br>2021<br>Total<br>Funds<br>2020<br>2020<br>percent<br>of total<br>Change<br>Percent<br>change<br>£<br>£<br>£<br>£<br>%<br>£<br>%<br>0<br>0<br>0<br>3,000<br>0.0%<br>(3,000)<br>100.0%<br>453<br>0<br>453<br>736<br>19.7%<br>(283)<br>38.5%<br>306<br>0<br>306<br>202<br>13.3%<br>104<br>51.6%<br>1,543<br>0<br>1,543<br>1,086<br>67.0%<br>457<br>42.1%<br>0<br>0<br>0<br>1,535<br>0.0%<br>(1,535)<br>100.0%|
|---|---|
||2,302<br>0<br>2,302<br>6,558  100.0%<br>(4,256)<br>64.9%|



32 




## **The Buddy Bag Foundation** 

## 4 Raising funds expenditure 

|Processing charges on income<br>received<br>Just Giving membership fee<br>London Marathon entry fee<br>Cost of Buddy Bear toys for<br>fundraising<br>Trainers and facilitators for<br>events<br>Fundraising event expenses<br>Donated goods, services and<br>facilities for fundraising<br>activities and events<br>Website and promotional<br>expenses<br>Donated website and<br>promotional expenses<br>Other expenses|Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total<br>Funds<br>2021<br>Total<br>Funds<br>2020<br>2020<br>percent<br>of total<br>Change<br>Percent<br>change<br>£<br>£<br>£<br>£<br>%<br>£<br>%<br>797<br>0<br>797<br>569<br>6.3%<br>228<br>40.1%<br>216<br>0<br>216<br>216<br>1.7%<br>0<br>0.0%<br>0<br>0<br>0<br>230<br>0.0%<br>(230)<br>100.0%<br>165<br>0<br>165<br>347<br>1.3%<br>(182)<br>100.0%<br>0<br>0<br>0<br>0<br>0.0%<br>0       0.0%<br>0<br>624<br>624<br>903<br>4.9%<br>(279)<br>30.9%<br>0<br>0<br>0<br>1,320<br>0.0%<br>(1,320)<br>100.0%<br>0<br>9,469<br>9,469<br>5,400<br>74.8%<br>4,069<br>75.4%<br>0<br>1162<br>1162<br>4,344<br>9.2%<br>(3,182)<br>73.3%<br>0<br>221<br>221<br>88<br>1.7%<br>133<br>151.1%|
|---|---|
||1178<br>11,476  12,654  13,417  100.0%<br>(763)<br>5.7%|



5 Cost of charitable activities 

|DIRECT COSTS<br>Materials purchased for Buddy<br>Bags<br>Materials purchased for craft<br>boxes<br>Donated materials for Buddy<br>Bags<br>Delivery charges<br>Donated delivery charges<br>Other donated services and<br>facilities for Buddy Bag Brigades<br>Other direct costs<br>Cost of Buddy Bag Brigades|Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total<br>Funds<br>2021<br>Total<br>Funds<br>2020<br>2020<br>percent<br>of total<br>Change<br>Percent<br>change<br>£<br>£<br>£<br>£<br>%<br>£<br>%<br>123,799<br>0 123,799<br>75,465<br>61.2%<br>48,334<br>64.0%<br>21<br>0<br>21<br>4,024<br>0.0%<br>(4,003)<br>99.5%<br>41,624<br>0<br>41,624<br>31,676<br>20.6%<br>9,948<br>31.4%<br>10,682<br>0<br>10,682<br>4,314<br>5.3%<br>6,368<br>147.6%<br>950<br>0<br>950<br>3,513<br>0.5%<br>(2,563)<br>73.0%<br>700<br>0<br>700<br>910<br>0.3%<br>(210)<br>23.1%<br>14,793<br>295<br>15,088<br>2,566<br>7.5%<br>12,522<br>488.0%|
|---|---|
||192,569<br>295  192,864  122,468<br>95.3%<br>70,369<br>57.5%|



33 




## **The Buddy Bag Foundation** 

|SUPPORT COSTS<br>Storage costs<br>Storage facilities donated<br>Administrative services<br>Insurance donated<br>Insurance<br>Donated services received and<br>venues for trustee meetings<br>Other support costs<br>Support costs<br>Total charitable activities<br>expenditure|Unrestricted<br>Funds<br>Restricted<br>Funds<br>Total<br>Funds<br>2021<br>Total<br>Funds<br>2020<br>0.0%<br>Change<br>Percent<br>change<br>£<br>£<br>£<br>£<br>%<br>£<br>%<br>680<br>0<br>680<br>35<br>0.3%<br>645  1842.9%<br>2,880<br>0<br>2,880<br>2,880<br>1.4%<br>0<br>0.0%<br>1,686<br>0<br>1,686<br>2,444<br>0.8%<br>(758)<br>31.0%<br>350<br>0<br>350<br>300<br>0.2%<br>50<br>16.7%<br>374<br>0<br>374<br>463<br>0.2%<br>(89)<br>19.2%<br>0<br>1,193<br>1,193<br>2,913<br>0.6%<br>(1,720)<br>59.0%<br>120<br>2,246<br>2,366<br>1,772<br>1.2%<br>474<br>33.5%|
|---|---|
||6,090<br>3,439<br>9,529<br>10,807<br>4.7%<br>-1,278<br>-11.8%|
|||
||198,659<br>3,734  202,393  133,275  200.0%<br>69,118<br>51.9%|



## 6 Trustees’ remuneration and benefits 

The charity Trustees were not paid nor received any other benefits from employment with the charity in the year (2020: £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 ex penses represent the cost of delivering one of these workshops, including travel and subsistence costs totalling £nil (2020: £nil). 

34 




## **The Buddy Bag Foundation** 

## 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<br>Other income<br>Net profit<br>Amount gift aided to the charity under deed of covenant<br>Retained in subsidiary<br>The assets and liabilities of the subsidiary were:<br>Current assets<br>Current liabilities<br>Total net assets<br>Aggregate share capital and reserves|2021<br>2020<br>£<br>£<br>312<br>1,293<br>0<br>0|
|---|---|
||312<br>1,293<br> (312)<br> (1,293)|
||0<br>0|
||31 Dec<br>2021<br>31 Dec<br>2020<br>£<br>£<br>253<br>100<br>(153)<br>0|
||100<br>100|
||100<br>100|



## 8 Parent charity 

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

|Gross income<br>Net income|2021<br>2,020<br>£<br>£<br>196,457<br>199,509<br>(18,590)<br>55,053|
|---|---|



35 




## **The Buddy Bag Foundation** 

## 9 Stock 

|Stock of Buddy Bears<br>Investments|Group<br>Charity<br>2021<br>2020<br>2021<br>2020<br>£<br>£<br>£<br>£<br>11,579<br>16,897<br>11,579<br>16,897<br>100<br>100<br>100<br>100|
|---|---|
||11,679<br>16,997<br>11,679<br>16,997|



10 Debtors 

|Income receivable donations and Gift Aid<br>Prepaid expenses<br>Receivable from subsidiary company|Group<br>Charity<br>2021<br>2020<br>2021<br>2020<br>£<br>£<br>£<br>£<br>12,728<br>1,930<br>12,728<br>1,930<br>70<br>70<br>70<br>70<br>0<br>0<br>0<br>0|
|---|---|
||12,798<br>2,000<br>12,798<br>2,000|



11 Creditors: Amounts falling due within one year 

|Trade creditors<br>Accruals and deferred income<br>Other creditors<br>Payable to subsidiary company|Group<br>Charity<br>2021<br>2020<br>2021<br>2020<br>£<br>£<br>£<br>£<br>1,498<br>2,225<br>1,498<br>2,225<br>2,340<br>900<br>2,340<br>900<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0|
|---|---|
||3,838<br>3,125<br>3,838<br>3,125|



36 




## **The Buddy Bag Foundation** 

## 12 Movement in funds 

## **Current year** 

|Restricted Funds<br>Unrestricted Funds<br>Total Funds|At 1<br>January<br>2021<br>Income &<br>Gains<br>Expenditure<br>& Losses<br>At 31<br>December<br>2021<br>£<br>£<br>£<br>12,154<br>9,450<br>(15,210)<br>6,394<br>186,857<br>187,007<br>(199,837)<br>174,027|
|---|---|
||199,011<br>196,457<br>(215,047)<br>180,421|



## **Previous year** 

|Restricted Funds<br>Unrestricted Funds<br>Total Funds|At 1<br>January<br>2020<br>Income &<br>Gains<br>Expenditure<br>& Losses<br>At 31<br>December<br>2020<br>£<br>£<br>£<br>14,310<br>13,988<br>(16,144)<br>12,154<br>129,648<br>187,757<br>(130,548)<br>186,857|
|---|---|
||143,958<br>201,745<br>(146,692)<br>199,011|



## **Purpose of restricted funds** 

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

## 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). 

37