Annual Report and Accounts 

Year Ended 31 December 2023 

Registered Charity Numbers: 1181318 and SC050579 



Environmental Funders Network 

**Contents of the Financial Statements for the Year Ended 31 December 2023** 

**Page** Report of the Trustees 1 to 18 Independent Auditor’s Report 19 to 22 Statement of Financial Activities 23 Balance Sheet 24 Statement of Cash Flows 25 Notes to the Financial Statements 26 to 33 



Environmental Funders Network 

## **Report of the Trustees for the Year Ended 31 December 2023** 

The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of 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) (effective 1 January 2019). 

## **OBJECTIVES AND ACTIVITIES** 

## **Our mission and vision** 

Environmental Funders Network (‘EFN’) aims to increase the levels of philanthropic support for environmental causes and to improve its overall effectiveness. 

Our vision is of a world where people and planet thrive. 

## **Our activities and goals** 

- We are a network of, and for, funders and advisors with an interest in the environment, supporting the whole philanthropic ecosystem, from individual donors and private foundations to intermediaries, pooled funds, and philanthropy and wealth advisors. 

- We also support those working on and fundraising for environmental issues. 

- We create connections between people funding or working on environmental issues, and bolster their agency, ambition, and effectiveness. 

- We are UK-based, with a UK and international outlook. 

We have three goals, or workstreams, aligned with our mission: 

**1. Expanding environmental philanthropy** (encouraging new donors to support environmental causes, and established donors to increase their giving) 

**2. Improving the effectiveness of environmental philanthropy** 

**3. Supporting those that do environmental work to be more effective** 

## **Our work** 

We use several approaches within each pillar of our work: 

- Research to understand patterns of grant making, gaps, and the priorities and needs of the sector 

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- Convening to create, build and strengthen relationships between funders, between environmental groups, and between funders and environmental groups 

- Publications and other products to inform, inspire and motivate funders and the wider sector 

- Informational talks, workshops, field trips and retreats to input from a range of experts and practitioners 

We aim to provide leadership in our programming and push boundaries, where we feel necessary. 

## **The objects of the charity** 

The object of the Environmental Funders Network is the promotion of the effective use of resources for charitable purposes by charitable and non-charitable bodies in the Environmental Sector, being the part of the voluntary sector concerned with the conservation, protection and improvement of the physical and natural environment, for the benefit of the public by: 

- a. liaising with, researching and acting as a forum for the exchange of information between organisations working in the Environmental Sector, in order to identify how the sector might better achieve charitable purposes in conservation, protection and improvement of the physical and natural environment, including but not limited to identifying funding gaps and gaps in service provision in the sector; 

- b. providing advice and information to existing and potential funders of charities and non-charitable bodies working in the Environmental Sector to encourage them to increase their funding and to provide funding in a way which increases the effective application of funding for charitable purposes by the Environmental Sector; 

- c. providing charities working in the Environmental Sector with strategic and fundraising advice; and 

- d. such other means as the charity trustees shall from time to time think fit. 

## **Public benefit** 

EFN's trustees have given due regard to the guidance issued by the Charity Commission on public benefit. They consider that EFN’s activities and achievements, outlined in this report, demonstrate considerable benefit to the environmental philanthropic sector, both in making it more effective and expanding it (encouraging new donors to support environmental causes, and established donors to increase their giving). In addition, EFN's work has supported those working on and fundraising for environmental issues to be more effective. By helping to ensure that environmental work is better resourced and supported, EFN provides clear public benefit to all. 

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## **ACHIEVEMENT AND PERFORMANCE** 

## **Main achievements of the charity during the year** 

EFN’s work is divided into three strands.  We have outlined our work in each one below: 

## _**Workstream One: Expanding environmental philanthropy**_ 

We focus on two areas of work to bring about the changes we want to create among funders not yet supporting the environment or doing so at a very low level – inspiring them to act and helping them develop the sense of agency to do so. 

We raise awareness of the need for environmental philanthropy and its catalytic power and help funders who are not yet supporting the environment to see how environmental issues connect to the issues they already focus on. We also advise and support new donors, often in partnership with other networks, and particularly focusing on intersections between the environment and other social issues. 

_‘If all thematic areas had network organisations like EFN, philanthropy would be transformed.’ - EFN supporter_ 

_In 2023, this strand of work involved the following activities:_ 

**Big Give Green Match Fund:** In 2021, EFN and the Big Give launched the annual **Green Match Fund** , a campaign to raise donations for environmental causes from members of the public and raise awareness of the need for more funding to support environmental charities. Many of our members, as well as other individuals, foundations and companies, provide the match funding that makes the campaign possible. The campaign is building in momentum, raising £1.8 million for 112 charities in 2021, £2.3 million for 146 charities in 2022, £4.3 million for 178 charities in 2023 and over £6m in 2024 – a total of nearly £15m in four years. 

**Arts for Life** is our series run in collaboration with the Arts Funders Group to explore how funders can support the arts, culture and entertainment sectors to inspire action on the climate and nature crisis and to reimagine the world we live in. Activities to date have included online briefings and in-person events incorporating design, music, photography and poetry. We have created a list of organisations working at the arts and environment intersection and are exploring the possibility of setting up a pooled fund. 

Our **field visits** aim to bring together EFN members and new funders to learn about a particular issue in nature, with a view to directing more funding towards it, or through stewarding their own land. In 2023, there were three field visits – to Pentwyn in Wales, on rewilding and philanthropic loans; to Hoyle and Lavington farm in Sussex, on nature friendly farming and wildflower restoration; and to Sarratt in Hertfordshire, on chalk streams and freshwater conservation. 

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**Place-based work** : In November, we hosted an event in Manchester to support and inspire funders in that part of the country. Held at the Manchester Art Gallery alongside their exhibition on climate justice, the event was about the links between a thriving environment, healthy people and resilient communities. 

**Partnerships** : We work in partnership with a wide range of philanthropy organisations, networks and advisors to support them and the people they work with to start giving to environmental causes, or to give more. This includes providing bespoke advice, co-organising meetings and events, providing training, and contributing to resources to inform and inspire donors about how they can give impactfully to environmental causes. 

**Environmental Finance & Learning Fund (EFLF)** : We were pleased to continue our partnership with the Esmée Fairbairn Foundation (EFF) to deliver the learning programme of the EFLF. 15 funders participate and have contributed £679,000 towards the fund. The fund was then matched three times over by EFF to create a pot of £2.7m to deploy in environmental investments over three years. In 2023, EFLF moved into its second year, continuing to help participants learn about and gain confidence in making environmental investments. 

In our mid-term survey of participants, we found: 

- 58% of respondents reported that their environmental investing has already increased because of the programme 

- 50% said they plan to increase the funds they commit to environmental investments in the future 

- A third of respondents reported that their environmental giving has increased because of the programme 

- 75% reported increased confidence and skills for environmental investing 

**Environmental Impact Investing Group (EIIG)** : Trusts and foundations are increasingly conscious about the need to align their investments to support – rather than undercut – their missions. Many are doing this through screening out harmful industries by investing in funds that promise less harm, but fewer have adopted an approach to investing for impact. The EIIG is a pilot initiative to help philanthropic investors learn about how to invest for positive environmental impact while building a network of investors who know and trust one another. In 2023 we pre-launched the pilot with an introductory webinar and the EIIG now has 115 participants signed up. 

**Scotland Programme** : Our work in Scotland has grown substantially since March 2020 when we first hired our Scotland Coordinator (Julie Christie) to network and inspire funders to support Scottish environmental work. In 2023, implementing our strategic plan, with support from our Scotland Advisory Group, it included delivering our first ever funder field trip to Southwest Scotland to showcase some of the region’s world-class natural heritage and ‘best-in-class’ environmental projects, and our inaugural Celebration of Environmental Philanthropy networking event in Edinburgh, kindly hosted by the Edinburgh Earth Initiative. Other Scotland-focused activities during the year included: 

- Organising five in-person gatherings and one online event, attended by 130 people, of whom just under 75% were funders. 

- Producing and distributing a new publication, ‘Supporting effective environmental action in Scotland’. 

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- Helping to secure £150,000 of match funding from Scotland-based funders for this year's Big Give Green Match Fund campaign - as a result, 15 eNGOs secured nearly £250,000 for work in, or delivered from, Scotland. 

- Connecting with, and supporting, innumerable individual funders and eNGOs, and their networks. 

As illustrated above, the expanding environmental philanthropy strand of our work is very varied, connecting with a wide range of funders to inspire, motivate and support them to give to environmental causes. Our data – to be published in 2024 as ‘Where the Green Grants Went’ shows this is paying off: environmental giving from UK trusts and foundations has risen very significantly in recent years, from a base of £110m per year in 2016 to just over £600m in 2021 (the latest year for which we have a full dataset). We are very proud of the role we have played in fostering this growth and look forward to seeing it continue. 

## _**Workstream Two: Improving the effectiveness of environmental philanthropy**_ 

This pillar of our work focuses on supporting funders to be more effective in their giving. We are approaching key tipping points in terms of global climate and biological systems: action taken today has a much greater chance of success than 10 or 20 years down the road. In this window of opportunity, it is vital that funders act on a keen understanding of how to give the funds away most effectively. Our events and research in this strand of our work support funders to strengthen their impact while connecting them to others with whom they can partner to accomplish more than they could alone. 

_‘EFN is a community of allies, with resources. Our participation in various aspects has deepened our knowledge, which in turn has informed our grant making choices. The community has also enabled new collaborative work, which in turn is creating new possibilities for impact.’ - EFN member_ 

_In 2023, this strand of work involved the following activities:_ 

**Events for funders** : 40 online sessions plus several in-person meetings, visits and field trips. Top-attended events included: 

- Two-day annual retreat at Hinxton Hall in Cambridgeshire 

- In-person networking lunches focused on political advocacy, toxic chemicals and marine conservation 

- Edinburgh networking event celebrating and cultivating environmental philanthropy in Scotland 

- Quarterly Climate Funders Group meetings (online and in-person) 

- Meetings to update funders on UK policy developments, COP15 biodiversity and COP28 climate summits 

- Forests webinar series organised in partnership with several EFN members who support forests-related work 

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## Environmental Funders Network 

A **nnual two-day retreat for funders** : this provides funders of all kinds – trustees, individual donors, staff – with a chance to get outside of their daily lives and develop new perspectives on their funding. We organise a mix of sessions to provide a stronger intellectual understanding of what environmental philanthropy could accomplish while also giving attendees a chance to get outside and take part in activities that lift them out of the day-to-day. By connecting with nature – which humans are and have always been a part of – we hope to open up a different way of approaching the challenge of addressing environmental issues. 

**Philanthropy Lab** : In partnership with the Bio-Leadership Project, we set up the Philanthropy Lab to foster new ways of working that support more collaborative and systemic approaches to philanthropy, with the goal of creating ‘economies in service to life’. Six trusts and three individual donors participated in the first two phases of the Lab. Together, they developed three work streams on rights of nature, tax justice and nature, and regenerative investment.  The Lab continues to welcome new funders to join existing work streams or start new ones. 

_‘The Lab has given me the bandwidth to think very differently about our work. How can we work more 'upstream'? It's definitely informing the implementation of our organisation’s strategy.’ - EFN member_ 

**Climate Funders Group:** Co-coordinated with EFN members Tessa Durham of Gower Street and Greg Hilditch of Global Greengrants Fund UK, this group meets quarterly to help funders embrace more effective climate philanthropy in the UK and to learn about what others are doing globally to support action on the climate crisis. In 2023, we heard from a range of insightful speakers about different topics, such as strategic communications, public mobilisation, and phasing out oil and gas. 

_‘I attend the Climate Funders Group meetings because I value being in a ‘room’ with a group of like-minded individuals hearing from a thoughtful line-up of climate focussed organisations. It helps me understand the space better: what’s going on, who’s doing what. Crucially, I get a great deal from the chat and the questions that are asked. We could meet these organisations individually but it would be nowhere near as useful because hearing the perspectives and questions of the other funders on the call is so valuable. Grant-giving can be lonely – the CFG makes me feel part of a community.’ - EFN member_ 

**Research** : In 2023, we started gathering data for _Where the Green Grants Went 9_ , which will be the latest in our series of research analysing the distribution of environmental grants and funding from UK trusts and foundations. It will be published in early summer 2024 and will reflect on ways that environmental philanthropy could be deployed more effectively. 

We also started gathering funders’ data through our _Members Directory_ , which has around 70 entries in the funders-only directory (40 entries for the public version). We encourage funders as far as possible to submit their information and be part of improving the efficacy of fundraising. Going forward, we are exploring options for developing a dedicated online platform for the Members Directory to make it much easier to share, manage and access information. 

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_‘Joining EFN led us to a ready-made network of experts in the sector.  This accelerated out learning.  Without this our progress would have been much slower.’ – EFN member_ 

_‘EFN is uniquely placed to help funders and grantees navigate environmental philanthropy and is playing a pivotal role in improving, increasing and expanding funds that are spent. This is a key reason for why we contribute to the network – we want to grow the (underfunded) pie for climate and environment giving, whilst supporting the ecosystem to thrive. And, of course, we also benefit hugely from the learning and networking opportunities that EFN provides.’ – EFN member_ 

## _**Workstream Three: Supporting those that do environmental work to be more effective**_ 

This strand of our work focuses on supporting the environment sector to become more effective. We have three main objectives, focused on funding, communication and connectivity. Our ambition is to support an interconnected, resilient and impactful sector with a broad reach and sufficient funding. 

Towards this aim, we host a popular ‘Green Fundraisers Forum’, provide a mechanism for environmental organisations to access urgent funding (our Rapid Response Fund), and are developing ideas to run a large-scale media appeal and map who is doing what in the UK environment sector. 

_In 2023, this strand of work involved the following activities:_ 

**Wealth Advisor Research:** In our sector collaboration workshop in 2022, fundraisers from across the sector expressed a desire to explore the potential of wealth advisors to catalyse the philanthropic fundraising efforts of environmental groups. We have since interviewed 60 advisors and high-net-worth-individuals, the findings from which will be published in 2024. We are planning a series of events with wealth advisors in London and Edinburgh to disseminate the findings. 

**Spotlighting Underfunded Issues:** EFN’s research has shown that several vital issues are chronically under-funded in the sector, which we refer to as ‘Cinderella’ issues. We have begun spotlighting projects focusing on these topics to our network of donors, to raise awareness and encourage more funding toward these areas. 

_‘Thanks for the work you're doing to direct funding to high-impact and often neglected environmental work, and to support us fundraisers in the sector – it's so appreciated.’_ 

**Climate Activist Speaker Fund (CASF):** The pilot phase of this programme continued to facilitate the support of individual climate activists by philanthropic funders in 2023, drawing to a close in December, with a second phase planned for 2024-2025. With support from six funders, the CASF provided 10 young climate activists with: 

- £4,000 each to provide compensation for their speaking and messaging work as well as access to desired platforms. 

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- 12 hours of formal training and support, including climate communications, overcoming imposter syndrome, and individual coaching sessions. 

- A community to network, exchange, and learn from peer activists. 

**Rapid Response Fund (RRF):** We continued to facilitate this initiative, which provides a mechanism for funders to provide funds to groups trying to seize unexpected opportunities or respond to unanticipated crises. Participating funders provided £264,635 in funding to 22 proposals in 2023, a 16% increase compared to 2022.  Amongst other initiatives, the funders were able to support: 

- Power for People to amend the Government’s Energy Bill to include the Local Electricity Bill, which will enable community groups to set up local renewable energy schemes to sell clean power locally 

- Fern to protect forests through mandatory paper reductions in the EU Packaging Directive 

- Greenpeace to commission a report from independent economists Cambridge Econometrics to provide an analysis on upgrading the energy grid for net zero 

_‘I find the RRF a good way to mobilise my own personal money quickly and effectively.’_ 

_‘Your RRF allows us to be introduced to policy-related work that can strengthen our likely impact, and promote that strand within our grant-making.’_ 

**Strengthening digital skills** : We worked with Lightful to deliver their digital skills training programme for charities and non-profits to 30 environmental organisations. In the coming year we will be organising training on this topic for our Green Fundraiser Forum members. 

**Inter-Narratives** : we (re)launched this initiative, a community for people who work on, or are curious about, narrative change and the role it plays in system change. Building on the work of its predecessor, Reset Narratives, Inter-Narratives was launched in May 2023 by Ella Saltmarshe and Paddy Loughman. Every month Inter-Narratives runs either a public or community event. The public events are led by an expert curator and speakers, covering different issues areas, such as fighting disinformation and fake news and narrative strategies. Community sessions give our community of practitioners a space to share and discuss work. The Inter-Narratives newsletter shares narrative insights and examples of effective narrative-change work with nearly 800 subscribers from a range of sectors. 

_About Inter-Narratives: ‘[a] space where the breaking edge of interdisciplinary storytelling can meet in order to make meaning of these times of great change.’ - Inter-Narratives community member_ 

**Green Fundraisers Forum (GFF):** This forum now includes over 800 subscribers to its mailing list, over 400 of whom are also part of our active GFF Slack workspace. The GFF enables people working within a wide range of environmental groups to connect and share, fostering a culture of collaboration and providing opportunities – often facilitated by us – for learning, discussion, and relationship building. 

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## Environmental Funders Network 

_‘As someone recently joining the environmental funding sector, I've found the knowledge, networks, and experience of the GFF invaluable. The Slack channel is a 'go to' place for me when I want to connect, ask questions, and find answers. The newsletter is always informative, ensuring we're up to date with opportunities, and the bimonthly meetings are a great place to network and share experiences. Thank you!’ - GFF member_ 

**Sustainable Wellbeing Environment Network** : We embarked on new research into challenges faced by environmental fundraisers and through our participation in this network, and worked to increase awareness of burnout in the sector and what can be done about it. This topic was one of the focal points of this year’s GFF Away Day. 

**Mapping the Sector:** Funders and fundraisers alike often comment on how difficult it is to understand the UK environment sector as a whole –- who is doing what and where. This lack of clarity can give rise to a great deal of wheel reinvention and duplication which arguably we have neither the time nor the resources for. We have begun exploring methods of mapping the sector, with the ambition of creating an online tool to visualise the different organisations and the links between them. As a first step, we have started mapping those working on sustainable transport. 

## **Monitoring our impact** 

As the above text indicates, we track our impact with a mixture of quantitative and qualitative data. Quantitative data (tracked through our _Where the Green Grants Went_ series, as well as our monitoring of our activities) helps us see how much grant funding to environmental issues is increasing, how many funders we are supporting to give more effectively, and how many people and organisations working on environmental issues we are supporting with convening and resources. Alongside those numbers, we get clear insights into the difference we are making through written and oral feedback from our members about the value we add to the ecosystem of environmental actors in the UK. 

We know from the latest Where the Green Grants Went data (to be published in 2024) that grant giving has risen significantly in recent years, and we are proud to have played a part in that. In addition, our feedback from members suggests we are highly valued in terms of the support we provide funders to improve the effectiveness of their giving, though we can see that there are plenty of ways in which funder effectiveness might continue to improve – and likewise that there is considerable room in the system for more funding for environmental causes. 

## **Organisational development** 

We welcomed two new staff members in 2023. Tara Cooper joined us as Communications Manager in November and Sophia Cooke as Sector Programme Lead (maternity cover) in October. As an office-less team we continue to invest in time spent together, including two days spent in Norfolk concentrating on developing our work plans for the year ahead and looking at visioning the future for EFN. 

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Nick Addington joined us as a trustee in June 2024. As Chief Executive of the William Grant Foundation he brings valuable experience to the Board including knowledge of the funding landscape in Scotland. The trustee and staff team worked together at an Away Day in London in November to reflect on our work (in our three work pillars) in 2023 and looking ahead to 2024.  This work helped inform the annual update to the EFN Strategy. 

We developed an Environmental Policy during 2023 which sets out our commitment to minimising the negative environmental impacts of our operations and supporting staff to adopt sustainable practices at work.  It recognises that the biggest impact EFN can make is through its work – working with our members to engage people to understand why we need to act and supporting them to take action to bring about the changes we need.  The policy includes using a banking provider which has strong ethical standards including around fossil fuel investment. Our main provider is now Cooperative Bank, and we closed our previous account with HSBC during 2023, sharing our reasons with our membership and creating a campaign which also highlighted the work others are doing in this area. 

EFN is committed to the principles of **justice, equity, diversity and inclusion** (JEDI), recognising their inherent value and necessity, including for effective environmental work. We reflect on and revise how we operate and design our programmes in this context as a matter of ongoing work. 

What we did in 2023: 

- Provided a platform (blog and events) to those most affected by the environmental crisis to share their experiences 

- Highlighted organisations doing important JEDI work in our monthly newsletters 

- Changed processes for our Rapid Response Fund to better serve most-affected groups 

- Developed the Climate Activist Speaker Fund based on JEDI principles 

- Contributed to, and promoted, the RACE Report, a project driving progress on diversity and inclusion in the environment sector 

- Worked to foster an inclusive staff culture, where everyone feels they can be themselves at work – including creating relevant policies (for example on microaggressions) and initiating a staff wellbeing survey 

- Employed recruitment processes that reduce bias 

## **FUTURE PLANS** 

Our strategy for 2023-2026, including our work plan for 2024, is published on our website here. 

With a Communications Manager now in place for the first time, we have ambitious plans to improve and enhance all of EFN’s external and digital communications. We will: 

- Develop a new, creative, and engaging visual identity that better tells the story of EFN and our work. 

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- Redesign and build a new website with a focus on creating an outstanding user experience and showing the wide range of work and activities EFN does. 

- Create and share regular digital content that better serves the needs of EFN and our audiences. 

This investment in communications will underpin many of the activities detailed below and enable staff members to better engage with audiences and fulfil our mission. 

_We will do the following under each workstream:_ 

## _**Expanding Environmental Philanthropy**_ 

- Organise events to engage with specific new audiences (for example those working in finance) and support them to start to give (or give more) to environmental causes. We will improve our follow up after events, offering 1:1 meetings with EFN staff, Advisory Group members and partner organisations. 

- In 2024, we aim to double the £4.3m raised in 2023 by the Big Give Green Match Fund, and start working towards scaling the campaign drastically in future years, culminating with a ‘Children in Need’-style live annual event. Big Give are working with Shape History, a digital agency, to do a feasibility and scoping study on this level of campaign. 

- Publish our research report into the provision of environmental philanthropy advice in the UK and use it to engage with philanthropy and wealth advisors. We will host at least one multilateral meeting to share the findings of our research with them and discuss how EFN can help them to meet the needs of their clients (including Next Gens) better. 

- Pilot our Environmental Impact Investing Group (EIIG), using it to engage with and support individuals and foundations who are interested in impact investing, even if they have not yet considered environmental philanthropy. 

- Secure targeted articles in the media to highlight the value of environmental philanthropy and the need for much more of it. 

## _**Improving the Effectiveness of Environmental Philanthropy**_ 

- Publish and disseminate the findings of our _Where the Green Grants Went 9_ report to help funders understand the funding landscape and engage funders in discussion of what effective environmental philanthropy entails. 

- Provide opportunities for funders to hear from the sector on positive/negative funding experiences and highlight elements of good practice grantmaking, as described in our Theory of Change. 

- Work with funders and others to create new opportunities for environmental giving in Scotland, such as a nascent fund for grassroots ecological restoration initiated by an EFN member. 

- Develop the next _What the Green Groups Said_ survey for dissemination in 2025. 

- Support up to five champions from within the network, each interested in working to ensure more ambitious, collective impact among funders on a particular issue or geography in the UK and abroad. 

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## _**Supporting those that do environmental work to be more effective**_ 

- Wrap up our research into opportunities and barriers for wealth advisors to work with the sector and increase philanthropic environmental giving. We will continue hosting networking events for advisors in England and Scotland. 

- Organise and form an environmental fundraisers’ working group on Fundraising Challenges that aims to identify the most pressing funding challenges within the sector and their causes, possible solutions and their implementation with emphasis on efficiency in grant application processes for both funders and grantees. Publicly share findings to enhance understanding of these issues, encourage best practice among funders and foster constructive dialogue between fundraisers and funders. 

- Explore potential methods to create a living, interactive map of the UK environment sector (making it easier to understand who is doing what, where and how), beginning with a subset e.g. GFF members working on particular topics. 

## _**Governance and Organisational Development**_ 

We plan to recruit up to two new trustees in 2024 as long-standing member of the board, Sian Ferguson, steps down.  We have looked at what skills and experience will best complement the existing trustees, and have advertised the opportunity to our members. 

As the organisation has grown, we are continually monitoring the effectiveness of the current organisational structure, balancing the needs of efficient line-management structures with a staff team that is largely working part-time, with limited capacity for line-management responsibilities. EFN has grown gracefully to date, and a focus on a healthy organisational culture has allowed for highly productive working relationships to emerge. 

## **FINANCIAL REVIEW** 

## **Income** 

EFN's income is mainly a mixture of grants, and voluntary membership contributions (following a sliding scale based on how much each member gives out in environmental grants themselves over an annual period).  We also receive income for fees towards the cost of our annual members’ retreat/conference, for some of our workshops and for coordinating the Environmental Finance & Learning Fund. 

The income received from membership contributions in 2023 rose by 20% to £337,608 (2022: £280,462).  The number of contributing members rose from 99 to 110 year on year, and the increase in income is due to both this increase in number of members and the welcome increase in amounts contributed especially by some larger 

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members of the network.  Together with grants, donations and fee income, the total unrestricted fund income in 2023 rose to £511,823 (2022: £417,639), a 23% increase. 

Restricted fund income also rose in 2023 to £202,570 (from £124,000 in 2022).  This income includes grants and membership donations which are restricted to be spent on our core work.  This restricted core funding was similar year on year (£96,000 in 2023 and £101,000 in 2022), and the overall increase in restricted income from 2022 to 2023 is due to an increase in project related grants.  In particular, we have received grant funding for the InterNarratives project, the Climate Activist Speaker Fund and the Environmental Impact Investing Group work in 2023. 

The total income for 2023 was £714,393 (2022: £541,639). 

## **Expenditure** 

Direct expenditure on our charitable activities increased from £462,503 in 2022 to £608,338 in 2023 partly due to the extra expenditure associated with the new projects mentioned above. The proportion spent on our support costs has fallen year on year from 17% in 2022 to 14% in 2023.  We also increased our staff team in late 2023 - Tara joined EFN as Communications Manager in November. EFN is fortunate to be a team working around the UK from home offices, and office costs are minimal. 

Detail on our spending is given in note 4 to the accounts.  Total expenditure was £621,250 (2022: £473,596). 

## **Reserves** 

The net movement in funds for 2023 was £93,143, and the total reserves were £569,292 on 31 December 2023 (2022: £476,149). 

£176,325 (2022: £248,770) of the reserves were designated for specific work, and a further £57,203 (2022: £9,874) were restricted funds, leaving a balance of £335,764 (2022: £217,505) in general funds. 

Detail of the designated and restricted funds is shown in note 12 to the accounts which includes a description of each fund, and the purpose for which it is held.  It is planned to use £71,628 of the total designated funds set aside on activity in 2024, and the balance of £104,697, will be spent mainly in 2025, but also partly in 2026 as EFN scales up its fundraising to invest in its programmes and to deliver its ambitious strategy. 

## **Risk management and reserves policy** 

We maintain a risk register with risks, ratings, mitigations and monitoring listed.  Key risks are monitored regularly by the Director, and by the Finance & General Purposes (F&GP) subcommittee of the Board.  The full risk register is reviewed at least annually by both the F&GP Committee and the full Board of trustees. 

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## Environmental Funders Network 

We see the most significant risks currently facing EFN as: 

|**Risk**|**Mitigation**|
|---|---|
|Loss of a key member of staff – the potential<br>loss of expertise and networks to EFN would<br>be hard to replace|EFN has a small and very welcoming team.  Staff have a<br>good level of support from trustees.  There is a Pay Review<br>Policy which sets out how pay rises are calculated and<br>ensures EFN continues to offer market rates of pay. Systems<br>for tracking contacts are improving (Salesforce) and there<br>are plans for further improvements (for example a database<br>of member organisations/individuals on our website, which<br>will help capture information that is known by key staff but<br>not currently recorded anywhere). We have developed an<br>effective recruitment process for replacing staff who leave<br>(/go on maternity leave) with excellent replacements.|
|Managing sustainable growth so that our<br>team are not over stretched by the<br>increasing demands of the programme and<br>our growing membership|The trustees and management consider this on an ongoing<br>basis in terms of planning the strategy for the future.  Line<br>managers are supportive, and aware of the potential effects<br>of these demands on the wellbeing of the staff team. The<br>annual strategy development process includes a priority-<br>setting exercise which provides an opportunity for ensuring<br>the staff are not overloaded.|
|The current economic volatility (especially<br>inflationary pressure) impacts the staff team<br>and increases the EFN organisational costs|The Pay Review policy takes account of inflation indices<br>(CPIH and AWE) in the annual cost of living review.  Working<br>from home (WFH) payments are reviewed annually (and<br>take account of rises in home energy costs).  Organisational<br>budgets take account of likely inflation rates, and the 4-year<br>budget is updated annually, and is used to plan out funding<br>needed to cover costs well in advance.|



A key element in the management of financial risk is the setting of a reserves policy and its regular review by trustees. 

EFN holds reserves to enable it to: 

> ● meet its contractual obligations (including the completion of projects and committed administrative costs). 

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Environmental Funders Network 

- designate funds for future expenditure on work to achieve its goals. 

- retain a sufficient margin of funds to meet the cost of unforeseen events. 

The general fund balance on 31 December 2023 was £335,764, and the free reserves (those unrestricted reserves not designated for specific purpose or invested in fixed assets) stood at £334,967. 

The target free reserves for the year ahead are £280,953 and represent the equivalent of six months of core operational expenditure (staff costs, staff expenses and overheads) plus redundancy liabilities, and the costs of winding up the organisation. We plan to use £36,000 of our general fund reserves on our work in 2024 so our reserves going into 2025 will be around £300,000 at which point our target free reserves will have risen to £298,601 meaning at the end of 2024 our reserves will be at the target level. 

Free reserves are reviewed by the trustees at all Board meetings, and the trustees are happy that the current levels are in line with the targets.  The reserves policy is reviewed annually as part of the organisational strategic planning and budgeting process for the years ahead. 

## **Fundraising** 

Our fundraising activity concentrates on developing our relationship with our members, and funding applications to trusts, foundations and other funders.  We understand our duty to protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate.  Our specific and targeted forms of fundraising mean that we avoid these approaches, and we do not use any thirdparty fundraisers to act on our behalf. We have received no complaints about fundraising activity in the years ended 31 December 2023 and 31 December 2022. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

Environmental Funders Network is constituted as a Charitable Incorporated Organisation (CIO) and is registered as a charity in England & Wales (number 1181318) and in Scotland (number SC050579). 

## **Recruitment and appointment of new trustees** 

The trustees elect new trustees, as vacancies arise, considering the skills, knowledge and experience needed for the effective administration of EFN, and clearly setting out the terms of engagement and the essential tasks of the Board. Our recruitment places an emphasis on the diversity of applicants (looking for diversity in terms of ethnic, racial, and socio-economic backgrounds, sexual orientations and gender identities, disabilities, adults of all ages, and people 

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with a broad variety of views and perspectives), recognising that EFN’s work will be strengthened by a board of trustees who bring a variety of experiences, backgrounds, and perspectives to bear on our work. 

EFN's trustees must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. The charity trustees may from time to time co-opt people to serve as additional charity trustees, provided that a person who has been co-opted must retire after having served for a term of one year but shall then be eligible for reappointment for a further term of one year and then for a further term of three years. 

Any person retiring as a charity trustee is eligible for reappointment, save that a charity trustee who has served for six consecutive years may only be reappointed for one year at a time. 

## **Trustee induction and training** 

All potential new trustees are given the opportunity to meet the Chair of trustees, and the Director prior to their appointment. On formal appointment they receive a copy of the constitution, the latest annual report and accounts, the Board terms of reference, all relevant policies, and Charity Commission guidance. 

All trustees are invited to attend an annual Away Day for staff and trustees, and an annual retreat for funders. They are also expected to attend some events each year to get a sense of the offerings of the network. Trustees are also offered training. 

## **Sub Committees** 

There are two subcommittees, both of which consist of at least three members of the Board, and have terms of reference which have been approved by the Board: 

- Finance & General Purpose (F&GP) committee which is responsible for overseeing our finances as well as our staffing and internal policies and procedures. 

- Programme committee which considers the development, implementation, and evaluation of EFN’s event programming for its members. 

## **Key management personnel** 

The key management personnel of the charity comprise the trustees and the Director. The Director is appointed by the trustees and manages the charity.  They act with delegated authority for all operational matters.  All trustees give of their time freely, and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in notes 6 and 14 to the accounts. As with other roles in the organisation, the Director’s salary range is benchmarked against other posts in comparable sector organisations by an external 

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organisation and reviewed annually by the Finance & General Purposes subcommittee of the Board of Trustees as part of the organisational cost of living pay review, and the annual development review processes. 

## **Related parties and cooperation with other organisations** 

Declaration of interests is a standing item on trustee meeting agendas and any contractual relationship and/or connection between a trustee with any related party is disclosed to the full board of trustees. 

As a network organisation, cooperation with other organisations is a key part of our work at EFN, and we take that role extremely seriously, endeavouring to provide support to the full spectrum of organisations, from small to large and to network them with one another. 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

|**Registered charity numbers**|1181318 (England & Wales), SC050579 (Scotland)|1181318 (England & Wales), SC050579 (Scotland)|
|---|---|---|
|**Principal address**|48 High Street, Aylesbury, Buckinghamshire, HP18 9AF||
|**Trustees**|Catherine Bryan (Chair)||
||Nicholas Addington|Appointed 20 June 2023|
||Sian Ferguson|Resigned 1 July 2024|
||Hugh Mehta||
||Champa Patel||
||Elizabeth Gadd||
||Fiona Napier||
||Eva Rehse||
|**Key management personnel**|Florence Miller|Director|
|**Auditors**|BSN Associates Limited|3B Swallowfield Courtyard,|
|||Wolverhampton Road, Oldbury,|
|||West Midlands, B69 2JG|
|**Bankers**|The Co-operative Bank|PO Box 101, 1 Balloon Street,|
|||Manchester, M60 4EP|



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Environmental Funders Network 

## **TRUSTEES’ RESPONSIBILITIES STATEMENT** 

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. 

The law applicable to charities in England and Wales and in Scotland, requires the trustees to prepare financial statements for each financial year. The trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Approved by order of the board of trustees on 1 July 2024 and signed on its behalf by: 


Catherine Bryan Trustee 

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Environmental Funders Network 

## **Independent Auditor's Report to the Trustees of The Environmental Funders Network** 

## **Year ended 31 December 2023** 

## **Opinion** 

We have audited the financial statements of The Environmental Funders Network (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, statement of financial position, statement of cashflows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the financial statements: 

- give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

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

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Environmental Funders Network 

## **Independent Auditor's Report to the Trustees of The Environmental Funders Network** 

_**(continued)**_ 

## **Year ended 31 December 2023** 

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. 

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

We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report. 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion: 

- the information given in the trustees' report is inconsistent in any material respect with the financial statements; or 

- certain disclosures of Trustee remuneration specified by law are not made; or 

- 

- 

   - sufficient and proper accounting records have not been kept; or 

   - the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees' responsibilities statement, the trustees 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 

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Environmental Funders Network 

**Independent Auditor's Report to the Trustees of The Environmental Funders Network** _**(continued)**_ 

## **Year ended 31 December 2023** 

## **Auditor's responsibilities for the audit of the financial statements** 

We have been appointed as auditors under Section 144 of the Charities Act 2011 and Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder. 

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. 

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

Irregularities that result from fraud might be inherently more difficult than irregularities that result from error, which gives risk to a risk of material misstatement. We are of the opinion that the planned audit approach, the documentation and interrogation of the charity's controls means that the audit procedures carried out were capable of detecting irregularities, including fraud. We have also reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We have audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also made enquiries of entity staff in compliance functions to identify any instances of noncompliance with laws and regulations and have reviewed correspondence with regulatory bodies as part of our audit procedures. 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. 

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Environmental Funders Network 

**Independent Auditor's Report to the Trustees of The Environmental Funders Network** _**(continued)**_ 

## **Year ended 31 December 2023** 

- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **Use of our report** 

This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


BSN Associates Limited Chartered accountants & statutory auditor 3B Swallowfield Courtyard Wolverhampton Road Oldbury West Midlands B69 2JG 

1 July 2024 

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## Environmental Funders Network 

## **Statement of Financial Activities for the year ended 31 December 2023** 

|Note<br>**Income**<br>Grants and donations<br>2<br>Income from charitable activities<br>3<br>**Total income**<br>**Expenditure**<br>Expenditure on raising funds<br>4<br>Expenditure on charitable activities<br>4<br>**Total expenditure**<br>**Net income/(expenditure)**<br>**Reconciliation of funds**<br>Fund balances brought forward<br>**Fund balances carried forward**|**Unrestricted**<br>**Funds**<br>**Restricted**<br>**Funds**<br>**Total Funds**<br>**Total Funds**<br>**2023**<br>**2023**<br>**2023**<br>**2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>384,108<br>202,570<br>586,678<br>471,694<br>127,715<br>-<br>127,715<br>69,945|
|---|---|
||511,823<br>202,570<br>714,393<br>541,639|
||12,912<br>-<br>12,912<br>11,093<br>453,097<br>155,241<br>608,338<br>462,503|
||466,009<br>155,241<br>621,250<br>473,596|
||45,814<br>47,329<br>93,143<br>68,043<br>466,275<br>9,874<br>476,149<br>408,106|
||512,089<br>57,203<br>569,292<br>476,149|



The statement of financial activities includes all gains and losses for the period from 1 January to 31 December 2023.  All income and expenditure derive from continuing activities. 

The notes on pages 26 to 33 form part of these financial statements. 

23 



## Environmental Funders Network 

## **Balance Sheet as at 31 December 2023** 

|Note<br>**Fixed assets**<br>Tangible assets<br>9<br>**Current assets**<br>Debtors<br>10<br>Cash at bank<br>**Liabilities**<br>Creditors falling due within one year<br>11<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Net assets**<br>**Funds**<br>Unrestricted<br>General<br>12<br>Designated<br>12<br>Restricted<br>12<br>**Total funds**|**2023**<br>**2022**<br>**£**<br>**£**|
|---|---|
||797<br>357|
||25,202<br>37,213<br>609,454<br>466,806|
||634,656<br>504,019<br>(66,161)<br>(28,227)|
||568,495<br>475,792|
||569,292<br>476,149|
||569,292<br>476,149|
||335,764<br>217,505<br>176,325<br>248,770|
||512,089<br>466,275<br>57,203<br>9,874|
||569,292<br>476,149|



The notes on pages 26 to 33 form part of these financial statements. 

The financial statements were approved by the Board of Trustees on 1 July 2024, and were signed on its behalf by: 


_____________________________ 

Catherine Bryan, Trustee 

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Environmental Funders Network 

## **Statement of Cash Flows for the year ended 31 December 2023** 

|**Cash flows from operating activities**<br>**Cash flows from investing activities**<br>Purchase of fixed assets<br>**Cash used in investing activities**<br>Increase in cash and cash equivalents in the period<br>Cash and cash equivalents at the start of the period<br>**Cash and cash equivalents at the end of the period**|**2023**<br>**2022**<br>**£**<br>**£**|
|---|---|
||143,711<br>29,381|
||(1,063)<br>-|
||(1,063)<br>-|
|||
||142,648<br>29,381|
||466,806<br>437,425|
||609,454<br>466,806|



## **Reconciliation of net movement in funds to net cash flows from operating activities** 

|Net movement in funds<br>Add back depreciation charge<br>Decrease/(increase) in debtors<br>Increase/(decrease) in creditors<br>Net cash flows from operating activities|**2023**<br>**2022**<br>**£**<br>**£**<br>93,143<br>68,043<br>623<br>666<br>12,011<br>(27,063)<br>37,934<br>(12,265)|
|---|---|
||143,711<br>29,381|



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Environmental Funders Network 

## **Notes to the Financial Statements for the year ended 31 December 2023** 

## **1. Accounting policies** 

## **General information** 

Environmental Funders Network is constituted as a Charitable Incorporated Organisation (CIO) and is registered as a charity in England & Wales (number 1181318) and in Scotland (number SC050579). 

## **Basis of preparing the financial statements** 

The financial statements of the charity, which is a public benefit entity under FRS 102, 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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. 

## **Going concern** 

There are no material uncertainties about the charity’s ability to continue as a going concern. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably. 

## **Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. 

## **Tangible fixed assets** 

Individual fixed assets costing over £1,000 are capitalised at cost, and are depreciated over their useful economic lives as follows: 

Computer equipment - 25% on cost 

## **Taxation** 

The charity is exempt from tax on its charitable activities. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside for a particular purpose. 

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Environmental Funders Network 

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

## **Pension costs** 

The charity operates a defined contribution pension scheme.  Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. They are split between projects in line with salaries. 

## **Support costs allocation** 

Direct costs attributable to a single activity are allocated directly to that activity.  Shared costs which contribute directly to more than one activity are apportioned between those activities according to their use or time spent on each. 

## **Judgements and key sources of estimation uncertainty** 

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported.  These estimates and judgements are continually reviewed, and are based on experience and other factors, including expectations of future events, that are believed to be reasonable under the circumstances. 

## **2. Grants and donations** 

|Trust and foundation grants<br>Membership contributions<br>Other donations<br>**Total grants and donations**|**Unrestricted funds**<br>**Restricted funds**<br>**Total**<br>**Total**<br>**2023**<br>**2022**<br>**2023**<br>**2022**<br>**2023**<br>**2022**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>Restated<br>Restated<br>61,500<br>167,500<br>187,570<br>109,000<br>249,070<br>176,500<br>322,608<br>265,462<br>15,000<br>15,000<br>337,608<br>280,462<br>-<br>14,732<br>-<br>-<br>-<br>14,732|
|---|---|
||384,108<br>347,694<br>202,570<br>124,000<br>586,678<br>471,694|



The 2022 figures above have been restated to reclassify grants totalling £101,000 received towards core costs as restricted income. 

## **3. Income from charitable activities** 

|Retreat, event and workshop fees<br>Other<br>**Total income from charitable activities**|**Total**<br>**Total**<br>**2023**<br>**2022**<br>**£**<br>**£**<br>104,406<br>51,941<br>23,309<br>18,004|
|---|---|
||127,715<br>69,945|



27 



## Environmental Funders Network 

## **4. Expenditure** 

|**xpenditure**||
|---|---|
|Research costs:<br>Where the Green Grants Went<br>What the Green Groups Said<br>Other research<br>Expanding Environmental Philanthropy<br>Strengthening the Network<br>Strengthening the Sector<br>EFN Scotland<br>Raising funds<br>Staff travel & home office costs<br>Administration costs<br>Staffing support costs<br>Governance & legal costs<br>Allocation of support costs<br>**Total**|Charitable<br>activities<br>Raising<br>funds<br>Support<br>costs<br>Total<br>Total<br>2023<br>2023<br>2023<br>2023<br>2022<br>£<br>£<br>£<br>£<br>£<br>38,525<br>38,525<br>7,957<br>-<br>-<br>27,628<br>7,000<br>7,000<br>10,000<br>102,154<br>102,154<br>72,936<br>213,927<br>213,927<br>152,449<br>125,033<br>125,033<br>84,385<br>34,277<br>34,277<br>29,187<br>10,589<br>10,589<br>8,358<br>12,438<br>12,438<br>7,755<br>23,033<br>23,033<br>18,971<br>35,811<br>35,811<br>30,403<br>18,463<br>18,463<br>23,567|
||520,916<br>10,589<br>89,745<br>621,250<br>473,596<br>87,422<br>2,323<br>(89,745)<br>-<br>-|
||608,338<br>12,912<br>-<br>621,250<br>473,596|



The charity identifies governance and other support costs, and apportions them to direct charitable activity, and raising funds on the basis of staff time. 

|**_Prior period comparatives_**<br>_Research costs:_<br>_Where the Green Grants Went_<br>_What the Green Groups Said_<br>_Other research_<br>_Expanding Environmental Philanthropy_<br>_Strengthening the Network_<br>_Strengthening the Sector_<br>_EFN Scotland_<br>_Raising funds_<br>_Staff travel & subsistence_<br>_Administration costs_<br>_Staffing support costs_<br>_Governance & legal costs_<br>_Allocation of support costs_<br>**_Total_**|**_Charitable_**<br>**_activities_**<br>**_Raising_**<br>**_funds_**<br>**_Support_**<br>**_costs_**<br>**_Total_**<br>**_2022_**<br>**_2022_**<br>**_2022_**<br>**_2022_**<br>**_£_**<br>**_£_**<br>**_£_**<br>**_£_**<br>_7,957_<br>_7,957_<br>_27,628_<br>_27,628_<br>_10,000_<br>_10,000_<br>_72,936_<br>_72,936_<br>_152,449_<br>_152,449_<br>_84,385_<br>_84,385_<br>_29,187_<br>_29,187_<br>_8,358_<br>_8,358_<br>_7,755_<br>_7,755_<br>_18,971_<br>_18,971_<br>_30,403_<br>_30,403_<br>_23,567_<br>_23,567_|
|---|---|
||_384,542_<br>_8,358_<br>_80,696_<br>_473,596_<br>_77,961_<br>_2,735_<br>_(80,696)_<br>_-_|
||_462,503_<br>_11,093_<br>_-_<br>_473,596_|



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Environmental Funders Network 

## **5. Net income/(expenditure)** 

This is stated after charging: 

||**Total**|**Total**|
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|Depreciation of tangible fixed assets|623|666|
|Audit fees|6,120|5,832|



## **6. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** 

|Salaries and wages<br>Social security costs<br>Pension costs|**Total**<br>**2023**<br>**Total**<br>**2022**<br>**£**<br>**£**<br>291,474<br>245,976<br>25,977<br>21,205<br>20,768<br>17,193|
|---|---|
||338,219<br>284,374|



One employee earned over £60,000 during the year (2022: one). 

The average number of FTE staff per month was 6.2 (2022: 5.6), and the average headcount per month was 8.2 (2022: 7.7). 

The key management personnel of the charity comprise the trustees and the Director.  The total employee benefits of the key management personnel were £74,036 (2022: £64,445). 

The charity trustees received no remuneration during the year (2022: nil) 

Two (2022: three) trustees were reimbursed travel expenses during the year totalling £586 (2022: £665). Trustees are encouraged to have their travel expenses reimbursed. 

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Environmental Funders Network 

## **7. Pension costs** 

The charity operates a defined contribution pension scheme.  The scheme and its assets are held by independent managers.  The pension charge represents contributions due from the charity and amounted to £20,674 (2022: £17,193). 

## **8. Corporation taxation** 

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 

## **9. Tangible fixed assets** 

|**Cost:**<br>At 1 January 2023<br>Additions<br>Disposals<br>At 31 December 2023<br>**Depreciation:**<br>At 1 January 2023<br>Disposals<br>Charge for the year<br>At 31 December 2023<br>**Net book value:**<br>At 1 January 2023<br>At 31 December 2023|**Computer**<br>**Equipment**<br>**£**<br>2,663<br>1,063<br>(1,149)|
|---|---|
||2,577|
||2,306<br>(1,149)<br>623|
||1,780|
||357|
||**797**|



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## Environmental Funders Network 

## **10. Debtors** 

|Trade debtors<br>Prepayments and accrued income<br>**Creditors**<br>Trade creditors<br>Accruals and deferred income<br>Other creditors|**Total 2023**<br>**Total 2022**<br>**£**<br>**£**<br>17,845<br>34,315<br>7,357<br>2,898|
|---|---|
||25,202<br>37,213|
||**Total 2023**<br>**Total 2022**<br>**£**<br>**£**<br>4,991<br>1,847<br>58,462<br>24,137<br>2,708<br>2,243|
||66,161<br>28,227|



## **11. Creditors** 

## **12. Analysis of charitable funds** 

## **Analysis of unrestricted funds** 

|**General funds**<br>**Designated funds**<br>Expanding environmental philanthropy<br>‘Where the Green Grants Went’ &<br>‘What the Green Groups Said’<br>Supporting sector fundraising<br>Experimenting for impact<br>Programme fund<br>**Total unrestricted funds**|**Funds**<br>**Income**<br>**Expenditur**<br>**e**<br>**Transfers**<br>**Funds**<br>**1 Jan 23**<br>**31 Dec 23**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>217,505<br>511,823<br>(393,564)<br>-<br>335,764<br>39,000<br>-<br>(5,133)<br>-<br>33,867<br>14,726<br>-<br>(14,726)<br>60,620<br>60,620<br>9,664<br>-<br>-<br>-<br>9,664<br>67,380<br>-<br>(52,586)<br>-<br>14,794<br>118,000<br>(60,620)<br>57,380|
|---|---|
||466,275<br>511,823<br>(466,009)<br>-<br>512,089|



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Environmental Funders Network 

**The general fund** represents the unrestricted reserves after allowing for all designated funds. 

**The expanding environmental philanthropy** fund is designated for media work raising the profile of environmental philanthropy, with the goal of inspiring and encouraging new donors to give to environmental causes. 

**‘Where the Green Grants Went’ & ‘What the Green Groups Said’** is for updates to these two studies which take the pulse of the UK's environment sector and paint a picture of its resources. The findings produce new insights into the environment sector and its needs. 

**Supporting sector fundraising** is set aside for work with fundraisers from across the environment sector, providing access to resources and peer-to-peer networking, and developing collaboration opportunities identified by the sector. 

**The experimenting for impact fund** is enabling us to explore new ideas to connect – it has funded the development stage of the Philanthropy Lab which is bringing funders together to experiment and collaborate towards a big ‘North Star’ goal.  It will also help subsidise an experiential retreat for our members and continues to fund the cost of our Environment Sector Programme Lead who works on the NGO facing side of our work, fostering connections between NGOs and their funders. 

**The programme fund** is designated for delivery of our programmatic strategy through to 2026 and particularly up to the end of 2024. Our ambitious strategy requires commitment to multi-year workstreams and an ability to be responsive and flexible. This designated fund will contribute to this across all three pillars of our work, although additional, planned fundraising will be required for full implementation of our strategy. 

## **Analysis of restricted funds** 

|**Restricted funds**<br>Core work<br>EFN Scotland<br>Inter-Narratives<br>Environmental Impact Investing Group (EIIG)<br>Climate Activist Speaker Fund<br>Professional development<br>**Total restricted funds**|**Funds**<br>**Income**<br>**Expenditure**<br>**Funds**<br>**1 Jan 23**<br>**31 Dec 23**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>96,000<br>(96,000)<br>-<br>9,874<br>25,150<br>(15,715)<br>19,309<br>-<br>39,125<br>(26,769)<br>12,356<br>-<br>30,000<br>(14,462)<br>15,538<br>-<br>10,000<br>-<br>10,000<br>-<br>2,295<br>(2,295)<br>-|
|---|---|
||9,874<br>202,570<br>(155,241)<br>57,203|



**Core work** is restricted funding received for the core costs of the organisation. 

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## Environmental Funders Network 

**EFN Scotland** is funding specifically to support the work of our Scotland Coordinator to grow and develop environmental philanthropy, fundraising and funding in Scotland. 

**Inter-Narratives** is project funding which has established a community (of 120+ organisations) - people working on narrative change and the role it plays in systems change.  We convene the community, curate sessions, and share and amplify narrative insights and work in our newsletter and publications. 

**Environmental Impact Investing Group (EIIG)** is a 12-month pilot to support trusts, foundations and individuals who wish to learn more about environmental impact investing and develop their work in this area. It offers an online learning programme, in-person Market Information Days (MIDs) and a network to exchange ideas and learning. 

The **Climate Activist Speaker Fund** is a pilot programme that is testing a new mechanism to support young climate activists to deliver their messages far and wide, funded by the philanthropic community, including those who may not otherwise be able to fund individuals.  Ultimately it aims to magnify the impact activists and funders can have. 

**Professional development** was funding received towards the cost of some leadership training. 

## **13. Analysis of net assets between funds** 

|Tangible fixed assets<br>Cash at bank<br>Other current assets/(liabilities)<br>**Total net assets**|**General fund**<br>**Designated**<br>**funds**<br>**Restricted**<br>**funds**<br>**Total funds**<br>**£**<br>**£**<br>**£**<br>**£**<br>797<br>-<br>-<br>797<br>369,267<br>178,501<br>61,686<br>609,454<br>(34,300)<br>(2,176)<br>(4,483)<br>(40,959)|
|---|---|
||335,764<br>176,325<br>57,203<br>569,292|



## **14. Related party transactions** 

There were no related party transactions during the year or in the preceding year. 

33