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2022-12-31-accounts

Stewardship American Donor Fund UK Limited

Trustees’ Report and Financial Statements

For the year ended 31 December 2022

REGISTERED CHARITY NUMBER: 1180678 COMPANY REGISTRATION NUMBER: 11532453

Charity Information, Trustees and Advisors

Stewardship American Donor Fund UK Limited is a Private Limited Company registered in England and Wales as a company (number 11532453) and registered with the Charity Commission for England and Wales (number 1180678).

Registered office

1 Lamb’s Passage, London EC1Y 8AB

Trustees

The following served as directors (collectively referred to as trustees) for the year ended 31 December 2022, and up to the date of approval of the accounts, except where stated otherwise:

Operating name

The Charity operates under the name of Stewardship America.

Auditor

Crowe UK LLP

55 Ludgate Hill, London EC4M 7JW

Banker

Lewis John Jackson

Gareth Eoin Burns

Lloyds Bank plc

Black Horse House, Progression Centre, 42 Mark Road, Hemel Hempstead HP2 7DW

John Stephen Riches

Solicitor

Paul Anton Imbaraj Nicholas (resigned 24 February 2022)

Withers LLP

20 Old Bailey, London EC4M 7AN

Company Secretary

Janie Oliver

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 2

Contents

Trustees’ Report including the Strategic Report
(incorporating The Directors’ Report) 4
Independent Auditor’s report 12
Statement of Financial Activities 15
Balance Sheet 16
Cash fow statement 17
Notes to the Financial Statements 18

3

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

Trustees’ Report for the year ended 31 December 2022

including the Strategic Report (incorporating The Directors’ Report)

Stewardship American Donor Fund UK Limited (the Charity) is registered with the Charity Commission in England and Wales (number 1180678) and is a Private Limited Company, with share capital, registered in England and Wales as a company (number 11532453).

It is governed by its Memorandum and Articles of Association and operates under the name of Stewardship America. The directors are collectively referred to as the trustees in this report.

The trustees present their report, incorporating the strategic report, together with the audited Financial Statements of the Charity for the year from 1 January 2022 to 31 December 2022.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

4

Strategic report

Objectives and Activities

The charitable objects of Stewardship America are to advance the Christian faith and to advance other charitable purposes.

Stewardship America carries out its objectives by encouraging and providing effective charitable giving solutions for those exposed to both the US and the UK tax systems, primarily US citizens who live in the UK. The Charity operates a dual-qualified donor advised fund, which allows qualifying donors to give with the benefit of both UK and US tax relief and then request donations to Christian and other charitable causes in the UK, the US and overseas.

Public benefit

Stewardship America provides public benefit by making charitable grants. The aim of the Charity is to encourage, support and develop the work of charities in the UK, the USA and elsewhere in the world by providing a range of services which ensure the most effective handling and distribution of charity funds.

When reviewing the Charity’s aims and objectives, in planning future activities and setting the grant making policy, the trustees paid due regard to the guidance issued by the Charity Commission, HM Revenue & Customs and the US Internal Revenue Services.

donations from TrustBridge Global Foundation have a special fee arrangement in place, and the fee charged on these donations is a significantly lower percentage than our standard fee for this service.

Despite our best efforts, the results for the year were not as we had hoped and did not reflect the growth that we anticipated. Therefore, towards the end of 2022 we began considering the future of the entity, keeping in mind how to get the best impact for the Kingdom and the needs of our donors.

Plans for 2023

We have not been able to achieve growth in the way we had hoped and planned when the entity was first established. It has also become evident that the Charity is not able to generate sufficient revenue to cover its costs in the coming year. The Charity will receive financial support from Stewardship Services (UKET) Limited to meet its obligations to end June 2023.

Therefore, we have reached the difficult decision that Stewardship America is not able to continue operating as part of the Stewardship Group past June 2023. We have explored all options and at the time of writing, we expect to be able to transfer the entity to an organisation we have been partnering with for many years in a mutually beneficial arrangement.

Achievements and Performance

As we emerged from the Covid-19 pandemic at the start of 2022, we focused resources and effort on growing Stewardship America to give it the best chance of success. In February 2022, we recruited an experienced Relationship Manager (employed by Stewardship Services (UKET) Limited, with a recharge being made to the Charity) who specifically focused on networking, building relationships and recruiting new clients. In addition, we focused our efforts on marketing, including social media campaigns and advertising in ‘The American’ magazine.

In 2022, Stewardship America received donations of £5.8m, an increase of 80% compared to the prior year (2021: £3.2m). On the face of it, this represents a very encouraging increase; however, the majority of this increase is a direct result of our partnership with TrustBridge Global Foundation, which began in the last quarter of 2020. As part of this partnership agreement,

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

5

Financial Review

Income

In 2022, income from donations was £5.8m (2021: £3.2m), of which £4.7m (81%) was from the TrustBridge Global Foundation. Also included in income is a grant of £80k from Stewardship Services (UKET) Limited.

Expenditure

Grants out totalled £6.1m (2021: £3.1m) and were principally related to donations received in the same period.

Unrestricted charitable expenditure for the year totalled £137k. This is an increase of 125% when compared to the prior reporting period. The increase was predominantly due to staff and marketing recharges from Stewardship Service (UKET) Ltd, as we aimed to raise awareness of the Charity.

Fund balances

Restricted fund balances at 31 December 2022 were £329k compared to £713k in the prior reporting period. These funds represent donor balances, where the donor has yet to recommend to Stewardship America where they wish the funds to be granted.

Unrestricted fund balances, which fund the running costs of the Charity, were £54k at 31 December 2022, reduced from £94k at the end of the prior year. The Charity had a £40k unrestricted deficit for the year.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

6

Structure, governance and management

Structure

The Charity is a wholly owned subsidiary of Stewardship American Donor Fund US Inc (SADF-US) a corporation registered in the US State of Delaware with file number 6991071 and a US 501(c)(3) public charity with Employer Identification Number (EIN) 83-2161455.

The Charity has made a US tax election to be treated as a part of SADF-US so that a donation to the Charity is treated as a gift to SADF-US for US tax purposes. Given the Charity’s UK charitable status, a donation to it may also be eligible for relief under UK tax legislation relating to gifts to charities.

Stewardship America is part of a family of charities alongside Stewardship Services (UKET) Limited, who provides the Charity with administrative and managerial services. The trustees also gratefully acknowledge the financial support provided by Stewardship Services (UKET) Limited. Details of related party transactions are included in note 6 and explanation of parent entity note 14.

Operations and decision making

Stewardship America does not have any employees of its own. Administrative services are provided by Stewardship Services (UKET) Limited on the terms of a tripartite agreement and under the supervision of the trustees of Stewardship America and SADF-US.

Stewardship America and SADF-US are permitted to use the ‘Stewardship’ brand under the terms of the tripartite agreement.

Stewardship America and SADF-US each have a majority of trustees who are independent of Stewardship Services (UKET) Limited, so that any conflicts of interest can be properly managed.

None of the trustees has an interest in the shares of the company or in any associated entity.

The trustees have taken out indemnity insurance cover.

Recruitment of Trustees

Under the articles of the Charity, the trustees of Stewardship America have the power to appoint new or additional trustees to its board subject to approval by Stewardship Services (UKET) Limited. Trustees are required to subscribe to the Charity’s Statement of Christian Beliefs. The induction and training programme for new trustees covers the vision, mission and values of the Charity and the roles and responsibilities of trustees under charity law.

Share capital

The Charity’s authorised share capital of one ordinary share of £1 was issued at par upon incorporation and is held by SADF-US.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

7

Risk management

The Charity’s risks are managed through a risk register which is reviewed by trustees. The principal risks faced by the Charity have been identified as:

----- Start of picture text -----
Risk title Risk description Management
Investment Ongoing volatile economic Liquidity is managed by the trustees and Executive Finance team
and Liquidity conditions have the potential to who monitor cash flow and risk, ensuring we use highly credit
Risk adversely impact the value of the rated organisations.
investments, particularly Gifts In in Any losses in gifted shares or the impact of foreign exchange are
the form of shares. borne by specific restricted funds and are therefore segregated
from the general funds of the Charity. When we undertake the sale
of gifted shares we ensuredonors are fully informed throughout
theprocess. Any subsequent gain or loss when the shares are sold
is reflected in the donor’s giving balance.
Reputational Reputational risk is the risk of an We continue to build and protect our standing by ensuring our
Risk adverse event resulting in damage values are embedded in our staff and external communications.
to our reputation, leading to lost We listen to and act on feedback, including complaints, to ensure
revenue or increased operating, we strive to deliver the best possible service to our customers.
capital or regulatory costs. We have compliance policies and programmes to assist with
We protect our standing and extensive risk-based due diligence procedures which seek to
reputation by being a sound and mitigate the risk of contentious gifts being accepted and our
trusted organisation, ensuring a grants being misapplied.
positive client experience whilst
complying with all legal and
regulatory requirements.
Maintain The USA requires the Charity to The ongoing embedding and monitoring agrowth strategy to
public charity achieve a broad spread of givers promote the service, with an aim to enhance awareness through
status in the within five years of initial registration appropriate networks, relational connections and media content.
US
to ensure it meets US public charity Deliberate investment in staff and resources to enhance the
status. The recent global external marketing of the service, with aims to increase our customer reach
events have negatively impacted and enable us to meet our US public charity status requirement
the Charity’s performance, resulting within 5 years of becoming registered as a public charity in the US
in a time constraint to achieve the (which was in 2018).
required results and to ensure the Year on year decrease of donors and donations is impacting the
public charity status is maintained. likelihood of meeting the US public charity status.
IT and Cyber In common with other organisations, There are ongoing security and resilienceenhancements to
Security Risk cyber-attacks remain a constant strengthen the IT systems and infrastructure within the Charity’s
threat to the integrity and availability service partner.
of our systems and data. We acknowledge that staff awareness is a key control and regular
training and testing is undertaken to ensure that they are aware of
their duty to protect our systems and data.
----- End of picture text -----

8

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

Grant making policy

The Charity supports cross-border tax effective giving by enabling donors liable for tax in both the UK and the USA to obtain tax relief in both countries on their charitable giving. Donors can request, but they may not direct, how the trustees distribute their donation. This may be to organisations carrying out charitable activities anywhere in the world.

Each grant request is reviewed having regard for grant making guidance issued by the Charity Commission, HM Revenue & Customs and the US Department of the Treasury and Internal RevenueService. If a donor’s request is not in accordance with issued guidance, then steps are taken to ensure that the funds are paid to an organisation with similar charitable objects.

The trustees seek feedback from the beneficiary charities on the use of grants received and achievements made to monitor the effective use of grants.

Funds received to support grant making are held as restricted funds pending distribution to beneficiary charities. Grants are only made based on funds currently held in donor balances and nogrants are awarded in anticipation of future income.

Going concern and Reserves

The Charity’s activities, together with its financial position and plans for its future development and performance, have been described in this report. The Charity’s reserve policy is to hold unrestricted reserves to cover running costs for 3 months. At 31 December 2022, unrestricted reserves were £54k, which exceeds 3 months’ worth of budgeted running costs (approximately £30k).

However, included in unrestricted reserves is the £80k grant received in December 2022 from Stewardship Services (UKET) Limited to fund the running costs of the entity to end June 2023. After end June 2023, Stewardship America will not receive further financial support from Stewardship Services (UKET Limited). Without this ongoing financial support, Stewardship America is not expected to have sufficient unrestricted reserves to fund it’s running costs.

The Stewardship Trustees have resolved to continue the provision of financial assistance until 30 June 2023 as they continue to finalise the transfer of the Charity to a new sponsor. As required by UK accounting standards, the trustees have prepared the financial statements on the basis that the company is a going concern though (as explained in note 1 of the financial statements) agree that a material uncertainty exists surrounding the timing and extent of any further financial support from the new sponsor following completion of the transfer and, therefore, the ability of the Charity to continue as a going concern.

9

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

Fundraising statement

Stewardship America is registered with the Fundraising Regulator. A Relationship Manager was hired into Stewardship Services (UKET) Limited with a focus to raise awareness of Stewardship America. While Stewardship America does provide marketing information, the aim of these documents is not to raise funds for its purposes but to promote its services in order to fulfil its objective.

No third-party professional was employed to engage in such fundraising activities during the period.

Stewardship America did not receive any formal complaints during the year in respect of any fundraising activities.

The costs of fundraising for Stewardship America in the reporting period was £26k.

Investment powers and policy

The trustees may invest giving account balances held at their discretion. Any resulting investment income or capital growth shall form part of its unrestricted funds. The trustees need to ensure investments are made in a diversified portfolio of assets that are suitable to risk and liquidity requirements. Ethical and sustainable investment approaches shall be applied where possible and appropriate, to limit exposure to companies with operations in areas that are contrary to the Christian faith.

For donors who wish to make a gift of shares, due diligence will be undertaken with ethical and risk considerations prior to accepting the gift. The gifted shares are usually sold promptly upon receipt with the realised net proceeds allocated to the donor’s giving account from which grants are made.

Related parties

Stewardship Services (UKET) Limited provides the Charity with administrative and managerial services. Details of the related parties and the transactions with these entities during the year are included in note 6 to the accounts.

Post balance sheet events

A decision was taken to transfer Stewardship American Donor Fund UK Ltd and its dual-qualified US-UK giving service to the International Generosity Foundation, a US public charity which is part of the Trustbridge Global Network. The transfer is expected to take place on or before 30 June 2023. Stewardship American Donor Fund Inc will be dissolved in due course.

Funds are held predominately in cash deposit accounts in both GBP and USD. A high level of liquidity is maintained to ensure grants can be made promptly at the request of donors. Money market deposit accounts may be used with counterparties with a credit rating of A-and above, for notice periods not exceeding 6 months.

For more significant giving account balances, the trustees may, at the request of the donor, invest the balance through nominated investment options. The financial gains and losses, including any interest or dividends (less any management fees and transaction costs) from the investments are allocated to the donor’s giving account from which grants are made. These investments are made at the trustees’ discretion with ongoing oversight.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 10

Statement of Trustees’ Responsibilities

Structure

The trustees are responsible for preparing the Strategic Report, the Trustees’ Report and the Financial Statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare Financial Statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period.

In preparing these Financial Statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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.

org.uk in accordance with legislation in the United Kingdom governing the preparation and dissemination of Financial Statements, which may vary from legislation in other jurisdictions. The trustees are responsible for the maintenance and integrity of the corporate and financial information relating to the Charitable Company included on that website. The trustees’ responsibility also extends to the ongoing integrity of the Financial Statements contained therein.

Auditor

Each person who is a trustee at the date of approval of this report confirms that:

1. so far as the trustees are aware, there is no relevant audit information of which the Charity’s auditor is unaware; and

2. the trustees have taken all the steps that he or she ought to have taken as a trustee in order to make himself or herself aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

A resolution to re-appoint auditors of the Charity and authorising the board to fix their remuneration will be submitted to the forthcoming Annual General Meeting.

Approved by the trustees on 15 June 2023 and signed on their behalf.

Lewis John Jackson

TRUSTEE

Financial Statements are published on the Stewardship Services (UKET) Limited website, www.stewardship.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

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Independent Auditor’s Report to the Members of Stewardship American Donor Fund Limited

Opinion

We have audited the Financial Statements of Stewardship American Donor Fund limited (the “charitable company”) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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

Emphasis of matter – Conclusions relating to going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in the financial statements concerning the basis of preparation of the financial statements.

Following the continuation of a challenging fundraising environment, trustees have concluded that it is no longer financially viable for the Charity to continue without ongoing financial assistance from the parent Charity, Stewardship Services (UKET) Limited. The Stewardship Trustees have resolved to continue the provision of financial assistance until 30 June 2023 as they continue to finalise the transfer of the Charity to a new sponsor. As required by UK accounting standards, the trustees have prepared the financial statements on the basis that the company is a going concern though (as explained in note 1 of the financial statements) agree that a material uncertainty exists surrounding the timing and extent of any further financial support from the new sponsor following completion of the transfer and, therefore, the ability of the Charity to continue as a going concern.

In auditing the financial statements, we have concluded that disclosures which explain that the company is a going concern are appropriate. Our opinion is not modified in respect of this matter.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. 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.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the Financial Statements and our auditor’s report thereon. 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

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 12

or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

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 light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the Trustees’ Report.

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 trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 13

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We identified and assessed the risks of material misstatement of the Financial Statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the Financial Statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related Financial Statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were fundraising regulations, taxation legislation and General Data Protection Regulation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the Financial Statements from irregularities, including fraud, to be within the timing and recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory

correspondence with the Charity Commission and reading regulatory reports and minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the Financial Statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the Financial Statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tina Allison

SENIOR STATUTORY AUDITOR

FOR AND ON BEHALF OF CROWE UK LLP STATUTORY AUDITOR LONDON

5 July 2023

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 14

Statement of Financial Activities

(incorporating the Income and Expenditure Account)

Notes 2022 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
INCOME FROM
Donations and legacies
2
Other income
3
Total income
EXPENDITURE ON
Raising funds
Grants
4
Charitable activities
5
Total expenditure
Net losses on investments
Net (expenditure) / income
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward		 137
3,102
3,239
-
-
-
121
5,715
5,836
2
35
37
123
5,750
5,873		 137
3,102
3,239
(13)
-
(13)
-
(3,143)
(3,143)
(61)
(13)
(74)
(26)
-
(26)
-
(6,132)
(6,132)
(137)
-
(137)
(163)
(6,132)
(6,295)		 (74)
(3,156)
(3,230)
-
(2)
(2)		 -
-
-
(40)
(384)
(424)		 63
(54)
9
63
(54)
9
31
767
798
(40)
(384)
(424)
94
713
807
54
329
383		 94
713
807

All transactions arise from continuing operations. All gains and losses are included above.

The notes on page 18 to page 24 form part of these Financial Statements.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

15

Balance Sheet

Company registration number: 11532453

Company registration number: 11532453
Notes 31 Dec 2022 31 Dec 2021
31 Dec 22
£’000		 31 Dec 21
£’000
CURRENT ASSETS
Debtors
7
Cash at bank and in hand
Total current assets
LIABILITIES
Creditors: Amounts falling due within one year
8
Total current liabilities
Net current assets
Total net assets
THE FUNDS OF THE CHARITY
Restricted funds
9,11
Unrestricted funds
9,11
Called up share capital
10
Total funds		 67
773
54
345
399 840
(33)
(16)
(16) (33)
383 807
383 807
713
94
-
329
54
-
383 807

Approved and authorised for issue by the Board of Trustees on 15 June 2023 and signed on its behalf.

Lewis John Jackson

TRUSTEE

The notes on page 18 to page 24 form part of these Financial Statements for the year ended 31 December 2022.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

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Consolidated Cash Flow Statement

----- Start of picture text -----
For the year ended 31 December 2022 2022 2021
£’000 £’000
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by / (used in) operating activities (428) 6
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends and interest from investments - -
- -
Net cash generated / (utilised) by investing activities
Change in cash and cash equivalents during the reporting period (428) 6
Cash and cash equivalents at the beginning of the reporting period 773 767
Cash and cash equivalents at the end of the reporting period 345 773
RECONCILIATION OF NET INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the reporting period (424) 9
Adjustments for:
Decrease in current asset investments - -
Dividends and interest from investments - -
Decrease / (increase) in debtors 13 (2)
Decrease in creditors (17) (1)
Net cash provided by / (used in) operating activities (428) 6
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank 345 773
Total cash and cash equivalents 345 773
ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS
At start of the Foreign At end of the
Cash flows exchange
period movements period
£’000 £’000 £’000 £’000
Cash 773 (465) 37 345
Total 773 (465) 37 345
----- End of picture text -----

The notes on page 18 to page 24 form part of these Financial Statements.

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

17

Notes to the financial statements

1

Accounting policies

The principal accounting policies and judgements used in the preparation of the Financial Statements are:

a. Basis of accounting

These Financial Statements have been prepared in accordance with applicable United Kingdom law and UK Generally Accepted Accounting Practice (UK GAAP), including FRS 102, (as issued by the Financial Reporting Council), the Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102‘), the Companies Act 2006 and the Charities SORP 2019 (FRS 102).

Stewardship American Donor Fund Limited is a UK Charitable Company incorporated in the UK and registered with the Charity Commission for England and Wales.

The Charity meets the definition of a public benefit entity under FRS 102.

b. Going concern

Following the continuation of a challenging fundraising environment, trustees have concluded that it is no longer financially viable for the Charity to continue without ongoing financial assistance from the parent Charity, Stewardship Services (UKET) Limited. The Stewardship Trustees have resolved to continue the provision of financial assistance until 30 June 2023 as they continue to finalise the transfer of the Charity to a new sponsor. The trustees have reviewed the financial position, plans, reserves and risk management of the Charity and have prepared the financial statements on the basis that the company is a going concern though agree that a material uncertainty exists surrounding the timing and extent of any further financial support from the new sponsor following completion of the transfer and, therefore, the ability of the Charity to continue as a going concern.

c. Income recognition

Donations and gifts are recognised in the statement of financial activities usually in the period they are received or, if appropriate, when any requested conditions have been met. Where a donation or gift is made with a valid Gift Aid declaration, the Gift Aid is recognised in the period in which the original donation or gift was made.

Non-cash gifts are recognised at their valuation on the date of the gift.

All other income is recognised on an accruals basis and included in the Statement of Financial Activities when the Charity is entitled to the income. This includes all earned investment income and fee income on services provided by the Charity.

d. Expenditure

18

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

1 ACCOUNTING POLICIES CONTINUED

expression of wishes, provided that Stewardship America has completed the appropriate due diligence and financial assessment checks on the charitable cause nominated. Where Stewardship America has followed a donor’s request and allocated funds to a recipient’s account, Stewardship America continues to have discretion to decline to make payment, if circumstances have changed between the allocation of funds and payment date. However, the trustees are of the view that in most cases this is unlikely to occur and therefore the accounts include amounts yet to be paid to the recipient as a liability.

e. Current asset investments

Current asset investments are assets held pending sale and are measured at their estimated net realisable value at the balance sheet date.

f. Debtors

Trade and other debtors are measured on the basis of their recoverable amount.

g. Money market deposits

Money market deposits are held as part of Stewardship America’s investment allocation of total assets. These are generally fixed term and notice deposits of up to one year but can also include instant access savings accounts which generate additional investment income and liquidity.

h. Cash at bank and in hand

Cash at bank and in hand is held to meet the day-to-day running costs of the Charity as they fall due.

i. Creditors

Creditors are amounts owed by the Charity. They are measured at the amount that the Charity expects to have to pay to settle the debt or pay for services or goods received.

j. Reserves

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STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

preferences the grant payments will be made. Until such a time the funds are held as restricted within Stewardship America’s accounts.

2 Donations

2022 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Gifts
Gift Aid tax
Gift from Stewardship Services
(UKET) Limited		 41
5,581
5,622		 27
2,703
2,730
-
399
399
110
-
110
-
134
134
80
-
80
121
5,715
5,836		 137
3,102
3,239
2022 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Exchange rate gains
4
Grants		 2
35
37		 -
-
-
2022 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Stewardship Services (UKET) Limited
Other
NUMBER OF GRANTS MADE
Stewardship Services (UKET) Limited
Other		 -
6,084
6,084		 -
3,122
3,122
-
21
21
-
48
48
-
6,132
6,132		 -
3,143
3,143
-
21
21
-
7
7
-
-
31
-
31
-
-
31
31		 -
28
28

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 20

5 Analysis of expenditure

2022 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Governance costs
7
-
7
Professional costs
130
-
130
Other costs
-
-
-
Exchange rate losses
-
-
-
137
-
137
NET INCOME FOR THE YEAR/PERIOD IS STATED AFTER CHARGING
Auditor’s remuneration: audit
7
-
7		 7
-
7		 11
-
11
49
-
49
-
-
-
1
13
14
130
-
130
-
-
-
-
-
-
137
-
137		 61
13
74
6
-
6

6

Related Party transactions

During the period Stewardship Services (UKET) Limited made an unrestricted grant of £80k to the Charity (2021: £110k) and recharged staff and support costs of £146k (2021: £40k).

Grants totalling £6.1m were made to Stewardship Services (UKET) Limited (2021: £3.1m).

The closing balance due to Stewardship Services (UKET) Limited at the year end was £14k (2021: £26k).

Gifts In from Trustbridge Global Foundation totalled £4.7m (2021: £0.5m). Grants totalling £48k ($60k) were made to TrustBridge Global Foundation to facilitate an onward grant to a church.

During the reporting period, no trustees received any remuneration or reimbursement of expenses relating to their duties as trustees.

7

Debtors: due within one year

7
Debtors: due within one year
31 Dec 2022 31 Dec 2021
£’000 £’000
Gift aid tax receivable
Prepayments and accrued income
Amounts due from Group undertakings		 31 50
17
-
14
9
54 67

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022 21

8 Creditors: amounts falling due within one year

31 Dec 2022 31 Dec 2021
£’000 £’000
Accruals and deferred income
Amounts owed to Group undertakings		 16 29
4
-
16 33

9 Analysis of charitable funds

9
Analysis of charitable funds
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Balance 1 January 2022
Income
Expenditure
Net losses on investments
Balance 31 December 2022		 94
713
807
123
5,750
5,873
(163)
(6,132)
(6,295)
-
(2)
(2)
54
329
383

Gifts received into Stewardship America Giving Accounts

Donors at some future date will request funds to be granted out to specific recipient causes. Upon approval of the request, the grant payment will be made. Until such a time the funds are held as restricted within Stewardship America’s Financial Statements.

Analysis of charitable funds – prior year

Analysis of charitable funds – prior year
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Balance 1 January 2021
Income
Expenditure
Balance 31 December 2021		 31
767
798
137
3,102
3,239
(74)
(3,156)
(3,230)
94
713
807

22

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

10 Shareholder’s funds

10
Shareholder’s funds
31 Dec 2022 31 Dec 2021
£ £
Authorised, allotted, called up and fully paid: 1 Ordinary share of £1 1 1

11 Analysis of net assets by fund

2022 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000		 Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total
Funds
£’000
Debtors
Cash at bank and in hand
Other creditors
Total net assets		 23
31
54		 16
51
67
101
672
773
(23)
(10)
(33)
38
307
345
(7)
(9)
(16)
54
329
383		 94
713
807

12 Indemnity insurances

Stewardship America has taken out indemnity insurance cover for trustees. Premiums due for the policies during the period totalled £3,360 (2021: £2,127).

13 Taxation

The trustees consider that Stewardship America meets the Charity tests set out in Part 1 Schedule 6 Finance Act 2010 and accordingly is potentially exempt from taxation in respect of income or capital gains within categories covered by 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. No tax charge arose in the period.

14 Parent entity

All of the Charity’s issued share capital is owned by Stewardship American Donor Fund US Inc.

The Charity’s trustees are appointed by its existing trustees subject to approval by Stewardship Services (UKET) Limited (UK registered charity number 234714). Stewardship American Donor Fund US Inc. is the Charity’s controlling entity and

23

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022

the smallest group into which the Charity is consolidated.

Stewardship American Donor Fund US Inc. is a US 501(c)(3) public charity recognised by the US Internal Revenue Service. It is incorporated in the State of Delaware and its headquarters are located at The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington (New Castle County), DE 19801, USA.

Three trustees, by virtue of the office they hold for Stewardship Services (UKET) Limited, are the members of Stewardship American Donor Fund US Inc. The appointment of additional members and the removal of members can be made by Stewardship Services (UKET) Ltd at any time. The consolidated accounts of Stewardship Services (UKET) Ltd, which under accounting guidelines includes the results of Stewardship America Donor Fund UK Limited and Stewardship America Donor Fund US Inc, can be obtained from their registered address at 1 Lamb’s Passage, London EC1Y 8AB.

24

STEWARDSHIP AMERICAN DONOR FUND LIMITED ANNUAL REPORT 2022