OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Charity Registration No. 1169228

Company Registration No. 10377607 (England and Wales)

CHARITY GLOBAL (UK) LIMITED

CHARITY: WATER

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Patrick Luke Beauchamp
Valerie Donati
Alexander Gordon
Scott Harrison
Samuel Lawson Johnston
Onyeije Nwokorie
Mara Klemich (Appointed 26 February 2020)
Eniola Aluko (Appointed 11 March 2021)
Secretary Christopher Barton
Charity number 1169228
Company number 10377607
Registered office Devonshire House
1 Devonshire Street
London
W1W 5DR
Auditor Citroen Wells
Chartered Accountants
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers HSBC UK Bank Plc
London Commercial Banking Centre
6th Floor
71 Queen Victoria Street
London
EC4V 4AY
Solicitors Withers LLP
16 Old Bailey
London
EC4M 7EG

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER CONTENTS

Page
Trustees' report 1 - 8
Independent auditor's report 9 - 12
Statement of financial activities 13
Statement of financial position 14
Statement of cash flows 15
Notes to the financial statements 16 - 24

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association , the Companies Act 2006 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)” .

Objectives and activities

charity: water has a vision to reinvent charity, and a mission is to bring clean, safe drinking water to to every single person on the planet.

Our approach to charity is new and disruptive. 100% of public donations are spent in the developing countries on clean water projects and associated water, sanitation and hygiene (WASH) activities. We do not spend one penny from this pot of donations here in the UK and we prove each of our projects using photos and GPS coordinates.

As a grant making organisation, we raise money for clean water solutions, delivered by local partners in developing countries. Grants relieve poverty and suffering through the improvement of water supplies and sanitation services and the advancement of education in relation to water, sanitation and safe hygiene practices.

The Objects of charity: water are such charitable purposes for the public benefit in any part of the world the trustees determine appropriate, including but without limitation to countries low on the UN’s Human Development Index:

a) the relief of poverty, hunger and related suffering, in particular through the improvement of water supplies and sanitation;

b) the promotion of health and the relief of sickness and need resulting from preventative disease; and c) the advancement of education

Public benefit statement

The trustees confirm that we have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning future activities.

Achievements and performance - funding clean water and leading in sustainability

In 2020, charity: water raised enough funds to bring clean water to 50,832 people. This brings our total impact, since 2017, to more than 143,840 people across 17 different countries. Our 2020 funds were used in three grants to Charity Global, Inc, both of which only funded water and sanitation projects. Neither funded internal administration costs.

These three grants were:

  1. £605,677 granted for our 1H funding cycle to fund solutions like drilled wells, tap stands, rainwater harvesting and water filters in nine countries:

A. Central Africa n Republic

B. Ethiopia

C. India

D. Kenya

E. Madagascar

F. Malawi

G. Mozambique H. Nepal

I. Uganda

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

  1. £135,826 granted for our 2H funding cycle to fund solutions like drilled wells, tap stands, rainwater harvesting and water filters in nine countries:

A. Burkina Faso

B. Cambodia

C. Ethiopia

D. Ivory Coast

F. Mozambique

G. Niger

H. Uganda

A. Burkina Faso

B. Cambodia

C. Ethiopia

D. Ivory Coast

E. Malawi

F. Mozambique

G. Niger

H. Uganda

Leading on sustainability

Keeping water flowing is critical to our mission. In 2020, we granted additional funding to water project sustainability, specifically the development of comprehensive remote monitoring tools for water projects. These tools use cutting-edge IoT (Internet of Things) sensors and cloud computing technology to equip local leaders in the countries we work with real-time data on water system performance. These sensors are being designed and tested to advance the efficacy of the entire WASH sector.

In 2019, we raised £2,107,000 from one funder, specifically for research and development of this technology. During 2020, we granted £636,000 to Charity Global, Inc, to fund additional Research and Development at a specialized firm and actual production of the sensors . We expect to receive and grant the remainder for this purpose through 2022.

Reflecting on 2020's growth

We started 2020 with plans to continue our growth trajectory, with a focus on brand activation events to grow our supporter base.

However, the COVID-19 pandemic necessitated a shift in approach. Our priorities were to:

Ensure employee safety. We began working remotely in March 2020 and cancelled all travel and events. Empower local partners . Our local partners are the WASH experts in their communities. We launched a COVID Relief Fund to better support them in raising awareness of the pandemic, creating additional handwashing stations completing emergency repairs for health clinic and communities, with access to PPE. Remain efficient. In June, as many of our planned activities could no longer be completed, we reduced overhead costs through redundancies and a 10% pay decrease.

Grow online . We tested and invested in paid media advertising to successfully grow our donor base and continue funding clean water. This led to a 183% increase in Spring members, our monthly donors. This community collectively funded clean water for 22,400 people.

Plan for scale . Typically, our operational costs have been paid entirely by philanthropists. Recruiting this group requires events, face-to-face meetings and international travel. To ensure scalability in an uncertain environment, we expedited a decision to invest Gift Aid and communicated this to donors, encouraged those who are eligible to claim, and improved the experience on our website.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review

The Statement of Financial Activities is set out on page 13 of the financial statements and shows how the charity's incoming resources have been expended in the year ended 31 December 2020.

Total incoming resources amount to £2,935,299 (2019: £4,394,584), which comprise donations restricted in full to water projects and water sustainability of £1,369,171 (2019: £3,627,756), unrestricted donations of £972,321 (2019: £337,494) used to fund operations, donated services of £593,607 (2019: £429,191) and net investment income of £200 (2019: £143).

Resources expended on charitable activities amounted to £2,952,010 (2019: £2,960,721), of which £2,160,989 (2019: £2,165,834) was defrayed on making grants, £769,909 (2019: £767,823) incurred in pursuit of the charity's charitable objects and £21,112 (2019: £27,064) on governance costs.

The resulting deficit for the year was £16,711 (2019: surplus of £1,433,863).

The Statement of Financial position is set out on page 14 of the financial statements and shows the financial position of the charity at 31 December 2020.

Total assets less current liabilities amounted to £1,796,309 (2019: £1,813,020), which is represented by the closing balances on the unrestricted funds, share capital and restricted funds of £1,125,614, £1 and £670,694 respectively (2019: £350,557, £1 and £1,462,462 respectively).

charity: water is committed to using its resources in pursuit of its charitable objects. It is also committed to maintaining a level of reserves that is prudent to meet on-going liabilities, sufficient to ensure that all commitments can be met and to protect the long-term future of its operations. We depend on private donors, foundations and sponsors to cover everything from staff salaries to basic office systems to office rent and supplies. These donors are some of our most dedicated: their investment fuels our long-term mission, our ability to scale as an organisation and our mission to continue using 100% of public donations for water projects. At 31 December 2020, the charitable company had free reserves (as represented by unrestricted net current assets) amounting to £1,125,614. The trustees are satisfied that the current level of reserves are appropriate to its circumstances.

Grant-making policy

1. Public benefit requirement

The trustees will seek to satisfy themselves that each grant is made in furtherance of a charitable purpose that offers an identifiable benefit to the public or a significant section of the public, and that private benefit that may arise to any person or company as a result of a grant is incidental.

The trustees have considered, and will regularly refer to, the Charity Commission’s guidance on public benefit to ensure that the public benefit requirement is met.

The trustees do not anticipate any possibility for private benefit arising from their grant making, but shall be mindful of conflicts of interest or loyalty.

2. Objectives and strategy

The Charity has been established to undertake the specific purposes relating to improvement of water supplies and sanitation, with flexibility for the trustees to support any charitable purpose for the public benefit if they choose as set out in the Objects.

In seeking to further the Objects as effectively as possible, the trustees envisage that the Charity will work closely with Charity Global, Inc. to identify exclusively charitable projects capable of being supported for the public benefit, including to identify what projects are in particular need of funding and where the need is greatest.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Despite the Charity's intended close working relationship with Charity Global, Inc., the trustees are keenly aware of the importance of the Charity being operated independently of Charity Global, Inc. The trustees understand and acknowledge that:

A. under no circumstances may the trustees fetter their absolute discretion in all decision-making; and

B. all grants will be approved by the trustees, exercising their independent thought and bringing their personal skills and expertise to decision-making.

The trustees may take non-binding recommendations from donors as to charitable projects to be supported but shall not accept a gift that is restricted from a legal perspective without carefully considering whether the Charity can, and should, make a grant to support such restricted purposes.

3. Due Diligence

The trustees are responsible for ensuring that every grant is a proper application of the Charity’s assets and that it is in the best interests of the Charity to make the grant. They retain ultimate responsibility for the decision to award grants. Accordingly, the trustees will approve all grants collectively in compliance with the Charity's Articles of Association (whether in a meeting or in writing).

As there are no particular due diligence steps that the trustees are required to take (except in the case of payments abroad which are addressed below), it will be their policy to make whatever enquiries allow them to reasonably take a view that:

A. making the grant is in the best interests of the Charity; and

B. the grant will be used for purposes that fall within the Charity's Objects.

To assist their assessment of suitability, the trustees may seek some or all of the following information from proposed grantees:

A. a description of the purpose and activities for which the grant will be used;

B. a financial plan setting out how the grant will be used, including who will benefit, the timescale, and any other funding options the applicant may have;

i. its charity registration number, where applicable, or other documents establishing its status; and

ii. a copy of the organisation’s most recent financial report and accounts, where available.

The trustees may require further information when considering any application. A visit or interview may also be arranged in order to gain a greater feel for the proposed use of the grant.

4. The trustees’ criteria

There are many considerations for the trustees to take into account when evaluating whether a proposed grant is a suitable one for the Charity to make. The trustees will consider, as appropriate in the circumstances:

A. The amount of the proposed grant – is the grant size appropriate bearing in mind the Charity’s other proposals or obligations? Is the grant appropriate to the proposed grantee organisation’s need?

B. The proposed use of the grant – is it clear to the trustees what the grant will be used for and that it will be exclusively used for an eligible charitable purpose?

C. The nature and status of the grantee – is the grantee known to the trustees, for example as a ‘household name’ (eg Charity Global, Inc., trading as charity: water), or registered with any local regulators of non-profits, including the Charity Commission for England and Wales or similar regulator?

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

D. Is the proposed grantee financially sound? - The trustees should be confident that the grant will not be paid to an insolvent organisation;

E. Other risk factors – is the grantee based in a high-risk jurisdiction for such issues as corruption or terrorism?

F. Trustee involvement - Is the grant proposed to be made to any organisation in which one of the Charity’s trustees is involved? If yes, how?

G. Suitability of the project – is the project proposed an effective way of furthering the objects of the Charity? What is the intended impact of the project?

The trustees are not bound to consider every point listed above for each and every grant.

5. Grant conditions

The trustees may attach conditions to grants made by the Charity. These will vary depending on the individual circumstances and the recipient, with the intention that they are sufficient in each case to satisfy the trustees that the funds will be applied for the purposes for which they were given.

Where a grant is made to a UK registered charity, the trustees will:

A. identify the project to be funded by the grant, or that the grant is expendable for the grantee’s general charitable purposes; and

B. require acknowledgement of receipt of the grant.

Otherwise, the trustees will impose conditions on grants that are appropriate to the circumstances of the grant (with reference to section 'Payments abroad' below, if relevant), including for example:

A. a requirement that the grant be used for a specified project that is charitable under the law of England and Wales;

B. a requirement that reimbursement is made if funds are misused or the grant conditions are not complied with;

C. specific conditions to be met before the funding is made;

H. permission for the trustees to inspect any documents or premises should they wish to examine how funds are being used; and

I. a requirement that surplus funds be returned.

6. Payments abroad

In advancing the Charity's purposes, the trustees are likely to make payments outside the UK, particularly to Charity Global, Inc. in the USA, and understand that every grant that is made to an organisation established outside the UK will be a payment to an overseas body for the purposes of UK taxation.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees of the Charity will therefore approach each grant overseas so that they may be comfortable that the Charity can 'clearly demonstrate to the Commissioners for HMRC that it has taken steps that the Commissioners consider are reasonable in the circumstances to ensure that the payment is applied for charitable purposes under the law of England and Wale s'. The consequence of failing to take such steps could be loss of charitable tax relief in respect of income or gains equal to the amount of the grant in question, so the trustees have identified compliance as a priority.

The trustees will impose written conditions on the grantees of all overseas grants that are appropriate to the circumstances of the grant.

The trustees will aim, in relation to each grant, to have adequate records demonstrating the Charity’s knowledge of the overseas grantee, its previous relations with the overseas grantee and the past history of the overseas grantee. These records will additionally include the following, as appropriate:

The trustees will consider imposing more restrictive (and onerous) conditions on grantees on a risk and proportionality basis in particular circumstances.

The trustees have formulated this policy with the requirements of UK tax law on ‘non-charitable’ expenditure in mind, and having considered the Charity Commission’s publication Charities: how to manage risks when working internationally and the HMRC Guidance on Payments to overseas bodies.

The trustees may also need to consider requirements of the local jurisdiction into which the grant is being made since some jurisdictions restrict foreign funding, or require it to be channelled to particular governmentapproved organisations.

7. Record Keeping

The trustees will arrange for adequate records of all grants to be maintained. Such records will include any:

8. Review

This policy will be reviewed annually by the trustees, including a review of the Charity's position under the Common Reporting Standard.

Structure, governance and management

charity: water is a company limited by shares with company registration number 10377607 and we are governed by our Memorandum and Articles of Association. We are also a registered charity in accordance with the provisions of the Charities Act of 2011 with charity registation number 1169228.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Patrick Luke Beauchamp Valerie Donati Alexander Gordon Scott Harrison Samuel Lawson Johnston Onyeije Nwokorie Mara Klemich (Appointed 26 February 2020) Eniola Aluko (Appointed 11 March 2021)

All trustees are expected to identify their training needs and to take measures to ensure that these needs are met.

The Board may from time to time, appoint any person as a member of the Board either to fill a vacancy or by way of addition to the Board, subject to the provisions of the Articles of Association.

Our day to day activities were administered by Hannah Bellamy, Managing Director, who reports to the UK Board of trustees.

Charity Global, Inc., a US based charity, is the sole shareholder of Charity Global (UK) Limited.

Fundraising Statement

The Charity's fundraising activities include public appeals through paid media outlets, including the Charity's own website and social media, as well as focussing on existing relationships with a small number of individual donors and businesses. Any direct approaches by the Charity to members of the public are limited. The Charity has not engaged with any professional fundraisers to raise funds. No complaints were received in relation to the Charity's fundraising activities.

Plans for the Future

Our focus is on building a values-led brand, driven by a loyal supporter base who are passionate about creating a world where everyone has clean water. Specifically, in 2021 we plan to:

Grow donations for clean water by 40%, serving 65,000+ more people Continue to develop relationships and experiences that encourage predictable, repeatable donations Rebuild the team to serve these donors and promote our brand

Create partnerships with other brands and companies who are able to elevate our reach.

Risk Statement

We have assessed the major risks to which the charitable company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Principal risks and uncertainties

We recognise that there are risks inherent in delivering our charitable objectives, and we as trustees are responsible to identify, assess and manage risk and uncertainties​. We regularly assess risk and uncertainties, and review during our trustee meetings. Risks identified and mitigated include receiving fewer public donations to fund water projects and/or private donations to fund operations, damage to our reputation, and possible data protection outcomes. Throughout 2020, we reviewed risks to our organisation ​and assessed their possible impact. We confirm that with our strong organis​ational policies and processes in place, and our regular evaluation and documentation of possible risks and uncertainties, we have identified and mitigated any possible risks to the organisation in 2020 and for the foreseeable future. We will continue to identify and review any risks to the organisation and review in our trustee meetings to ensure all risks and uncertainties are properly mitigated.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)(CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of trustees' responsibilities

The trustees, who are also the directors of Charity Global (UK) Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The trustees' r eport was approved by the Board of Trustees.

Patrick Luke Beauchamp

Trustee Dated: 22 September 2021

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CHARITY GLOBAL (UK) LIMITED

Opinion

We have audited the financial statements of Charity Global (UK) Limited (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. 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 financial statements:

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 financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARITY GLOBAL (UK) LIMITED

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements.

The extent to which the audit was considered capable of detecting irregularities including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARITY GLOBAL (UK) LIMITED

Our approach was as follows:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter s

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying supplementary information in Schedule 1, 100% Model, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with ISAs (UK). In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARITY GLOBAL (UK) LIMITED

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Simou FCA (Senior Statutory Auditor) for and on behalf of Citroen Wells

28 September 2021

Chartered Accountants Statutory Auditor

Devonshire House 1 Devonshire Street London W1W 5DR

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations
3
1,565,928
1,369,171
Net i nvestment income/(loss)
4
150
50
Total income
1,566,078
1,369,221
Expenditure on:
Charitable activities
5
791,021
2,160,989
Net income/(expenditure) for the year/
Net movement in funds
775,057
(791,768)
Fund balances at 1 January 2020
350,558
1,462,462
Fund balances at 31 December 2020
1,125,615
670,694		 Total
2020
£
2,935,099
200
2,935,299
2,952,010
(16,711)
1,813,020
1,796,309		 Total
2019
£
4,394,441
143
4,394,584
2,960,721
1,433,863
379,157
1,813,020

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

Notes
Current assets
Trade and other receivables
12
Cash at bank and in hand
Current liabilities
14
Net current assets
Income funds
Restricted funds
16
Unrestricted funds
Share capital		 2020
2019
£
£
£
£
1,663,312
2,816,112
1,128,413
911,015
2,791,725
3,727,127
(995,416)
(1,914,107)
1,796,309
1,813,020
670,694
1,462,462
1,125,614
350,557
1
1
1,125,615
350,558
1,796,309
1,813,020

The financial statements were approved by the Trustees on 22 September 2021

Patrick Luke Beauchamp

Trustee

Company Registration No. 10377607

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
21
Investing activities
Net investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
£
217,198
200
200
-
217,398
911,015
1,128,413		 2019
£
£
30,862
143
143
-
31,005
880,010
911,015

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Charity Global (UK) Limited is a private company limited by shares incorporated in England and Wales. Charity Global (UK) Limited is also a registered charity in accordance with the Charities Act 2011, with charity registration number 1169228. The registered office is Devonshire House, 1 Devonshire Street, London, W1W 5DR.

The nature of the charitable company's operations and principal activities are set out in the Trustees’ Report.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charitable company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Donated services are recognised in income at their fair value when their economic benefit is probable and it can be measured reliably. Fair value is determined on the basis of the value of the gift to the charitable company. For example the amount the charitable company would be willing to pay in the open market for such services. A corresponding amount is recognised in expenditure.

Investment income is recognised on a receivable basis.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis.

Expenditure on charitable activities comprises expenses incurred in pursuance of the charitable company's principal activities.

VAT is charged against the expenditure heading for which it was incurred.

Governance costs, which are included in expenditure on charitable activities, are those incurred in the governance of the charitable company and its assets and are primarily associated with constitutional and statutory requirements.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks .

1.7 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and loans from the parent undertaking are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.8 Taxation

No liability arises as the charitable company's activities are exempt from corporation tax.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.9 Termination payments

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Donated Services

Included in donations and expenditure on charitable activities is an estimate for the costs incurred by Charity Global Inc, the parent charity, based in the USA. The estimate includes actual amounts incurred on professional services and travelling expenditure as well as US employees' best estimates of their time spent on UK charity matters.

Also included in donated services are consultancy services performed by third parties, on a pro-bono basis. In such cases the donated service has been measured and recognised as the third parties best estimate of the cost of the services provided.

Therefore there is an inevitable degree of judgement involved in calculating these estimates.

3 Donations

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
972,321
1,369,171
Donated services
593,607
-
1,565,928
1,369,171
For the year ended 31 December 2019
766,685
3,627,756		 Total
2020
£
2,341,492
593,607
2,935,099		 Total
2019
£
3,965,250
429,191
4,394,441
4,394,441

Donated services

Donated services consist of operating costs incurred by Charity Global, Inc. of £542,019 (2019: £273,391), who incurred these on behalf of the charitable company as they continue to set up their own operations and consultancy services, of £51,588 (2019: £155,800), provided by third parties to assist the entity in its charitable objectives.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Net i nvestment income/(loss)

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Net investment income/
(loss) 150 50 200 (79) 222 143

5 Charitable activities

Wages and salaries
Social security costs
Pension costs
Rent
Advertising, events and marketing
Insurance
Travelling
Recruitment fees
Printing, postage and stationery
Other expenses
Computer running costs
Service provider costs
Telephone
Subscriptions
Consultancy fees
Redundancy costs
Grant funding of activities (see note 6)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds		 2020
£
257,088
10,154
4,764
3,960
375,499
19,351
8,174
-
1,274
6,068
297
18,958
316
110
51,588
12,308
769,909
2,160,989
21,112
2,952,010
791,021
2,160,989
2,952,010		 2019
£
374,061
11,298
6,155
16,420
125,110
23,405
35,249
10,800
12,389
2,846
311
11,479
432
668
137,200
-
767,823
2,165,834
27,064
2,960,721
794,887
2,165,834
2,960,721

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6
Grants payable
Grants to institutions:
Charity Global, Inc.
7
Governance costs
Audit fees
Legal and professional
fees
Accountancy fees
Bank charges
8
Auditor's remuneration
The analysis of auditor's remuneration is as follows:
Fees payable to the charitable company's auditor:
Audit of the charitable company's annual accounts
Non-audit services
All other non-audit services		 2020
£
2,160,989
2020
£
11,730
3,567
5,052
763
21,112
2020
£
11,730
6,316		 2019
£
2,165,834
2019
£
9,720
7,601
8,186
1,557
27,064
2019
£
9,720
8,186

9 Trustees and key management personnel remuneration

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.

Included within donated services are costs incurred by Charity Global Inc in relation to salary and reimbursed expenditure for travel and subsistence, of £10,608 (2019: £14,153) for one of the UK trustees (2019: 1 trustee), who is an employee of the US parent. The UK charitable company made no payment in relation to these costs.

During the year, key management personnel received total compensation of £86,065 (2019: £87,791).

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Charitable activities and fundraising 2 3

Wages and salaries of £257,088 (2019: £347,061) (see note 5) includes £138,521 (2019: £247,000) which relates to employees of the parent charity, the costs of which formed part of donated services (see note 3).

The number of employees whose annual remuneration was £60,000 or more were:

£80,000 - £90,000
11
Ex gratia termination payments		 2020
Number
1		 2019
Number
1

During the year the charity terminated the employment of two employees. The decision was taken to make ex gratia payments equal to five weeks salary to the employees which amounted to £6,154 per employee. The total cost of £12,308 has been presented within note 5. No further amounts are due to either individual.

12 Other receivables

Amounts falling due within one year:
Pledges receivable
Amount due from parent undertaking
Other receivables
Prepayments
Amounts falling due after more than one year:
Pledges receivable
Total debtors		 2020
£
929,348
-
183,135
1,480
1,113,963
2020
£
549,349
1,663,312		 2019
£
2,014,047
5,559
11,062
3,869
2,034,537
2019
£
781,575
2,816,112

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Borrowings
2020 2019
£ £
Loans from parent undertaking 50,000 50,000
Payable within one year 50,000 50,000
14 Current liabilities
2020 2019
£ £
Borrowings 50,000 50,000
Grants payable 919,312 1,837,085
Other payables 11,605 6,009
Accruals and deferred income 14,499 21,013
995,416 1,914,107
15 Called up share capital
2020 2019
£ £
Issued and fully paid
1 Ordinary share of £1 1 1
16 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of
donations and grants held on trust for specific purposes:
Movement in funds
Balance at Incoming Resources Balance at
1 January resources expended 31 December
2020 2020
£ £ £ £
Water projects 1,462,462 1,369,221 (2,160,989)
670,694

100% of the money raised through charity: water's public fundraising campaigns is restricted to directly fund water projects in developing countries.

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Restricted
Share capital		 Total
funds funds
£ £
£		 £
Fund balances at 31 December 2020 are
represented by:
Current assets/(liabilities) 1,125,614 670,694
1		 1,796,309

18 Related party transactions

During the period under review, the charitable company had the following transactions with Charity Global, Inc., a US based charity and the 100% parent entity of Charity Global (UK) Limited:

Services donated by Charity Global, Inc.: £542,019 (2019: £273,391).

Grants payable in the period to Charity Global, Inc. amounted to £2,160,989 (2019: £2,165,834) of which £919,312 (2019: £1,837,085) was outstanding at the year end.

Charity Global Inc provided a loan of £50,000 to the charitable company in the 2018 year to help it fund its operations. This loan is repayable on demand, but it not required to be re-paid until such time as the charitable company can fund its own operating costs and has surplus resources to re-pay the loan.

As at the year end the charitable company was owed £nil by Charity Global, Inc. (2019: £5,559).

During the year, £8,391 (2019: £1,290) of donations were received from trustees.

19 Ultimate controlling party

The charitable company is 100% owned by Charity Global, Inc., a charitable company incorporated in New York, USA. It is a non-profit organisation bringing clean and safe drinking water to people in developing nations. Charity Global, Inc.'s place of business is 40 Worth Street, Suite 829, New York, NY 10013. The public can obtain the consolidated accounts that include the subsidiary charity's accounts from charity: water's website (https://www.charitywater.org/).

CHARITY GLOBAL (UK) LIMITED CHARITY: WATER NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20
Analysis of changes in net funds
At 1 January
2020
£
Cash at bank and in hand
911,015
Loans falling due within one year
(50,000)
861,015
21
Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Net investment income
Movements in working capital:
Decrease/(increase) in other receivables

(Decrease)/increase in trade and other payables
Cash generated from operations		 Cash flows At 31 December
2020
£
£
217,398
1,128,413
-
(50,000)
217,398
1,078,413
2020
2019
£
£
(16,711)
1,433,863
(200)
(143)
1,152,800
(2,596,753)
(918,691)
1,193,895
217,198
30,862