Companies House 5RIGHTS FOUNDATION SRights Foundation ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Company RegiStra￿n Number 11271356 {England and Wales) Charity Registration Number 1178581 *JE)AYZ3QX* 041CI912024 COMPANIES H¢WSE #216 RIGHTS FOUNDATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Reference and administrative detai15 Indap•nd•ntAuditorfs R•port Statementof Financial Aclivities 11 Balance sI￿t 12 statement of cash flows 13 N¢)tes to tho Finan¢lal Ststemènts 14 SRIGHTS FOUNDATION TRUSTEES. REPORT (CONTINUED) R THEYEAR ENDED 31 MARCH 24 Dr Amani Atrx)u-Zek Anna Maria Corazza Biklt (Appointed- 29 January 2024) anuel Costes￿- Honorary T￿aSurer Elizabeth Denham CBE Barones5 He￿na Kennedy ac. (Resigned 29 January 2024} Baroness Beeban K￿rOn OBE- Chair Dr Ansgar Koene Rhiannon Lawson (R&8igned- 24 July 20231 Dr Toweja Nyirenda Je￿- vicevCh8ir" {Resigned- 24 July 2023} Sir Peter Wanless CB. Shoshana Zuboff Oorothy Gordon (ApP￿nted 29 January 2024} Mikio Lxani (Appointed 29 January 2024) "Members of(&)vemance aThJ Remuneration cc￿mittee Registered office 14 FovAer Road Lothn NI 2EP Charity registration number (England and Wale51 1178581 Company registration number 11271356 Auditor Buzzacott LLP 130 Wood Strèet Lon(knn EC2V 6DL Bankers Lloyds Bank 7 Carter Street Uttoxeter Staffordshre ST14 8HD 5RIGHTS FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Introduction The Iru5tees present their slalutory rewrt l(KJetherwilh the finanaal statements of 5Rights Foundation for the year ended 31 March 2024. The report. which u)nslilutes a Iruslees, reporl for the purposes of charity legislation and a d1￿CtOrS. report for the purp)ses of company legislatton. com￿leS with Chari￿$ consblulw, and has been prepared in accordance with Part 8 of Ihe Charities Act 2011 A￿UntI￿j and Reporting ty Charities: Statement of Recommended Practice. The finanGial slalements have been prepared in B￿rdancE with the acojuntiry poliryes sel out on pages 14 10 16 of the attached financial stste[T￿nts and comply with the Charity's Arb"cles ol As50cialion, aPF4icable laws and Ac£ounlirNJ and ReFX)rtiThJ by Charitie5". Statement of Recommended Practice applicable to charities preparing their financial ststements in aC￿rdan￿ wth the FInar￿la1 Reporting Stsndard applicable in the Uniled Kingdom {FRS 102). Objects and Public Benefit The Charity's objectives are sel out in ts Artides of Asslxlat￿Th. Ithich the organtsation is established and suppotts the Charity's mission to make the OMJitsl enwmnment ffit thikjren and thik1￿. The trustees have referred to the guidance contsined in the Charity Commission's general guidance on public benefit and advice for charilies of an approwate size when rewewn9 Ch8riWs objectives and in planning its aclivilies. To further SRighls' charitable oty'ects for public benefit. all work is directed towards understanding and pr(Nnoling the welkbeing of children and young peotAe, by workiw v*ith others lo ensure Ihal the digital wironmenl observes the rights and priwleges of childhL￿d. SRights FoundatiC￿ achieves public benefit for the population as a whole by adv(￿kn.￿g for fair legisbtion. regulation, standards and lechnical controls Ihat uphold children's rights in the dMJit4 world. Our achievements in the year We achieved remarkable milestones during the year 2023r24, significanty expandiw the breadth and Sfxjpe of our work globally arKI investing in streamliniry, professK)nalizaticm, and partnerships. UK advocacy A key focus of our UK vfijrk was strer¥Jthenry and supportw the pa&sage oflhe Online Safety Bringing together 39 charities and supported by the Bereaved Pa￿ntS for Online Safety, our alliance for thild online safety generated extensive publK 3warerEss aNI media attenlion. fosleriThJ a valuable dialogue around the Act. Consequendy. our sleadfast advoracy InflUen￿d the bill's p￿S￿$ns. se￿ring a priority for children's safety and welfare. Following its passage. we have shifted our foojs and that of the alliance to supporting implernentstion by Ofcom through a robust Child Safety Duties Code of PracticE. In addition. we worked lo ensure the review of the Data Bill w)uld rot undermine chihjren's established rights. as well as tffing in omised new accEss lo dats Prowsions in the case of the death of a chifvj. International advo¢a¢y At the level of the European Union, we successfulty ensu￿ a raft of EU and W￿cleS ￿fleCted and implemented children's ryJh15, m051 importanuy the Digital Serwces Act. As Obsefvers to the Council of Europe Commtttee on Al, we successfulty supported the inclusion of safeguards for children in the workj's first intemational Al Treaty- 5Righls led an intemational CIMI soaety coalition which Secu￿ strong polikncal commitment for corporale responsibility for safety and privacy by deS￿￿n in an UN General Assembty ResolutTron. We supported the Afn'can to draft and approve a ￿￿y￿d4eadiry Child Online Safety and Empowemwbt Policy. 5Rights also supported regulators and worked with partners for the inlr(MJuctw)n of legislatson ts chiklren's safety and privacy in the US, Argenb'na and Indonega. Youth engagement The views and vol￿S of chihjren and young pecyle are central to all of5Rights' Adapting aThJ scaling up r Youlh Engage￿nI Progtamme to malch ow increa&rwJly inlemat#)nal scope oflwrk was a priority over the year. Our partnership wth the Gifted YcNffig Generat￿ Safer Intemet Day in February 2023 kick started a gkjbal conversation series, whith has since matured into 8 prOgr￿me of webin8ts bn"ngiThJ in the perspectives of 5RIGHTS FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR ThEYEAR ENDED 1 MARCH 2024 chldren from arourhj the wodd, which are reflected n our policy [x)sit￿n$. ￿Py1S. and communical#)ns outwt. Our young ambassadors parti￿pated in nurnerous gatherings and policy evenls linduding in Brussels, Geneva and Buenos Aires). Within the framework of the O￿lIa1 Fubjres Commission, we invofved children and young people in the Cc￿e$lgn of Playful by De5igTr8. a tool intended lo redefine digital play opportunilies for children. Research 5R￿hIS has continued to deliver pioneering research, i￿luding through the estsblishmenl of a permanent joint research ￿ntre wlh the London Schcd of Eu)rrt)mics- the Digtsl Futures for Children ￿ntre. 5Righls updated and rwublished our ground-breaking ￿port"01$rUpIed Childhcth" the cost of persuaswe design"" published a rxjmparats've legal analysis of the Online Safety Ad's proWS￿nS for thIld￿n. a report on best practices lo input into the implementa1￿￿ of the Digital SeMC£S Act and a simiL3r report for the Online Safety Act. The new DFC published its first reF4Jrt. on the Best Interests of the Chikj in the DKJital Environrrtnl. Compllan Our compliance work covered support lo regulators with enforcement. work on lechnical standards, aTrJ incieased engagement with industry- tech companies. Professional associations, and investors. In the UK we ¢onlinued to work for Ihe rotrMJst implemenlalion and enforomenl ol the Age Appropriate Design Code by the ICO. Induding by hjghlighting positive changes and remaining gaps utx)n Ihe 2nd anniversary of the law. and working di￿¢￿ wilh the gaming pla￿orni Poki to redesmjn their Servi￿ in compliance with the We supported CEN£ENELEC through a pre-stsnd8rdIsati￿ agreerr*nl for an Age Appropriate Des*Jn of Serwce FrarT)ework, worked wth the IEEE lo deliver a starKlard on Age A￿u[ancE and Nwth the Dutch Minislry of Interior to develop a Child Rights Impact Assessment Framework. We supported an investor Resoluti￿ at the Mela Annual General Assembty. Plans for 2024125 Dernand for our work and support ujntinues lo grow exF(￿entIalty. We believe we are al a key rnomenl ol opportunity, where our aim of making designing wilh ¢hikJren in mind a gkjbal industry norm. is wrthin reach within the coming decade. We plan over the coming year to maintain our very hMJh level of prc*Jucliv7ty and impact, and work lo scale up our work across all pillars-frw research and youth engagement to advcfacy. technical work and support for compliance- globally. We expect lo work more ir￿depth on Al and education teChno￿9y, among others. Resulls and financial position A summary of the period's results can be fouThJ on page 11 of Ihe accoL¢nts. The yearfs total irwme reached £2.033.265 a rna￿e￿ rise from £1,469,940 in 2022r23. This income was largely driven by donations and grants. supplemented slightty by bank inleresL Our yearly expenditu￿ amounted to £1.379.533 a decrease from £1,795,993 in 2022123. This entire amountwas directed towards support]"ng the tharitable operalk)ns of 5Rights Foundats"on. At the conclusion of the year. we have otsined a designated fund of £333.000 for committed actmties in advocacy. research. and accnuntablty. Funding All our funding is received as grants ordonations. We do not ergage in direct fundraising activities with the wblic and are not regISte￿d with the Fundraising Regulator. We folk￿ best practi￿ in data prolectK)n when pr¢xe55ing donatK)ns, rEver sharirwj dats extemal organisatiorts. We also ensure our supporters and do[￿r$ have the flexibility to adjust their communication preferences at any poinl. We handle our fundraisirrfJ inlemally wilhoul the use of professional furvJr8i5er5. We a￿ c￿MMitted to addressing arKI investigating any cDncerns about our fundraising practices, aiming lo learn from each experienc£ to enhanr£ wr performance. In the fiscal year 2023124, we (Jid not receive any CoM￿alntS regarding our fundraising melh¢)Js. We closely monitor a range of factors that could Influenc* wr financi81 fulvre. These encompass macro considerations like Ihe overall economic. wjlitical. and scoal landscape. as well as micro cDnsideraiions like our ability and prepa￿dnesS lo raise funds. Reserves policy 5RIGHTS FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THEYEAR ENDED 31 MA Our Iruslees have evaluated ts sum that 5Rohts Foundation needs to maintsin in reserve to assure financial sustsinability. In developing our reserves policy, we look into 8c¢ount the necessity for reserves. the possible effects of extemal factors beyond our control, the level of reserves deemed necessary by the trustees. the strategy for reaching the desire(J level of ￿seNe5. and the approach lo rTr)nilor and review ￿th the policy and actual reserves. The FoUndat￿n requi￿ reseNes to en$￿￿ operat￿nal continuity during linw ol er£>nomic and S￿al volatility. to manage the ebbs and flows of funding cydes, and to suslain primary acliwlies as we transition be￿een projects. Whenever feasiNe, a surplus of reseNes allows the Found8tic¥) to invest in new strategic inllialives. We are carrwng forward a general reserve fund of £1.189.5(X) into the folowng year lan wicrease trom £535,768 in 2022123). Given the Pfevailing c1rvjmstan￿5. the truslees have opted to continue a prudent approach and have approved the reserves policy to retain a minimum three rmnths of operaling costs (excluding fund5 already allocated for fuTrJed o)mmilments and designated fvnds for ongoing work) unlil al least the end of the current financjal year. The operational costs for three r￿nthS in the year 2024125 are estimated to be £530.000. This policy will undergo regular rewews. The additsonal retained reserves will allow 5Rights lo prog¥ess wth the five- year strategy which will be implemented starting in 2024125. Risk Management Al the SRighls Foundation. we underpin our Operat￿nS with strategie risk management. enabling us lo navigate the challenges we face as a charity. Our trustees. conscientr"c￿sIY fulfilling their iesponsikn.lilies, eng8ge in the continuous identification and assessment of strategic and operatbonal r￿(s. Through structured risk assessment actices and regular bi-annual risk reviews. we focus on siqnificant calegories: govemance. extemal, financial. and operational risks. Our proactive approach ensures Ihe effectiveness of our strategies and systems. enabling us lo cx)ntrol arKJ minwnise sKJnifiL>nl risks. PrirrApal risk5 and mibgations Govemance Risks: Wth a ¢￿T￿nitment lo mitigate risks ass(Kiated wth govemance, we've made consKlerable headway bydrve￿tyn9 our tx)ard through the recruitment of new trustees and the appointment of a Vice-chair. This strategic reinforcemenl of our governan￿ structu￿, coupled wilh Ihe creatson of governance committee, alk)ws us lo aldress any potential Ixwfflids of interest among trustees and ensures a ihorough risk management process. Operational Ri5ks'. we￿ p￿pOSn1ed two ¢)perational risk5 that Could potentially impact our pr(xJucliMty - potential misuse of funds or excessive spendiNJ. and increased staff lumover. We've implemented slrategic interventions to prevenl ltr*se iisks from impeding our 0pgrnll￿)$, ensuring the continuity and efficaw of our work. Financtal Suslainabilily. The finanual 5ustsinabifrty of our operations remains 3 primary focus of our risk mitigation efforts. We￿e culb'valed strow relationships with our cu￿ent funder5, allowrvj us to optimise our bLJdgel. However, to safeguard our operallor￿ and facilitste p)5itive change on a global sca￿, diversifying our lunding Sour￿ is a strategic imperatNe. With the guidance of our Chair. we're implementing an effiGienl funding plan aimed at securing new. suslainable SoUr￿S of funding. Structure• governance and management The Charity and Company is govemed by Artides of Asscoabon. was incorporated as a company limiled by aranlee on 22 Marth 2018, and registered as a thanty on 31 May 2018. The govemance of 5Rights FounLlalion is overseen by the b￿rd of trustees. New trustees are invited onto the t(Jard by Ihe Ch8ir and trustees and on recommendat￿)￿ from irmluslry, NGO and olher contacts. They are genefftlly individuals who bring specific high4evel skills and cL)ntacts lo complement, support and admse. New Iruslees undergo a CL)mprehensive induction prcgramme to ensure they Can contribute effectively lo their roles as trLTrslees. The board meets four times each yEar and guides the strdlegiG d4reGtvJn of the Charity. 5Righls vicfrchair leads the Govemance arKI Remuneration Comrnrttee which makes recommendations lo the ix)¥d on matters of govemance and HR. recruilrrEnt and nomination of trustees: rewew5 govemance arrangements and policies,. resolve disputes or complaints,. ￿MUneratiOn decisions for senior staff and advise on matter5 reLating to human resour￿. 5RIGHTS FOUNDATION TRUSTEES. REPORTICONTINUED) FOR THEYEAR ENDED 31 MARCH 2024 Decisions made by staff are made according lo the levels of ￿e￿gated authority defined in the organisalion's poliaes and prLKedures and actording lo rrt any significant doubts that m*Jhl arise. In conclusion, the Trustees have a reasonable ex[￿CtatiOn that the Foundation has adequate resources to continue ts activities for the foreseeatle future, thus they o)nlinue to adopt the going cDncem basis in preparing the annual ffinawal ststewents. Incomè recognition Oonations have been credited lo the slalement of fina￿la1 activities on an accruals basis. Revenue grants are credrted to the Statemenl of Financial Aclivilies ISOFAI when the charity is cxjnsidered to have entsllemenl lo the assets. it is probable that the resour￿ will ￿ recETved, and the rtL)nelary v81ue of income can be meayjred with suffiuent reliabilty. Grants have been 1Th￿￿ded either as irKome from xtrvitses in furtherance of the charity's objecbves where Ihese amount to support for SperAf￿ activi1￿S and services. or as donalions where the money 15 given in response lo an appeal or with grealer freedom of use. for example Mon1￿ for core funding. Expenditure rewnition Liabilities are recognised as expenditure as s￿n as there is a legal ￿ construclNe obtigation committing Ihe char¢ty to make a payinenl lo a Ihird party. it 15 probable that a transfer of economic benefi15 wll be required in settlement and the amount of the 0￿]gation can be [r￿aSured reliabfry. All expenditure is aCc￿nted foron an accruals basis. Expenditure CAxwsts of the cnsts of charilable activit￿S. This incknes all costs 8550Ci3ted with furthering Ihe ch8ritable purposes of the charity.. direct and indirect expendrture on Ihe charity's children's dyital rights. All¢¢alion of Support and governance costs Support costs, represent indired Qtharitsb￿ expenditure. In order lo cary OLrt primary purposes of the charity it is necessary lo provide support such as general management, information technology. communications. insurance and olher office SUPFQrt as well as g¢)Vernan￿ ofthe tharity. These cost5 are allocated tselween actmties they a￿ supwrting on Ihe basis of direct staff o)sts. Expenditure is al￿ated to each actmty on a direct basis, or by allocation based on an estimate of the time spent, by each member of staff on each acw or on an estimale of Ihe proportion of Costs relating to that activity. 15 15 5RIGHTS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 2. ACCOUNTING POLICIES (continued) Forelgn exchange drfferen Foreign ujrrency transactions are translated into sterling at the rates ruliryJ when they occuffed. Foreign currency monetary assets and liabilities are translated at the rates rulir¥J al the balants sheet date. Any differences are taken to the Statement of Finanaal Activities. Taxation The company is a charity wthin the meaniNJ of Para 1 Schedule 6 Finance Act 2010. According￿ the company is exempl from laxalKJfb in respect of income or cat%tal gains within calewries covered by Chapter 3 of Part 11 of the Co)poration Tax Act 2010 or Section 256 of ihe TaxalK)n of Chargeable Gains Act 1992. to the extent that such income or gains are applied exdusivety to Charitab￿ purposes. PeTr5ions The charity is part of an 0cojpat￿)nal pen&on scheme. ¥h￿h is a defined contribution Scheme, the assets of which are hekl separately from those of the charity in an independentty administered fund. The cost of contributions payable by the charity lo the scheme is ctharged to the income and exr*nditure account as incurred. Debtors Debtors are recognised at their setllement am0￿1. less anyprovisitin for non4ecoverydbility. Prep8yments are valued at the anK)unt prepahl. Cash at bank and in hand Cash al bank and in hand represents acCO￿ts and instruments that are available on demand or have a maturity of less than three nyjnlhs from the date of acquisition. Creditors and provisions Creditors arKI prowsi¢)ns are recognised when there is an obligation at the balance sheet dale as a result of a past event, it 15 probable that a transfer of economic benefit wll be required in settbement, and the amount of the settlement can be estimated reliably. Credit￿S and provisions are recojnised at the nKJunt th8 charity antiapat&8 il wdl pay to setde the debt. Fund strudure Unrestricted funds are availabte to spend on activities thal further any of the purposes of the charity. Designaled funds are unrestricted funds of ihe charity which the trustees have decided al their discretion to set aside to use for a speaft wrr*)se. Restri¢tad fvnds are funds that can onty be used for partKuEar resth.cted purrM)ses wthin the objects of the charity. Reslllclion5 atise when 5peofied by the fvnderldonor or when fiJnds are raised for particular reslrided purposes. Flnanclal Instruments The charity onty hokls basic finanaal instruments as defined in FRS 102. The finantial assets and rinanaal liabilrties of the charity and their measurernent basis are as follows.. Financial assets- trade and other debtots are basic financial instruments and we debt instruments measured al amortised cost. Prepayments are not ffinan￿al instruments. Cash 21 bank-classffied as a basi financjal irthmenl arwj is measured al face value. Finanual liabilits'es-accnjats and olher creditors are financial ￿trurnents. and are rneasu￿d al amortised cost. 16 16 5RIGHTS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR ThE YEAR ENDED AAAR 3. INCOME FROM GRANTS AND DONATIONS Unrestrict8d R•slrictsd Fund5 Total Funds 2024 Total Funds 2023 2024 Donat￿trns Grants 5.952 1.456.891 5,952 2.(109,437 552,546 1,467,516 1.462,843 2,015,389 1,468,516 In the yearto 31 March 2023, grants totallir¥J £130,226 were restrthd. wlh the balance of all other grants and donations being ￿restricted. 4. EXPENDrfuRE CURRENT YEAR Direct Support Total 2024 Charilthe Acliwbes Raising furKIs Supporl costs 516.884 31.723 70.235 485.091 1,4S4 274.146 324,467 19,914 (344,381) 1,326,442 53,091 618,842 760.691 1,379,533 PRIOR YEAR Staff Total 2023 costs costs Charitable Athvlties Support c¥)sts 548,340 65,472 854.107 328,074 393.546 {393,546J 1,795,993 613,812 1, 182,181 1, 795,993 Oetails of support ujsts are given in Note 5. 5. SUPPORT COSTS 2024 2023 GovemancE rJJsts'. Audit fee forthe year (including VAn UnderacLrual of prKJr yearaudit fee 12,900 9.240 375 Other support ¢￿ts Staff costs Stsff relaled costs Office and &Yminlstra￿n 70,235 175,950 84,3 65,472 t87,294 131. 165 344,381 393,546 17 17 SRIGHTS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) R THE YEAR EN 1 MARCH 2024 6. NET INCOME FOR THE YEAR This is ststed after chargiry: 2024 2023 A￿lit0￿$ remuneralKJn lexdLbJing VAn Operating lease charge 10.750 7.700 7. EPAPLOYEE AND KEY MANAGEMENT PERSONNEL The key management personnel of the Charity conww Ihe trustees ("Direc￿. for the purF¥Jses of the Companies Acll and sen￿)r Management Team. The totsl at￿Unts paid in respect of the key man8gement personnel of the Charity (induding emphyerfs Naiional Insurance Contrib￿lon5 and employers pension CLJnlributh"ons} We￿ £249,012 {2023'. £234.168}. None of the Iruslees (of any persons connecled with them) re￿Ned any remunerdtion during the year or the previous year. During the year. two trustees were reimbursed expenses totalling £22212023.. £17.378 to three Trustees). Reimbursed costs induded travel aThJ accowthation incurred while perfomiing direct activities on behalf of Ihe Charity- 2024 2023 The aggregate payrdl costs were.. Wages and sa￿r Soual security costs Employer pension ￿ltribUtionS 539,468 5T,204 22,170 542, 131 53,105 18.576 618,842 613,812 The number of employees eaming £60.0￿ in the year or more (exdusive of emF4oyer pensions and employer National Insura￿ ttJnlributM)ns} was: 2024 No. 2023 £80,C(M> £￿,1x(l £100.CQ(k £110,000 £120.(*JO- £130.000 Particulars of employees: The average number of Staff er￿lOYed bythe Charity thJrirMJ the firwKial year amoLtnled to". 2024 2023 102 11.0 18 18 5RIGHTS FOVNDATION NOTES TO THE FINANCIAL STATEMENTS (Co￿NuED} FOR THE YEAR ENDED 31 MARCH 2￿24 8. DEBTORS 2024 2023 Prepayments Accrued incnrr 15,664 8.871 67,094 353,664 T5,965 9. CREDITORS: amounts falllng nvard 868.768 868, 768 21 21