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2022-12-31-accounts

The Buddy Bag Foundation

CONTENTS

Page
Report of the Trustees 1
●
Objectives and Activities		 5
●
Achievements and Performance		 7
●
Financial Review		 19
●
Structure, Governance and Management		 23
●
Reference and Administrative Details		 25
Independent Examiner's Report 26
Consolidated Statement of Financial Activities 27
Balance Sheets 28
Notes to the Financial Statements 29 to 35

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 2022.

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.

1

The Buddy Bag Foundation

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.

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.

2

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.

As we came out of COVID-19, 2022 has been an amazing year for the Buddy Bag Foundation. We have delivered 8,590 bags in 2022 (9,297 in 2021) Buddy Bags this year. Making a difference to 8,590 children. We are proud to have delivered a total of 49,008 Buddy Bags, hosted 261 Buddy Bag Brigades and engaged with 4,190 volunteers in the period since formation to 31 December 2022.

We were delighted to recognise over 4000 Buddy Bag volunteers by receiving the Queens Award for Voluntary Service awarded as part of the Queens Jubilee and presented at Birmingham Hippodrome by the Lord Lieutenant on 30th October 22.

BBF believes that every child deserves to be loved and our range of Inspirational Pyjamas “I am Loved” launched only weeks ago have proved to be in great demand offering a B1G1 option.

We have now settled into our very own BBF HQ, kindly donated to us by Graham Johnston, a local Business owner in Minworth Sutton Coldfield. This generous donation has not only afforded us the base we so desperately needed but has also ensured that we have the facility to pack bags, have sufficient storage and the luxury of being able to buy items in bulk and lower costs.

Our Team Building Events have been in demand too, Gowling Solicitors, Ashurst and Amazon have all held events as part of their Corporate Social Responsibility programs. A massive Thank you to TPN for raising £35,000 for BBF at their event. Very much appreciated.

Thank you to all our volunteers and supporters for supplying our “Bags of Love” to children in emergency care together we have achieved and are continuing to achieve something truly special. 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 CEO

Co- Founder and Trustee

3

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.

4

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.

5

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

6

The Buddy Bag Foundation

Achievements and Performance

During the year ended 31 December 2022:

2022 2021 Formation to 31st Dec
2022
Buddy Bags Distributed 8,590 9,297 49,008
Number of Buddy Bag
Brigades		 48 48 261
Number of Volunteers
Engaged		 505 545 4,190
Women’s Refuges
Supplied		 286 310 682

----- Start of picture text -----
Buddy Bags distributed in 2022
51,000 270
260
49,000
250
47,000
240
45,000
230
43,000
220
41,000
210
39,000
200
37,000 190
35,000 180
Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22
Budy Bags to date Buddy Bag Brigades to date
Cumulative Buddy Bag Brigades this year
Cumulative Buddy Bags distributed this year
----- End of picture text -----

7

The Buddy Bag Foundation

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 2022 Buddy Bag Brigades have been held in Birmingham, the West Midlands, York , North Wales, Cardiff, Rugby, London and Essex.

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 £307,888 (2021: £196,457).

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.

Our campaign to receive hand knitted toys, handmade toiletry bags and pencil cases has continued to be very popular during the 2022. Numerous groups throughout the UK making a difference to children by donating these items gives them a purpose too.

8

The Buddy Bag Foundation

Patrons and Supporter

Our Patrons are Olivia Hill, Molly Windsor, Jess Phillips MP and Supporter Dr. Hilary Jones.

Ambassadors

We now have a number of Ambassadors nationwide (for example: York, Essex, Cardiff, North Wales, South Wales and Rugby) 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 4190 volunteers since formation to 31 December 2022. 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/

9

The Buddy Bag Foundation

BBF Awards

BBF Annual Awards held at Harvest Fields Sutton Coldfield in Sept 22 to celebrate our Volunteers, Ambassadors and Supporters.

The winners and runners up:

Volunteer of the Year Julie Holder and Team - "Packed with Love" Jane Probert and Amy Williams
Ambassador Kerrie Padmore "Buddy Bag Sewing with
"Livingin Loveliness"		 Team Cal Brooks
Going the Extra Mile Nicholas lee BNI Premier - Givers Gain
Top Fundraiser Masons Andrew Perks
CSR Ashurst Amazon
Making a difference
Award		 Harry Swinbourne Sylvia Kerris

10

The Buddy Bag Foundation

Fundraising events

We would like to thank all our supporters for their support during 2022.

Bracebridge Restaurant held a Fashion Show. TDP donated £37,500 to Buddy Bag Foundation as one of their charities. Lots of individuals and groups raised funds such as walks, golf and hiking.

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

11

The Buddy Bag Foundation

Awards received

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

20[th] October 2022

We were delighted to recognise over 4000 Buddy Bag volunteers by receiving the Queens Award for Voluntary Service awarded as part of the Queens Jubilee and presented at Birmingham Hippodrome by the Lord Lieutenant.

12

The Buddy Bag Foundation

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

2. Creates fantastic exposure for your brand

3. Strengthens relationships with your customers

4. Encourages employee engagement and attracts potential employees

5. Enhances client relationships

6. Helps to build your team, boosting self-improvement for all

Our current partners include: Utility Warehouse, Four Oaks Financial Services, Sydney Mitchell, Gateley, National Express, Gowling, Amazon, Jaguar Land Rover, B1G1, Trowers and Hamlins, The Pallet Network.

For further detail on how you can be part of our CSR Team Building initiative please see 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 dedicated 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.

Thank You to our Corporate Supporters of donations that help reduce the cost of our Buddy Bags.

https://buddybagfoundation.co.uk/supporters/

14

The Buddy Bag Foundation

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

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-Factsheet-2021.pdf

16

The Buddy Bag Foundation

Whats New!

2022 celebrated the launch of our Buddy Bag Foundation Pyjamas.

At Buddy Bag Foundation, we believe that every child deserves to be loved – Our Branded “I am loved” Pyjamas and branded pants and vests are now included in all our Buddy Bags.

We have also opened a Shopify Shop which is promoted on our web site and social media pages – We are selling B1G1 Pyjamas and Buddy Bears. For every item purchased we will donate the same item to a Buddy Bag. Making a difference to children in emergency care.

Resource Bags

We supply all Women’s Refuge sites with a Resource Bag which contains a toolkit of items that can be used by the child support worker when working with children in women’s refuge. Items include donated books, mood doll, puppets, Buddy Bear, emotions handbook, children’s affirmation cards.

17

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 ,,,,,,,? ”

18

The Buddy Bag Foundation

Financial Review

----- Start of picture text -----
Total Donations Received 2022: £225,157
£50,450 £46,752
Donations from individuals
Donations from companies
Donations from groups
£7,953
£62
Donations at events
Gift Aid
£37,131 Donated goods, services and facilities
£82,808
----- End of picture text -----

The Charity has had a better year since the COVID-19 restrictions abated to enable people to go about their lives relatively normally again. Our income has consequently recovered and increased on pre-COVID 19 levels.

Income from donations and legacies increased by £32,096 (16.6%) from £193,061 in 2021 to £225,157 in 2022.

Cash donations of £174,706 (2021: £133,223) were received from individuals 27%, companies 47%, groups 21%, and Gift Aid claimable on donations 5%.

Donations received included:

Charity of the year Connect Services Plumbing £480
Groups Rotary
£7,150
Sporting Bears Club £10,070
B1G1
£12,939
Companies The Pallet Network £18,750
E H Smith Builders Merchants £5,000

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

19

The Buddy Bag Foundation

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.

We continue to see an increase in volunteers knitting toys and sewing toiletries bags and pencil cases. This year donations of goods, services and facilities totalled £50,450 (2021: £59,837), a decrease of £9,387 (15.7%).

Non-cash donations received this year include:

Knitted toys and other goods received for Buddy Bags £29,986
Other donated services £2,584
Storage facilities £2,880
Venue for BBF, Minworth £15,000

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.

Other trading activities

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

November 2022 we launched our Shopify Sales Site. Selling our BBF branded “I am Loved” Pyjamas, Buddy Bear and “Buddy Book” written by Laura Ewers and donated to BBF (all profits donated to BBF).

The Pyjamas and Buddy Bear are promoted on a B1G1 basis. BBF donates a pair of Pyjamas or Bear to a child in emergency care.

20

The Buddy Bag Foundation

Fundraising events and sales of workshops totalled a massive £79,927 (2021: £1,543).

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 £1,737 (2021: £453).

----- Start of picture text -----
Expenditure
£24,171
Support costs
£9,529
£223,786
Direct costs
£192,864
£10,170
Raising funds
£12,654
0 50,000 100,000 150,000 200,000 250,000
2022 2021
----- End of picture text -----

Expenditure

Expenditure on raising funds totalled £10,171 (2021: £12,654). Unrestricted expenditure of £1,385 consisted of processing charges on income received £1,034,Just Giving membership fee £351 and cost of Buddy Bears toys for fundraising nil (2021: £165). Restricted fund expenditure on fundraising of £8,786 consisted of £3,784 on website design and services, £4,864 on advertising & promotion and £139 on admin costs.

----- Start of picture text -----
Cost of Buddy Bag Brigades 2022: £223,786
Other direct costs £13,816
£15,088
£0
Other donated services and facilities for Buddy Bag Brigades
£700
£0
Donated delivery charges
£950
£11,094
Delivery charges
£10,682
£29,986
Donated materials for Buddy Bags
£41,624
£15
Materials purchased for craft boxes
£21
£168,875
Materials purchased for Buddy Bags
£123,799
0 20,000 40,000 60,000 80,000100,000120,000140,000160,000180,000
Total Funds 2022 Total Funds 2021
----- End of picture text -----

21

The Buddy Bag Foundation

Buddy Bag Brigades are the events at which Buddy Bags are crafted. The 8,590 Buddy Bags this year (2021: 9,297 Buddy Bags) cost £223,786 (2021: £192,864) to produce, an increase of £30,922 (16%).

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 £24,171 (2021: £9,529) of which £1,607 were covered by restricted funds. The expenditure from unrestricted funds of £22,564 mainly comprised administrative services £1,027, donated Independent Examination Fees of £2,400, donated storage costs for the materials before they are used in Buddy Bag Brigades of £2,880, venues for Buddy Bag Brigades of £15,000 and insurance of £726. Expenditure from restricted funds comprised license and software costs and other administrative support costs total £1,607.

Restricted funds and angels

Restricted funds donations to the Charity which are specifically designated to cover the administration costs. In 2019 a new program 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 £2,900 (2021: £7,450) and donated goods, services, and facilities of £2,000 (2021: £2,000).

Financial position

The Trustees are very satisfied with the financial position as at 31 December 2022. The charity had £228,685 at the bank (2021: £159,682).

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 2022, the unrestricted cash at bank was well in excess of this minimum.

Financial prospects

The charity is in an excellent financial situation; with sufficient cash to finance ongoing supplies of buddy bags.

The income of the charity has increased now that the economic effects of the pandemic have reduced and the Charity hopes to continue on this upward trend to be able to supply as many Buddy Bags as we can to refuges as the demand has sadly not declined.

22

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.

23

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.

24

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 2022 and since the year end were as follows:

Date appointed/resigned as Trustee
Chairman D M Whitbrook
CEO K S Williams OBE
Treasurer L L Lomax
Trustees A Henry
D M Fielding
P Tranter
H E Williams
S McCarthy 28thOctober 2022
J Hood 28thOctober 2022
D Tyrell 28thOctober 2022
S Hinds 1stNovember 2022
J Lunn 1stNovember 2022

Advisory board

The advisory board members serving during the year ended 31 December 2022 and since the year end were as follows:

Advisory Board C M Williams

By order of the board of trustees on 30[th] October 2023 and signed on its behalf by:

D M Whitbrook (Chairman)

25

The Buddy Bag Foundation The Buddy Bag Foundaton INDEPENDENT EXAMINER'S REPORTTO THE TRUSTEES OF THE BUDDY BAG FOUNDATION I report on the accounts forthe period Oljanuary 2022 to 31 Oe(ember 2022 set out on the followlnE pages. RespectNe responsibilities of tnjstees aml examtner The charity's trustees are responslble forthe preparaiion olthe accourtts. The charity's trustees considerthat an audit is not ￿quired for thi5 period lundersettion 144121 of the Ctharitie5 Act 2011 (the 2011 Actll and that an independent examination is required. It 15 my responsibility to- examine the accounts under Sertion 145 of the 2011 Act to follow the procedures laKI down in the General Directions BNen byt￿ Charity Commission (under Sertion 14515llbl of the 2011 Atil- and to state whether particular matters have come to my attentK)n. Basts of the independent examine¢s report My examination was carried otst in accordan¢e with the General Direcl•)ns gryen by the Charity Commission. An examinaiion includes a review of ihe accounting records kept by the charlty and a comparison of the accounts presented with those records. It also includes considerat#)n of any unusual items or disclosures tn the acrounts. and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provrde all the evidence that would ￿ iequired in an audit. and consequently no opinioTr is given as to whether the accounts piesent a'true and fair view. and the report 15 limited to those matters set out in the statements below. Indepeftdent examiner's statement In connection with my examination, no matter has come to my attention: which gives me reasonable cause to believe thaL in any material respett. the reguiiements to keep accountinR records in accordance wilh Sertion 130 of the 2011 Act.. and to prepare accounts which accord wilh the accounting record5and to compty wrth the accounting requirements of the 2011 Act have not been met.. or 121 acc to which. in my opin*JTr. attention should be drawn in orderto enable a propef understanding oFthe unts io be reached Dr Kamfarfghaikh Morgan Reach Chartered Certified Accountants Morgan Reach House 136 Hagley Road Birn)in8ham West Midlands 816 9NX Date.. 30 October 2023 26

The Buddy Bag Foundation

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

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
2022
Total Funds
2021
£
£
£
£
197,322
27,835
225,157
193,061
81,677
0
81,677
2,302
1,054
0
1,054
1,094
280,053
27,835
307,888
196,457
1,384
8,786
10,170
12,654
223,786
0
223,786
192,864
22,564
1,607
24,171
9,529
247,734
10,393
258,127
215,047
32,319
17,442
49,761
(18,590)
174,027
6,394
180,421
199,011
206,346
23,836
230,182
180,421

The notes form part of these financial statements

27

The Buddy Bag Foundation

BALANCE SHEET AS AT 31 DECEMBER 2022

Note
FIXED ASSETS
Investment
7
Total fixed assets
CURRENT ASSETS
Stock
9
Debtors
10
Cash at bank and in hand
Total current assets
Creditors falling due within one year
11
Net current assets
NET ASSETS
FUNDS OF THE CHARITY
Restricted income funds
12
Unrestricted funds
12
TOTAL CHARITY FUNDS		 Group
Charity
2022
2021
2022
2021
£
£
£
£
100
100
100
100
100
100
100
100
4,767
11,679
4,767
11,679
7,098
12,798
6,480
12,798
228,685
159,682
189,820
159,429
240,550
184,159
201,067
183,906
(10,468)
(3,838)
(10,760)
(3,838)
230,082
180,321
190,307
180,068
230,182
180,421
190,407
180,168
23,836
6,394
24,207
6,688
206,346
174,027
166,200
173,421
230,182
180,421
190,407
180,109

The financial statements were approved by the Board of Trustees on 30[th] October 2023 and were signed on its behalf by:

D M Whitbrook (Chairman)

The notes form part of these financial statements

28

The Buddy Bag Foundation

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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.

29

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.

30

The Buddy Bag Foundation

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
Cash donations only
3 Other trading activities
Bids
Sales of Buddy Bear toys
Compensation received
Fundraising events
Sales of workshops and team building
events
4 Raising funds expenditure		 Unrestricted
Funds
Restricted
Funds
Total
Funds
2022
Total
Funds
2021
2022
percent of
total
Change
Percent
change
£
£
£
£
%
£
%
46,752
0
46,752
64,759
26.8%
(18,007)
27.8%
54,973
27,835
82,808
47,503
47.4%
35,305
74.3%
37,131
0
37,131
16,692
21.3%
20,439
122.4%
62
0
62
82
0.0%
(20)
24.4%
7,953
0
7,953
4,187
4.6%
3,766
89.9%
50,450
0
50,450
59,837
(9,387)
15.7%
197,321
27,835
225,156
193,060
100.0%
32,096
16.6%
146,871
27,835
174,706
133,223
41,483
Unrestricted
Funds
Restricted
Funds
Total
Funds
2022
Total
Funds
2021
2022
percent of
total
Change
Percent
change
£
£
£
£
%
£
%
0
0
0
0
0.0%
0
0.0%
1,750
0
1,750
453
2.1%
1,297
286.3%
0
0
0
306
0.0%
(306)
100.0%
2,631
0
2,631
1,543
3.2%
1,088
70.5%
77,296
0
77,296
0
94.6%
77,296
0.0%
81,677
0
81,677
2,302
100.0%
79,375
3447.9%
Processing charges on income received
Just Giving membership fee
Admin service costs
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
2022
Total
Funds
2021
2022
percent of
total
Change
Percent
change
£
£
£
£
%
£
%
1,034
0
1,034
797
10.2%
237
29.7%
351
0
351
216
3.5%
135
62.5%
0
139
139
0
1.4%
139
0.0%
0
0
0
165
0.0%
(165)
100.0%
0
0
0
0
0.0%
0
0.0%
0
93
93
624
0.9%
(531)
85.2%
0
0
0
0
0.0%
0
0.0%
0
8,555
8,555
9,469
84.1%
(914)
9.7%
0
0
0
1,162
0.0%
(1,162)
100.0%
0
0
0
221
0.0%
(221)
100.0%
1,385
8,786
10,171
12,654
100.0%
(2,483)
19.6%

31

The Buddy Bag Foundation

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
2022
Total
Funds
2021
2022
percent of
total
Change
Percent
change
£
£
£
£
%
£
%
168,875
0
168,875
123,799
68.8%
45,076
36.4%
15
0
15
21
0.0%
(6)
28.6%
29,986
0
29,986
41,624
12.2%
(11,638)
28.0%
11,094
0
11,094
10,682
4.5%
412
3.9%
0
0
0
950
0.0%
(950)
100.0%
0
0
0
700
0.0%
(700)
100.0%
13,816
0
13,816
15,088
5.6%
(1,272)
8.4%
223,786
0
223,786
192,864
91.1%
30,922
16.0%
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
2022
Total
Funds
2021
0.0%
Change
Percent
change
£
£
£
£
%
£
%
0
0
0
680
0.0%
(680)
100.0%
2,880
0
2,880
2,880
1.2%
0
0.0%
1,027
0
1,027
1,686
0.4%
(659)
39.1%
0
0
0
350
0.0%
(350)
100.0%
726
0
726
374
0.3%
352
94.1%
0
0
0
1,193
0.0%
(1,193)
100.0%
17,931
1,607
19,538
2,366
7.9%
17,172
725.8%
22,564
1,607
24,171
9,529
9.7%
14,642
153.7%
246,350
1,607
247,957
202,393
200.0%
45,565
22.5%

6 Trustees’ remuneration and benefits

The charity Trustees were not paid nor received any other benefits from employment with the charity in the year (2021: £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 these workshops, including travel and subsistence costs totaling £nil (2021: £nil).

32

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
Other income
Net profit
Amount gift aided to the charity under deed of covenant
Retained in subsidiary
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves		 2022
2021
£
£
39,731
312
0
0
39,731
312
(39,731)
(312)
0
0
31 Dec
2022
31 Dec
2021
£
£
39,901
253
(39,801)
(153)
100
100
100
100

8 Parent charity

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

Gross income
Net income
9 Stock		 2022
2,021
£
£
305,488
196,457
49,761
(18,590)
Stock of Buddy Bears
Other stock		 Group
Charity
2022
2021
2022
2021
£
£
£
£
4,667
11,579
4,667
11,579
100
100
100
100
4,767
11,679
4,767
11,679

33

The Buddy Bag Foundation

10 Debtors

Income receivable donations and Gift Aid
Prepaid expenses
Receivable from subsidiary company		 Group
Charity
2022
2021
2022
2021
£
£
£
£
6,410
12,728
6,410
12,728
688
70
70
70
0
0
0
0
7,098
12,798
6,480
12,798

11 Creditors: Amounts falling due within one year

Trade creditors
Accruals and deferred income
Other creditors
Payable to subsidiary company		 Group
Charity
2022
2021
2022
2021
£
£
£
£
8,128
1,498
8,420
1,498
2,340
2,340
2,340
2,340
0
0
0
0
0
0
0
0
10,468
3,838
10,760
3,838
12 Movement in funds
Current year
Restricted Funds
Unrestricted Funds
Total Funds
Previous year
Restricted Funds
Unrestricted Funds
Total Funds		 At 1
January
2022
Income &
Gains
Expenditure
& Losses
At 31
December
2022
£
£
£
6,394
27,835
(10,393)
23,836
174,027
280,053
(247,734)
206,346
180,421
307,888
(258,127)
230,182
At 1
January
2021
Income &
Gains
Expenditure
& Losses
At 31
December
2021
£
£
£
12,154
9,450
(15,210)
6,394
186,857
187,007
(199,837)
174,027
199,011
196,457
(215,047)
180,421

34

The Buddy Bag Foundation

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).

35