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2020-12-31-accounts

Arise Foundation Report and Accounts

Year ended 31 December 2020

Charity Registration Number 1165248

About Arise

Arise is a charity based in New York City and London, founded on the belief that more should be done to support grass-roots anti-slavery networks worldwide.

Our mission is to help these networks reach their potential by providing the support they need.

As an organisation, Arise consists of two charities, one established in the United States and one registered in England and Wales. The following set of accounts, for the year ended 31 December 2020 only shows those activities that took place in the UK entity .

To gain further information on the ongoing projects of the whole organisation please visit our website at http://arise.foundation/

Arise Foundation

Contents

Reports

Reports
Reference and administrative details of the
charity, its trustees and advisers 2
Trustees’ report 3
Independent auditor’s report 11
Accounts
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Principal accounting policies 18
Notes to the accounts 22

Arise Foundation

Reference and administrative details of the charity, its trustees and advisers

Trustees Rt Hon Prof the Lord Alton of Liverpool
Sister Lynda Dearlove RM MBE
Lord Hogan-Howe
Mrs Jane Leek
Sister Patricia Murray IBVM
Mrs Madawi al Saud
Mr Peter Smith
Ms Trixie Brenninkmeijer Schürholz
Ms Wendy Strauss
John Studzinski CBE
Director Mr Luke de Pulford
Administrative address Nazareth House
175,169 Hammersmith Road
W68DB
Telephone +44 (0) 203 903 7205
Charity registration number 1165248
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Principal bankers HSBC
PO Box 260
46 The Broadway
London
W5 5JR
Legal advisors Edward A. Scofield, Esq
Attorney at Law
201 East 87th Street
Suite 3D
New York, NY 10128

Arise Foundation 2

Trustees’ report Year ended 31 December 2020

The trustees present their report together with the accounts of the Arise Foundation (the charity) for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out on pages 18 to 21 of the attached accounts and comply with the charity’s constitution, the Charities Act 2011 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 United Kingdom and Republic of Ireland (FRS 102).

Charitable objects

The object of the charity, as set out in its constitution, is the promotion of human rights (as set out in the universal declaration of human rights and subsequent United Nations’ conventions and declarations) and elimination of the infringement of human rights by people trafficking anywhere in the world.

The principal aims and activities of the charity cover the following:

When setting the aims of the charity, the trustees have complied with their duty under section 17 of the Charities Act 2011 to have regard to the Charity Commission’s guidance on public benefit. The trustees believe they have demonstrated in detail throughout this report the ways in which the charity has been faithful to this guidance.

Our vision

Arise’s vision is a world without slavery in which the human dignity of every person is respected.

Our mission

Arise was founded to confront the problem of human trafficking and slavery through front-line abolitionists. We seek to weave threads of solidarity between those devoted to the defence of human dignity at local level and those in a position to help them.

Arise Foundation 3

Trustees’ report Year ended 31 December 2020

Our values

Respect for human dignity

No human being should be treated as a commodity. Yet we live in a world where human beings are bought, sold and forced into exploitation in their tens of millions. Every case of exploitation represents a failure of someone to uphold the inherent human dignity of another. Above all, therefore, we are committed to promoting individual human dignity, from which all rights and freedoms flow.

Solidarity

Where human dignity is under attack within the human family, solidarity demands we defend it. Belief in human dignity makes it impossible to turn your back on human suffering, regardless of creed, colour or other status. This confers a collective responsibility. The same solidarity demands that we challenge systems where unjust practices have become enshrined, leading to exploitation, and in the worst cases, direct enslavement, mutilation, and death. We are active in our commitment to solidarity - convening and connecting people of good will across all social and professional boundaries.

A front-line approach

At Arise we are committed to disrupting the structures of slavery permanently. This means seeking sustainable local solutions. Flowing from this commitment, we choose to collaborate with those working to provide direct services. These are selected individuals and organisations which reflect our values, which are running locally led, and - preferably - locally founded projects. We call these ‘front-line’ programs. We believe that this approach promotes greater local ownership amongst beneficiary communities, which improves participation and project longevity.

Person-centered

No two cases of exploitation are the same. For this reason, meeting the needs of survivors requires unflinching attentiveness, tenacity and an entrepreneurial spirit. At the same time, survivors are sometimes so affected by what they have endured that meeting their needs means providing stable, unconditional accompaniment over long periods. We believe that the qualities of creativity and unconditionality - which, to some degree, are in tension - are key to keeping human dignity at the heart of front line work and the antidote to commodification.

A patient catalyst

For all of the reasons above, we choose to work in a way which respects the expertise and right to self-determination of local activists. We aim to contribute to the building up of local networks in recognition of the truth that no one organisation alone can end slavery. We aim not to impose our ideas from the centre, but to listen, amplifying local voices, practising patience with our collaborators. It is our belief that this way of operating means that we can be a catalyst for positive change in the front line movement against modern slavery, adding capacity where we can, and supporting in other ways where our role is better fulfilled that way.

Arise Foundation 4

Trustees’ report Year ended 31 December 2020

Our activities

Our approach is rooted in the belief that ending slavery is a joint enterprise. Collaboration is at the heart of what we do, finding and developing dynamic partnerships with front-line abolitionists which are formative for both giver and beneficiary. We catalyse exemplary front-line work against slavery. This might be through the provision of financial assistance. It might also be through the provision of advice, administrative or capacity building support, or raising awareness.

Prevention focus

One thread running through our selection of partners is an emphasis on prevention, which we see as the neglected ‘P’ in the famed four-pillar paradigm of anti-trafficking work: Prevention, Protection, Prosecution and Partnership. Prevention work we support includes education, the provision of viable alternatives to the promises of traffickers, awareness raising, and, in some cases, protection.

The United Nations Secretary General has repeatedly called for more attention to be given to such efforts. Yet, despite this, there has been little convincing movement. New anti-trafficking NGOs operating in this space have concentrated heavily on rescue, rehabilitation and prosecution, and the pattern of public and private investment has tended to follow.

As the US Department of State rightly says: “Without prevention, governments are left to respond to the consequences of human trafficking without coming any nearer to seeing its end.” (United States Department of State 2016 Trafficking in Persons Report)

Grant making policy

The trustees apply the funds of Arise Foundation at their discretion and in accordance with the charitable purposes and objectives of the charity.

The trustees have delegated a Grant Making Committee to consider the distribution of beneficial grants on its behalf, comprising elected trustees and others. The Committee makes recommendations in accordance with the charitable purposes and objectives of the Arise Foundation. Ultimate responsibility for the administration of grants remains with the trustees.

The number of projects that can be supported by the trustees is necessarily limited to the funding available for distribution each year. The trustees have determined that the priorities for the current funding period are:

Arise Foundation 5

Trustees’ report Year ended 31 December 2020

Our activities (continued)

Grant making policy (continued)

Activities and achievements during the 2020 financial year.

This year Arise impacted the lives of 106,890 people. This includes 15,494 families in 40 different areas. We have found that our model - which works hard to push power out to frontline networks - was tried and tested this year, and showed its value. While many organisations were unable to reach those suffering during lockdown, our network was able to get to them, precisely because they are embedded in local communities. This was a great affirmation to us of the model we have chosen, which we now need to research further in order to persuade others of its value and replicability.

The coronavirus pandemic has had a major bearing on our operations in 2020. Arise’s work has always focused on prevention work in countries of origin, often to the benefit of migrant communities. Sweeping lockdowns across India, Eastern Europe and Southeast Asia have brought perilous risks to these communities. Many in precarious work were unable to return home, and unable to source basic essentials. Our work among these communities is therefore facing existential crisis. In order to prevent our work to date from being undone, and in order to ameliorate the crisis our target communities were facing, and continue to face, Arise launched an emergency fund to provide them with basic essentials. We followed this on with a second wave of grants intended to assist the transition between lockdowns and economic recovery. We made 71 emergency grants, and 9 transitional grants. This work directly affected the lives of 74,500 people.

The priorities for support will be reviewed by the trustees every year and may be changed depending upon circumstances and the perceived effectiveness of the application of funds. Any change to these priorities must still fulfil the charitable purpose and objectives of the charity. Arise has decided to invite proposals rather than to remain open to unsolicited applications. Unsolicited applications falling outside the scope of the Foundation’s priorities shall not be considered, unless there is a persuasive reason to do so, agreed by the trustees. Grants awarded are normally medium sized - around £10,000 to £15,000.

Financial review

Results for the period

A summary of the period’s results can be found on page 15 of the accounts.

Total income for the year amounted to £533,807 (2019 – £369,555) and was derived from donations from both individuals and organisations.

Expenditure in the year totalled £505,978 (2019 – £312,667). Expenditure includes expenditure on charitable activities of £490,666 (2019 – £292,963) and expenditure on raising funds of £15,312 (2019 – £19,704). Details of charitable grants are included in note 3 to the accounts.

Arise Foundation 6

Trustees’ report Year ended 31 December 2020

Financial review (continued)

Results for the period (continued)

Net income for the year and increase in funds for the year, therefore, was £27,829 (2019 – net income of £58,888).

Financial position

The balance sheet shows total funds of £153,164 at 31 December 2020 (2019 – £125,335).

Reserves policy and going concern assessment

The charity was established in January 2016 and currently has a free reserves policy of three months building up to free reserves of up to six months of operational expenditure over the next two years in recognition of responsibilities towards staff and grantees. Free reserves are total unrestricted funds less the amount held within fixed assets and any funds which are designated. At 31 December 2020 the charity’s free reserves were £150,127 (2019 – £60,843), the equivalent to 3.6 months of reserves (2019 - 2.4 months). This is in line with the policy to grow the level of general reserves to six months of operational expenditure by 31 December 2021.

In considering the level of reserves, the trustees have given specific consideration to the impact of COVID-19 and there are no concerns regarding the Foundation’s ability to continue as a going concern for the foreseeable future. As lockdowns eased and populations adjusted, Arise has moved away from issuing emergency COVID grants towards a grant-giving strategy focused on enabling communities to move towards economic recovery. We have called this strategy our “transitional grant” programme. For the most part, these transitional grants are of a similar size and form to Arise's normal pattern of grant-giving. For this reason, we do not anticipate a change in our work due to COVID after 2021.

Future plans

We will continue to work towards our vision as an organisation, making grants to organisations working to combat human trafficking and slavery as well as to research

Governance, structure and management

Governing document

Arise Foundation is a Charitable Incorporated Organisation (CIO) governed by a constitution dated 20 January 2016. It is a registered charity, Charity Registration Number: 1165248.

Trustees

The charity has ten trustees. There must be at least three charity trustees and no more than twelve.

Every trustee must be appointed by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment, the trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity.

Arise Foundation 7

Trustees’ report Year ended 31 December 2020

Governance, structure and management (continued)

Trustees (continued)

The names of the trustees who served during the year and at the time of approving the accounts are set out below. All trustees served for the entire year except where stated.

Trustee Appointed/resigned

Rt Hon Prof the Lord Alton of Liverpool Sister Lynda Dearlove RSM MBE Rt Hon the Lord Hogan-Howe QPM kt Mrs Jane Leek Sister Patricia Murray IBVM Mrs Madawi al Saud Mr Peter Smith Ms Trixie Brenninkmeijer Schürholz Ms Wendy Strauss John Studzinski CBE

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial period which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing the accounts the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Arise Foundation 8

Trustees’ report Year ended 31 December 2020

Governance, structure and management (continued)

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. As a result of the international scope of their work, they meet formally as often as necessary to review developments with regard to the charity or its activities and make any important decisions. The trustees use electronic means to be informed and kept up to date with developments within the charity. When necessary, the trustees seek advice and support from the charity’s professional advisers. The day-to-day management of the charity’s activities, and the implementation of policies, is delegated to the Director.

Key management

The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. They receive no remuneration or reimbursement of expenses in connection with their duties as trustees.

Risk management

The trustees believe the significant risks facing the charity to be:

Arise Foundation 9

Trustees’ report Year ended 31 December 2020

Governance, structure and management (continued)

Risk management (continued)

The trustees are due to renew a formal review of risks, with the aim of updating the risk register to formally identify risks and implement mitigating actions.

Signed on behalf of the trustees:

Trustee

Approved by the trustees on: 24.3.2021

Arise Foundation 10

Independent auditor’s report Year ended 31 December 2020

Independent auditor’s report to the trustees of Arise Foundation

Opinion

We have audited the accounts of Arise Foundation (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

Arise Foundation 11

Independent auditor’s report Year ended 31 December 2020

Other information (continued)

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Arise Foundation 12

Independent auditor’s report Year ended 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Arise Foundation 13

Independent auditor’s report Year ended 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 15 April 2021

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Arise Foundation 14

Statement of financial activities Year to 31 December 2020

(including income and expenditure account)

Notes 2020
£		 2019
£
Income from
Donations
1
Other income
Total income
Expenditure on
Raising funds
2
Charitable activities: Elimination of the infringement of human
rights
3
Total expenditure
Net income for the year and net movement in funds
5
Balances brought forward at the start of the year
Balances carried forward at the end of theyear		 533,807
—		 369,355
200
533,807 369,555
15,312
490,666		 19,704
292,963
505,978 312,667
27,829
125,335		 56,888
68,447
153,164 125,335

All income and expenditure during the current year and previous year was unrestricted.

All recognised gains and losses for the period are included in the statement of financial activities.

Arise Foundation 15

Balance sheet 31 December 2020

Notes
2020
£		 2020
£		 2019
£		 2019
£
Tangible assets
Fixed assets
8
Current assets
Debtors
9
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due
within one year
10
Net current assets
Total net assets
Represented by:
The funds of the charity
Unrestricted funds
. General funds
. Designated funds
11

17,285
145,177		 3,037
150,127		 5,553
152,748		 1,753
123,582
162,462

(12,335)		 158,301
(34,719)
153,164 125,335
153,164
—		 62,596
62,739
153,164 125,335

Approved by the trustees and signed on their behalf by:

Trustee

Approved by the trustees on: 24.3.2021

Arise Foundation 16

Cash flows 31 December 2020

A
B
C		 Cash flows from operating activities
Net cash (used in) provided by operating activities
A
Cash flows from investing activities
B
Change in cash and cash equivalents in the year
Reconciliation of net cash flow to movement in net funds:
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
C		 Cash flows from operating activities
Net cash (used in) provided by operating activities
A
Cash flows from investing activities
B
Change in cash and cash equivalents in the year
Reconciliation of net cash flow to movement in net funds:
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
C		 2020
£		 2019
£

(4,171)

(3,400)		 91,473
—
(7,571)
152,748		 91,473
61,275

145,177		 152,748
Reconciliation of net income to net cash (used in) from operating activities
2020
£
Net income for the reporting period (as per the statement of
financial activities)
27,829
Adjusted for:
Depreciation charges
2,116
(Increase) decrease in debtors
(11,732)
(Decrease) increase in creditors
(22,384)
Net cash(used in) /provided by operating activities
(4,171)
Cash flows from investing activities
2020
£
Purchase of tangible fixed assets
(3,400)
Net cash used in investing activities
(3,400)		 2019
£

27,829
2,116
(11,732)
(22,384)		 56,888
1,683
10,082
22,820
(4,171) 91,473
2020
£		 2019
£
Purchase of tangible fixed assets
Net cash used in investing activities		 (3,400) —
(3,400) —
Analysis of changes in net debt At 1
January
2020
£		 Cash flows
£		 At 31
December
2020
£
Cash and cash equivalents 152,748 (7,571) 145,177

Arise Foundation does not have any borrowings or lease obligations. Net debt consists therefore of the cash at bank and in hand only.

Arise Foundation 17

Principal accounting policies Year to 31 December 2020

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below:

Basis of preparation

The accounts 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

These accounts have been prepared for the year to 31 December 2020 with the comparatives for year ended 31 December 2019.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

Other than the allocation of governance and support costs between the various categories of expenditure, there are no items in the accounts where key judgements and estimates have been made.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. Despite the global uncertainty in relation to COVID-19, there are no concerns regarding the Foundation’s ability to continue as a going concern.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Arise Foundation 18

Principal accounting policies Year to 31 December 2020

Income recognition (continued)

The principal source of income is donations.

Donations, receivable in cash, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Donated services and facilities provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided/the facilities are used by the charity. An equivalent amount is included as expenditure. Donated services and 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 facilities or services of equivalent economic benefit on the open market.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. The classification between activities is as follows:

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial period are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued but are disclosed as financial commitments in the notes to the accounts.

All expenditure is stated inclusive of irrecoverable VAT.

Arise Foundation 19

Principal accounting policies Year to 31 December 2020

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support including in the form of financial procedures.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support and governance costs are apportioned using percentages based on the direct expenditure incurred on each of the activities of the charity.

Tangible fixed assets

Individual assets with an expected useful life exceeding one year are capitalised at cost. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computers and equipment 33% on a straight line basis

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund structure

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

Unrestricted funds comprise those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the trustees.

Foreign currencies

Assets and liabilities in foreign currencies are translated into Sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Arise Foundation 20

Principal accounting policies Year to 31 December 2020

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.

Pension costs

Contributions in connection with the charity’s defined contribution scheme are charged to the statement of financial activities in the period in which they become payable to the scheme.

Arise Foundation 21

Notes to the accounts Year to 31 December 2020

1 Income from: Donations

Income from: Donations
2020
£		 2019
£
Donations
Arise Foundation America Inc.
Gift Aid
Trustees (see note 12)
Other		 180,205
54,086
275,449
24,067		 166,596
27,678
173,609
1,472
533,807 369,355

Donations from trustees include donations in kind amounting to £62,916 (2019 - £62,899) in relation to staff costs.

2
3		 Expenditure on: Raising funds
Allocated support and governance costs (note 4)
Expenditure on: Charitable activities
Grants
. India
. UK
. Philippines
. Albania
Total grants awarded
Grants to be returned
. India
Total grant expenditure
Direct costs
. Program costs
. Bank fees
. Website
. Events
. Travel costs
. Staff costs (note 6)
Allocated support and governance costs (see note 4)		 Expenditure on: Raising funds
Allocated support and governance costs (note 4)
Expenditure on: Charitable activities
Grants
. India
. UK
. Philippines
. Albania
Total grants awarded
Grants to be returned
. India
Total grant expenditure
Direct costs
. Program costs
. Bank fees
. Website
. Events
. Travel costs
. Staff costs (note 6)
Allocated support and governance costs (see note 4)		 2020
£		 2019
£
15,312 19,704
15,312 19,704
2020
£		 2019
£
Grants
. India
. UK
. Philippines
. Albania
Total grants awarded
Grants to be returned
. India
Total grant expenditure
Direct costs
. Program costs
. Bank fees
. Website
. Events
. Travel costs
. Staff costs (note 6)
Allocated support and governance costs (see note 4)		 242,324
500
10,000
48,366		 100,564
24,069
7,917
—
301,190 132,550
(4,700) —
296,490 132,550
—
1,699
2,956
202
129,802		 7,494
—
3,427
4,804
8,523
86,067
134,659 110,315
59,517 50,098
490,666 292,963

Arise Foundation 22

Notes to the accounts Year to 31 December 2020

4 Support and governance costs

Support and governance costs
2020
£		 2019
£
Staff costs (note 6)
Office costs
Travel
Website costs
Governance costs:
. Travel
. Staff costs (note 6)
. Auditor’s remuneration		 23,758
32,066
1,113
3,049
—
10,223
4,620		 29,774
22,345
2,874
3,427
245
6,517
4,620
74,829 69,802

Support and governance costs have been allocated to expenditure on raising funds and charitable activities as follows:

2020
£		 2019
£
Raising funds
Charitable activities		 15,312
59,517		 19,704
50,098
74,829 69,802

The charity allocates its support costs using percentages based on the direct expenditure incurred on each of the activities of the charity.

5 Net income for the period

This is stated after charging:

2020
£		 2019
£
Auditor’s remuneration (including VAT)
. Statutoryaudit fees		 4,620 4,620

6 Staff costs and remuneration of key management personnel

Staff costs during the period were as follows:

2020
£		 2019
£
Wages and salaries
Social security costs
Pension costs		 148,175
11,001
4,609		 112,082
7,747
2,528
163,785 122,357
2020 2019
Average no. of staff 4 3

Arise Foundation 23

Notes to the accounts Year to 31 December 2020

Included in staff costs above is £62,916 (2019 - £62,899) total remuneration paid on behalf of the charity. The value of the time spent in this role is also included within donations in kind income.

The trustees consider that they, together with all staff of the Foundation comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £163,785 (2019 - £122,357).

No trustee received reimbursement of travelling expenses in the year (period ended 31 December 2019 – £nil).

7 Taxation

Arise Foundation is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

8 Tangible fixed assets

8 Tangible fixed assets
9 Computers
and
equipment
£
Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 5,049
3,400
8,449
3,296
2,116
5,412
3,037
1,753
Debtors 2020
£		 2019
£
Gift Aid receivable
Other debtors		 12,650
4,635		 —
5,553
17,285 5,553

Arise Foundation 24

Notes to the accounts Year to 31 December 2020

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2020
£		 2019
£
Accruals
Other creditors		 7,620
4,715		 7,620
27,099
12,335 34,719

11 Designated funds

At
1 January
2020
£		 New
designations
£		 Utilised/
Released
£		 At
31 December
2020
£
Projects fund 62,739
36,567		 (99,306) —
62,739
36,567		 (99,306) —

Projects fund

The projects fund relates to income received from funders which has been earmarked by the Foundation to use on specific projects over future financial years and which, therefore do not form part of the general funds of the charity. Amounts designated during this period are expected to be utilised within the next financial year.

12 Related party transactions

During the year ended 31 December 2020, 2 trustees made donations to the Arise Foundation, including donations in kind, of £275,449 (2019 – £173,610 donated by one trustee) (see note 1).

13 Related entity

The charitable company is closely related to Arise Foundation America Inc, a US tax exempt organisation registered in the state of Delaware and was founded to carry out the work of that entity in the UK.

Apart from the donations received as shown in note 1 to the accounts, there were no transactions with the parent during the period.

Arise Foundation 25