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2020-12-31-accounts

ANNUAL REPORT & ACCOUNTS

APRIL 2020 TO DECEMBER 2020

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Contents

Reports
Trustees’ report 1
Independent auditor’s report 15
Accounts
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Notes to the financial statements 22
Reference and administrative information 42

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Vision

Excellent fundraising for a better world

Values

Our values underpin all our activities

Charitable objects

The objects for which the Institute is established are:

  1. to advance or promote the efficiency of organisations established for charitable purposes throughout the United Kingdom;

  2. to promote higher standards of administration and fundraising for charitable purposes throughout the United Kingdom; and

  3. to educate the public in relation to the matters referred to in Articles 3.1.1 and 3.1.2 throughout the United Kingdom.

Highlights

2020 will be remembered worldwide as the year of the COVID pandemic which destroyed lives and damaged families and communities around the world, the murder of George Floyd and the resurgence of the Black Lives Matter movement, focussing attention on structural racism in the US and around the world.

In the UK, the pandemic demonstrated the vital role of charities and civil society, responding to the direct needs of people suffering as a result of the pandemic, continuing to deliver their vital activities and focusing governments’ attention on the existing inequalities that were being exacerbated.

And we would first like to reflect on the amazing response from the fundraising community to the crisis. In the most challenging of conditions fundraisers around the UK continued to raise vital funds for their causes, despite lockdown conditions, engaging and inspiring

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

supporters in new and different ways to demonstrate their love of others and generosity throughout the pandemic. Truly exceptional.

In the policy and public affairs space, we strongly represented our members and the charity sector more broadly as part of the coalition which secured a £750 million emergency funding package from the Westminster government, and continued to make the case for more support for the sector throughout the year, as well as championing its achievements and impact.

From the perspective of the Chartered Institute, it signified not only the year of the pandemic, but our first as a Chartered body, and one in which we also adjusted our financial year end from March to December, with 2021 being a transitional year with a 9-month reporting period.

And it was a challenging year for the Chartered Institute whose activities are focussed on bringing fundraisers together to share and learn, normally through face-to-face engagement which was forced to be put on hold due to essential social distancing measures.

We pivoted quickly, ensuring all our activities continued in a virtual space, from our qualifications to Fundraising Convention; from our Groups’ networking activities to our member engagement with fundraisers from charities large and small. The virtual environment proved positive for growing our reach, but from a financial perspective impacted significantly on our income, creating the necessity to reduce our staff team while maintaining our support to the fundraising community.

As well as keeping focused on serving the needs of our members, we delivered our rebrand and new website, and continued the implementation of a new customer relationship management system (CRM) to enable us to better meet the needs of our members for years to come.

We also continued to innovate and expand the range of training and development open to the fundraising community, securing a the first every Fundraising Apprenticeship at Level 3, and becoming the End Point Assessment Centre for fundraising apprenticeships.

Our member engagement has been strong throughout the period, and we would particularly like to thank our volunteers around the UK, who have maintained and enhanced their support for the fundraising community over the year. Whether creating the programme for Fundraising Convention, organising networking events all around the UK, guiding our work on fundraising standards or our competency framework, or reaching out to different subsectors of the fundraising community, from the health sector to corporate fundraisers, from researchers in fundraising to trust fundraisers in Scotland, they have been simply amazing. Thank you all.

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Our achievements and impact in more detail:

Remember A Charity

Legacy income was the lifeblood for many charitable organisations in 2020, funding frontline services at a time when other income streams were heavily hampered by the pandemic.

Since the charitable consortium was founded twenty years ago, it has continued to help drive behaviour change in legacy giving. The number of charitable estates has grown by 22%, from 29,500 in the late 1990s to 36,000 in 2019, with now over 16% of wills containing a charitable gift.

In what was an extremely challenging year, Remember A Charity’s first priority was to support its members through times of uncertainty; providing regular communications and resources to help keep the legacy sector connected. Our usual face-to-face events were replaced with webinars. Our new Remember A Charity podcast brought together experts from the legacy sector to help answer questions and discuss key topics that are affecting legacy fundraisers during Covid-19.

Remember A Charity Week 2020 was our most successful ever, thanks in part to the timely return of the Wombles to help raise awareness of legacy giving, inspiring more than 55,000 people to visit our website during the campaign alone.

We were delighted to lead a legacy giving roundtable hosted by the Minister for Civil Society, Baroness Barran MBE, which brought together representatives from the Law Society, financial planners and the charity sector.

Will-writing itself saw a huge uplift during 2020, with many turning to online providers to ensure their affairs were in order. However, the surge in demand has not been without its challenges. The pandemic sadly led to a rise in death rates, an increase in incomplete grant applications and challenges to usual working practices, increasing the pressure on the probate system.

Remember A Charity worked collaboratively with its members and the wider charity sector to ensure HM Courts & Tribunals Service committed to addressing the probate backlog and minimise future delays to vital charitable income.

Equality, Diversity and Inclusion

We continued to prioritise our work on equality, diversity and inclusion (EDI) over the course of the period, launching our EDI Recruitment Guides in July and rolling out EDI training to all our staff and volunteers around the UK.

We commissioned an independent review of our handling of complaints about sexual harassment in December 2020, and in March 2021 we published an Action Plan to improve all aspects of our complaints policies, processes and handling. This included ensuring independent leadership of both oversight and handling of complaints through a new

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Professional Conduct Committee; setting up a new Safeguarding Task Group to develop a new, stronger organisation-wide approach to safeguarding and a Culture Commission to lead on work to create a truly inclusive culture within the Chartered Institute and the wider fundraising community.

Policy and public affairs

We worked closely with charity membership bodies to form a strong campaign to represent and champion the charity sector during the pandemic, raising the importance of fundraising and donations for charities during lockdown. The campaign aimed to inform and influence the Westminster government to implement a 5 Point Plan to support charities. As well as contributing to the evidence and work that resulted in the £750 million support package announced by the UK Government, the coalition has continued to engage with MPs, Civil Servants, and Ministers – providing evidence and advocating for the charity sector.

Since the beginning of the pandemic, we have been monitoring the impact on our sector through a regular ‘Covid Charity Tracker’ in collaboration with Pro Bono Economics and the Charity Finance Group to provide a credible and well-informed picture of the impact of the pandemic on charities, as well as track how fundraising has been able to respond and develop. This work has led to informing press and media work, with coverage on national newspaper front pages, as well as contributions and interview through broadcast national and local news programmes.

We have continued to play a key partner role in key public-facing fundraising campaigns such as Giving Tuesday, the 2.6 Challenge, and the Captain Tom 100, as well as supporting specific campaigns including Payroll Giving Week, Gift Aid Awareness Week, and Small Charities Week, and key campaigns such as the Gift Aid Emergency Relief Package.

Working in close partnership with the Fundraising Regulator, and in close dialogue with Government, we have produced guidance to help charities and fundraisers return to fundraising activity in a safe and responsible way. Through consultation with Health and Safety Executive and Public Health England, the co-produced guidance has been able to provide confidence and reassurance to charities and partner agencies in their decisions as to when and how to return to fundraising as lockdown and social distancing requirements allow.

We have also continued to work on research and guidance in other areas of fundraising during the year, such as producing a new resource on ‘Environmental Change’ to help fundraisers respond to the climate emergency and working with partner organisations to bring up-to-date and relevant information on how donors and fundraising was responding and giving through collaborative work with key partners.

‘From Response to Recovery’ was a key resource produced in June 2020 to help charities and fundraisers navigate the changes and challenges that the pandemic was bringing. Produced in partnership with THINK it covered key strategic questions to provide a framework to help fundraisers work with their Boards and colleagues to set the right course.

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Events

We transitioned all our events, including Fundraising Convention, online. Our early adoption of a virtual events strategy resulted in continuous engagement with the fundraising community and enabled us to reach new audiences across the UK.

We created a webinar series which covered topical issues relevant to the climate fundraisers found themselves in, allowing them to access content as well as peer support. These webinars reached 2,700 fundraisers covering 16 topics. We held seven one-day conferences covering different fundraising specialisms, techniques and issues resulting in engagement from over 1,800 fundraisers. With emergency support from the National Lottery Community Fund, we successfully grew our reach, with 3,300 delegates in total, with 1,600 of these being from small charities.

Corporate Partnerships

We would like to thank all our corporate partners and sponsors, who, in an extremely difficult environment, continued to invest in their relationships with us, contributing to delivering enhanced content and engagement with our members and the wider fundraising community.

We would particularly like to thank Blackbaud & JustGiving, Rapidata, Salesforce, Bates Wells and PayPal GF for their continued support.

Professional development

158 fundraisers graduated with one of our qualifications, of whom 95 achieved the Certificate in Fundraising, 62 Diploma in Fundraising and one the International Advanced Diploma.

We also launched the new Foundation Certificate of Fundraising which is a level three course (equivalent to A levels or BTEC Diplomas) and were recognised as the new End Point Assessment Organisation for the new level three apprenticeship in fundraising.

We continued to deliver our highly successful RAISE programme, for arts and culture organisations funded by Arts Council England. During the year, we ran 14 events including 11 panel discussions and three networking events. Each panel discussion event attracted over 150 attendees from across the UK.

The mentoring programmes resulted in 19 pairings with three in London and 16 outsideLondon.

The RAISE programme also offered bursaries: three for the Introduction to Fundraising; six for the Certificate in Fundraising; 15 for CSN National Conference 2020 and 24 for Fundraising Convention 2020.

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

People and culture

The Board formally delegates day-to-day management to the Chief Executive, Peter Lewis (to 21 May 2021) and Dhivya O’Connor (since 10 May 2021). The Chief Executive leads a Senior Leadership Team made up of the Director of Membership, Professional & Corporate Partnerships, Director of People & Engagement, Director of Organisational Membership and Remember A Charity and Director of Finance.

As a result of the significant reduction of income we suffered as a result of the lockdown, we were forced to undertake a full restructure towards the end of 2020.This resulted in 11 redundancies (20% of our team), 14 role changes, three changes to working hours and three redeployments.

During the period, 12 staff were placed on furlough at various points in time, and we made up their salary to 100%.

We would like to thank all the staff who worked with us over the last year for their hard work and commitment.

Staff demography

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Remuneration Ratios:

Gender pay gap

Although not required to report on gender pay due to the size of the organisation (44 employees), we conducted a gender pay gap analysis. Analysis across the job levels shows the need to increase the percentage of female employees in Director roles.

Date % Meanpay gap % Medianpay gap
Feb 2021 15.3 28.4
March 2020 21.9 22.6
Dec 2019 27.5 21.8

CEO pay ratio

Although not required to report on pay ratios due to the size of the organisation, we are committed to transparency and have reported below the ratio of our highest paid staff member (the salary plus benefits of our CEO) to each of three points on the pay scale – the 25th percentile, the median and the 75th percentile.

Date 25thpercentilepayratio Medianpayratio 75thpercentilepayratio
Feb 2021 3.0:1 2.5:1 1.9:1
March 2020 3.4:1 2.7:1 1.9:1
Dec 2019 3.6:1 2.8:1 1.9:1

Ethnic pay ratio

Although not required to report on how ethnicity affects pay, we are committed to eliminating racism so have conducted ethnicity pay analysis. Figures show the gap is slowly closing.

closing.
Date Feb 2021 March 2020
% mean hourly pay gap BAME
and white employees		 3.2 9.9
% median hourly pay gap BAME
and white employees		 12.5 16.1
%employees reportingas BAME 25 30

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

We invested in the support we provided to our staff over the period as due to the pandemic all staff immediately migrated to home working.

The year ahead

The year ahead is a transitional one in many ways for the Chartered Institute. We are coming to the end of our last strategy (2017-21) and will embark on the development of a new strategy for 2022 onwards. We are transitioning out of the pandemic into a new environment. We are transitioning to a new permanent Chief Executive who will lead our future development.

At the same time, we will continue to deliver the support our members and the wider fundraising community need, we will continue to prioritise our work on equality, diversity and inclusion and we will focus on the delivery of our Action Plan to tackle harassment, discrimination and abuse in the fundraising community.

In particular, we will publish new research on the barriers faced by black and minority ethnic fundraisers and begin work on how we can attract more deaf and disabled fundraisers into the profession.

We will continue our strong partnership work with the Fundraising Regulator, guiding organisations back into fundraising as the lockdown eases.

Financial Review

On 31 March 2020, the activities and net assets of the Institute of Fundraising were transferred to the Chartered Institute of Fundraising. The total carrying value of the net assets transferred was £1.6m. The Board of the Chartered Institute of Fundraising made the decision to change its accounting reference date from 31 March to 31 December.

The financial results of the charity’s activities for the nine months to 31 December 2020 are set out in the Statement of Financial Activities and supporting notes. The income was £3.1m (year to 31 March 2020 £6m). The total expenditure was £3.5m (year to 31 March 2020 £6.2m) of which £3.3m was spent on charitable activities. We ended the year with a smaller than budgeted deficit of £473k.

Our individual and organisational membership numbers have declined due to the impact of the pandemic. We retained 4,846 individual members (year to 31 March 2020 5,800) and 518 organisational members (year to 31 March 2020 675). Number of corporate members and members of Remember A Charity remained the same as in the previous year at 124 and 200 respectively.

The charity’s unrestricted free reserves were £58k as at 31 December 2020 (£283k as at 31 March 2020). Other unrestricted reserves have been specifically designated to provide for future depreciation of fixed assets and for work of the Special Interest Groups. Further information on the Institute’s funds is contained in note 13 to the accounts.

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Going Concern and COVID Impact

As a result of the pandemic the Chartered Institute lost over 25% of its annual income and had to restructure losing a quarter of its staff. Despite this, we implemented a new CRM system, website and identity, continued our work on equality, diversity and inclusion, transferred all our activities into a virtual environment and began to create a whole new relationship with our volunteer groups. We also started work to embed excellent member and customer services across the organisation.

In 2021 our financial objective is to start rebuilding our free reserves to meet the requirements of our Reserves Policy. This will be achieved by rebuilding the Chartered Institute taking into account the new environment, the lessons we have learnt through Covid, our commitment to EDI, and embedding new ways of working and new ways of supporting members and the wider fundraising community.

Having assessed the charity’s financial position, its plans for the foreseeable future, the risks to which it is exposed and the detailed cash projections, the Trustees are satisfied that it remains appropriate to prepare the statements on a going concern basis.

Reserves Policy

The nature of the Chartered Institute’s activities has meant that the majority of income is received in advance, notably from membership and events. This not only provides the Chartered Institute with high levels of working capital but also allows the charity to adapt future plans based on income secured to manage risks. At the end of December 2020, income received in advance (reported in the creditor balance) totalled £793k (2020: over £1.1m).

As a result of the analysis of income received in advance, the dynamics of the current business model and acknowledging the challenging external environment, the Board of Trustees has adopted a risk-based reserves policy. This policy takes high and medium risks established as part of the annual planning process and feeds them into the budget for the year to provide a composite picture of the overall impact of retained risk on free reserves. This approach is designed to enable the retention of sufficient free reserves to fund unexpected expenditure when unplanned events occur that cannot be managed through revisions to in-year plans.

Following a review of the risks to which the successor charity, the Chartered Institute of Fundraising may be exposed to in its plans for 2021, the Board of Trustees considered that the Institute should hold free reserves in the range of £300k to £400k. This would allow the new Chartered Institute to operate as effectively as possible and to implement its strategy. After excluding restricted and designated funds, the free reserves of the charity amounted to £58k at the end of December 2020 (31 March 2020: £283k). The low level of free reserves reflects the investment in a new CRM system and a new website which was launch in October 2020. The costs of the investment are included in the designated funds. The Trustees plan to rebuild the free reserves to the required level over the next two years through setting a post COVID strategy for income generation and careful monitoring of expenditure.

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Investment Powers and Policy

Under the Memorandum and Articles of Association, the charity has the power to make any investment that the Trustees see fit. The Trustees delegate the management of investments to the Finance and Resources Committee. Excess cash funds are held on shortterm deposits.

Risk Assessment

The Trustees have a process of continuous risk assessment that examines key areas of risk at quarterly Trustee meetings. The Chief Executive is tasked with reporting to the Trustees about the implementation of agreed systems to manage identified areas of risk. The Trustees are satisfied that the major risks to which the Institute is exposed have been reviewed and systems have been established to manage and mitigate the impact of those risks.

The Trustees have identified the following key areas of external and business critical risk to be considered by the Trustees of the Chartered Institute of Fundraising moving into 2021:

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Structure, Governance & Management

The Chartered Institute of Fundraising is governed by Royal Charter. It is registered as a charity with the Charity Commission and the Office of the Scottish Charity Regulator.

Appointment of Trustees

Eight Trustees are elected by the membership and are announced at the Annual General Meeting, which takes place in July each year. Up to four further Trustees may be co-opted at any time.

Elected Trustees serve a term of three years and may be appointed to serve for one further term. The four co-opted Trustees shall retire after one year, unless reappointed. Each coopted trustee shall be eligible for reappointment up to a maximum term of six years in total.

The Chair and Officers are appointed by the Trustees from among their number.

A full list of the trustees who served during the period can be found in the reference and administrative details.

Trustee induction and training

All new Trustees are issued with a full set of documents covering governance, the committee and decision-making process, the business plan and recent financial performance of the charity and are given a full induction by the Chair and staff team. The Trustee away day focuses on the strategic direction of the Institute and involves the organisation’s Senior Leadership Team.

Organisation

The Board convenes every quarter for a meeting that examines performance, finance, strategy and risk.

The Board of Trustees continues to move towards the standards set out in the Charity Governance Code and have been taking action to address specific identified weaknesses since then.

The Board have also noted NCVO’s Charity Ethical Principles.

Clearly laid out responsibilities are defined for the Trustee body. Delegated powers are given to the Finance and Resources Committee to provide oversight of finance, HR, IT, investment and property matters, and to the Nominations and Elections Committee to oversee the trustee election and nomination processes.

The Finance & Resources Committee is chaired by the Honorary Treasurer, and the committee is composed of a mix of Trustees and non-trustees appointed for their technical skills and experience.

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

The Board has set up a series of advisory and functional committees to support the staff in the day-to-day running of the Institute. These are:

The Board formally delegates day-to-day management to the Chief Executive, Peter Lewis (to 21 May 2021), Dhivya O’Connor (from 10 May 2021). The Chief Executive leads a Senior Leadership Team made up of the Director of People & Resources, Director of Partnerships & Innovation, Director of Membership, Compliance and Professional Development, Director of Engagement & External Affairs, and Director of Development & Remember A Charity.

Staff remuneration

Trustees set the salary of the Chief Executive, using benchmarking and other data to inform their decision. The Chief Executive, in consultation with the Board and Finance and Resources Committee, sets the salaries of all other staff, using benchmarking and other data to review pay levels.

Volunteers

The CIOF relies on the voluntary input of members and supporters for a large amount of its activities. Time given as group committee members and organisers, speakers, trainers, advisors, Committee members and in other ways supporting Coif’s work enables us to provide a wide range of services to members and the sector that we would otherwise be unable to provide. We currently have around 500 regular volunteers.

This volunteer time is not recognised as either income or expenditure in the Statement of Financial Activities but is of huge importance to our members and the wider fundraising community and is greatly valued by the organisation.

Public benefit statement

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit.

The Chartered Institute of Fundraising’s charitable purpose is enshrined in its objects, as follows:

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

The Trustees ensure that these purposes are carried out for the public benefit by delivering services to enable those with fundraising responsibility in the charity sector to develop and adopt best practice, thereby promoting a transparent and efficiently managed charity sector that engenders public confidence and trust. Further, by supporting those in the charity sector with fundraising responsibility, we are able to help all charities to maximise the use of their resources and make a greater impact for all their beneficiaries.

The services that we deliver cover our strategic objectives as set out. Many of these services are open to all, for example training courses and conferences can be accessed by nonmembers, whilst our policy and campaigning work also benefits those in the wider fundraising community. Chartered Institute of Fundraising membership is open to any organisations or people employed by a charity or business with responsibility for, or an interest in, fundraising, and who are happy to sign up to comply with the Code of Fundraising Practice and our own Code of Conduct. The Institute provides a range of bursaries and scholarships to support access to our services.

Within the structure of the Annual Report of the Trustees, we have commented on this year’s activity against our strategic objectives.

All Trustees give their time voluntarily and receive no benefit from the charity in relation to their role as Trustees. Any expenses reclaimed from the charity are set out in note 7 to the financial statements.

Trustees’ responsibilities

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity and of its financial activities for that period. In preparing those financial statements, the Trustees are required to:

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with relevant legislation. They are also responsible for safeguarding the assets of the charity, and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. The Trustees confirm that the accounting policies adopted are in accordance with the Charities Act 2011, and with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements have been prepared on the going concern basis.

…………………………………..

Chair

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Chartered Institute of Fundraising Financial Statements For the Period ended 31 December 2020

Independent Auditor’s Report

Opinion

We have audited the accounts of the Chartered Institute of Fundraising (the ‘charity’) for the period ended 31 December 2020, which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at 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 section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act and in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 5 July 2021

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Chartered Institute of Fundraising Annual Report of the Trustees For the Period Ended 31 December 2020

Financial Statements for the period ended 31 December 2020

Statement of Financial Activities

INCOME FROM:
Donations and legacies(including
gifts in kind)
Raising funds
Charitable activities
- Create a better environment for
fundraisers to raise money
- Increase understanding of
fundraising
- Enable fundraisers to be the
best they can be
Other sources
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Charitable activities
-Create a better environment for
fundraisers to raise money
-Increase understanding of
fundraising
-Enable fundraisers to be the best
they can be
TOTAL EXPENDITURE
NET EXPENDITURE
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward at 1st
April 2020
Total funds carried forward at 31st
March 2020		 Notes
2
3
2
4
13
13, 14
13, 14		 Period ended31 December 2020 Period ended31 December 2020 Period ended31 December 2020 Year to31 March 2020 Year to31 March 2020
Unrestricted
funds
£
57,817
127,986
851,117
72,911
1,023,479
134
2,133,444
181,817
854,145
284,509
1,207,913
2,528,384
(394,940)
47,663
(347,277)
1,178,948
**831,671 **		 Restricted
funds
£
-
-
784,029
17,960
185,692
-
987,681
-
909,930
18,214
137,722
1,065,866
(78,185)
(47,663)
(125,848)
423,147
297,299		 Total
funds
£
57,817
127,986
1,635,146
90,871
1,209,171
134
3,121,125
181,817
1,764,075
302,723
1,345,635
3,594,250
(473,125)
-
(473,125)
1,602,095
**1,128,970 **		 Unrestricted
funds
£
-
171,675
1,261,486
260,755
2,701,354
2,666
4,397,936
265,938
1,075,954
416,662
2,795,586
4,554,140
(156,204)
407,892
251,688
927,260
1,178,948		 Restricted
funds
Total
funds
£
£
78,000
78,000
-
171,675
1,064,539
2,326,025
268,017
528,772
214,586
2,915,940
-
2,666
1,625,142
6,023,078
-
265,938
1,109,789
2,185,743
268,251
684,913
302,619
3,098,205
1,680,659
6,234,799
(55,517)
(211,721)
(407,892)
-
(463,409)
(211,721)
886,556
1,813,816
423,147
1,602,095

The statement of financial activities includes all gains and losses recognised in the period.

As described in the notes to the accounts, the legacy charity’s net assets and activities were transferred on a going concern basis to the newly registered charity with effect from 11.59pm on 31 March 2020. Merger accounting has been applied in these financial statements in accordance with paragraphs 27.12 - 27.13 Charities SORP FRS 102 in recognition that the new legal entity is continuing with the charitable purposes and beneficiaries of the previous entity. Consequently, the comparative figures presented above and in these financial statements relate to the Institute of Fundraising for the year ended 31 March 2020.

19

Chartered Institute of Fundraising Financial Statements (continued) For the Period ended 31 December 2020

Balance sheet as at 31 December 2020

Fixed assets
Intangible fixed assets
Tangible fixed assets
Current assets
Debtors
Cash in bank and in hand
Creditors: amounts falling due
within one year
Net current assets
Total net assets
The funds of the charity
Unrestricted funds
- General
- Designated
Total unrestricted funds
Restricted income funds
Total charity funds		 Notes
9
10
11
12
13
13
31 December 2020

£

£
505,063

33,414
538,477
754,929

932,680
1,687,609
(1,097,116)

590,493
1,128,970
58,033

773,638
831,671
297,299
1,128,970
31 March 2020
31 March 2020

£
£
£
505,063

33,414		 420,080

40,422		 460,502
1,141,593
754,929

932,680		 1,033,466
1,510,326
2,543,792
(1,402,199)
1,687,609
(1,097,116)
58,033

773,638

282,691

896,257
1,602,095
1,178,948
423,147
1,602,095

The financial statements were approved by the Trustees on 24 June 2021 and signed on their behalf by:

—————————————

Claire Rowney Chair

—————————————

Rohan Hewavisenti

Hon. Treasurer

Chartered Institute of Fundraising Registered Charity Number in England and Wales 1188764

20

Chartered Institute of Fundraising Financial Statements (continued) For the Period ended 31 December 2020

Statement of Cash Flows Period to 31 December 2020

Cash flow from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 Note
A
B		 Period ended 31
December 2020

£

(436,174)

(141,472)

(141,472)
(577,646)
1,510,326
932,680		 Year to 31 March
2020

£

(29,538)

(420,104)

(420,104)
(449,642)
1,959,968
1,510,326

Notes to the cash flow statement for the period to 31[st] December 2020

A. Reconciliation of net movements in funds to net cash flow from operating activities
Period ended 31 Year to 31 March
December 2020 2020

£		 £
Net expenditure for the reporting period (as per then
statement of financial activities) (473,125) (1,813,816)
Adjustments for:
Transfer to the Chartered Institute of Fundraising (note 17) - 1,602,095
Depreciation and amortisation charge 63,497 87,167
Decrease in debtors 278,537 383,838
Decrease in creditors
(305,083)
(288,822)
Net cash used in operating activities (436,174) (29,538)
B. Analysis of cash and cash equivalents
Period ended 31 Year to 31 March
December 2020 2020

£		 £
Total cash and cash equivalents:cash at bank and in
hand 932,680 1,510,326

21

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period ended 31 December 2020

Notes to the financial statements

1. Accounting policies

a) Statutory information

The registered office address is Charter House, 13-15 Carteret Street, London, SW1H 9DJ.

b) Basis of preparation

These accounts have been prepared for the 9-month period to 31 December 2020. Merger accounting has been applied in these financial statements, as described below, in recognition that the new legal entity is continuing with the charitable purposes and beneficiaries of the previous entity. Consequently, the comparative figures presented in these financial statements relate to the legacy charity for the year ended 31 March 2020.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. The accounts are presented in sterling and are rounded to the nearest pound.

c)

Merger accounting

The assets, liabilities and activities of the charitable company, Institute of Fundraising, were transferred to the new charity on 31 March 2020. Merger accounting has been applied in these financial statements in accordance with paragraphs 27. 12 - 27. 13 Charities SORP FRS102 in recognition that the new legal entity is continuing with the charitable purposes and beneficiaries of the previous entity. Consequently, the comparative figures presented in these financial statements relate to the legacy charity for the year ended 31 March 2020.

d) Public benefit entity

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

e)

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and management to make significant judgements and estimates.

22

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period ended 31 December 2020

The items in the accounts where these judgements and estimates have been made include:

f)

Going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect of a period of 18 months from the date of approval of these accounts.

The cash balance as at 30 December 2020 amounts to £933k and a cashflow forecast shows an improvement by the end of the 2021 financial year to £1.1m. Similar level of cash at bank is expected to remain until December 2022. The first quarter 2021 management accounts show a steady income stream with expenditure lower than budget and an increase in general reserves.

The liquidity ratio at 1.5 indicates that the Institute can pay its short-term liabilities when they fall due. On this basis the Trustees consider the Institute to be a going concern.

g) Income

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Income from membership, corporate support, sponsorship, exhibitions and advertising is credited to the Statement of Financial Activities when earned. Income from training courses is credited to the Statement of Financial Activities when the course commences. All other items of income are credited to the Statement of Financial Activities in the year in which they are received.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

h) Donated goods and services

Donated goods and services are included at the value to the Institute i.e., the value the Institute would have paid in the open market. The majority of these gifts in kind are donated venues and meeting hosting, and free marketing and advertising.

i)

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally on notification of the interest paid or payable by the bank.

23

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period ended 31 December 2020

j) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the relevant fund.

Unrestricted funds are donations and other income received or generated for the charitable purposes.

Designated funds are unrestricted funds designated by the Trustees for particular purposes.

k) Expenditure and irrecoverable VAT

Expenditure, other than for training courses, is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure for training courses is recognised in full when the course commences.

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

l) Allocation of support costs

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis, which is an estimate, based on staff time, of the amount attributable to each activity.

m) Operating leases

Rental charges are charged on a straight-line basis over the term of the lease.

n) Intangible fixed assets

Comprises of computer software enhancements on the Institute’s database and website and compliance training platforms, which are capitalised where the purchase price exceeds £500. Amortisation costs are allocated to activities on the basis of the use of the related assets in those assets. Assets are reviewed for impairment if

circumstances indicate their carrying value may exceed their net realisable value and value in use. Amortisation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life, which has been calculated as 4 years.

24

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period ended 31 December 2020

o) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Office Equipment 4 years Furniture and Fittings 4 years Land and Buildings remaining life of the lease Leasehold equipment remaining life of the lease(s)

p) Debtors

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

q) Cash at bank and in hand

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

r)

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Income received in advance for goods or services that accrue in future periods are deferred and recognised as a liability.

s)

Pensions

The Institute operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Institute. The Institute makes contributions to the pension scheme in accordance with its obligations under the Pensions Reform Regulations. All amounts paid by the charity are charged to the Statement of Financial Activities as incurred.

t) Tax policy

The Institute is exempt from Corporation Tax as its income is raised charitably and spent on its charitable purposes

25

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period ended 31 December 2020

2. Income and expenditure from raising funds

Income from raising funds
Corporate support
Corporate sponsorship
Unrestricted funds
Unrestricted funds
Period ended 31
December 2020

£
112,838

15,148
127,986		 Year to 31 March
2020

£
117,182

54,493

171,675
Costs of raising funds
Staff costs
Web development
Corporate sponsorship
Support costs (note 5)
Unrestricted funds
Unrestricted funds
Period ended 31
December 2020

£
153,796
28,245
(33,862)

33,638
181,817		 Year to 31 March
2020

£
174,514
38,171
8,724

44,529

265,938

26

Charted Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period ended 31 December 2020

3. Income from charitable activities

. Income from charitable activities
Unrestricted funds
Individual membership
Organisational membership
Compliance Directorate
National convention, conferences and events
Academy
Other professional development income
Regional and special interest groups
Restricted funds
Wales office
Scotland office
Remember A Charity
CIOF Lottery
Compliance directorate
Arts Council England
Total income from charitable activities to December 2020		 Create a better
environment for
fundraisers to
raise money

£
371,518
479,599
-

-

851,117
-
13,470
620,559
150,000
-

-

784,029
**1,635,146 **		 Increase
understanding of
fundraising

£
-
-
72,911


72,911
-
17,960
-
-
-

-

17,960
**90,871 **		 Enable
Fundraisers to be
the best they can
be

£
-
-
404,131
504,309
69,747

45,292

1,023,479
44,367
58,369
-
-
-

82,956

185,692
**1,209,171 **		 Period to 31
December 2020
Total

£
371,518
479,599
72,911
404,131
504,309
69,747

45,292


1,947,507

44,367
89,799
620,559
150,000
-

82,956


987,681

2,935,188

27

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

3.Income from charitable activities (continued)

3. Income from charitable activities (continued)
Unrestricted funds
Individual membership
Organisational membership
Compliance Directorate
National convention, conferences and events
Academy
Other professional development income
Regional and special interest groups
Policy Projects
Restricted funds
Wales office
Scotland office
Remember A Charity
Compliance directorate
Arts Council England
Total income from charitable activities to March 2020		 Create a better
environment for
fundraisers to
raise money

£
541,920
719,566
-
-
-
-
-

-

1,261,486
-
16,980
1,047,559
-

-

1,064,539
2,326,025		 Increase
understanding of
fundraising

£
-
-
260,755
-
-
-
-

-

260,755
-
22,640
-
245,377

-

268,017
528,772		 Enable
Fundraisers to be
the best they can
be

£
-
-
-
1,346,829
753,355
45,886
542,719

12,565

2,701,354
33,048
73,580
-
-

107,958

214,586
2,915,940		 Year to 31 March
2020
Total

£
541,920
719,566
260,755
1,346,829
753,355
45,886
542,719

12,565


4,223,595

33,048
113,200
1,047,559
245,377

107,958


1,547,142

5,770,737

28

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

4. Expenditure on charitable activities

. Expenditure on charitable activities
Unrestricted funds
Membership services
National convention
Academy
Policy projects
Other professional development costs
Regional and special interest groups
Compliance Directorate
Support costs (note 5)
Restricted funds
Wales office
Scotland office
Remember A Charity
CIOF Lottery
Arts Council England
Support costs (note 5)
Total expenditure on charitable activities to December 2020		 Create a better
environment for
fundraisers to
raise money

£
636,923
-
-
112,104
-
-
-

105,118

854,145
-
11,894
663,767
150,000
-

84,269

909,930
1,764,075		 Increase
understanding of
fundraising

£
-
-
-
89,683
-
-
123,346

71,480

284,509
-
15,855
-
-
-

2,359

18,214
302,723		 Enable
Fundraisers to be
the best they can
be

£
-
476,950
432,075
22,421
24,637
41,594
-

210,236

1,207,913
24,410
51,528
-
-
27,328

34,456

137,722
1,345,635		 Period to 31 Dec
2020 Total

£
636,923
476,950
432,075
224,208
24,637
41,594
123,346

386,834


2,346,567

24,410
79,277
663,767
150,000
27,328

121,084


1,065,866

3,412,433

29

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

4.Expenditure on charitable activities (continued)

Unrestricted funds
Membership services
National convention
Academy
Policy projects
Other professional development costs
Regional and special interest groups
Compliance Directorate
Support costs (note 5)
Restricted funds
Wales office
Scotland office
Remember A Charity
Compliance Directorate
Arts Council England
Support costs (note 5)
Total expenditure on charitable activities to March 2020		 Create a better
environment for
fundraisers to
raise money

£
749,870
-
-
154,571
-
-
-

171,513

1,075,954
-
17,432
979,998
-
-

112,359

1,109,789
2,185,743		 Increase
understanding of
fundraising

£
-
-
-
123,657
-
-
198,837

94,168

416,662
-
23,242
-
184,363
-

60,646

268,251
684,913		 Enable
Fundraisers to be
the best they can
be

£
-
1,275,916
608,447
30,914
41,339
482,083
-

356,887

2,795,586
116,673
75,538
-
-
64,466

45,942

302,619
3,098,205		 Year to 31 March
2020 Total

£
749,870
1,275,916
608,447
309,142
41,339
482,083
198,837

622,568


4,288,202

116,673
116,212
979,998
184,363
64,466

218,947


1,680,659

5,968,861

30

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

5. Allocation of support and governance costs

Basis of
Allocation
Support Cost
Depreciation & amortisation
Staff Time
Operating lease rentals
Staff Time
Governance costs (note 6)
Staff Time
Miscellaneous
Staff Time
Irrecoverable VAT (note 8)
Staff Time
Total unrestricted Dec 2020		 Unrestricted funds Cost of raising
funds

£
3,944
5,829
2,549
21,247

159
33,728		 Period end to 31
Dec 2020 Total

£
Create a better
environment for
fundraisers to
raise money

£
12,325
18,215
7,685
66,396

497
105,118		 Increase
understanding of
fundraising

£
8,381
12,386
5,225
45,150

338
71,480		 Enable
Fundraisers to be
the best they can
be

£
24,650
36,429
15,369
132,793

995
**210,236 **
49,300
72,859
30,828
265,586

1,989

420,562
Basis of
Allocation
Support Cost
Depreciation & amortisation
Staff Time
Operating lease rentals
Staff Time
Governance costs (note 6)
Miscellaneous
Staff Time
Irrecoverable VAT (note 8)
Staff Time
Total restricted 2020
Total allocated Dec 2020		 Restricted funds
Enable
Fundraisers to be
the best they can
be

£
4,040
5,790
2,700
21,763

163
34,456
**244,692 **		 Cost of raising
funds

£
-
-
-
-

-
-
33,728		 Period end to 31
Dec 2020 Total

£
Create a better
environment for
fundraisers to
raise money

£
9,881
14,602
6,160
53,228

398
84,269
189,387		 Increase
understanding of
fundraising

£
277
590
-
1,490

2
2,359
73,839
14,198
20,982
8,860
76,481

563

121,084
**541,646 **

31

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

5.Allocation of support and governance costs (continued)

. Allocation of support and governance cos ts (continued)
Basis of
Allocation
Support Cost
Depreciation & amortisation
Staff Time
Operating lease rentals
Staff Time
Governance costs (note 6)
Staff Time
Miscellaneous
Staff Time
Irrecoverable VAT (note 8)
Staff Time
Total unrestricted March 2020		 Unrestricted funds Cost of raising
funds

£
4,381
8,363
4,178
27,439

168
44,529		 Year to 31 March
2020 Total

£
Create a better
environment for
fundraisers to
raise money

£
16,873
32,212
16,094
105,687

647
171,513		 Increase
understanding of
fundraising

£
9,264
17,686
8,836
58,027

355
94,168		 Enable
Fundraisers to be
the best they can
be

£
35,110
67,027
33,488
219,915

1,347
356,887
65,628
125,288
62,596
411,068

2,517

667,097
Basis of
Allocation
Support Cost
Depreciation & amortisation
Staff Time
Operating lease rentals
Staff Time
Governance costs (note 6)
Miscellaneous
Staff Time
Irrecoverable VAT (note 8)
Staff Time
Total restricted 2020
Total allocated March 2020		 Restricted funds
Enable
Fundraisers to be
the best they can
be

£
4,520
8,628
4,311
28,309

174
45,942
402,829		 Cost of raising
funds

£
-
-
-
-

-
44,529		 Year to 31 March
2020 Total

£
Create a better
environment for
fundraisers to
raise money

£
11,054
21,102
10,543
69,236

424
112,359
283,872		 Increase
understanding of
fundraising

£
5,966
11,390
5,690
37,371

229
60,646
154,814
21,540
41,120
20,544
134,916

827

218,947
886,044

32

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

6. Governance Costs

Governance Costs
Auditor’s fees
- statutory audit
- under provision from previous year
- other services
Trustees’ meeting costs
Office and other costs		 Period to 31 Dec
2020

£
15,500
372
2,625
241

20,852
**39,590 **		 Year to 31 March
2020

£
16,727
(480)
3,754
2,874

60,265

**83,140 **

7. Staff costs

Wages and salaries
Social security costs
Pension contributions
Redundancy/termination payments		 Period to 31 Dec
2020

£
1,527,969
162,679
99,856

175,924
1,966,428		 Year to 31 March
2020

£
2,134,221
213,639
136,936

-
2,484,796

During the year, employees earning in excess of £60,000 per annum fell into the following:

£90,000 - £99,999
£70,000 - £79,999
£60,000 - £69,999		 Period to 31 Dec
2020

Number
1
5
2		 Year to 31 March
2020

Number
1
4
3

The key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day-to-day basis comprise the Chief Executive and an Executive Management Board, currently made up of the Director of People & Resources, Director of Partnerships & Innovation, Director of Membership, Compliance and Professional Development, Director of Engagement & Public Affairs, and Director of Development & Remember A Charity. Salary, employer's NI and employer's pension contributions of the key management personnel for the period totalled £416,082 (for the year ended 31 March 2020 - £536,486). Trustees' remuneration for the period was £nil (for the year ended 31 March 2020 - £nil).

33

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

7.Staff costs (continued)

A total of £241 (for the year ended 31 March 2020 - £2,360) was reimbursed to 1 (for the year ended 31 March 2020 - 4) trustees in relation to out-of-pocket travel and subsistence costs incurred in connection with their duties as trustees of the charity.

The average number of employees analysed by function was:

Costs of raising funds
Create a better environment for fundraisers to raise money
Increase understanding of fundraising
Enable fundraisers to be the best they can		 Period to 31 Dec
2020

Number
5
13
13

21
**52 **		 Year to 31 March
2020

Number
5
15
14

22
56

8. Value Added Tax

The charity is partially exempt for VAT and cannot recover all the VAT it pays. Irrecoverable VAT in the year amounted to £89,835 (for the year ended 31 March 2020 - £228,108) and is included within its associated expenditure category. Irrecoverable VAT which cannot be allocated is included within support costs (note 5) which is £2,563 (for the year ended 31 March 2020 - £3,345).

34

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

9. Intangible fixed assets

Intangible fixed assets
All used for direct charitable purposes
Cost
At 1 April 2020
Additions
Disposals
At 31 December 2020
Amortisation
At 1 April 2020
Charge for year
Released on disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 March 2020		 Computer
software and
website

£
878,373
135,261

(200,155)

813,479
458,293
50,278

(200,155)

308,416

505,063
420,080		 Total

£
878,373
135,261

(200,155)


813,479

458,293
50,278

(200,155)


308,416

505,063
420,080

Included within intangible fixed assets are assets which relate to restricted funds. The net book value of assets held as restricted funds at 31 December 2020 was £42,613 (for the year ended 31 March 2020 - £14,121).

10. Tangible fixed assets

0. Tangible fixed assets
Cost
At 1 April 2020
Additions
Disposals
At 31 December 2020
Depreciation
At 1st April 2020
Charge for year
On disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 March 2020		 Office
equipment

£
111,467
6,211

(53,310)

64,368
72,445
13,147

(53,310)

32,282

32,086
39,022		 Furniture and
fittings

£
257,375
-

(73,720)

183,655
255,975
72

(73,720)

182,327

1,328
1,400		 Total

£
368,842
6,211

(127,030)


248,023

328,420
13,219

(127,030)


214,609

33,414
40,422

Included within tangible fixed assets are assets which relate to restricted funds. The net book value of assets held as restricted funds at period end 31 December 2020 was £nil (for the year end 31 March 2020 - £nil).

35

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

11. Debtors

Trade Debtors - Unrestricted
Trade Debtors - Restricted
Accrued Income
Other Debtors
Prepayments		 Period ended 31
Dec 2020

£
277,999
187,437
79,562
118,834

91,097
754,929		 Year ended 31
March 2020

£
420,209
216,559
71,646
74,330

250,722

1,033,466

Included within other debtors for period end 31 December 2020 is a balance of £nil which falls due after more than one year (for the year end 31 March 2020 – £48,996).

12. Creditors - Amounts falling due within one year

Trade creditors
VAT
Taxation and Social Security costs
Other Creditors
Accruals & Deferred income - Unrestricted
Accruals & Deferred income - Restricted		 Period ended 31
Dec 2020

£
74,270
10,792
81,159
111,180
502,620

317,095
1,097,116		 Year ended 31
March 2020

£
112,741
23,029
61,257
136,083
680,731

388,358

1,402,199
Deferred income brought forward
Income released during the period
Income deferred during the period
Deferred income carried forward		 Period ended 31
Dec 2020

£
1,070,089
(2,085,077)

1,807,715
792,727		 Year ended 31
March 2020

£
1,328,869
(3,428,036)

3,169,256

1,070,089

Deferred income as at 31 December 2020 relates to membership income received in the period for the year ending 31 December 2021.

36

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

13. Movement in funds

3. Movement in funds
Unrestricted funds
General funds
Designated funds
- Regional and special interest groups
- Fixed assets (intangible and tangible)
Total designated funds
Total unrestricted funds
Restricted funds
Wales office
Remember A Charity
CIOF Lottery Funding
Scotland office
Arts Council England
Total restricted funds
Total funds 2020		 At 1 April
2020 (note
17)
£		 Income

£		 Expenditure

£
(2,435,255)
(41,594)
(51,536)
(93,130)
(2,528,385)
(31,800)
(746,268)
(150,000)
(91,068)
(46,729)
(1,065,865)
(3,594,250)		 Transfers
gains and
(losses)

£

122,444
(175,800)
101,019
(74,781)
47,663
-
(67,663)
-
20,000
-
(47,663)
-		 At 31
December
2020

£
282,691 2,088,153
58,033

449,876
446,381
45,292
-
277,774
495,864
896,257 **45,292 ** 773,638
1,178,948 2,133,445 831,671
-
358,102
-
-
65,045		 44,367
620,559
150,000
89,798
**82,956 **		 12,567
164,730
-
18,730
101,272
423,147 987,680 297,299
1,602,095 3,121,125 1,128,970

37

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

13 Movement in funds (continued) Designated Funds

Regional & Special Interest Groups

The funds relate to income and expenditure arising from our network of National, Regional & Special Interest Groups. These funds have been ring-fenced for application by the Regional & Special Interest groups as needed.

Fixed assets (tangible and intangible)

This fund reflects the carrying value of the charity’s tangible and intangible fixed assets represented by unrestricted funds. The balance has been set aside on the understanding that these assets are fundamental to the day-to-day operations of the charity and therefore cannot be realised in order to meet working capital requirements.

Restricted Funds

Remember A Charity

Remember A Charity is the Institute’s long-term project to increase legacy giving to charity.

Scotland Office

The Institute receives grants from the Scottish Government for the purpose of funding our activities in Scotland. This is also complemented through other earned income generation activities and subsidised through a contribution from IoF central unrestricted funds to cover the costs of activities in Scotland.

Arts Council England

In April 2018, the Institute was appointed as a National Portfolio Organisation by Arts Council England and commenced delivery of the RAISE programme to support fundraisers and fundraising organisations in the cultural sector. Working with the Institute’s Cultural Sector Network, in partnership with Young Arts Fundraisers and other stakeholders, the four-year programme aims to support excellent fundraising practices and shared learning throughout Arts, Culture and Heritage organisations across England.

CRM Funding

The fund represents grants and donations received specifically to help fund the development and implementation of a new Customer Relationship Management (CRM) system for the charity. The transfer from the restricted fund to unrestricted funds has been made to reflect the fact that the funds have been used to procure the CRM system in accordance with the terms on which the funding was received, but the CRM will be freely available to meet the needs of the charity going forward.

38

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

14 Analysis of net assets between funds

Immediately prior to the transfer to the Chartered Institute of Fundraising at 11:59pm on 31 March 2020, the fund balances were represented by the following assets and liabilities:

At period end 31 December 2020
Fixed assets
Debtors
Cash in bank and at hand
Creditors: amounts falling due
within one year
Total 2020
At 31st March 2020
Fixed assets
Debtors
Cash in bank and at hand
Creditors: amounts falling due
within one year
Total 2019		 General
funds

£		 Designated
funds

£
495,864
277,774

-
**773,638 **		 Restricted
funds

£		 Total
funds

£
538,477
754,929
932,680
(1,097,116)
**1,128,970 **		 Total
funds
£
-
567,492
270,562
(780,021)		 42,613
187,437
384,344
(317,095)		 538,477
754,929
932,680
(1,097,116)

58,033
297,299
General
funds

£		 Designated
funds

£
446,381
-
449,876

-
896,257		 Restricted
funds

£		 Total
funds

£
460,502
1,033,466
1,510,326
(1,402,199)
1,602,095
-
816,907
479,625
(1,013,841)		 14,121
216,559
580,825

(388,358)

282,691
423,147

15. Operating lease commitments

Within one year
Between two and five years
Property
Period end
31
December
2020
Year end to
31 March
2020

£

£
102,033
85,027

8,503

63,771
110,536
148,798
Equipment
Period end
31
December
2020
Year end to
31 March
2020

£

£
33,700
33,700

21,862

42,858
55,562
76,558
Equipment
Period end
31
December
2020
Year end to
31 March
2020

£

£
33,700
33,700

21,862

42,858
55,562
76,558

Period end
31
December
2020

£
Year end to
31 March
2020

£
33,700

42,858
76,558
102,033

8,503

110,536

39

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

16. Related Party Transactions

Other than the transactions disclosed within notes 7 and 17 to the financial statements, there are no further related party transactions to report (for the year end to 31 March 2020: none). Certain trustees may hold trusteeships or other senior posts within other organisations which are members of The Chartered Institute of Fundraising or may be direct members of the Institute – all such memberships subscriptions are offered at the Institute’s standard subscription rates.

17. Transfer of activities, assets and liabilities

With effect from 11.59pm on 31 March 2020, in accordance with a deed of transfer, the activities, assets and liabilities of the Institute of Fundraising were transferred to the Chartered Institute of Fundraising, a charitable company incorporated by Royal Charter (Charity Registrations Number: 1188764; Company Registration Number: RC000910).

The net assets at that date comprised:

Intangible assets
. Cost
. Amortisation
Tangible fixed assets
. Cost
. Depreciation
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
£
878,373

(458,293)
368,842

(328,420)		 £
420,080
40,422
1,033,466
1,510,326
(1,402,199)
1,602,095

The assets and liabilities were represented by the following funds:

Unrestricted Funds
. General Funds
. Designated Funds
Restricted Funds
£
282,691
896,257

423,147


1,602,095

40

Chartered Institute of Fundraising Notes to the Financial Statements (continued) For the Period Ended 31 December 2020

Reference and administrative details

Charity name Chartered Institute of Fundraising Charity numbers England and Wales 1188764, Scotland SC050060 Registered office Charter House, 13-15 Carteret Street, London, SW1H 9DJ Auditors Buzzacott LLP 130 Wood Street, London EC2V 6DL Bankers National Westminster Bank PLC 358 South Lambeth Road, London, SW8 1UR Solicitors Bates, Wells & Braithwaite London LLP 10 Queen Street Place, London, EC4R 1BE Senior Staff Peter Lewis, Chief Executive (to 21 May 2021), Dhivya O’Connor, interim Chief Executive (from 10 May 2021).

Trustees

The following have served as Trustees in the year and to the date of this report:

Claire Rowney (From 12 February 2020) Carol Akiwumi (From 12 February 2020) Sarah Bissell (From 12 February 2020) Joyce Fraser (From 12 February 2020) Rohan Hewavisenti (From 12 February 2020) Isobel Michael (From 12 February 2020) Emma-Louise Singh (From 12 February 2020) Liz Tait (From 12 February 2020) Sofia Zeenat Sheikh (From 12 February 2020) Kelvin Hopkins (From 26 March 2020) Nadine Campbell (From 6 July 2020)

Details of each current trustee are available in the “what we stand for” section of the website https://ciof.org.uk/about-us/what-we-stand-for/governance/trustees

41