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2021-05-31-accounts

Company registration number: 10166996 Charity registration number: 1174610

THINK EQUAL

(A company limited by guarantee and registered charity)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2021

(A company limited by guarantee and registered charity)

THINK EQUAL

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 11
Independent examiner's report 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 28

THINK EQUAL

(A company limited by guarantee and registered charity)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MAY 2021

Trustees Mrs Francine Bates (resigned 6 November 2020)
Ms Leslee Udwin, Founder and Executive Chair (appointed 6 November 2020)
Mr Jacob Bier
Mrs V Bird (resigned 6 November 2020)
Mr K Bechir
Mrs B Issacs
Ms C Hardwick (appointed 6 November 2020)
Mr P Bier (appointed 6 November 2020)
Mr S Harvey (appointed 6 November 2020)
Ms E Goltz (appointed 7 May 2021)

Company registered number 10166996 Charity registered number 1174610 Registered office 74 Holland Park London W11 3SL Company secretary Leslee Udwin Chief executive officer Giulia D’Amico Independent Examiner MHA MacIntyre Hudson Chartered Accountants 2 London Wall Place London EC2Y 5AU

Page 1

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MAY 2021

The Trustees present their report and financial statements of the Charity for the year ended 31 May 2021. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)) and the Companies Act 2006.

Structure, Governance and Management

THINK EQUAL was founded in May 2016 registering as a company limited by guarantee in England and Wales, number 10166996. We are also registered with the Charity Commission number 1174610 since the 12th September 2017. We are governed by Articles of Association passed on 6th May 2016 and updated by special resolution on 1st August 2017.

The organisation is governed by the Board of Trustees following a governance review in 2017/18. The Trustees are also its Directors for the purposes of Company Law. The Board takes its obligation, to ensure all Trustees are aware of their duties and responsibilities, seriously and the Executive Chair ensures that these are discussed and understood by the Trustees as part of regular Board meetings.

Trustee appointment, recruitment and training

Trustees are recruited through personal recommendation or by open recruitment, considering relevant skills and their knowledge of/interest in the areas needed by the organisation. New Trustees are briefed comprehensively before joining, including individual meetings with the Chair and Senior Management, sharing of key documents such as the Articles of Association and further documentation on appointment such as recent Board Meeting minutes. New Trustees are appointed by Board Resolution.

The Trustees meet formally every couple of months with further ad hoc meetings throughout the year as required. The Trustees set the strategic direction of Think Equal and monitor and review operational and financial performance. The day-to-day running of the organisation is delegated to the Senior management staff, led by the Chief Executive Officer.

Objectives and Activities

The objects of the Charity as per its Articles of Association, are, for the public benefit: -

Page 2

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

THINK EQUAL calls for a system change in education to end the discriminatory mind set and cycle of violence across our world. We believe there is a missing subject in school curricula. We want governments to adopt our curriculum and its tangible tools mediating all aspects of experiential social and emotional learning. We ask them to mandate this as a new subject onto the compulsory curriculum of world schools from the earliest years when, according to neuroscientists, the child's attitudes and behaviors are modifiable.

Our vision is a safe, free and equal world.

Think Equal is a global not-for-profit charity . Our mission is to teach all children to love and respect others, free of discrimination, and teach them that all humans are equal and equally to be valued. We want to eliminate discrimination, disrespect, and violence from the next generation, and bring empathy, loving relationships, pro-social behaviours and attitudes in their place.

We have created the world’s first holistic comprehensive Social and Emotional Learning (SEL)

programme in 3 age-appropriate levels for 3–6-year-olds, comprising best practice, quality education, and tangible tools for inclusion, equality and wellbeing. It is a concrete, evidence-based, free, and scalable programme which delivers a powerful foundation in SEL, co-constructing prosocial neuropathways in the developing brains of early years children, to ensure positive life-long outcomes.

Achievements and performances

We work with Education Ministries and champions within government to ask them to take-up our programme from the earliest years in their countries. We have negotiated and signed MoU with:

Programmes: Pilots and Rollouts in detail

Australia:

The final RCT evaluation has been published by the Federation University and available under this link

https://federation.edu.au/news/articles/the-global-social-and-emotional-learning-program-helping-young-children

Page 3

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

Colombia

Because of the complications of COVID-19 lockdowns, the pilot programme has been adapted to fit the needs of caregivers in their homes, as children are not currently attending school. The Master Training with FEN pedagogical advisors and other stakeholders took place on the 25 and 26th of March. Training of teachers happened in May. Idiomatic adaptations of TE materials (lesson plans, resources, books) have been completed. This project involves both classroom kits and homekits, with 2,700 children receiving homekits and 125 classrooms. The project started in January 2021.

India:

We signed an agreement in October 2020 with the Piramal Foundation for Education Leadership (PFEL) to pilot Think Equal/Samanta in 500 sites, 100 per district, in five districts from five states, reaching approximately 17,500 children; we also signed an agreement with RKM to pilot Think Equal in a further 130 Early years sites in Rajasthan. This programme is being implemented on the ground by 'Kaivalya Education Foundation'. Funding has been provided by the Lifelines International Fund for Education to cover the cost of printing and training of Master Trainers; Piramal and RKM are responsible for all other costs. A batch of master trainers was trained in October 2020, who have further trained 500 anganwadi teachers in batches, across various states, thus far.

In May 2021, we commenced a Covid response project with Learning Curve in the State of Telangana. The project is currently ongoing and has reached 2,200 families.

Mexico:

Chihuahua – we partnered with Enseña Por Mexico (EPM) and UNICEF in Chihuahua to implement in 50 preschools (usually 3 classrooms each, reaching a total of approximately 5,000 children and 200 teachers). MOU has been signed and books have been printed. The program has started on Week 43 2020 with local arrangements and training. The program is currently running as planned.

Guerrero – a tri-partite agreement with World Vision and the Guerrero state government to implement in 400 schools (200 indigenous and 200 non-indigenous). The training of Master Trainers was conducted in August and the project officially launched on the 25[th of] August 2020. Books were delivered on Oct 26, 2020 and have been distributed on Nov 3 with an official event hosted by the Governor of Guerrero. The program is currently running as planned.

South Africa

The Think Equal programme and movement has been greatly welcomed and supported in the Eastern Cape province of South Africa. This is particularly encouraging considering the past 17 months have been unprecedently challenging and uncertain within the education sector due to the COVID-19 pandemic. The need for Think Equal has in fact never been more critical with isolation, economic insecurity and increased exposure to trauma and grief, meaning that Covid-19 has amplified and deepened the already existing societal issues of mental health crises, increased violence and emotional dysregulation as well as worsened social skills. As such, Think Equal is not simply a preventative programme designed to specifically tackle these issues before they emerge, it also acts as a direct Covid response which increasing number of parents, educators and government officials are recognising is vital as part of our global recovery, making South Africa a golden example of what can be achieved with our initiative. This call and need for Think Equal in South Africa is reflected in the cooperation we have received from people on the ground during the events of the past six months. As we embarked in conversations with the Eastern Cape Department of Education (ECDOE) Superintendent General Themba Kojana, we found an inspiring ally to our work who was determined to help us roll out our programme to the children of the province. This was confirmed in the official signing of a letter of acceptance of the Think Equal programme to all Grade R classes in the Eastern Cape, September 2020. A MOU was signed and the program officially kicked off in late Spring 2021.

Page 4

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

United Kingdom

Tower Hamlets 2020 - We have been funded for a pilot in Tower Hamlets from the Nelumbo Stiftung, and have developed a relationship with the Integrated Early Years Service at Tower Hamlets Council in preparation. Over the summer we provided 40 Classroom kits to registered childminders in the borough who look after vulnerable children and children of key workers. We additionally provided 40 Home kits (5 printed books and home activities) for the children to take home with them.

Additionally, 34 classrooms in Tower Hamlets so far have signed letters of commitment to teach Think Equal for the 2020-2021 academic year, and we have scheduled an information webinar to increase interest and get more sites signed up. The training was conducted online in October, materials have been distributed and teaching will begin immediately. We will continue to encourage full saturation in the Borough of Tower Hamlets.

Tunisia

Together with Unicef, the Ministry of Women and Families and the Ministry of Education, we launched a programme for children and parents in libraries across the country.

Product Development

Page 5

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

Online Training Platform

In the past Think Equal used to train in person or through live video calls that span across two days where local master trainers are hired to talk teachers through the programme and mission. In 2020 and this past year, full inperson training has not been viable for two major reasons:

  1. Covid-19 Pandemic. For physical safety reasons we could not justify in-person trainings in order to protect the staff and the teachers. We also, of course, have to follow the legal requirements given by each country and therefore gatherings were not possible during the peak of the Covid-19 Pandemic.

  2. Think Equal has grown exponentially, to a rate in which in person training for each teacher has not been feasible. Think Equal has grown to a point in which teachers from all around the world are wanting to train and obtain our materials. Therefore, in order to keep up with the demand, in-person training was not possible.

The Online Training Platform has therefore been a Covid-response allowing us to deal most effectively with the external and uncontrollable experiences of lockdowns, safety measures and legal requirements of respective nations. The training platform has opened up the possibility of reaching teachers across the world, whilst simultaneously putting health and safety first.

The Online Training Platform has also been necessary due to our increased growth in countries and schools. The platform has been and will continue to be responsible for facilitating an incredibly large volume of teachers. Since the training went live we have reached numbers that otherwise we would never have reached in such a short amount of time from all over the world.

The training platform has been utilised in all three languages: English, Spanish and isiXhosa, and is in the process of being translated into one more - Hindi, so that we may reach many more teachers across India. The training platform consists of 5 hours of online training which is broken down into self-paced easy to navigate modules. The training takes users on a fascinating journey to give an insight into the origins of Think Equal, the positive science behind high-quality early childhood Social and Emotional Learning, the purpose and core values that anchor the programme, detail about the content of the materials, advice from teachers and actors in regard to the implementation of Think Equal and, of course, comments from our global patrons and supporters, some of whom include, the late Sir Ken Robinson, Meryl Streep, Chimamanda Adichie, Dame Harriet Walter and Dame Helen Mirren.

Page 6

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

The modules also include best practice resources, programmes, and pedagogical influences which are explored in concise yet informative depth to allow you a truly holistic and comprehensive understanding of the Think Equal programme. Every module has been carefully designed to offer engaging, educational and enlightening material for users to be trained in Think Equal. After every video users are required to answer a few multiple-choice questions, as an extra quality assurance. Once the training is complete teachers automatically have access to a personalised Think Equal Certificate

TE New Corporate Visual Identity

Thanks to the probono support of WPP, in August 2020 TE has started the development of the new visual identity concept. The concept suggested by WPP has worked around the development of key messages that could facilitate the future further development of the website. The website was completed in June 2021.

Page 7

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

Additionally, graphic elements have been introduced into the new Think Equal CVI:

Think Equal new website

Page 8

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

Think Equal Crowdfunding Campaign on Just Giving

In late Spring 2021, Think Equal launched its first digital crowdfunding campaign to support the expansion of the project launched the past September 2020 in the State of Rajasthan (India). The campaign achieved its goal and the project will be implemented as of early 2022.

Easy Peasy

We are piloting a partnership and have uploaded our 6 weeks giveaway program in their app for the UK and Australia.

Page 9

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

Financial Review

For the year ended 31 May 2021, the Charity received unrestricted income of £175,777 (2020: £551,050) and restricted income of £348,178 (2020: £178,531). Unrestricted expenditure totaled £176,839 (2020: £459,969) and restricted expenditure was £335,055 (2020: £149,773). Total funds carried forward for the Charity at 31 May 2021 were unrestricted reserves £19,176 (2020: £20,238) and restricted reserves of £74,157 (2020: £61,034).

Reserves Policy

The Trustees aim to maintain a level of reserves that will protect the Charity against any dramatic fall in unrestricted income or unexpected rise in expenditure. A Reserves Policy has been developed with a commitment to build up unrestricted reserves sufficient to cover three months of operating costs over the next financial year. The Trustees are aware that it will take a couple of years to reach these levels but are budgeting an incremental amount every year.

Remuneration of Key Management Personnel

Think Equal Finance & Resource committee sets the pay structure of the key management personnel and recommends to the Board of Trustees. Decisions made by the finance committee require ratification by the Board. The Finance & Resources committee considers following context to provide proposal to the board for decision making:

▪ The organisation’s current financial position

▪ Any existing or emerging risks that may impact on the organisation’s financial stability

▪ Comparing the competitiveness of THINK EQUAL salary banding against credible independent market benchmarks

▪ Public and Third-Sector pay awards and any related sensitivities

▪ Individual and Team performance

▪ Past-performance benchmarks

▪ The significance of employees in delivering THINK EQUAL’s charitable vision and purpose

The Committee will consider the reflections and recommendations of the Executive Chair, during the formal appraisal of the key management personnel against agreed objectives to determine the remuneration package. Discussion will take place within the meeting and any conclusions drawn will be presented to full Board for ratification and will be minuted in line with data protection laws.

The Chair will provide feedback to the key management personnel and will write formally to set out any decisions made Inclusion of pay within published documentation (e.g. Annual Accounts/Reports) will be made to ensure legal compliance.

Principal risks and uncertainties

The Trustees have reviewed the risks to which a small and start-up Charity with few employees is exposed. A Risk Register has been developed and is used to identify and monitor these risks by the Board on a regular basis.

The charity is wholly dependent on regular and consistent funding in order to carry out its work for children aged 3-6 years old. Whilst our fundraising activity results in a spread of income from broad range of sources, some of which is longer terms, the impact of sudden and major loss in income would impose a significant risk in our ability to maintain our activities. To mitigate the risk, we are focusing in longer term funding and creating reserves to provide for sudden loss of income. Further risks which have been identified include allegations of impropriety of our personnel and more usual risk associated with natural catastrophes such as fire, flood, communications failure, data breach, etc. (most of which are covered by our insurance). Risks are reviewed regularly.

Public Benefit

In setting-up our programme of work, we have given regard to the Charity Commission's general advice on public benefit and the Trustees always ensure that the work we fund is in line with the Charity's aims and objectives as stated in the Articles of Association. All activities have been undertaken to further the Charity’s purpose for the public benefit.

Page 10

THINK EQUAL (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2021

Fundraising

The Charity does not outsource any fundraising activities to professional fundraisers or commercial participators.

Future Plans

At the time of writing this report we are coming out of the impact of the Covid-19 and further uncertainties around the pandemic, we are continuing our plan to scale our programme in our focus countries. We have adopted our work to address challenges posed by the pandemic and developed online resources and training to reach to children and families. We have launched our new website and have strengthen core staff team and programme team.

We have focused on raising unrestricted funding to build free reserve increasing to cover 3 months of expenditure to provide financial stability to the organisation. We have been successful in raising unrestricted funding in the following year 2021-2022. We have developed new corporate identity and will continue our work with our new corporate identity.

We will continue to focus our target countries; United Kingdom, India, Colombia, South Africa, Mexico, Australia, Tunisia, North Macedonia, United State of America. We will be working on new TV series to launch in Botswana. We are developing the material for refugee context.

We will continue to monitor and review our strategy to reach as many children as possible to see they get the missing SEL subject, developed by Think Equal, in their school curriculum.

This report has been prepared in accordance with the small companies’ provisions of the Companies Act 2006.

16 February 2022

This report was approved by the Board on……………………… and signed on its behalf by:

................................................

Ms Leslee Udwin Date: 16 February 2022

Page 11

THINK EQUAL

(A company limited by guarantee and registered charity)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MAY 2021

Independent examiner's report to the Trustees of Think Equal ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 May 2021.

Responsibilities and basis of report

As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: Dated: 17/02/2022

Stuart McKay BSc FCA DChA

MHA MacIntyre Hudson, 6th Floor, 2 London Wall Place, London, EC2Y 5AU

Page 12

(A company limited by guarantee and registered charity)

THINK EQUAL

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MAY 2021

Note
Income from:
Donations and grants
3
Charitable activities
4
Total income
Expenditure on:
Costs of raising funds
Charitable activities
5
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
104,147
71,630
175,777
26,374
150,465
176,839
(1,062)
20,238
(1,062)
19,176		 Restricted
funds
2021
£
313,800
34,378
348,178
-
335,055
335,055
13,123
61,034
13,123
74,157		 Total
funds
2021
£
417,947
106,008
523,955
26,374
485,520
511,894
12,061
81,272
12,061
93,333		 Total
funds
2020
£
532,065
197,516
729,581
-
609,742
609,742
119,839
(38,567)
119,839
81,272

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

All income and expenditure derive from continuing activities.

The notes on pages 16 to 28 form part of these financial statements.

Page 13

THINK EQUAL (A company limited by guarantee and registered charity) REGISTERED NUMBER: 10166996

BALANCE SHEET AS AT 31 MAY 2021

Note
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
Net current assets
Total net assets
Charity funds
Restricted funds
12
Unrestricted funds
12
Total funds		 26,876
193,182
220,058
(126,725)		 2021
£
93,333
93,333
74,157
19,176
93,333		 109,302
112,621
221,923
(140,651)		 2020
£
81,272
81,272
61,034
20,238
81,272

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Ms Leslee Udwin Executive Chair Date: 16 February 2022

The notes on pages 16 to 28 form part of these financial statements.

Page 14

THINK EQUAL

(A company limited by guarantee and registered charity)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2021

Note
Cash flows from operating activities
Net cash used in operating activities
14
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
15
The notes on pages 16 to 28 form part of these financial statements		 2021
£
80,561
80,561
112,621
193,182		 2020
£
45,958
45,958
66,663
112,621

Page 15

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

1. General information

Think Equal is a company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 1174610) and Registrar of Companies (Company Registration Number 10166996) in England and Wales.

In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the Charity information on page 1 of these financial statements.

The nature of the Charity’s operations and principal activities are to promote equality and diversity and to promote human rights.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) and the Companies Act 2006.

Think Equal meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the Charity and are rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.2 Going concern

The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget, forecast future cash flows and the impact of any subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impact on the company’s operations, with projects being delayed. In response to the COVID-19 pandemic, the Trustees have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.

Based on these assessments and having regard to the resources available to the entity, the Trustees have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 16

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 17

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

2. Accounting policies (continued)

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities

Liabilities 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.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.9 Financial instruments

The Charity holds only basic financial instruments. The financial assets and liabilities of the Charity are as follows:

Debtors - Trade debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 10. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and is measured at face value, as presented on the Balance Sheet.

Financial liabilities - Trade creditors, other creditors and accruals are basic financial instruments, and are measured at amortised cost as detailed in Note 11. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

2.10 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.11 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 18

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

3. Income from donations and grants

Unrestricted
funds
2021
£
Donations
47,366
Grants
56,781
Total 2021
104,147
Unrestricted
funds
2020
£
Donations
102,815
Grants
316,035
Total 2020
418,850
Income from charitable activities
Unrestricted
funds
2021
£
Promotion of equality, diversity and human rights
71,630
Unrestricted
funds
2020
£
Promotion of equality, diversity and human rights
132,200		 Restricted
funds
2021
£
-
313,800
313,800
Restricted
funds
2020
£
19,421
93,794
113,215
Restricted
funds
2021
£
34,378
Restricted
funds
2020
£
65,316		 Total
funds
2021
£
47,366
370,581
417,947
Total
funds
2020
£
122,236
409,829
532,065
Total
funds
2021
£
106,008
Total
funds
2020
£
197,516

4. Income from charitable activities

Page 19

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

5. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Charitable activities
150,465
Unrestricted
funds
2020
£
Charitable activities
459,969		 Restricted
funds
2021
£
335,055
Restricted
funds
2020
£
149,773		 Total
funds
2021
£
485,520
Total
funds
2020
£
609,742

6. Analysis of expenditure by activities

Charitable activities
Charitable activities		 Activities
undertaken
directly
2021
£
438,925
Activities
undertaken
directly
2020
£
550,003		 Support
costs
2021
£
46,595
Support
costs
2020
£
59,739		 Total
funds
2021
£
485,520
Total
funds
2020
£
609,742

Page 20

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

6. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Curriculum
In-Country work
Sri Lanka
Consultants
UK Travel
Partners Payments
Animation & Digitisation		 Total
funds
2021
£
121,180
137,448
2,455
-
126,323
2,904
-
48,615
438,925		 Total
funds
2020
£
108,564
74,003
6,881
1,484
168,822
40,526
149,723
-
550,003

Analysis of support costs

Insurance and legal expenses
Website and IT
Office&supplies
Governance costs
Marketing and promotion
Exchange gain or loss
Recruitment Expenses		 Total
funds
2021
£
46,595
5,315
10,563
22,970
3,780
-
868
3,099		 Total
funds
2020
£
4,131
6,729
27,570
7,025
7,259
7,025
-
59,739

Page 21

(A company limited by guarantee and registered charity)

THINK EQUAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

7. Governance costs

Independent examiners remuneration
Other accounting costs		 2021
£
3,660
120
3,780		 2020
£
3,540
3,485
7,025

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
115,309
4,225
1,646
121,180		 2020
£
81,820
22,366
4,378
108,564

The average number of persons employed by the Charity during the year was as follows:

2021 2020
No. No.
Employees 5 4

No employee received remuneration amounting to more than £60,000 in either year.

Key Management Personnel comprised the Trustees and the Chief Executive Officer, a consultant to the Charity. Their remuneration for the year amounted to £92,278 (2020 - £34,813).

9. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 May 2021, Trustee expenses of £1,944 were reimbursed to 1 Trustee in relation to travel and software costs (2020 - £NIL) .

Page 22

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

10. Debtors

Due within one year
Trade debtors
Other debtors
Grants receivable		 2021
£
9,249
5,859
11,768
26,876		 2020
£
2,456
5,859
100,987
109,302

11. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 June 2020
Resources deferred during the year
Amounts released from previous periods		 2021
£
4,551
2,785
263
119,126
126,725
2021
£
120,987
115,466
(120,987)
115,466		 2020
£
12,932
1,790
1,402
124,527
140,651
2020
£
102,985
120,987
(102,985)
120,987

Deferred income relates to grant funding which has received in the current year but for which entitlement will be met in future periods.

Page 23

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

12. Statement of funds

Statement of funds - current year

Balance at 1
June 2020
£
Unrestricted funds
General Funds
20,238
Restricted funds
GMSP - India pilot
9,358
The Lightbulb Trust
3,764
Spain Programme
1,354
Mexico Programme
26,508
Canadian for a Civil Society
1,179
Old Possums's Practical Trust
26
South Africa Programme
11,226
UBS Optimus Foundation
7,619
Lifelines International Fund for Education
-
Nelumbo Stiftung - UK Programme
-
Online resources development
-
GMSP
-
61,034
Total of funds
81,272		 Income
£
Expenditure
£
Balance at
31 May 2021
£
175,777
(176,839)
19,176
-
(9,358)
-
4,038
(7,802)
-
-
(738)
616
72,717
(93,423)
5,802
2,107
(920)
2,366
-
(26)
-
41,528
(48,124)
4,630
-
(7,619)
-
63,000
(42,968)
20,032
82,500
(55,695)
26,805
64,788
(50,882)
13,906
17,500
(17,500)
-
348,178
(335,055)
74,157
523,955
(511,894)
93,333		 Income
£
Expenditure
£
Balance at
31 May 2021
£
175,777
(176,839)
19,176
-
(9,358)
-
4,038
(7,802)
-
-
(738)
616
72,717
(93,423)
5,802
2,107
(920)
2,366
-
(26)
-
41,528
(48,124)
4,630
-
(7,619)
-
63,000
(42,968)
20,032
82,500
(55,695)
26,805
64,788
(50,882)
13,906
17,500
(17,500)
-
348,178
(335,055)
74,157
523,955
(511,894)
93,333
-
-
616
5,802
2,366
-
4,630
-
20,032
26,805
13,906
-
74,157
93,333

Page 24

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

12. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Restricted funds
GMSP - COO salary
Ford Foundation - social and
emotionallearning
GMSP - India pilot
GMSP - Fundraiser salary
The Lightbulb Trust
Spain Programme
Mexico Programme
Canadian for a Civil Society
Old Possums's Practical Trust
South Africa Programme
UBS Optimus Foundation
UBS Optimus 2
Total of funds		 Balance at
1 June 2019
£
(70,843)
1,680
9,230
7,000
4,800
-
-
-
-
26
1,921
7,619
-
32,276
(38,567)		 Income
£
551,050
-
-
16,725
-
25,000
1,354
40,293
4,724
24,655
20,815
-
44,965
178,531
729,581		 Expenditure
£
(459,969)
(1,680)
(9,230)
(14,367)
(4,800)
(21,236)
-
(13,785)
(3,545)
(24,655)
(11,510)
-
(44,965)
(149,773)
(609,742)		 Balance at
31 May 2020
£
20,238
-
-
9,358
-
3,764
1,354
26,508
1,179
26
11,226
7,619
-
61,034
81,272

Page 25

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

12. Statement of funds (continued)

GMSP - India pilot

God My Silent Partner provided a grant for the work of Think Equal in India. The work was done in India as Samanta.

The Lightbulb Trust

The Lightbulb Trust provided a grant to support the integration of Think Equal resources with the EasyPeasy organisation in the UK.

Spain Programme

A donation was received from Fundación CEDE - Confederación Española de Directivos for running the training for the Spain progamme.

Mexico Programme

This fund represents grants and donations received from Think Equal USA, Lorenzo Marsical and Fundacion Sertull A.C. to run the Think Equal programme in the Gurrerro and Chuhuahua Districts of Mexico.

Canadian for a Civil Society

A grant was provided by Canadian for a Civil Society to translate Think Equal books and resources in to the French language.

South Africa Programme

A grant was received from First 4 Women to deliver the Think Equal programme in the Eastern Cape region of South Africa in partnership with the Ntataise organisation based in South Africa. Other grants were also provided by the Bertha Foundation and Lubner Family for the same programme.

UBS - Pilot Programme

UBS Optimus provided a grant in order to deliver Think Equal pilot programme in Sri Lanka, Botswana, Kenya, Argentina and Canada, in a joint bid with Open Society Institute Foundation.

Lifelines International Fund for Education

A grant was provided by the Lifeline International Fund for Education to deliver the Think Equal programme in the Rajasthan state of India.

- Nelumbo Stiftung UK Programme

A grant was provided by Nelumbo Stiftung to deliver the Think Equal programme in the London Borough of Tower Hamlets.

Online resources development

This fund represents the grant provided by Think Equal USA to develop online training development for teacher training and the digitalisation of Think Equal books and resources.

GMSP

This grant was provided GMSP to cover the staff costs of the Programme Manager based in the UK office.

Page 26

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

13. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Current assets
83,783
Creditors due within one year
(126,725)
Difference
62,118
Total
19,176
Analysis of net assets between funds - prior year
Unrestricted
funds
2020
£
Current assets
160,889
Creditors due within one year
(140,651)
Total
20,238		 Restricted
funds
2021
£
136,275
-
(62,118)
74,157
Restricted
funds
2020
£
61,034
-
61,034		 Total
funds
2021
£
220,058
(126,725)
-
93,333
Total
funds
2020
£
221,923
(140,651)
81,272

14. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Decrease/(increase) in debtors
Decrease in creditors
Net cash provided by operating activities		 2021
£
12,061
82,426
(13,926)
80,561		 2020
£
119,839
(70,085)
(3,796)
45,958

Page 27

THINK EQUAL

(A company limited by guarantee and registered charity)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

15. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents
Analysis of changes in net debt
Cash at bank and in hand		 At 1 June
2020
£
112,621
112,621		 2021
£
193,182
193,182
Cash flows
£
80,561
80,561		 2020
£
112,621
112,621
At 31 May
2021
£
193,182
193,182

16. Analysis of changes in net debt

17. Related party transactions

Leslee Udwin, the Founder and CEO, lent THINK EQUAL money before it was financially independent and self-financing. Once the organisation was up-and-running and had the funds, a retrospective loan agreement was put in place. THINK EQUAL has repaid Leslee these expenses according to the schedule in the signed agreement to the value of £Nil in the current year (2020: £23,000), leaving a balance of £NIL (2020: £Nil) within creditors.

Leslee Udwin, the Founder and CEO, also used money from her company Assassin Film to cover expenses before THINK EQUAL was set-up as an organisation. Once the organisation was up-andrunning and had the funds, a retrospective loan agreement was put in place. THINK EQUAL has repaid Assassin Films these expenses according to the schedule in the signed agreement to the value of £Nil in the current year (2020: £11,389), leaving a balance of £NIL (2020: £Nil) within creditors.

Leslee Udwin, the Founder and CEO, paid expenses relating to Think Equal business on her travels and meetings for the Charity to the value of £1,944 (2020: £Nil) and these expenses are required to be reimbursed. An outstanding balance of £Nil (2020: £1,053) is within creditors.

Emil, Son of Leslee Udwin, Founder and CEO, was appointed as a freelance personal assistant to the CEO. Emil has been paid fees as per the organisation's policy of £Nil (2020: £5,270).

In 2019/20, Maya, daughter of Leslee Udwin, Founder and CEO, was contracted to write a book for the organisation and has been paid a salary as per the organisation's policy of £Nil (2020: £400).

Page 28