# **Zero Gravity Fund Annual report and financial statements - 2023**
## **Contents**
**03 About Zero Gravity Fund**
**15 Fundraising Review 20 Scholarship Deployment 23 Scholarship Impact 29 What’s Next? 30 Reference and Administrative Information 32 Structure, Management and Governance 37 Financial Review 42 Financial Statements 51 Notes to Financial Statements**
## **A word from our Founder**
Growing up in a single parent family in a small town in West Yorkshire, I saw first-hand how tough it is for students from low-opportunity areas to break into elite institutions. What I didn’t realise however was just how hard it would be to survive once you got there.
The student finance system assumes everyone has access to the “Bank of Mum and Dad”. For students living outside of London, the average student loan falls £3,021 short of covering basic living costs. Even those on the maximum loan are forced to work 19 hours a week just to stay afloat. They’re left juggling part-time jobs and demanding studies, barely scraping by. Financial stress becomes an invisible barrier, holding back even the most talented once they’ve secured a place at uni.
That’s why when I launched Zero Gravity from my bedroom with the last £200 of my student loan, I knew we had to do more. Zero Gravity was already propelling thousands of students from lowopportunity backgrounds into top universities, but I saw that getting in was only half the battle.
So in February 2020, I set up Zero Gravity Fund as an independent charity. We started deploying £3,000 scholarships to students from lowopportunity backgrounds so they could focus on their studies and future careers. We started with an initial cohort of 36 scholars and by September 2023 we’ve grown to support 471 scholars.
Even before our first cohort graduates, the impact is crystal clear. Our scholars are 44% less likely to need part-time jobs, saving 100 hours per year on average, and they’re three times more likely to secure professional work experience compared to their peers. University dropout rates have been slashed by 72%, and our students are outperforming expectations in their exams.
For me, this is personal. I know what it’s like to fight financial barriers while chasing your ambitions. Through the Zero Gravity Fund, we’re making sure no student is held back by their financial situation. We believe that with the right opportunities, our students won’t just survive—they’ll defy every expectation and redefine what’s possible.
**Joe Seddon,**
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## **Note from our Chair**
There is an undeniable body of evidence showing scholarships and career support are urgently needed for low-opportunity students in the UK. The financial pressures these students face, both during their studies and after graduation, are welldocumented, as is the significant gap in career outcomes between students from low-opportunity backgrounds and their more privileged peers. This disparity represents a tremendous waste of potential, and addressing it would not only benefit the students themselves but also the UK as a whole through a powerful multiplier effect.
Zero Gravity Fund’s work is driven by our partnership with Zero Gravity Tech Ltd. Together, we identify the most ambitious students from low-opportunity backgrounds and provide them with a £3,000 scholarship for their undergraduate studies. This financial support allows them to focus on excelling academically and secure a fantastic career without financial anxiety.
To date, we’ve deployed £1.5m to 471 students from low-opportunity backgrounds across the UK. Our partnership with Zero Gravity Tech Ltd has created a highly efficient and unique funding model for scholarships. Zero Gravity Tech Ltd provides access to its members, digital platform, and expertise completely free of charge, allowing Zero Gravity Fund to maximise the impact of every donation. This ensures that 100% of every scholarship donation is deployed directly to students.
The feedback from our scholars and the analysis of their progress to date testify to the transformational impact Zero Gravity Fund is having on low-opportunity students—an impact that will only grow as Zero Gravity Fund expands and its scholars continue to succeed. And when they do, the impact doesn’t stop with them— it ripples out, lifting up their communities and driving positive change across the UK.
**Kirsty Prest, Chair of Zero Gravity Fund**
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## **2023 in Numbers**
**225 44%**
Deployed more scholarships than ever before, £675k straight to 225 students.
Scholars were 44% less likely to work part-time than students from a comparable socio-economic background.
**7x 3x**
Diversified fundraising from 13 supporters in 2022 to 95 in 2023, a 7x improvement.
Number of donations from corporates increased 3x from 2022, including support from UBS Optimus Foundation, KKR, & INETEC.
**£222k**
Hosted our first-ever fundraising event raising £222,327 profit, with 150+ attendees.
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## **Our mission**
Zero Gravity Fund and Zero Gravity Tech Ltd (trading as ‘Zero Gravity’) work in partnership to dare unrecognised talent to land a future they didn’t think possible. Zero Gravity’s platform finds talented people in low-opportunity areas and brings opportunity to them – unlocking their potential all the way from school into top universities and careers.
Zero Gravity is packed with features designed to take talent to the top–from mentoring, masterclasses, internships, and personalised career opportunities. Zero Gravity members get totally free access to a digital community of over 18,000 students, all working together to make their ambitions real.
Zero Gravity Fund combines financial support, in the form of a £3,000 scholarship, with Zero Gravity’s digital platform, which directly plugs the opportunity and network gap for early careers. We then power potential at university and help students realise their career ambitions.
Together, we open doors of opportunity across the UK for students from low-opportunity backgrounds. By doing so, we’re not only enhancing students’ career prospects and elevating social mobility but also boosting the institutions they become a part of and the wider economy.
**Talent is everywhere, opportunity is not. . We’re here to change that**
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## **The gravitational force of inequality**
**1**
**2**
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Students from the most affluent areas are four times more likely to progress to highly-selective universities than students from the most deprived areas.
59% of state-educated students worry they won’t have the same economic support as others, compared to just 6% of privately educated students at university. This has contributed to a near 10% drop out rate for low-opportunity students. State school students are more than twice as likely to report having no ‘professionals’ in their life to support them with education and careers compared to private school students.
Statistics like these are almost embarrassingly commonplace - and highlight the obvious moral imperative to create a more equitable system for talent from low-opportunity backgrounds to thrive in the UK.
But the benefits of increased social mobility stretch beyond social justice. If the UK could increase social mobility to just the Western European average, GDP would be £39bn higher by 2050.
**Or, to put it simply: when talent wins , . everyone wins**
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## **Strategic partnership to scale social mobility**
Zero Gravity Fund has a strategic partnership with Zero Gravity Tech Ltd (Company Number: 12091675). Zero Gravity Tech Ltd (trading as “Zero Gravity”) is a mission-driven business that powers students from low-opportunity backgrounds into top universities and careers. Since launch, Zero Gravity Tech Ltd has propelled 8,000+ students from low-opportunity backgrounds into UK universities, and it works with over 20 of the UK’s leading employers.
Together, Zero Gravity Fund and Zero Gravity Tech Ltd identify and deploy scholarship funding to the most talented and ambitious students within Zero Gravity Tech Ltd’s nationwide community.
Zero Gravity Tech Ltd licences its brand, technology, and expertise to Zero Gravity Fund while also providing free services to support the delivery of the scholarship programme. In addition, Zero Gravity Tech Ltd offers students free access to career mentors, cutting-edge masterclasses, and unparalleled career opportunities through its digital platform.
By offering these services at no cost, Zero Gravity Tech Ltd enables Zero Gravity Fund to deploy 100% of scholarship income directly to students, creating a unique and highly efficient funding model.
The two organisations operate under independent governance structures. Zero Gravity Fund is overseen by a Board of Trustees who are unconnected to Zero Gravity Tech Ltd and follow independent governance processes. Zero Gravity Fund holds shares in Zero Gravity Tech Ltd as an expendable endowment.
In 2023, donated services from Zero Gravity Tech Ltd to Zero Gravity Fund were valued at £161,074.
**Shared mission and brand to scale social mobility across the UK**
**Zero Gravity Tech Ltd**
**Zero Gravity Fund**
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## **Zero Gravity Scholarship programme**
We power the UK’s top talent from low-opportunity areas with £3,000 scholarships. This funding accelerates their academic and career journeys, helping them land the future they didn’t think possible.
## **Zero Gravity Scholarship**
Zero Gravity Fund provides undergraduate students with a £3,000 scholarship – £1,000 upfront at the start of each academic year, straight to their Zero Gravity Card. They control how they use the funds, because they know best how to unlock their potential.
## **Personalised Career Support**
Scholars gain access to career mentoring, masterclasses, and exclusive opportunities through the Zero Gravity platform. They also tap into opportunities with Zero Gravity’s employer partners like HSBC, Snapchat, Jaguar Land Rover, and KPMG.
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## **Theory of Change**
The Zero Gravity Scholarship programme is designed to level the playing field. We propel the most ambitious students from low-opportunity backgrounds through university and help them access their dream careers.
## **Scholarships**
## **Personalised career support**
## **Tech powered**
The Zero Gravity Scholarship increases scholars’ purchasing power at university and also reduces their need to work part-time.
Scholars access tailor-made career content and get direct access to opportunities that help them develop professional skills while at university.
The Zero Gravity platform provides unparalleled reach, scale and engagement.
Scholars from all across the UK get access to
This allows them to focus fully on realising their academic potential, resulting in excellent academic outcomes and graduation from highly-selective universities.
They can then access top graduate roles, boosting their lifetime income.
professional networks and career support. This democratises access to opportunity and levels up communities across the UK.
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## **Measuring our impact**
To ensure the key activities contribute to achieving Zero Gravity Fund’s mission, we have established several measures to assess success. The criteria are focused principally on enhancing the lifetime earnings of scholars, as well as improving academic and career outcomes.
**Boost in the lifetime earnings of Zero Gravity members. This breaks the cycle of social disadvantage, not only for the individual but their descendants as well.**
**Increased % graduating from a highly-selective university.**
**Increased % securing graduate employment (or equivalent).**
**Engagement with the Zero Gravity Scholarship programme.**
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- **Powering top talent from low-opportunity backgrounds**
Zero Gravity is building the largest community of top talent from low-opportunity backgrounds. Using proprietary digital technology, the highest potential students from low-opportunity backgrounds are identified for scholarships, powering their potential through university and into their careers.
## **Here’s how it works:**
**1 Spotting unrecognised talent**
Zero Gravity identifies school students who are from the bottom 40% in terms of social advantage nationally.
Through partnerships with over 800 UK state schools and a brand that speaks to its Gen Z audience, the Zero Gravity community has grown to 18,000+ members.
**2 Identifying the very best scholars**
An algorithm identifies the highest potential students for scholarships. The algorithm spots the students who have achieved the best contextual academic results, demonstrated their desire to succeed on the Zero Gravity platform, and defied the most challenging odds. The shortlist is then subject to final assessment by the Trustees.
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**3 Deploying scholarships**
Zero Gravity Fund deploys £3,000 (£1,000 per academic year) directly to each scholar via a pre-paid Zero Gravity Card. The scholarship increases students’ purchasing power throughout their university journey while also giving them time to reinvest in realising their career ambitions and academic potential.
Scholars decide for themselves how to spend the money. They know how to make it work hardest to break into their chosen career.
**4 Zero Gravity Scholarships are more than just money**
Scholarships are more than just money. Zero Gravity provides mentoring, masterclasses, and career coaching from industry experts and allows scholars to gain valuable insights and skills needed to pursue graduate careers.
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## **Meet Callum**
Hear how Callum went from a state school in Bolton to Cambridge University and used his Zero Gravity Scholarship to get the career edge required for his criminal barrister aspirations.
**“Having the Zero Gravity Scholarship has been vital”**
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## **2023 Fundraising Achievements**
A key focus for the reporting period was to diversify Zero Gravity Fund’s fundraising sources and to increase the number of scholarships provided yearon-year. We made huge strides, expanding our supporter base from 13 in 2022 to 95 in 2023, a sevenfold increase. Corporate donations tripled, driven by contributions from major partners like UBS Optimus Foundation, KKR, Norton Rose Fulbright, Osborne Clarke, and INETEC.
We also hosted our first-ever fundraising event, which raised £222,327 in profit and brought over 150 attendees together to support our mission. Total income for the reporting period was £988,243.
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## **Our work with UBS Optimus Foundation**
UBS Optimus Foundation funded £150,000 in scholarships to support 50 students from lowopportunity backgrounds in Manchester, Birmingham, and London. These students began university in September 2023.
Furthermore, Zero Gravity Fund has also been added to UBS Optimus Foundation’s UK Education Collective Portfolio. UBS will recommend Zero Gravity Fund to its private clients and add a 10% matching contribution to any commitment.
## **“**
**UBS Optimus Foundation is a proud supporter of Zero Gravity and their mission to spot and unlock unrecognised talent. Their innovative use of technology and data is levelling the playing field for disadvantaged students, breaking down the barriers to higher education and fulfilling careers.**
**They are addressing not just the opportunity gap but also the financial challenges faced by students in the midst of a cost-ofliving crisis. Our partnership with Zero Gravity is not just empowering individuals, it is helping to create a more equitable, opportunity-rich society.**
**”**
**Sarah Payne, UK Head of Social Impact and Philanthropy, UBS**
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## **Fidelity International**
## **“**
In collaboration with Fidelity International, Zero Gravity Fund administered Fidelity’s Future Forward Scholarship programme. This bespoke initiative provided students with a £5,000 grant annually, amounting to £15,000 across the programme. Zero Gravity Fund awarded six Fidelity scholarships in 2021 and an additional four in 2022, leading to a total of £150,000 in scholarships.
The initial cohort of six scholars from 2021 received their final grant in September 2023 and are set to graduate in 2024. The 2022 cohort received their second £5,000 grant in September 2023, with their final instalment due in September 2024.
**The Fidelity Future Forward Scholarship gave me the financial means to live in London and have the same university experience as my peers, who might take things such as food, shopping, paying rent, or heating for granted. It also helped accelerate my career development.**
**Through my scholarship, I was able to access more opportunities via the Zero Gravity platform. For example, I accessed an opportunity with KPMG. I was matched with a mentor who helped me not only learn about KPMG and its intricacies but also figure out what I actually want to do within the sector.**
**”**
**Maitri, King’s College London**
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## **Our first ever Zero Gravity Fund Event**
In March 2023, Zero Gravity Fund held its first-ever fundraising event and it defied expectations. The event at 180 The Strand brought together 150 passionate individuals, all committed to driving social mobility and opening doors for talented students from low-opportunity backgrounds. Together, we raised £222,327 to fund scholarships, which came from profit on table sales, a live auction, and pledges made on the night. Crucially, 100% of this profit went directly to supporting students, powering scholars in our 2022 and 2023 scholarship cohorts.
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## **Meet Taylor**
Learn how Taylor landed his dream spot at Imperial College London and secured a Zero Gravity Scholarship.
**“I wouldn’t be at Imperial College if it wasn’t for Zero Gravity.”**
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## **2023 Scholarship Deployment**
In 2023, 225 new scholars received a Zero Gravity Scholarship to make their ambitions real. They came from low-opportunity areas from across the UK and have bags of potential.
**£675k 225 + 48**
**the amount of funding deployed directly to students in 2023, more than ever before.**
**the number of new scholars funded. the number of universities scholars are studying at.**
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## **Who are our 2023 scholars?**
**The best of the best Students who have defied academically. the biggest odds.** The 2023 cohort includes the most socially They are the best contextual mobile and diverse talent from across the academic performers. Our 2023 cohort achieved big things UK. at A-Level. were in the lowest socioeconomic groups, **achieved A*A*A*** with the lowest levels of household **or more. 60% 22%** incomes across the UK. **achieved AAA** of scholars were on free school meals. **or more . 70% 31% achieved BBB** of scholars were first in their families **or more . 93% 49%** to go to uni. of scholars from low-opportunity backgrounds. **100%**
**The best of the best academically.**
**The most deserving and diverse talent.**
We’ve designed the scholarship selection algorithm to be completely gender and ethnicity-blind. Our Trustees also review the process. They check for bias and that the demographic of our scholarship cohort closely reflects the diverse makeup of the Zero Gravity community.
Asian - 24% Black - 22% Chinese - 4% Mixed - 4% Other - 3% Traveller - 1% White - 42%
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## **Breaking into the best universities**
2023 scholars broke into the best universities in the country and studied a huge range of subjects.
**The top ten most popular universities attended by 2023 scholars**
**Subjects being studied by 2023 scholars:**
Medicine/ Finance - 4% Humanities - 13% Dentistry - 15% Languages - 7% Architecture - 1% STEM - 35% Law - 14% Social Science -10% Music - 1%
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0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
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## **Scholarship Cohorts**
During 2023, Zero Gravity Fund also continued to deploy scholarships to its 2021 and 2022 cohorts, while also administering Fidelity’s Future Forward Scholarship programme.
## **Deployments made to date:**
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Scholarshi s Awards
p
# Instalments Total Scholarships
Cohort Year Cohort Size Years Annual (£)
Made As At FY End Awarded (£)
Zero Gravity
36
2021 3 3/3 £1,000 £108,000
Scholarshi
p
Zero Gravity
200
2022 3 2/3 £1,000 £600,000
Scholarshi
p
Zero Gravity
225
2023 3 1/3 £1,000 £675,000
Scholarshi
p
Fidelity Future
6
2021 3 3/3 £5,000 £90,000
Forward
Fidelity Future
4
2022 3 2/3 £5,000 £60,000
Forward
£1,533,000
**----- End of picture text -----**
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## **Spending their scholarships wisely**
Our current scholars faced escalating financial difficulties due to the cost-of-living crisis, underscoring the significance of Zero Gravity Scholarships in 2023. The social impact of each scholarship was evident. On average, scholars saved 100 hrs per year by not having to work part-time. They were 44% less likely to work parttime to fund themselves through university, and only 11% worked more than 10 hours per week.
**“ Being able to purchase a laptop has had the biggest impact. Without it, I would find it incredibly difficult to get anywhere in my degree. I’ve used it to help improve my work environment since I spend a long time at a desk. Also, being able to fund clubs and actively participate in university-run events has overall improved my life, boosting my friendships and confidence.**
**Scholar spend in the 22/23 academic year** Tech- 35% Transport - 7% Books - 1% Career - 3% **£** Clothes - 14% Extra-curricular - 4% Groceries - 15% General - 11% Rent - 5% University Societies - 5%
**” Cecilia, Lancaster University**
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## **Scholars are making their career ambitions real**
As well as using scholarship funds to power career ambitions, scholars receive career opportunities and support through the strategic partnership with Zero Gravity.
The Zero Gravity platform provides career mentoring, access to upskilling masterclasses, and direct access to personalised career opportunities like internships and graduate roles for Zero Gravity scholars.
These resources now span ten different industries, including finance, consulting, investment banking, law, STEM, and tech, among others. Partnerships are diverse, covering the UK’s largest graduate employers, like Jaguar Land Rover and KPMG, as well as innovative companies like Octopus Energy, who are providing a cost-effective solution to renewable energy.
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- **Monitoring impact throughout scholars’ degrees**
Zero Gravity Fund monitors four intermediate KPIs to continuously assess impact and identify improvement areas throughout scholars’ undergraduate degrees.
**University drop out rate**
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Reduced need for part-time work
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8.8%
Zero Gravity
Scholars are
72% less likely
to drop out of
university.
2.5%
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69%
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39%
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**Zero Gravity Scholars are 44% less likely to work part time at university.**
The national context **Zero Gravity Scholars** for low-opportunity **(2022 Cohort)** students
The national context **Zero Gravity Scholars** for low-opportunity **(2022 Cohort)** students
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**Students accessing professional work experience in the last 12 months**
**Zero Gravity Scholars were 2.9x more likely to gain professional level work 50% experience in the last 12 months. 17%** The national context **Zero Gravity Scholars (202 1 Cohort)**
The national context for low-opportunity students
**Students achieving a 2:1 or better**
**92%**
**78%**
**Zero Gravity Scholars (2022 Cohort)**
The national context for low-opportunity students
**Zero Gravity Scholars are 17% less likely to achieve a 2:1 or better.*** *based on intermediary exams.
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## **Meet Antonia**
Learn how Antonia was propelled into Cambridge and how the Zero Gravity Scholarship is helping her defy the odds.
**“Getting into uni is one part of the journey. Being able to survive is another.”**
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## **What’s next?**
Zero Gravity Fund’s mission is to build the UK’s leading scholarship programme for talented students from low-opportunity backgrounds. Our goal is to unlock their potential, supporting them through university and helping them secure their dream careers.
**1 There are three priorities: 2 3**
Zero Gravity Fund will scale its impact by awarding even more scholarships to talented students from low-opportunity backgrounds, while providing comprehensive career support to help them secure internships and launch successful careers.
In 2024, the majority of the 36 scholars in our 2021 pilot cohort will complete their undergraduate degrees. Zero Gravity Fund will measure and analyse the impact of the pilot scholarship cohort as they leave university and enter careers, implementing learnings and improvements to enhance the scholarship programme for future cohorts.
Zero Gravity Fund will act as a key facilitator for existing scholarship and bursary providers, increasingly working with universities, corporates, and philanthropic organisations. Leveraging the partnership with Zero Gravity, this approach aims to reduce their administrative costs and allocate a greater proportion of funds directly to low-opportunity students.
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2 Reference and
Administrative
Information
ZERO
GRAVITY
- **Reference and Administrative Information**
## **Charity Details**
## **Trustees**
Zero Gravity Fund is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission in England and Wales. The charity was incorporated on 25th February 2020.
Registered Charity Number: 1188177
Registered Office: First Floor, 10 Queen Street Place, London, EC4R 1BE
Charity’s trustees on the date the report was approved and/or who served as a trustee in the reporting period are:
## **Other relevant organisations**
## **Website**
zerogravity.co.uk/fund
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3 Structure.
Management
and
Governance
ZERO
GRAVITY
## **Structure, Management and Governance**
## **Relationship with Zero Gravity Tech Ltd**
Zero Gravity Fund has a strategic partnership with Zero Gravity Tech Ltd.
Zero Gravity Tech Ltd is a private limited company registered in England and Wales (Registered Company Number 12091675) whose registered office is 6th Floor, One London Wall, London, EC2Y 5EB.
Zero Gravity Tech Ltd has also agreed to provide financial support to Zero Gravity Fund. This financial support includes funds raised through fundraising activities or events organised by Zero Gravity Tech Ltd from time to time and an annual drawdown facility of up to £10,000 provided by Zero Gravity Tech Ltd restricted to Zero Gravity Fund’s governance costs. As a result, 100% of restricted income goes straight to scholars and they can also benefit from the extensive career support provided by Zero Gravity Tech Ltd.
Zero Gravity Tech Ltd provides employee time, expertise and other resources to Zero Gravity Fund in direct support of its grant-making activities, programme delivery and the management and administration of its affairs. The services are provided free of charge and are subject to a Strategic Partnership Deed; this means Zero Gravity Fund does not employ any staff.
Zero Gravity Tech Ltd’s services, as part of the strategic partnership with Zero Gravity Fund, are reflected in the financial statements as donated services and valued at £161,074. These costs are based on Zero Gravity Tech Ltd employees directly involved in the running of Zero Gravity Fund and additional resources provided (e.g. fundraising consultant costs, technology costs related to scholarship deployments, office space, and costs related to Zero Gravity prepaid cards used to deploy scholarships to students).
## **Organisational Structure**
Zero Gravity Fund is governed by a Board of Trustees. Zero Gravity Fund does not have any corporate trustees and details of the Trustees who served during the period are included in the Reference and Administrative section. The board convenes a minimum of four times annually, ensuring consistent independent oversight and strategic direction.
## **Delegation of Authority**
The Board of Trustees is responsible for risk management and final decision-making, with day-to-day operational responsibility delegated to Zero Gravity Tech Ltd through a Scheme of Delegated Authority (SODA) and Strategic Partnership Deed (SPD) which has been approved by the Trustees. Joe Seddon attends Trustee Meetings in his capacity as CEO of Zero Gravity Tech Ltd to provide the Trustees with updates on the strategic partnership
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## **Structure, Management and Governance**
activities between Zero Gravity Fund and Zero Gravity Tech Ltd.
Zero Gravity Fund’s fundraising activities are primarily carried out by Zero Gravity Tech Ltd staff with the support of Trustees and ambassadors. During the reporting period, Zero Gravity Tech Ltd also worked with fundraising consultants who supported fundraising strategy and execution related specifically to Trust and Foundations. These costs were incurred by Zero Gravity Tech Ltd and reflected in the financial statements under donated services. Trustees monitored the consultants’ work and all work abided by the Code of Fundraising Practice outlined by the Fundraising Regulator.
for prospective candidates, offering a clear understanding of the expectations and responsibilities associated with the role. The second is an evaluation grid, designed to facilitate a rigorous recruitment process, ensuring that only the most qualified and suitable candidates are selected. The recruitment process is overseen by the Chair of the Board of Trustees, emphasising the importance of selecting new charity Trustees who will contribute the necessary skills, knowledge, and experience to expand Zero Gravity Fund’s social impact and maintain efficient administration.
## **Induction and Training of Trustees**
## **Recruitment and Appointment of New Trustees**
Zero Gravity Fund is committed to maintaining a Board of Trustees that is both diverse and balanced. To ensure the Board's effectiveness, an annual Skills Audit is completed. If there are any identified skills or knowledge gaps, the Board of Trustees actively seeks to enhance its composition by adding members who can fill these gaps. Two new Trustees were appointed during the reporting period. Mark Tucker was a Trustee during the reporting period but stepped down on 18th December 2023 due to increasing work commitments.
Upon appointment, new Trustees undergo a thorough onboarding process to equip them with an understanding of Zero Gravity Fund. This onboarding includes a comprehensive overview of Zero Gravity Fund’s objectives, strategies, activities, and aims, alongside an introduction to its governance framework, most recent financial reports, and the latest board documents and minutes. Additionally, Trustees are provided with an overview of the strategic partnership between Zero Gravity Fund and Zero Gravity Tech Ltd. Following this, the training needs of each Trustee are assessed on an individual basis and access to training is offered where necessary.
The requirements and criteria for trusteeship are comprehensively detailed in two documents. First, a Trustee role description document, which acts as a guide
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## **Structure, Management and Governance**
## **Remuneration of Trustees**
Trustees of Zero Gravity Fund are not paid or remunerated, they volunteer their time for free.
Zero Gravity Fund does not employ any staff and therefore there are no processes for setting pay and remuneration.
## **Volunteers**
Zero Gravity Fund does not have any volunteers. However, as part of the strategic partnership between Zero Gravity Fund and Zero Gravity Tech Ltd, Zero Gravity Tech Ltd provides employee time, technological capabilities, and the necessary resources to facilitate the delivery of the scholarship programme.
## **Public Benefit**
The Trustees confirm that they have complied with the duty in section 2(1)(b) of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit.
## **Funds held as custodian trustee on behalf of others**
Zero Gravity Fund and its Trustees do not act as a custodian trustee for any other party.
## **Principal Risk and Uncertainties**
The Trustees maintain a comprehensive risk register to identify, evaluate, mitigate, and monitor risks across Zero Gravity Fund’s key activities. These cover financial, operational, governance, regulatory, and external risks. To ensure effective risk management, all Trustees review the Zero Gravity Fund risk register at each board meeting. Trustees ensure that all risks have been identified and that appropriate mitigations are in place to manage Zero Gravity Fund’s exposure. Below are a few areas of key risks:
- A key risk identified by the Trustees is that sustained high inflation means that the £3,000 Zero Gravity Fund scholarship is decreasing in value in real terms. The Board of Trustees reviewed the amount in December 2023. Trustees considered the purchasing power associated with the Zero Gravity scholarship, scholar spending during the 2022/23 academic year, part-time hours worked by scholars,
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## **Structure, Management and Governance**
and the general macroeconomic environment. The Board agreed to maintain the scholarship value at £3,000 and will continue to consider the amount annually and whether to increase it in line with inflation.
conjunction with the Scholarship Disbursement Policy, which regulates that all scholarships should be fully funded for the full three years prior to the first disbursement. Therefore Zero Gravity Fund will be able to meet its future scholarship liabilities.
• Second, is that the strategic partnership between Zero Gravity Tech Ltd and Zero Gravity Fund leads to over-reliance on Zero Gravity Tech Ltd, and unmanaged conflicts of interest occur. A Strategic Partnership Deed codifies the relationship between Zero Gravity Tech Ltd and Zero Gravity Fund, ensuring clear lines of communication and accountability. The Board of Trustees is fully independent, with no Trustees having any direct connection to Zero Gravity Tech Ltd, thereby eliminating potential conflicts of interest and enhancing the Board’s objectivity. Finally, a Scheme of Delegated Authority has been established, providing an additional layer of oversight and governance to safeguard the integrity of the financial operations.
• Zero Gravity Fund has a strategic partnership with Zero Gravity Tech Ltd, a startup with its own financial risks. There is a risk that Zero Gravity Tech Ltd, which provides services for free to Zero Gravity Fund, will become insolvent. As a shareholder in Zero Gravity Tech Ltd, Zero Gravity Fund has significant information rights, and Trustees can therefore monitor Zero Gravity Tech Ltd’s financial performance and long-term viability. Furthermore, all scholarship funds are restricted and held by Zero Gravity Fund. Further, Zero Gravity Fund’s Reserve Policy was designed in
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4 Financial
Review
ZERO
GRAVITY
## **Financial Review**
## **Review of Zero Gravity Fund’s Financial Position**
Zero Gravity Fund’s charitable object is to raise funds to advance the education and career prospects of talented students from low-income backgrounds by providing scholarships. The majority of funding comes from high-net-worth individuals and corporate donations, complemented by income from trading activities linked to our inaugural fundraising event.
Under the Zero Gravity Fund’s 100% model, every scholarship donation, along with any accompanying gift aid, is directly deployed to students, with no administration fees. During the period 1st January 2023 to 31st December 2023, income was £988,243 and expenditure was £1,012,598. The amount of the total funds Zero Gravity Fund held at the end of the reporting period was £357,717 including an expendable endowment of £337,500.
Zero Gravity Fund received £592,064 in restricted income, coming from grants and donations, including commitments from the UBS Optimus Foundation and the Institute for Nuclear Technology (INETEC). Unrestricted income totalled £232,061 during the reporting period, related to income from fundraising activities. Designated income totalled £164,118 and includes donated services received.
Total restricted expenditure totalled £680,951. Expenditure on charitable activities, or scholarships deployed, equalled £675,000 (before accounting present value
adjustments, see note 6.4). Restricted expenditure related to audit and accountancy costs totalled £10,000. Designated expenditure, representing expenditure on fundraising activities, totalled £166,932. Finally, unrestricted expenditure totalled £164,715, this includes donated services from Zero Gravity Tech Ltd valued at £161,074.
Zero Gravity Fund receives cash donations to fund scholarship commitments to students which typically cover a three year period. This leaves Zero Gravity Fund with a material cash balance to manage. The total cash at bank and in hand at the end of the period was £227,991.
## **Reserve Policy**
Zero Gravity Fund’s Reserves Policy is designed to mitigate operational risks and ensure long-term financial sustainability. This policy is reviewed and re-approved by the Trustees annually, with the most recent review conducted on 18th December 2023.
As part of Zero Gravity Fund’s strategic partnership with Zero Gravity Tech Ltd, Zero Gravity Tech Ltd provides services related to the scholarship programme and also fundraises for scholarships on behalf of Zero Gravity Fund. This partnership allows Zero Gravity Fund to manage predictable expenditure on scholarships, which constitute the majority of expenditure. Furthermore, the Reserve Policy is aligned with the Scholarship Disbursement Policy, ensuring that all scholarships are fully funded before deployment, thus minimising the
**38**
## **Financial Review**
risk of unmet future liabilities. The only overhead costs that Zero Gravity Fund has are directly incurred governance costs.
As such, the Reserve Policy mandates maintaining reserves covering at least 12 months of forecasted governance and administrative costs, which include accountancy and audit fees, insurance, legal fees, and trustee expenses. As of yearend, the unrestricted reserves stood at £5,443.
To build up reserves in the future, Zero Gravity Fund will allocate investment income from non-advanced scholarship funds (which are due to scholars in future years) to its reserves. If this income exceeds 12 months forecast governance costs then Trustees, at their discretion, can choose to allocate this excess income to scholarships. Zero Gravity Fund’s potential reserves includes an annual restricted donation of up to £10,000 from Zero Gravity Tech Ltd to cover governance and administrative costs (e.g. audit and accounting).
Based on current forecasts, the Trustees believe this level of unrestricted reserves will be sufficient to cover at least 12 months of governance costs over the next financial year.
## **Financial Effect of Significant Effects**
On 9th March 2023, Zero Gravity Fund hosted its inaugural fundraising event at 180 Strand. The event celebrated Zero Gravity Fund’s progress since its launch and targeted high-networth individuals and corporate donors. The primary objective was to generate a profit of £200,000. The key income streams included table sales, donations made on the night, and profits from a live auction. Table sales were recognised in this reporting period and amounted to £112,994, and the budget for the fundraising event was set at £70,000. The total event profit (including pledges and donations on the evening) was £222,327.
## **Financial Investments**
In the reported period, Zero Gravity Fund maintained its ownership of 25,000 ordinary shares in Zero Gravity Tech Ltd, valued at £337,500 as per Zero Gravity Tech Ltd’s last priced funding round in December 2021. The valuation of these shares remained constant throughout the reporting period. The Trustees have chosen not to base any financial decisions, such as deploying scholarships or acquiring loans with the shares as collateral, on this valuation. This decision stems from the illiquid nature of the shares and the unpredictability of their future value.
During the reporting period, Zero Gravity Fund established an investment policy. The policy outlines the approach for managing Zero Gravity Fund’s significant cash
**39**
## **Financial Review**
balances, which arise from donations intended to fund scholarships over a three-year period. The policy aims to balance investment income generation with the preservation of capital to fulfil scholarship commitments when they become liable. The policy outlines the allocation of investment returns. This reserve, intended to cover governance costs and administrative expenses, must maintain a minimum level equivalent to 12 months of governance expenses. Any investment returns beyond what is needed for the reserve can be allocated towards Zero Gravity Fund’s charitable activities, furthering its mission. No funds were invested in the period.
## **Social Investments**
Social investment does not form any part of Zero Gravity Fund’s charitable activities. Therefore, no related investments contributed to the achievement of its aims and objectives in the reporting period.
of the pledged donation. Given the unrestricted reserves are unlikely to be sufficient to cover the gap left in the restricted scholarship fund, non-payment could have a significant impact on Zero Gravity Fund’s ability to meet its future scholarship liabilities. To mitigate this risk, Zero Gravity Fund reviewed its Deed of Gift during the reporting period, ensuring it was a formal legal agreement that was enforceable, although the Trustees acknowledge there may be occasions where the Deed of Gift is not practically enforceable. To reduce future risk, Zero Gravity Fund outlined a Deed of Gift policy, which outlined strict criteria for entering into a Deed of Gift agreement. Further, controls such as donor engagement and clear payment timelines were implemented.
Additionally, Zero Gravity Fund could be faced with insufficient reserves for unforeseen governance expenses due to its 100% scholarship model, where all restricted income is directly allocated to scholarships. This optimises charitable activities but limits flexibility in managing unexpected governance or administrative costs. To address this, Zero Gravity Fund has secured an annual £10,000 restricted donation from Zero Gravity Tech Ltd specifically to support governance or administrative expenses. Moreover, the Board of Trustees reviews reserves and projected governance costs for the upcoming quarter at each board meeting.
## **Financial Risk and Mitigations**
The primary financial risk faced by Zero Gravity Fund is in the event that a promised donation outlined in a Deed of Gift agreement is not fulfilled, whether due to inability, revocation, or any other reason leading to the non-execution
## **Grant Making**
Zero Gravity Fund’s grant-making policy directly contributes to the achievement of
**40**
## **Financial Review**
its aims through the provision of scholarships to support students’ undergraduate studies and career prospects. All scholarships fall within Zero Gravity Fund’s charitable purposes and meet Zero Gravity Fund’s funding criteria. The Scholarships Disbursement Policy stipulates that scholarships are only deployed when they are fully funded for the full three-year period. During the period, expenditure on charitable activities, or scholarships deployed, equalled £675,000 (before accounting present value adjustments, see note 6.4).
## **Audit**
During the extended reporting period, there was no statutory requirement for an audit as gross income did not exceed the £1,000,000 threshold and gross assets did not exceed £3,260,000. However, the Trustees have decided that Zero Gravity Fund’s financial statements will be audited in order to meet the highest possible standard of financial governance. Bourner Bullock Chartered Accountants have been appointed as Zero Gravity Fund’s auditors.
## **Going Concern**
The Trustees believe that Zero Gravity Fund continues to be a going concern and Zero Gravity Fund does not have any fund or subsidiary undertaking that is materially in deficit.
**41**
5 Financial
Statements
ZERO
GRAVITY
- **Trustees’ responsibilities in relation to the financial statements**
The charity Trustees are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
The law applicable to charities in England and Wales requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the Trustees are required to:
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the applicable Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any material departures that must be 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 financial statements were approved by the Trustees and authorised for issue on
## 30/10/2024
............................................. and were signed on its behalf by: ........................................................................
## **Kirsty Prest, Chair**
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act
**43**
## **Auditor’s Report on Financial Statements**
## **Opinion**
## **Basis for opinion**
We have audited the financial statements of Zero Gravity Fund (the ‘charity’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows 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).
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.
In our opinion, the financial statements:
## **Other matters**
- 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 for the year then ended;
Without qualifying our opinion, we would like to draw your attention to the fact that the prior year figures are unaudited.
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
**44**
## **Auditor’s Report on Financial Statements**
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.
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.
## **Matters on which we are required to report by exception**
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial
- the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or
- sufficient 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 on page 43, 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
**45**
## **Auditor’s Report on Financial Statements**
to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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.
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.
**Auditor’ responsibilities for the audit of the financial statements**
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act 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
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting regulations, Charities Act 2011.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include GDPR Legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of:
**46**
## **Auditor’s Report on Financial Statements**
enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **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. 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.
Signature
.....................................................................
Chartered Accountants 114 St Martin’s Lane Covent Garden London WC2N 4BE 30 10 2024 .................... / .................... / ....................
**Bourner Bullock** Date
Bourner Bullock is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
**47**
Statement of Financial Affairs
l January 2023 to 31 De¢ember 2023
Notes
UnrestrSctèd
Designated
Restrlcted
Expendable
Endowment
Total Funds
Dec 2023
Total Funds
l Aug 2021- 31 De¢ 2022
Unaudited and Restated
Income and Endowments
Grants and Donations
3,044
592.064
595,108
851.001
Incom8 from Fundraising Activities
232.061
232.061
Donated Services Received
161,074
161,074
27,568
Total Income
164,118
232,061
692,064
988,243
878.569
Expendlture
Expenditure on charitable activities
670,951
670.951
841,989
Expenditure on fundralslng activitles
166,932
166.932
9,000
Expenditure on governance costs
3.641
10.000
13.641
17.842
Expenditure on operatlng costs - donated servlces recelved
161,074
161,074
27,568
Total Expendlture
164.716
166,932
680,951
1,012,598
896.399
Net Incomellexpendlturej and net movement In funds before
gain$ and losse$ on investment•
1597)
66,129
188,8871
124.356)
[17.8301
other Income
Gift in kind
337.500
Interest income
747
11.124
11.871
Total Other Income
747
11,124
11,871
337,500
Net Movement In funds
150
65,129
(77,7631
112,484)
319,670
Reconciliation of funds
Total funds bought forward
5.689
27.012
337.500
370.201
50.531
Transfer between f unds
6.12
(3961
165,1291
65,525
Total funds carried forward
5.443
14.774
337.500
367.717
370.201
ZERO
GRAVITY
48
## **Balance Sheet**
The financial statements were approved by the Trustees and authorised for issue on 30/10/2024 ............................................. and were signed on its behalf by: ........................................................................ Kirsty Prest, Chair
**49**
Statement of Cash Flows
January . De¢embor 2023
Perlod to December 2022
Unaudlted and Restated
Reconciliation of net movement in funds
Net expenditure for the reporting period
las per the statement of f inancial activitiesl
112,4841
319.670
Deduct glft of endowment
1337.5001
Interest on financing activitie8
111,8711
Iln¢reasel decreose in debtors
42,975
1512.5511
Increase Idecreasel In credltors
56,497
620,319
Not ea¥h generated by operatlng actlvltle•
75.117
89.938
Flnan¢lnq A¢tlvltlo8
Nat movement In flnancing activitlas
11,871
Net cash generated by financinq activities
11,871
Change In cash at bank and In hand at year end
86.988
89.938
Cash and Cash Equlvalent•
Cash and cash equivalents at beginning of period
140,470
60,531
Net change in cash for perlod
86,988
89.938
Cash and cash equlvalents at end of perlod
227,458
140,470
ZERO
GRAVITY
50
6 Notes to
the Financial
Statements
ZERO
GRAVITY
## **Notes to the Financial Statements**
## **6.1 Accounting Policies**
The principal accounting policies adopted, areas of adjustment, and key assumptions are as follows:
## **6.1.1 Basis of preparation**
The financial statements have been prepared in accordance with ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition)’ and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following ‘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) (Second Edition)’ rather than the Accounting and Reporting by Charities:
Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The prior period figures are unaudited.
## **6.1.2 Preparation of accounts on a going concern basis**
The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. The review of its financial position, reserve levels, and future plans gives the Trustees confidence that the charity remains a going concern for the foreseeable future.
## **6.1.3 Funds structure**
## **Restricted funds**
Restricted funds are received from donors specifically for scholarships, which the Trustees award in September each year. The charity awards three-year scholarships to students when the donation is fully funded either via an upfront payment or the commitment is confirmed via a signed Deed of Gift, of which the first instalment is paid.
The charity also receives an annual grant from Zero Gravity Tech Ltd, which is restricted
**52**
## **Notes to the Financial Statements**
to governance costs.
## **Unrestricted funds**
Unrestricted funds are available for use at the discretion of the Trustees and in furtherance of the general objectives of the charity.
There are two main sources of unrestricted funding: selling tickets to fundraising events and interest from the charity’s bank balance. The profits from fundraising events will be used exclusively to fund scholarships.
amount and the settlement date. If a donation is subject to conditions requiring a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either the conditions are fully met or the fulfilment of the conditions is wholly within the charity’s control and it is probable the conditions will be fulfilled in the reporting period.
Income which is recognised but is due over more than one year from the closing balance sheet is recognised at its discounted present value. This is a change in accounting policy compared to the prior year when discounting to present value was not applied.
## **Expendable endowments**
There is also an expendable endowment fund, consisting of shares in Zero Gravity Tech Ltd, created by a gift in kind from a previous Trustee. This gift in kind came with no restrictions.
## **6.1.4 Income recognition**
All income is recognised once the charity has entitlement to it, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Donated services are services and resources the charity would otherwise have purchased. These are included at their value to the charity and cover Zero Gravity Tech Ltd employees directly involved in running Zero Gravity Fund, donated office space, and additional resources provided (e.g. fundraising consultant costs, technology costs related to scholarship deployments, and costs related to pre-paid cards used to deploy scholarships to students).
Interest on funds held on deposit is included when receivable, and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Donations, including gift aid where applicable, are recognised when funds are received or when there is a signed Deed of Gift confirming both the donation
**53**
## **Notes to the Financial Statements**
## **6.1.5 Expenditure recognition**
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 settlement will be required, and the amount of the obligation can be measured reliably.
## **6.1.6 Irrecoverable VAT**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
## **6.1.7 Allocation of support and governance costs**
All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated to the applicable expenditure headings.
Expenditure on charitable activities refers to scholarships. Scholarships payable are payments made to students in furtherance of the charitable objects of Zero Gravity Fund. Scholarships are deployed annually over a three-year academic period in three equal tranches. The scholarships have performance conditions attached to continue to be eligible for funding, but the charity expects the vast majority of students to fulfil these conditions. Therefore, there is a reasonable expectation that students will receive the full scholarship amount over the three-year period.
The provision for scholarships is recognised at its discounted present value where settlement is due over more than one year from the date of the award. This is a change in accounting policy compared to the prior year when discounting to present value was not applied.
Support costs have been allocated between governance, fundraising, and operating costs.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include audit and accounting fees, legal fees, and insurance.
Fundraising costs comprise all costs involved in raising funds for the charity. This includes organising and hosting fundraising events.
Operating costs comprise all the costs to support the administration and broader operations of the charity that do not directly contribute to the charitable activities themselves. These costs are covered by Zero Gravity Tech Ltd as per the Strategic Partnership Deed. Zero Gravity Tech Ltd provides donated services and funds the cost of deploying and administering scholarships.
**54**
## **Notes to the Financial Statements**
## **6.1.8 Expenditure on charitable activities**
carrying value. Both realised, and unrealised investment gains and losses are combined
in the Statement of Financial Activities.
Expenditure on charitable activities covers the deployment of scholarships, as shown in note 6.4.
## **6.1.11 Financial Instruments**
## **6.1.9 Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at cost and subject to an impairment review each year.
The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The charity does not acquire put options, derivatives, or other complex financial instruments.
## **6.1.10 Realised gains and losses**
All gains and losses are recognised in the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between the sales proceeds and their opening carrying value or their purchase value if acquired after the start of the financial year. Unrealised gains and losses are determined by the difference between the present value at year-end and their
The Charity has applied the provisions of FRS 102, Section 11, ‘Basic Financial Instruments’ and Section 12, ‘Other Financial Instruments Issues’. Financial assets and liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. The Charity initially recognises a financial asset or a financial liability at transaction price, for debtors and other creditors this is the settlement amount.
Scholarship commitments and debtors due after one year are discounted to reflect present value (see specific accounting policies below).
## **6.1.12 Cash**
Cash at bank and in hand includes cash in hand and deposits held with UK banks.
**55**
## **Notes to the Financial Statements**
## **6.1.13 Debtors**
Trade debtors and other debtors are initially recognised at their transaction price.
Debtors falling due to the charity after more than one year are discounted to their present value. This is an annual calculation and is debited against income. The release in the following year(s) is credited to interest income.
## **6.2 Grants and donations**
## **6.3 Income from fundraising activities**
## **6.1.14 Creditors**
Trade creditors and other creditors are initially included at their nominal value when there is a contractual obligation to settle.
Creditors falling due after more than one year are discounted to their present value. This is an annual calculation, and the movement is recorded in scholarship costs.
## **6.4 Analysis of charitable expenditure**
The charity undertakes its charitable activities through awarding scholarships to students in furtherance of its charitable objects.
**56**
## **Notes to the Financial Statements**
For the reporting period from 1 January 2023 to 31 December 2023, scholarships totalling £675,000 were awarded from restricted funds. Students receive the funds in three equal instalments of £1,000 at the start of each academic year in September. During the reporting period, scholarships amounting to £225,000 were disbursed to students. The remaining balance will be paid in the second and third year of students’ degrees, September 2024 and September 2025 respectively.
Scholarships which are payable more than one year after the year end are discounted to present value. This is an annual calculation performed each year, and the movement in present value is recorded against the scholarship expense. The movement in 2023 was £(4,049), 2022: £(16,011).
**6.5 Analysis of governance, fundraising and operational costs**
Governance costs are funded by a £10,000 restricted governance cost grant from Zero Gravity Tech Ltd and general unrestricted funds.
Fundraising costs comprise all costs involved in raising funds for the charity. This includes the costs associated with organising and hosting fundraising events and also the cost of items sold in the auction. The costs of organising and hosting the fundraising event are funded by selling tables for the event, where income from table sales is designated to fund the event costs, with any surplus being re-allocated to funding scholarships.
**57**
## **Notes to the Financial Statements**
The charity has recognised £161,074 in donated services associated with its strategic partnership with Zero Gravity Tech Ltd (see Note 7.15). Where donated services are acknowledged, an equivalent amount is included as expenditure under operating costs - donated services received. These costs total £161,074 (2022: £27,568). Zero Gravity Fund has no other operating costs.
## **6.7. Other income**
## **6.6 Donated services received**
The charity has no employees. The costs of donated services are based on Zero Gravity Tech Ltd employees directly involved in the running of Zero Gravity Fund, donated office space, and additional resources provided (e.g. fundraising consultant costs, technology costs related to scholarship deployments, and costs related to Zero Gravity pre-paid cards used to deploy scholarships to students).
The charity received shares in Zero Gravity Tech Ltd during the period 1 August 2021 - 31 December 2022. In the reporting period, Zero Gravity Fund maintained its ownership of 25,000 ordinary shares in Zero Gravity Tech Ltd, which were last valued at £337,500 in Zero Gravity Tech Ltd’s seed round on 31 December 2021. The valuation of these shares remained constant throughout the reporting period as Zero Gravity Tech Ltd did not issue any shares at a different valuation.
There are no restrictions on how the shares may be used by Zero Gravity Fund or the Trustees and hence when this capital may be converted into income. Therefore, it is treated as an expendable endowment.
## **6.8 Fixed asset investments**
**58**
## **Notes to the Financial Statements**
## **6.9 Analysis of debtors**
The scholarship liabilities relate to future payments due to students within one year who have been awarded a three year scholarship by the charity and are paid from restricted funds. Accruals relate to governance and fundraising costs, which are paid from restricted and unrestricted funds.
Deferred income, £10,000 (2022: £100,000), relates to income due to the charity in respect of fundraising activities where the event is due to take place after the year end. The prior year deferred income was recognised in the year to 31 December 2023.
Accrued income relates to income which has been confirmed in a Deed of Gift with a specific payment amount and payment timeline. Accrued income includes £103,000 (2022: £187,500) income which is receivable in more than one year.
## **6.10 Analysis of creditors due within one year**
**6.11 Analysis of creditors due after more than one year**
The scholarship liabilities relate to future payments due to students after one year who have been awarded a three year scholarship by the charity and are paid from restricted funds.
**59**
## **Notes to the Financial Statements**
## **6.12 Analysis of charitable funds**
## **6.13 Prior period restatements**
These accounts have restated the prior year in respect of the following items:
- Income from trading activities was recognised in the prior year accounts, but this has now been amended in the comparatives, with income recognised in the year ending 31 December 2023, when the event took place. This has resulted in £100,000 of income being recognised as deferred income in 2022 and recognised as income in the Statement of Financial Activities in 2023.
- Scholarship commitments due more than one year after the year end have been discounted to their present value. This has reduced the 2022 scholarship expense and creditors by £16,011. The present value will be released during the following year in line with the timing of scholarship commitments.
- Income arising more than one year after the balance sheet date has been discounted to its present value. This has reduced 2022 debtors and reduced income by £9,899. The present value will be released during the following year in line with the timing of expected income receipts.
- A credit note has been recognised in the amended prior year accounts, reducing grant and donation income in 2022 by £10,000.
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## **Notes to the Financial Statements**
- The valuation of shares in Zero Gravity Tech Ltd has been corrected to £337,500 (a reduction of £37,500) based on the valuation of the company at 31 December 2022. This has reduced the cost the investment has been recorded at and the corresponding expendable endowment reserve. There are no further implications of this reduction.
## **Statement of Financial Affairs**
## **Balance Sheet**
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## **Notes to the Financial Statements**
## **6.14 Related party transactions and trustees’ expenses and remuneration**
The trustees all give their time and expertise freely without any form of remuneration or other benefit in cash or kind (2022: £nil). Expenses paid to the trustees in the year totalled £nil (2022: £nil).
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